Different types of advertisements: Advertising is the promotion of a companys products and services carried out primarily to drive sales

of the products and services but also to build a brand identity and communicate changes or new product /services to the customers. Advertising has become an essential element of the corporate world and hence the companies allot a considerable amount of revenues as their advertising budget. There are several reasons for advertising some of which are as follows: 1. Increasing the sales of the product/service 2. reating and maintaining a brand identity or brand image. !. ommunicating a change in the e"isting product line.

#. Introduction of a new product or service. $. Increasing the bu%%&value of the brand or the company. Thus' several reasons for advertising and similarly there e"ist various media which can be effectively used for advertising. (ased on these criteria there can be several branches of advertising. )entioned below are the various categories or types of advertising: *rint Advertising + ,ewspapers' )aga%ines' (rochures and -liers The print media have always been a popular advertising medium. Advertising products via newspapers or maga%ines is a common practice. In addition to this' the print media also offers options li.e promotional brochures and fliers for advertising purposes. /ften the newspapers and the maga%ines sell the advertising space according to the area occupied by the advertisement' the position of the advertisement 0front page/middle page1' as well as the readership of the publications. -or instance an advertisement in a relatively new and less popular newspaper would cost far less than placing an advertisement in a popular newspaper with a high readership. The price of print ads also depend on the supplement in which they appear' for e"ample an advertisement in the glossy supplement costs way higher than that in the newspaper supplement which uses a mediocre 2uality paper.

/utdoor Advertising + (illboards' 3ios.s' Tradeshows and 4vents /utdoor advertising is also a very popular form of advertising' which ma.es use of several tools and techni2ues to attract the customers outdoors. The most common e"amples of outdoor advertising are billboards' .ios.s' and also several events and tradeshows organi%ed by the company. The billboard advertising is very popular however has to be really terse and catchy in order to grab the attention of the passers by. The .ios.s not only provide an easy outlet for the company products but also ma.e for an effective advertising tool to promote the companys products. /rgani%ing several events or sponsoring them ma.es for an e"cellent advertising opportunity. The company can organi%e trade fairs' or even e"hibitions for advertising their products. If not this' the company can organi%e several events that are closely associated with their field. -or instance a company that manufactures sports utilities can sponsor a sports tournament to advertise its products. (roadcast advertising + Television' 5adio and the Internet (roadcast advertising is a very popular advertising medium that constitutes of several branches li.e television' radio or the Internet. Television advertisements have been very popular ever since they have been introduced. The cost of television advertising often depends on the duration of the advertisement' the time of broadcast 0prime time/pea. time1' and of course the popularity of the television channel on which the advertisement is going to be broadcasted. The radio might have lost its charm owing to the new age media however the radio remains to be the choice of small&scale advertisers. The radio 6ingles have been very popular advertising media and have a large impact on the audience' which is evident in the fact that many people still remember and en6oy the popular radio 6ingles.

overt Advertising + Advertising in )ovies

overt advertising is a uni2ue .ind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels li.e movies' television shows or even sports. There is no commercial in the entertainment but the brand or the product is subtly 0or sometimes evidently1 showcased in the entertainment show. 7ome of the famous e"amples for this sort of advertising have to be the appearance of brand Nokia which is displayed on Tom ruises phone in the movie Minority Report' or the use of Cadillac cars in the movie Matrix Reloaded. 7urrogate Advertising + Advertising Indirectly 7urrogate advertising is prominently seen in cases where advertising a particular product is banned by law. Advertisement for products li.e cigarettes or alcohol which are in6urious to heath are prohibited by law in several countries and hence these companies have to come up with several other products that might have the same brand name and indirectly remind people of the cigarettes or beer bottles of the same brand. ommon e"amples include -osters and 3ingfisher beer brands' which are often seen to promote their brand with the help of surrogate advertising. *ublic 7ervice Advertising + Advertising for 7ocial auses *ublic service advertising is a techni2ue that ma.es use of advertising as an effective communication medium to convey socially relevant messaged about important matters and social welfare causes li.e AI87' energy conservation' political integrity' deforestation' illiteracy' poverty and so on. 8avid /glivy who is considered to be one of the pioneers of advertising and mar.eting concepts had reportedly encouraged the use of advertising field for a social cause. /glivy once said' "Advertising justifies its existence when used in the public interest - it is powerful a tool to use solely for co uch too ercial purposes!" . Today public service

advertising has been increasingly used in a non&commercial fashion in several countries across the world in order to promote various social causes. In 97A' the radio and television stations are granted on the basis of a fi"ed amount of *ublic service advertisements aired by the channel.

elebrity Advertising 9sing a famous person:s image to sell products or services by focusing on the person:s money' popularity' or fame to promote the products or services. If the famous person agrees to allow his or her image to be used' it is termed a celebrity endorsement. If the famous person:s image is used without his or her permission' the products are termed ;bootleg; or ;.noc.&offs.; The promotion might be through formal advertisements in the media' or it might occur through the famous person displaying the products by using them or wearing them . Although the audience is getting smarter and smarter and the modern day consumer getting immune to the e"aggerated claims made in a ma6ority of advertisements' there e"ist a section of advertisers that still ban. upon celebrities and their popularity for advertising their products. 9sing celebrities for advertising involves signing up celebrities for advertising campaigns' which consist of all sorts of advertising including' television ads or even print advertisements. Layouts: The layouts are e2ually useful for the advertiser and the advertising agencies. To the advertisers' the layout ma.es the ma"imum contribution in the form of securing the attention' comprehension and is aimed at achieving behavioral changes in prospects. Advertising agencies prepare layouts to help achieve the most effective presentation of the clients message. Thus' the purpose of a good advertisement layout is to capture the prospects and eliciting favorable response.

haracteristics of <ayouts: 1. <ayout possesses structural soundness i.e.' its composition is streamlined and clean' its arrangement is orderly and logical= and there is no suggestion of hurried' careless or defective construction.

2. It invites all the prospects to the advertisement + to see the illustration' to grasp the meaning of the headline' to read the copy and to identify the advertiser and the product. !. A layout should be simple' direct' and straight forward and should be easily understood. It should also be mar.ed by an absence of clutter' crowdedness and confusion. 7teps involved in *reparation of <ayout: Thumbnail s.etches: -re2uently' layout starts with thumbnail s.etches' i.e.' elementary drawings. These small s.etches are generally drawn in the e"perimental stage to show different ways of arranging various elements. The 5ough: The 5ough' or visual' evolves from the acceptable thumbnail and although a rough is still somewhat s.etchy' it begins to present more details. The purpose of the rough is to convey the idea to the agency personnel. It is of the same si%e of the proposed advertisement' but the illustrations are roughed in' the headlines are lettered hastily' and the copy bloc.s are represented by hori%ontal parallel lines. 8espite the hasty s.etching and lac. of details' tonal values are clearly apparent' as is the spacing of the element. The rough is good for analysis and sub6ect to criticism and a number of rough may be completed before the final one is accepted. omprehensive: A >comprehensive usually appears on heavy paper or card board and provides further refinement of the rough. The art wor. is shown appro"imately in its final form. ?eadlines are carefully traced or reproduced by other means. Typed matter is shown by ruled lines and careful lettering is shown in its e"act hue and value to indicate tone and color. *aste up or mechanical: The paste up or mechanical' is actually a step beyond layout' but is so closely allied that it is fre2uently considered as apart of the process. To determine the si%e for the paste up' the designer can refer to the rate cards of various newspapers' periodicals' etc.

The paste up contains all the elements of a layout. /ften the type is photographed in place but the art elements are photographed separately. Then all parts are @stripped inA and made into a final film from which plates are made. Design Appeal: Bood 8esign brings together artistic appeal and engagement with the reader. It is not a s.ill that 6ust anyone can pic. up along with the newest version of *hotoshop and In 8esign. )any elements wor. together to create design that is attractive and interactive with a viewer. 8esign in advertising goes one step further by adding a message that calls on the viewer to act. This article discusses design elements and how they wor. together to ma.e successful design. ?ave you ever thought about how designers provo.e different emotions in readersC It has a lot to do with color. 4ach one can suggest mood. Bood e"amples are green for prosperity and white for possibility' which show up fre2uently in advertising. (ut similarly' those colors could communicate illness or anger' not what youd want to advertise. To help define the mood more clearly' many designers combine the elements. -or e"ample' value&the lightness or dar.ness of a color&can deepens or lighten mood. Its important to match the color to the mood you want to create. The element of si%e' especially font or logo' is an oft&debated issue between designer and client. The designer creates it one way and the client wants it bigger. (ut bigger isnt always better. Des' a big mar. or font may attract attention' but is should be the right .ind of attention. If its true that all publicity is good publicity' then that is not the case with attention to design. )a.e a font too big and people will feel that theyre being yelled at and the message may get lost. A little logo can go a long way. The element of shape is interesting because for every positive shape created' there is a negative one that automatically comes along with it. There is' in a way' an automatic balance. 7o the .ey to good design is ma.e sure that the appeal is appropriately placed. It may be appropriate to your advertisement to call attention to

the negative shape' but it should be purposeful. A clutter of shapes is 6ust that: a clutter' which will confuse and distract from a message. A shape can also communicate action because it is a folding of line' the ne"t element I want to discuss. 7imilar to shape is the element of te"ture' which is the surface 2uality. It can be physical or visual and calls upon the viewer to loo. deeper into the wor.. The ne"t element is line. )uch li.e color creates mood and acts li.e an ad6ective' line creates action and acts as a verb. <ine can be an edge where shapes meet or it can be a linear mar.. (ecause it so much li.e shape' it communicates many of the same things: hardness or softness' business or sedation' happiness or sadness' nearly anything imaginable. 9rgency isnt always the best thing to communicate with line' though it is popular in advertisement design. Ehen using line' its important not to lead the readers eye away from the page. All design elements should wor. together to create balance and create an appeal that will ma.e readers engage with the advertisement. If the design isnt attractive' then the message wont be seen. If theres too much message' the design wont matter. <oo. at ads that wor. and practice wor.ing with elements of design. Ehen you do that' design success will be yours.

Copy Structure: Eords have to be shaped and re&shaped' simplified' se2uenced and sentences must comprise the right diction' synta" and grammatical construction. *urpose of opy: The aim of an advertisement copy is to ma.e the public loo.' li.e' learn' and buy the product or services advertised. Therefore' a copy should' Attract primary initial attention Awa.e and stimulate interest

 (ring about an impression which will have money value onvince' persuade or induce the reader

7uggest and lead to specific response to encourage the decision to act and determination to buy. lassification of opy 7tructure: An advertisement copy may be classified on the basis of function' purpose' appeal and message. /n basis of -unction: 1. 4ducational opy: Aims at educating the public regarding the use of the

product/service. 2. )issionary opy: Aims at creating propaganda for the product/service. !. Introductory opy: Introduces a product/service to the consumer' by furnishing details about the product/service. #. *ioneering opy: Aims at underta.ing a campaign for educating the public. $. ompetitive opy: Aims at putting forth the special features of a product so

that it may meet the challenges of the competitors. F. Institutional opy: Aims at developing and maintaining the goodwill of a

product' so that the potential buyers are led to believe that the product/service advertised comes from a reputed company' is reliable and reasonable priced. /n basis of *urpose: 1. Boodwill opy: It is one which does not try to sell a product but aims at selling the public some idea about the company in general' the 2uality of its product etc.

2. 7elling opy: It is used by mail&order house to effect a sale by mail' or by the manufacturer who sells through retailer to ma.e an immediate sale of goods' which he may have in e"cess stoc.. /n basis of Appeal: 1. 5eason why copy: Aims at answering the 2ueries raised about particular product as to why' how' or when it should be purchased. 2. ?uman Interest copy: Aims at appealing to our senses + touch' taste' love' affection' sight' smell' pleasure and comfort. /n basis of )essage: 1. 7uggestive copy: )ay directly or indirectly convey the message which may lead to purchase of the product. 2. 4"pository copy: )entions the fact as they are. It e"plains the construction' operation' uses and aspects of superiority of the advertised article. !. 8escriptive copy: Aims at creating words attractively so that it may impress the readers mind' inducing action. #. Argumentative copy: opy supports the advertised product by facts.

UNIT 4
Sales Promotion: Concept of Sales Promotion: 7ales promotion signifies all those activities that supplement' coordinate and ma.e the efforts of personal selling and advertising more effective. It is non recurrent in nature. That means it cannot be used continuously.

In broad sense' the team >sale promotion refers to >promotion in general because all the activities of personal selling' publicity' advertising and sales promotion lead to increase of sale. 7ales promotion consists of a wide variety of promotional tools designed to stimulate stronger mar.et response. 7ales promotion operates at three levels' At the level of consumer' it is called consumer promotion. 4"ample: -ree gift' samples and price&offs. At level of dealers and distribution' it is called trade promotion. 4"ample: -ree goods' display contests' dealer sales contests and push money etc. At the level of sales persons' it is called sales force promotion. 4"ample: 7alesmens contests' bonus and sales rallies. Definition: 7ales *romotion is defined by the Institute of 7ales *romotion 0I7*1 as @ omprising a range of tactical mar.eting techni2ues within a strategic mar.eting framewor. to add value to a product or service in order to achieve specific sales and mar.eting ob6ectivesA

!"ectives of Sales Promotion: 1. To Introduce ,ew product: 7ales *romotion is often used to motivate consumer to try a new product. 8ealers are also induced to buy new products for resale. products to customers. 2. To attract new ustomers: 7ales *romotion measures aim at attracting new customers. 9sually additional customers are won away from other firms. 7amples' Bift' *ri%es etc. 9sually free samples are given to introduce new

!. To induce present customer to repeat purchase more: 7ales *romotion devices are also used to induce present customers to buy more product development' offering three products at cost of two are some of the devices used to encourage customers to buy more. #. ?elp from the firm 5emain competitive: All companies conduct sales promotion activities. They do not remain competitive. Therefore' no company can afford to ignore promotion activities. $. To Increase 7ales during off seasons: 7ince many products have seasonal demand li.e fan' refrigerators' an important aim of sales promotion of such goods is to encourage purchase during off seasons. That is why we find discount off season price reduction. F. To add to the stoc. of the dealer: The wholesaler and retailers who have a variety of goods in their shop can sell more easily to customers. Therefore' sales promotion activities are underta.en by the manufacturers to encourage dealer to have more stoc.s of their goods. G. To Increase <oyalty: <oyalty to a product or service is much more

ob6ective and personal in nature than repeat purchase loyalty .eeps the product moving even when the company is facing problems in term of price' distribution etc.'

Scope and #ole of Sales Promotion: Advantages to onsumers:

Increased (uying

onfidence & 8istribution of free samples is probably the

fastest and best way through which manufacturers can push consumers to try a product. /nce satisfied with the 2uality of the sample product' consumers become more confident about buying a new product.

5educed 5ates & 8uring promotional campaigns' companies offer their products at discounted rates. onsumers li.e to ma.e use of such occasions to buy larger 2uantities of such products.

It 7upplies Information + Hust as producers are eager to spea. of their new products and services' consumers are e2ually in2uisitive to .now about the latest arrivals. The information made available by sales promotion offers not only the product features but also the special concessions attached to the sales conditions.

It Brants Incentives + It is through the sales&promotion drives that the consumers get a number of incentives' both cash and non&cash. These may be seasonal discount' samples' coupons' gift and contest pri%es.

It (uilds <oyalty + 7ales promotion incentives build brand loyalty and store loyalty. This tagging of consumer to a particular store has its own impact on the consumers. A consumer who is .nown for his regularity and dependability gets credit facilities and special concession on his own.

Advantages to *roducers and )anufacturers:

4ntering ,ew )ar.ets & 7ales *romotion campaigns enable manufacturers to capture new mar.ets. It 5etains The 4"isting ustomers + 4very manufacturer has his own class of customers for his product and services. Tact lies in not only getting new customers but in retaining the e"isting class of customers. Tagging the customers to the product or the firm for long timeis the basic function of sales promotion.

ontrolled 4"penses I )easurable 5esults & *roducers have direct control over sales promotion campaigns and this enable them to ma.e sure that there are no undue wastages in the processJ

Increased 7ales & 7ales promotion techni2ues have favourable effect on the sales of products. ompanies en6oy increased demands for their products while such campaigns are running.

It Eoos )iddlemen + This is true that there cannot be total sales by manufacturers to consumers in these days of mass production on one side and widely scattered consumers on the other= middlemen connects the two ends to balance the demand for the supply of goods. -or performing their functions well' they are .ept satisfied through incentives.

Advantages to middlemen: K It multiplies sales + )iddlemen are benefited by sales promotion activities that create new customers and retain the e"isting ones. The overall effect is that their sales turnover goes on increasing' which is 2uite beneficial to them. K It reduces strain + In absence of sales promotion tool' the middlemen would have been forced to wor. very hard to create' maintain and e"tend the demand for goods on their shelves. K It hi.es earnings + Increased sales for retail stores through sales promotion efforts result in multiplied earnings of commission and profits. K It grants personal benefits + In addition to the increased earnings' sales promotion ma.es possible some special non&cash benefits to a middleman and his family associated with his business. -or e"ample' winning a dealer contest will enable him to go on an trip to 7ingapore. Advantages to the 7ales -orce:

7ales promotion campaigns ma.e the 6ob of the sales team much easier. Than.s to the offers and sales' customers are positively inclined towards buying a particular product.

"o e of the co

only used "ales #ro otion tools include -

-ree 7amples' oupons' <uc.y draws' games and contests' ash 5efund offers' -ree Trials' Tie In *romotion' *oint of *urchase 8isplays etc

Sales Promotion Tec$ni%ues: 7ales promotion techni2ues can be speciali%ed to certain industries' but most techni2ues can be intuitive or learned by trial and error as you are in the process of selling. 7imple advice for successful promotions li.e pre&2ualifying leads' respecting the client' building a relationship and setting realistic goals are often not implemented in pitches' emails' phone conversations and mar.eting materials. TL commercials bombard people with information. If you are face&to&face or have a personal contact with your client' your techni2ues must be different. &et$ods of sales promotion tec$ni%ues: *rice promotions: *rice promotions are also commonly .nown asA price discountingA These offer either 011 a discount to the normal selling price of a product' or 021 more of the product at the normal price. Increased sales gained from price promotions are at the e"pense of a loss in profit + so these promotions must be used with care. A producer must also guard against the possible negative effect of discounting on a brands reputation oupons: oupons are another' very versatile' way of offering a discount. onsider

the following e"amples of the use of coupons: & /n a pac. to encourage repeat purchase & In coupon boo.s sent out in newspapers allowing customers to redeem the coupon at a & A cut&out coupon as part of an advert retailer

& /n the bac. of till receipts The .ey ob6ective with a coupon promotion is to ma"imi%e the redemption rate + this is the proportion of customers actually using the coupon. /ne problem with coupons is that they may simply encourage customers to buy what they would have bought anyway. Another problem occurs when retailers do not hold sufficient stoc.s of the promoted product + causing customer disappointment. 9se of coupon promotions is' therefore' often best for new products or perhaps to encourage sales of e"isting products that are slowing down. Bift with purchase: The @gift with purchaseA is a very common promotional techni2ue. It is also .nown as a @premium promotionA in that the customer gets something in addition to the main purchase. This type of promotion is widely used for: & 7ubscription&based products 0e.g. maga%ines1 & onsumer lu"uries 0e.g. perfumes1 ompetitions and pri%es: Another popular promotion tool with many variants. )ost competition and pri%e promotions are sub6ect to legal restrictions. )oney refunds: ?ere' a customer receives a money refund after submitting a proof of purchase to the manufacturer. These schemes are often viewed with some suspicion by customers + particularly if the method of obtaining a refund loo.s unusual or onerous. -re2uent user / loyalty incentives: 5epeat purchases may be stimulated by fre2uent user incentives. *erhaps the best e"amples of this are the many fre2uent flyer or user schemes used by airlines' train companies' car hire companies etc. *oint&of&sale displays: 5esearch into customer buying behavior in retail stores suggests that a significant proportion of purchases results from promotions that customers see in the store. Attractive' informative and well&positioned point&of&sale

displays are' therefore' very important part of the sales promotional activity in retail outlets. Trade oriented and consumer oriented: 7electing consumer promotion tool: The promotion planner should ta.e into account the type of mar.et' sales promotion ob6ective' ompetitive conditions and each tools cost effectiveness. Consumer riented Tool:

7amples: /ffer a free amount of a product or service delivered door to door' sent in the mail' pic.ed up in a store and attached to another product. oupons: ertificates entitling the bearer to a stated saving on the purchase of a

specific product: )ailed' enclosed in other product or attached to them. ash refund offer: *rovides a price reduction after purchase rather than at the retail shop: onsumer sends a specified @*roof /f *urchaseA to the manufacturer who @refundsA part of the purchase price by mail. *rice pac.s: /ffers to consumers of savings off the regular price of a product' flagged on the label or pac.age. A reduced price pac. is a single pac.age sold at reduced price. 07uch as two for price of one1. *remiums: )erchandise offered at a relatively low cost or free as an incentive to purchase a particular product. A free&in&the +mail premium is mailed to consumers who send in proof of purchase' such as a bo" top or 9* code. -re2uency *rogram: *rogram providing reward related to the consumers fre2uency and intensity in purchasing the companys product or services. *ri%es: *ri%es are offers of the chance to win cash' trip or merchandise as a result of purchasing something. 4"ample: ontests' 7weepsta.es and games. *atronage awards: Lalue in cash or in other forms that are proportional to patronage of a certain vendor or group of vendors.

-ree trials: Inviting prospective purchase to try the product without cost in the hope that they will buy. *roduct warranties: 4"plicit or implicit promises by sellers that the product will perform as specified or that the seller will fi" it or refund the customers money during a specified period. Tie&in promotions: Two or more brands or companies team upon coupons' refund and consists to increase pulling power. ross promotion: 9sing one brand to advertise another non competing brand. *oint&of&purchase 08isplay and 8emonstration1: */* displays and demonstrations ta.e place at the */* or sale.

Trade oriented tool: )anufacturer use a number of trade promotion tools. To persuade the retailer or wholesaler to carry the brand. To persuade the retailer or wholesaler to carry more units than the normal amount. To induce retailer to promote the brand by featuring' display and price reduction. To stimulate retailers and their sales cler. to push the products. *rice off: A straight line discount off the price on each case purchased during a stated time period. Allowance: An amount offered in return for the retailers agreeing to feature the manufacturers product in some way. An advertising allowance compensates retailer

for advertising manufacturers product. A display allowance compensates them for carrying a special product display. -ree goods: /ffers of e"tra cases of merchandise to intermediaries who buy a certain 2uality or who feature a certain flavor or si%e. Trade shows and onventions: Industrial associations organi%e annual trade shows

and conventions. (usiness ma.ers may spend !$M of their annual promotion budget on trade shows. /ver $FNN trade shows ta.e place every year' drawing appro"imately ON million attendees. 7ales contests: A sale contest aims at inducing the sales force or dealers to increase their sales result over a started period' with pri%es 0money' trips' gifts or points1 going to those who succeed. 7pecialty Advertising: 7pecialty advertising consists of useful' low&cost items bearing the companys name and address' and sometimes an advertising message that sales people give to prospects and customers. .ey chain' flash light and memo pads. ommon items are ball point pen' calendar'