ADVERTISING AND SALES PROMOTION

Advertising is the dissemination of information by non-personal means

through paid media where the source is the sponsoring organization. The
messages carried in-medias. Advertising objectives serve as guidelines for
the planning and implementation of the entire advertising programme. It
helps the consumer to save their time in purchases.
It helps the manufacturer sell their products. The relation between
wholesalers and retailers is improved through advertising. Sales
promotion consists of diverse collection of incentive tools, mostly short-
term designed to Sales promotion tools vary in their specific objectives. A
free sample. Stimulates consumer trial, while a free management advisory
service comments a long-term relationship with a retailer stimulates
quicker and / or greater purchase of a particular product by consumers or
the trade. Rationale of sales promotion may be analyses for Short-term
results, Competitive Pressure, Buyers’ expectations, Low quality of retail
selling. There is wide acceptance that sales promotion is one of the most
mismanaged of all marketing functions. The report contained advantages,
purpose of advertising and sales promotion. It also discussed rationale,
plan preparation, integrating and planning advertising and sales
promotion

INTRODUCTION

Adverting is only one element of the promotion mix, but it often

considered prominent in the overall marketing mix design. Its high
visibility and pervasiveness made it as an important social and encomia
topic in Indian society. Promotion may be defined as “the co-ordination of
all seller initiated efforts to set up channels of information and persuasion
to facilitate the scale of a good or service. Promotion is most often
intended to be a supporting component in a marketing mix. Promotion
decision must be integrated and co-ordinated with the rest of the
marketing mix, particularly product/brand decisions, so that it may
effectively support an entire marketing mix strategy. The promotion mix
consists of four basic elements. They are:-

1. Advertising
2. Personal Selling
3. Sales Promotion, and
4. Publicity

1. Advertising is the dissemination of information by non-personal

means through paid media where the source is the sponsoring
organization.
 2. Personal selling is the dissemination of information by non-personal
methods, like face-to-face, contacts between audience and
employees of the sponsoring organization. The source of
information is the sponsoring organization.
3. Sales promotion is the dissemination of information through a wide
variety of activities other than personal selling, advertising and
publicity which stimulate consumer purchasing and dealer
effectiveness.
4. Publicity is the disseminating of information by personal or non-
personal means and is not directly paid by the organization and the
organization is not the source.

DEFINITION OF ADVERTISISNG

The American Marketing Association, Chicago, has defined advertising as

“any form of non-personal presentation or promotion of ideas, goods or
services, by an identified sponsor.”

FROM THE ABOVE DEFINITIONS :

• Advertisement is a MESSAGE to large groups.

• It is in the form of NON-PERSONAL COMMUNICATION.
• It persuade the GENERAL PUBLICS to purchase the goods or services,
advertised.
• It is PAID FOR by advertiser to publisher.
• Advertising messages are IDENTIFIED with the advertiser.

Advertising Objectives

Each advertisement is a specific communication that must be effective,

not just for one customer, but for many target buyers. This means that
specific objectives should be set for each particular advertisement
campaign. Advertising is a form of promotion and like a promotion; the
objectives of advertising should be specific. This requires that the target
consumers should be specifically identified and that the effect which
advertising is intended to have upon the consumer should be clearly
indicated. The objectives of advertising were traditionally stated in terms
of direct sales. Now, it is to view advertising as having communication
objectives that seek to inform persuade and remind potential customers of
the worth of the product. Advertising seeks to condition the consumer so
that he/she may have a favourable reaction to the promotional message.
Advertising objectives serve as guidelines for the planning and
implementation of the entire advertising programme.
Advantages of Advertising
• Advertising is considered multi dimensional.
• It helps number of marketing activities.
• It is a technique of sales promotion.
• Sales volume is increased by advertising.
• It helps and supports the salesman in selling the products.
• Consumer knowledge about the product is increase by advertising.
• It helps the consumer to save their time in purchases.
• It helps the manufacturer sell their products.
• It helps quick selling is possible which leads to more production at less
cast.
• The relation between wholesalers and retailers is improved through
advertising.
• Advertising introduces new products, stimulates markets regarding the
existing Product and repeated sales

BENEFITS TO MANUFACTURERS :

1. It increase sales volume. On the one hand, it reduces the cost of

production and,on the other increases profits.
2. It helps easy introduction of products into the markets.
3. It helps to create an image and reputation not only of the product
but also of the advertiser.
4. Maintaining retail price is possible.
5. It helps to establish a direct contact between manufacturers and
consumers.

BENEFITS TO WHOLESALERS RETAILERS :

1. Easy sale of the products is possible since consumers are aware of

the product and its quality.
2. It increases the rate of the turnover of stock.
3. It supplements the selling activities.
4. The reputation credited is shared by the wholesalers and retailers
and alike.
5. It enables them to have product information.

BENEFITS TO CONSUMERS :

1. Advertising stresses quality and very often prices. This forms an

indirect guarantee to the consumers. Further more, large scale
production assured by advertising enables the seller to sell the
product at a lower cast.
2. It provides an opportunity to the customers to compare the merits
and demerits of various substitute products.
 3. This is perhaps the only medium through which consumers could
know the varied and new uses of a product.
4. Modern advertisements are highly informative.

BENEFITS TO SALESMEN :

1. Introducing the product is made easy.

2. Advertising prepares necessary ground for a salesman to begin his
work. Hence sales efforts are reduced.
3. The contact established with the customer by a salesman is made
permanent through advertising.
4. The salesman can weigh the effectiveness of advertising when he
makes a direct contact with the customer.

BENEFITS TO COMMUNITY :

1. Advertising in general is educative in nature. In the words of the late

president Roosevelt of the USA, ‘Advertising brings to the greatest
number of people actual knowledge concerning useful things; it is
essentially a form of education and the progress of civilization depends
on education’.
2. Advertising leads to large scale production creating more employment
opportunities.
3. Advertising has made more popular and universal the uses of such
inventions as the auto mobiles, radios, various household appliances.
“Advertising nourishes the consuming power of man. Its creates wants
for a better standing of living. It spurs individual exertion and greater
production”.

CONCEPT OF SALES PROMOTION

Sales promotion consists of diverse collection of incentive tools, mostly

short-term designed to stimulate quicker and / or greater purchase of a
particular product by consumers or the trade.. Sales promotion includes
tools for consumer promotion (for example samples, coupons, prizes, cash
refund, warranties, demonstrations, contest); trade promotion (for
example buying allowances, free goods, merchandise allowances, co-
operative advertising, advertising and display allowances, dealer sales
contests); and sales-force promotion (for example bonuses, contests,
sales rallies).Sales promotion efforts are directed at final consumers and
designed to motivate, persuade and remind them of the goods and
receives that are offered. Sales persons adopt several techniques for sales
promotion.
Definitions of Sales Promotion
W.J. Stanton defines sales promotion as all those activities other than
advertising, personal selling, public relations and publicity that are
intended to stimulate customer demand and improve the marketing
performance of sellers.

Purpose of sales Promotion

Sales promotion tools vary in their specific objectives. A free sample

stimulates consumer trial, while a free management advisory service
comments along-term relationship with a retailer. From the marketer’s
perspective, sales promotion serves three essential roles it informs,
persuades and reminds prospective and current customers and other
selected audiences about a company and its products. Because
distribution channels are often long, a product may pass through many
lands between a producer and consumers. Therefore, a producer must
inform middlemen as well as the ultimate consumers or business users
about the product. Wholesalers, in turn must inform retailers and retailers
must inform consumers. As the number of potential customers grows and
the geographic dimensions of a market expand, the problems and costs of
informing the market increase.

Objectives of Sales Promotion

The basic objectives of sales promotion are:

i) To introduce new products :

To induce buyers to purchase a new product, free samples may be
distributed or money and merchandise allowance may be offered
to business to stock and sell the product.

ii) To attract new customers :

New customers may be attracted through issue of free samples,
premiums, contests and similar devices.

iii) To induce present customers to buy more :

Present customers may be induced to buy more by knowing more about a
product, its ingredients and uses.

iv) To help firm remain competitive :

Sales promotions may be undertaken to meet competition from a firm.
 v) To increase sales in off season :
Buyers may be encouraged to use the product in off seasons by showing
them the variety of uses of the product.

vi) To increase the inventories of business buyers :

Retailers may be induced to keep in stock more units of a product so that
more sales can be effected.

Types of Sales Promotion

Money Goods Services

Target
Direct Indirect Direct Indirect Direct Indirect
market
Free Guarantees
Stamps co-operative
coupons goods group
coupons advertising
vouchers premium participation
Price vouchers stamps
Consumer money offers events
reduction money coupons
equivalent free gifts special
equivalent vouchers for
competitions trade-in exhibitions
competitions services
offers and displays
Extended
credit Guarantees
Delayed Free group
Dealer Stamps,
invoicing gifts participation
loaders coupons
sale orTrial events Free
Trade loyalty Vouchers for
return offers services
schemes services
coupons Trade-in Risk
incentives Competitions
vouchers offers reduction
money schemes
equivalent
Coupons
Coupon Coupons Vouchers
Free
vouchers Vouchers points
services
Sales Bonus Points Free Points systems for
Group
force commission system gifts systems services
participation
Money Money Event
events
equivalent equivalent admission
Competitions
Strategic role of sales promotion

Because sales promotion is essentially used as a tactical device, it often

amounts to a series of unconnected gimmicks to lacking any coherence.
Contrary to this advertising has been always considered as a strategic
process of building brand value over the longer term. Compare this
against sales promotion which is commonly used to help the company
retain a tactical advantage.

There is no reason why there should not be a strategy for sales

promotion, so that each promotion increases the effectiveness of the next.

Sales promotion of industrial products

Industrial goods are always sold to other businesses and this has the
effect of changing the emphasis placed on certain elements of the
marketing mix.

It will not be surprising then to learn that suitably adapted most consumer
goods sales promotional techniques can be applied to industrial goods.

SALES PROMOTION PLAN PREPARATION

There is wide acceptance that sales promotion is one of the most

mismanaged of all marketing functions. This can be attributed to the
confusion as to what sales promotion really is - which often results in
expenditures not being properly accounted for. Some companies record it
as advertising expenditure, others as sales force expenditure and others
as general marketing expenditure - while the loss of revenue from special
price reductions is not recorded at all.

The companies can no longer afford not to set objectives or to evaluate

results after the event, or to fail to have some company guidelines. For
example, a 1 Euro case allowance on a product with a contribution rate of
3 Euro per case has to increase sales by 50% just to maintain the same
level of contribution.

In order to manage a company's sales promotion expenditure more

effectively, there is one essential step that must be taken. First, an
objective for sales promotion must be established in the same way that an
objective is developed for advertising, pricing, or distribution.
Advertising, Promotion And The Brand
By now it is clearly understood that The role of Advertising and promotion
In fast moving consumer Good Markets. Advertising has been seen as one
of the primary tools of Brand Building. The high cost and difficulties of
mass advertising are seen as one of the major challenges to fast moving
consumer good brands.

Do All Brands Need Advertising?

The basic assumption is that brands need advertising but some strong
brands apparently do not. Spencer used to spend almost nothing on
advertising, Yet it was an enormously powerful brand. Of course, Both
these are retailers; they have stores which people pass by go into. The
Stores Themselves Are – In Their Way – Advertising, and It Is Difficult to
think of major brands other than retailers those have done without
advertising.

We can safely make two statements about brand communication :

• Every brand must have some means of communicating with its

buyers. This may not be advertising, but it must be direct if it is to
be controllable, and frame can be achieved, but the message has
to be one that its really new and interesting.
• All the means of communication and the messages transmitted
must be Co-ordinate to make some that they are saying the sense
thing, confused consumers don’t buy.

There Is A Price Paradise

The standard model of advertising and the brand suggests that a strong
brand is less sensitive to price than a weaker one. When advertising
increases sales, the average sensitivity to price also increases. In other
words, a seemingly successful campaign has made buyers more sensitive
to price, where as we would expect our brand buyers to be, if anything,
less sensitive.

Integrating Advertising And Promotions

The answer to the problem of conflicting communications must be to

Integrate advertising and Promotion. There are two common sense
reasons for integration.
The First reason is that integration creates synergy. This is a much –
Abused word, but the evidence shows clearly that advertising and
promotion can work together to produce a greater effect.

In addition, The integration of advertising and promotion gives the

consumer a coherent message. If advertising and promotion are to
achieve synergy and to build a cumulative effect in consumers’ minds,
they must be mutually consistent.

Planning Advertising And Promotion

The advertising and promotion plan is only one part of the overall
marketing plan and must fit within it. In order to start the advertising
plan, we need some background – which Is not a very formal restrictive
planning, but for a process of thinking through what the advertising and
promotion are trying to achieve.

From The brand plan we should expect to find the following elements.

• A situation analysis (Where we are and why)

• Objectives (What the brand is aiming for in sales, share and other
targets)
• Positioning (How the brand is positioned in the consumer’s mind)
• Strategy (How the brand is Going to compete in this market)
• Advertising strategy (What role advertising has next period with in
the overall strategy) And
• Budget (What moneys are available to spend on advertising
promotion).
• Advertising objectives must include Long-Term brand building. They
may of Course also include shorter-term tasks such as announcing
a new variation or promotion.

CONCLUSION

Advertising: A firm as its basic of fundamental tool production uses it. It

normally has long-term objectives like building brand awareness or
building consumers loyalty or repositioning a brand. It helps sales by
adding some durable and long-term value to the product. Advertising in
mostly an indirect way for consumer to buy a product.

Sales: It is generally designed to supplement advertising and facilitates

personal selling. It performs the immediate task of increasing current
sales. It aids selling by temporarily changing the existing price value
relationship of the product. Sales promotion is a direct and almost open
inducement to consumers to immediately try the product.

Thus from all the above studies it can be concluded that for the marketing
of any product, the best way to increase sales is through the Sales
promotion rather than advertising. It is so because in advertising a
product there is many criteria’s, which are to be, fulfilled which is not an
easy task. Thus it is easier to increase the sales through sales promotion.