ADVERTISING AND SALES PROMOTION

Abstract
Advertising is the dissemination of information by non-personal means through p
aid media where the source is the sponsoring organization. The messages carried
in-medias. Advertising objectives serve as guidelines for the planning and imple
mentation of the entire advertising programme. It helps the consumer to save the
ir time in purchases.
It helps the manufacturer sell their products. The relation between wholesalers
and retailers is improved through advertising. Sales promotion consists of diver
se collection of incentive tools, mostly short-term designed to Sales promotion
tools vary in their specific objectives. A free sample. Stimulates consumer tria
l, while a free management advisory service comments a long-term relationship wi
th a retailer stimulates quicker and / or greater purchase of a particular produ
ct by consumers or the trade. Rationale of sales promotion may be analyses for S
hort-term results, Competitive Pressure, Buyers expectations, Low quality of reta
il selling. There is wide acceptance that sales promotion is one of the most mis
managed 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 prom
inent in the overall marketing mix design. Its high visibility and pervasiveness
made it as an important social and encomia topic in Indian society. Promotion m
ay be defined as the co-ordination of all seller initiated efforts to set up chan
nels 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 mi
x. Promotion decision must be integrated and co-ordinated with the rest of the m
arketing mix, particularly product/brand decisions, so that it may effectively s
upport an entire marketing mix strategy. The promotion mix consists of four basi
c 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 throu
gh 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 o
f 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 me
ans and is not directly paid by the organization and the organization is not t
he source.
 DEFINITION OF ADVERTISISNG
The American Marketing Association, Chicago, has defined advertising as any fo
rm of non-personal presentation or promotion of ideas, goods or services, by an
dentified 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 includes the following forms of messages:
The messages carried in-
Newspapers and magazines;
On radio and television broadcasts;
Circular of all kinds, (whether distributed by mail, by person, thorough tradesm
en, or by inserts in packages);
Dealer help materials,
Window display and counter display materials and efforts;
Store signs, motion pictures used for advertising,
Novelties bearing advertising messages and Signature of 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 objectiv
es should be set for each particular advertisement campaign. Advertising is a fo
rm of promotion and like a promotion; the objectives of advertising should be sp
ecific. This requires that the target consumers should be specifically identifie
d and that the effect which advertising is intended to have upon the consumer sh
ould be clearly indicated. The objectives of advertising were traditionally stat
ed in terms of direct sales. Now, it is to view advertising as having communicat
ion objectives that seek to inform persuade and remind potential customers of th
e worth of the product. Advertising seeks to condition the consumer so that he/s
he may have a favorable reaction to the promotional message. Advertising objecti
ves serve as guidelines for the planning and implementation of the entire advert
ising 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:
 1It increase sales volume. On the one hand, it reduces the cost of production a
nd,on the other increases profits.
It helps easy introduction of products into the markets.
It helps to create an image and reputation not only of the product but also of
the advertiser.
Retail price maintance is possible.
It helps to establish a direct contact between manufacturers and consumers.

BENEFITS TO WHOLESALERS RETAILERS :

Easy sale of the products is possible since consumers are aware of rhe product
and its quality.
It increases the rate of the turnover of stock.
It supplements the selling activities.
The reputation credited is shared by the wholesalers and retailers and alike.
It enables them to have product information.

BENEFITS TO CONSUMERS

Advertising stresses quality and very often prices. This forms an indirect guara
ntee to the consumers. Further more, large scale production assured by adver
tising enables the seller to sell the product at a lower cast.
It provides an opportunity to the customers to compare the merits and demerits o
f various substitute products.
This is perhaps the only medium through which consumers could know the varied an
d new uses of a product.
Modern advertisements are highly informative.

BENEFITS TO SALESMEN

Introducing the product is made easy.

Advertising prepares necessary ground for a salesman to begin his work. Hence sa
les efforts are reduced.
The contact established with the customer by a salesman is made permanent throug
h advertising.
The salesman can weigh the effectiveness of advertising when he makes a direct c
ontact with the customer.

BENEFITS TO COMMUNITY

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

t Roosevelt of the USA, Advertising brings to the greatest number of people actua
l knowledge concerning useful things; it is essentially a form of education and
the progress of civilization depends on education .
Advertising leads to large scale production creating more employment opportuniti
es.
Advertising has made more popular and universal the uses of such inventions as t
he auto mobiles, radios, various household appliances. Advertising nourishes the
consuming power of man. Its creates wants for a better standing of living.. It s
purs 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 pr
oduct by consumers or the trade.. Sales promotion includes tools for consumer pr
omotion (for example samples, coupons, prizes, cash refund, warranties, demonstr
ations, contest); trade promotion (for example buying allowances, free goods, me
rchandise allowances, co-operative advertising, advertising and display allowanc
es, dealer sales contests); and sales-force promotion (for example bonuses, cont
ests, sales rallies).Sales promotion efforts are directed at final consumers and
designed to motivate, persuade and remind them of the goods and receives that a
re 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 adverti
sing, personal selling, public relations and publicity that are intended to stim
ulate customer demand and improve the marketing performance of sellers.
Purpose of sales Promotion
Sales promotion tools vary in their specific objectives. A free sample stimulat
es consumer trial, while a free management advisory service comments along-term
relationship with a retailer. From the marketer s perspective, sales promotion ser
ves three essential rolesit informs, persuades and reminds prospective and curre
nt customers and otherselected audiences about a company and its products. Beca
use 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 numb
er 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, contest
s 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, it
s 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.
RATIONALE OF SALES PROMOTION
Rationale of sales promotion may be analyzed under the following points.
??Short-term results
Sales promotion such as coupons and trade allowances produce quicker, more meas
urable sales results. However critics of this strategy argue that these immediat
e benefits come at the expense of building brand equity. They believe that an ov
er emphasize on sales promotion may under mine a brand s future.
??Competitive Pressure
If competitors offer buyers price reductions, contest or other incentives, a fi
rm may feel forced to retaliate with its own sales promotions.
??Buyers expectations
Once they are offered purchase incentives, consumers and channel members get us
ed to them and soon begin expecting them.
??Low quality of retail selling
Many retailers use inadequately trained sales clerks or have switched to self s
ervice. For these outlets, sales promotion devices such as product displays and
samples often are the only effective promotional tools available at the point of
purchase.
SALES PROMOTION PLAN PREPARATION
There is wide acceptance that sales promotion is one of the most mismanaged of a
ll marketing functions. This can be attributed to the confusion as to what sales
promotion really is - which often results in expenditures not being properly ac
counted for. Some companies record it as advertising expenditure, others as sale
s 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 Eu
ro case allowance on a product with a contribution rate of 3 Euro per case has t
o increase sales by 50% just to maintain the same level of contribution.
In order to manage a company's sales promotion expenditure more effectively, the
re is one essential step that must be taken. First, an objective for sales promo
tion must be established in the same way that an objective is developed for adve
rtising, pricing, or distribution.
Advertising, Promotion And The Brand
By now it is clearly understood that The role of Advertising and promotion In f
ast moving consumer Good Markets. Advertising has been seen as one of the primar
y tools of Brand Building. The high cost and difficulties of mass advertising ar
e 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 app
arently 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 st
ores which people pass by go into. The Stores Themselves Are In Their Way Advert
ising, and It Is Difficult to think of major brands other than retailers those h
ave 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 contro
llable.
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, th
e average sensitivity to price also increases. In other words, a seemingly succe
ssful 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 adv

ertising 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 togethe
r to produce a greater effect.
In addition, The integration of advertising and promotion gives the consumer a c
oherent message. If advertising and promotion are to achieve synergy and to bui
ld 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 pla
n and must fit within it. In order to start the advertising plan, we need some b
ackground 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 tshe
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 nor
mally has long-term objectives like building brand awareness or building consume
rs loyalty or repositioning a brand. It helps sales by adding some durable and l
ong-term value to the product. Advertising in mostly an indirect way for consume
r to buy a product.
sales: It is generally designed to supplement advertising and facilitates perso
nal selling.It performs the immediate task of increasing current sales. It aids
selling by temporarily changing the existing price value relationship of the pr
oduct. Sales promotion is a direct and almost open inducement to consumers to im
mediately try the product.
Thus from all the above studies it can be concluded that for the marketing of an
y 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 criter
ia s, which are to be, fulfilled which is not an easy task. Thus it is easier to i
ncrease the sales through sales promotion.