Advertising_Management_ZAD.pdf - 1 of 45 ZAD INSTITUTE OF IT MANAGEMENT MBA-3RD SEMESTER ADVERTISING MANAGEMENT Question 1:1 What do you mean by

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Unformatted text preview: 1 of 45 ZAD INSTITUTE OF IT & MANAGEMENT MBA-3RD SEMESTER ADVERTISING MANAGEMENT Question 1:1:- What do you mean by Promotion Mix? Explain in detail. Answer: Introduction: Answer -Introduction Introduction: Promotion mix is a particular combination of promotion tools used by a company to communicate with the audiences. There are 5 major tools: advertising, sales promotion, publicity, personal selling and direct marketing. Promotion mix refers to totality of efforts made by the firm to communicate with the wholesaler retailer, present customer, potential customers, and general public. In addition to five promotional tools named above promotion mix also include Product design, Packaging, labelling.For example:-Instruction and information given on the package like------ date of manufacturing, date of expiry, ingredients, how to use it, where to store it, side effect, price,etc.all these give the message to the consumer. Meaning: Meaning - Promotion is the co-ordination of all seller initiated efforts to set up channels of information and persuasion in order to sell good and services to promote an idea. Definition Definition:tion According to Philip Kotler, Kotler “A company’s total communication mix-also called promotion mix – consist of specific blend of advertising, personal selling, sales promotion, public relations and direct marketing tools that the company uses to persue its advertising and marketing objectives." Components of the promotion mix: mix:Promotion Mix consist of 5 elements Advertising Personal selling Promotion Mix Sales Promotion Direct Marketing Publicity and Public Relation i) Advertisement: Advertisement - It is a non personal form of presentation of Ideas, Good, Services by an identified sponsor. Role of advertisement advertisement:- a) For quick communication. b) For communication with masses. c) For promotion of consumer goods. ii)Personal ii)Personal selling: selling - Oral presentation for the purpose of sale. Role of personal selling:selling a) For marketing of industrial & technical goods. ZAD INSTITUTE OF IT & MANAGEMENT Page 1 2 of 45 ZAD INSTITUTE OF IT & MANAGEMENT MBA-3RD SEMESTER ADVERTISING MANAGEMENT b) For the small targeted audience. c) For costly goods. iii)Sales iii)Sales promotion: promotion - An immediate inducement that adds extra value to the product. Role of sales Promotion:-a) Middleman-oriented-sales promotion. Promotion b) For seasonal goods. c) For immediate increase in sales. iv)Publicity iv)Publicity: Publicity - Mgt. of fun that helps public to understand the policies of the organization. Role of Publicity: a) Non paid formed more credible. b) Make positive image in mind of ultimate customer. c) Image is more objective and place more confidence. v)Direct Direct Marketing:Marketing Direct communication with target audience to obtain immediate response and to develop long lasting relationship with the customer. Role of direct marketing:marketing:- a) Focus is on literate customer. b) For service marketing like Banking, insurance, telecommunication. c) For expensive goods mainly. Procedure of Determining Promotion – Mix Determination of promotion mix refers to selection and combination of different elements of promotion mix for achieving the promotional objectives. Following procedure is used for determining the promotion mix. 1) Consider all availability of promotion methods: methods these can be advertising, sales promotion, personal selling, direct marketing, publicity ect. 2) Select optimum promotion mix: mix tools are combined in such a way that communication objectives are achieved at minimum cost. Each tool have its merits and demerits. Optimum promotion mix is the best combination of different promotional tools. 3) Appropriation of the promotion mix:mix Total promotional budget is appropriate among different elements of promotion mix. Budgeting methods are: % method, marginal revenue method, judgment method, quantitative methods etc. 4) Evaluation of Effectiveness of different PromotionalPromotional-tools: - Comparing actual results with pre decided promotional tools. Evaluation tools help the business firm to amend or rectify these promotional tools. Factors affecting the Promotion mix ZAD INSTITUTE OF IT & MANAGEMENT Page 2 3 of 45 ZAD INSTITUTE OF IT & MANAGEMENT MBA-3RD SEMESTER ADVERTISING MANAGEMENT 1) Nature of Product a) Consumer Goods b) Industrial Goods - Advertising Personal selling 2) Stages of Product life cycle. a) Introduction stage Advertising for consumers & Personal selling for middlemen. b) Growth Stage Advertising for consumers & Personal selling for middlemen. c) Maturity Stage Advertising & sales promotion. d) Decline Stage - e) Obsolescence - Cut in promotion expenses & Personal contact with a few customers. No Communication. 3) Nature of Target Market. a) Size of market Small- Personal Selling Large- Advertising b) Location and Concentration of Customer. Concentration of the Customer – Personal Selling. Scattered Customer - Advertising c) Socio- economic Characteristics of Customers. 4) The size of promotional budget. 5) Push and pull Strategy. 6) Promotional Strategy. 7) Price policy. 8) Distribution policy 9) Intensity of market coverage. 10) Availability of promotional methods. methods. 11) Level of compition. 12) Degree of Brand Familiarity. 13) Branded & Unbranded Products. 14) Seasonal Products. Question No 2:2:- What is advertising? What are the main characteristics of advertising? Eplain its functions and scope of advertising. ZAD INSTITUTE OF IT & MANAGEMENT Page 3 4 of 45 ZAD INSTITUTE OF IT & MANAGEMENT MBA-3RD SEMESTER ADVERTISING MANAGEMENT Answer: Introduction:Introduction:-Consumer is the central point in every business. Now a days, attracting and satisfying customers is more difficult than producing the goods. For many products, many brands are available in the market. Every company wants to improve the market shares. Now, buyers dominate the market. Advertising is an important means to influence the potential customer. It is an important tool of marketing. Advertisement influences the customer attitudes and purchase behaviour. Advertisement increase brand-familarity develop image and help the organization in increasing its market shares. Meaning :- It is derived from the Latin word “ adverto” Add + verto Toward Turn OR we can say turn the customer towards the products. Definition:- According to American marketing association “ Any paid form of non personal presentation and promotion of Goods, Services or Ideas by an identified sponsor.” Acc. To Philip Kotler, “Advertising is non-personal form of communication conducted through paid media under clear sponsorship.” Main Theme of Advertising Advertising Product Differentiation Reminding and maintaining old customers Attracting new customers Creating Brand Performance and Brand Loyalty Reducing Dissonance Increase in market share To Face Competition Consumer Satisfaction Increase in sales and profit Increase in Sales and Profits Increase in Sales and Profit To inform about product, price, place and promotion scheme Features of Advertisement:Advertisement:1) Paid form:form Advertisement is never free of cost. The company has to make the payment to the media used for advertisement. The payment can be large can be small depending upon media-circulation, type/ nature of media & media popularity. Payment to media is also depend upon the time when ad ZAD INSTITUTE OF IT & MANAGEMENT Page 4 5 of 45 ZAD INSTITUTE OF IT & MANAGEMENT MBA-3RD SEMESTER ADVERTISING MANAGEMENT is shown e.g if ad is shown in prime time or along with popular serial then its cost will be more. If ad is given on newspaper or magazine, then payment is made on the basis of space taken & in case of TV the payment is taken on the basis of time taken by ad. 2) Non personal:personal In advertisement there is no face to face communication. Here message is transmitted through mass media like TV, newspaper, magazines, radio, internet etc. because of non personal feature immediate feedback from audience is not possible and message cannot be adjusted or changed according to the reaction of target audience. 3) Identified Sponsor:Sponsor The sponsor of advertisement is the advertiser. Identified sponsor me ans that the producer or the seller who advertise the product, Should be known through the advertised message. In some cases both the brand name are specified in advertisement, while in other cases only brand name is mentioned in the advertisement. If in any communication, nether brand nor company can be identified. Then such communication is not an advertisement even if it uses mass media. 4) Any form: form - Advertising can be used to create image, Presence for a company or brand. For this any form of presentation can be used, it can be in the form of a sign, symbol, message, t.v, pamphlet, banners, sky balloons etc. 5) Goods, Services, Ideas: Ideas: - Advertisement is to inform, persuade and remind the prospective buyers /users about products or services but sometimes ideas may be advertised. For example, Idea of blood donation, eye donation, etc are also advertised. 6) Can be used by any organisation organisation: ation: - Advertising can be used by any type of organization. It is done by commercial and charitable organizations. Political and non political organizations, groups and individual. So any type of organisation can take services of advertising. 7) Speedy Communication: - Advertising is the fastest mode of communicating with the target audience. This method is fastest then personal selling as here information can be passed to laces of consumers at one point of time. For example, if a company has to give some urgent message to the public, Then by releasing the ad in next days newspaper, company can communicate the massage to laces of people in one day only. 8) Mass Communicating: - Mass communication mean communication with a large group of persons at the same time. Media like television, newspaper, magazines, and websites pass on information. to the thousands and lakhs of persons at the same time. 9) Advertising is an art: - Because the creative function of advertising very much depends upon the creativity of an individual who design the ad. The creation is includes the message design, appeal design, layout, use of pictures etc. it is art of advertising, on which the success or failure of advertising campaign depends so advertising is an art. 10) Advertising is not exact science:science: Sales is effected by a no of factors such as competition, price level, product features, consumer taste, stages of business cycle. Principles of advertising is not as exact as the principle of physical science. Hence advertising is not exact science. 11) An Important Element of Promotion Mix: - Advertising is an important element of promotion mix, along with personal selling, sales promotion and publicity. Advertising is the mode of mass communication while personal selling is face-to-Face communication. 12) Motivate and inspires:inspires: Advertising carry message which motivates and inspires customers to purchase a particular product. The ad message is persuasive and informative enough to motivate potential customers. ZAD INSTITUTE OF IT & MANAGEMENT Page 5 6 of 45 ZAD INSTITUTE OF IT & MANAGEMENT MBA-3RD SEMESTER ADVERTISING MANAGEMENT 13) Controlled:Controlled: The message , time, place of advertisement is controlled by the sponsor to make advertisement effective. The selection of media is carefully done to achieve the desired results in economic ways. Functions of Advertisement Functions of Advertising Primary Function 1) Announcing new product and services. 2) Expand the market to new buyers. 3) Promotes new uses of the product. 4) Create demand. 5) Educate customer 6) Remind user 7) Create brand preference 8) Announce location of retailer. Secondary Function 1) Help to boost the morale of salesmen. 2) Supports salesmen. 3) Reaches customer left by salesmen. 4) Help to procure better customer. 5) Large scale economies 6) Lower cost of contacting per person 7) Help to neutralize competitors advertising. Social function 1) Improving standard of living. 2) Awareness among rural masses. 3) Create Employment 4) Help to solve social problems 5) Creates awareness about dangerous dieses 6) Other social function Scope of Advertisement 1) Increase in Ad functions: functions:- Earlier ads were designed to satisfy informative needs of buyers in the form of public announcements but now advertising includes building brand image, Brand Loyalty, and persuading the buyer to purchase the product. Now advertising performs informative, communicating, and persuading function. ZAD INSTITUTE OF IT & MANAGEMENT Page 6 7 of 45 ZAD INSTITUTE OF IT & MANAGEMENT MBA-3RD SEMESTER ADVERTISING MANAGEMENT 2) Ad for Attracting and supporting Middlemen and Salesmen: Salesmen:- Earlier the need for advertisement for middlemen and salesmen was not realized as there were very few manufacturers and middlemen could be easily attracted. But now to attract efficient middlemen and salesmen and support them, advertising is must. 3) Increase in Non commercial Ads:Ads: Now a days, various non commercial ads are issued by government departments, Social organizations for general public. For example ad on awareness of various social issues, social problems viz. Fatal diseases, Female foecticide, dowry, girl education, Adult- Education etc. 4) Growth in media:media: Earlier very less media sources were available to advertisers for communicating with target audience, but now a days there is phenomenal growth in media means like news papers, T.V., etc. 5) Increase in industrialization:industrialization: With the growth in the industries, Mechanization, transportation, mean of communication, business firms go in for production at a large scale. The mass production done by these big companies can-not be marked without advertisement. So now advertisement has become more important activity. 6) Increase in level of competition:competition:- The level of competition has increased manifold. For any product many brands are available. A company cannot be popular in the market without advertising. Earlier the level of competition used to be less. So earlier there was less need of advertisement. But now because of increase in level of competition, there is greater need of advertising. It has increased the scope of advertising. 7) Increase in Readership and Viewer ship:-With the growth in literacy, readership of newspapers and ship: magazines has increased and now newspapers and magazines are full of advertisements. Similarly with the growth in electronics, a computer has increased. This has led to the growth of audio visual advertising and increased the scope of advertising. Question No3:No3:- What do you mean by Communication Process? How it will stimulate the primary and selective demand? demand? Answer: Introduction: Introduction: - Communication has been defined as a process in which exchange of ideas and information takes place among different persons. It is a circular process which means that there are various steps one after the other. Marketing communication process has following stages/ elements. 1) Source 2) Encoding 3) Message 4) Decoding 5) Receiver 6) Response/ Feedback 7) Noice ZAD INSTITUTE OF IT & MANAGEMENT Page 7 8 of 45 ZAD INSTITUTE OF IT & MANAGEMENT MBA-3RD SEMESTER ADVERTISING MANAGEMENT Sender Encoding Message/Media Receiver Noice Distortion Feedback/ Response Decoder Marketing communication: - Is the process in which two or more persons consciously or unconsciously, attempt to influence each other through some use of symbols. Communications have 4 basic components:• A source • A destination • A medium • A message Marketing communication done particular with 2 areas 1) External flow 2) Internal flow 1) External flow:- the targeted audience for this particular communication is • Channel member a) wholesaler b) Retailer • Customer a) Past b) Current c) Potential • Companies a) Competing b) Non competing Others a) Govt. Agencies • ZAD INSTITUTE OF IT & MANAGEMENT Page 8 9 of 45 ZAD INSTITUTE OF IT & MANAGEMENT MBA-3RD SEMESTER ADVERTISING MANAGEMENT b) Private agencies c) Experts 2) Internal flow:- the targeted audience for this particular communication is • • • Company deptt. Employee Stockholder WILBUR SCHRAMM’S MODAL A well known communication expert gives a significant contribution in the field of communication. He modified the Shannon & Weaver’s Model of communication. Information Source Transmitter Channel Receiver Destination Noice Source Limitation : - One way communication only. Schramm’s modify the modal as according to the following conditions Field of Experience Source Encoder Signal Field of Experience Decode r Destination --- In place of “transmitter” and “receiver” he uses “encoder” and “decoder”. --- Schramm’s add the concept of “field of experience”. --- Circle indicates the accumulated experience of two individual trying to communicate. --- Both Sender and decoder have there own field of experience. --- If circles do not meet then communication is impossible --- Circles are meet then communication is possible. --- Area in circles are large communication is smooth. ZAD INSTITUTE OF IT & MANAGEMENT Page 9 10 of 45 ZAD INSTITUTE OF IT & MANAGEMENT MBA-3RD SEMESTER ADVERTISING MANAGEMENT --- Area in circle is small shrieked then communication is different because communicating persons belonging to another culture. Schramm’s developed a significant model to explain the process of mass communication. Source:- Media organization like Newspaper & Broadcasting station. Role of source help the organization in following manner: 1) Source communication the message to the target audience. He is the person who initiates the communication process and he is also known as sender in communication process. 2) A popular source attracts the attention of target audience and makes the advertisement easy to remember. If source is a well known person then it easily attracts the attention of audience. 3) Credible source increase the credibility of message i.e. people feel that message given by credible source is correct. 4) Attractive, efficient, popular source help to increase the sales and profit of an organisation. 5) Effective source helps to face competition by improving Brand-image, Product-image, & Institution-image. The mass Audiance Many Receivers Then decoding, Interpreting & Encoding Encoder Interpreter Decoder Each connection with group Where message is intarupted Feedback Input from N.p, sources. Conclusion:Conclusion:- Hence the Wilbur Schramm’s model explain how communication process stimulate the primary & selective demand through its integrated marketing communication and models explained. Unit- II ZAD INSTITUTE OF IT & MANAGEMENT Page 10 11 of 45 ZAD INSTITUTE OF IT & MANAGEMENT MBA-3RD SEMESTER ADVERTISING MANAGEMENT Question No 4:- Explain the different Types & Objectives of the advertising. Answer: Introduction-Objectives are those end points towards which every activity of an organisation is oriented. Without setting objectives it is very difficult to control and manage any activity. Setting the goal and objective is a starting point of management. Meaning: of objectives of advertising is communication task to be accomplished among a defined audience in a given period of time. Defination:According to R.S.Davar:-“Advertising aims at educating the customers, supplementing the salesmen, enabling the dealers to face the competition but above all, it is a link between producer and consumer.” Types of objective Sales Objectives • • • • • To increase sales To increase market shares To improve brand image To improve company image To increase profit Communication objective • • • • To create brand awareness To give knowledge about the product To develop preference about the products over other competitive products To affect buyer behavior to buy the pr...
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