Wednesday, October 8, 2008

Advertising and Sales Promotion Management

Advertising & Sales Promotion Management

(Question & Answer points)

Module 1.

Write Short Notes on:-

1. Integrated Marketing Communication:-

Promotional function in most of the Companies was dominated by mass-media advertising. Companies relied on advertising agencies for guidance in all areas of marketing communication. During the 1980’s companies came to see the need for more of a strategic integration of their promotional tools and started moving towards integrated marketing communications (IMC), which involves coordinating the various promotional elements and other marketing activities that communicate with a firm’s customers. Terms such as new advertising, orchestration, and seamless communication were used to describe the concept of integration. IMC calls for a “big picture approach” to planning marketing and promotion programmes and coordinating the various communication functions. Customers’ perceptions of a company and its brands are a synthesis of the bundle of messages they receive such as, media ads, price, package design, direct-marketing efforts, publicity, sales promotions, website, POPs, and even the type of store where it is placed and sold. The IMC approach seeks to have a company’s entire marketing and promotional activities project a consistent, unified image to the marketplace. It calls for a centralized messaging function to give a consistent message about its products and brands to the customers in the market place. Message can originate at three levels- Corporate, marketing and marketing communications- since all of a company’s activities, marketing mix and marketing communications efforts have communication dimensions and play a role in attracting and keeping customers. The IMC approach helps companies identify most appropriate and effective methods for communicating and building relationships with customers as well as stake holders and the general public.

The components of Integrated Marketing Communication are:-

v ADVERTISING

v SALES PROMOTION

v PUBLICITY & PUBLIC RELATIONS

v PERSONAL SELLING

v DIRECT MARKETING

v INTERACTIVE & INTERNET MARKETING

Discuss the elements of effective advertising:-

Effective ads work on two levels. They engage the mind of the consumer and at the same time deliver the selling message. Such ads have three characteristics:- First, they are directed at a specific audience and, driven by specific objectives. The messages are crafted to speak to that audience’s most important concerns and are placed in media that will most effectively reach that audience. Second, these ads have a creative concept that gets the audience’s attention and is remembered. Third, they use the right execution for the message and audience.

2. Distinguish between Advertisement & Sales Promotion:-

  1. Advertising offers a reason to buy while Sales promotion offers an incentive of the customer to buy immediately.

  1. Advertising is long term while sales promotional activities are short term.

  1. Advertising media includes press, outdoor, audio-visual, internet, etc while sales promotion media includes consumer contests, prizes, premiums, discounts, price off, free samples, dealer schemes, promotional fairs, exhibitions etc.

  1. Advertising media, except mail advertising are generally owned and controlled by outside agencies whereas sales promotion activities are totally controlled by the company.

  1. Advertising is non-personal where as sales promotion includes personal communication with the buyer.

  1. Scope of advertising is much wider as compared to sales promotion.

  1. Advertising is of routine nature, where as sales promotion is mainly undertaken for specific purposes such as clearance of stocks, festival offers, launch of new products etc.

  1. Advertising has a major role in attracting the prospects while sales promotional activities promote the actual sale.

  1. Difference between Advertising & Personal Selling:-

Advertising is a paid form of non personal communication by an identified sponsor while Personal selling is a face to face communication.

Advertising is addressed to masses while personal selling is addressed to specific audience.

Objective of Advertising is to inform, persuade, or remind while that of personal selling is to contact appeal to the prospects, for closing a sale.

Advertising is more intensive in the pre and post-transactional phases whereas Personal selling is more intensive in the transactional phase.

Advertising may not remove doubts of prospects while personal selling can help the customer to clarify his doubts with the sales person.

Advertising does not require maintenance of sales force while Personal selling requires efficient sales force for which the organizations have to incur heavy cost.

4. Distinguish between Advertising & Propaganda:-

Propaganda means spreading of ideas, doctrines or messages. Like Advertising, propaganda is also communication of ideas or message but it is only one-sided communication and that too for some specific cause. The main purpose of propaganda is to influence the opinion of general public in favor of some definite cause.

The main objective of advertising is either sales or communication to the target market while that of propaganda is to disseminate a particular idea doctrine or message among its followers.

Scope of advertising is wider than propaganda.

Advertising expenses are incurred in a planned way where as in propaganda there is no fixed limit.

5. Difference between Advertising & Public Relations

(Advertising already discussed) Public relations help to augment the corporate visibility or image in the public mind. Public includes customers, stake holders, share holders, Govt, and society at large. Public relations cannot supplant advertising but it can only supplement the other promotional activities. Public relations may be of less cost compared to advertising campaigns. However both have separate roles in organizations.

6... Consumer behaviour variables

The decisions taken by consumers in connection with purchases are influenced by various variables. They are aimed at solving consumer’s problems. According to Philip kotler, the major variables are:-

Culture, Subculture, Social class and Personal factors.

Discuss the different types of advertising.

  1. Primary demand stimulation
  2. Selective demand stimulation
  3. Direct response advertising
  4. Delayed response advertising
  5. Corporate advertising
  6. Brand advertising (National consumers)
  7. Retail or local advertising
  8. Business to business advertising
  9. Public service advertising
  10. Non-profit Advertising

7. Marketing Mix: _

Marketing Mix was coined by a noted marketing expert James Culliton which are classified as the four ‘P’s of Marketing

Product, Place. Price & Promotion. Assembling and managing the marketing mix is the crux of the marketing task. Marketing manager achieves the marketing objectives through the marketing mix as it can be combined in an infinite number of ways.

9. Describe the steps in Advertising Planning Process (Promotional Planning

Identify the Promotional objectives & opportunities

Select the Audience

Select the appropriate message

Select suitable promotional mix

Plan a promotional budget

Implement a strategy

Measure results

(each step has to be explained for examination)

10. Explain the steps involved in Marketing Communication Programme Development.

Identify target audience

Determine objectives of communication

Design the message

Select communication channels

Establish the budget

Select the marketing communications mix

Measure results

Manage the IMC process

(Each step has to be explained at length for the examination)

Module 2

Write short notes:

1. Advertising Objectives:

To Inform

Informative advertising seeks to develop initial demand

Typically used in the introductory stage of the product life cycle

To Persuade

Persuasive Advertising attempts to increase demand for an existing product

A competitive type of promotion

Typically used in the growth and early maturity stage of the product life cycle

To Remind

Reminder advertising strives to reinforce previous promotion by keeping the name of the product before the market

Typically used in the late maturity and decline stage of the product life cycle

The major objectives are Sales objectives& Communication Objectives.

Sales Objectives:-

  1. Communication about the product or service for sale
  2. Prompt direct action
  3. Encourage customers to ask for more details
  4. Arose curiosity about the product or service
  5. Reinforce Brand loyalty
  6. Attitude change towards the product or service
  7. Re-assurance of quality and availability

Communication Objectives:-

  1. Create awareness about the launching of a new product or service
  2. Getting customers to know of the features of products
  3. Information about the Sales promotions, new outlets, exchange offers etc.
  4. Price changes
  5. Comparison advertisements for making an attitude change

2. Four important methods of Advertising Budgets:-

  1. Affordable Method
  2. Percentage of Sales Method
  3. Competition parity method
  4. Objective or task method

3. Above the line & below the line advertising media:-

Above the line media means the five media which pays commission to agencies i.e.

Press, Radio, TV, Outdoor, & Cinema. The rest which usually pay no commission and includes direct mail, exhibitions, point of sale display and sales literatures are referred to as below the line. Bulk of service agency income still comes from above the line advertising media. The two terms remain as a convenient means of distinguishing the different groups of media. Some examples of below the line media are:-

Sales Broachers, Catalogues, Picture cards, Hotel stationery, Stuffers, Diaries, telephone index, Swing tags, Guarantee cards, Price lists, Context forms.

4. Point of Sale or Point of Purchase Publicity (POPs)

These are the displays made at the shops where customers often visit for their purchases which act as a very power tool for passing on information about new products or services. Some of the examples of POPs are:-

Cut out displays, Posters, Pelmets, Dummy packs, Dump Bins, Show cards, Dispenser Boxes, Clocks, Models, illuminated displays, Display stands, Shelf edging, In store advertising, Menu cards etc.

5. Specialty or Novelty Advertising:-

Articles or gifts given free to the customers such as Key chains, Diaries, Pens, Lighters, Bags, Ash trays, Paper weights etc. where the name of the advertiser will be printed or engraved.

6. Body Media Advertising:

These are normally targeted to teenagers. These include items such as T-shirts, Sweat shirts, Caps, Pullovers, Jogging Suits, Body warmers, Rain suits, Aprons, Rally Jackets, Track suits, Ski wear, Towels, Ties etc.

7. Selecting Media Vehicle:-

The major evaluation criteria for selecting a media vehicle are:-

Coverage, Consumer confidence, Reach, Timing & Cost of Media.

(Explain each of these criteria)

8. Discuss the different media of Advertising along with its relative merits and limitations.

Medium

Advantages

Limitations

Newspapers

Flexibility; timeliness; good local market coverage; broad acceptance; high believability

Short life; poor reproduction quality; small “passalong” audience

Television

Combines sight, sound, and motion; appealing to the senses; high attention; high reach

High absolute cost; high clutter; fleeting exposure; less audience selectivity

Direct mail

Audience selectivity; flexibility; no ad competition within the same medium; personalization

Relatively high cost; “junk mail” image

Radio

Mass use, high geographic

Selectivity, credibility, low cost

Low attention compared to

T.V. & Audio only.

Magazines

High geographic & Demographic

Selectivity, credibility & long life.

Long advt-purchase lead time;

Some circulation waste

Out Door

Yellow pages

Flexibility, high repeat exposure,

Low cost.

Good local coverage, low cost.

Limited audience selectivity; Creative limitations.

Long ad-purchase lead time.

News letters

High Selectivity, Full control,

Relatively low cost.

Limited target market

Telephone

Many Users, Personal touch

Relative high cost

Internet

High selectivity, Interactive

Developing media with low number of users in some Countries





9. Explain how you will develop and manage an advertisement campaign in an Organization manufacturing and selling FMCG Products.

Explain the Five Ms of Advertising (Mission, Money, Message, Media, & Measurement)

Mission:-

Objectives can be classified by aim:

Inform

Persuade

Remind

Reinforce

Money

Factors considered when budget-setting:

Stage of product life cycle

Market share and consumer base

Competition and clutter

Advertising frequency

Product substitutability

Message

Factors considered when choosing the advertising message:

Message generation

Message evaluation and selection

Message execution

Social responsibility review

Media:-

Developing media strategy involves:

Deciding on reach, frequency, and impact

Selecting media and vehicles

Determining media timing

Deciding on geographical media allocation

Measurement:

Evaluating advertising effectiveness

Communication-effect research and Sales-effect research

10. Explain the Push & Pull techniques through advertisement

Push Techniques:-

Ø Point of sale displays, racks, stands

Ø Trade deals, special displays

Ø Dealer premiums, prizes, gifts

Ø Cooperative advertising deals

Ø Advertising materials, mats, inserts

Ø Push money or "spiffs"

Ø Collaterals, catalogs, manuals

Ø Trade shows, conventions, meetings

Pull Techniques:-

Ø Sampling, free trial, Coupons

Ø Premiums or gifts

Ø Contests, sweepstakes

Ø Price-off deals

Ø Refunds/rebates

Ø Frequency/loyalty programs

Ø Point-of-purchase advertising

11. Describe the various stages in advertising Design.

HEAD LINE

STRAP LINE

(SIGNATURE, SLOGAN ASSOCIATED WITH THE BRAND)

BODY COPY

(CONTENT OF THE AD OR MESSAGE)

ILLUSTRATION

LOGO SIGNATURE

Headline

    • Words in the leading position of the ad. Attract readers’ attention/interest and encourage them to read the rest of the ad
      • Direct Headlines – straightforward and informative about the product or service
      • Indirect Headlines – provoke curiosity or interest by use of questions, provocations, challenges, how-to

Subheads

    • Smaller than the main headline, larger than the copy. Used to break up large amounts of copy and highlight key sales points

Body copy

    • The main text portion of a print ad, used to present the relevant information. Content depends on appeal and execution style

(Explain each of the above stages)

12. Explain the Creative Process and its significance in Advertising

Ø Saturation (become intimate with the problem)

Ø Deliberation ( total environmental knowledge)

Ø Incubation (the sub-conscious takes over)

Ø

Ø Illumination (An idea created)

Ø Accommodation (The idea is refined for practical use)

Young’s Creative Process

Ø Immersion

§ Getting raw material or data, immersing one's self in the problem to get background.

Ø Digestion

§ Ruminating on the data acquired, turning it this way and that in the mind.

Ø Incubation

§ Ceasing analysis and putting the problem out of conscious mind for a time.

Ø Illumination

§ Often a sudden inspiration or intuitive revelation about a potential solution.

Ø Verification

§ Studying the idea, evaluating it, and developing it for practical usefulness.

Wallas’s Creative Process

Ø Preparation

§ Gathering information

Ø Incubation

§ Setting problem aside

Ø Illumination

§ Seeing the solution

Ø Verification

§ Refining the idea

12. Explain the different determinants of media planning & selection.

Developing a Media Plan:-

Analyze the market, Establish Media objectives, Develop Media strategy, Implement Media strategy & Evaluate performance.

Determinants of Media selection:-

Target audience’s media habits

Product characteristics

Message characteristics

Cost considerations

Media strategy based on marketing strategy

Which customers to reach?

What is the message?

Is there any regional concentration & what are the media available?

13. What are the Media Scheduling Methods?

Continuity, Flighting & Pulsing are the three important methods of media scheduling.

CONTINUITY refers to continuous pattern of advertising, every day, every week, or every month. This strategy is used for advertising food products, detergents, cosmetics and other products consumed on an ongoing basis.

FLIGHTING is another method employed which is a less regular schedule with intermittent periods of advertising and non-advertising. At some time periods there are heavier promotional expenditures, and at others there may be no advertising. (E.g. Umbrella, Tax saving schemes etc)

PULSING is a combination of the first two methods. In a pulsing strategy, continuity is maintained but at certain times promotional efforts are stepped up. In the liquor industry advt may be continuous throughout the year but may increase at holiday periods.

14. What are advertising Budgets? Discuss the various methods of determining advertising budgets in an Organization.

  • Budget is an expression of expenditure plan

  • Guideline for allocating the available funds to the various functions and activities of advertising.

Factors influencing budget allocation:-

  • Advertising appropriation refers to the total sum of money allocated to advertising during a specified time
  • Advertising objectives & Plans
  • Marketing opportunities
  • Competition
  • Product Life Cycle
  • Costs of Advertising
  • Types of Product
  • Retailing

Methods of Determining Advertising Budgets

  • Affordable Method (limited resources)
  • Percentage of Sales (common approach)
  • Competitive Parity method (at par with competition)
  • Objective & Task method (most desirable method)
  • Return on investment method (increase in profits generated due to increase in sales on account of advertising is considered)
  • Judgment Method (judgment of experienced managers)
  • Unit of sales (is used for durables)
  • Increase over past year

TOP-DOWN BUDGETING

Ø The budgetary amount is established or predetermined at an executive level and then passed down the line for implementation.

Ø Top down methods include the affordable method, arbitrary allocation, percentage of sales, competitive parity and return on investment.

Bottom-Up Budgeting

4. Total Budget Is Approved by Top Management

3. Cost of Activities are Budgeted

2. Activities to Achieve Objectives are planned

1. Promotional Objectives Are Set

(Starts from the bottom to top)

15. What are advertising appeals?

Advertising Appeal

    • The approach used to attract the attention of consumers and/or
    • To influence consumer feelings toward the product, service or cause
    • Particular appeal is turned into an advertising message
    • This message is presented to the consumer

Two Broad Categories of Appeals

Informational/Rational Appeal

  • Focuses on the consumer’s practical, functional, or utilitarian need for the product or service

  • Emphasizes the features or benefits

  • Messages emphasize facts and logic

Feature appeals

  • Focus on the dominant traits of the product

Competitive appeals

  • Makes comparisons to other brands

Favorable price appeals

  • Makes price offer the dominant point

News appeals

  • News or announcement about the product

Product/service popularity appeals

  • Stresses the brand’s popularity

Rational Motives:-

Ø Comfort

Ø Convenience

Ø Economy

Ø Health

Ø Quality

Ø Dependability

Ø Durability

Ø Performance

Ø Efficiency

Emotional Appeal

  • Relate to consumers’ social and/or psychological needs for purchasing a product or service

  • Many advertisers believe consumers’ emotions work better at selling brands that do not differ markedly from competing brands

Personal State or Feelings:-

Ø Achievement / Accomplishment

Ø Actualization

Ø Affection

Ø Ambition

Ø Arousal / stimulation

Ø Comfort

Ø Excitement

Ø Fear

Ø Happiness, Joy, Love, Nostalgia, Pleasure, Pride, Safety, Security, Self-esteem

Ø Sentiment,

Ø Sorrow, Grief.

Emotional Appeals:-

Social based feelings:-

Ø Acceptance

Ø Approval

Ø Affiliation / belonging

Ø Embarrassment

Ø Involvement

Ø Recognition

Ø Rejection

Ø Respect

Ø Status

Ø Sophistication

Module 3.

1. Advertising in Electronic Media

Television, Cable TV, Close circuit TVs, Digital Radio, Satellite channels, Computer based advertisements, Web & Internets, Video.

(Explain the merits & limitations of electronic media)

2. Advertising in Transit Media

This is seen by the traveling public who has the time while waiting at terminals or stations or while traveling on public transport such as buses, trams, trains, taxies, etc.

Countries such as Singapore and Hong Kong have underground railway stations. The station walls also carry large illuminated photographic posters which are very attractive.

Railway tickets, Bus tickets, Air tickets, are also very effective media of advertising.

Merits of this medium are as follows:-

Variety of sites and sizes, Selectivity, Low cost, Repeated long exposures during travel.

The weakness is that this cannot reach all as is limited to floating or regular travelers.

3. Out door advertising:-

The main use of out door advertising is for reminder advertisements, which remain in position for weeks, months or years. The long life in the prominent positions gives repetitive value. The main advertisers are FMCG companies, Banks, Consumer durables and recently educational institutions. The outdoor advertising includes Hoardings, Bill boards, Posters, Wall paintings, Banners, Balloons etc.

(Explain the merits & limitations of outdoor advertising)

4. Advertising Agencies

Why Organizations use outside advertising agencies and explain their functions?

Ø Obtain services of highly skilled specialists

§ Artists

§ Writers

§ Media analysts

§ Researchers

§ Others with specific skills

Ø Obtain an objective point of view

§ Free of internal policy constraints and biases

§ Broad range of experience, having worked with:

§ Diverse marketing problems

§ Various types of clients

Full Range of Marketing, Communication and Promotion services

Planning, creating, producing advertising

Performing research

Selecting and purchasing media

AGENCY SERVICES

Non-Advertising Services

Strategic market planning

Sales promotion

Internet and interactive

Public relations and publicity

Production of trade show materials

Package design

Account services

The link between agency and client

Managed by the account executive

Marketing services

Research department designs and executes research programs

Media department analyzes, selects and contracts media time and space

Creative services

Creation and execution of ads

Copywriters, artists, other specialists

5. Discuss the Organization of an Advertising Agency.

(Refer to any text book for the Organizational chart of Ad Agency)

6. Explain the important methods of measuring the effectiveness of Promotional programmes.

Ø What to test

§ Source factors

§ Message variables

§ Media strategies

§ Budget decisions

Ø When to test

§ Pre-testing

§ Post-testing

Ø Where to test

§ Laboratory tests

§ Field tests

Ø How to test

§ Testing guidelines

§ Appropriate tests

TESTING METHODS:-

Ø Pretesting

Laboratory Methods

§ Consumer juries

§ Portfolio tests

§ Physiological measures

§ Theater tests

§ Rough tests

§ Concept tests

§ Readability tests

§ Comprehension tests

§ Reaction tests

Ø Pretesting

Field Methods

§ Dummy ad vehicles

§ On-air tests (TV in test markets)

Ø Posttests

Field Methods

§ Recall tests

§ Association measures

§ Inquiry tests

§ Recognition tests

§ Tracking studies

7. Industrial & Services Advertising:-

The suppliers of services, equipment, raw materials, components, office machines and supplies will usually advertise in media such as trade and technical journals, technical literature and catalogues, trade exhibitions, direct mail, technical demonstrations and seminars. The amount of money spent on advertising will be comparatively less, and more reliance will be on public relation tools such as external house journals, technical events, video documentaries etc.

The advertisements should motivate the distributors or agents and should stimulate primary demand as the buying is totally rational. It should be able to support all the claims by proof.

Module 4.

1. Explain the different steps in developing a Sales promotional Campaign.

Establish objectives

Select consumer-promotion tools

Select trade-promotion tools

Select business- and sales force promotion tools

Develop the program

Pretest the program

Implement and evaluate the program

(Size of the incentives for sales promotion depends on the budget allocation)

Each step has to be explained at length for examination)

2... Discuss the various Sales promotional vehicles used by Organizations.

Consumer oriented:-

Samples, Coupons, Self liquidating premium offers, Free gifts, Gifts, Cash discounts, Refunds, Flash packs, Bonus packs, Price packs, Patronage awards, Cross promotions, Contests, Sweepstakes, Tie-in promotions, Warranty & guarantee, etc.

Trade Oriented:-

Dealer contests, special festival incentives & price-offs, Trade allowances, Schemes & free goods, Point of purchase displays, Visits abroad with family, Trade shows,

Co-operative advertising etc.

Sales force Oriented:-

Cash incentives, Trips abroad with family, Promotional opportunities, Sales contests, Special sanctions, Awards, Valuable gifts, Club memberships etc.

3. Briefly explain the main uses of Sales promotional programmes

Ø Introduce new products by encouraging trial and repurchase

Ø Get existing customers to buy more

Ø Attract new customers

Ø Defend current customers

Ø Maintain sales in off season

Ø Target a specific market segment

Ø Enhance IMC efforts & build brand equity

Module 5.

1. Publicity:-

Publicity involves the generation of news about a company, product, service, brand or person in various media. It is a subset of the public relations effort.

Key points regarding publicity:

Ø Publicity is generally short-term focused

Ø Publicity is not always under the control of the firm

Ø Publicity can be negative as well as positive

Power of Publicity:-

Ø Perceived as more credible

Ø Often perceived as endorsed by the medium in which it appears

Ø Often has high news value

Ø Often generates high frequency of exposure

2. Publicity Vehicles:-

Feature articles in Magazines, News releases, Special events, Press Conferences, Captioned Photographs etc.

Advertiser has no control over the nature of publicity for or against a product or service as the editor can have control on this aspect.

3. Advertising Vs Publicity:-

Factor Advertising Publicity

Control Great Little

Credibility Lower Higher

Reach Achievable Undetermined

Frequency Schedulable Undetermined

Cost Specific Unspecified

Flexibility High Low

Timing Specifiable Tentative

4. Public Relations:-

Role of Public Relations is to manage relations with the public which includes general public, customers, share holders, stake holders, employees & suppliers.

This involves a variety of programs formulated to augment the corporate or brand image in the eyes of public.

Public Relations management process:-

Ø Determination and evaluation of public attitudes

Ø Identification of policies and procedures of an organization

Ø Development and execution of the program

5. Marketing Public Relations (MPR) functions:-

  • Building marketplace excitement before media advertising breaks
  • Creating advertising news where there is no product news
  • Introducing a product with little or no advertising
  • Providing a value-added customer service
  • Building brand-to-customer bonds
  • Influencing the influentials/opinion leaders
  • Defending products at risk and giving customers a reason to buy

6. Public Relation Tools

Ø Press releases

Ø Press conferences

Ø Exclusives

Ø Sponsorships (Festival events, sports)

Ø Interviews

Ø Community involvement

Ø The internet

7. Functions of Public Relations:-

1. Crisis Management (e.g. strikes, fire, product failures, pollution problem, boycott by dealers, enhancement in raw material prices, fall in stock prices etc.)

2. Improving the Corporate and Brand visibility in the public eye

3. Positive presentation of Organizational information to the public

4. Improving understanding through internal and external communications

5. Lobbying or dealing with government officials to promote or defeat legislation and regulation.

6. Providing timely advice to the management about public issues and corporate image in the public and initiating corrective actions wherever needed.

8. Advantages of Public Relations

Ø Credibility

Ø Cost

Ø Avoidance of clutter

Ø Lead generation

Ø Selectivity

Ø Image building

  1. Trade Fairs & Exhibitions

Ø Trade fairs and exhibitions are attended by either the trade or general public. Exhibitions are the only advertising medium which appeals to all five senses of sight hearing smell taste and touch.

Ø Trade fairs attract people even from different places.

Ø The exhibitor gets the opportunity to meet number of prospects under one roof

Ø It helps to generate sales leads and to develop further business contacts

Ø Provides opportunities to display prototypes of new products and to receive visitors’ comments and criticisms which can be used to improve the product.

Ø Facilitates customer education through displays, videos, pamphlets etc.

Ø Exhibitions & trade fairs can reach prospects which are not reached by the sales force

Ø Confidence, credibility and corporate image can be augmented by meeting potential customers face-to-face.

10. Advertising Ethics:

Ethics are the basic rules to be followed by the advertiser depending on the culture of a country. This again depends a lot on the values, opinions and judgments of the viewer. Recently attention is focused on the different areas of advertising such as ads of cigarettes, alcohol, pan masala and such habit causing substances.

Advertisements are also directed to children to provoke them even to buy what they do not need. Apart from the above there are ads of fast food, and other products claiming that they are safe or environment friendly etc. These have to be regulated by the advertisers by adhering to ethical rules which can be summed up as follows:-

Ø Do not misrepresent or omit important aspects of the message

Ø Do not use obscene pictures for advertisements

Ø Advertisers must substantiate their claims in respect of quality, price, performance, safety, efficacy and should not degrade competitors to project their product superiority.

Ø Advertisements should not be deceptive i.e it should not contain any false information, misrepresentation, omission that may ultimately affect the consumer in taking a buying decision.

Ø Advertiser should have good knowledge of the laws of the land in his respective areas and his social obligations to the society.

Ø Advertisements targeting children should be carefully addressed.

Ø Alcohol & Cigarette advertisements are banned in certain countries.

Ø Deceptive health claims such as instant slimming or weight reducing etc should be avoided.

ADVERTISING

&

SALES PROMOTION MANAGEMENT Questions & Suggested Answer Points

Dr H. Venkitachalam

(The suggested answer points contained in this note are only the main highlight

and not fully descriptive. Students have to go through the reference texts

mentioned in the M.G. University syllabus and use this note only as a guidance for examination preparation. Students have to write descriptive answers covering the points for examination)

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