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Advertising and Personal Selling

Advertising is a paid form of non-personal communication aimed at promoting products or services to inform and influence consumers. It serves various purposes, including brand building, increasing sales, and educating the public about products and social issues. Different types of advertising include broadcast media, print media, direct marketing, and internet advertising, each with its own advantages and disadvantages.

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0% found this document useful (0 votes)
19 views99 pages

Advertising and Personal Selling

Advertising is a paid form of non-personal communication aimed at promoting products or services to inform and influence consumers. It serves various purposes, including brand building, increasing sales, and educating the public about products and social issues. Different types of advertising include broadcast media, print media, direct marketing, and internet advertising, each with its own advantages and disadvantages.

Uploaded by

singhyogesh0210
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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am

Unit
Introduction to
OPAdvertising
0.1. What do you understand by advertising? State its nature and
Ans. Adverisimg rerers to
means of communication with the users ofimportance.
a
product or service a
Advertisements are messages paid for by those who send them and are intended to inform
ar influence people who receive them.
formation for promoting the sale of Advertising is the activity or profession of producing
commercial products or services. lt provides a
line of communiteation to the existing and prospective customers about business, direct a
service. 1ne tmain purpose of advertising is to make customers aware of the product
cervices ofered by a particular business. Advertising8 is an audio or visual form ofgoods and
communicaton tat employs an openly sponsored non-personal message to promote markefing
or sell a
product, service or idea. sponsors of advertising are often businesses who wish to promote their
Droducts or services. The message which is presented or disseminated is called advertisement.
Followng ae some popular definitions of Advertising:
"Advertising ts a paid fori of non-personal presentation of ideas, goods or services by an identified
sponsor."-Richard H. Buskirk
"Advertising is a printed, written, oral and ilhustrated art of selling. Its objective is to encourage
sales of the advertiser's products and to create in the minds of people, individually or collectively, an
impression in javour of the advertiser's interest."
Frank Presbrey
"Advertising can be described as the art of creating demand for an article or service."
-C.L. Bolling
Nature Characteristics /Features of Advertising
( Tool for promotion. A marketer. uses various tools for promoting his goods and
services. Out of these tools, advertisingis a powerful, expensive and popular tool o
promotion used by marketers to boost up their sales.
It is a of
(ii) Non-personal. Advertising is a non-personal tool of promotion.aims at type
non-

personal or mass communication with the target market.


It passing on
information to a large number of people at a time. It is often called a non-personal

salesmanship free. Advertiser also known as


sponsor has to spend
(in) Paid form. Advertising is not for It is
media and monitoring advertising efforts.
money for preparin8 message, buying
has to prepare its advertising budget to
an expensive tool of promotion. Company
appropriate advertising costs.
is a famous and widely used tool of promotion used
(0) Wide applicability. Advertising with the target market. It is widely used by various
by marketers for ommunicating
typés of business and
other educational institutions, government
organisations Ikeattract
etc. to inform and the target market.
agencies, charitable trusts, aims at achieving various objectives. It is targeted to
() Varied objectives. Advertising firm in creating and
sales and market share of the firm. It also helps the
increase relations with public. It is used as a tool
and building good
improving brand image the in facing intense competition
in the market.
to educate people and helps firm becommunicated in various

forms of message can


Advertising, Advertsingform. with
D) Various audible or visual messages
Mostly are expressed
forms like wrliten, oral, various advertising torms ike oral-visual,
audia-visual etc.
combination of
the help of
1
UNIVERSITY SERIEs
Shiv Das DELHI
2 media to cOn.
media. Advertiser
the several advertisingmagazines, let
may use any of
(vii) Use of use print media like newspapers, hoardings, s
the message. Often advertisers
booklets etc. le may use outdoor
media that includes
pamphlets, banners ctc.
vehicle
media like radio, televis
Audiovisual
audience
boards, wall-printing,
also be used by
the marketer to address the target
film, internet, ete. c a n involves a dialogue.
monologue not a

comnmunication. Advertising mo
(P) One-way c o m m u n i c a t i o n only.
Under advertising messages
associated wilh one way
customers. Il means that messages move
irom.sponsor to audience
from company to Hence a marketo
Movement of message from
customers to
m a r k e t e r is
not possible.
has intluenced the audience
how far the advertisement
finds it difficult to ascertain environment. It has become
important role in today's competitive
Advertising plays a very
life be it the traders, producer
or the customer
everybody in today's day day
to
for
a
necessity competitive environment:
nportance of advertising in today's
customers. Advertising Plays very important
a

Advertising is important for the Customers buy a partiçular product only


after they
role in
the life of the customers. case the product is not
available in the market. In
are made aware of the products know what products are available and will
no customer will come to
advertised,
not buy the product even if the product was for their benefit. Advettising allows
customers to find best products for themselves and their family members. Afte they
about the products they can compare the products with other products
come to know
available in the market and then can take a final buying decision. Adverfising helps
the customers in wisely spending their income on purchase of various goods and
services available in, the market.
() Advertising is important for the seller and companies producing the product
sellers due fo the folowing reasons:
is
Advertising veryimportant for
the producers and
Advertising helps in increasing the sales yolume.
-

Advertising helps the producers and the companies to know about their
competitors in the market and make plans according to the level of competition.
Advertising plays a crucial role for, a company that wants to introduce a new
product in the market. t helps in the launch of new products and making
people aware of the new product so that the consumers come and try it.
Advertising helps creating goodwill for the company in the market and gaining
consumer loyalty.
Advertisement helps in creating
and stimulating the demand for company's
product in the market. The demand for the product keeps on coming with the
help of advertising.
(ii) Advertising is important for the society. Since advertising helps in creating awareness
among the customers hence it is an important tool for educating people in the
society. Advertising also helps in addressing social issues like child labour, tobacco
consumption, liquor consumption, family planning girl child killing etc. Moreover
advertising creates large number of job opportunities for the younger population of
the society. Hence advertising is important for the society and its members.
Q.2. Explain the objectives of
advertising. Also discuss the various
Ans. types of. advertising
Following are the main
objectives of advertising:
() Brand building. Advertising helps in the
establishment and promotion of a brand in
the existing market. It also aids in the creation ot a new market for the brand.
Advertising is the best option for promotion when it comes to the launch of a new
product or service.
i) Trial. Companies which are in their
stage of intraduction usually work for such
an
objective. The trial
objective af advertising involves convincing and
Customers to buy the new
product introcduced in the market. Here, the persuading
use attractive advertisements to advertisers
behind is to grab the attention of the customers. The main idea
lure away the customers from other
substitutes available in the market.
Companies prepare ads to make customers
take a look at the
them for trials. products and purchase
UNIT I: Introduction to Advertising
nsure contnuity of sales. This objective is concerned with keeping tne exii
Ensurs to stick to the
in the p r o e a
product. The au he existing
the advertisement, so that the existing customers Keep or
custod keep
on semng
their products. I he main idea behind is not to loose customers and keep on sellb
new procucts and otherinnovations by the firm to thie extsting customers.
(iv) Enable Drand switch. This objective is followed by the companies that wisn to
ure away Customers from the competitors. Here the advertisers try to convince the
customesOSWItch trom the existing brand they are using to their own proau
Advertisers convince the customers lo prefer their brand over the other branas
offered by the competitors. Such an objective is achieved by the advertisers when
they successruily convince the customers lo use and buy their producis insteaa O
opting for other alternatives available in the market.
()Switching back. This objective is followed by the companies who want their previous
customers Dack. Under this objective companies wish to sell their products again to
those customers who have switched over to the competitors. In order to get ther
customers back, the advertisers use different ways to attract the customerS IKe
discount,inrebate, offers, schemes, new packaging etc. Advertisers may bring sultaDe
changes their advertising strategy to gettheir customers back.
(oi) Achieve sales and profit goals. Advertisements create awareness about a brand and
help in increasing the demand for a product or service. The increased demand resus
in increased sales and therefore, profit goals of a company are attained with the nelp
of advertising
Following are the different types of advertising:
0 Broadcast medi . Television and radio are the two main tools of such ype or

advertising. Television ofers creative opportunitnes, dynamic message and wde


reach. It is considered as the most important and expensive tool of advertising Kadio
on the other hand is a more affordable source of advertising. It is generaly usea
by small businesses to promote their goods and services. The Success of broad cast
advertising largely depends on the repetition and frequency of the adverhsements.
However, both television and radio have their own merits and drawbacks as tools ot

broadcast advertising
() Frint media. Such type of advertising includes magazines and newspapers. Magazines
offer a highly selectiveaudience who is generally interested in ads which are closely
related to the topic of the magazine. Visual imagery is also stronger in magaz1nes as
compared to newspapers. Advertising in magazines can be costly and require long
lead times which limits timely promotions.Theyalso have limited audience reach.
Newspapers on the other hand are very affordable for local businesses and allow
them to target a geographic segment if the businesses are offering universal product
or service. Newspapers, are also viewed as a credible medium, which enhances
ad acceptance. However declining circulation, a short shelf life and limited visual
creativity are the major drawbacks of newspapers as a medium of advertising
(i) Support media. It includes several options for message.delivery that normally add to
or expand campaigns.delisered through traditional media. Support mediaincludes
billboards, transits, bus, benches, aerial, directories and trade publications. Each and
every support media ha_ its own advantages and disadvantages but collectively,
they offer ways to reach a wider audience in local or regional market or to increase
frequency of message exposure to targeted segments.
(iw) Direct marketing. Direct marketing is an interactive approach to advertising. It
includes direct mail, e-ma, ana telemarketing. 1hese are direct response efforts to
create an ongoing dialogue or nteraction With customers. For example, weekly or
monthly e-mail, newsletters allow a business to keep its brand products and other
messages in front of prospects and customers. Telemarketing is a way to survey
customers and offer new producis, upgrades or renewaS. Direct mail is the most
Common format of direct marketing where advertisers send mailers or postcards to
targeted customers promoting products, deals or promotions. Direct marketing has
UNIVERSITY SERIES
Shiv Das DELHI

il allows for case


in tracking_ custoner respon
become nore prominent because on investment
better measure return
Tates and helps advertisers
lt is another newer type advertising of
in whicn a Dusiness offe
() roduct placement. to use s prouuct whip
lo a TV show, movie,
vicdeo game or themne park
ompensation to
depict is produ
a TV show
lor inslanee a business can pay
ertaining andiences,
diseussed positively particular in a
scene. This type or adverusing i
Demg used and entertainment since customers nave found
lor companies lo integrale ads with
a
Way
that are delivered through more
conventionalmeaa.
to messages
Ways avoid internet as well as oflinecompanies to promote
("9) Tnternet. The is uscd by both online
prouucts or services, Banner ads, pop up ads, text ads and paid search placement
are coninuon lorms of internet advertising. Banner, pop up and
text
aas are ways to
Or
publisher's website or on
a number weDsit
an image or message on a
pesent
a third party platform ike Google's
AdWords programme.
F'aid
search
nrough Under this
metnod a
known as cost per click advertising.
placeients is commonly to users Or
Search
Dusiness bids a certain amount
lo present its link and text message
engines like Google and Yahoo.
S . what is advertising? In 'what respect is it beneficial for both the fin and the
2017
consumer?
Ans Advertising refers to means of communicationwith the users of a product or seVICe

Aavertisements are messages paid by those who send.them momm or and are intended to
intiuence people who receive. them. In simple words,"advertising refers to the activity of
producing information for promoting sale of commercial products or services. Adverusing
or services by an
a form of non-personal presentation or promotion of ideas, goods
paia
sIdentihed sponsor with a view to disseminate infornmation
concerning an idea, product o
service. The message that is presented or disseminated is called advertisement
Following are some important definitions of Advertising:
Adbertisin8 1s any paid non-personal presentation of ideas, goods or services for the
purpoSe of
mducing people to buy. -Wheeler
Aavertisin8 Is a paid form of non-personal presentation of ideas, goods ór services by an identifed
-Richard Buskirk
sponsor.
Advertising consists of all the activities invotved in presenting to a group, a non-personal, r l on
vISual, openly sponsored message regarding a product, service or idea, disseminated through one or more

media and is paid for -William J. Stanton


by an identified sponsor.
Benefits of advertising to firms and consumers Advertising helps inspreading intormation
about the firm, products, quality and place of availability of its products and so on. Advertising

is Benefits
needed not
to only bytheIt producers
producer. butitalso
pays to advertise. heips
It has theconsumers.
become indispensable for the manufacturers
and distributors because of the following advantages:
() It helps in introducing new products.
(in) It can create new taste among the public and stimulate them to purchase the new
product.
(ii) Tt assists to inçrease sale of existing products by entering into new markets and at
racing new customers.
(io) It helps in meeting the forces of competition in the market place. It is necessary t
remain'in the market and remind the customer as done by the soft drink companies
(o) Itis used to increase the goodwill of a firm by promising and informing about th
improved quality to the customers.
(v) Morale of the employees is raised. The sales-persons feel comfortable as their tas
becomes easier if the product is advertised and is already known to the public.
(vi) It facilitates mass paduction of goods. It also facilitates direct distribution of the
product through the retailers. Retailers are encouraged to purchase and sell the ad
vertised products.
Benefits to consumers. It offers the following advantage to the consumers:
() Consumers come to know about the existence of various products and their prices
They can make a choice from the various brands available to satisfy their wants.
UNIT :
Introduction to Advertising
teducates une people about new prøducts and their diverse uses.
fii induces tne manufacturers to improve the quality of
It
search ana development. This ensures their products througn e
consumers. supply of the products of better quality tne to

0.4. "Money spent on advertising is wasteful".


Critically examine the statement. 2013
Or
All adverising is a social work'" Discuss.

"Money spent on advertising is wasteful. This statement is


Ans.
2016
argued that aavertising unduly increases the cost of product andpartially correct. Though
s

o indulge in uitgeSSay_consumption but 'still we encourages consumers


ot from adverising Ike it cannot ignore the number of benefits we
educates the consumers about new products and
their uses, coe
ces, quality, erc. It also aids in creating regular demand and
f people. It facintates the mass distribution and in raising the standard ot livin8
Dart from this, advertising also helps in availirng the benefits of economies of scale.
this light we can sustaining the media and creating employment 1or
youths. In say that advertising is not a social
Q.5. "Adverising should be socially, ethically as well legally waste.
as
responsible." Comment.
2007
Ans. Advertising does retlect the changing cultural values of a society. At times, it itselfacts
a change agent.
as
whle doing so it should not lose sight of the developmental perspective.
The advertisers are responsible for bringing new kind of
a
'globalism' to marketing. expense of
promotes the universal commercial values of exploitation and profiteering at the Globalism
the developing world. Such advertising can also distort the development priorities of poor
countries.
Ethical advertising contains truth, not absolute truth, but sdcially acceptable standards of
honesty as fruth. It has to be
right in its approach and claims. Business moraty 1S
from social morality. ruth in ethical advertising is valued because an advertiser derived
indulging
in untruth will be spotted sooner or later. He will lose goodwill forever, not only for one
product, but possibly for his entire product line. It is, immoral for an advertiser to deceive his
prospects. Laws in most countries are stringent against untruth in advertisements. Consumer
consciousness also pressurises the advertiser to be ethical and truthful.
Ethical advertising_ can shift the demand curve to the right. Vulgarities and unethical
distortions give a bad name to advertising- It is better to remember that unethical
advertising
is bad business,
Advertisements should contirm to laws and should not offend morality, decency and the
religjous susceptibilities of people. No disparaging or derogatory remarks of other products
or comparison with them should be made. The Consumer Protection Act 1986 is designed to
protect consumers against deceptive advertising to some extent.
creates materialism in the sociely." Comment.
9.6. "Advertising
Ans. Advertising has always been criticised on the ground that it promotes materialism.
Criticisers of Advertising claim that advertising promotes materialism in several ways.
Aavertising aims at reating demand and increasing the sales of a firm. It does so by creating
new needs and desires among people. Advertising also encourages people to compete with each
other by purchasing more and better products. Advertisng oten encourages consumers to use
new products and replace theoldones: It persuade people to buy newest and best models and
versions of the product. Thus by multiplying the needs of the consumers, advertising fosters
a throw away' Society. Due to advertising consumers start demanding those things which
ney actually do not need. Materialism is very prevalent in advertising today, as products and
services are representedas essentiaBte-achieve happuness. Various
types ot appeals are used by
advertisers to create a false need in the minds of the consumers. 'This results in multiplication
o Consumers needs and they start buying things that they ao not actually need. For example,
onsumers may buy those products which are endorsed by their favourite celebrities. However,
reality they may not need those products. Advertisements have induced a requirement for
tne products and services to consumers making them close to materialistic society. Presently,
People cannot live without cars, they are more attracted towards new watches and clothes
respective of their price level. Thus, consumers are blinded by the shine of materialisnm to
Shiv Das IDELII
UNIVERSITY SERIES
now-a-days don't wans
adverlisements. or exanipleC. people in it too. Hence
whh they are exposrd through to ind comtort they u
themselves lit, insted they lry
to jog r walk lo keep
machines, Ielly lat burnng belts, elc. at
their
home to Keep themselves fit
of cut throat
reanills, eercisiny; its inmportance today in s
era
promoles materialiSi1, in the hands of the marketers
ough aedverlising is an imporlant tool
cannot be ignored. Advertising
oeuthon ultimate purpose underiying advertisingis al
their sales. The
tinat hely's
Ihem m bosting upr otfered
awareness, It nlor1s and eTsuacdes buyers
the buy go0Is ana servICesthe
to

Cease
is designed to inerevase
sales and profits of the
tirm,
tis one of most
y the firnm. Advertising can
number of
reach large customers
wlhich marketers
mortant lools ot pomotion through its importance as a communication
n ime, Thus even il advertising pronotes malerialism,
no
tool camot be ignored. and advertising
in the context of marketing
. 7 . Discuss the concept of communicationOr
Explain the process of adverti_ing communication. Use example.

Marketing Communication means any material which is published or


Ans. Advertising medium
or
of an
or
any activity that is undertaken by, or on behalf advertuser
dcast
or marketerusing
overany
which the advertiser or marketer has a reasonable degree of control. Jt aims

or
calculated to promote or oppose directuy
drawing the attention of the public in
a manner
at
or line of conduct. Marketing communicaion
nainetly a product, Service, person, organisation is an important tool. Marketing
uses ditferent channels and tools in combination. Advertising
communications and advertising deliver coordinated messages about goods and services
media and experimental activities. Advertising
through many channels like television, radio,Advertisements are
acts as a with the users of a product or service.
means ot communication
messages paid tor by those who send them and are intended to intorm or intluence people

who receive them.


includes the elements:
Marketing or Advertising Communication process following
S e n d e r . It is typically the company t h a t produces a product or service.
the
involves communicating the message in understandable terms for
Encoding. inIt some
() consumer companies. This role is carried out by the Advertiser or a Marketing

manager.
(ii) Transfer Mechanism. It is the medium used to transter the message.
(iv) Decoding. It involves how the consumer interprets the message
() Response. It is concerned with how the customer reacts to the message.
nas been.
(vi) Feedback. It measures how successtul the advertising campaign
Comnunicatio:
Following is an exanmple of Advertising or Marketing
) Sender. Clothing Manutacturer.
out by the advertiser or
marketing manager at the instruction of
(i) Encoding. Carried
clothing manufacturer.

(ii) Transfer Mechanism. Television


the television advertisement and, keeps it in mind.
Customer sees
(iv) Decoding. of
() Response. Customer goes to the
store and purchases the new product (An item
clothing).
(vi) Feedback. Information that customers are responding positively to the message.
Q.8. Define marketing communication. Discuss a basic model of marketing communication.

Explain the response process in marketing communication. Discuss the traditional


response hierarchy models.
Ans. Communication has been widely defined as the passing of information, the exchange
commonness or oneness of thought between a sender
ideas; or the process of establishing a

and receiver.
Marketing communication is defined by Kotler as-"The means by which firus attempt to in
Jori, persuade and remind custonmers, directly or directly, about. the products or brands that theysel.
A basic model of Communication. Two elements represent the major communicatio
Another two are the major communication tools, message
process, the sender and the receiver.
and channel. Four other are the major communication functions and processes-encoding
UNIT I: Introduction to Advertising8

vant in the
sponse and recclback. The last element noise refers any extraneous taclors
to
use
decod hat can interfere with the process and work against cffective communit
fit. s y ' r c e encoding h e sender or source of a comnunication is the perSon or organisaton

roat Source
may be an
as information
to share with another person or group of people, The source
ters in company's advertisements
or

nidual say a spokesperson, like celebrity, who appears


a

indiversonal entity like the corporation or organisation ilself. The communicato Pro
ered a i n when the soure selects words, symbols, pictures and the like to represent tne messagt
nost to the receiver. This process, known as
encodinE invoves Putdng
ill be deliverecd
ners
1on tnahts, ideas or intormation into a symbolic form. of a message that contains the
Message. 1ne
encoulng process leads to development
mation or meaning the source hopes to convey. The message may be verbal or non-verbal,
nfo
must be intoa transmittable form
that is appropriate
oral or written or syinOnC. Messages used. put
the channel or communication being the source or
Channel. The is channel the method by which the communication travels from
of two
the
the.recelver. At types
broadcast level, channels of communication are
onder to or

Personal and otpersonal. Fersonal channels of communication are direct interpersonal


channels of communcaton
mis contdct witn target individuals or groups. Non-personal
dce to face
cethose that carry a message without interpersonal contact between sender and receiver. Non
or
re communication, since
1on reterred to as the mass media or mass
Dersonal channeis dre generally
ng to individuals at one time.
e message is sent many with whom the sender shares
ces 1he receiver is the person or persons
ReceiverDecoding. market or audience
ing
thoughts or
intormation. Generally receivers are consumers in the target
This process is heavily
are
who
or
read, hearn e see the marketer's message back intoofthought. the
ple of reference or field experience which referS to
influenced Dy receiver s frame
attitudes and values he or she brings to the communication situation.
experiences, perceptions, to factors
Noise. 1nrougnout the communucation message process, the is subject extraneous
interterence is
its reception. This unplanned distortion
that can with
distort or interterealso of the sender and receiver
e occur because the fields of experience
knowi as
noise. NO1Se may
do not overlap. Lack of common ground may result in improper encoding of the message
meaning to the receiver.
that are untamiliar or have difterent
words
using sign, symbol or The
a
set of reactions after seeing hearing
or
reading the
receiver's
Responseteedback. actions, like
message is called
a
response. Keceiver s response can range from non-observable
like dialing a toll-tree number to order
a

storing information in memory to immediate action


television. Marketers are interested in feedback. Feedback can take
very
product advertised on
to monitor how thhe intended message is being decoded
a
variety of forms. It allows the sender

and received. their customers marketers must


Analysingthe receiver. To communicate etfectively
with the
with
A marketer must know how to communicate
understand who the target audience is.
Marketers must also know how the market
audience to influence its decision making process.
of
to various sources
or types of messages before
communication different Promotional
skety to respond variables. planners
f tney make decisions regarding source, message and channel
of these factors.
with each
the potential effects associated
ST Lunderstand marketing communication process actually begins
audience. The
with
ldenfitying the target and promotional efforts.
will be the focus of the firm's advertising
1dentitying the audience that niche markets, market segments or a
he
target audience may consist of individuals, groups,
8eneral public ór mass audience:
the most important aspect of developing effective
ne response process. Perhaps involves understanding
the
response process
the receiver may go
Unication programmes behaviour like buying a product and how the promotional
ugh in moving toward a specific
responses. consumer
O f the marketer influence models have been developed to
2tional Response Hierarchy Models: in movingoftrom a state of not being aware of a
A number

through
h e stages a consumer may pass behaviour:
or purchase
brand to actual
PyProduct the stages, a salesperson
developed to represent
model was
DA model. The AlDA process. This
model depicts the buyer as
nust tak a customer-through in the personal selling
UNIVERSITY
SERIES
Shiv Das DELHI

Desire and Action. The salesperson mustf


Attention, Interest,
company product servic
or
through
passing successfullyattention interest in the
s
arouse some
Ihe action stage in th
and then
get the customer's or use
the product.
desire to own
interest should create th
rong levels ofinvolves the customer to make a purchase commitment and closing to
DA model getting
selling process. Companies provide ralning thei,
1 his
stage is most important in the the selling process.
Sale. in closing techniques to help
them complete 1t
aesepresentatives which advertising worKS. assume
2. Hierarchy of Effects model. It
shows the process by
order from initial awareness of
passes through a series
of steps in sequential
consumer model is that advertising effect
or service to actual purchase.
A basic premise of this
Product to immedate Denavioura
communicationmay not lead
OCcur over a period of time. Advertising each step fulfilled berore the
must ocur, with
or purchase, rather a series of effects
esponse can move to the next stage in the hierarchy.
consumer
Knowledge+Liking-Preference>
ConvictionFurchase
s 7nclude: Awareness is evolved from work
on
the ditrusiom
The Innovation Adoption model. This model
. the stages a consumer passes through in
auopung a
Or innovations. This model represents
or service. Like the other
models, says potential adopter
it
nnovation-such as a new product
must be moved through a series of steps before taking some action. The steps preceding adoption
Interest, evaluation and trial. The challenge facing companies introducing new
dre awareness,
1s create awareness and interest among consumers
and then get them evaluate to

proaucts to
the product favourably.
effects was developed by
Information
TheMcGuire.
William
Processing model. This model of advertising
This model assumes that the receiver ina persuasive communication sirylaton
According solver. to McGuire the serie
uKe advertising is an information processor or problem response hierarchy. The stage
Or steps a
receiver goes through in being persuaded.constitutes a

of this model are similar to the hierarchy of effects sequence; attention and comprehension
with liking. This model
are similar to awareness and knowledge, and yielding synonymous
is
includes a stage not found in other models- retention. It is the receivers s ability to retain that

portion of the comprehended information-that he accepts as relevant.

Effectiveness tests Steps in Persuasion Process

Circulation Reach | Exposure/Presentation

Listener, Reader,
Viewer Attention
Recognition

Recall, Checklists Comprehension

Brand attihudes Message acceptance


Purchase intent Yielding

Recall over time Retention

Inventory, Point of
Purchase, Consumer Purchase Behaviour
Panel Scanner Data

Each stage of th response hierarchy is a dependent variable that must be attained and tha
may serve as an objective of the communication process. Each stage can be measured, providint
the advertiser with feedback regarding the effectiveness of various strategies designed to mov
the consumer to purchase. The information processing model may be an effective framewo
for planning and evaluating the effects of a promotional campaign.
UNIT I: Introduction to Advertising8

tuaditional
ditio
Response Hierarchy models at a glance:
MODELS
Stages AIDA Hierarchy of. Innovation Information
Model effects Model adoption Model Processing Model
Cognitive stage
Attention Awareness Awarencss Presentation
Knowledge Attention
Comprehension
Interest
Atractive stage Interest LIKing Yielding
Desire Preference Evaluation Retention
Conviction

Behavioural Action Purchase Trial Behaviour


stage
Adoption
brief note alternative response hierarchies.
Q.9. Write a on
Or
Explain the model of information processing developed by Michael L. Ray.
Ans. Michael L. Ray has developed a model of information processing that identifies
alternative orderings of the three stages based on perceived product differentiation and product
involvement.

These alternative response hierarchies are:


1. The standard learning hierarchy. In many purchase situations, the consumer will go
through the response process in the sequence depicted by the traditional communication
models. In the terms of Ray, this is a standard learning model which consists of a learn feed
do sequence. Information and knowledge acquired or learned about the various brands are
the basis for developing affect or feelings, that guide what consumer will do. In this hierarchy
the consumer is viewed.as an active participant in the communication process who gathers
information through active learning.
2. The dissonance/attribution hierarchy. A second response hierarchy proposed by Ray
involves situafions where consumers first behave then develop atitudes or feelings as a result
of that behaviour and then learm or process information that supports the -behaviour. This
dissonance/attribution model or do feel learn, occurs in situations where consumers
must choose between two alternatives that are similar in quality but are complex and may
have hidden or unknown attributes. The con_umer may purchase the product on the basis
ot a recommendation by some non-media source and then attempt to support the decision
by developing a positive attitude towards the brand and perhaps even developing negative

feelings towards the rejected alternative.


3. The low-involvement hierarchy. Under this hierarchy the receiver is viewed as passing
rrom cognition to behaviour to attitude change. This learn do > feel sequence is thought
o characterize situations of low consumer involvement in the purchase process. Ray suggests
tnis hierarchy tends to occur when involvement in the purchase decision is low, there are
minimal differences among brand alternatives and mass media advertising especially broadcast
Verising is important. Involvement is viewed as variable that can help explain how
sumers process advertising intormation and how this intormation might affect message
pients, One problem that has plagued the study of involvement has been agreeing on how
deine and measure it. Advertising menagers must be able to determine targeted consumer's
VOvement levels with their products.
1 0 . Explain Richard Vaughn's FCB planning model for analysing the communication
situation.
DELHI UNIVERSITY SERIES
Shiv Das

10 Or

of communication
model Belding advertising agency introduced
Grid
the FCB
Discuss
r Vaughn of the Foole,
Cone
and and hisass0cia
DIS ne communication
Situation. Vaughn
lo analyse
pproach model by building on traditional response theories like th,
intercsnn vertising planning and low involvement. Th
ns
Varianis and
research on high
iahy of effects model anct e n g process at each
involvement level by bringi
added the dimension o tninkg specalisalion.
s
Drain
theories egarding
in Possible results of
Antevedenls of
involvemenl terivecu
Involvement
fnom he literature
Elicitation of counter
aguments to ads
Iersonal tors
Nevs
Effectiveness of ad to
Imprtae
Involvement induce purchase
nes
Values Relative importance
Object or stimulus
With advertisement of the product class
factors
- Differentiation of
With products. Perccived differences
altermatives
oune of
n product attributes

communication
of a
A reterence
With purchase decisions
-Content o
communication
particular brand

Influence of price on
Situational factors brand choice
urchase/use
Occasion Amount of information
search

Time spent deliberating


alternatives

Type of decision rule


used in choice

The right/left side of the brain theory suggests that the left side of the brain is more capab
of rational, cognitive thinking, while the right side is more visual and emotional and engag
more in the afective or feeling functions. Their mòdel, which became known as the FCB gs
indicates tour primary advertising planning strategies-informative, affective, habit formati
and satisfaction alon8 with the most
appropriate variant of the alternative response hierarchi
Thinking Feeling
High 1. Informative (Thinker) 2. Affective (Feeler)
involvement
| Car-House-Furnishings-New products Jewellery-Cos1metics-Fashion Apparel
Model: Learm-feel-do (Economic) Motorcycles
Possible implications Model: Feel-learn-do (Psychologica)
Test: Recall diagnostics Media: Long Possible implications
cOPy format relective vehicles Test: Attitude change emotional
Creative: Specific information demon-|arousal
stration
Media; Large scale image specias
Creative: Executional impact
LoW 3. Habit formation (Doer) 4. Self-satisfaction (Reactor)
involvement | Food-Household items
Model: Do-learn-feel (Responsive) Cigarettes-liquor-candy
Mode!: Do-feel-learn (Social)
Possible implications | Possiblie implications
Test: Sales Test: Sales
Media: Small space ads Media: Bilboards, newspapeis
Creative: Reminder Creative: Attention
UNIT I: Introduction to Advertising

The FCB grid provides a useful way for those involvedin the acdvertising planning, proces,
as crealive specalisls, to analyse consumer-product relationships and develop appropriate
such
pronotional strategi. COnsumer research can be tused to develop effective creative options
Sulch as using ranonal versus emotional appeals, increasing involvement levels, or even getling
onsumers to evaluate a think-type product on the basis of feclings.
O.11.Explain the cognitive response approach to advertising and marketing communication.
Q.11
Or
Write a cognitive processing communications.
brief note
on of
Ans. One of the most widely u_ed methods for examining consumers cognitive processing
of advertising messages is assessment of their cognitive responses, the thoughts that occur
ho them while reading, viewing and hearing a communication. These thoughts are generally
measured by having consumers write down or verbally
report their reactions toa message.
The cognitive response approach has been widely used inrescarch by both academicians and
advertising practitioners. lts focus has been to determine the types of respornses evoked by
an advertising message and how these responses relate to attitudes towards the ad, brand
and For example, Feviquiek has always come up with innovative
atitudes purchase intentions.
ads and has evoked responses from consumers.
The model given below depicts the three basic categories of cognitive responses researchers
have identified-Product/Message, Source oriented and Ad execution thoughts, and how they
to attitudes and intentions.
may relate
Coguitive Responses Attitudes Purchase Intent

Product/ Brand
Message Atitudes
Thoughts
Exposure Source
Purchase
to Oriented
Advertisement Intention
Thoughts
Attitude
Ad Execution| towards the
Thoughts Advertisement
Q. 12. Explain the Elaboration Likelihood Model (ELM) of marketing communication and
advertising8
Ans. Elaboration Likelihood Model (ELM) describes the differences in the way consumers
process and respond to persuasive messages. According to this model, the attitude formation
or change process depends on the amount and nature of elaboration or processing of relevant
information that occurs in response to a persuasive message. The ELM shows that elaboration

likelihoodis a function oftwo elements-motivationand ability to process the message.


Motivation to process the message depends on such factors, as involvement, personal
relevance and individuals needs and arousal levels.
Ability to process the message depends on_ the individua>'s knowledge, intellectual
capacity and opportunity to process the message. For exan1ple, an individual viewing a funny
advertisement or an ad containing a beautiful and attractive model may be distracted from
processing the information about the product.
The Elaboration Likelihood Model ha_ important implications for marketing communications,
particularly with respect to involvement. For example, in case the involvement level of customers
in the target audience is high, an ad ar sales presentation must contain strong arguments that
are difficult for the recipient of the message to retfute or counter-argue. In case the involvement
level of the target audience is low, peripheral cues may be more important as compared to
detailed message arguments. ELM showed that the ettectiveness of a celebrity endorser in an

adhaddepends onthe receiver's involvement level. When involvement is low, a celebrity endorser
a significant effect on attitudes.
13. Write a note on audience selection?
Ans. Audience selection. Audience means total number of people who may receive an
UNIVERSITY SERIES
1DELIII
Shiv Das
2
and is conSidered
in advertising
Audience selection
is very important
dvertising message. in a specific age, income, educational
a nmedia plan. It gonsists of people one must
bcar
in
at
the quantit
vehicle activating choosing the media,
or meala Would identify
While
social amd unit group. Choice
cupational, to precision.
a laceless nmass of people. They are definable marrica, unmarrieg,2. Ps
larget is
never
young,
it., young, oll, very
vew their psyehograylic profile
Keep n can be a wastefujmarket
etind elc. an advertising campaign
ol the larget audiee, their 1deal cUstomers and
ma
out clear prlure always aim for lhe best malch between each audienceoups
Companies for
cavour. vehicle has to be implemented
An appopriate cach audience. In thee inea
n e l i e T subjxt. also have lo be
determined for
pienenlaton tming and budgel has to be involved according
to the marketi
of the company, a message
munaation process audience proiling questionnaire
the use of larget 3. BeF
of the target audience.(With will be
yuirements characteristics best various
demographic and psychographiccommunication venicies D a s e d on Consu
ktown of audience'scan appropriate
to marketer
the and he select the mosl atitude-
audiences preferred sources for communicalion.)
believed to be moderated by audience Behavio
of advertising message is widely
he ettectiveness megla and onsum
very in1portant asof it can suggest appropriate
involvement. Audience analysis isand The
prOcess pehavio-
impact. It is is the basic objective-setting process.
primary step
potential
of abjective-setting intimately connected with that of selecting a target segment and mayOT mar
hat them
relevant the
involve substitute
Q. 14. Write a brief
are
communication
that note on target audience task. of advertising and marketing na pas
to
in the context
State the ampai
factors determining target audience. of a publication or other message.*: Gec
the
audienceis intended audience readership
or
Atargetand advertising it is a particular group of consumers within the predetermined
In Ans.
marketing E
target market, identified as the target or recipients for a particular advertisement or message. en
Businesses that have a wide target market will focus on a specific target audience for certain n
to send. For a advertisement aims at children and their mothers instead
example, toy
messages
of the entire market. A target audience is formed from the same factors as a target market but
cons
it is more specific and is susceptible to influence from other factorS. A business must identity heir pu
and understand its target audience if their marketing campaign is to be successful. It allows
the business to craft their goods and services according to the needs and wants of customers omplet
2style
It further helps the firm in maximising its sales, revenue and profits.
Q. 15
A successful marketing and advertising campaign connects with consumers on a personalAns.
level, which will help the business to develop long-term relationship with customers. Since all sually
the consumers are not the same hence determining the target audience or audience selection udienc
is key to reaching the loyaland high profitcustomers,and help ensure a return oninvestmentfother
To determine the target audience, the business must first identity what problem their good ositivel
or service solves or what need or want it fulills. Th problem must be, one that consumers hrough
are aware of and thus will be interested in pursuing a solution. For example, a problem can be reate a
lack of availability of cheap heaters in the winter season or lack of availability of cheap air-uge rol
conditioners in the summer season. A business can enter into a market by offering low price A Tar
heaters to the consumers in the winter season or by offering low priced air conditioners in eeds o
Summer season. The problem that the business solves can be identified by searching for similar arketu
businesses or business ideas. pmpan
n case the searchis unsuccessful, there remains to be a problem that the business can solve. tivities
The business must determine what kind of . 16-
are the people
they identified. facing problem 1hisvertis-
is based on consumer's demographic, psychographic, geographic information and behavioural
information.
1. Discu
Demographic information. It involves
statistical aspects of consumrs like gender,dvertis
ethnicity, income, qualification and marital status. Demographic information is important to Ans.F
the business.as it gives a
to aim its
basic background of the customers whom the business is intending s mark
on
marketing campaign. This helps them to judge on a basic level how to
effectively with their target audience. Demographics are important because communicat eriod o
foundation of who the business will be they proV1ae t eser
targeting. Demographics
that does not require in-depth arnalysis to provide an
is statistical information
answer. Hence a business would uSE kivertise
UNIT I: Introduction to Advertising 13

statistical approach to
This method will provide
a
collection.
quantitative methods of data
identifying the target audience.
psychological and anthropological
2. Psychographic information. It
is the
use of sociological,
as well as consumer sell
behaviour, style of living
and concept to determine how different
factors
about philosophy, a person or
product. Psychographic
market segment groups make decisions of the consumer
information can be utilised by the business lo gain a
deeper understanding
Things
groups they farget, by anilysing he
intend to more intimate details of their preBerences.
the business to create a
interests, hobbies and lifestyle will all be filtered by
like financials, the business through a
that will to ihe product and will connect with
target audience be open
aimed at thhem.
marketing campaign Consumer behaviour is lhe purchase decision process. There are

3.Behavioural infornmation.
various factors that intiluence consumer's purchase decision like their responses and attitudes.
the business, which in turn affects their
Consumer's behaviour is
attitudes towards brands and
affected
by messages sent by
products and ultimately what products they choose to purchase.
modern
Behavioural trends could include online purchasingmust instcad of in-store purchasing or
consumerS a new
purchasing
Business
smartphone. segment of c o n s u r n e r s whose
selecta
be the intended audience
behaviour aligns with the functionality and purpose of he product to
corisumers can be identified by businesses as they
will indicate
for marketing campaign. Target interests, hobbies
there 1s tor the product by their behavioural signals. Their
and a demand
that past purchase activity provicdes a plattorm on which the business can base their marketing

campaign. is vital to the


and
4.Geographic information. It
is essentially where the customer is located
customers located in
their audience. This is because
business when they are determining target
going to are things
encounter different that influence their buying
diferent geographic areas
decisions. These may include number of factors like resources, cultures and climates. For exanple
city with
a city or area with high population of children
will encounter high toy sales whereas a

high population ofold people will encounter high sale of medicines.Each country ora region
has consumers of the same demographic but due to the cultural influence of geographical area,
their purchase decisions are different. For example, a male aged 4045 living in U.S.A will have

from male of living in India. This difference in the


completely ditferent Iifestyle a same age
lifestyle bring changes in their buying behaviour.
Q.15. Distinguish between target audience and target market.
Ans. A Tasget audience is generally associated with a business marketing message which
usually highights key advantages and benefits of a business, product or service. A target
audience usually consist of company employees, society as a whole, media officials or a variety
of other gTOups. Target audience 1s defined as a group that has significant potential to respond
positively to a brand message. This group being the intended audience is usually targeted
through particular marketing communication channels like advertising, which then- aims to
create a positive interaction towards the brand. If this is successful the audience will play a
huge role in influencing other potential customers to purchase the product or service.
A Target market on the other hand is a selected group of consumers, who share common
needs or Characteristics. Often these characteristics can be segmented_inta_tour_ditterant
marketing groups being geographic, demographic psychographic_or bebavioural. Once
company has detined their target market they Will am their procucts, Services and markethng
a

activities towards these consumers in a way that will persuacde them to buy the product or service.
Q 16. What do you understand by advertising budget? Explain the factors influencing
advertising budget of a company.
Or
Discuss various factors that are to be taken into consideration while deciding the
advertising budget. 2016
Ans. Advertising budget refers to the money a company is willing to set aside to accomplish
its
marketing objectives. Ttis an estimation of company's promotional expenditures overa
a
period of time,. An advertising budget is the money that a company keeps with itself in the form
ot reserve or provision tor the purpose of achieving its marketing objectives. In other words,
advert~ising budget is the amount of money which can be or has to be spent on advertising of
SERIES
14 Shiv Das DELI II UNIVERSITY
the product to promote it, reach the target consumers and make the sales chart to go on

reasonable profits to the company.


upper side and yieldthe or a company, one
has to
take
5etore finalizing advertising budget of an organisation
conditions which will have an impact on t
unfavourable market
look on the favourable and
advertising budget. consideration while preparing
an
advertísing budget
Factors fo be takenofinto
the advertisement. Frequency of
the advertisement means the numbe
Frequency
0 of times advertisement has been shown with the description of the product or servi
in the granted time slots. In case a company needs more advertising trequency for i
will have to increase its advertising budget.
the clutter.
product, then and
() Competition companyThe companies can have large number of competitors for i
product. Moreover there are large number of advertisements shown which is called
clutter. The company has to then increase their advertising budget.
(n) Market share. In order to get a good market share in comparison to their competitors
the company should have a better product in terms of quality, uniqueness, demand
and catchy advertisements with resultant response of the customers. This can only b

achieved by a firm when its advertisement budget is high.


( ) Product life cycle stage. In case the company is new or if the product is in it
to
introductory stage, then the company has to keep the budget high make place i
the market with the existing players and to have frequent advertisements. As the time
passes on and product becomes older, the advertising budget can come down as the

the product does not need frequent advertising


() Company situation. Several company and product-related factors affect the ad budge
as well. A new company may invest more initialy than an established business
Similar size to attract a customer base or introduce new products. Companies wit
more expensive or highly differentiated products may also have higher budgets tha
those with price-driven products because of the greater need to sell benefits and
value. Larger market sizes and more competitors to deal with can also contribut
to higher ad budgets, because the business has to reach more people and compe ac
against more companies or products.
(on) Product substitutability. Brands in a commodity class like cigarettes, soft drinks and
liquor require heavy advertising to establish a differential image: Advertising is als
important when a brand can offer unique physical benefits or feafures.
es
Q17. Explain how stages in the produet life cyele infhuence the advertisement budget.
fo
Ans. Advertisement requirements are different for different product life cycle stages a
t
mentioned belowr a
Introduction stage. New products typically receive large advertising budgets to buil
awareness for early adopters and trade.
() Growth stage. The consumer awareness spread in mass market helps to general
consumer trial and further sales.
(i) Maturity stage. At this stage advertisements must create differentiations in bran
positioning through different perspectives like benefits, application, price etc. Establishe
brands generally are supported with lower advertising budgets as a ratio of sales. Ce

(iv) Decline stage. At this stage the budget must be reduced to the level needed to retast
loyal customers only.
Q.18. Explain the various methods for setting up and preparation of advertising budg d
Also, discuss their merits and limitations.
Or
Explain any two methods of allocating the advertising budget. 20 C
Ans. There are various methods of setting up an advertising budget. The choice of the mo
suitable method of setting an advertising budget depends upon the internal situation of t
organisation. Every method has its own merits, demerits and applicability
Methods of preparing advertising budget:
1. Percentage of Sales method., Under this method, the amount of advertising is decid
on the basis of sales. This method follows
advertising budget as specific percentage ot sa
UNIT I: Introduction to Advertising
5
The sales can be current or anticipated. Often past sales are also taken into consideration. For
ke. example, the last year sales were 5 crore and the company spent R5,00,000 for advertising.
Hence the company has spent 1% of sales in the last year on advertising expenditure.
Usually companies following this method have the tendlency to maintain certain per
cent of sales as ad
budget. Based upon the past, current and the expected sales, a company
determines the advertising budget. This method assumes that sales follow advertising efforts
and expenditure. This method is also based on the assumption that there is positive correlation
between sales and advertising. Many
adverlising experls believe that it is not a scientific
method to decide on advertising budget.
Merits of percentage of sales method:
l ed -

Since this method is based


against profits earned through sales.
on sales volume, hence, cost of advertising can be offset

It creates
tors, -

unit.
a direct relationship between promotional costs, selling price and profits per
\and It
De
-

encourages
organisation to constantly achieve its sales target.
an
-

All firms in the


industry spend approximately the same percentage of sales for
is advertising, Hence thus method maintains competitive
Demerits of sales percentage method: parity.
It is very difficult to decide the
me appropriate
percentage of sales as there
guidelines for this method. Thus this method lacks scientific base.
are no
specific
the
Since long-term sales forecasting is
very difficult hence a firm cannot plan for long-
term with the help of this method.
dget It
ignores other objecives of advertising. This method gives priority to sales
Needs and only.
with
objectives are not taken into consideration under this method.
This method of advertising
han This
budget is quite inflexible.
method does
not take into consideration the
and This method is based
-
product life cycle stage.
Dute
on a
false
2. Objectives and Task method. This assumption that only advertising affects sales.
method is considered most
pete advertising budget by.a company. Under this method appropriate for
determining
envirónment is taken into consideration. This method company's requirement and its
own
takes into consideration the
and three
aspects-() Objectives, (i) Task needed to achieve these objectives and (in)following
Cost of
also performing the task. Thus, under this method a manager develops his
defining specific objectives, determining the task that must be pertormedadvertising budget by
to achieve them and
estimating the costs of pertorming the task.
for The sum of these costs is the proposed amount
advertisingbudget. This method is based on the relationship between the
the task to achieve these objectives and
objectives. This method considers the costs.of various
uild activities to be performed to achieve advertising
marketing objectives.
Advertising budget under the objectives and task method is set the basis of the
on
company wants to achieve and in what way it wants the objectives a
is objectives to be
achieved. This method
practically applicable and is
logically consistent for all
on actual needs of the companies, The method emphasizes
company. It is considered as a scientific method to set advertisement
shed
budget
3. Competitive Parity method. Under this method, a takes into
compelitor's advertising activities and costs for setting company consideration the
tain strategy adopted by the competitors forms the advertising
basis of
budget. The
advertising
company. Thus under this method very advertising budget fixed by a
competitive factors are given utmost importance while
deciding the advertising budget. For exanple, if a close
competitor is
sales on
advertising the company will spend more or less, the samespending per cent
around 5% of net
for
Thus a company follows market leaders and healthy advertising.
OU Many advertising experts believe that this method competitors under
should not
this method.
companies differ significantly from the competitors in terms ot product be followed blindly as
th ment
philosophy, sales, objectives, expenses, image and promotional means. characteristics, manage-
a It is advisable for
company adjust advertising budget as per the
to its
Limitations of competitive parity method: company's internal and external situation.
This method cannot be used in case of new
-
It is difficult to ascertain the stage
products.
of
al competitors product in the product life cycle.
UNIVERSITY SERIES
Shiv Das DELHI
6
challenges, financial
from each other
in terms of sales, protits,
Companies differ blindly.
cannot be followed
etc. Hence this method There are various
other factors
strength factor that influences sales.
Advertising
the
is not only
influencing sales of an organisation.
difficult to follow when there are large number of
This method becomes very
competitors in the market. are no competitors.
when there
method cannot be used by a company
This leader,
method is not applicable
This
to
a market mnethod in which advertising
Available method. This is a simple
4. Affordable or Fund
capacity to spend. It is on the
based concept that
the basis of company's
budgets a r e prepared on
capacity. ompany having
a
sound financial
its
a shoukd spend on advertising as per organisations spénd
company on the other hand financially weaker
more on advertising,
position spends
this method a company allocates funds tor
advertising only after
less on advertising. Under In case funds
all the expenses. Advertising budget is treated as
the itTesidual decision. advertising.
meeting on advertising operates without otherwise
are available spends
the company basis of advertising budget
on advertising forms the very
Hence a company's capacity to spend
under this method.
or fund available
method:
Limitations
into
of afordable
consideration the role or need of advertising in the
The method does not take
-

competitive market environment.


since there is no guarantee that the
It leads to uncertain planning
in the long run

company will spend for advertising.


takes into consideration the financial position of the company. All
-

This method only


other factorsinfluencing advertising are ignored under this method.
- As per this methoda company should not spend beyond its capacity on advertising-
method.
amount of advertising under this
There can be partiality in deciding the
experts are asked
-

both internal and external


5. Expert Opinion method. Under this method, on the basis
to estimate the amount to be spent
for advertisement for a given period. Experts
determine the amount for advertising. Experts supply
their estimate
of
their experience can executives like general manager,
individualy or collectively. Internal experts
include company's the
marketing manager, advertising manager, sales manager, distribution manager etc. On
dealers, suppliers, distributors
other hand, external experts involve marketing consultants,
advertising agencies, trade
associations and other professionals related to the field. Advertising
reliable. These experts
is more neutral and hence is more
budget suggested by external experts on how much a company should spend on
consider overall situation and give their opinion

advertising method
Merits of expert opinion in this method, the estimates tend to
various executives and experts are involved
-Since
be more balanced.
- Since internal executives are very familiar with company's strengths and weaknesses,
the budget prepared with the help of this method is more accurate and realistic.
- External experts are more neutral to the organisation and haye the ability to prepare

and suggest accurate advertising budgets.


Demerits of expert opinion method:
- It is not a scientific method of advertising budget estimation.
- It may become difficult to prepare final budget estimates as there are many experts
involved.
-When more and more internal experts are involved it may result in contlicts ana
disputes within the organisation.
-
There can be possibility of prejudice or bias under this method.
-
All types of opinions whether they are right or wrong are given equal importance
6. Other Common methods.
() Arbitrary Allocation. Under this method, budget is determined by managementsolely
This method is based on feelings and intuitions of management. The determination
of budget depends upon psychological and economic build up of the people in tne
management and not on the market needs. This method has the following limitations
UNIT I: Introduction to Advertising 17
- There is no systematic thinking under this method.
There are no objectives of budget.
The concept and purpose of advertising and promotion is ignored.
Thus the wish and willingness of manager decides the amount of advertising budget
under this method. There are many small and big companies that set their budget in
this manner.
( Return on Investment (ROT). In this method advertising and promotions are
considered investments like plant, investments and equipment. In other words,
advertisements lead to certain returns. Like other aspects of the firm's efforts,
ROI method is
advertising and promotion are expected to earn a certain return.
considered as an ideal method of setting budget by many advertising experts. But in
actual life situation it is very difficult to exactly assess the returns provided by the
be the basis for evaluation.
promotional eforts at least as long as sales continue to
(it) Vidale and Wolfe's model. This model calls for larger advertising budget, as it
believes that higher the sales response rate, higher the sales decay rate, i.e., the rate
at which customers forget the advertising and brand and higher the untapped sales
potential. This model leaves out other important factors like the rate of competitivve
advertising and the effectiveness of company's ads.
execútives usually blend some
(iv) The Compromise model. In actual practice, marketing
well accepted methods and determine a compromise budget. Such an approach gives
answers to the following questions by logically averaging different methods:
Who are the target audience?
- What is the size of audience and location?
What are the media available for advertising?
Which media combination is suitable?

What kind of campaign is required?


- What frequency of advertisement is needed?
control method for setting advertising
() John Little model. This method is an adaptive at
a lower rate in test markets and
at
budget. Under this method company spends information on the average sales
a rate in other markets. This method yields
higherby low, medium and high rates of advertising that can be used to update
created
function. The updated function can be used
the parameters of the sales response is
advertising
the best rate for the next period. If such an experiment
determine
to
expenditure will closely track optimal advertising expenditure.
repeated, advertising
companies, a total amount is decided as
(vi) Total Group budget. In case of multi-product a share as per their
advertising expenditure and each strategic
business unit receives
som amount for
corporate group
needs. This method helps the firm segregateto
of the organisation.
advertising for building the image
Market research gives advertising expenses, market response
(vii) Operational modelling. the modelling is done to explain the budget.
and sales per advertising figures and
several factors in formulating
method takes into consideration
(vii) Composite model. This indices like firm's past sales,. future
sales
the advertising budget which include of
market environment, sales personnel, seasonality
projection, production capacity, media scenario and changing media
the market, regional considerations, changing and
trends and outcomes of advertising
market
impact on the target market segment,
marketing8 to advertisement budgeting. As per
this approach
(ix) Incremental approach
concept or
to the extent where the last
advertisers keep on inçreasing the advertisement budget additional
to the net profit contribution by the
unit spent on advertising is equal
viewpoint this approach
sales generated from the promotion. From economics
Under this approach, advertisement
of marginality.
is considered as the concept
where there is no further scope of increasing
expenditure is carried on to that point on advertising. Moreover
the incremental revenue from the incremental expenditure media and
should be apportioned among various
the total advertisement budget
product lines until marginal returns are equal.
Unit
Media Decisions

the various
media?
Discuss
yp
by advertising of advertising me
of various types
understand
What do you demerits

promotional message
and
Q. 1. Discuss the merits
by which
advertising media. to advertising veh
means
various
to
Advertising
media relers
and pictures.
It relers
words, s1ecch
general public. In si
Ans.
the
to the public using to
mnicaled their promotional messages which advertisine
media channels through
bylo c o n v e y
markelers
that ane used lhe various
media refers to
communicat
content that is
woris, advertising media is used for showcasing promotional etc.
Advertising meda
edia
done. Advetising TV, radio,
online, outdoor
V a r i o u s torms
like lext, speech, images, their goOds
and
services t
can adverlise
channels through
which conmpanies through which
teters to the
media c a n be
defined as the
means
or vehicles
customers. Advertising c u s t o m e r s to intluence their
behaviour,
rach his message to prospective about goods
and
services
advertiser communicates m e a n s whereby
markeler tells the
consumers

includes the physical and s e r v i c e s :


used by the marketers to
advertise their goods commercial
used for the purpose of slogans,
media
ypes ofMedia. It is also known as media.
print It is widely
Press the help or charts,
. number of people with
dvertising.It addressing large
helps in
statements etc. It is
used for advertising
figures, pictures, drawings, comparative magazines and
statements, and colorful manner. It mainly
includes newspapers,
the products in an artful
other publications.
advertisers to informa large number of
people
1. popular medium used by
Newspapers. It is a
issued weekly, daily or
on monthly
in various languages and are
ewspapers are published national. The company may take
into consideration
can be local, regional
or
basis.
Newspapers their advertisements in newspapers.
Circulation, language
various
tactors before publishingquantity, price of ad, space etc. are some tactors that influene
coverage, printing
8eographical
the choice of newspapers as a source of advertisin8 meala.
Merits of newspapers as a tool of advertising media:
t is a source for mass communication.

of can be addressed through newspapers.


(") Large number people of
(1i) Advertisers convey their message quickly
can help newspapers. with the
of the newspapers.
(iv) Advertisers may enjoy the benefits of the credibility
is suitable for almost all types of products.
(v) Advertising through newspapers
of selling.
It the salesmen and dealers in the process
(vi) helps
source ot advertising.
(vii) Tt is a
relatively inexpensive
medium to access the target market.
(vin) It is an easy and simple
(x) It is a more flexible advertising tool as advertisers can change timings, languages
etc. as their needs.
regions per
The effect of can be
(x) Tt helps in measuring the response immediately. advertising
assessed easily.
Demerits of advertising as a source of advertising nmedia:
() Newspapers have a shorter life span.
(1) Most of the newspapers advertisements are ignored by the readers.
(i) The value of adverlisements is greatly iníluernced by the quality of paper and printing
(10) It is an ordinary source of advertising. It is not impressive as compared to other torns
of print media are like periodicals and magazines.
(o) Jt is not suitable when products require demonstration and installation.
18
UNIT I1: Media Decisions 19

number of customers are limited.


(vi)Tt can be an expensive affair when
lo be bought by the customers. Hence, it is not a cost free
(ii) Newspapers are suppose
medium.
2. Magazines. Magazines are another common and widely used advertising medium.
Consumers use magazines for the purpose ot intormation and entertainment. They are usually

published on weekly, fortnightly, monthiy, quarlerly, nal-ycariy or


annuai basis.
They are also
published by religious
and commercial
and
social organisations, colleges, schools, governments, professional
assOciations. They can De classitied in torms ot age, industry, profession,
bought by automobile lovers.
entertainment ete. Forisexample, Overarive is1s popular magazine
a
housewves,
Similarly, Grilishoblha magazine which very popular among
a

Merits of magazines as a source of advertising media:


() They have a long life. They can be referred and repeated by many
users.

in magazines is more likely to be read, considered and reacted


() Advertising message
y the users.
(ii) The quality of paper used in printing. and publishing is far more better as compared
o newspapers.
(iv) Magazines can be useful in targeting special groups of customers. For example,
children, women, protessionals etc.
() It is a credible and prestigious tool to send advertising message.
(vi) It is a texible and elastic tool of advertising
Demerits of magazines as a tool of advertising media:
) Many magazines have limited circulation. Hence they may not help in targeting large

number of customers.
(i)Since magazines are publishedon weekty,monthiy or quarterly basis hence it becomes
difficult for advertisers to maintain continuity or consistency
(i) Magazines may not help in conveying large adverisements as most ot them are

usually small in size.


iv) Magazine is an expensive tool of advertisement as compared to newspapers. Even
from the point of view of customers, it is an expensive source of information and

advertisement
() An advertiser has to send an advertising copy and money in advance.
3.Other print media. It includes books, notebooks, reports, directories, bus or railway tickets
and timetables, professional and community directories, publications by schools, colleges,
universities, local bodies, companies, 8overnments and cooperative societies. Such media
is generally preferred by local manufacturers, professionals, dealers, retailers etc. Selective
advertisements are possible through this media. lt is a relatively inexpensive source ot
advertising media. It has long life compared to magazines and newspapers.
II. Direct or Mail advertising. It is à form of advertising in which the message is directed
to specific individuals directly by the advertiser. 1his medium includes writen, printed or
processed message delivered directly to the selected buyers, It helps in appealing to the target
market directly. In reality this source is not stuitable for a large number ot customers. 1his type
of advertisement is mostly sent personally or by post and courier services. Now-a-days fax,
e-mail, SMS, etc. are popular modes to send direct mail on a limited scale.

Following are some common methods for direct adoertising:


(9 Sales Letters. In this method a frm directly sends a letter to the customers. Such
letters contain message, product description, special offers etc. Often fully addressed
and duly stamped reply envelope is also sent to get response. For sending sales letters
different methods are used like courier services, paid persons or postal services.
(i) Fax. Fax machines are used by advertisers to send invitations, catalogues and
information about new product. Fax is now-a-days
used
tor ditterent purposes. With
the help of fax an advertiser can send words, pictures, tables, charts, 5ymbols etc t
is generally used when customers are limited in number and is normally applied for
ndustrial products.
(i) E-mail. Now-a-days e-mail is a popular tool used by advertisers for sending messages.
Advertisers use this tool to get in touch with special customers. There are various
messenger services used by advertisers like Gmail, Yahoo, Hotmail, MSN Messenger, ebc.
DELHI UNIVERSITY SERIES
Shiv Das
customers,
Cards. messages, acknowiedge orders, remind be plain,
They a r e uscd to send preciselist
or lo
make special oters. Lards can
nswer enquires, update mailing in greetings or Dusiness
lorms owith
r
letters.
Colourcd,
mullifold, single fold
or can
be Ihe
company
lo establish relations the customers.
() Greetings. t is a popularofway
customers sends greccting cards
on
arerent events and
naving up-to-date data or slogan can be sent by an
picture ol a product
esions, A precise message,
alvertiser along wath greetng Don
s1aes. They can

r c u l a r s and
leaflets. Leatlels are typed or printed on one or
special eatures of
Circulars ant leallels involve description or
Coioured paprs,
organisations send circulars
or
leallets
on
regular basis.
e i s . Many business and brochures. They contain important intormation
booklets
(1) Catalogues, folders, in two wheelers,
electrical appliances or
aare
wWIdely
used
by companies dealing
an
other lechnical products.
companies offer calenders
and diaries. Oflen
specially prepared
or diaries
)Calenders containing their names,
of cost to customers.and dealers,
s neir needs, ree of the products. As compared
to
calenders
Drand names, slogans or pictures
bols,
duries are-more intorative and expensive.
a Others. Other direct or mail advertising includes: pamphlels, story books, articles,
Data cards, sanmples ana Bts.
cartoons, jokes, Short Message Service (SMS),
Merits of direct or nail advertisiig
t 18 a very ettective tool of advertising media as it involves a direct and personalised

() appeal to the
t is a more customers...
flexible advertising media tool as advertiser has more flexibility to adjust

with different types ot customers


filters,
booklets, circulars, brochures etc. are effective and have educative
() Catalogues,
value.
control over this advertising media. It can be sent as
() Advertiser can exercise complete
and when required by the advertiser.
to the customers.
main features of
() It helps in conveying theattention the product clearly
ot the customers.
tU) t helps grabbing the
in

Demerits of direct or mail advertising:


costs.
Since advertising message is conveyed personally, it involves more
(i) It involves a lot of clerical work. A special department is supposed to be established
for regular mailing
(ii) It is only useful when there are limited number of customers.
(iv) Often this method is ignored by the customers hence can result in waste ot time
money and efforts.
() This media is useful only when the target customers are educated and are able to
understand the intended message.
(o) Personalised appeal is difficult through this media as the company does not posses

()
complete intormation about its buyers.
ten
SMS, People
business hold negative
letters, attitude
etc. Thus, towardssuchdirect
they ignore typeadvertising
tactics like
of messages. e-mails
m. Outdoor media.
of
Many companies use outdoor advertising media
various tYpe tor
goods and services. It is heavily
used by manuacturers dealers, hotels, restaurantsand
coaching nstitutes, insurance companies, banks and railways etc. Soft drinks, cements
Cigarettes,
media.
petroleum products and cosmetic products are widely advertised through thi
Companies which do not want to heavily spend on television, radio and
use outdoor media for the
purpose of advertising. newspape
Following are the most commo outdoor advertising media:
() Banners. They
are used at
stage shows,
famous places
talent shows, annual functions of
like
cricket grounds, tournaments, fairs
seminars and conferences or public schools, colleges and universities
(i) Special signboards. These are used meetings.
at
railway and bus stations in the
city.
telecommunication
medium to create
brands like Jio, Airtel, Tata
brand awareness
Docomo, Vodafone, Idea, etc. Popula
use
th
regarding their offers and services.
UNIT II: Media Decisions

(i) Kiosk. These are triangle or square shaped boxes with written words or pictures on

them. They are usualuy nung on electricity or


teleplhone poles.
(iv) Bllboards. These are special boards prepared to advertise the products. Retailers,
dealers ctc. put these boards near their shops, stores and showrooms. Such boards
can also be seen on the upper sides of huge buildings.
(v) Handbils. These are a kind of leallels which are of small size. These are very common
and cheap. Advertisements are printed on small peces ot paper. A person is hired to distri
bute these on a hand to hand basis. Often they are distributed along with newspapers.
(vi) Station posters. These are multi-coloured printed posters with written message and
pictures. These are stuck on walls, benches, canteen walls, at bus stations, railway
stationsand airporis.
(oi) Sky writing. It is used in forcign countries and is not a very popular source of media
in India. It includes showing words, symbols, pictures etc. trough airplane gas,
balloon or helicopter.
(viä) Symbol of product. Large size products, picture of products or package of products
are used for advertising purpose. Various brands like TVS, Coca-cola, Maruti, Hero
Honda etc. use this medium.
es
ix) Neon signs, In this method neon tube lights are used for advertising. Words are
written by neon fubes and are placed on boards on buildings. Difterent colours are
used to make it atractive. This can be used only during the night. Coaching institutes,
business firms, restaurants, banks etc. often use neon signs to promote their brand

Just
and business.
()Other outdoor media. Following are other outdoor advertising media that are often

ive used by the marketers:


-Vehicle advertising -Posters and wall paintings
t as - Hoarding Trade fairs
Balloons etc.
Merits of outdoor
avertising
meuia:
() Such media do not need customer's special time and effort to watch and read.
of
) lt is capable attracting masses.
n)It is comparatively cheaper source of advertising media.
a
iv) 1t is capable of grabbing customer's attention as they are large in size.
hed () Itis generally placed at places where people can see and read it easily like gardens, stations,
tratic signals, metro stations, railway crossings, rOad crossings, corners, highways, etc.
(1)Some ot the medla under outdoor advertising like hoardings and billboards have
ne longer lite and they heip in advertising the same product for a long time. Such
advertisements remain berore the peopie tor a long pernod ot time.
to (vin) Acdvertiser can place various outdoor advertising media anywhere he likes. He can
use this media to convey words, slogans, description, symbols, pictures etc.
ess Demerits of outdoor media advertising
f t e n people ignore such type of media. Hence they do nót pay attntion to the
this media.
ails . message conveyed by the
advertiser through
(7) Various outdoor advertisements like hoardings. posters etc. are not movable. They
cannot be moved to other places.
nts (un) The efect of such advertisement cannot be measured or assessed.
I ) Use of such a media on a large scale is expensive.
his () Such media does not possess the beneits of voice and live moments like in the case
of radio and television.
v) They can lead to accidents and mishaps on the roads as they can be distracting.
V. Audio-visual media. It includes media that can be seen or heard, Now-a-days audio-
VISual media is very popular among advertisers. Marketers rely heavily on such media to
send their advertising messages. AgEressive audio-visual vehicles are used by advertisers to
prove their superiority over other homogeneous products available in the market. Audio-visual
media though being expensive is considered as the modern and prestigious media among all
la
the advertising media. Such media helps in promoting all types of goods and services. It mainly
his inchudes television, radio, short flms, internet, moving slides, film slides etc:
22 Shiv Das DELHI UNIVERSITY SERIES

1. Radio. It is the cheapest aucdio tool of advertising associated with mass communicat
theliteracy barriers. An advertiser with
the
help of tool can target the who
this
crosses The direct message is conveyed
to the desired groun
n or some particular regions. up of
listeners. Radio is often used by the government to covey mesg n e e with socal
and national interest. It includes messages regarding fomily planning Vinaton women's
education, ecological conservation ete. Insurance companies, banks, inancial institution
goods
advertise their advertisements Te
and services. These a
and manutacturers use radio to
oroadcasted on regional and national programmes on radio. ome Dusiness organisations
D r o a d c a s t their o w n p r o g r a m m e s o r events of social interest a n a ger t n e r g o 0 d s a n d services

advertised through local radio stations (FM radio).


Merits of radio as
an advertising medium:
R a d i o is an.effective tool of promotion and advertising
1) Due to advantage of audio, musical effects can be associated with meSsage or slogan.
(u) Wide coverage is provided by radio as it reaches almost every corner of the country
( ) t is economical as cost per person reached is very low.
() An advertiser can sponsor or buy ads on radio as per his needs and requirements.
(7) It is a more credible tool of advertising as no advertisement is broadcasted against

general interest of the public.


(n) Tt is a suitable tool for advertising low cost products like foods, drugs, cosmetics ete.
(viin) It promotes goodwill and prestige of an advertiser.
Demerits of radio as a tool of advertising media:
9 t can be a costly affair for small companies though cost per person reached is the

lowest.
(0) Company may have to compromise in terms of message, events or ime schedule.

(n) It is only suitable for conveying brier messages.


(io) It is not a suitable tool of media for certain products.
() Lot of advertisements on radio are totally ignored by the listeners as they use radio
for listening to their favourite programmes.
(Di') Radio has a temporary effect. Listeners hardly inquire about the products based on

radio advertising
(vi) Advertisers cannotmessage.
rely solely on radio advertisements, It can be used as supplementary
tool to other
advertising media.
2. Television (TV). Television now-a-days is excessively utilised by advertisers to promote di
their goods and services. It is a powerful medium for entertainment and advertisement. Most
of the houses have televisions and its viewership is on a massive scale. Thus, it alows anen
advertiser to use audio-visual effect for the purpose of reaching its customers. It has thew
to appeal to the people through the eye and the ear. Products can demonstrated and be
ability
explained. Written words, description and slogans can also be depicted with pictures, package
and brand names and or products. Now-a-days various companies use celetbrities like filmstars,
Cricketers, singers and other popular personalities to endorse their brands on television. For
Sachin Tendulkar has been associáted with television advertisement of Boost.
long
example,
Similarly, Amitabh Bachchan has been promoting Dabur Chyawanprash on television and
Salman Khan has been promotingThumbs up'.
Merits of television as a tool of advertising media:
() Advertisers can reach millions of people through television.
This medium allows the advertisers to use audio as well as visual medium. This can
()
create a long-term effect on the target market
(ii) Customers can be systematically guided through live demonstration.
(1) Television is a great source of entertainment for people of all age groups. Hence it
is an effective medium to popularise product within short period of time among a

ypes of customers.
() Television allows to demonstrate actual users of the product using the product anu
enjoying their benetits. This can create a very positive impact on the viewers. e
(vi) Advertising during particular events like films, cricket matches, film award functionsyscr
the create high degree of brand awareness.
popular serials or news can
UNIT IL: Media Decisions
n
le (vi) Latest animation and computer technology can be used to make television
Of advertisements more attractive and effective.
Clal (oii) Dsing popular personalities like ilm stars, cricketers and models for television
n's advertisements can increase the credibility of the brand.
of
ons Demerits television as a
tool of advertising media:
There are large number of advertisements on television. Hence viewers keep
dre
on changing channels to avoid seeing advertisements. Hence large number of
ons adverthsements are ignored by the viewers.
ces
(i) Television is the most expensive medium to advertise the product. Only financially
sound organisations can aftord this medium.
(ii) Lot of firms together sponsoT a programme on television. Moreover advertisements
of the lirms appear betore, after or in middle of the programmes. Thus there are a
5an, large number of companies broadcasting a large number of advertisements during
y. a particular programme. Hence the viewers do not carefully pay attentioni to all the
. advertisements.
(iv) People view television for the purpose of entertainment, for joy not for commercial
inst
value.
() Interest of the viewers may be affected adversely by frequent commercial breaks
etc. between an interesting programme. Hence viewers may feel irritated or disturbed.
This can create a negative attifude and approach towards television advertisements. .
(ui) Some viewers are of the view that advertisements create nuisance
the on television. They
are not instead
consumer centered
viewers consider
they are more
company centered. Hence such
.
advertisements a waste.
(vii) Credibility of television advertisements has always been in question due to
exaggeration. There is a large scale difterence between the actual use of products
and what is
shown on televisión. Exaggerated claimed
pertormance of the product
radio by a company through television advertisements acts as a demerit of television as an

O
advertising media.
3. Internet. With the advancement and
upgradation of technology internet has now become
a
popular audio-visual media tool for
advertising. Various companies have tried hard to
entary popularise their brands online. Some companies put their advertisements on their websites,
some buy web
pages of popular websites, Some companies place their advertising
mote directlyon different websites. message
Most and service through the internet. Due to
Internet
users can get the required intormation about the product-
ws ensure that they have an online
emergence of e-commerce and trade, many companies
an
presence. This is the reason why they develop their own
s the websites on the net. Various established
companies have put their information on the internet.
and Merits of intermet advertising:
CKage 0 Internet has high credibility and prestige.
() It provides a global reach to the business organisation.
stars,
n.For (iin) Advertisers can use muitiple effects to advertise their products on the net.
Boost. (io) Internet is most suitable when a business
groups of customers.
organisation wants to appeal to specific
and
Demerits of internet
advertising
Lnternet has limited uility. Not everyone has access to the internet.
( One has to log on to access a specific website. 1hus, it is not automatic.
1s c a n
07) Only few firms can use this tool of advertising.
) Many internet users totally ignore
advertisements on the net.
() It is a costly affair for both the company as well as the customers.
(n) Internet cannot be used solely by the
ence it needs the support of other
company to promote
its
goods and services. It
ng all advertising media tools like print media, radio, television
etc.
4.
ct and are
Moving
used for
slides. This is
mostly
used in urban for
the purpose of advertising. They
areas
commercial as well as non-commercial
In this media of
purpose.
nessages, product picture or logo of company move either advertising,
alternate or in one direction on the
ctions, SCreen
kept on private or public buildings. These slides
operated by electricity or battery.
are
UNIVERSITY
SERIES
Shiv Das
DELHI

slictes
located in
massively
also computer
bosed.
Such are the most effer
crosSings are among
slides are
NoW-a-days and
railway
Traffic poinis through vehicles,
ocalities and public places. and people passing MO
slides attract pedestrians
Places. Multi-coloured hapP
Merits of
moving l of pron
tool advertisin
of advertising.
change the
location of the
he
t
a
is cheaper
15 veryits
t
a

ot
llexible tool advertising.
The h r m c a n
slides book
even s ocontents os per its requirements. from
na as a urce of information a s
well
as entertainment. to th
(unt acts
(I0)It is very effective
lor
local advertising message. and corners.
custo
to the public places
(P)tprovides beauty
Demerits of moving slides
OP

the purpose of local advertising


I t is suitable only for
limited reach.
has difterent places
()t
(ii) It becomes a
costly affair when a firm wants to have such slides at
visual message. AUalo messages cannot be
(iv) This medium is able to transmit oniy
transmutted through this medium.
not suitable where live
demonstration is needed.
(o) This medium is
(vi) It is suitable only when short messages are transmitted.
It is not suitable
when e

messages.are 1ong A
firm can rea
5. Film Cinema. mainly includes cinema Aslides
or t and short films.
sufficient
number of people through thus medium.
dvertisements shown
a cinema hall are etc-

theatres or at different places with the help ot projectos. Pre


Short films are used by firms to promote
These
are films
their products. shown betore anc

during the interval. Many companies use short films through cinema houses. For example, Vi

turmeric cream is otten advertised in the form of short films at cinema halls. various
Slides are also used by firms to advertise their products in theatres. 1his medium is use
for both commercial and non-commercial ads. Slides include name of manufacturers, product
he
logo etc. which are shown in theatres. Such advertisements are presented in theatres before and

after the film or during the interval.


Merits of using film or cinema as an advertising media:
t
1s a iess costiy medium of advertising
audio-visual effect.
This medium provides the benefit of
(n) It can reach a large number of people by advertising slides and short films during th

interval
or before the beginning of hit movies.
(io) This medium is effective for both literate and iliterate people.
() In case of short films, live demonstration of products can be presented. Compared
TV
more information can be provided through short films.
Demerits film or cinema as a source of advertising media:
of
) Audience is more interested in watching the movie as compared to watchin
advertisements.
(i) It can be a costly tool of advertising. The preparation of short films and slides is moau
costly as compared to its presentation.
m) It has a limited coverage. Only those people are exposed to advertisements who a
movie-goers.
S u c h medium cannot be used in regions where there are no cinema halls.
sides and short films are not interesting they can be totally ignored by the publ
Q.2. Which advertising media,would you suggest for advértising the following produc
() Automobiles and (i) Books. Give reasons.
[20
Ans. () Automobiles. For
the purpose of
and Magazines should be used.
advertising automobiles-Television, Newspap
Television and newspapers have a mass reach. They
effectively used for the purpose of promoting automobiles. All the necessary can
information
be provided to the customers through these media of communication. TV is a very ettect
advertising media for automobile companies as it enables the marketers to showcase not On
the outside physical appearance of their
in the best possible manner.
product but also facilitates explaining of its fearu
25
Pula. UNTT I1: Media Decisions
the current
Moreover there specializea magazines
are
that
provide iniormaion regarding
be used for the purpose of
happenings of the automobile industry. These magazines can also
nromotion. Overdrive, Top gear, Wheels etc. are few examples ot such magazines.

book tairs can be used promoting


media for
suitable advertising Exhibitions
as a
(in Books. Exhibitions and
books. Exhibitions/Book
Fairs
have demonstration aspect of advertising range
levels. Latest catalogues must be sent
from a small
local level to national or
even international
of the "Direct Mailing method of approaching
to the selected prospects by taking advanlage Window
in specialized magazines is an effective mode of advertising,
customers. Book reviews
under the section of "Latest
to
display can also usea attract
be
customerS. shops can keep books
know is new in the market.
arrivals' so that customers what Give
Q. 3. Which advertising
media would you suggest for the following products?
answer.
reasons in support o your (i) Business School.
(Tourist Resort
Ans. () Advertising media for Tourist Resort. In order to promote a tourist resort-television
newspapers and agazines s o u d oe used. both television and newspapers have a mass reach

nd are a very effective medium of communication. All the necessary information about the
Waresort such as the location, packages and discount offers, etc. can be provided through these
medla or cOomn cao OEe, magaZines and joumals assoCiated with tourism can also
b e used to attract the attention of travellers. Nowadays resort booking, booking of travel tickets
a
haetc is mainly done through the intemet.
social
Hence it is important for a tourist
Youtube
resort to makeetc.
its
presence online. For this purpose, media, intermet advertising advertising
l m s a n d other modes ot online promotion can be used by the marketer.
(ii) Advertising media for Business Schools. In order to promote a busSiness school-print
media and electronuc media should be chosen. There are vaious newspapers and magaz1nes
is t h a t have a major slot for academic advertising. Moreover, the business school can take part
rodus in academic seminars, book tairs etc. to attract eligible students. Online advertising can also
ore h
ore a
e l p the business schools to reach their target audience. There are large number of educational
websites that are in direct contact with the students. Advertising on such sites can help the

business school to grab the attention of the students.


Q.4. Discuss the factors affecting the choice of appropriate advertising media.
Ans. There are various factors that infliuence the choice of a suitable advertising media:
1. Nature of Product. A product that is required by all promotes the use of mass media like
ingt
5 p r i n t , broadcast, outdoor advertising etc.A product that needs demonstration and installation
may need television tor the purpose of advertising and promotion. Print media or broadcast
media can be used for adveräsing industrial products. Socialy undesirable _products like
aredtobacco, liquor etc. cannot be advertised on radio, television and cinema screens. Thus the nature
of product direcetly intluernces the choice of suitable advertising media.
2., Potential Market. The main objective of advertising is to cary on the ad message to the
atchi proSpecis etectively and economically. While choosing a suitable advertising media an advertiser
may take various tactors into consideration like identification of potential market in terms of the
is mo number ot customers. geographic spread, income patterm, age group, tastes, likes and disikes
of the target market. For example, it target market consists of high income group, magazines
ho may be used tor promotion. In case local area is targeted by an advertiser, newspapers and
utdoor advertising may be used. Iliterate target market is generally approached through radio
and television by the advertiser.

duc
the 3. marketer
Distribution Srategy.the
also influence Distribution system andmedia.
choice of advertising the advertising coverage
If an adverfiser has developed by
a nation wide
network he may use national media for promotion. Similarly if the marketer has restricted
(201 nework that is limited to local area, he may use local or regional newspapers, television
an
Channels, radio stations etc. for the purpose of promotion.
Advertising Objectives. The main objective of advertising is to generate positive consumer
e a v o u r towards company's gods and services. The advertising objective may include to
ectuhave local, regional or national coverage to popularise the product or service offered by a
t may be used in siuations where an advertiser wants immediate
atu o oany.
action on Direct
part of advertising
the consumers. Similarly, 1f the objecive is to create a nationwide product
network an advertiser may use television and newspapers for promotion.
SERIES
Shiv Das DEIHI UNIVERSITY

of If attractive and colourful advertisements are required by


selling message.
.ype customers they may use magazines, television, DilDoards, bulletin
films,
advertisers to attract of greal concern
advertiser may opt tor newspa pers, radio,
b o a r d s etc. If timeline is a matter

Television is most appropriate


when demonstration is netded to promoe a product,
posters ete. is not for free. Hence coinpany s budget nas "10 De taken into
.
Budget. Advertising for a suitable media. A company may w a n t t0 aaverte ts products
consideration before opting it may opt for newspaper
or
rad10, >milarly, due to
but due to restricled budgel
on relevision a media like o u t d o o r advertising Thus
for cheaper advertising
Ower budget company may opt
financial resource constraints decide the choice of suitable media.
advertiser
may study the advertising strateBy tollowed by
.Competitive advertising. An taken into
the competitors is consideration
competitors. Otten the
media channels used by
the media.
tor
Mediaadvertising
particular
a
betore opting
8. Media availability. availability often inlluences the choice ol appropriate advertising

media. Most often the needed media is not available


to the advertiser.
An
advertiser may find
Thus non-
various mediums like radio, television etc. already booked by other advertisers.
t acts as an external
of
availability medium a new
poses in front of media planners.
challenge
a
restriction in choosing a suitable media for advertising
9. Characteristics of media. Each and every advertising media has different features and

differ from each other on the basis of coverage, ITequency, cost


characteristics. All types of media of the most expensive advertising medla which
exarmple, television is consideredlike one
as
etc. For media newspapers, magazines etc. are relatively cheaper.
a
has duevast toreach. Advertising
in the characters of various advertising mediums, an advertiser has
Thus
to
heterogeneity
choose that media which appropriately suits the needs and requirements of the company.

Q.5: Explain the role of DAGMAR model in setting advertising objective. 2015
Results.
Ans. DAGMAR. It means Defining Advertising Goals for 'Measured Advertising
but as.a specific effect om a
target
This approach
audience. defines an advertising goal not as a sales quota
In terms of the effect produced an advertisement can either make the consumer
aware of the existence of a product, provide the consumer with information about it, convince
the consumer ot the product s advantages over competitive ofterings, or actualy encourage the
consumer to purchase the product. The real objective of advertising is effective communication
between producers and consumers. The utimate purpose underlying all advertising is
'increased awareness". Effective advertising management requires the establishment of goals
as the first step. These goals will provide a basis for planning and evaluating advertising
efforts. The objectives can either be communication göals or sales goals. In a way, both are

complimentary.
Q.6. Critically examine the DAGMAR approach for setting advertising objectives. [2016
Ans. DAGMAR. Defining Advertising Goals for Measured Advertising Results. The
approach involves setting specific, measurable objectives for a campaign to determine if speciic
objectives can be met. Specifically DAGMAR seeks to communicate an advertising message
through tour steps:
() Awareness. Making the customer aware that the product or company exists.
Comprehension. Letting the consumer know what the product is used for.
(in) Conviction. Convincing the consumer to purchase the product.
io) Action. Getting the consumer to actually make the purchase.
This model is used to tum advertising objectives into specific measurable goals.
The four stages that a customer passes through before buying a product or service are
awareness, comprehension, conviction and action. The final part is to measure advertising
results by evaluating whether the goals are met or not. In order to establish advertising
objectives DAGMAR distinguishes 52 ad-goals that might be used with respect to a single ad
during one year s campaign for a product or a company's entire advertising philosophy.
The problems/imitations of DAGMAR:
() It is difficult to implement.
(i) It is very difficult to measure awareness attitude and brand comprehension.
ii). There are many casual factors besides
advertising that influence awareness
(iv) The model can inhibit the efforts of creative
people.
UNIT I: Media Decisions 27

()It is not applicable in all situations. In case of a low involvement product action may
precede attitude formation and comprehension due to impulsive buying.
Sales measure is the only relevant goal. There is no reason to spend huge funds on advertising
if it does not help to inçrease sales. If there is a flaw in sales mea_ure, communication objectives
are also planned.
Q.7. Task and Objective Method is considered to be the most scientific method of setting
the advertising budget. Do you agree? Explain.
Ans. Objective and Task method. It is "financing the objective and also as estimating the
task to be done. "Objectives are the advertiser's long-term marketing aims whereas "Task
is a short-term undertaking, usualy the next year's sales goals. The crux of the method lies
in defining these tasks and determining the type and quantity of advertising required. In
this method the amount to be spent on advertising is determined keeping in view the pre-
determined objective and task of advertising. 1his involves five steps:
) Define the objectives eg, the sales target to be achieved or market share, say 25%.
Gi) Outine the task, ie, the specific means and media of achieving the objective.
(ii) Estimate the cost of accomplishing the task.
T) Monitor to judge how well the objectives are being attaiíned.
() Re-evauate objectives and appropriations
The task approach replaces rüle of thumb, customary thinking by a more objective, imaginative
& realistic method of the budget making process of advertising.
Q. 8. Define onlineintermet advertising. State its advantages and disadvantages.
Ans. Internet or online advertising refers to the marketing strategy that involves the
of
use
the internet as medium to obtain website traffic and target and deliver marketing
a
messages to the right customers. UndeY such a marketing strategy internet is used as a main
medium to get in touch with the target audience. Under this marketing strategy intermet is
used for the purpose of delivering promotional marketing messages to consumers. It includes
e-mail marketing, search engine marketing, web banner advertising, mobile advertising etc.
Internet adverising is mainly concerned with use of internet as an advertising medium where
promotional messages appear on a computer or mobile screen. Internet advertising can be
custom-failored to matc user preferences. Internet advertising also gives advertisers the
oPportunity to precisely target an audience, enabling them to deliver advertisements that are
customised to each user's particular interests and tastes. Internet advertising differs from other
mediums by enabling consumers to directly interact with the advertisement. A consumer can
cick with his or her mouse on the advertisement for more information. He can buy the product
or
avail the services available online.
Importance of internet advertising
9 Cost efficiency. Advertising on internet is relatively more cost-efficient as compared
to traditional mass market and niche media. Internet ads are available 24 x 7 and
can be viewed by millions of people using an ad-placement service like Google's
Adwords. It can help a business to realise more significant cost savings.
(17) Target marketing Market segmentation and target marketing are more effective on
the internet as compared to any other advertising medium. Strategically placed web .
advertisements can achjeve 100 per cent views.
( ) Interactivity and feedback. lnternet facilitates true two-way communication in
advertising messages. By placing interactive ads on the net, marketers can utilise
surveys, comments and usage statistics to fine-tune their campaigns midstream and

maximise their effectiveness.


(U7) Captive audience. Internet advertisements are diticult to ignore by the target market
unlike radio and televi510n advertisements. For example, a banner ad on the side of
an intormative website remains in the visitors vision as long as he/she is reading the
website's information. Advertisements placed before streaming web videos cannot be
skipped while television ads can.
Advantages of internet/online advertising
9 Advertising on the intermet allows advertisers to reach significantly more people than
traditional advertising at a fraction of a cost
28
Shiv Das DELHI UNIVERSITY SERIES

0nternet advertising provides extensive coverage to the marketers. Internet provides


a giobal platform for marketers that allows them to reach massi've number of people
throughout the globe.
capacity to provide information on most internet companies is unrestricted. Business
oradvertising agency can provide the equivalent of thousands of pages of advertising
intormation and instructions, without having to worry every minute o the second
about the increase in advertising costs.
() Internet media has the right to change the function of information, companies can
make changes at any time as per the need of advertising intormation
() Internet advertising is capable to create customers for the business throughout the
globe.
(oi) It provides great degree of control to the marketers over their online advertising campaigns,
(vi) Online advertising can help the business to target right type of people or cuskomers,

Disadvantages of intenet/online advertising:


Large number of customers ignore theinternet
totally who advertisements present on the net.
regular basis.
on a
Oniy those people canbe targeted use

iin Intemet advertising requires high degree of presentation skills to attract the customers
(io) Mistrust of users to online shopping due to large number of scams, is another
limitation of online advertising.
() Due to advancement in technology competition in online selling has increased
to a large extent. Thus large scale competition in online buying has hampered the
effectiveness of internet advertising.
(oi) Due to large number of online advertisements the actual response from advertising
on the internet has drastically reduced.
(ii) Website downtime, lags in website or video loading and browser complications can
bring dowm the nymber of times consumers see online advertisements and how well
they see them.
(oii) Buying ad space online can be an expensive affair. A firm may have to spend a lot of
money to buy ad space online.
) Measuring effectiveness.of online advertising requires high degree of skills and
expertise.
) Click fraud is another limita tion of online advertising. If ad placement costs of a firm
rely on the number of clicks its messages receive, people can inflate the click rate and
dnve up the cost of the firm.
() here are large number of ethical and privacy concerns in online advertising. The
onlineadvertisements must comply with applicable laws that regulate truthfulness,
disclosure claims from unhappy customers etcC.
Q.9. Define media scheduling. Discuss the various types of media scheduling strategies.
Discuss the factors affecting media scheduling.
Ans. Media scheduling is one of the most important decisions in any advertising
Programme A firm should carefuly decide on media timing for a maximum market response
Media scheduling simply means the pattern of advertising timing, represented as plots on a
yearly flowchart. These plots indicate the pattern of scheduled times advertising must appear
to coincide with favourable
selling periods. In other words, it refers to the pattern of timing
of an advertising that is represented as plots on a flowchart on an annual basis. The plofs in
the flow chart indicate the pattern of
periods that matches with most suitable selling periods.
Media scheduling is a time-table that shows the time decision regarding advertising and the
duration decision. It indicates.the frequency to advertise the message through different media.
Following are the various types of media scheduling
1.
Macro
scheduling. involves allocating advertising expenditure
It and in frequency
to season or broad picture of business cycle. It is concerned with scheduling advertising n relation
relation to seasonal and business trends. The broad picture of seasonal
is taken
cycle cyclical trena
consideration. It is often followed
into for
products having fluctuating demand
throughout the year. Company spends on advertising as per the phase of the business cyce
the product is existi in. Under macro scheduling the following relationships are established:
-

Timing of advertising and consumer awareness.


UNIT I1: Media Decisions 9

- Consumer awareness and impact 1 sales.


- Sales awareness and impact on sales.
Advertising timing is adjusted as per lime gap cxisting between advertising and its impact.
Advertiser
product. has to decide on advertisingtime for different products as per the nature of the

2. Micro scheduling. It is concerned with allocating advertising expenditure and frequency


within a short period to obtain the maximum response or impact. In short it deals with how
to distribute advertising expenditure within the given time. For example, a company has
decided to advertise specitic message 40 times which requires 4,00,000 through daily regional
newspaper. The company has to decide on which days/weeks/months/seasons the 40 times
the advertisement is to be allocated.
Micro schednling may include the following alternative scheduling strategies:
) Continuous advertising. It involves advertising the message evenly throughout a
given period. For exanple, if company wants 52 television/radio spots, it will advertise
once in a week.

(Gi) Concentrated advertising. This scheduling involves giving all the advertisements in
a single period. Hence, concentrated advertising means to spend within one fight. It
is followed usually when product is sold in one season, event, festival or holiday. For
example, the company advertises 40 spots within four days during Diwali season, 10
times a day.
(Gi) Fighting advertising. Itinvolves giving advertisement at specific intervals. Company
under For
this strategy follows particular pattern.
a
example,
a company advertises for
some period followed by break of no advertisement followed by the second flight of
advertisement and likewise. Company dealing inseasonal or cyelical products adopt
this kind of scheduling strategy. Companies having limited advertising budget prefer
to
advertise during a specific season or festival only.
() Pulsing advertising. Such type of scheduling is the combination of both continuous
advertising at low-weight level, reinforced periodically by phases of heavier activity.
A company spends certain part of advertising funds for continuous advertising and
the remaining fund for fighting adverisement. For example, a company may give a
brief advertising message once in a day and its detailed advertisement appears for a
week regularly after two months. Such scheduling is usually adopted by companies
which are financially sound.
Following are the main factors that afect advertising scheduling
() Buyer turnover. It is concerned with the rate at which new buyers enter the market.
Usually buyer turnover and advertisement shares a direct relationship. It implies that
higher the buyer turnover higher will be the continuous advertising.
(i) Purchase frequency. It indicates the number of times during the specific period that
the average buyer buys the product. The common rule is, the higher the purchase
more continuous the advertisement will be.
frequency
n) Forgetting rate. It shows therate at which the buyer forgets the brand. Forgetting rate

andadvertising shares direct relationship. It means that higher the forgetting rate,
a

the continuous the advertisement should be.


more
( ) Financial soundness of Company. It is concerned with the capacity of the company
to spend for advertisement. Higher the ability to spend, the more continuous the
advertisement will be.
() Level of compétition. Intensity of competition in the market also influences
If is competition in the market the higher will
advertising scheduling. there intense
be the frequency of advertisements by the company.
.10. Write a brief note on interactive advertising and interactive media.
Or
State certain key ethical issues associated with interactive media/advertising
Interactive online or offline interactive media to communicate
Ans. advertising uses

and to promote products, brands, services etc. The main objective behind
consumers
eractive advertising is to achieve the advertising goals, L.e, to increase the sale of a good or
Service. Interactive advertising has the potential to decrease the losses associated with poorly
0 Shiv Das DELHI UNIVERSITY SERIES

coordinated advertising, to reduce the difficulties an clearly communicating O advertising

message and to help overcome new product hurdles. that


services on digital computer based systems
interactive media refers to products and content such as text, moving Be amation,
games. by
video actions
anduser's presenting
pond o the
video, audio Interactive media can Dbe defined 15sers.
as a methoa
Interactive
o Communication
works

in which the output from media comes from he nput rOOSe but the tne user's
u s e r 5 input
lnput adds
same purpoSe but
The media still has the
participation.
e user
interaction ands brings interesting features to the system io e t i n e media:
related with fnteractve e d
ethical issues that are
o some
g are key News
issues in media
aaverising. can
manipulation is one of the most important
News
be manipulated. with many other values
interactive media may conflict sensitive political or
Lruth shown through revelation of military
secrets and other
For exaniple, public interest,
government intormation.
as an element
of entertainment wnich is a legitimate
teractive
media may use fantasy use combinaion
or tantasy and
interactive media may
ot media content. Thus
goal
truth to attract the general public. interactive media, Journalistic
associated with
law is another issue
Contlict with the
of confidential
() over issues like protection
conflict with the law
and media ethics may
is also a key
used in interactive media
news sources.
of violence and strong language
()The depiction
iSsue taken
to be into consideration. with interactive media. It may negatively affect
is' another issue connected undesirable behaviour.
(1) Stereotypes of themselves or promote socially
people s perceptions of interactive
media.
Q.11. Discuss the advantages and disadvantages from products and
Ans. Interactive media is
a broad category that encompasses everything
services to technologies.
Advantages of interactive medi
is that it involves an element learning. Using of
() various benefit of interactive
Another interactive media toolsmedia
helps people gain knowledge about current aftairs.
For example, now-a-days interactive media is used to educate children in the language

they best understand.


communic tion. This form of communication
Interactive
(1) allows senders receivers dialogic
andpromotes
media to build long term trust and cooperation. "This plays a

critical role in
building relationships.
i ) Interactive medja helps in interactive advertising that is capable of generating direct

response. media enhances brand awareness and reach of a company. The visua
iv) Advertising

interactive
of an ad generate awarenesS about a
canaudience. Media buyers can select the right site or brand, product or need
() imagery
It helps in targeting the right,
site to reach the audience.
channel within a

Disadvantages of interactive media:


() One potential disadvantage of interactive media is that it can be intrusive. In some
countries and cities tor instance stores etc. use computer generated voices projected
out into the streets to try to lure customers into the stóre. Some people may classiry
this strategy a nuisance and a source of noise pollution.
7) One possible criticism of many forms of interactive media is that they are delicate
and prone to breaking. For example, mobile phones, computer monitors etc. are very
delicate and can
easily get broken if not handled carefully.
(ii) Using interactive media can be an expensive affair. A firmi has to monitor the channels
at all times to make sure it responds to both positive as well as negative contents.
(iv) There are lot of legal and regulatory restrictions in using interactive media to
promotional purposes.
() With interactive media there is always a risk that a brand can suffer from negative
comments and feedback.
Unit
Message Development II)
Q.1. Write a brief note on advertising creativity.
Or
Discuss the role of creativity in advertising.
Ans. Creativity is considered as the soul of advertising and branding. It gives life to messages
te about goods and services that may otherwise be boring or insignificant in the hearts and minds
of target customers. Creative advertising is more memorable, longer lasting, works with less
media spending and builds a fan community faster. Creativity is a form of divergent thinking
It is concerned with the ability to find unusual and not so obvious solutions to a problem.
a According to Stephan Vogel, 'Nothing is more efficient than creative advertising. Creative
advertising is more memorable and longer lasting. In the words of Werner & Peter Safert,
'Numerous laboratory experiments have found that creative messages get more attention and
lead to positive attitudes about the products being marketed but there is no firm evidence that
ect shows how those messages influence purchase behaviour
Due to the element of creativity many advertisers often turn to advertising agencies for the
design and development of companies and ads that can lead to tension regarding the influence
and of creativity. There are many reasons why creativity is important in advertising. Creativity
helps the advertisers in successfully grabBbing the attention of the target market. It creates
interest of the target market by establishing feelings of desire to bring about an action.
Importance of creativity in advertising
irs. - It is a pillar to build the marketing mix that involves personal selling, sales promotion,
direct marketing. public and
relations sponsorships.
It helps the customers in differentiating the products of a particular brand from other
tion similar products available in the market.
ys a It provides knowledge thereby stimulates thinking.
It can persuade the customers to buy the product by making the message more
rect relevant, meaningful and innovative.
- It helps the advertiser in creating loyal customers.

sual
eed.
-

-
It transforms boring messages to interesting advertisements.
Creative advertisements helps the advertisers in achieving their objectives.
or
Creativity increases the effectiveness of overall advertising efforts of an organisation.
Q.2. Discuss the elements of creativity in advertising.
Or
ome Discuss the elements of creativity used in different advertising medias.
cted Or
SSL) Discuss the elements of creativity used in the following advertising media:
(a) Print
icate (6) Radio
ves ) Television
Ans. Various elements of creativity
a r e used for preparing advertisements in order to make
nnel them more attractive and appealing. For example, use of colours by a firm in its advertisement
S. can have the following benefits:
a for increases the attention span of the consumer and the holding power of an

advertisenment.
- People are conditioned to colour stimuli.
at
31
UNIVERSITY
SERIES
Shiv Das IDELI
32
of tood.
look better. For example, in the case
Products

Creates moods.
Creates an image of prestige
Greater message recall.
to the success of
the advertisements
extremely important
of the basic theme is
stalisation used in advertising mrdia: h
elenents of creativity background or
setting
a r e the various
tOiovng form of visual appeal. No
T h e product alone.
It is the simplest itsel1.
than the product
prove to have
a powerful impact
is shown in
a setting
associated
with its
may setting. The product
The product with a

and usage. as it would be used by


satistying qualities product is demonstrated
The use of the
The product in use.

any consumer. the illustration of need.


users through
It aims at attracting to use the product
Dramatisation.

It involves showing the


customer
how
Explaining product usage. benefits.
details. Good for showing improved audience can make
Featuring product betore and ater pictures so that
Using
Comparison techniques.
omparisons. in strengthening
the headline through the visuals
Dramatise the headline. It helps
written word. main theme
etterts on the the headline is the
ideas. Under print advertising,
of attracting the attention
(a) Print advertising message. It performs the task
a powerful selling as a r o u n d 80% of the
appeal, it should be It is advisable to include
the brand n a m e
entire story. headline is the main
and should tell the attention, but the
than the headline. Visuals attract
readers read no further

componernt so it must be powertul. is advertising copy.


The body copy
Another element of creativity under print adyertising must be straight forward
News copy
delivers the selling message.
reinforces the headline and facts. Advertisers
should try not to
draw conclusions from the
can
while implied suggestions sell. Advertisers
should avoid answering competitive
use humorous copy as it does not always should be used positively.
Slogans
questions instead shouldpromote their own positives. answers to the following
radio and print media,
Wkile preparing advertising copy for
must be evaluated.
questions
For printed ads:
-
Is the ad a stopper?
- Is the product the hero?
- Is the ad completely believable?

Is the ad likeable?
- Is the theme one that will last?
(b) For Radio commercial copy:
Is it a stoPper?
- Could one hear what was said or sung8
Did one hear great music?
- Is it simple to point and easy to grasp?
- Did the advertiser create a favourable image?
should be taken int
() While drafting television commercial slogans, following points
consideration:
There should be forcible demonstration.
Promise should be stated atleast twice.
Brand name should be repeated.
Problem-solution-proof method should be adopted.
One should be friendly, human and believable.
Close-up shots should be used to create an impact.
Speech should be more persuasive as compared to the song.
The advertisement should be welcoming in nature.
- Product should be the hero of the ad.
Package should be shown for easy identification.
UNIT II1: Message Development 33
Q.3. Define
attributes of
Advertising Copy. Discus the various types of advertising copies. Discuss the
a good advertisement copy.
Ans. An
Advertisement Copy is the text used in the
television other form of advertisement. The text so used advertisement,
or be it print, radio,
be in the form can
catchy phrase, a company s motto or of dialogue, some
concerned with text ot a print, radio slogan any
or word. In other words,
advertising copy
holding the interest of the prospective television advertising message that aims at catching and15
or

all withina short


buyer and at persuading him or her
to make a purchase
period of time. Advertising copy is considered as the soul of an
An advertisement coPY 1s the all
written or spoken words or sentences and figures advertisement.
convey the
desired message to
the target consumers. In case of designed to
copy is made up of headline, sub-headlines, print media an advertisement
and the brand name. The written content of anbody
of the copy, illustration, logo-type, slogan
ad copy is the
product of the collective
and artist collaborate to efforts
of
copywriters, artistS and
the layout men. Both the
copywriter
an
advertisement. Ihe evaluation of advertisement copy is purely subjective provide
copy is considered to be good it it is able to reach the
and
successfully perceptive. A
target market. An advertising
copy must encourage the
consumers to buy a
particular product or avail a particular service.
Following are variOus types of advertisement copPy:
() Institutional CopPy. Such a copy sells neither the
name ot the business house. The main idea behind is to create a
products nor the service but the

goodwill of the business and its name. It aims at passing on thepositive image and
philosophy andd
objectives of the company tovwards the public so that the prospects remember it
(1) Reason why CopPy. Such copy provides reasons as to why the
a
the
product or customer should buy
avail particular service. It aims at appealing straight
a
to
or the
judgment of an
individual instead of targeting the intellect
to provethe its emotions or
impulses. It tres
superiority of the
product by giving evidence in the form of performance
test, records,
testimonials, guarantees etC.
(11) Human Interest Copy. Such a copy appeals to the emotions and the
individual nstead of targeting the intellect. Judgment, sympathy, senses of an
humour, curiosity and other emotional appeals are utilised to the sen1se affection, fear
smell and of taste, touch,
hearing. Such a copPy does not
emphasis on the details of the product
Instead it tells about the product in
v) relation to the people.
Suggestive Copy. It tries to suggest or pinpoint or convey the
message of the advertiser
directly or
idirectly
to the
readers. Readers infer the of the ad. In such
copy suggestive language is freely used where the hidden message
meaning is supposed toa
be understood by the
or indirect
target market. Such copy can further be classified into direct
copy. Direct copy tells directly about the goods and services to the
market. On the other hand, indirect
copy indirectly tells about the
target
to the target audience. goods and services
() Expository Copy. It is an
open copy in which facts about the
product
and service
are given in
very simple and
clear way so that there is noneed for
The
information given is very Clear and concise so that the
interpretation.
message effortlessly. target audience the grabs
A
good advertisement copy has the
following attributes:
Brevity. Brevity 1s the key to success in any form of communícation. Target audience
is interested in shorter
advertisements. Being brief and concise can
attaining the objective of advertising. An advertising copy should be tobethehelpful in
point as
far as posSible.
()
Clarity.
Such
A clear
copy allows
the readers or audience to grasp the message quickly.
a
copy is unambiguous and
sell-explaining. It is one that is easily picked up by
the
target market. Clarity of the
copy is adjusted as per the local traditions, habits
Customs and nationality.
(n) Apt. A copy is considered to be apt if it is able to match the needs and wants of the
prospects.
the
The copy should be so apt it
that should create a
strong desire to
possess
product. Copy writer should place himself in the position of
customer
suitablewhile
a
Preparing8 an aptadvertising copy. For this purpose, he may use the most UsP
(Unique Selling Proposition).
SERIES
DELHI UNIVERSITY
Shiv Das
It
offers
is the o n e which
is centered on the prospect.
copy. It is written
Personal. A personal copy
() It is an
individualised apPpeal
of interest to the prospect.
such copy 8enerality
a
In
something 'product' lo prospect.
to "product' rather lhan
rom prospect
do away with ambiguity.
1s
dismissed to
copy
should carry an
element
ofcredibility and believability
It is one
of
() Honesty. advertising
The honest a n d trutnful.
deal of honesly. An ad must be a n d artists while
t must carry great
a
advertising copy. Advertisers
ofa good
atributes information
important
ne ost an musl follow commercial honesty. awrong
uralting
adverlisement copy
advertisement c a n
n d gOOdwill of
ruin the image the
mis-presented lacts
in an
and
business permanently. standards, rules
and regulations that are
must confornm to offend
( ) Conformity. An ad
copy
advertising
media. An ad copy should never
to the law of land and or should send
acceptable should harm any religion
of the public. No ad
the morality and ethics c a n violate
the prov1S1ons of the Act
advertiser
message to the public. No
an unethical and Nanmes 1950 Drugs Acts of 1940,
Act,
50 and
54.
are b a n n e d in countries
ot Emblems advertisements of alcohol and
tobacco products
For exanple,
Iike India. adyertising copy? 2015
the essential features of scientifically developed
a
s
Q.4. Discuss It helps in communicating the aavertiser
message
is the core of an advertisement. features:
Ans. Copy To be should have the following
to the public. effective, the advertisement copy
It uses short, simple,
and
understandable words sentences.
Simple. reader everything he
needs to about
know the
A
good copy tells the
() Informative. successful
The most
is one which is
copy straight
goods in order
to buy intelligently.
forward and natural. him.
The copy should tell the reader
what the goods will do for
in) Enthusiastic. The copy should be long enough to be complete
and brief
(v) and
Concise complete.
the reader.
enough not to tire or bore
truthful. It omits no facts that might influence
() Honest. A good advertisement copy is
the readers opinion about the goods being advertised.
pinpoint
must the salient features of the product s o that its
(1) reputation Theforcopy
Penetrating.lasts many years. It must be fully reflective of the manufacturer, his
experience and goodwill in the line of products.
Q.5. Explain the features of an advertising copy for electronic
media. 2018
Ans. Major elements of an advertising copy for electronic media are as follows:
Video. The visual is the main element in a TV commercial. It consists of everything|
that is seen on the TV screen. Facial expressions, gestures and body language are used
to convey emotions.
Audio. Music, voices and sound effects are audio elements used in TV commercials
Talent. People (or eg., announcers, presenters, spokespersons) appearing in a
commercial are called talent.
Props. Product is the most important prop. The ad should reflect in essential properti
of the product.
Settings. To shoot a commercial, setting is organised either in a studio or at som
outdoor location.
Lighting. Special lighting effects are specified in the script. Graphics and pace (spee
of action)
are important elements for TV ads.
also
Story Telling. Some commercials are made in the form of a story and the
commercials with a story line have to be imaginative to hold their own idea agains
the programming that surrounds them. For example, Story-line of SBI Life Insurand
ad is, "kalna janey kya ho
jaye". These stories express values, teach behaviour
show us how to deal with our
daily problems.
Emotion. Real life situations with all their emotional
content-human anger, re
pride, jealousy and love come alive on the screen.
Demonstration. For example, TV commercials for ACT I
fabric etc. show in detail how the product is used. Popcorn or Comfort liq
UNIT I1: Message Development 35

Q. 6. What are the essential features of an advertising copy prepared for print media?
(2017
Or
What is an advertising copy? Discus8s the important elements of a broadcast copy?
2016
Ans. Advertising Copy. The words used to convey the advertising idea or theme are called
the'copy. h e am of adverlising copy is that it shall be seen and read, the messages conveyed,
and then acted upon. A good copy is capable of emphasising how the product can satisfy
consumer needs and desires.
The advertising themes are based on our knowledge of the market, the target audience, the
product teatures and the lypes of appeals which motivate the target audience. The advertising
theme could be utilitarian, focusSsed, informative, achievement-orientation, descriptive and

projective, new product, service, scheme or idea etc.


An advertisement copy should bridge the gap between the advertiser and the readers. The
following are considered to be the attributes that should be present in an advertisement copPY
(1) It is the art, of providing a substitute for talking to someone about something
(2) It must have a personal appea
(3) It should bring out the personality of the advertiser in terms of quality.
(4) It should be imaginative but never misleading.
(5) It should describe an article in full which should be in a narrated form. Exposition
is the art of convincing
(6) It must be capable of attracting the prospects.
Elements of a broadcast copy. Copy is a written content of the advertisement, including the
text and headline. The written matter and the message which the advertiser wants to convey
of copy is decided by factors
to the public is known as
the "Copy. The exact form and nature
for whom it is designed, tYpe or
ike nature of product to be
advertised, class of customers
advertisement and the purpose of advertisement.
content. It deals with in the message to attract the target audience
what to say
(A) Message
to the product. The consumer will think of buying the product if the advertisement provides.
some motivation, appeal or value to him. The copy must be drafted and laid out in such a

slogan comment about the product stickS to the memory of


manner that the product
or
any or

individual reader.
It must have:
) Rational values, (i) Emotional values, (ii) Moral values,
(iv) Educational values, () nstinctive values and
(oi) Memorising values.
(B) Message structure. Once it is decided, what to say or convey to prospective customerss
the next step in designing the advertisement copy is-How to say it?
It deals with followings
() The technique of asking relevant questions and keeping them unanswered for
consumers to form their opinion which arouses consumers' interest in the product
and motivates them to buy.
(i) Normally, advertisers present only positive pichure of the product but if they want
to influence the educated buyers, the advertisement must present both the sides
of the product. This will avoid resistance from buyers when they use the product.
Resistance is bound to cause a fall in the company's subsequent sales.
(in) 1f the advertisement presents only the positive attributes of the product, it should
present the strongest arguments first. If both the negative and positive atributes
are presented, it may follow either of the two alternatives : Present the strongest
argument first and weakest in the end or vice versa.
(C) Message format. Symbolising the message or preparing a format with headings, body
coverage, coloured, illustrations etc, form the message format. If the message is conveyed
through audio system for example, radio, choice of words, richness of voice, quality of speech
andarticulation of the advertiser form an important part ot the message torimat,
that
Message source. Having formatted what to say and how to say,
the last thing
UNIVERSITY SERIES
6 Shiv Das DELHI

feature is the source, i.e., who should convey the message?


aavertisement copy should message
and effective.
C e l e b r i t i e s can
convert
celebrities are m o r e persuasive
ssages conveyed by a brand into positive ones.
t is an feelings
W h anegative about
Consumers Advertising appeal? Discuss the different types of advertising appeal,
Or
while preparing an advertising
be'considered
that
Enumerate the various appeals can
2013 (Nov.), 2016
copy. Substantiate giving real-life examples. the attention
Advertising appeal refers to the approach used by advertisers to attract
Ans. the purpose of inluencing
their feelings toward the product, service
or

one conSumers for their needs and wants and


excites their
1s
somethng that people, speaks to
moves
n a . it
interest. In otlher words, advertising appeals
are the persuasive pressures that stimulate
a

individual's needs, wants or interests. The


person to buy good or service
a by speaking to an

customers and advertising appeal allows peTsuasion


objecive of advertisement toarepersuade to create positive imàge and mindset about those
is
a

to occur. Advertising appeals designed


of consideration for advertisers. Firms
or service and are a major factor
who
use the product advertising
creative
of
strategies and use various types appeals
to
lot of effort into their
put a

influence buying decision of the consumers.


be classified into the following three categories:
Broadly advertising appeals can

.Kational/ informational appeal


I1. Emotional appeal
I. Moral appeal
I. Rational/ Informational appeal. Such an appeal is usually product-oriented appeal.
highlights the functional benefits like quality, economy, value or performance of a product.

Following are aiferent types of rationai/ nformational appealS:


- Feature appeal. Advertisements based on such appeals are highly informative in
nature. They provide information of product attributes or features that can be used
as the basis for rational purchase decision. Advertisers promoting echnical and high
involvement products often use this appeal
Competitive Advantage appeal. Such appeal is used to compare the product with
other similar products offered by the competitors. Advertisers try to establish their

available
substitutes in the market.
product's superiority over the other
Favourable Yrice appeal. Under such an appeal price often is used as dominant point
of the advertising message.
News appeal. Under such an appeal news or announcements about product, service
or company is used as a dominant point of the advertising message.
Product Popularity appeal. Here product popularity domnates the ad message.
Advertisers highlight the popularity of the product by inkorming the increasing
number of users of the brand or the number who have switched to it.
High Quality. Here the dominant factor in the ad message is the quality of the product.
Advertisers use the quality of the product as a competitive weapon to promote their
product.
Low Price. Here advertisers target the market which prefers low priced goods. In
order to target such a market, products are advertised by highlighting the low pice
tag of the product.
Long-life. Here advertisers emphasize on the durability of the product. Many
consumers prefer products which are durable in nature. In advertisements of such
products durability or long life is the dominant point of the message
Performance. Various advertisements exhibit good performance of product.
Economy. Various customers consider savings in operation and use of product. kor
example, a motor cycle company may emphasize its mileage as a dominant factor i"
their advertisement message.
-

Scarcily. It is used occasionally by the advertisers. Under such an appeal scarcil


of the product is
emphasized so that customers start valuing the product. Scarciy
appeal creates an urge among the consumers to buy a particular product or avall
particular service.
UNIT I1: Message Development 37

1. Emotional appeals. An.cotional appeal is related to an individual's psychological and


social needs for purehasing cerlain prochicts and services. Emotions affect all types of purchase
decisions.

Following are the main types of emolionnl appeal:


P'ositive enmotional appeal. P'tsitive emotions like love, care, pride, humour elc. are
shown in aiverlisements to appeal to the aulicnce lo buy that product. For exanple,
Johnson and Johnson oflenuses this appeal to promote its baby products.
Negative emotional appeal. This incltudes fear, guilt and shame to influence people
and their behaviour. It may encourage people to do something or to stop them from
doing something.
- Fear. t 1s an emolional response that aims al expressing some sort of danger.
Advertisenents olten use fear appeals to evoke emotional response and arouse
consumers to take steps to remove threat.
For example, advertisements of lite insurance, life saving drugs etc.
- Humour. Humour causes consumer to watch advertisement for entertainment and
joy. Humour helps people in remembering the advertisement for a long time. They
easily get connected with the humour element in the ad. For examle, people stil
remember the fish catching advertisement of Feviquick due to the element of humour
in it.
-

Anxiety. Such appeal is used by advertisers to help people avoiding the feeling of
an
anxiety. For example, deodorant, safe car, pension plan etc. help people in avoiding tne
feeling of anxiety. Advertisers offering such product or service often use this appeal
to boost up their, sales.
L. Moral appeals. These appeals are directed to.consumer's sense of what is right and
and ethical issues and causes. Such
proper. 1nese appeals encourage people
to support social
appeals include the following:
-
Social awakening and justice.
- Cleaner and safe environment.

Equal right for women.


- Prohibition of drugs and intoxication.
- Adult literacy.
-

Anti-smuggling and hoarding


Consumer protection and awareness.
Apart from the above mentioned advertising appeals, there are some other advertising
their These are discussed below:
appeals used by the
advertisers to promote products.
- Reminder appeal. Such appeal is used by advertisers for the purpose of building
brand awareness.
-
Teaser advertising. Such appeal is used by advertisers for introducing
new
in the market. It aims at creating curiosity, interest and excitement about a product or
product
brand.
- Music appeals. Music is an important element of advertising. It helps in grabbing the
attention of the general pubuc.
- Transformational appeal. Under such an appeal the purpose is to ensure that the
product is capable of providing better consumption experience
Direct appeal. It clearly communicates with the consumers about a specific need.
Such appeal informs the consumer that a particular product or brand is capable of
satisfying their need.
- Indirect appeal. Such appeal does not stress on a human need but grabs the attention
of consumers towards a particular need.
Q.8. What are the differences between rational and emotional advertising appeals? Which
of the two should be preferred? Why?
r
Distinguish between emotional and rational appeals. Substantiate your answers with
suitable examples.
Ans. Advertising appeals. To be effective, the advertisement' copy should bridge the gap
8 Shiv Das DELHI UNIVERSITY SERIES
and
advertisement can have rational
emotional
the advertiser and the readers. The
between
appeals. should respect the sentiments and feelings of the people tortnewhom it is
ne advertisement is extremely necessary in the case
of products that are
m a d e ror
educated
meant. 1nis aspect
and people belonging to the higher strata of society.
instincts. It is these instincts which make
is fundamentally related to
ne nuan behaviour neaitrn, economy,
at different times. The instincts are pride, beauty, a n d
Person benave diferently
a d v e r t i s e m e n t should be capable of ticking these instincts directing the
and
ear
etc. the
people towards a particular product.
should be in the nature of enlightenment concerning the
use and value
n e aavertisement of demand is possible only
if
habits are chan8ed.
Ine
aavertisement
proauct. 1he creation n e w habits and attracting people towaras
new proaucts.
Snouid be capable introducing
of
rafional as well as emotional appeals to
mix of
to make use of proper
.ne aavertiser has initiates a process of creatin8 more wants
ana
tner satistaction
ne
prosPects. Advertising of or
education and the
progressof
in
a higher standard living. It
is essentially a torm a d v e r t i s e r has t o make use of a
esulng on education. To stimulate the market, the
CIvinsation depends
rnght mix of emotional as well as rational appea.
appeals
Difference between emotional and rational
EmotionalAppeal
Rational Appeais
Ypes:
ypes:
Fear Emotional apPeal
) High quality appeals | Positive Emotional appeal
( ) Low price appeals
(i Long lifeappeals Negative Emotional appeal
(i0) Pertormance-oriented appeais Humour Emotional APpeal
()Easy to use oriented appeals
xamples: ExampiE
() Horlicks: Necessity of a child to consume
| Johnson & Johnson Baby Shampo: No||
more tears
n order to gTOW tall, strong and sharp
) Colgate: Cleans your teeth and breath LIC: Zindagi ke saath bhi, Zindagi ke baad bhi.
Gin) Amaron Battery: Lasts long, really long Coca-Cola: Open Happiness
. 9 . What is meant by "Advertising Appeal"? What kind of appeals are used by an: [2015

() Insurance Company (i) Automobile Company


Ans. See 8 . Page 37
According to the given questions:
Insurance Company. It uses emotional appeal to sell insurance policies to consumes
by creating fear in the minds of consumers about the harmful consequences tne
might face by not taking an insurance policy. They use fear as an emotional appeal
sell their insurance policies to consumeTS.
(i) Automobile Company. They use convenience of Rational appeal to sell the
automobiles to consumers by highlighting the comfort they will get after purchasing
their Cars or Scooters. 1They also sometimes attach a prestige value to their producs
Q.10. Explain certain strategies to improve print advertising
State Or
Ans.
certain important tactics for print advertising.
Now-a-days
of
advertisers pay utmost attention toward various media they use for
purpose communication. Print media is one of the most important media used by
to
promote their goods, ideas or services. David Ogilvy was a famous advertising adverus
gave various tactics and strategies for print advertising in his book 'Ogilvy on execuave
He gave the tollowing strategies and tactics to improve the effectiveness of print Advertising
advertising
1. Headlines:
On
an average, five times as
many people read the headlines read the
as
boay
UNIT 1l1: Message Development 39

copy. The headlines that work best are those that promise the reader a benefit. Hence,
headlines play an important role in print advertising.
- On an average, ads with news are recalled by 22% more people than ads without
news.

One study reports that headlines with more than ten words get less readership. On
the other hand, another study of retail ads found that headlines of ten words selI
more merchandise than short headlines. Hence headlines should be long or short as
per the requirements of the message to be conveyed.
Some headlines are "blind. They don't say what the product is or what it will do for
them. They are about 20% below average in recall.
2. Illustrations and photography:
- The subject of the illustration is very important: One should have a good idea and
creativity of it to improve the effectiveness of print advertising
- Photographs that work hardest are those that arouse the reader's curiosity.
- Itpays to illustrate the end result of using the product. "Before' and'After photographs
seem to fascinate readers.
attract more readers than drawings. They are believable and better
Photographs
remembered.
more

- nlustrations should be simple and brief as far as possible with the focus of attention
on one
perSon o r product.
Human faces should not be shown enlarged or bigger than life size. They seem to
repel readers.
- Historical subjects usually bore the majority of readers.
- It should not be assumed that subjects that interest one person may interest the others.

-
When photograph of woman is used in the advertisements, men ignore such ads
a
Colour ads cost more than black and white but on the average they are 100% more

memorable resulting ina good bargain.


3. Body copy:
-Advertisers should pretend as if they are writing each of the readers a letter on behalf
of the client.
- It pays to write short sentences and short paragraphs and to avoid difficult words.
- Copy should be written in the language people use in everyday conversation.

-Advertisers should tell the consumers what the product will do for them.
- Analogies should be avoided as they are widely misunderstood.
- Superlatives should be avoided like "Our product is best in the world'.
- Adding testimonial to an advertising copPY makes it more credible.
- For many products, long copy sells more than short. Long ads convey a message that
the advertiser has something very important to say.

4. Layout:E
- Kiss is an acronym tor "keep it simple, stupid'. Readers look first at the illustration,
then at the headline, then at the copy. Hence an advertiser puts these elements in
at headline should be placed under the
that order. lustration should be the top,
under the headline. This follows the normal order
illustration, copy should be placed
from top to
Onscanning
of bottom.
the average, headlines below the illustration are read by 10% more people than
illustration. Hence advertisers should not put the
headline at the
headlines above the
bottom, inder the copy
More read the captions under illustration
an than the
read body
copy, so
peopleshould be always used with a caption under it. The caption should an
illustration include

the brand name and the promise.


5. Posters:
-Poster should deliver the selling promise not only in words, but also pictorially.
be used.
Largest possible typebeshould
visible at a long distance.
Brand n a m e should
in the design should not be used.
-More than three elements
UNIVERSITY
SERIES
40 Shiv Das DELHI

6. Typography: letters. t 1s a big mislake.


agencies generally
set their headlines in capital
avert'sinng
Capital letters relard reading
on illustranon.
the end the reade
eadlines should
not be superimposeel
be usecd at the
of headline5. This stops
full stops should not wny t h e r e a r e no fulj
Terods or continuous reading. This
is the r e a s o n
break in his
ustopspuls a
at the end of lieadlines in newspapers
in mind
kept 40
that
people are

a
a d v e r t i s e m e n t it
prnt
should beabout characters wide.
While dratting which a r e set at
newspapers the m o r e difficult it
eustomed
lo reading the typetace is
remembered that the moreoutlandish
t should be
is to read. increases readership on a n average of
between paragraphs
is used, it
- l t extra leading
be too small or too
12%. Letters should not
should be used.
size of the letters
APpropriate
readership especially
big.
some typographical
devices that help in increasing
Following are
in case of long copy.
headline and body copy
enhances reading
lines between
A subhead of
two

13%.
eperience started with a initial. It increases readership by
drop
Body coPy should be a maximum of
11 words.
should be limited to the
Opening paragraph marks can be used to excite curiosity among
Cross heads and interrogation
readers.
should be face or italic.
Key paragraphsbe bold heads, bullets or numbers.
-

-Reader should helped with the use of a r r o w


two of the following:
Q.11. Explain the advantages
and limitations of any
(a) Internet Advertising
(b) Transit Advertising
() Surrogate Advertising t is

Ans. (a) Internet Advertising. Internet


as a n advertising is an
atractive pro-position.
suitable medium to access a world-wide clientele. It can be used to overseas clients.
access

a
Internet ads are cost effective considering its wider reach. It can facilitate direct marketing
the net. lt
can provide selectivity depending upon the site
direct response ads
on
by putting across selectively at certain times of the
nosen and
The
itsthatpatronage.short message can
be put the internet. Internet can be used to build
carry message are used on
a
day. banners
brands and corporate image.
these days to modes of public transport
(6) Transit Advertising. It has become a fashion
use
other
for advertising. The space outside and inside
the
buses/ metro, railway carriages and
Vehicles give mobility to the
vans
may be hired by the businessmen
to spread their messages.
Such type of advertising is highly flexible and is a low cost medium. It is very useful
message.
for advertising consumer products. It attracts quick attention and requíres very less time and

etfort on the part of the readers (the prospective customers).


() Surrogate Advertising. It is the advertising used to promote banned products like

cigarettes, etc. in the disguise of another product.


This type
ot adverising uses the
products ofalcohol,
a fairly close category as club soda, mineral water, etc. Als0, sometimes it uses

entirely different products ike Music CDs or Playing cards to place the brand name into the
is to promote banned
minds of consumers. The purpose behind this type of counseling
a

product by projecting the other products of the same brand.


Examplé, Bacardi Blast Music Ds, Bagpiper Club Soda, Oficers Choice Playing Cards, e
Q.12. Differentiate between:
a) Consumer Advertising and
Industrial Advertising
(6) Idea Advertising and Service Advertising
Ans. (a) Consumer Advertising vs, Industrial Advertising. Consumer Advertising is one in
which the advertisements are sponsored by either manufacturers who make the consume
products or by dealers who sell them. These advertisements are directed to the consumers W
UNIT I11: Message Development 41

buy these products for


themselves or for somebody else,. The products are consumer durables,
producer durables, single use products and multi-use products. Domestic or small appliances
which include mixers, shavers, toasters, and hair dryers etc. come under another category of
consumer advertising
of
Industrial advertsing is
one three
of the types of business advertising. The buying motive
such consumers could be production requirements or business needs and the target audience
is relatively smaller. The advertising copy 8ives tacts, figures and evidence and is very specific.
The appeal used is basically rational. Industrial advertising is very complex as an industrial
affected of variables. It builds the
by number
productis bought a
by very elaborate process a

corporate image and motivates the distributors. As a percentage of sale, industrial products
advertising is much smaller than consumer products' advertising. The industrial products
advertising coPy 8'ves tacts and figures.
() ldea Advertising An idea is simply an unrestrained thought about a certain topic. The
idea needs to be developed into a concept. A idea is capable of creating an emotional connection
with the target market. It has value as a topic for discussion due to being resonant and
of discussion
meaningfuu. Idea advertising refers to a promotion of thought or a topiccan general
be communicated
or even a non-profitable organisation. Idea
by an individual, company AlDs control,
through all media platforms as it is
universal. For example, cancer prevention,
pollution control, 'no tobacco campaigns, etc.
Service advertising. It aims at promoting the sale of service that is intangible, perishable
cab service etc. Services are variable in
and inseparable. For example, beauty parlours, airlines,
nature as thy differ from one service provider to the other.

0
Unit
Measuring Advertising (IV)
Effectiveness
Q.1. What is meant by measuring advertising effectiveness?
Or
IScuss the various techniques used for mçasuring advertising ettectiveness.
to how well a company's advertising accomplishes
avertising and effectiveness pertains firms use many difterent statistics, metnods and
ne desired goals objectives. Small
These measurements can be used for all
ecnniques to measure their-advertising effectiveness. and even billboard advertising,
pes of
advertising including television, radio, internet, mail
Ne managerial responsibility in the area of advertising does not come to an end with the

execution of an advertising programme. Any sound managerial effort is ultimately interested


n g o a l a t t a i n m e n t a n d thus a l w a y s ready to e v a l u a t e the results. Ihe evaluaion or aavertising

results is called advertising effectiveness. Measuring advertising ettectiveness erers to the

managerial exercise aimed at relating the


advertising results to
the establisned standard of
pertormance and as
objectives
so to assess the real value ot the
advertising pertormance. It is
an effort to know whether the message designed properly his reached the greatest number of
prospects at the least practical cost. Measuring advertising effectiveness is a research activity
Its main goal is to establish the cause and effect relation between the efforts and the resuuts,
Different tests and technigues to evaluate advertising effectiveness as follows:
9 Pre-test and Post test. Pre-test as the name suggests implies testing advertising
message before it is sent to specific media. Post test implies impact of advertising
message after it is published in any of the media.
(7) Communication anid Sales effect test. Such test measures the ability to communicate
the messageOn the other hand, sales effect test measures advertising impact on sales
Volume.
(m) Laboratory and Field test. Under a laboratory test, test is conducted under a
controlled environment in a limited scale. Respondents are called in a laboratory to
state their response. On the other hand, field test is conducted in original setting
Artificial climate is not created under a field test. It is just like cornducting a survey to
measure what customers think about the company's advertisement.
(iv) Experimental and Survey test. Experimental test involves testing advertising effect
by conducting test by manipulating independent variables like consumer satisfaction,
profits, sales, satistaction etc. such tests may include laboratory or field test. Survey
methods are used under survey tests in order to ascertain
consumer's views
regarding
an advertising message.
(v) Message and Media Effect test. Message test involves measuring
believability, action, ability etc. of the message. Media test on the otherclarity, content,
hand measures
effectiveness or suitability of
one or more media. Usually a firm is more interested in
measuring communication ettect and sales etfect. Therefore it is important to discuss
communication and sales effect test.
Among several tests, the communication and sales effect test
tests help in ascertaining hold great relevance. Such
the
the extent to which advertising has been successful in influencing
knowledge, attitude and
preterence of the
target customers. Often sales volume is
ultimate aim of all marketing and the
sales volume. Thus,
adverising efforts. Advertising should lead
to increase in
measuring advertising ettectiveness in mo0st cases, consists of evaluating
communication test and sales effect test.
UNIT IV: Measuring Advertising Effectiveness 43

Methods for Communication Effect Test: Communication effect test seeks to detemine
whether advertisement is capable to communicate effectively. The advertising effeciveness
s measured by examining the comnunication effect research, which seeks to discover if
advertising has acheved the intended communication etfect. This method is known as "Copy
two types:
Testing which can be categorised into
() Pre-testing advertising campaign; and
of
i) Post-teshng of adverising campaign.
Advertisers pre-test the efficiency of their advertisements, whether they are seen, remem
or not.
bered and recalled
by the customers
Three major methods of ad pre-testfng are-A. Direct Ranking, B. Portfolio Test, C.
aboratory Test.
A. Direct rating method. Under such a method consumers are asked to rate or rank alterna-
tive advertisements. They are shown different tests and are requested to rate the advertisement
on the basis ot aiterent criteria like
message contents, message clarity, coordination and overall
impression. Conisumer judgment can be made on the basis of the following tests:
Memory tests. They provide a means for gettingg a measure of advertising ettect. It 1s
possible to ascertain the extent to which the message has attracted the attention and
interest. The familiarity of the public with the brand name, the slogan, the current
theme and the like may also be determined.
Memory tests may.measure either recognition or recall memory.
Attention tests. It is customary to measure attention after the event, in terms of mem
ory. Attempts have been made to develop means of testing attention and interest in
terins of external manifestations.
B. Porifolio test. Under this method the consumers are asked to view or listen to a portfolio
of advertisements. They are given sufficient amount of time as per their necd. Afterwards, they
are asked to recall all the ads and their contents. The recall level of the respondents indicates
the ability of the advertisement to influence the knowledge of the consumers. Moreover, it also
indicates the ability of an advertisement to ereate interest and curiosity among the consumers.

C.Laboratory test. Here the test is conducted in a laboratory. Required equipments are used
to measure consumer s physical reactions in terms of perspiration, heartbeat, blood pressure
etc. to an ad. These tests measure an ad's attention-seeking power but reveal nothing about its
impact on beliets, attitudes or intentions.
Sales efect test and its methods. Sales effect test aims at measuring the ability of an ad to
intluence the level of sales. Advertisement should always have a pOsitive impact on sales. Ad-

vertising experts are of the view that it is very dificult to measure ad's ability to.inituence sales
posifively. The reason behind is that sales are intluenced by many factors besides advertising.

These factors include product's price, quality, durability, features, competition, etc. Following
two methods are used:
0 Historical test. Under this method past sales are correlated to the past advertising
The results can indicate to what
expendifures using advance statistical techniques.
extent advertisement was efective in generating increasingsale
or
( ) Experimental test. Under this method experiment is conducted to assess impact
of advertisement on sales. A company spends dfferent percentage ot sales for
advertisement in all territories or products. Instead of spending the same per cent
of sales tor advertisement in al territories or products, company can easily ascertain
whether high spending territories have resulted im increasing sales and iCe-UerSa.

Q.2. Is it necessary to measure advertising effectiveness? Why 2016

Should effectiveness of advertising be measured? If yes, what should be the subject-

matter of measurement? 2017


Ans. Objectives of measuring adrertisings efectiveness on
Huge Expenditure. Companies around the
globe spend billions of rupees
of the
to the effectiveness money
It becomes essential for them
aavertisin8. judge
ent 1hey cannot justity huge advertising budgets wthout finding out the results
ot their advertising efforts. Shareholders, Board of Directors and other stäkeholders
UNIVIERSITY
SERIES
IDEIU
Shiv Das
an question the use ol company's fuds lor alvertising esurenent of resul
nuge
a ralionale
1or varmarking huo
anagenent
proviles the company
Vsng and
sp*nt on aulvertsingg can an investirient
to be noe
e
mounts toInvestment. on advertisingg
is
saidl
() keturn on
Money spenl
is justifiecd when it yielkds
reasonabie returns, The same
an epemtiture. Any investnent
does not necessarily proutce
same Denelits. Thei,
the

ot advertising budget reasons.


Measurement oadvertisin
nount due to
several
is a n a depending on
may vary considerably advertising campagn
ss how successful an
efltiveness will show
be decidedmore rationaly
provides information
can
tuture advertising budgets
that Evaluation of advertising elleciveness media
( Valuable
Feedback.

making improvements
useful in
in copY designing
plans and
which
can
highly
be other campagn vrusng
and componenls ot an advertising of leedback trom evaluation
planning
modilied
on the basis
and redesigned 1on
can be years. Inus, measuring
programmes and higher achievement
in sSubscquent
tor better performance mistakes.

lhelps to avoid costiy


advertising
effectiveness
campaign
made
through
Advantage. slight A m an advertising
change
profits. In cut-throat competition
(F7) Strategic increase in sales
and

rivals. Lompanies often


evaluation can lead
to signilicant over its
provide a company
evaluahon can
an edge communicates
a
rational to determine which
ad most
altemative versions of their advertising
test
effectively. effectiveness provides a
means
of control over
Control. Evaluation of advertising more
(®)
the huge sums of money spent
on advertising Evaluatiorn nelps in developing
It determines how
well the set areobjectives being
efficient and effective advertising.
achieved.
thorough evaluation of advertising
not
oniy increases
(i) Higher Morale. An accurate and but also improves the moivation
the chances of success ot
the
advertising programme,
and morale of the people assoCiated with the advertising campaign.
for measuring effects
of advertising. [2018
Q.3. Briefly explain
the post-testing methods
Effectiveness. Huge amount of money Spent every year by
is

Ans. Measuring Advertising becomes necessary lor the management


It, therefore,
enterprises on their advertising campaigns.
to evaluate the effecthveness of advertising
programme is called advertising
ettectiveness. It is a
managerial
Evaluation of the advertising
has reached the largest number of prospective customers
exercise to know whether the message not
is
a know whether the
measure to or

Measuring adverising et ectiveness


at the least cost.
have resulted in successtul attainment
an advertisement
money invested
in
creating
ime
of theand
objecive of sales growth and proht maximisation to the advertiser.
lt is necessary to know whether advertising objectives have been achieved or not because
if the desired results. Measuring advertising
expenditure on
advertisement justified it produces
is
effectiveness ensures that revenues exceed the advertising costs. Measuring ettectiveness
each medium helps in choosing the most effective medium that will help in achieving the

advertising objectives.
The advertising effectiveness is measured by examining the following-
(9 Communication etectiveness ot the advertising campaigns or Communication-etfe

research.
(i) Sales effectiveness of advertising efforts or Sales-effect research.
Advertisers are also interested in finding the overall impact of a completed advertising
campaign, whether it has increased brand awareness, stated brand preference etc. There a
fwo approaches for post-testing ads:
) Kecognition tests. They aim at measuring the degree of memorability of methodolo
used. The test begins by qualifying the readers in terms of whether they have sec
the specific issue of the which carried the 1ne
read magazine
of such test helps in ascertaining the extent to which a company's advertisement n
advertisement.
made a communication
impact.
(i) Recall tests. The qualifying readers are shown the magazine cover and with the ne
of a deck of cards bearing names of diferenB brands are asked to state which bral
UNIT IV: Measuring Advertising Effectiveness 5
advertisement has been seen by the reader, and he is asked to recall (recapitulate)
everything about each advertisement identificed by him.
Sales effect. The ettectveness of advertisement is measured by its influence on sales, If
vertisement results im nerease in Sales, It means that advertisement is effective. However,
auring sales response is a difficult task because sales depend on many factors other than
measurin
advertisin8 aiso.
0.4. Discuss the arguments for and against measuring advertising effectiveness.
Or
what are the reasons behind measuring advertising effectiveness? Also
effectiveness? Also .state certain
sing
effeci
limitations of measuring advertising
Ans. Followngare s0neargments for imeasuring advertising effectiveness:
9 It acts a5 5atey measure. Measuring advertising effectiveness helps in finding out
ineffective advertisement and advertising campaigns. It facilitates timely adjustments
in advertising to'make advertising consumer-oriented and result-oriented. Thus it
helps in avo1ding wastage of money in taulty advertising
Gi) Provides feedback for remedial measures. Measuring advertising effectiveness
provides useful information to the advertisers to take remedial steps against ineftecthve

advertisemens. Hence measuring advertising effectiveness is really important.


(n) Avoid possible failure. Advertisers are not sure of results of advertising rom
a particular advertising campaign. Evaluiating advertising effectiveness helps in
estimating the results in order to avoid complete loss.
(iv) To jusity theinvestment in advertising. The expendiure incurred on investment is
considered to be an investment. Investment in advertising is a marketing investment
and its objectives should be spelled ont clearly showing the results expected from
the campagn. ine rate and size ot return should be determined in advance. If the
expected rate of return is achieved in erms of addittonal profits, the advertisement is
considered to be.effective.
() Iehelps in knowing the communication effect. The effectiveness of the advertisement
can be measured in terms of their communication effects on the target consumers. The
main purpose ot advertising is to communicate with the consumers for inforning
them regarding the various aspects of the product and the company. Theréfore it
1S very important to measure the ettectivenesS of advertising to ensure whether the
message has been communicated or not. Measuring advertising effectiveness helps
the advertisers in determining whether they have been able to communicate the
theme and appeal ot the message to the target market.
(07) Compare two markets. Measuring advertising effectiveness helps the advertisers in
comparing two or more markets. For this purpose advertising is published in test
markets and results are contrasted with others. The measurements made to determine
results may be measurements of change in sales, change in consumer attitudes,
changes in dealer display and so on depending upon the objectives sought by the
advertiser.
Folowing are some arguments against measuring advertising efectiveness:
Cost. Pehaps the most commonly cited reason for not measuring advertising.
etrectiveness is the money cost and expenses involved. Measuring advertising
ettectiveness can be à very time taking and costly process. Many advertising and
marketing experts are of the view that money and time spent on measuring
aCvertising etfectiveness can be easily utilised elsewhere to improve the performance
of the organisation.

) Kesearch problems. The second reason cited for not measuring effectiveness is that
t 1s difficult.to isolate the effect of advertising and promotional etforts. Each variable
n the marketing mix affects the success of a product or service and hence it is often

very difficult to measure the contribution of each marketing element directly.


D1sagreement on what to test. The objective sought in the promotional program may
rer by industry, by stage of the product lite cycle, or even tor ditterent people
within the firm.
46 Shiv Das DELHI UNIVERSITY SERIES

0 he obections of creatives. It has been argued by many that the creative departmen
does not
want its work to be tested and many agencies are reluctant to e estea and
many agencies are reluctant to submit their work tor testung Advertising agencies
e aepartments argue that tests are not true measures or n e a u y and

ELecveness of ads. They try to link their creativity with the success u Ihey

is ultimately responsible
for
the succes
ds ne marketing manager
or brand. Moreover there are various factors
that intiuence e
succesy
one product
of an ad which are often not taken into consideration
for not testing is a lack of
time. Managers Deeve they
Another reason given around testing
to and thney
don'
have too much to do and just can't get
areday some otner
oPportunity
wait to get the message out because they might miss are
to While many mand BETS ove
be the solution to the first problem.
arning might conduct researcn.
not find time to
Durdened and busy they may Discuss the steps involved
in the
what do you understand by advertising testing?
process of advertising testing.
Or
Define advertising research. State its process.
Or
in advertising
and post-testing techniques
DISCuss the various pre-testing
Or
for measuring advertising effectiveness. 2019
the post testing methods
Briefly explain testing that aims to determinetests ad's
an
research refes to ad
testing or
and
Ans. Advertising on responses,, feedback
and behaviour. Advertising
etectiveness based consumer tor any medium
such as
radio,
conducted to optimise advertisements
be
researches can
of testing different methods are applied to
internet etc. For the purpose
television, print media, of types two
the necessary data appropriately, The process
of advertising testing consists
the advertisement
gather testing is
of advertising research-pre-testing and post-testing. Pre-testing
of preparing most eftective ads is ensured.
t
helps
likelihood
before running it so that the is done after the
and eliminating weaknesses any. Post-testing
in detecting opportunities expensive but more
realistic. In case of post
advertisement is run on the media. This is more

lite setting.
are tested real
in
testng advertisements
research can also be classified into
two types of research-customised
and
Advertisement specific client to address the clienfs
research is conducted for a
syndicated. Customised to the results of the research. Syndicated research
is a
singe
needs. Only that client has a c c e s s

conducted a research company with


by
its results available for sale to numbe
research study
of I.
companies.
Pre-testing. It is also known as copy testing. It is a form of customised research that aims

in-market performance of an ad before


it is aired. Under this technique audiene
at predicting
levels of attention, brand linkage, motivation, entertainment and communication are analysed

is also used ads that are still in their rough form e,g,
on
animatics or ripomatic
Pre-testing Ie
Pre-testing aims at identifying weak areas
where there is large scope of improvement.
to assess the likelithood
behind is the advertising eftort. It is undertaken
main idea to improve market. It ensures that advertisements are capable o

of response from the target


getting
the target audience.
conveying the intended message to
Pre-tests for print media:
Consumer Jury Test. Under this technique, few consumers form a
group and act
0
to show their preferences for one or two ads out of several being consiaer
jury mau The
They ranks to the ads and
give is to pick up that ad respond questions asked to them.
to the
idea behind which most of the group members found impressiv
The test is conducted by two methods namely-Order or Merit rating and raun
comparison test. Under merit rating test the group members rank the advertisemen
according to their preference. The consensus emerges about the best ad copy ar

end.
In paired comparison test at a time two ad copies are compared one to one. ve
Single ad is compared with all others. Sources are recorded on cards. They are sumu
UNIT IV: Measuring Advertising Elfectiveness

up. The winner gets the highest score. This technique is easier as compared to the
order of merit. The number of comparisons one is required to make is determined
with the help of the lollowing tormula:
n.(- 1)/2
the number of ads to be tested
wherer =

() Portfolio test. Under this method some dummy copies are kept in a folio along with
regular advertisements. The consumer sample then sees the folio. Afterwards the
consumer is asked about what he has seen in each ads. The ad giving minimum
playback is considered the best. Then it is observed whether the chosen advertisement
is a regular or a dummy, In case the chosen advertisement is a dummy, the real
is on the same lines.
advertisement improved
(in Mock magazine test. Under this method test ads are introduced in a real magazine
and are shoWn to an experimental group. The control group is also exposed to the
same magazine but is without test ads. Afterwards, a recall test is conducted to assess
the effectiveness of ads.
(io) Direct question. Under this technique, a consumer jury is formed. The whole ad or
its different elements are tested by asking direct questions. There can be a single
question onuy or a seres ot questons.. The main idea behind is to assess attention
strength, read through strength, affective strength and behaviour strength of the ad.
Some points are allotted to the copy for each component. Each ad is rated from the
best to the worst.
() Perceptuai Meaning Studies (PMS). Under this technique the respondent is exposed
to test the ads tor a limited time period. After the respondent sees the advertisement,
din he is subjected to a recall test for the product and brand. He may be asked to recall
the brand illustration and the main copy.
Pre-tests for broadcast media: Al the above mentioned methods can be used to assess the
effectiveness of broadcast media like TV and Radio. Apart from them the following pre-testing8
techniques can also be used for Broadcast.mèdia:
(9 In home projection tests. Under this method a movie projector screen is installed at
t a consumers home to show him test ad messages. He is questioned before and after
the exposure to the concerned advertisement. The questions are linked to. the ad and
the change it causes after exposure. The plus and minus points of the ads can be
addressed under this method.
nts
(i) Trailer tests. Under this method two groups of customers are formed. They both
are given discount coupons to buy a particular brand. They are invited to a shop
store o a centre. Here one group is shown the ad and the other group is not.The
rate of redemption of the coupons is measured that can provide an idea about the
etfectiveness of test ads.
n (n) Theatre tests. Under this technique a group of people who could be captive audience
sed
for an entertainment programme is considered and questionnaire is prepared and
sent to them. Afterwards, free tickets are sent to them tor the programime where the
test ads are run. On viewing these, they are asked to fill up another questionnaire. 1The
00 main idea behind is to assess product, brand and its theme.
(io) Live telecast test. Under this method advertisements are put on air. These tests are
test ads. Later viewers are thoroughly interviewed in order to analyse their reactions.

Other pre-testing techniques


Sales experiment. Under this method. a small ad campaign of one or more
advertisements is run before launching the product throughout the country. For this
purpose two or more test cenres are selected. Ihe ads are run for some period say
one to four months. Afterwards, sales responses are noted down. Most companies
Consumer Goods) use this method to motivate the
aealing in FMCG(Fast Moving
buyers to buy their products.
) Direct mail tests. Under this technique a group ot Prospects are selected from the

mailing list .on a random basis. They are sent different test ads. Iin order to measure
the response the orders against each lot are noted down.
Shiv Das DELHI UNIVERSITY SERIESs

Under this test the main focus


is on the
physiological reaction
(un) Physiological testing.
For this purpose following
three instrumentS
are usea:
o e respOndents.
movement camera. It
how measures
the eye
m o v e s over the
layout of tey
Eye where its movement stops are aiso noted to
The route taken by the eye and
ads.
tind out the areas of interest and attention.
skin
to ad
stimull. For exampl
It is used to measure responses
perspirati0n reduces the
Galvanometer.

activity through palm. More


Perspiration by gland faster passing of currént. The tension is generated
and leads to
Tesistance ad. s u c h
is the
is
effectiverness of an
technique onl
Higher the tension greater nature,
firms when their ad
is of highly sensitive
devices record changes pupile
in
used by devices. Such
Perceptoscope o r pupilometric and attention. Contraction shows dislike o
dilation. Dilation indicates reading visual stimuli. It is develope
evaluates interesting appealing
the respondent. It to record dilation.
bckhard Hess and James P'olt.
Lett eye 15 photographed
by ad tracking. It can be customised
or
syndicated. Pos
testing. It is also known as
Drana pertormance
s
II. Post a
in-market research monitoring
continuous attitudes. All forms of
or
testing involves periodic and
brand preference, product usage
including brand models which marketing science
awareness,
mix
to marketing
data are used to provide inputs ad tracking studies
tracking
build to estimate advertising
return on investment (RO). Somethe
statisticians conducted with help ot internet
while some
are
are conducted with the help of telephone
the following kind of information:
Post
testing helps providing
in - Brand awareness
Decision analyst - Aided brand awareness

Unaided brand awareness


Brand image ratings
Brand it
Repeat purchase
- Brand trial Purchase intent
Frequency of use
- Aided advertising message recall
Price perceptions - Message recall
Unaided advertising - Aided advertising message recall
-Unaided advertising awareness Media habits
Ad wear out
Litestyle
Demographics
Market segment characteristics

common post testing,


techniqtues-(1)
Penetration
test/
the fwo most
Following are or sales effect tests.
and (2) Progress tests
Recognition recall also called recognition or readership viewership tests. Under
These are
I. Penetration tests. claim to have read. They are
are shown the
issues of magazines they
this method, respondents categories:
The results are put into the following three
asked to recognize the ads. seen the ad in the is_ue under
A person who only remembers having
() Noted (N).
seeing it but also claims
to
study. A person who not only remembers
i) Seen-Associated (A). with product or advertiser.
of it. He even associate the ad
have read some
part may the
has read half or more of the written material in
(ii) Read-Most (RM). The person who
2d. is
of readers are expressed in percentage terms. This method also
The above categories
to broadcast ads tape
where commercials on are played.
adaptable
This method is not considered error free. This method is always subject to reporting erro
the respondents. deliberately exaggerate or at times unknowingly suppre
They might
by
intormation.

some methods that might increase the efficiency of measurement. lne


There are
however
are discussed below:
() The tachistoscopic method. Under this method advertisements are shown to u
basea
at a high speed and then they are asked to furnish information
respondent
thoseads.
(in) The sCreen method. Several screens are put over an ad which are then removed one
one as recognition is obtained at various levels of visibility.
UNIT IV: Measuring Advertising Effectiveness

(it) Pre-publication control and Confusion contra methods. These are two more methods
often used by researchers. Under pre-publication control a recognition survey of
previously unpublished advertisements are conducted. Under Confusion contra
method some unpublished advertisements are mixed up with some published ones
is measured.
and then recall
Callup-Robinson Impact Test. Gallup-Robinson is a commercial research firm that has
formulated standardised aided recall tests to survey advertisement impact. A respondent is
shown a magazine cover and is asked whether he/she has read the issue. If yes then he/she
is asked to describe anything he/she remembers seeing in that issue. He/she is then given a
deck of cards with brand names on them which appeared on the issue and is asked to indicate
which one lhe/ sne remembers seeing the issue.
in
Recognition vs Aided recall. In the aided recall method the test issue is kept closed and the
respondent is required to answer entirely on the basis of his memory whereas in the recognition
method respondents first qualify as readers of a partiçular issue.
Unaided Recall Tests. This is a types of recall test where the respondents are not given any
clue to recall the ad. This proves to be more demanding than the aided recall, as respondents
recalling the brands without help shows a gTeater degree of penetration of the ad.
Following are the main types of unaided recall tests:
) Day After Recall (DAR),. In this method viewers or readers are questioned one day
after the advertisement appears.
() Total Prime Time. Hére the major item of research is regarding viewer's viewing
time.
Triple Association Test (1TAT). This test aims at measuring how much a viewer or reader
has leamt about the brand from the advertisement. The respondent is told about some product
feature or benefit ancd he is to find the brand name for that. For example, if a respondent is asked
which shaving cream ad shows that it.contains tea tree oil and the respondent says Vi John,it
implies thaf the learning objective of the advertisement is successful.
2. Progress tests. These tests assess the total sales effect from the ad and hence is also called
sales effect test. In this melthod the various stages through which a customer passes and finally
purchases are because of the advertisement or not is analyaed. Under these tests following
methods are used:

(The Netapps method (Net-ad-produced purchases). It takes a sample population of


which some have read or viewed the advertisement and others have not. In each group
those who did not purchase the brand under investigation are found and analysed.
It helps in ascertaining the percentage of people who bought under influence of the
advertisement.
i) Intend to buy test. The reader or viewers of the advertisement are asked about their
intention to buy. In case of positive responses further investigations are done to find
out the strong influences. Advertisers through this method try to find out the strong
elements in the ad that are capable of convincing the prospects to buy.
(im) Sales result tests. Sales result tests measure the additional sales generated by the ads.
ast sales betore and ater the ad are recorded and the diference is accounted for as
impact of advertisement. An audit may be run on the dealers inventory before and
atter the advertisement.
(fo) Enquiry tests. Many firms dealing in durable goods issue coupons as a part of the
advertisement copy to the customers so that they can fill them up and send them back
to the company. The number of coupons received by the company gives an idea about
the number of the readership of the advertisement.
() Attitude tests. The change in attitude of the customers after the advertisement
campaign is measured. Marketers try to analyse whether there has been a change
in the customers attitude towards
the brand under
investigation. They assume that
positive attitude towards the brand can lead to turther purchases.
Unit folle

Organisational
Arrangements
Discuss its role and
functions. Also, discus
uss
. 1 . What is meant by advertising agency?
an

the various types of advertising agency.


Or
to hire advertising agency fo
State certain r e a s o n s why
s o m e organisations prefer
their goods and services.
promoting known as a creative agency, Is a business that is dedicated
agency also
Ans. An Advertising
and other forms ot promotion marketing for
and

creating planning and handling advertising


to
is usually independent of its client. It may be
an
internal department
its clients. An ad agency of selling the clients
an outside point of view to the eftort
that provides
or
an outside agency An can also handle
overall
marketing and Q
or services or an outside firm. agency
products
for its clients that may
include sales as well. Typical ad
branding strategies
of promotions and private DE
clients include businesses and corporations, non-profit orgarnisations
agency
agencies. Agencies may produce
be hired to television commercials, radio commerCials, online advAl
etc. Advertising agency creates the
advertising out of home advertising, shouldmarketing
mobile
it over to the client belie
ads and plans how, when
and where it be delivered and hands
take all The
not dependent on any organisations. Ihese agencies
Advertising agencies are mostly expert in their
the efforts for selling the product of
clients.
the have a
They people
group oftheir
the companies or organisations to reach target market.
particular fields, thus helping
Major functions of an advertising agency:
the responsibility of advertisement planning
) Advertising planning.
In a
big concern,
rests with the advertising department.
However, part may be
a of its responsibility,
if it is used.
delegated to the agency must secure space in the media. it
(i) Selection of media. The advertising agency
with various support systems required
for the production of
has regular contact
appropriate ad material.
Creative function. Services of professional copywriters and artists can be availed of
(ii)
to have proper layout.
carries out the non-advertising marketing functions also such
(v) Marketing function. It
(customers), determining prices and discounts, designing products
as
selecting target channels of distribution strategy etc.
andpackages and developing network
Coordination. It coordinates with the
cliene's sales force and its distribution
(v)
to ensure long-term success of the advertising programme.
for an advertiser to have, on its panel
(1) Trained personnel. It may not be possible
staff having the variety of skills required produce appropriate
permanent
advertisements. These skills are possessed by personnel ot an advertisement agency.

to hire advertising agency to promoe


Following are the reasons why companies prefer an

their goods and services:


The agencies aYe expert field advertising. They
in the of have a
team o
) Expertise.people
different for different functions like art directors, planners, copywriters etc
(i) Optimum use of human resources. The agencies make optimum use of these peop

their knowledge and experience.


(i) Professionalism. They work with an objective and are very professional in nature

(iv) Cost savings. Hiring them leads in saving the costs up to a large extent.

50
UNIT V: Organisational Arangements

Followingare ne ypes of adovertising agencies:


vnrous
that deal with all stages of
(
service
Full agencies: 1nese are large sizedforagencies
advertisement. They have different people different departments. They gather
relevant data and also deal with the media people efficiently.
agencies use
Such modernised modes of communication. They
tin online agencies.
Interactive advertisements, personal messages etc. for the purpose of promoting
interactive
concerned goods and services.
Ihe ads produced by such agencies are very
innovative
in nature. They
come up with new concepts and are very interactive and
in nature.
are very creative and innovative. They perform no
(i) Creative boutiques. Such agencies small sized agencies usually
other function apart rom creating
actual ads. They are

owned by copywriters, directors and creativepeople.


advertisements and sell it to
suchin agencies buy place for
(iv) Media buying a8encies. time which advertisements will be The schedule
placed.
the advertisers. They sell the
slotsat diferent channels and radio stations.
television They also make sure that
ad has been telecasted at
the opted time and place.
are good as the full service
as agencies. Big firmms and
(p) In house agencies. They in built and work exclusively
which are
for
these ot agencies
organisations preter type of the organisations.
work as per the needs and requirements
them. These agencies
the various factors that influence the
selection of an
advertising agency
Q.2. Explain r
firms while selecting a suitable
factors that should be kept in mind by
Discuss the various
advertising agency. agencies only when they
Ans: Businesses opt for the
usualy of the'advertisingand
services
their advertising promotional campaign.
believe that these agencies will hep them execute these agencies are knowledgeable and
reason behind
is that
the individualsieldworking in before a firm
The of creativity and advertising. But
the
experienced. They specialised
are in it must take into consideration
the following factors:
services of an ad agency
decides to hire the
ot Usually the larger
the agency the better quality of servicesit
( Total extent the the agency. at large.scale a

are ottered by same. It is believed that


when
an agency operatesMoreover smaller
ad professionals.
has the financial strength
to
hire goodofamount of wide range of services. Hence
agencies do not
have the capability providing a
ot large agencies.
companies preter
ambitious to hire theserviCes
ad agency is involved with
a
the agencies belt. If an

(i) Number of clients under services it is advisable not to


number of firms promoting homogeneous goods and
agencies. Taking services from such agencies
may result. in
take services from such to the
of vital business information
of work. It can also result in leakage
repetition the number of clients dealt it
by must
competitors. Thus betore selecting an ad agency
a business firm.
be taken into consideration by services
of ad and non-ad based
Type of service on
offer. The type and nature small or
(1) the agency should also
be into consideration.
taken
A hire firm can
offered by and hnancial soundness.
requirements
Certain
large ad agency as per its promotional Consumer Goods)
in particular field like FMCG (Fast Moving
agencies specialise a
certain agencies specialise in
industrial marketing
advertising. On the other hand, The media contacts possessed by an
ad
the agency.
(0) Media contacts possessed by Good
influence the choice of the
can also
firm regarding iring an agency.
of
agency date and time
media contacts help the agency
to accommodate the desired
place,
business. Business houses preter
those agencies that
for the promotion of the
Tequired communication channels like radio chanunels, TV channels,
work with most
Closely
printers, publishers etc The number and amount of, creative
) Creative possessed by the agency.influence the choice of the firm regarding
talent
the ad agency can also
personnel oWned by basIC criteria
tor such selection.
It can act as
ad agency. the
Selection of a suitable
calculated on the basis of factors like quality ot personnel, experience,
Creativity can be
specialisation and so on.
SERIES
52 Shiv Das DELHI UNIVERSITY

and location
agenCy are othe
the
of nvenient
location and proximity. Proximity location and
.Agency
factors considered by firms before hiring an ad contact with the agenc
suitable proximity helps in better commu have better convenience, controj
agency.
na
the firms
proximity to the agency helps
CLOser
and involvement with its activities. i r m s to compare the ad rates
It is better for Differeny
and compensation. most sultaoe ne. their
Payment before selecting the have to
COrsiaer
own
different agencies
emanded by companies
amounts.
Moreover,
different soundness.
enctes charge
financial
and oy aa inaagencies
and promotional budget of involvenmentmust snow complete
vertising The total amount
1otal amount of involvement.
to be
An agency n the activities, give
considered.
is also
Company's advertising effort allow a to take part firm
reports
Moreover, monthly
must

the client An agency


from time to time.
espect for and work with the same alternate basis.
a d v e r t i s e r on an radio and
its feedback the
shown by television,
expenses
should be which are endorsed by is eventually,
and of the agency.
Agencies
recognisable and
this credit
are the most of such agencies thev
Endorsement
(2) that and image
the ones
are con-duct
code of
newspapers
Due to the
on to the clients. of an ad
passed
to be more
reliable
current market standing
are considered it implies
the
results and are easy
ranking
Bythose hard to provide
() Agency ranking agencies
that work
reliable and provide better
er
agency. Firms prefer
more
are
with a higher ranking
Agencies
to approach. and drawbacks of
advantages
returns on investment. What a r e the
in-house advertising agency? 2016
Q.3. What is
an
agency.
in-house advertising
arrangement and als0 use
an ad vertising
having an advertising department company greater
agency giving thethe
own
have their
Ans. Many firms with the
agency as liason acts a
agency's plans
The in-house advertising advertising department approves coordinates
control over the major expenditure.
The advertising budget, and
and administering the dealer displays and
and ads, is responsible for
preparing handle direct marketing,
It may also
advertising
with personal selling not handled by the agency.
to
activities, if they are
use advertising agencies
carry out
other promotional
companies, especially producers an independent company
It is a fact that many
activities. An advertising
agency is
of their advertising ofter m o r e general marketing
s o m e or all also
services and may
advertising
that provides specialised
assistance. overall direction
can be performed by an

of them or just mix


advertising tasks,
some of its marketing
All the a substantial part
whose advertising Is
A company internal department
internal department. It a company with
an

its own advertising department. to the


will usually have department-head will report
the advertising
has, adopted the marketing concept,
executive.
organisation's top marketing firms have started depending on advertising agencies simply
However, of late, even large
are in the market."
because they
State certain disadvantages hiring advertisin8 agencies.
of
Q.4:
Ans. If may not alwayYs be beneficial to appoint
an
agency for the following reasons:
The major disadvantage of
an advertising agency
is on
relyingrisks
Non-reliability. communication. The client
and
an outside firm tor the company' s promotion
damaging its image in the public.
Once contract has been entered into wit
of cancellation of contract.
a
(ii) Difficulty to cancel the contract with
an advertising agency, it may become difficult and costly
them.
turn expensiveout to be more than an in-hous
A smallmay
outside
() Costly. department. agency
team or An firm may find it difficult to afford services of an a
of
agency. Hence such prefer to have an in-house team that is capable designug
firms

or campaigns as they know the company and its vision better.


(tv)
messages
Confidentiality issues. As the advertising agency would have a number of otne
elients to work with, hence, their attention would be divided and not exclusive. Ine
may also be a chance of vital information being leaked to competitors.
UNIT V: Organisational Arrangements 53

O.5. State the importance of evaluating the performance of advertising agencies.


Dr
Discuss how advertising agencies are evaluated.
Ans. The evaluation ol the pertormance is becoming an inlegral part of any system in today
lynamic environment.ihe evaluation is of great importance for the process or system or service
that involve high costs and have crucial impact of performance on the users or clients. Advertising
e
is a performance oriented service with high cost investment and advertising agencies are the
service providers n a nugnuy competitive environment. They canriot thus remain untouched by
the use of evaluation process. Ihe evaluation system can be adopted on formal and informal
basis. Most of the times agencies are judged on an informal basis. The evaluation is informal
where the clients as well as the agencies are of smaller size, the number of clients are less,

he
ad budget is loW, and the adivertising does not play a critical role in the clients marketing

performance
The formal systematic evaluation is adopted in the firms where ad budgets are large and
advertising function plays a critical role in increasing sales and market share, enhancing
company's brand image and so on. In consequence to this the management of the cliene's
company is always interested in ensuring that the investment is yielding enough retums.
The ways of evaluation of advertising agencies can be classified into two broad groips:
Are () Qualitative evaluation. This looks forward to the creative production of the agencies.
Inthis category the efhciency and etectiveness of the agencies iS Judgea by tne
production of its creative arts in the form of advertisements and ad-campaigns, efforts
and skills in planning, developing and implementing the cliene's advertisement
acke
programmes
(i) Quantitative evaluation. Under this system agencies are judged against their
quantitative achievements with respect to the clients like increase in sales volume,
gtea increase in market share, increase in kol (Return on investment). The financial
audit with respect to the agency itself also forms part of the quantitative evaluaion
dins It focuses on how the agency conducts its business and treats cost and expenses
ys a number of personnel hours charged to an account (client) and payments to media and
outside suppliers or vendors.
The firms as per their need may irame their own procedures and format for evaluating their

ad agencies. The evaluation may also be in the form of performance appraisal on aspects
like the agencys experience in a particular sector, quality of creative work, range of services,
rketi
quality of the accounts team and commitment towards the business. Many big companies
conduct performance evaluation of their ad agencies on an annual basis. They evaluate their
by a
ad agencies on the basis of various aspects like creative services, credibility, marketing support,

artmen! cost control, sales volume etc.


The increasing patterm of cost of advertising and other promotional efforts are compelling
to te
more and more companies to start with the evaluation process and that too in the formal
manner. The periodicity of evaluation can differ from firm to firm. It can be adopted either
simpi
annually or as and when required.
Q.6.Writea note on misleadingadvertisements.
the society
It is badl for to use the technique of advertising
Ans. Misleading advertisements.
which is manipulative and corrupt in nature.
ng advertisements about their False claims
S ome adverisers make false claims in their products.
dre orten made in case of detergents and washing powders, cosmetics and to1letries.
Advertisers frequently exploit the weakness of Indians forFOREIGN' Goods by giving forèign
brand names such as 'Park Avenue' or 'Cambridge' to their products. Some manufacturers
"France' or Paris' in their
aavertise indigenous cosmetics and perfumes by using names like
aISements to create the erroneous impression that such products are "FOREIGN.
. Concealment of certain important information is considered as the biggest deception and is
shown in many advertisements, when companies employ half-truths. The adivertiser neglectsto
mention important information, the knowledge of which would probably make their products
r d o l e . it is mainly used by the insurance companies and credit card companies. They
cost, hidden charges, interest on late
have the common practice concealing
of
Payment to lure the customers.
the processing
A SERIES
Shiv Das DELHI UNIVERSITY

is often deceptive and misguides the consumers througn iause ciaims made
avertisinng should put place to protect the
in

Therefore, a regulatory mechanism be


ertisements.
consumers from the harmful or negative effects ot aave etoh a formally designed cod
Advertising helps organisations design their advertisements Adver
defrauded. Advertise
laws in India to prevent the public from being deiauded. Some of
n e r e are many these laws is
Pushaoe the
adequate knowledge of these laws. Breaking
u t nave
main Acts are as under:
Lonsumer Protection Act, 2019. Advertisement Act, 1954.
Remedies objectionable
u g s and Magic
3. Competition Act, 2002
1986.
Representation of Women Act,
* Indecent
Standards of Weights and Measures Act,
1976.

. The Emblems Act, 1950


. Names and Publication) Act 1956.
.Youth (Harmful and Distribution)
Act, 1975.
(Production, Supply
. garettes and Distribution) Act.
.Alcoholic (Production Act 1992.
Board of India
10. Securities Exchange major forms. 2018
advertising? Explain itsfacts are intenionauy omitted or false claims
Q.7. What is deceptive
become misleading when
Ans. Advertisements of various products
with
their advertisements
and comparison life
our TV SetsS Would guarantee
examination
are
made. An this fact. It is just untrue to claim that
and these
detergent washes buo more ciothes
reveal
would easily or "our washing- soap/ to buy goods
trouble-free service is thus talsely induced
long and safest". Ifa consumer
whitest, brightest be treated as falsé representation. The
are washed the qualities advertised, it can only In India, a
that do not possess of selling methods.
Act, 1914 (USA) bans this kind Committee
Trade Commission sachar
of deceptive advertising The
Federal
being felt against this kind r e c o m m e n d s that following acts of
gTowing concern is else. It
the
truth and nothing
wants the advertisers to speak
declared as unfair trade practices:
the sellers should be and false representations.
advertisements
A seller should not falsely represent
1. Misleading grade, composition style or
are of a particular standard, quality,
(a) that the goods
model.
are re-built goods, second hand
goods or new goods.
(6)that goods the them and conducting
with the intention of not providing
2. Offering of gifts or prizes
promotional contests. c o n s u m e r s against deceptive
2019 is designed to protect
The Consumer Protection Act
advertising to some extent.
marketers and advertisers
whenbenefits engag
Various of
forms Deceptive Advertising. Oftenterm think of the long
focus on short and. don't
in deceptive advertising they only them who do in this activity end up
engage
term consequences; 1This is
a
bigmistake. Most of even from legal repercussions o
perhaps suftering
harming reputations; losing financially and is to the forefront and brought
unethical business
When the
practices. deceptive advertising
exposed, it can really hurt a business.

Following are the various forns of Deceptive advertistng


todeceptive advertising, the bait and routin switch
1. Bait and switch. A popular approach
of a special price but not háving the item availabie
involves luring the deceit
customers in on
and tne
pieces of the specially priced item
were only one or fwothere
Chances
are most often thereissue were enough stocks available.
company skates around the
2. Fake testimonials.
by claiming that
Sometimes companies fake testimonials.in order to promote a produ

the testimonials of others and businesses know tnis


People tend to pay a lot of attentiontoto when the testimonials are faked and consune
Untortunately there 1s often no way know
don't know that the product or service is tlawed until it is too late.
3. False promises and vague or incomplete descriptions. False promises also 10
problematic type of deceptive advertising to lure such people in, who expect to make a 8
guarantee. sellers promise to give the best deals to customers but d0
purchase with
honour them.
a
UNIT V: Organiaational Arrangements 55

Descriptions that are vague and filled with false promises are pretty deceptive. There is no .
the promises.
to back up
substance
"AUnsubstantiated claims. One major form of deceptive advertising is to provide
unsubstantiated claims. t e n an iaca 1s created that is marketable and there is no real proof
n whether or not it works or is effective. This is a problem in every industry.
like air-brushed models, some advertisers like
5. Distorted photographs and ad-copy. Much
to Photoshop their pictures, bait and switch photos or simply invent new pictures. This goes
or aeceptive advertising is to falsify ad-copy to make statements
for ad-copy too. Another torm
half or no truths.
that are
ony their
6. Small-print qualifications of advertisements. Sellers tend to show lucrative offers to More
small print in the advertisements.
customers along
with
Some qualifications in a very
than not these qualifications so small that they are not visible to the naked eye
are or are
often
blurred and disicult to read.
Q.8.Write a brief note on ethical and legal aspects of advertising in India
Or
What is ASCI (Advertising Standards Council of India)? State certain legal and ethical
aspects of advertising as per ASCL
Or
Write a brief note on social aspects of advertising.
Ans. Advertising Standards Council of India (ASC) is a sel-regulatory voluntary
organisation of the advertising industry in India. It is a non-government body founded in 1985
world India
and is headquartered in Mumbai (Maharashtra). Like other countries around the three main
There
too has a Self Regulatory Organisation (SRO)
for advertising content. are

constituents of adverising industry viz. advertisers, advertising agencies and media. They all
came together to form this independent NGO. The aim of ASCI is to maintain and enhance
public's confidence in advertising. Their mandate is that all advertising must be truthful, legal,
honest and decent and not objectity women, be safe tor consumers especially children and

should be fair to competitors.


The code of advertising practice of the ASCI includes the following:
1. To ensure the truthfulness and honesty of representations and claims made by
advertisements and to safeguard against misleading advertisements:
-Advertisements must be truthful. All deceptions, claims and comparisons that relate
to matters of objectively ascertainable facts should be capable ot substantiation.
Where advertising claims are based on or supported by independent research or
assessment, the source and date of this should be indicated in the advertisement.
- Advertisements should not contain any reference to any person, firm or instifution
without due permission, nor should a picture of any generally identifable person be
used in advertising without permission.
- Advertisements shall not distort facts nor mislead the consumer by means of
implications of omissions.
-bvious untruths or exaggerations intended to amuse or to catch the eyes of the
consumer are permissible, provided they are clearly to be seen as humorous and not
likely to be understood as making or misleading claims for the advertising product.
2. To ensure that advertisements are not offensive to generally accepted standards of public
decency:
Advertisements should contain nothing indecent, vugar nor repulsive which is likely
in thie light of generally prevailing standards of decency and propriety to cause grave
or widespread offence.
situations for the
. To safeguard against the indíscriminate use of
advertising in or

hazardous to society or to a degree or of a


type which
promotion of products that are regarded
5
unacceptable to society at
N o advertisement shall larg be permitted which tends to incite people to commit crime or
and violence or intolerance.
O promote disorder
Decries any race, caste, colour, creed or nationality.
Presents criminality as desirable or indirectly encourages people-particularly
Chudren to emulate it or conveys the modus operandi of any crime.
Shiv Das DELHI UNIVERSITY SERIES

Adversely afíects friendly relations with foreign state


not contain ànytning whether in
Aavertisenments addressed to children shall or moral
har mental
result in their physical,
1uustration or otherwise which might
or which exploits their vulnerabillty. with matches or any other intlammable
Should show children using or playing sharp knives, 8uns or mechanical o
plosive Substance or playing use ofusing
with or
which could lead to their suffering cuts
appliances, the careless
ecerical
burns, shocks or other
injury.
Shall feature tobacco or alcohol based products. reler to
without justifiable reason, show or dangeros
Advertisements shall not
or manifest a disregard for safely encourage
or negugence.
practices that is in breach of the
law or omit
anythino
Advertisements shall not contain anything
that law requires. is banned
the use of which under the
Advertisements shall not propagate products,
law.
10
ensure advertisements observe tairness in competition
that on choice in the market place and the cannons or 8eneraly accepted sucn tnar tne consumers
.
need to be informed

competitive behaviour in businesS are both served:


with other manutacturers or suppliers or
Advertisements containing comparisons
where a competition is named
are
pemissible in
those
with other products including and public enlightenment, provided
it is clear
the interests
of vigorous competition and with what aspects
of the advertiser's product are being compared
what aspects
of the competitor's products.
The subject matter of comparison is not chosen in such a way as to confer an artificial

advertiser or so as to suggest that a better bargain is oftered than is


advantage upon
truly the ase.
accurate and capable of substantiation.
Ihe comparisons are factual,
There is no likelihood of the consumer being mislead as a result of the comparison,
whether about the product advertised or that with which it is compared.
The advertisement does not unfairly attack or discredit other products, advertisers or
advertisements directly or by implication.
Advertisements shall not make unjustifiable use of the name or initials of any other
firm, company or institution, nor take unfair advantage of the goodwill attached to
the trademark or symbol of another firm or its product or the goodwill acquired by

the advertising campaign.


Advertisements shall not be so similar to other advertisements, in general layout
copy, slogans, visual presentations, music or sound effects as to be likely to mislead
or confuse consumers.
Q.9. Explain the legal provisions for advertising in India.
Or
Describe in brief the various ways in which regulation and control can be exercised to
ensure ethical advertising. [2018
Ans. The techniques of advertising and sales promotion áre often used to deceive the
Customers. At present we do not have any law preventing deceptive advertisenments or sales
promotion methods. The Monopolies Restrictive Trade Practices (MRTP) Act is silent on
these matters. It may be on the assumption that if dealers/manufacturers or producers can
be prevented from distorting competition, the consumers will get a fair deal: This indirect
restriction is neither enough nor will restrain the sellers from giving misleading advertisements
unfair
or
adopting methods of salespromotion.
Advertisements become misleading when
things are intentionally omitted or false claims are
made. If a consumer is falsely induced to buy goods that do not possess the quality adveruse
it can be
only treated as a
false representation. In India, a growing concern is being felt agau
deceptive kind of advertising. Sachar Committee, which was appointed to review
the Companies Act and MRTP Act, wants that the and rev
seller, if he advertises, must speak the truu
and nothing else. The Committee recommended the
practices:
following acts of sellers as untair rau
UNIT V:
Organisational Arrangements
Misleadin8 advertisement and false representation.
2. Offering of gills/priZes witn the intention of not providing them and conducting
promotional contests.

PThere is a dire need to have a compact law in India to avoid misleading/deceptive advertising
nen
and sales promotion.
Self-regulation in India
The Advertising Club, Mumbai in April 1982, organized workshop
Regulation in lndla Advertisiing, in collaboration with the
a "Code
for Self-
on
International Advertising
Association (IAA). Professionals from various Indian
Advertisers & Advertising
Agencies, the World President Emeritus of the lAA and the Director General of the
Advertising Standards Authority addressed the workshop.
The deliberations of the workshop resulled in setting up of a committee on self.
regulation code in India. Ihis was basically set out to ensure that the consumers are
protected aganst spurious advertising and the generally accepted norms of moraiity
are upheld. Subsequently the Advertising Standards Council of India (ASCI) was set
up to check down on misleading and unethical advertisements.
o. 10. Discuss the recent developments in advertising in India.
r
Write a brief note on recent trends in advertising in India.
Ans. The Indian advertising industry has evolved from being a small scaled business to
full Aedged industry. The advertising industry is projected to be the second fastest growing8
advertising market in Asta ater (China. lt is estimated that by 2018 this share of ad spend
in India's gross domestic product (GDP) will be around 045%. The Indian government has
is
given major support toadvertising and marketing industry. Advertising expenditure
ikely to increase in the financial sector driven by RBI policies which could result in a more
and better
favourable business proposed
environment. Moreover, for new
licenses
market sentiments render advertising and marketing industry in India a fertile space.
banks
Market size. Print media contributes a significant portion to the total advertising revenue,
accounting tor almost 41.2 per cent. Whereas television contributes 38.2 per cent and digital

media contributes 11 per cent of the total revenue. Outdoor, radio and cinema make up the
balance 10 per cent
India's digital advertisement märket is expected to grow at a compound annual growth rate
25,500 crore mark
by 2020.
(CAGR) of 33.5 per cent cross the
to
The internet's share in total advertsing revenue is anticipated to grow twofold from 8 per
cent in 2013 to 16 per cent in 2018. Online advertising which was estimated at R2,900 crore in
2013, could jump threefold to 10,000 crore in five years increasing at a compound annual rate
of 28%.
Recent developments:

Group M, the US based advertising media company, has acquired a majority stake in
mediacom India and Madison media group's principal shareholder Sam Balsara.
- Dubai based Iconiction Ltd. plans to enter the ndian retail analytics space in
India Ltd.
partnershipP With local entrepreneur
Mr.
Anil Hiran, to set up Iconiction
Flipkart, India's largest e-commerce market place, has re-entered the private label
business by launching Smart buy, with a view to boast earnings and ill gaps in its
production selection.
solutions has announced the acquisition of Mirabeau BV,
Cognizant technology
a Netherlands based digital marketing and customer experience agency, which is
domain in Netherlands
expected to expand Cognizane's capabilities in digital business
and Europe.

The Indian railways is working on a new advertising policy aimed at installing 1,00,000
-

big digital screens at 2175 railway stations across the country, which is expected to
generate l1,770 crore revenue annually.
Larget, a software-as-a-service (SaaS) based conversion rate optimisation start up
nas raised US $ 1.5 billion in seed funding from Accel partners Matrix partners and
Freshdesk inc's founder Mr. Girish Mathrubootham, which will be used to build more
marketing related tools.
UNIVERSITY
SERIES
Shiv Das DELII

one of India's largest and fastgrowing e-commerce companies, has


acal.com, and personalisati
media, which is a CGurugram-based marketng of its customere
quired Targeting enhance
to
the experience
as a part of its plan discover
Ernsl and Young (ET) As a Onsutant to
ompany, ia

indian Railways has appointed is in line with the railway budget


proposal of increasi
advertising potential, which $ 750 million) in tive years,
asing
to over 5,000 c r o r e (US
O-are eamings the global bra
renowned football player LiOnel Messi as
motors has appointed The jdea behind is to tan
Tata globally.
ambassador for Tata cars and utility vehicles motors in newer market
and presence of Tata
market and visibility
expand
youth
Walter Thompson has launched
its global digital agen
-

Advertising agency J lIke


strateBY and consultin
network "Mirum' in India which will provide services
and content, experience
and plattorms, analytics and innovati
services, companies with the target to increase
non-traditional media revene

and product development,


to 4045 per cent trom 35 per cent currently. virtual to le
My Ad as a
agency
All India Radio (AIR) has appointed "release
station online.
advertisers book ads for all AJR's
- Telecom Major Axiata's subsidiary, Axiata Digital Advertising (ADA) has formed,
to get into the US S 47
based advertising firm Acknowledge
joint venture with US
billion digital ad market in the Asia pacific region. Modi's
India jmplement prime Mr.
minister 'Digibl
Narendra
Google is all set
India' Initiative
tohelp
and the govemment has a well laid out plan to release it. The idea
behind is to transform the country into a well connected economy, attract investment

in electronics manufacturing and creating million of jobs.


to be bought by
has become the first Indian technology product startup
Zipdial The
Twitter. zipdial deal is expected to cost twitter US $ 34-35 million. This will help
twitter to reach people who will come online for the courntries like India, Brazil and

Indone
MPS North America LLC, the US subsidiary of Bengaluru - based publishing

solutions provider MPS Ltd. has acquired electronic publishing services inc (EPS), a
creation, art rendering, design and
New York-based firm with interests in content
production.
Government Initiatives in the field of advertising and marketing:

The governments of India and Canada have signed an audio-visual co-production deal that
to harness their collective artistic, technical, financal
facilitatesproducers from both countries
of culture and art between the two countries
and marketing resources and encourage exchange
The agreement is likely to lead to better promotion of ndian locals tor shooting films and ads
of film export of Indian ads and films into
The agreement will also lead to transparent funding
the Canadian market.
and restoration o
India and Poland are seeking to enhance cooperation in the digitization
film archives. The two countries are trying to form a joint group that will improve cooperaton
in fields like student exchange programmes, animation, films, ad-making etc. The govermment
tna
has announced that it planned to
has
on the
increase advertisin8 spend digital plattorm
will help in increasing the government's presence in digital media.
The advertising and marketing sector in India is expected to enjoy a good run. Growth B
expected in retail advertisement. Large number of firms are entering the food and beverdg
segment, e-commerce is gaining more popularity in the country. The rural region is a potentiauy
profitable target. For example, two wheeler industry finds the rural areas as a more profitao
market. This means they spend heavily on advertising and promoting their products in rur
areas. Similarly, the telecom sector also targets rural areas as there is a great market tor sn

and cheap telecom services.


phones
Q. 11. Discuss the current issues and challenges in advertising in India.
Or
Write a brief note on recent issues in Indian advertising industry.
Ans. The advertising industry is very big in countries like India. The country itself proviu
huge potential to the advertisers to market their products and services. In the recent past tn
UNIT V: Organisattonal Arrangements

been significant changes in the advertising industry associated with economic downturn
t as has left the advertising industry with the following issucs and challenges:
na Staff turnover. The recent recession has left a large impact on the staff of advertising8
agencies. Many adverising agencies and firms downsized or laid off employees
while other employees moved to different industries because they were unsure about
their jobs. 1nese changes resulted in high furnover at many firms. This weakenea

the relationship of the advertising firms with their clients. The lack of consisient
relationships makes it easier for a client to take their business down. It becomes ver
difficult to maintain consistent creative approaches and media buying strategies when
writers etc. leave their jobs and move towards some
directors, media buyers, copy
other índustry.
() The role of print in advertising. For many years, advertising agencies focused
primarily on traditional print advertising, along with television media. But the
internet and social media have dramatically changed the role that print media plays
to
in a Hence
company's overal 1orstrategy. 1he advertising agencies the. forced were

determine tne
new role prnt. of
relevance print advertising has
gone downn
in the recent past due to emergence of internet and online advertising Hence new
and young advertisers need time to adjust to the changing circumstances. They have
to build internal knowledge and external resources to adopt to the latest technology

changes. the of content and brand marketing. Content and brand


(ii) marketing have effectiveness
Evaluating become a leading advertising strategy in the recent past. But one ot

the issues is evaluating the ettectiveness of this type of advertising and selling tne
cient on the ROI (Return on Investment) of brand marketing. Advertising agenaes
to quantify the increased revenue
will need to master brand marketing and also able
the company has to shift its focus from clients to
to clients. Under such marketing
customers.
Social media has drastically changed
(iv) Effectively using social media to sell services. advertisers. Some
the game and presents many
advertising issues and challenges for
of the hurdles include using social media into overall campaigns and convincing
it. Due
in
social media can be more effective than doing
cients that hiring experts The
to social media the advertising industry has gone under a tremendous change.
biggest challenge betore advertiserS 1s to cope up with such changes,
need
has
grown so there
has also arisenandthe to
() Cyber security. As, the digital worid beingt
risk for
potential to be a huge
crime has the businesses
protect it. Cyber Hence safely maintaining online presence
of a
subject of a
high protile data, breach.
is another issue and
promoting its goods
time and services
business and at the same
advertisers marketers.
(1) challenge taced
Talent. Advertising
by the and
agencies typically lose one out of three employees every year.
Thus urnover creates a huge amount ot problems and extra cosIs. Hence 1oss of talent
in these
on an annual basis is big challenge for
a
advertisers. Young people working
often. This can create a sense of instability
agencies tend to change their job more
within the adverising nrm.
to find out more and more clients
(Ci) Chents. Advertisers are under great pressure throat
there is cut
who are willing desired rate of competition. Today
to pay the
is the biggest challenge
in the market. Therefore, to find and retain clients
competition
faced
by change.
advertising
(1) Pace of The agencies.
changes occurring in the ield of technology, advertising and
withto pace the of
marketing is so fast that it is very keep upwhile
difficult for advertisers at the same

time changes.
suich Agencies are

keeping abreast of constantly fragmenting


trying to get day to day work done
the
digital media landscape.
Unit
Personal Selling Process VII
0.1. Write nofe on ustomer knowledge in personal selling.
Ans. Customer 2007(E)
knowleage.
A salesman must have
perfect knowledge of customers to whom
products are
targetedto be solkd. He must have
knowledge of the customers
strong points
s, and
nature ol behaviour. I Te must lendencies,
haying motives. tt means tnat he should try to underslandacquire knowledgeofwith
the psychology regard to their
the customer. This
shall help him to know the following:
(1) What motiyates the customer to buy?
(2) What is the nature and requirement of the customer?
) How to deal with different types of customers?
The sales representative snould learn everything possible about Ihe
prospective
business-its size, present purchasing practices, the location of its plants, the names of the
customers
executives, ana the names ot the people who make the buying decision as well as those who
infuence the purchase. If the customer has any problem, the seller should, if po05sible, become
familiar with those problems. Salesmen must try to obtain information about the customers
background.
Q.2.Write notes on:

(a) Prospecting 2007 (R), 2007 (E), 2011, 2012


(b) Pre-aPproach 2007 (R), 2007 (E), 2012, 2017
Ans. The personal selling process is a logical sequence of four steps thatsales-person takes
a
in dealing with a prospective buyer. This process leads to some desired customer action
ends with a tollow-up to ensure customer satisfaction. The desired
and
action usually is to get the
customer to buy a good or service.
(a) Prospecting 1he list step in personal selling is called prospecting It consists of first
identifying potential customers and then qualifying them-that is, whether they have the
necessary purchasing power, authority and willingness to buy. To determine willingness to
buy, a seller can seek information about a prospece's relationship with its present suppliers 10
determine a prospece's financial ability to pay, a seller can refer to credit ratin8 services. or
household consumers or small businesses in an area, a seller can get credit information roma
local credit bureau. Besides determining the buying authority, a seller should identihy the one

or more perspns who influence the buying decision.


(b) Pre-approach. Betore calling on prospects, sales people should learn all they can about the
persons or companies to whom they hope to sell. This pre-approach in selling might include
out what the prospects are now
using and their reactions to those products.
inding products
team should find out how buying
in business to
businesstheselling
a
sales-person or
selling the
organisation. A sales-representative can
target nght
decisions are made
in customer s who intluences and/ or makes
people irhe she
or Knows who
1s
the intormation gate-keeper,
the buyinE decision, and who actually maKes the purchase.
Sales people also should try to find out the personal habits and preterences ot a prospect.

can, so that they will be able to tailor


all the intormation they
ales people should ry to get
their presentations according to individual buyers.
It
the prospects and planning the approach is called pre-approach.
ot understanding
he act done two
IS
mainly
1.
in
steps In this step the salesmen gathers information about the age, needs,
Krnowing the prospect.
information can be irom both internal and external sources.
income occupation etc, this gathered
37
8 Shiv Das DELI H UNIVERSITY
SERIES

1 l a n n i n g the call. The salesmen should plan how he is g o i n g lo apPro e P r O s p r c t and

what type of question he wants to Ask.


of effective selling' Where do y.
S Prospecting' essential element in the process
an

think a salesperson should look for prospectust 2015


it
innporlant
is elective seing
element in the process
of initia as

s . Tes, Prosperting an
the potential customers Dy systema
It is the act of finding
POCess ot personal selling. from the tact tnat absence of it in

t territories. Prospecting is also essential


g sale enables company to surve S In the lon
cstomers Would get dried up. t also
a

salesman's ellorts. Denefits ma li nese


of orderliness in a
t . Taclltates the bringing
t

prospectng an important act.


The following are the places' to look for prospectus
to locate potential customers
It is a very good place
Trade shows/exhibitions. sales force are also
called as ($potters) who f.
from junior sales force. Junior
Leads with
the prospectus.is a
up the appointmentsA satisfied
(un) Customer referrals. customer good source
tor
new potential customers
trade, etc. give intormation abou
directories like telephone,
(10) Directories. A variety of
new customers. about new customen
Specialized prospecting
services. also gIve clues
services
04. rospecting of pre-aPproach in the
process of effective
State the meaning and significance
Q
personal selling. What steps are involved in it
2007(E), 2011, 2016
Or
and approach in the seling process? Are
is the difference between pre-approach
What [2014
both essential, Why? the information
Pre-approach and approach. The pre-approach step ncludes al
Ans. to learn relevant facts about the prospects, their
gathering activities salespeople perform their
needs
based
and their overall situation. Then,
on this intormation, salespeople plan sales
for cal.
presentations, selecting the shouldappropriate
most objective each
learn everything poSsible about the prospective customer's
:The sales representative the its plants; the names of its
location of tne
business-its size, its present purchasing practices;

importantly, the names of people who


make
Duying decision as well
executives; and, most also to learn something about the buyers
as those who influence the purchase. It is helptul lf the prospective
social affiliations, or personalitis.
backgrounds, such as their education,
should, it possible, become tamillar with those
buyer having problems, the seller
has been
problems. The salespeople must
remember that, "lH-4epth research
nto
prospects makes salespeaple
can about the company, the
stand out.t is
necessary
for
salespeople to
know as much as they
decision makers, and their needs betore making that nrst c a l
Once the sales representative has the name of a prospect and adequate pre-approach

intormation, the next step is actual approach. Making an appointment to see the buyer increases
the chances that the salesperson will have the buyer s attention during their meeting.
A gOod approach makes a favoura ble impression and establishes some degree ot rappor
order to make a tavourable impression with customers
between the salesperson and the buyer. In
a firm handshake, be professionally attired,
in the United States, the salesperson should have
and make good eye contact. Usually each call starts with an introduction, (unless the slesperson
has called on this customer before) and a limited amount of small talk. Sometimes salespeople
sorme
will draw attention to their products by handing the buyer a
sample or
by highighting
benefit in which the buyer will likely be interested.
the first minute or so of a call, but it can make or break
The approach usually takes up only
the entire presentation. If the approach fails, the salesperson often does not get a chance to 8ve
u
the consent
a presentation. At the end of the approach the salesperson must gain buyers
move into the need assessment stage of the call.

Yes, both approach and pre-approach play an equally significant role in the proxe
personal selling. In the absence of etfective pre-approach, the salesperson will not be aoe
convert a prospect into a customer. Fre-approach will save the efforts and time required at n

u
approach phase as it will facilitate in correctly identifying the prospects who are genuine
can be approached. Also, It will form the foundation of securing correct approach.
UNIT VIl: Personal Selling Process 8
er hand, approach is cqualuy mportant as this is the stage when the salesman
on thentact with the prospect in a tace to face situation. A good approach makes a
pe
in ression and establishes some rapport between the salesman and the prospect. It
l eimpressi
for a sound sales presentation.
ivohe basis
nakeplain the varous netnods tnat can be adopted by a salesperson in the "Approach"
Q5.E
selling rocess. (2010, 2019
e
of personal Or
escribe the various methods a sales person can adopt for approaching the prospects. |2015

De Approach. APproach. 5 O tract atternton and generate curiosity of the prospect


A ale-person was relerred O the prospect by a customer, the right approach might be to
he salespe this common
by mendoning acquaintance.
start out es this is called the so anta so sent me approncin. Or a sales-person might suggest the
Someefits by making some startling statement. After attracting the prospect s attention,
roduct sentative can hold it and stimulate a desire for the product with a sales talk. 1he
0 e r s o n must always Show now the product will benefit the prospect.

thods of making the approach:


Third parties. A salesman s Ccustomers, relatives, friends and acquaintances can help him to
s s to the prospects. They may do it by giving a letter to the salesperson to be delivered
gun access to
the prospect or by aiowng num to reer their names to the prospect.

sending advance leters. Direct mail (including e-mail) advertising is a valuable aid to
with prospects.
alespersons n secunng nterviews
30fering sifts.An inexpensive gitis an etecive medium for opening doors for salespersos.
4.Telephone. it 15 in enee evce 0r Securing interviews. Ihe telephone approach should
e rapidly, get to the objective ot telephone call quickiy, avoid a telephone argument.
5.Sample. Some salespersons seure interviews by leaving asample of their product with the
Spec's secretary with the understanding that the buyer will give it a lrial.
6.Personal cal. Salespersons can make a direct, straight forward statement of name and
requesting an interview elther immediately or at a future lime convenient to the
husiness,
prospect.
Q6. What is 'sales presentation'? Explain the different types of "presentation' formats
available to a sales person 2010, 2017
Ans. The final decision of the prospect 'to act, depends entirely upon the sales presentation.
f the salesman has done nis homework thoroughiy, ie, prepared his sales talk, he will be
confident to persuade an unwiling buyer to take a favourable decision. Planned presentation
ensures effective delivery of talk. A planned presentation is important when the salesperson
s facing a group such as Executive Board of Directors. Such salestalk should be flawless and
fluent for which careful preparation and practice are necessary.

ypes. Thee are Jour 1nportant types of pianned sales presentations:


( Some salesmen prefer to memorize their talk which is nicknamed as "canned"
presentation.
(i) Outline of the salestalk is given first and then go on filing it as they commence their
salestalk.
(i) Having obtained the pernision to do survey, his salestalk is a detailed description of
e survey.

(i) Worksheet presentation. It involves the preparation of achart or worksheet showing


the situation, needs and product application of an individual customer on the basis of
this worksheet, a
presentation is maade.
97. What role does dramatizing play in a presentation? Suggest ways to makea
presentafion more effective 201/
Dramatisation plays a key role in sales presentation. It is one of the essentials of

fective sales presentation. Dramatisation refers to the art of presenting the product before
tne customer. The salesman must select the most effective method of dramatising his product.
ramatising is secured through visualisation. It maintains buyer interest and makes the sales
Pesentation interesting. Dramatisation convinces the prospect. For example, when a sales
PeSonnel claims that the product will not break and then hits it with a hammer to prove his
90 Shiv Das DELHI UNIVERSITY SERIES

claim, such dramatisation helps in winning over the confidence of the consumer. Dramatisation
also creates understanding and creates a long lasting impression Wnen a sales personnel

aramatises, he actually creates a picture in the prospects mind. it creares enthusiasm and
builds up sales people's confidence in their own abilities and in their praucts and services.
Following are certain other factors that should be kept in mina to mcrease the effectiveness
of sales presentatio
Promptness. The salesman should be quite pronpt in presening the product before
the customer. He must have the accurate knowledge of the location o the product as
desired by the customer.
(i) Clarity. The sales presentation must be absolutely clear and complete. It should be so
clear that no doubt is left in the customer's mind.
(iri) Appealing to the senses, There are in all five senses-sense ot sugntsense of touch,
Sense ot hearing, sense of small and sense of taste. The salesman should try to appeal

to all the senses of the


customer.
(iv) Handling the product. The salesman should demonstrate the product as much as
possible. He must handle the product himself and then if possible, also permit the
customers to feel and handle the product they purchase
()Guarantee. A göod sales presentation is the one which gives guarantee to the customer
ror a certain period. The guarantee given by the salesman r e i e v e s thne customer of any

doubt about the working or benefits of the product.


. 8 . Why do customers raise objections in the process of personal selling? What techniques
can be adopted by a sales person in handling such objections? [2008, 2013 (Nov), 2015, 2019
Or
What type of objections do the customers raise in personal selling? Explain the methods

and precautions which salesmen use while handling such objections. /2008, 2013 (Nov), 2019
Ans. Handling objections. As part of the presentatiorn, the sales-person may periodically
venture a trial close. The trial. close tends to bring out the 'buyer's objections. A sales-person
should encourage buyers to state their objections. It provides the sales-person an opportunity
to meet the objections and to bring out additional product benefits. The toughest objections to
answer are those that are unspoken. A sales-person must uncover the real objections, and try
to satisty the buyers before being able to close a sale.
Objections are an oPportunity for salesmen to learn more about prospect's truth. Objections
can pertain to price, product, timing, source, service, value, budget, decision making power,
need, physical features (1.e, colour, size etc.)
The various objections that are raised by a prospect may be broadly classified as follows:
1. Hopeless objections. They are called stopper objections in which no solution could be

found like-()No need, (in) No If you


Money. talk to
a person purchasing a car and he
about
and he has no money, his objection is valid. The
tells you that he has just gone into bankruptcy,
salesman in such cases will stop the sales talk.
semi-concealed
semi-concealed objections. The concealed and
2. Hidden, concealed and takes refuge
objections are in the nature of excuses. An excuse is,a
screen behind which a
buyer
to evade the decision of purchasing. In hidden objection, the prospect asks trivial, unimportant
conceals his feelings beneath a veil of silence. The salesperson must ask the
questions and
and carefully isten in order to understarnd the prospect's real objection. Successtul
questions
ignores excuses completely.
.

salesman
3. Objections that can be satisfactorily answered (Real objections):
Whether satisfied with the present supplier

Price objections. the company and its product.


Based on experience with
account of unpleasant
salesman. De
On
in Personal Selling. The various objections raised by prospects may
Types of Objections
classified into the following categories:
of objection the prospect doubts whetne
Product or Service Objections. In this type salesman must, theretore
() fulfill his needs or not. The
the product or service can the needs.
ase
that the product can fulfill
convince the prospect by demonstrating
opinion, etc., can be used for this purpose.
histories, testimonials,
trial use, expert
91
UNIT VI: Personal Selling Process
proauet of the
Here the buyer thinks that the value or price
Price
is
or
ValuetheObjections.
not worth need it fulfills. To counter such an objection, the salesman may
the prospect about the superiority of the product
justity
rival producls.
convincing
Dy example,
tne PreFor a complainant aboul the higher price of a copier is sati
ied

by talking about its greater durability, the longer warranty and repair laciines
ne
can the purchase memo to the sale price. Alternatively,
justify
salesman aiso show
salesman may orer cheaper varlations of the product or offer some discount.
Quality Objections. Sonme prospects raise objections about the quality, design s
colour, durability, packaging, etc. A wise salesman can handle such an obyection
can
orders, expert opinion, etc. about the product. He
showing laboratory tests, export
highlight the plus points by comparing the product with rival products.
i) Hidden Objections. Frospecis often hide their real reasons for not buying and may
mention phony reasons. The hidden or concealed objections are exçuses behind whicn
the prospect takes refuge to evade buying decisions. Inteligent salesmen ignore these
excuses and try to conyince the prospect. They ask questions that keep the prospert
talking and thereby discover hidden objections.
)Procrastinating Objeetionis. "Let me think over it", "I have to discuss it with my boss,
etc. are examples ot such objections. These are difficult to overcome. The salesman
should not argue and otfend even it the prospect is dead wrong. A salesman can win
an argument only to lose the sale. The salesman should find out the reason for the

delay and pointObjections.


out the advantages of making the purchase
kind of
decision immediately
faced when callingg
vi) Competition This
objections are on new

customers. he new prospects ind their present suPpliers satistactory and are
unwilling to change. "T have been using a pears soap and why should I change Sucn
an objection can be ottset by pointing out the additional benefits. One might describe
new feature or benefits that competition does not provide. This requires thorough

knowledge 0r competifive products.


Methods Hanalng
of Direct oujections. Ihe common techniques
used to meet objections are as follows:
() The Denial Method. Normally a salesman should not contradict the prospect.
the woolen cloth is a mixture of
But when the
prospect makes a false statement (eg.,
cotton and the salesman can submit a proof that it is 100 per cent wool. But
wool),
direct denial should be polite.
Therefore, the
(i) The Indirect Method. Most buyers do not like a flat contradiction.
salesman may stoop to conquer. He diplomatically side-steps by saying "what you say
etc.
many cases but in this particular case..",
is true in returns
Method. In this method, the objection hurled by the prospect
The Boomerang
(in) to him in the torm ot a reason why he should buy. or exaniple, the prospect says"
that is need
have never used an ipod and the salesman immediately replies why you
it." But it should be done with care.
salesman admits the validity of the
(0) The Compensation
Method.
this method,
Inbenefit the for it. A prospect might
but points out some that will compensate
objection The agrees but tactfully
that used
the woodwere in the table not teak.
is
salesman
object out that if it teak the would be ten times. The low
price price compensates
points
for the lower quality.
(P) The Question Method. The question form of handling objections may make the
For examnple, the prospect says "T ike the quality but
prospect answer his own objection. "Mr. you always travel
executive
its costly".
too Don't The salesman may replay prospect
class." you think the pen you are having is below your starus:
and pass off the
Method. In some cases, a salesman may just smile
(i) The Pass-up and pass on to
objection. Altermatively
he
may pretend not to heard objection
have the

But this method is justified only in case of flimsy objections.


(Uin) Yes point.
The next
the Method. This method is perhaps most popular for handling an objection.
to
but then makes a presentaion
The salesperson agrees with the prospece's objections
the product.
Dring about the customer to ultimately buying
(D) The Comparison Method. In this technique the salesperson compares it with something

that is acceptable.
92 Shiv Das DELHI UNIVERSITY
SERIES

of satishied buyer 1s
stated to
e a s e History Method. Here example offs.
a
an
ffset the
objection. or
Why do
prospects raise objections? Discuss the various types objections raiseded b
them.
Or
[2010
scuss the various types of objections raised by pros5pecis.
2018
OSPects object because of the following reasons
be afraid of purchasing the wrong type ot proauc
hey may
() They seek more information.
(n) His concerns are not answered and he is not satished with the explanations given b
the salesperson.
H e is dissatisfied with the present supplier and his services.
A t times, prospects object because they are resistant to change
( They may raise objections as they doubt the company's credibility.
n e n all or part of the presentation is misunderstooa
1 ) Objections are raised on technical grounds on which they are very confident.
p e s of objections. Objections offer an opportunity to the salesperson to learm more
about the prospect's needs. Objections can pertain to price, product, timing source, service,
adeDudget, decision making power, need, physical features (colour, s12e, etc.). The various
0jections that are raised by a prospect may be broadly classified as under
Hopeless objections. These are also called stopper objections in which no solution can
be found like "No need" or "No money".
(7) Cancelled and Semi-cancelled objections. An excuse is commonly used by the prospect
tr hiding/cancelling his real reasons for not buying
(1) Objections that can be satisfactorily answered (real objections). These relate to:
a) Buying decisions (satisfied with the present supplier)
5ased on price objections-price, terms of delívery, service and many others.
C5ased on experience with the company and its products.
) 5ased on unpleasarnt salesperson. Salesmen should be alert to discover any
personal weakness or unfortunate mannerisms that results in unfriendly feeling
on the part of the prospects.
An efficient salesperson tries to read in between the lines to find the prospect's true objectives
Q.10. Why do prospects raise objections? How should the salesperson overcome the
following objections? 2007
(a)The price is too high".
2012, 2013
(6) "I have to ask my husband before I purchase the product". 2012
is too short.
() Your warranty period
(4) I do not want to,do business with your firm.
[2013
2013
Ans. Sales people often think that objections indicate customer resistance. "The
customer
doesn't like my product, "ts not what he s looking for", "may be ie's not the right time .
the case.
However
Here
that's not always reasons
eleven
are dijferent why customers come up with objections:
1. Assertiveness. The customer 1s probably already
using a similar product or service
another producer that ne s quite nappy with and now a stranger comes in, telling nimo e
should change what he's doing. Not so fast!
2. Fear of change. Often customers know they will have to make
a change eventually if
tney
don't want to get left behind. However, all changes come with discomfort and that is exacuiy
why they sometimes choose to stick with what they know.
3. Laziness. Some customers are just lazy and don't find the energy that is required
implement your solution.
4. Divergence of views. The customer knows that t
you have a good product, but he does
agree with your solution. usually there are different philosophies and approaches to getto
same result. If your solution doesn t it the customers
philosophy, he will decline the
5. Lack of
orre
budget. Sometimes
customer really wants to
a
buy your product or service D
simply hasn't got the money to do so. Ihis leads to postponement, but as we all know:
these days is none of these days.
UNIT VII: Personal 93
Selling Process
Delay t the purchase. The customer is genuinely interested in what you have to offer, but
eason o or another he can't buy right now. For example, because his decision
on woula go
he vision of a supenor 1o avoa the confrontation with his boss the buyer declines tne
to
hut he is hoping to conme dackthe your offer later.
ebunformation. Regularly objection is actuallya request for additional information.
1 MOt customers are not communication experts, their sounds like objecio
request
A&Car deal. The customer wants to buy, but he also wants to check whether an
he is getting
&

hebesinsecurities. Some customers doubt or hesitate because they are insecure by nature.
de their
re. insecurines tney raise objections. This is easier than admitting the fact that they
Toha
Confirmation. In. this case it is not about doubt. The customer has already made a
1 b u t he wants to see it confirmed. If the salesperson successfully handles the objections,
Jecisrts the customer s beliet that he is on the right track.
this s Test
the salesperson. For most professional buyers the competence and commitment o
ne

11
lesperson are impotant buying criteria. They will come up with objections to test the
the

ea n should overcome the following objections:


The price is too high. Convert the statement to a question.
have the
alesperson: IOu Itave
DrOught up a
good question" or "Many people same

uestion
Convert the initlal Stdtement or objection to a question.
Conver

the
sperson:Ine queston here is whether or not our produce's benefits are worth
aespe t that correct?"
additional cost. Isn
f the prospect agrees, tnen the question can bë answered
then have the prospect Testate the question.
f the prospect aoes not agree,
) 1 have
to ask my husband / wite This is also a common 'getout
free excuse. A good
would be to ask when the husband/wife would be
a in this situation,
ay to approach customer that the customer purchase
available to come to
the
store to get the sale going. You can suggest
or service as a 'surprise
tor
his/her spouse. Most of the times, the customer will the
go
the product to the phone. Sometimes,
ahead and call the signihcant
other
to get the okay purchase on
to visit the store.
when they both will be available
customer will
set a day and time with you in the store because you will have
a

the husband down there while the wite is still


Try to get the doesn't
sale if she leave.
better chance
of getting
A wise salesman handle such objections by
can
is too short. on the
Your warranty period orders, expert opinion
etc. focussing the discussion
not have to
laboratory tests, export
showing that "the product is so good
you will
factor of the company simply by saying
quality calling new

get it repaared or exchanged. firm. This objection


is faced on when
business with your to
4) I do not want to do and ifthey are unwiling
find their present suppliers satistactory One might
any.
out the additional benefits,
These prospects
Customers. be offset by pointingg
Such objections can other company does not provide.
Cchange. benefit that the raised by customers
a new feature or objections
describe handle the following (2011
salesman how would you
11. As a
at the end of a sales-presentation?
) Over-priced product
) Poor quality product
No money
for buying product and its products.
with the company
bad experience The
rast handling an objection.
Ans. Handling the Objections
method is perhaps most
popular for s t a t e m e n t that
offsets the
makes a
Method. This but then
es prospects
objections
agrees with the materials so 0ur
obiec but we use higher quality
objection: higher than our competitors
u r prices are slightly save money m
the long run. showing laboratory tests, export
S onger and you actually such an objection by
A can handle
A wISe salesperson
UNIVERSITY SERIES
94 Shiv Das DELHI

opinion etc. about the product. He can highlight superior points by comparing
orders, expert
the product with rival products. benefits that
points out
some
but
to the validity of the objection
The salesperson admits for the lower quality
for it. The low price compensates an objection.
will compensate customer (buyer) is
stated to offset such
of a satisfied
ne IFexperience for a cleaner, what pro5pect intormation
vaccum

you are a sales representative How will you make the


. 12. want to obtain presentation?
prior to making sales
a
woula
you and handle various (2013
types of objections7 the following areas bedore he/she
presentaion should have prior knowledge of
Ans.
Any sales person
moves into the field:
about the product herein, vaccum the cleaner should
information. Information
Product like pricing, features, functions, electricity
by the sales person. Questions
gathered earlier/similar products by the company,
be
consumed, product code, available colours, arter sales service
period, warranty perioa,
repair
and exchange services, guarantee
sales
should be clear to the person.
options etc. enough to compare, contrast and
customers are smart
(17) Market information. These days should have all the knowledge
Thus the salesperson
about other brands also. available in the
research and all the supplementary products
the competing brands in comparison to other
about state the usp of the product
market. He/she should clearly
brands/products.
related information. The salesperson should
have knowledge (in brief
) Company
financial status, its brand image.
Since no one will like to buy a
about the company's services.
after sales
of an insolvent company as it will have issues in
product
shouldhave a clear knowledge about the
(iv) Customers information. A sales person lifestyle, income, their
demographics of his/her prospective buyers,
Information about
makes a presentation in front

gender etc. should be available. For example, if he/she the need


him to close a deal as
a studying bachelor then it is extremely: difficult for
of
for a vaccum cleaner for him is nil. sale thus while making
A good presentation is a key to a successful
Making presentation.
a
account:
should be taken into
a presentation following points brief and concise.
and short, It should be clean,
Keep simple
it
Talk the language of the prospective buyer
relation.
Try to establish a friendly
on the need and problem
of the prospect.
Focus the presentation credible.
in the presentation should be
Each statement given vaccum cleaner it should be
"this product will
Offer a benefit. For example, in case of children a
the microbes and dust in' your house thus giving your
particles
nullify
healthier environment to
small gift can make the prospect feel obliged
Give something of value. Accepting a

listen for a few minutes.

Handling objections,
made by the prospect.
Directly denying the false statements must about other products but this
Indirectly contradicting by saying "you be right
solution".
cleaner is the actual
the objections of the
vaccum

The compensation method: In this the salesperson would justify


for it. For if the customer says that Philips
example, vaccum
buyer by compensating that it actually demands double the price
for it just
cleaner is the best, then you can say
because of its brand value. smiles ana
method is the one in which a salesperson simply
Other methods: Pass up
not heard the question.
pretends as if he/she has with customer? Explain
Q.13. How does 'Closing in
the Sale' help building relationship
available to salesperson that help him in making an
effective close
the closing techniques [2011
Or 2012, 2016, 2017
Write short note on 'Closing the sale'.
Or
UNIT VIl:
Personal Selling Process
is
What i meant by "Closing the sale"?
(or Discuss briefly the
(o closing
Cclosing
tne sale
the
effectively. various methods that can be
A to mean
sale means the
process of usea
of the making
achievement A desired outcome , salesmanship it is used more
sale.
a
In 2015
eniring signatural
a
closing. which may be
oract)oning
ha demand. In
or
delaying
sale
the action. In involves persuading the exchange of
money
sinort in
this prospect
stage prospect is turned into
a to act
right no
reaale can lbe concluded. This inis phase of
is the salesmanship customer
sale can a
that a the wno
evious stages of the most prospect makes decisiona

A n established a seling process aim important stage in the personal


to buy so

rapport with the


at
closing the sale. selling process.
sbiections, the salesPerson 1s prospect,
Ance the prospect to place an order ready to ask for thedemonstrated the
order. The main product and
handiea
or to aim of the
close
sign order form.
the is to

Onalesperson
The must not move too Closing the sale is the
logical
fast even if the
should be
used; it
prospect
of the effective asks ior opinion whereas close asks for decision.
close an gives positive
a
a signal. A trial
( Assumption techniques closing given below:
of are
a

method. 1he salesman assumes that the


starts taking.the order by
we deliver? asking such questions as: Whatprospect is
going to buy. He
size do you want? When
can
(n The build-up
method. The closing
process. It is suited to the prospect decision
is one of the
affirmations during the
made by the salesman.
who is
willing to agree with the logical selling
statements
(i)Summary method. The benefits that the prospect has
summed up and the buying action is suggested. already acknowledged are
(io) Narrowing the choice. When the
wide range of products the salesman prospect finds it difficult to reach a decision due to a
has shownm least interest. This may remove the varieties in which the
the helps prospect to make the choice. prospect
0.14. Describe the role and task of sales person in
a
Ans. Closing the closing the sale. 2017(R)
sale. After explaining the
product and its
benefits,
ty to close the sale that is,
obtain the customer's agreement to buy. The salesperson
a
should
periodically the prospece's willingness to buy. sales-person
venture may
a
rial close to test
By posing some
"either-or questions, a sales-person can bring
the
important because it
gives the presentation to a head. The trial close is
sales-person an indication of how near the prospect is to a
decision. The trial close also tends to bring out the buyer's
encourage buyers to state their objections. Then
objections. A sales-persorn should
the objections and to bring out additional the sales-person has the opportunity to meet
product benefits or
stated points. A sales-person must uncover the real objections beforere-emphasize the
previously
being able to close a sale.
Q. 15. The objective of personal selling is not to close a sale but build long term
relationships. Elaborate. 2010, 2018
Ans. The long-term objective of personal selling is building relationships to prevent customer
atrition, increase repeat business and promote word of mouth referrals. Representatives must
learn that the sale is not over when they get the order. Good sales representatives follow up in
various ways. They make certain that they have answered all the buyer's questions and that
the buyer, understands the details of the contract. If the merchandise is delivered at a later date,
the representatives are present at the time of delivery or call soon afterwards to ensure that
everything is in order.
The follow-up step of the sales process has become critical to the success of contemporary
sales organisations. Instead of focussing on one-time transactional sales, today's salespeople
work to build and maintain long-term mutualy beneticial partnerships with their customers.
's a fact that customers would never form partnerships with organisations whose salespeople
forget about them after the sale. Organisations should realise that it is much more expensive
to acquire new customers than it is to retain existing customers. So, although generating new
accounts is still important, salespeople must be careful not to sacrifice effective follow-up for
prospecting. Further, effective follow-up essentially consists of asking questions to customers
inan ongoing attempt to monitor their eeds. Thus, when dealing with-loyal customers,
salespeople must continually revisit the need assessment siep of the sales proces. Whether
Shiv Das DELHI UNIVERSITY SERIES

employee, level good tolilow-up 1s the key to


managed by a salesperson or an operational more
Dusiness TEople truly
clientele. Satisficd customers voluntarily provide
Duilding a
loyal
appreciate being served by good salespeople.
Q.16. Write notes on:
2007 (R&E), 2017
(a) Approach 2007(R)
(6) Presentation 2007(R), 2009, 2016
Handling objections
(d) Customer follow-up
2007(R&E), 2009, 2012, 2015, 2017
2011, 2015
) Demonstration
(a) Approach. It is
Ans. to attract attention and generate curiosity of the prospect.
the sales.
to start out
If
be
the right approach might by
Person was referred to the prospect by a customer,

mentioning this common acquaintance.


me appronch. Or a
sales-persOn mignt Suggest the
this is called the 'So and so sent
ometimes statement. After attracting
the
Prospects attention,
product benefits by making some startling talk. The
representative
sales hold it and stimulate a desire for the product
can
a sales with

he show how the product will benefit the


prospect.
sales-person must always should try to find out the personal
habits and preferences of
(6) Presentation. Sales-person can, so that they will be able
should to get all the information they
a
prospect. Sales-people try
to tailor their presentations to individual buyers.
presentation
sales-person can design sales
a
information, a
With the aPpropriate pre-approach to use a canned
Some companies train their sales-people
that will attract the prospect's attention.
to cover all points set by management.
sales talk i.e., a memorized sales presentation designed
the same presentation, verbatim
or with minor
changes. Now-a-
All representatives give and tailored for
is made. Such presentation can be more personal
days, tlexible presentation
individual customers' needs.
the sales-person may periodically
(Handling
venture
objections. As part of the presentation,
a trial close. The trial close tends to bring out the buyer's objections. A sales-person
should encourage buyers to state their objections. It provides the sales-person an opportunity
to meet the objections and to bring out additional product benefits. The toughest objections to
answer are those that are unspoken. A sales-person must uncover the real objections, and try
sale.
to satisfy the buyers before being able to close a
(a) Customer follow-up, Representatives must learn that the sale is not over when they get
the order. Good sales representatives follow up in various ways. They make certain that they
have answered all the buyer's questions and that the buyer understands the details of the
contract. If the merchandise is delivered at a later date, the representatives are present at the
time of delivery or call soon afterwards to ensure that everything is in order.
The follow-up step of the sales process has become critical to the success of contemporary
sales organisations. Instead of focussing on one-time transactional sales, today's salespeople
work to build and maintain long-term mutually beneficial partnerships with their customers.
It's a fact that customers would never form partnerships with organisations whose salespeople
forget about them after the sale. Organisations should realise that it is much more expensive
to acquire new customers than it is to retain existing customers. So, although generating new
accounts is still important, salespeople must be careful not to sacrifice effective follow-up for
prospecting, Further, effective follow-up essentially consists of asking questions to customers
in an ongoing attempt to monitor their needs. Thus, when dealing with loyal customers,
salespeople must continually revisit the need assessment step of the sales process.
Whether managed by a salesperson or an operational level
employee, good follow-up is the
key to building a loyal clientele. Satisfied customers voluntarily provide more business. Peopie
truly appreciate being served by good salespeople.
(e) Demonstration. During demonstration, the sales person explains the
utility,
quality, service etc. of the product. It provides an opportunity to the customer to verify the facts performance
about the product. It seeks to induce the customer to desire the
To be effective, a demonstration must product or service
the satisfy following requirements:
It should be clear without leaving any doubt in the mind of the prospect. It should
cover all the relevarnt aspects.
UNIT VI: Personal
It must give
Selling Process 97
.

so as to boost his
opportunity
to the
prospect to touch, feel and handle the
confidence in the product himselft
The language used in product.
technicalities.
demonstrafion should be casy to understand
and free from
Description and demonstration should be
o 17. A sale is
made neither in the minds of properly coorclinated.
ds of buyers. Discuss salespersons
in the light of the process of effective over-the-counter, but
nor
the in
Ans. Personal selling8 is the individual selling. 2007(E)
the mass, impersonal communication of
personal comnunication of information in
l . Personal selling is more advertising, sales promotion and other contrast to
ntations to fit the needs andtlexible than these other tools. Salespeople can promotional
tailor
behaviour of individual customers. their
comers reaction to particular sales approach and make
a
Salespeople can see their
ally can be focussed or pinpointed on adjustments the spot. Selling on

e to actually make a sale. Otner torms of prospective are


customers. The goal of
personal selling
promotion designed to move
toa sale. closer a
prospect
There are two kinds of personal selling:
() Customers come to the salespeople. It means
involves retail-store selling.
across-the-counter selling. It primarily
(i) Salespeople go to the customers. It means outside sales forces, ie., the sales
representatives are engaged in feld selling. These people sell in person at a customers
place of business or home.
Outside sales forces usually represent producers or wholesaling middlemen, selling to
business users and not to household consumers. The personal selling process is a logical
sequence of tour steps that a salesperson takes in dealing with a prospectiye buyer. It is:s
Prospecting> Pre-approach > Presentation>Post-sale services
This selin8 process leads hopetully to some desired customer action and ends with a follow-
up to ensure customers satistaction. The desired action usually is to get the customer to buya
good or a service. Need assessment is the stage in which the salesperson must discover, clariy
and understand the buyer's needs. The best way to uncover and understand needs is by asking
questions. More questions salespeople ask, the more likely it is that they will be successful.
Salespeople ask questions in a logical order. The situational questions should beasked irst
value
followed by the problem discovery questions, the problem imipact questions, the solution
questions and then the confirmatory questions. Each ype naturally leads to the following type
in about the solutions the salesperson has
and each one helps build the buyer's interest hearing and more
to offer. Most successful salespeople
are those
who use fewer situational questions
problem discovery, impact and questions.
solution
value moves into the
After assessing the needs and desires of the customer, the salesperson
service
of those product and/or
is primarily a discussion
presentation. The presentation indicated are important. The goal
of
that the customer has
features, advantages and benefits or service being sold will satisty
the customer that the product
the presentation is to convince
that of a competitor.
the customers needs better than describe how
characteristics of the product or service, advantages
Features describe the describe how the
or service, and benefits
the performance of the product he
the feature changes advantage that a salesperson presents,
For feature and each
advantage will help the buyer. or more benefits of that feature to the buyer. Benefits shoulad
or she should also present
one must be in
the customer. The presentation
those that address specific
mentioned
needs by
the presentation must be
credible. Prove
be Each statement made in
it. The real key to
he janguage of the prospect.
until the prospect believes
is not complete
points one bycritical
one. A point
lies in this credibility. sale is made neither in the minds
Successful selling discussion that a
clear from the foregoing The buyers/prospects
Thus, it is crystal minds ot buyers.
the
0r nor over-the-counter,
but
n theshall meet his/her requirements;
it will satisty
salespersons that the producl the
must be thoroughly convinced to buy and once the
decision is taken to buy,
makes the decision that the product/
needs. The prospect the buyer/prospect
us is to c o n v i n c e credibly
Sales will flow. So, personal selling
needs/requirements.
Service will satisfy his/her
8 SERIES
Shiv Das DELHI UNIVERSITY

18. Describe in
brief various steps in theOrpersohal selling proces 2013
Explain the process of effective selling (2013 (Nov), 2018
Or
process. How
would the sales presentation differ i.in
describe the personal selling
they following cases (2014
Selling a Life Insurance polic
(i) Selling Laptops
ii) Presenting a new drug to physicians
the following stages. Prospecting, Pre-approach
ne Process of Personal Selling has Objections, Closing Sale and Follow-un
or
APproach, Presentation, Demonstration, Handling customer who has an unidentiied need, the
Frospecting. Refers to finding the potential
and the willingness to buy
the
product. Ihey are the persone
dolty to buy, the authority to buy can be done by
methods like cold-calling, refeal
who can be converted into buyers. Thismail and telecalling personal contacis, advertising or
current/ former customers, direct
from
by trade shows and exhibitions.
Fre-approach. The act of understanding the prosp cts and plannin8 tor the approach is caled
tne
the first call/presentation to the prospect, salesperson
as pre-approach. Before making
should know about the demographi s of the prospect.
face-to-face, then this stage
When a salesman comes in contact with the prospect
Approach.
Is called as approach. Customers are generally busy and not interested in istening to the

salespersons thus approaching is a difficult step.


Sales Presentation. The features and benefits of the products are explained to the prospect

Main purpose of the sales presentation is to create a desire tor the product. Lots of prior pre-
paration is needed to make a presentation. A.salésman should note down all the selling points,
down interesting examples etc. to support the talk
arrange them in a logical sequence, write
Demonstration. During this stage, salesman explains the utility, pertormance, quality,
an oPportunity to the customer to verity
the facts stated
of the It
product. provides
service etc.
about the product.
Handling Objections. Objections are a necessity of the core selling process since they
indicate the interest of the prospect in the product. Also it provides a chance to the salesman
to prove his point and if he cant then he should improve upon his facts. Thus'a wise salesman
and tries to remove them from the prospece's mind.
encourages and welcomes objections
Closing the Sale. Now the customer is ready to place the order. The selling procèss depends
upon this stage thus this is the most crucial stage.
Post-sale Action. Efective follow-up improves the chances of reorders. This stage aomes
under customer relationship marketing.
9 Selling a Life Insurance Policy. While selling a life insurance policy, the sales person
will be following all the eight steps of personal selling process but paying the most
attention on presentation and handling objection stage as a good, impressive and clear
presentation will make the benefit of Life Insurance Policy quite clear to the custormers
And whatsoever little doubts will be there, they must also be satisfactorily made clear
so that the customer becomes confident of buying the policy.
(i) Selling Laptops. A Laptop is a luxury consumer product so it's utility and features whuch
make it better than other PCs must be stressed along with giving clear demonstraton
of its use to the customers. An effective feedback in the form of regular follow up "

also be required in this case.


(ii) Presenting a new drug to physicians. Physician is the person who will be recommending
the to the efforts must be made to make the new
drug his patients, therefore, all
appear the best in the market. The physician must be convinced about the apthes o
dru
drug in handling the disease along with the sides effects it has. Unless and until all t
objections of the physicians are handled satisfactorily, the new drug's presentado
not be successful.

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