MODULE 5

CHANNELS OF DISTRIBUTION AND PROMOTION

Channels of Distribution
Marketing channel

Marketing channel is a set of practices or activities necessary to transfer the

ownership of goods, and to move goods, from the point of production to the
point of consumption and, as such, which consists of all the institutions and all
the marketing activities in the marketing process.

Marketing channel systems – Traditional and Modern .

According to Stanton , “ A distribution channel consists of the set of people

and firms involved in the transfer of title to a product as the product moves
from producer to ultimate consumer or business user .”

We can define the distribution channel as the movement of goods and

services between the point of production and the point of consumption through
organizations that perform a variety of marketing activities .

Types of Channels

1. Conventional Marketing Channels

These channels are the channels in which the participants operate on
the basis of self-interest , concerned only with the organization from where
they buy and to whom they sell.

a) Conventional Channel for Consumer Products

i) Producer – manufacturer- Consumer or Zero level Channel or
Direct Channel , in which there is no intermediary . Sales are made
directly to consumers , either by mail or by house – to house visits
of the producer’s salesmen .This channel is frequently used in :
a) Perishable goods ( bakery goods ,fruits , vegetables, eggs)
b) High priced products ( encylopaedians , expensive electrical
or other household appliances ) for example AquaGuard by
Eureka Forbes .
c) Cosmetics and perfumes , for example , when Lakme
introduced new range , it used extensive direct sale approach
. Direct distribution is used when aggressive selling is needed
to push up a new product . When product benefits can be
effectively demonstrated and to reach specific target markets .

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 ii) Producer – Retailer _Consumer Channel or level one channels, is
used where the goods to be sold are specialty goods ( such as high
fashion clothing ) or high – class shopping goods . distribution
here takes place, through retail shops of the manufacture , as in
the case of Bata Shoe Company , or Tata steel. In this type of
distribution channel , the manufacture is always in constant touch
with trends in the demand , so that it could be immediately
fulfilled.
iii) Manufacture – Wholesaler – Retailer – Consumer channel , or Two
level channel which is the most widely used channel , where
manufacturers have direct dealings with wholesalers who in turn
sell to retailers and they in turn to consumers. Lower –order
shopping and convenience goods are generally sold in this way .
iv) Producer – Agent – Middleman – Wholesaler – Retailer –
Consumer Channel , or Three level channel which is often used
by relatively small manufacturers with a limited product line
who sell to a widely dispersed market .Here the manufacture uses
the services of the intermediaries to reach the retail market .

2. Vertical Integrated Marketing Channels ( VMS ) or Modern Channels of

Distribution .
These channels are so termed because they involve the coordination
of various organization levels. Such channels are managed by professionals.

They save money for marketers by virtue of their large size, bargaining
power and elimination of duplication of services. The best example of such
channels is the travel industry, which have alliances with chains of hotels
and airlines.
There are three types of vertically integrated marketing channels corporate
system, contractual system, and administered system.
(i) Corporate system, in which a single firm owns both production and
distribution facilities, Tatas, Birlas, Ambani’s with their own
production units and retail shops are the best representatives of the
system. This system gives a firm maximum control over marketing
of its products.
(ii) Contractual system, under which independent firms are employed
on a voluntary basis to develop a more efficient distribution system.
This system works through franchises or retail co-operatives,
voluntary chains. If herein one of members of the system develops a
total marketing approach that can be used by all other members of

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 the system to handle such support services as central buying,
advertising and financing
(iii) Administrative System, where a manufacturer controls the
marketing pf a particular line pf merchandise rather than complete
store operation. Thus it is possible to do because of its financial
strength, its management talent or popularity of its Product lines.
The system reduces friction within the distribution network.

What are the factors influencing selection of Distribution Channel in Marketing

• Nature of Product: The is the first and most important consideration. Product
features, size, shape, colour, durability, perish ability, Value of product etc are
the factors that constitute the product characteristics.

• Perishable items needs strong packaging and shorter channel whereas items
with long life can have longer channels. Size and handling also affects the
channel.

• Odd sizes, difficult handling are often found to have shorter channel. Industrial
machinery, that requires particular customer preference are often sold through
direct channels.

• Customer Characteristics: If the product has got huge customer base and are
geographically dispersed, buying product in small quantities requires longer
channels.

• This is because producers needs to have wide network of retailers and

wholesalers to make the product easily accessible in the local market. For eg
product like Pepsi needs a longer channel.

• Unlike above, industrial products, where customers have preferences

regarding the technology and the functions to be incorporated needs shorter
channel, because the product is needed to be adjusted according to customer
preference.

• Nature of Market: The location and the coverage of the market also determines
the channel selection. If the market is dense, spread across in length and breath,
requires longer channel. Whereas if the product has niche market, the channel
can be short.

• Cost Consideration: The cost of maintaining the channel is also a key

consideration. Every producer would like to have shorted channel, may be
direct channel, but its cost. Now this cost has to be compared with the benefits
derived.

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 • Longer channel, with high number of middleman also tend to raise the price of
the product, because every middleman, looks for his share and wants a larger
share.

• Time: Time taken by the channel to make the product available to the
consumer, is one other factor. Longer channel are often found to take shorter
time.

• This is because the middleman are well versed with the market and are efficient
in distribution of product.

• Keeping a channel short means that the customers have to first look for
distributor and place his orders.

• Availability of Middleman: Availability of middleman in foreign nations, is

one other factor to be considered, specially for industrial product, or product
with high end specification.

• Product which are customer oriented, which are brought regularly, may be
everyday, which is a necessity can use longer channel, as middleman are very
easily available.

• However product with specific technology, industrial equipments, middleman

are not easy to come by. Even middleman needs to be trained with the product
feature thereby marketing the same in their local markets.

• Competition: Manufacturers are often found to use the same channel of

distribution as the competitors are using. If one deviates, other plan for the
same.

• Longer, indirect channels are to be used if the competition is intense, however

shorter channel can be used, if competition is less.

• For eg Industrial product, where the competition is less uses more direct and
shorter channel than the FMCG products where the competition is more

• Technological Factors: The technology component of the product also affects

the channel selection. Products which are not technology oriented can have
longer channels are product Is not needed to be explain to the customers.

• However, if the product is highly technical, requires a shorter direct channel,

as it functioning is to be explained to the consumers.

• Consumption Pattern: Consumption pattern is also a factor to be considered

before designing the channel. If the product is consumed regularly, may be
periodic, then such products should longer channels, as consumers would like
such product to be easily accessible.

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 • People will not like to make great research and run around for such product,
and will buy anything which is easily available.

Other Factors: To end with, there are some other factors like infrastructure in the
foreign nation, political environment, legal regulations, social attitude, culture, values
etc that may affect the selection of the particular channel.

Marketing Channel Design

A marketing channel is a set of interdependent organizations involved in the
process of making a product or service available for use or consumption.

Primary functions of channel members

 To be a stockiest of your product

 To represent your brand in the market place
 To gather marketing intelligence
 To assume risk
 To deliver product and offer post-sales support
 To add value to the sale

Formulating channel strategy: the most crucial aspect is the choice of the level of
service by which an enterprise might seek to secure competitive advantage.

The importance of channel strategy is likely to depend upon the existence of

one or more of following conditions:
1. Deigning the channel structure:

2. Identify the major channel alternatives: considerations need to be given to

 Economic criteria
 Control
 Adaptive
 End user considerations
 Product characteristics
 Manufacturer’s capability and resources
3. Training

1. Channel design decision

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 Designing a channel system calls for analyzing customer needs, establishing
channel objectives, and identifying and evaluating the major channel
alternatives.

a) Analyzing the service output levels desired by customers

In designing the marketing channels, the marketer must understand the output
levels desired by the target customers. Channel produce five service outputs:

Lot size
The number of units the channel permits a typical customer to purchase on one
occasion.

Product variety
The assortment breadth provided by the marketing channel. Normally
customer prefer greater assortment because more choices increase the chance
of finding what they need.

Service backup
The add-on services (credit, delivery, installation, repairs) provided by the
channel.

Waiting time
The average time customers of the channel wait for receipt of the goods

Spatial convenience
The degree to which the marketing channel makes it easy for customers to
purchase the product.

b) Determine the channel objectives and constraints

Channel objectives should be stated be stated in the terms of targeted service
output levels
Channel institutions should arrange their functional tasks to minimize total
channel costs with respect to desired levels of service outputs.

Channel objectives vary with the product characteristics. For example;

perishable products require more direct marketing.
Bulky products, such as building materials, require channels that minimize the
shipping distance and the amount of handling in the movement from producer
to consumer.

Beside the target market, the company’s channel objectives are influenced by
The nature of its product: perishable products require more direct marketing
to avoid delays and too much handling.

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 Company characteristics: the company’s size and financial situation determine
which functions it can handle, how many channels it can use, which
transportation can be used.
Characteristics of intermediaries: intermediaries differ in their abilities to
handle promotions, customer contact, storage and credit. Example: the
company’s own sales force is more intense in selling.

Competitor’s channel: some companies may prefer to compete in or near the

same outlets that carry competitors’ products, some may not. Example: burger
king wants to locate near Mc Donald’s
Environmental factors: Economic conditions and legal constraints affect
channel design decision example: in a depressed economy, producers want to
distribute their goods in the most economical way, using shorter channels.

2. Identify the major channel alternatives

After channel objective have been determined, the company should identify its
major channel alternatives in terms of
 A. Types of intermediaries
 B. The number of intermediaries need and
 C. The terms and responsibilities of each channel member.

A. Types of intermediaries
The firms need to identify the types of intermediaries’ available carry on its
channel work. Marketing intermediaries, also known as middlemen or
distribution intermediaries.
Important part of the product distribution channel.
Intermediaries are individuals or businesses that make it possible for the
product to make it from the manufacturer to the end user, essentially
facilitating the sales process.

Four basic types of marketing intermediaries

(a) Agent: Agent is an independent individual or company whose main
function is to act as the primary selling arm of the producer and represent
the producer to users.
Agent takes possession of products but do not actually own them. Agent
usually makes profits from commissions or fees paid for the services they
provide to the producer and users.

(b) Wholesalers: wholesalers are independently owned firms that take title to the
merchandise they handle.
The wholesalers own the products they sell. Wholesalers purchase product
in bulk and store it until they can resell it. Wholesalers generally sell the

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 products they have purchased to other intermediaries, usually retailers, for
a profit.

(c) Distributors: distributors are similar to wholesalers, but with one key
difference.
Wholesalers will carry a variety of competing products. For instance, Pepsi
and coke products, whereas distributions only carry complementary
product lines, either Pepsi or coke products.
Distributors usually maintain close relationship with their suppliers and
customers.
Distributors will take title to products and store them until they are sold.
(d) Retailers: a retailer takes title to, or purchases, products from other market
intermediaries.
Retailers can be independently owned and operated, like small “mom and
pop” stores or they can be part of a large chain, like 7 eleven. The retailer
will sell the products it has purchased directly to the end user for a profit.

B. Number of intermediaries
Companies have to decide on the number of intermediaries to use. Three
strategic available:
(a) Exclusive distribution
Limited number of intermediaries. It is used when the producer wants
to maintain control over their service level and service outputs offered
by the reseller.
It involves exclusive dealing arrangement which the resellers agree not
to carry competing brands. By granting exclusive distribution, the
producer hopes to obtain more dedicated the knowledge selling.

(b) Selective distribution: only some available outlets in are are chosen to
distribute a product.
The company does not have to dissipate its efforts over too many outlets,
it enables the producer to gain adequate market coverage with more
control and less cost than intensive distribution.
It is appropriate for shopping products, which consumers are willing to
spend more time visiting several retail outlets to compare prices,
designs, styles, and other features of these products. Nike is a good
example of selective distribution.

(c) Intensive distribution: is the use of all available outlets to distribute a

product. It is suitable for convenience product, such as soft drinks,
bread,candy, newspaper etc.because they have high replacement rate
and require almost no service.

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 Multiple channels (ie convenience stores, service stations, supermarkets
discount store) are used to sell these products. Availability of these
products is more important than the nature of the outlet.
For convenience of consumers, store must be located nearby and
minimum time will be necessary to search for the product at the store.

C. Terms and responsibilities of channel members

Each channel member must be treated respectfully and given the
opportunity to be profitable. The main elements are:
a) Price policy: Price list, schedule of discount and allowances.

b) Conditions of sale: Payment terms and producer guarantees.

c) Distributor’s territorial rights: Distributors’ territories and the

terms under which the producer will enfranchise other
distributors.

d) Mutual services and responsibilities: Particularly in franchised and

exclusively-agency channels. Franchiser provides promotional
support, training, record keeping system, etc.

D. Evaluate the major channel alternatives

Each channel alternative needs to be evaluated against economic,
control and adaptive criteria.
(a) Economic criteria
Company need to estimate the costs of selling different volumes
through each channel and the next step is comparing sales and costs
A company compares the likely sales, costs and profitability of
different channel alternatives. What will be the investment required
by each channel alternative, and what returns will result?
(b) Control criteria
The company must also consider control issues. Using
intermediaries usually means giving them some control over the
marketing of the product, and some intermediaries take more control
than others.
(c) Adaptive criteria
The company must apply adaptive criteria. Channels often involve
long term commitments, yet the company wants to keep the channel
flexible so that it can adapt to environmental changes.

3.Training

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 A channel involving long term commitments should be greatly superior on
economic and control grounds. Training the channel members is important.

Training
Training it is a process of providing the intermediaries with specific skills for
performingtheir task better and helping them to correct deficiencies in their
sales performance
Training program creates a Win-Win situation for both individual and the
organization.

Phases of developing and conducting training

Successful program consist of four phases
Training assessment
Program design
Reinforcement
Evaluation

What should the content of the training be?

 Attitude toward selling and toward training
 Knowledge of the company
 Product knowledge and application
 Knowledge of competitive products
 Knowledge of customers knowledge of business principles
 Selling skills
 Relationship-building skills

Promotion mix strategy

Promotion

Promotion is one of the market mix elements, and a term used frequently
in marketing. There are different ways to promote a product in different areas of
media.

Promoters use internet advertisement, special events, and newspapers to advertise

their product.

Many times with the purchase of a product there is an incentive like discounts, free
items, or a contest. This is to increase the sales of a given product A promotional mix
specifies how much attention to pay to each of the five subcategories, and how much
money to budget for each.
Elements of Promotion

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Advertising - Presentation and promotion of ideas, goods, or services by an identified
sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures and
catalogues, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and
emails.

Personal selling - A process of helping and persuading one or more prospects to

purchase a good or service or to act on any idea through the use of an oral
presentation. Examples: Sales presentations, sales meetings, sales training and incentive
programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face selling
or via telephone.

Sales promotion - Media and non-media marketing communication are employed for
a pre-determined, limited time to increase consumer demand, stimulate market
demand or improve product availability. Examples: Coupons, contests, product samples,
rebates, self-liquidating premiums, trade shows, and exhibitions.

Public relations - Paid intimate stimulation of supply for a product, service, or

business unit by planting significant news about it or a favourable presentation of it
in the media. Examples: Newspaper and magazine articles/reports, TVs and radio
presentations, charitable contributions, speeches, issue advertising, and seminars.

Direct Marketing is a channel form of advertising that allows businesses and non
profits to communicate straight to the customer, with advertising techniques such as
mobile messaging, email, interactive consumer websites, online display ads, fliers,
catalogue distribution, promotional letters, and outdoor advertising.

Selecting/ deciding on the media

Consumer Sales Promotions

Consumer sales promotions encompass a variety of short-term promotional

techniques designed to induce customers to respond in some way. The most popular
consumer sales promotions are directly associated with product purchasing. These
promotions are intended to enhance the value of a product purchase by either
reducing the overall cost of the product (i.e., get same product but for less money) or
by adding more benefit to the regular purchase price (i.e., get more for the money).

While tying a promotion to an immediate purchase is a major use of consumer sales

promotion, it is not the only one. As we noted above, promotion techniques can be
used to achieve other objectives such as building brand loyalty or creating product
awareness. Consequently, a marketer’s promotional toolbox contains a large variety
of consumer promotions.
Free samples:
In this case, small units of free samples are delivered door to door, sent through direct
mail, attached to another product, or given along with the purchase of some other

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product (e.g., soaps, soft drinks, detergents or other items). Free samples are normally
provided during the introductory stage of the product.
Coupons:

This involves offering price reduction or saving to customers on the purchase of a

specific product. The coupons may be mailed or enclosed along with other products,
or inserted in a magazine or newspaper advertisement.
3. Exchange scheme:
In this case, the customer exchanges the old product for a new one. The old product’s
exchange value is deducted from the price of the new product. This sales promotion
tool is used by several companies for consumer durables. For instance. Philips came
up with five-in-one offer. The offer consisted of Philips TV, two-in-one, iron, mixer-
grinder, and rice cooker at an attractive price.
4. Discounts:
It refers to reduction in price on a particular item during a particular period. It is
common during festival season or during off-season period. It is very stimulating
short-term sales, especially when the discount provided is genuine one. For instance,
the Hawkins pressure cooker manufacturer announced an attractive price reduction,
up to Rs.150 off, on a new Hawkins in exchange for any old pressure cooker. The
advertisement specified that the offer was open only up to a particular date.
5. Premium offers:
These can be extra quantities of the same product at the regular price. Premium offers
are used by several firms selling FMCG goods such as detergents, soaps and food
items. For instance, Colgate offered 125 g in a tube for the price of 100 g.
6. Personality promotions:

This type of promotion is used to attract the greater number of customers in a store
and to promote sale of a particular item. For instance, a famous sports personality may
be hired to provide autographs to customers visiting a sports shop.
7. Installment sales:

In this case, consumers initially pay smaller amount of the price and the balance
amount in monthly installments over a period of time. Many consumer durables such
as refrigerators and cars are sold on installment basis. For example, Washotex came
up with a scheme to pay 20 per cent now and take home Washotex washing machine.
The consumers were offered the facility of paying the balance in 24 equal monthly
instalments.

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Trade-In

Trade-in promotions allow consumers to obtain lower prices by exchanging

something the customer possess, such as an older product that the new purchase will
replace. While the idea of gaining price breaks for trading in another product is most
frequently seen with automobile sales, such promotions are used in other industries,
such as computers and golf equipment, where the customer’s exchanged product can
be resold by the marketer in order to extract value.

Contests and Sweepstakes

Consumers are often attracted to promotions where the potential value obtained is
very high. In these promotions only a few lucky consumers receive the value offered
in the promotion. Two types of promotions that offer high value are contests and
sweepstakes.

Contests are special promotions awarding value to winners based on skills they
demonstrate compared to others. For instance, a baking company may offer free
vacations to winners of a baking contest. Contest award winners are often determined
by a panel of judges.

Sweepstakes or drawings are not skill based but rather based on luck. Winners are
determined by random selection. In some cases the chances of winning may be higher
for those who make a purchase if entry into the sweepstake occurs automatically when
a purchase is made. But in most cases, anyone is free to enter without the requirement
to make a purchase.

A sub-set of both contests and sweepstakes are games, which come in a variety of
formats such as scratch-off cards and collection of game pieces. Unlike contests and
sweepstakes, which may not require purchase, to participate in a game customers may
be required to make a purchase. In the United States and other countries, where
eligibility is based on purchase, games may be subjected to rigid legal controls and
may actually fall under that category of lotteries, which are tightly controlled.
Samples, Free Product and Premiums

Enticing members of a target market to try a product is often easy when the trial comes
at little or no cost to the customer. The use of samples and free trials may be the oldest
of all sales promotion techniques dating back to when society advanced from a culture
of self-subsistence to a culture of trade.

Sampling and free trials give customers the opportunity to experience products, often
in small quantities or for a short duration, without purchasing the product. Today,
these methods are used in almost all industries and are especially useful for getting
customers to try a product for the first time.

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Some promotional methods offer free products but with the condition that a purchase
be made. The free product may be in the form of additional quantities of the same
purchased product (e.g., buy one, get one free) or specialty packages (e.g., value pack)
that offer more quantity for the same price as regular packaging.

Another form of sales promotion involving free merchandise is premium or "give-

away" items. Premiums differ from samples and free product in that these often do
not consist of the actual product, though there is often some connection. For example,
a cellphone manufacturer may offer access to free downloadable ringtones for those
purchasing a cellphone.
Point of Purchase Displays

Point of purchase (POP) displays are specially designed materials intended for
placement in retail stores. These displays allow products to be prominently presented,
often in high traffic areas, and thereby increase the probability the product will
standout. POP displays come in many styles, though the most popular are ones
allowing a product to stand alone, such as in the middle of a store aisle or sit at the
end of an aisle (i.e., end-cap) where it will be exposed to heavy customer traffic.

For channel partners, POP displays can result in significant sales increases compared
to sales levels in a normal shelf position. Also, many marketers will lower the per-unit
cost of products in the POP display as an incentive for retailers to agree to include the
display in their stores.
Trade Shows

One final type of trade promotion is the industry trade show (a.k.a. exhibitions,
conventions). Trade shows are organized events that bring both industry buyers and
sellers together in one central location. Spending on trade shows is one of the highest
of all sales promotions. In fact, the Promotion Marketing Association estimates that
over (US) $20 billion is spent annually by marketers to participate in trade shows.

Marketers are attracted to trade shows since these offer the opportunity to reach a
large number of potential buyers in one convenient setting. At these events most
sellers attempt to capture the attention of buyers by setting up a display area to present
their product offerings and meet with potential customers. These displays can range
from a single table covering a small area to erecting specially built display booths that
dominate the trade show floor.
Demonstrations and Personal Appearances

Many products benefit from customers being shown how products are used through
a demonstration. Whether the demonstration is experienced in-person or via video
form, such as over the Internet, this promotional technique can produce highly
effective results. Unfortunately, demonstrations are very expensive to produce. Costs
involved in demonstrations include paying for the expense of the demonstrator,

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which can be high if the demonstrator is well-known (e.g., nationally known chef),
and also paying for the space where the demonstration is given.

An in-person or personal appearance by someone of interest to the target market, such

as an author, sports figure or celebrity, is another form of sales promotion capable of
generating customer traffic to a physical location. However, as with demonstrations,
personal appearance promotion can be expensive since the marketer normally must
pay a fee for the person to appear.
B. Trade-oriented Sales Promotion:

Trade-oriented sales promotion programmes are directed at the dealer network of the
company to motivate them to the sell more of the company’s brand than other brands.
It is also known as push strategy, which is directed at the dealer network so that they
push the brand to the consumers by giving priority over other competitor brands.
Cash bonuses:

It can be in the form of one extra case for every five cases ordered, cash discounts or
straight cash payments to encourage volume sales, product display, or in support of
a price reduction to customers.
Stock return:
Some firms take back partly or wholly the unsold stocks lying with the retailers, and
distribute it to other dealers, where there is a demand for such stocks.
Credit terms:
Special credit terms may provide to encourage bulk orders from retailers or dealers
Dealer conferences:

A firm may organize dealer conferences. The dealers may be given information of the
company’s performance, future plans, and so on. The dealers can also provide
valuable suggestions to the company at such conferences.
Dealer trophies:
Some firms may institute a special trophy to the highest-performing dealer in a
particular period of time. Along with the trophy, the dealer may get a special gift such
as a sponsored tour within or outside the country.
Push incentives:

It is a special incentive given to the dealer in the form of cash or in kind to push and
promote the sale of a product, especially a newly launched product.

Free display : There is provision of free display of material either at the point of
purchase (POP) or at the point of sale(POS), depending on one’s view point. Display
reaches consumers when they are buying and actually spending their money.

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Retail demonstrations: These are arranged by manufactures for preparing and
distributing the products as a retail sample, for example, Nescafe Instant Coffee was
served to consumers for trying the sample on the spot of demonstration regarding the
method of using the product.

Trade deals: These are offered to encourage retailers to give additional selling support
to the product, e.g., tooth paste sold with 30% to 40% margin.

Buying allowance: Sellers give buying allowance of a certain amount of money for a
product bought.

(Buy-back allowance: It is offered to encourage repurchase of a product immediately

after another trade deal. A buy back is a Sales Promotion :: 59 resale opportunity.

Free goods: Seller gives free goods, e.g., one piece free with two, or two pieces free
with 10, are common free deals.

Advertising and display allowance: These are also offered to retailers to popularise
the product and brand name of the manufacturer.

Contents: Sales contests are held for salesmen.

Dealer loader: A gift for an order is a premium given to the retailer for buying certain
quantities of goods or for special display done by the retailer

Training for salesmen: Dealer and distributor training for salesmen, which may be
provided to give them a better knowledge of a product and how to use it. Dealer sales
promotion provides the selling devices. Sales promotion devices at the point of
purchase inform, remind, and stimulate buyers to purchase products. People who see
these devices are in a buying mood and thus they can be easily persuaded to buy those
products. Tell tags are informative labels affixed on the product, describing in detail
the features of the product and its unique selling points. Counter, top racks, posters,
mechanised signs are other point-of purchase displays.
What are the Main Purposes / Functions of Advertising?

Advertising usually constitutes a part of the marketing efforts of an organisation.

Advertising is undertaken by organisations in order to attract the attention of people
towards products and services.

Thus, the basic aim of advertising is to create awareness in the minds of people, about
the availability of products and services and influence them to buy the same.

The main purposes of advertising are as follows:

Communicates information

Creates ground for personal selling

Educates people

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Creates and extends demand

Creates image for the product or service

Builds goodwill
Communicates information:

One of the most important functions of advertising is to convey or communicate the

information to others. In the modern day world, where science and technology
contributes to new innovations and inventions, every now and then new goods and
improvisation of the existing goods and services are entering into the market.

If their use or knowledge is restricted to a limited number of people, social

advancements cannot take place.

Consumers are, therefore, provided the information about new products and services
which enter the market, through advertising. Besides, the demand for existing
products and services has to be maintained as well as enhanced with the help of
advertising.

The ultimate purpose is to enhance sales either by creating or increasing demand for
goods and services.
Creates ground for personal selling:

Since the main purpose of advertising is to create and sustain demand for products or
services and expand the market, the prospective buyers automatically become
interested to buy such products and services. In this way, advertising supports the
efforts of the sales force of an organisation and creates ground for the salesmen to
approach the prospective buyers.
Builds goodwill:

Advertising serves the purpose of promoting goodwill for the organisation. Many
advertisements aim at impressing the consumers that the firm is patriotic, progressive,
imaginative and very much concerned with quality. This creates goodwill in the
minds of the general public about the firm. This goes a long way in creating a
favourable impression about the organisation on the prospective buyers.
Educates people:

Advertising serves another important purpose of educating people about products

and services. As consumers are not aware of the use of several products and services,
advertisements provide adequate knowledge to the people at large about the usage
and utility of several products and services.

For example, as consumers, we are not aware of the composition of baby food, health
drink, etc. which are made known to us by advertisements only. In fact, advertisement

Compiled by Dr. Lily David & Veenu Joy.

provides us knowledge of various aspects of products and services which really
benefits and educates consumers in making wise purchase decisions.
Creates image for the product or service:

Another important purpose of advertising is to create an image both for the product
as well as for the organisation. This is done by emphasising the distinctive features of
the products or services through advertisements. Similarly, the reputation and
goodwill of the organisation can also be emphasised in advertisements.

Further, some advertisers also communicate information about new discoveries, new
ideas and new products and thereby create good image of their firms. They also
highlight their high points like low prices, special discounts, customer services, etc.
which contribute to build a favourable image of the organisation.
Obtain dealer support:

Dealers dealing with products and services need constant support from the
manufacturer in the form of advertising. In other words, advertisements make
products and services quite familiar with the prospective buyers.

As a consequence, products and services are pre-sold through advertising. Such

products and services become quite familiar with the consumers. Dealers also prefer
stocking those products and services which are well-advertised and having a constant
demand in the market.
Counters competition
In the present day competitive marketing environment, a firm cannot escape the
responsibility of spending on advertising. To counter the competitor’s advertisement
campaign, every firm has to undertake advertisement of its own. Therefore,
competitive forces compel firms to spend on advertising.

Generate awareness about offerings.

Induce trial of a new product & service.

Motivate & impress trade channels.

Change perception & create reassurance

Advantages :

The common man gets the latest news within a fraction of seconds. The distance is not
at all a barrier now. The news they get through media help them in their daily life a
lot.

We get the latest news in our home due to the television set.

We can bring out the hidden talent, we can get public opinion about certain events,
current issues.

Compiled by Dr. Lily David & Veenu Joy.

Television is quite popular because people can get easy overview from news.
Television also entertains and educates people.

Children’s knowledge increases by watching geographical channel, quiz programs

and speeches by famous personalities of different fields.

Radio has its own advantages which others do not have. People mostly listen radio in
car and

work station. Radio is convenient because people get short news and it is entertaining.
Also,

radio can be listened via mobile or MP3 player…

We have the latest news and information at the click of the mouse! The Internet is
such a medium that it can give many options for the kind of information required.

Television, movies, Internet and the radio are some of the best forms of entertainment.

It can be used for educational purposes in an effective manner.

Disadvantages

At times, the information reported may not be authentic from every angle. Hence,
there may be a misinterpretation of a situation.

News can be manipulated to influence the minds of the audiences. For example – a
particular political party may manipulate reports in their favor, which would indicate
the political control in the media.

Media bias can occur due to various issues. A journalist or an editor may give personal
preference to an issue.

A particular event or a celebrity may receive undue importance and set wrong ideals
before the youth. It may present an ostentatious lifestyle, which may inculcate wrong
ideals amongst youngsters.

Misleading messages may again divert young minds towards a wrong path.

Wrong interpretation of news may even blow things out of proportion. This would
create further unrest in any place or even violence in case of extreme situations.

The children may learn violence by seeing movies and TV programs. They try to act
as super heroes they see in the T.V which may cause danger to their life.

The children get immense pleasure in playing video games and they spend hours
together before computer, surfing through internet. Children lose interest in outdoor
games. As a result, the physical ability of the children may not improve.

The fashion shows, dance and music programs attract youngsters very much. They
like to spend money for make up, clothing and jewels on the influence of models and
actors.
Compiled by Dr. Lily David & Veenu Joy.
Is Advertising a social waste ?
Advantages or Arguments for Advertising :

1. Advertising stimulates production, employment and income leading to use in

purchasing power and better living standards.
2. Commercialisation of inventions and mass production of new products is
possible only through effective mass communication . For quick acceptance of
new products and ideas we need advertising .
3. Informative Advertising enables consumers to secure relevant and adequate
information about rival products and their relative merits .Advertising helps
consumer to choose from a wide variety of goods since it provides adequate
information.
4. Advertising facilitates mass production and mass distribution .Reduction in
cost of production as well as distribution is a result of producing goods on a
large scale . Reduction in costs enables further reduction in prices thus
consumers enjoy the benefits of effective advertising and marketing.
5. Advertising builds up brand preference and brand loyalty .Consumers will
remain loyal to the brand only if the quality is maintained or steadily improved
.
6. Advertising has educative value . It teaches people to adapt to new ways of life
and higher standard of living .

Disadvantages or Arguments against advertising

1. Increases the price . Advertising is expected to reduce total cost due mass
production and distribution . In reality advertising increases the price of goods
. National brands have to incur heavy expenses on advertising and promotion
and their prices are at least 20% higher than the prices of local brands .
2. Advertising is a waste . Many people may not read , hear or view the
advertisement of the manufacturer . Press , Radio and T.V advertisement have
a short life span and relatively higher cost. Advertising cannot appeal
accurately to the target markets like salesmanship and to that extent money
spent on it by the company is a waste .
3. Monopoly . A few large firms in the industry may utilise the weapon od
advertisement to prevent entry of small firms into the market .Only large
manufacturers can afford to spend lavishly on extensive advertising . Thus
advertising helps to create monopoly and kill competition .
4. Fraud on consumers .Some advertisements may be fraudulent , misleading or
deceptive . Advertisements often persuades people to buy things they do not
need and cannot afford .
5. Less impact .Advertisement is less effective than personal selling in the later
stages of the buying process . It is not flexible and it cannot answer objections
raised by prospective customers.

Compiled by Dr. Lily David & Veenu Joy.

 6. Difficult to evaluate .It cannot obtain quick and accurate feedback and thus
effectiveness of the advertising message cannot be evaluated correctly .
7. Confusing .Advertising media like newspapers, magazines ,T.V , etc. carry the
message of competitors and rivals also .This may confuse the prospective
customers.

TYPES OF ADVERTISING
A. INDOOR ADVERTISING MEDIA:
Indoor advertising media represents the use of those vehicles by advertisers
that carry the message right into the house or indoors of the audiences .
These vehicles are: newspapers- magazines – radio – television and Film.
Here , the ,message reaches the audience indoors when it is cosy and in
receptive mood because , house is the resting place for the inmates to relax
.
1. NEWSPAPERS : Newspapers is one that gives news, views,
interpretations, opinions, comments and explanations regarding social ,
economic , political , cultural , moral, ecological,meteorological and
wide variety of walks of fast changinglife.

The merits of news-paper as a medium of advertising are :

 Wide coverage
 Quick response
 Regularity and frequency
 Flexibility and speed
 Economical .
The relative demerits are:
 Shortest life
 Waste in circulation
 Possibility of duplication.

2. MAGAZINES : Magazines are the periodicals published weekly ,

fortnightly , monthly , quarterly and annually .The covert a wide variety of topics
providing light leisure reading . Well known , though provoking and authentic articles
from almost all branches of human knowledge are given along with entertaining items
like puzzles, cartoons , comics and the like .

The relative merits are :

 Longer
 Visual display
 Selectivity
 Loyalty and prestige
 Geographic flexibility

Compiled by Dr. Lily David & Veenu Joy.

 The relative demerits are:

 Inflexibility
 Waste in circulation
 Costlier
 Restricted frequency

3.RADIO : Radio advertising can be aptly called as ‘ word of mouth’

advertising on a wholesale scale . The advertisements may be straight
commercials – dialoguecommercials –dramatized commercials – integrated
commercials and musical commercials .

The relative merits of radio advertising are :

 Human touch
 Flexibility and timing
 Mass coverage
 Economy and
 Selectivity

The relative demerits are:

 Message perishability
 Lack of illustrations
 Limited time
 Wastage

4.TELEVISION : Radio ruled the scene between 1920 and 1970 . Its greatest
and latest rival has been the television that smashed its supremacy from 1950s. In India
, it was commissioned for the first time in 1959 and went commercial in 1976 and
transformed into colour in 1982 . By now, 90 percent of the population is covered by
the way of television.

The relative merits are:

 Deep impact
 Selectivity and flexibility
 Mass communication media
 Upper hand in distribution
 Life like presentations

The relative demerits are :

 Shortest life
 Costlier
 The clutter problem

Compiled by Dr. Lily David & Veenu Joy.

  Time taxing

5.FILM ADVERTISING : Film advertising is yet another medium of publicity

characterised by sound, motion , colour , vision and timeliness .This audio –visual
medium has a wide range of exhibits starting from an ordinary slide presentation to
ad films screening.

The relative merits are:

 Dramatic impact
 Selectivity and flexibility
 Mass publicity
 Least waste and
 Supplementary

The relative demerits are:

 Costlier
 Interjection
 Limited coverage
 Clutter problem.
B. OUT-DOOR ADVERTISING MEDIA:
This is the media to reach the people when they are out of doors . The ad
message is delivered to the audience like print and broadcast media; rather
the message is placed in strategic places exposed to moving audience . Its
strength is tremendous because , 97 percent of the total adult population
moves out of doors every week . Its vehicles are – poster – printed displays
– electric signs – travelling displays – sky writing – sandwich men and the
like .
A ‘poster’ is a sheet of paper pasted on a wooden or a card or
metal board depicting the ad message . It can be standardised or non-
standardised as to size and colours .The success of poster rests on poster
designing and the site of pasting. A printed display is the painted bulletin
and the wall painting. It is standardised metal sheet of rectangular shape
hung on hoardings stands at strategic places. A electric sign is a spectacular
sign giving light effects, creating charming and enchanting scenes in the
dark. A travelling display is an advertising sign seen in an outside travelling
vehicles like train, buses, cars, taxis, trams, autos and the like. A sky writing
is a kind of publicity where message is spread in the sky in the form of a
smoke or fireworks or the lights. Sandwichmen advertising is where a man
carries a painted board both in the front and in the back.
The relative merits are:
 Wider and deeper appeal

Compiled by Dr. Lily David & Veenu Joy.

  Greater flexibility
 Economy
 Easy accommodation
 Beautification

The relative demerits are :

 Uglification
 Heavy investments
 Immeasurability
C. DIRECT ADVERTISING MEDIA

Direct advertising covers all forms of printed advertising delivered directly to

the prospective customers instead of indirect distribution like newspapers and
magazines. This printed matter is distributed house to house by personal
delivery, handed to persons on the sidewalk, placed in the auto mobiles, stuck
under the windscreen of an auto mobile, handed over at the retail outlets or
sent through post.

The relative merits are:

 Highly selective
 Flexibility
 Personal touch
 Deeper impact
 Result measurability

The relative demerits are:

 High costs
 Low reader interest
 Warrants special skills
 Limited span
D. DISPLAY ADVERTISING MEDIA.

Display advertising or promotional advertising is hinged on the concept of display.

Display is the systematic arrangement of samples of saleable products to catch the
imagination and the notice of the people.

The significance of display advertising lies in four points:

 It allows the prospects to experience the product before buying.

 It is an effective dealer aid
 It attracts the consumers to the shop
 It makes possible impulsive buying

Promotional advertising has vehicles namely, displays- showrooms and showcases

and exhibitions and fairs.

Compiled by Dr. Lily David & Veenu Joy.

Displays are basically of two types namely, ‘window and counter’. Window display
implies showing of goods in the front of the window shop. It is window
showmanship.

The merits are:

 Point of purchase impact

 Colourful life size presentations
 Acts as a beauty mask

‘Counter display’ or interior display stands for all arrangements that is made in the
sales hall of the shop. It is internal showmanship in the garb of storage.

The merits are:

 Easy location of products

 Impulse buying
 Consumer loyalty
However, there are some specific problems which are to be tackled for better results.

These are:

 Creativity
 Placement
 Wastage

The success of display advertising depends on the perfect understanding of:

 The shopping habits of the consumers

 The need of the store manager
 Forms of display
 The display idea
 Getting the display used

The merits of exhibitions and trade fairs are:

 The place for display and demonstration

 Deeper impact
 Market development

However, the basic problems involved in the success of these exhibitions and trade
fairs are:

 High costs
 Management

Factors affecting media selections

Compiled by Dr. Lily David & Veenu Joy.

 1. Nature of product :-

Product to be advertised can be industrial product or consumer product.

Such product advertised in specific trade journals, magazines. Consumer product
advertised through mass media television, newspaper and outdoor advertising etc.
such magazines circulation at in other countries ‘product from India’, ‘products
finders’.

2. Nature of customers :-

An appropriate media plan must consider the type of consumer. Differ in

their age-group, sex, income, personality, educational, attitude etc. consumer group
that is man, women, children, young, old, professional, businessman, literate, illiterate
etc. some of the consumer traits affecting media selection are discussed below.
A. Age:-

Advertising for kid’s products, television is the best media for communicating
message. TV adds in cartoon, TV channels and for young Magazines and for old
television is good choice.

B. level of education:-

For highly educated – in magazines, national newspaper, internet and

television etc.
For less educated – local newspaper, languages, TV, magazines etc.
For illiterate – print media is not suitable. Broadcast media is good choice.
C. Number of customer:-

For more customers - mass media, like television, newspaper.

For fewer customers – direct mail, media, advertising on telephone are
suitable.

3. Distribution of product :-

At the time of product distribution locally or regionally, then media with

local coverage like newspaper, cable network etc. it the product is national level, then
national dailies , level , TV channels will be suitable.

4. Advertising objectives :-

Compiled by Dr. Lily David & Veenu Joy.

 The main objective of every advertising is to get favorable response from
customer and also for get immediate results, for these fast media like newspaper will
be considered. If for build corporate goodwill and brand equity then magazines,
television will be considered.

5. Nature of message :-

If advertising message is informative newspaper will be suitable. If persuade

consumer and potential consumer, emotional apple and rational apple for television
media will be suitable for advertising. At the time of schemes, discount, exchange,
festival offer. Then posters, banners and newspaper are suitable.

6. Size of ad-budget :-

If budget is more than costly media, that is television, national dailies,

popular magazines can be selected. If budget is less then media like posters, banners,
cable-network, local newspaper will be suitable.

7. Media used by competitors :-

If advertiser does not consider competitors move regarding media, then is

possible that advertiser’s market share is taken by competitors. If the industry leader
is using TV as media at that time consider the same media.

8. Media – availability :-

Sometimes specific space for advertisements is in print media is already

book by other advertiser and hence space not available. Sometimes it happens
advertisement.

On front page, cover page is already book by others. Similarly advertisement on

television during particular programmers. It happens booked by others advertisers.

9. Media reach and coverage :-

Such media should be selected which has wide reach and can cover our
target customers. Media reach means total circulations viewership of media for a
given time. Media reach means total numbers of person who are exposed to a media
in a specific time period. Media coverage means number of advertiser target
customers Exposed to media in a specific time period.

Compiled by Dr. Lily David & Veenu Joy.

 10. Media cost:-

Advertiser should compare the cost of each media by considering the number
of audience covered by such media. It seems to be costly but it can cover large number
of audience, then cost per audience will be less.
Media cost should also be compared in terms of cost per unit of reader, or
cost per unit of viewer. That media should be selected whose cost per reader or cost
per viewer is minimum.

11. Media frequency :-

It is refers to average number of times, the audience is exposed to media

vehicle in a specific period of time. Sometimes the new newspaper will come and old
newspaper will be discarded the same day, in case of magazines, media frequency is
more. Magazines are used for so many times. So media with higher frequency should
be selected.
12. Media image :-

Some media image is better image in comparison with other media vehicles.
So media with good image should be selected. And we should not select media with
bed image.

Advertising Layout

A visual layout of an advertisement has the following elements:

1)Headlines- The headings and sub-headings, if any, 2) Illustrations and colours,

3)Text – the heart of advertising message giving the story of the product or service to
be sold, 4) Advertiser or sponsor, and 5) Black or white space and the border to create
distinctiveness.

• Headline: Headline must put forth the main theme or appeal

in a few words. It should be clear, simple, short and,
attractive to hold attention of the prospect. It should reflect
the contents of advertisemet and guide the prospect properly.
It may show a promise or a reward and induce prompt
action. It should be printed in prominent manner.

• Illustrations: They provide line drawings, cartoons, pictures,

symbols, photograhs for attracting attention, creating interest
and arousing desire.Illustration is the best and most effective
way of communication of ideas(far better tha hundreds of

Compiled by Dr. Lily David & Veenu Joy.

 words) at a glance. We can demonstrate the use of product
through proper visual display.

• Colour: It is an important ingredient of an advertisement.

Colour has great attention attracting power. Judicious
blending of colours can evoke emotional reaction which
cannot be created by mere description. Each colour has
individual meaning and significance in communication of an
idea. Nature reflects its beauty in colours. Red, green and
black are most popular colours used in advertisement.
Colour contrast is more attractive and pleasing to our eyes.
An advertisement should be a colourful silent salesman.

• Body copy or text: It is the advertising message proper. It is

called the heart of advertising copy. It is the sales talk
performing AIDAS functions of salesmanship. It will point
out selling points of the product, where it can be secured,
what benefits the product will offer, what is its price, how it
is to be used. It gives proofs of benefits to convince the
prospects. It educates, persuades, reminds, and influences
buyer’s behavior and action. The body copy explains and
develops the ideas presented in the headline. It sharpens the
prospects desires and convinces the basic worth of the
product or service.

• Slogan:A slogan should be a fundamental sales argument for

a product or service, expressed in a few words. It should be
original and rememberable.It should contain the brand name
and the name of the ccompany.

Advertising Copy

The term ‘copy’ covers all items appearing in an advertisement,the written words,
pictures, design, label and logo.It is prepared by an expert copy writer. It is written
or spoken material of advertising communication and includes the headline, name
and address of advertiser, as well as the main text of the message.Advertising copy
is a creative business demanding a lot of imagination and foresight.Well-designed
advertising copy uses four basic steps in selling: 1)attracting attention, 2)
developing interest, 3)arousing desire, and 4)finally, generating action, the so-
called AIDA formula. It should adopt problem-solving approach and offer the
right solution to the problems of prospect. ‘You’ attitude is always preferable in
the communicaton. Apportionate appeals or pulls must be given special attention

Compiled by Dr. Lily David & Veenu Joy.

 to maximize the pulling effect of advertising copy. Then only it can succeed in its
mission, viz., motivating the prospect to take purchase decision and execute it
promptly. Advertising copy should be in simple, easily understandable, attractive
and persuasive language. Then only it can gain action.

ELEMENTS OF GOOD ADVERTISING COPY

A good advertising copy should possess the following elements or characteristics.

1)Attention value, 2)Suggestive value, 3)Memorising value, 4)Conviction value,

5)Sentimental appeal value, 6)Educational value, and 7)Instinctive appeal value.

1)Attention value: Nowadays,people are very busy and have little time to
bother about all types of advertisement. Therefore, an advertisement copy must be
drafted in such a way that even an indifferent and busy person must read. In other
words, the advertisement copy must be designed in such a way that is should be
for the eye of the beholder and make him halt for a whileto read it. Various devices
can be used to make the copy attractive and commending. They are as follows:

a. Use of pictures:"One seeing is worth a thosandtelling",is a

Chinese proverb.It indicates the attention-value of pictures.The
pictures selected must tell the complete story of the products and
have a direct saying on the product. Thus, a photograph of a
charming young woman dressed in a fashionable silk saree will
atrract many readers and at the same time tells its own story.But
the indiscriminate use of ladies photographs to advertise
everything, including pens, inks, etc. may not have much of
attention-value.

b. Appropriate heading: The attention-value of an advertisement

copy is enhanced a great deal by the use of appropriate
headings.Heading should generally be made up of three or four
words and should be printed in bold types.Heading in the form
of slogan or query will have a good effect."You press the button,
we do the rest,"used by Kodak Camera has very good
effect."Owner's pride and neighbour's envy" by Onida TV.

c. Borders: Attractive borders can be used to separate the text which

will compel the reader to focus his attention on

Compiled by Dr. Lily David & Veenu Joy.

 advertising/message. If other advertisements on a page in a
newspaper have ornamental borders, the use of a palin border will
do the trick. Care should be taken to see the border is not made
more attractive than the advertisement itself. It might distract the
readers attention from the advertisement. Therefore, the border
selected must be simple.

d. Leaving space: At the head and foot of the advertisement copy

enough space must be given. Some people give space all around.
It gives more prominence.

e. Underlining of key words: Advertising copy is prepared not only

to attract attention from the general stand point, but also with a
view to give the reader's eye a halt at some important point you
wish to emphasise. It is preferable to underline the important
words rather than to use italics.

f. Price quotation: If the price is low the prices can be displayed at

a corner of the advertisement. However, where the prospects are
expected to care more for quality than price, a price quotation
should not be used.

g. Colour:Colour plays a very important role in attracting people.

Red, green, black, yellow, and blue are the most important
colours. According to Prof. Harlow gale red carries the greatest
attractive value, green is the next best and black the third.

2) Suggestive value:Having attracted the eye of the reader to rest a while on a

copy, the next task would be to offer a suggestion on the use and utility of the
product. "Tired?Drink Super Dust Tea";New? No,Washed in Rin.All these given
effective suggestions to the reader.

3) Memorisingvalue:The advertisement copy should be drafted so as to create a

lasting impression on the minds of its readers about product. Repetition of the
advertisement is, of course, an effective method of creating a
memorisingvalue.Lux, Dalda, Aspro, Horlicks, Ponds, Vim and Bru have become
household words largely through repeated advertisements of memorising value.

4) Conviction value: An advertisement copy will be effective only when the

suggestions contained in it are supported by convincing arguments.When an
advertisement copy does not carry a picture then convincing arguments of much
help.The arguments should be logical.It is no use telling that our product is the

Compiled by Dr. Lily David & Veenu Joy.

 best in the market. The advertisement copy must emphasise the special features of
the product.

A promise to take back the goods, if found defective, will create better confidence
among the people about the quality of the product. Experience has shown that very
little risk is involved in making this offer in the case of goods of really good value.

5) Sentimental value: Sentiments play a very important role in our life. Every
person has some feelings and sentiments about various matters and a large
number of our action is influenced by sentiments.The advertisement should
respect the sentiments and feelings of the people for whom it is meant.

This is especially important in the case of foodstuffs. e.g.,'for pure

vegetarians','Untouched by hands'.

It is not practical to satisfy all the prospects in this respect, but sincere attempt must
be made to tackle as many prospects as possible. In no case should the draft be
made to include anything which is likely to injure the feelings of readers.

Sentimental value is more important where the product is directed towards

educated and cultured sections of the society. Educated and cultured people are
more sensitive and sentimental. Advertisements directed towards those people
must, therefore, be of high aesthetic standards. Articles like biscuits or sweets
should be offered in a tastefully designed packaging than those which are clumsily
sold in old fashioned paper bags.

In many cases, an appeal to the national setiments of the prospect will be made as
"use.... It is good.It is Indian"etc.

6)Educatinalvalue:The objectives of scientific advertisement is not merely to

satisfy the existing demand but is also to find new buyers and suggest new and
unfamiliar uses for the products.In other words demand creation is one of the most
important objectives of advertising.If the copy is informative and attempt is made
to educate the people in the use of new products or in the new uses of the same
product, demand can certainly be created and extended.

Personal Selling

Personal selling is a paid two way communication to persuade customers through

information to buy products in an exchange situation .

Advantages of personal selling :

- specific communication targeted at one or specific individuals

Compiled by Dr. Lily David & Veenu Joy.

Greater impact on customers

Due to immediate feedback, message may be adjusted.

Responds to customers’ needed information.

Compiled by Dr. Lily David & Veenu Joy.