ADVERTISING AND SALES

PROMOTION
VI SEMESTER
BBA6 B15
(Marketing Specilization
Elective 3)

B.B.A
(2019 Admission onwards)
CBCSS

UNIVERSITY OF CALICUT
School of Distance Education,
Calicut University P.O.,
Malappuram - 673 635, Kerala.

19672 M
 School of Distance Education

UNIVERSITY OF CALICUT
SCHOOL OF DISTANCE EDUCATION

Study Material
VI Semester
Marketing Specilization-Elective-3 (BBA6 B15)

B.B.A.
ADVERTISING AND SALES
PROMOTION

Prepared by:
Dr. Sudheesh S
Assistant Professor on Contract
School of Distance Education
University of Calicut
Scrutinized By:

Dr. Lakshmanan M P
Associate Professor & Head,
P.G. Department of Commerce,
Government College, Chittur.

DISCLAIMER
“The author(s) shall be solely responsible for the
content and views expressed in this book”

Advertising & Sales Promotion 2

 School of Distance Education

CONTENTS
PAGE
MODULE PARTICULARS NO.
ADVERTISEMENT
I 7
PROCESS AND AGENCY
ADVERTISEMENT
II BUDGET
49

ADVERTISEMENT
III 69
COPY & MEDIA

IV SALES PROMOTION 96

SALES PROMOTION
V PLANNING AND 114
CONTROL

Advertising & Sales Promotion 3

 School of Distance Education

Advertising & Sales Promotion 4

 School of Distance Education

BACHELOR OF BUSINESS ADMINISTRATION

BBA6B15 (Elective 3) ADVERTISING AND SALES
PROMOTION
Module 1
Advertisement Process and agency: Meaning, nature and
evolution of advertising; Advertising purposes and functions;
classification of advertising; Advertising process -Major players
in Advertising process. Advertising Agency: Concept, evolution
and types of Advertising agencies; Functions & structure of
modern advertising agency. Advertising Agencies in India.
20 Hours
Module II
Advertisement Budget: Approach and procedures for determining
the size of the budget, Administration and control of budget.
Regulation of Advertising: Self-Regulation by advertising Media
(ASCI), Economic, social & ethical aspects of advertising-
advertising. 15 Hour
Module III
Advertisement Copy & Media: Advertisement Copy: Meaning
and types - Copy layout. Role of media in advertising –Types of
media –Broadcasting & Print media advertising – Internet
advertising-Mobile advertising –Impact of social media in
advertising. 15 Hours

Advertising & Sales Promotion 5

 School of Distance Education

Module IV
Sales Promotion: Meaning, nature and objectives of sales
promotion; Major limitations of sales promotion; Consumer sales
promotion: Objectives and tools .Benefits of sales promotion to
customers. Trade Promotion: Meaning, objectives and
importance; Major trade promotion schemes. 15 Hours
Module V
Sales Promotion Planning and Control: Planning process of
advertisement Establishing objectives of sales promotion and
selecting consumers for sales promotion; Developing, pre-testing,
implementing, controlling and evaluating the -sales promotion
programme. 15 Hours

Advertising & Sales Promotion 6

 School of Distance Education

Module 1
Advertisement Process and Agency

Introduction:
Advertising is considered as a creative commercial message
aimed at selling services or products. It can also be used to
increase sales or publicise social messages. It is the lifeblood of
media for their survival. At the same time, there is a general belief
that advertising is a waste of time, money and resources.
Audiences of different mass media would generally prefer
freedom from advertising but as students of advertising you must
learn to romance with advertising just as shown in some Indian
films. Watch these ads closely, connect with the ad characters,
jingle, slogan and advertising locations. When you are doing this
you connect with the brand emotionally, start loving it and build
a long lasting relationship, adore the brands you purchase, and
feel nostalgic.
Advertising is an indicator of the growth, betterment and
perfection of civilization. It is part of our social, cultural and
business environment. It is not at all surprising that advertising
is one of the most closely scrutinized of all business institutions.
In today’s environment, not only are advertisers closely examined
by the target audience for whose that advertisements are meant,
but by society in general.

Advertising & Sales Promotion 7

 School of Distance Education

Definition:
One of the common definitions of advertising considers it as “any
paid form of non-personal communication of information about
products or ideas by an identified sponsor through the media in
an effort to persuade or influence behaviour of the people in such
a manner as to induce them to buy.”
“Advertising is controlled, identifiable information and
persuasion by means of mass communications media.”
“Advertising is the non-personal communication of marketing-
related information to a target audience, usually paid for by the
advertiser, and delivered through mass media in order to reach the
specific objectives of the sponsor.” – John J Burnett.
“Advertising is a message paid for by an identified sponsor and
delivered through mass medium of mass communication.
Advertising is persuasive communication. It is not neutral; it is
not unbiased; it says; “I am going to sell you a product or an idea.”
- J Thomas Russell and W. Ronald Lane

Evolution of Advertising in India

You can trace the evolution of advertising in India in the timeline
below:
1780: James Augustus Hickey started Hickey’s Bengal Gazette,
the first newspaper to be published from India. It advertised trade
and legal notices. With this print advertising started. It began with
classified advertising.
1883: Horlicks becomes the first brand to be patented as ‘malted
milk’.

Advertising & Sales Promotion 8

 School of Distance Education

1905: B. Dattaram and Co. started its operations in Mumbai and

it is the oldest ad agency.
1918: Tata Publicity, first professionally managed ad agency was
started.
1920: Foreign owned ad agencies entered the Indian market.
1929: James Walter Thompson (JWT) ad agency started its India
operations.
1939: The Indian and Eastern Newspaper Society (IENS) were
founded. Lintas advertising agency was started and they launched
Dalda, the first major example of branding.
1945: Advertising Agencies Association of India (AAAI) was
started.
1948: Audit Bureau of Circulation (ABC) was founded.
1952: The Indian Society of Advertisers was formed.
1955: Advertisers’ Club of Bombay (ACB) was set up.
1959: Telecasting of TV programmes commenced.
1967: First commercial was aired on Vividh Bharati, an AIR
channel.
1970: Sponsored programmes on radio were introduced.
1976: Doordarshan (DD) was separated from AIR, the first TV
commercial seen.
1982: Bombay Dyeing becomes the first colour TV ad.
1985: Advertising Standards Council of India (ASCI) was set up.
Advertising & Sales Promotion 9
 School of Distance Education

History of Advertising in India

Nearly eight decades earlier, Britishers use to import the things
they needed but later they started manufacturing them here itself
and that is when the advertising began for the manufactured
products by the Britisher to make people know about them. These
advertisements were initially the copy of advertisements they
showed in their country but later advertising agencies were
opened in India.
People would make public announcements on the streets about
their products and offers and some people had signboards outside
their shops telling about the product that they are selling in a way
that even an illiterate could understand.
In India, with the introduction of advertising in the 20thcentury,
work opportunities in the field increased and growth happened by
the launch of newspapers, radio, television, mail, magazines, and
now the internet.
We have divided and understood the history of advertising in
India in four parts:
1. The first stage (1947-1960):
We were liberated by the British rule but the 200 years of
being ruled had left a big impact on society. Imports were still
being done and the modernization was taking place but the
advertisement that was being put up was merely factual and
lacked creativity.

2. The second stage (1960-1980):

Creativity in the way of presentation of advertisements
improved and the advertisements was now more impactful to

Advertising & Sales Promotion 10

 School of Distance Education

the Indian culture than the British. Using creativity to

generate effective campaigns for company products using
images, slogans, and phrases.

3. Third stage (the 1980s):

In this phase focus from creativity shifted to creating more
impactful marketing channels so that the advertisement that
was being created could reach the maximum number of
people and in the most effective manner. In this era, more
radio and TV sets were becoming popular and agencies were
finding the best opportunities in them for their
advertisements.
4. Fourth stage (Current stage):
If we see today’s advertising scenario, it focuses on both
marketing channels as well as bringing appealing creativity in
the advertising. A lot of foreign companies started
manufacturing in India but to make the advertisements more
attractive and appealing for the Indians, the ads were created
in Indian ways, by casting Indian prominent faces.

Digitization
Slowly internet users are increasing and it has opened bigger
opportunities for the advertising agencies to spread their viewers
and customer not just locally but globally. Everything is backed
by advertisements. All the small and big websites are majorly
funded by the advertisers which show its importance on a bigger
scale. Digital marketing has given advertising a whole new
artistic appearance. In today's advertising scenario, creativity and
content win the market. Digital marketing focuses on marketing
products on the internet through various means like social media,
emails, blogs, videos, etc.

Advertising & Sales Promotion 11

 School of Distance Education

Advertising has a big role to play in creating awareness about

anything that could be of importance to people. It increases
customers for brands, people become aware of important services
that people or government is providing. Advertisements have
been here for a long time and have been through various changes
in the ways of their production and presentation. It is very
important to be aware of the history of advertising to be able to
understand how the changes have come with time and what
changes could be brought in the future by understanding the
history of advertising.

Objectives of Advertising
Objectives of advertising can be classified broadly into two types,
namely:

General Objectives
1. To inform: Done to build primary demand & inform
about new product availability. E.g. State bank of India.
2. To persuade: The objective is to build demand for a
particular brand. For E.g. Vodafone.
3. To remind: Established products advertise to remind
customers about the brand. E.g. Coca Cola.

Specific Objectives
1. Induce trial: Advertisers use it to encourage the customer to
try the new product. E.g. Vim gel.
2. Intensify usage: It is done to get another consumer segment
to try the product (mostly established brand). E.g. Cadbury’s
targeted older people by using Amitabh Bachchan

Advertising & Sales Promotion 12

 School of Distance Education

3. Sustain preference: Established brands advertise to maintain

their market share. E.g. Seagram’s Imperial Blue.
4. Confirm image: Established brands want to retain their
image in the minds of the customer. E.g. Nescafe ad.
5. Change habits: It is used to change the buying or
consumption pattern of the target customers. E.g. Johnson and
Johnson’s baby wipes.
6. Build line of acceptance: Is used to display the entire range
of brands. E.g. Videocon ad.
Features of Advertising
1. Communication: Advertising is a means of mass
communication reaching the masses. It is a non-personal
communication because it is addressed to masses.
2. Information: Advertising informs the buyers about the
benefits they would get when they purchase a particular
product. However, the information given should be complete
and true.
3. Persuasion: The advertiser expects to create a favourable
attitude which will lead to favourable actions. Any advertising
process attempts at converting the prospects into customers.
It is thus an indirect salesmanship and essentially a persuasion
technique.
4. Profit Maximisation: True advertising does not attempt at
maximising profits by increasing the cost but by promoting
the sales. This way it will not lead to increase the price of the
product. Thus, it has a higher sales approach rather than the
higher-cost approach.

Advertising & Sales Promotion 13

 School of Distance Education

5. Non-Personal Presentation: Salesmanship is personal

selling whereas advertising is non-personal in character.
Advertising is not meant for anyone individual but for all.
There is absence of personal appeal in advertising.
6. Identified Sponsor: A sponsor may be an individual or a firm
who pays for the advertisement. The name of reputed
company may increase sale or products. The product gets
good market because of its identity with the reputed corporate
body.
7. Consumer Choice: Advertising facilitates consumer choice.
It enables consumers to purchase goods as per their budget
requirement and choice. Right choice makes consumer happy
and satisfied.
8. Art, Science and Profession: Advertising is an art because it
represents a field of creativity. Advertising is a science
because it has a body of organised knowledge. Advertising is
profession is now treated as a profession with its professional
bodies and code of conduct for members.
9. Element of Marking Mix: Advertising is an important
element of promotion mix. Advertising has proved to be of
great utility to sell goods and services. Large manufactures
spend crores of rupees on advertising.
10. Element of Creativity: A good advertising campaign
involves lot of creativity and imagination. When the message
of the advertiser matches the expectations of consumers, such
creativity makes way for successful campaign.

Advertising & Sales Promotion 14

 School of Distance Education

Functions/Purposes/Importance of Advertising
The main function of advertising is to interpret for the target
audience / public at large, information about the product and
services being marketed by the client. To do so, the advertising
agency must go through a number of steps, which are given
below:

 know the strengths and weaknesses of the product and its

competition

 analyse the product’s current and potential market

 study the distribution network of the client

 select suitable and correct media for advertising the

product

 present the plan to the client for review and approval

 co-ordinate with the client’s sales and marketing activities

The basic function of advertising is to inspire, sustain and

increase the consumer base, distribution of products and primarily
boost sales of the client. The functions of advertising can be
categorized into two as – Primary function and Secondary
functions.

Primary Functions of Advertising

The primary functions of advertising can be specified as:
(a) Increase sales: Advertising informs the consumer about
the product, thereby securing more consumption, or
attracting attention towards a new product. Advertising
Advertising & Sales Promotion 15
 School of Distance Education

gives an impetus to the consumer to buy the product, thus

increasing the sales and in turn, higher profits.
Advertising helps to build up and encourage demand and
expand the market.
(b) Introduce a new product: Advertising is the ideal and
probably the only way to introduce a new / improved
product to the consumer. Thus passing on information
about the product as fast as possible to the consumer – and
creating a demand.
(c) Inducing dealers: Advertising prompts dealers to stock
more products as there would be a bigger demand for the
product. In areas where the product is in less demand,
advertising and direct contact with the dealer can induce
the dealer to maintain a better stock.
(d) Helps dealers: Advertising makes it easier for the dealer,
retailer to sell products faster, thus increasing their profits.
Dealing with such well-advertised goods has become
quite prestigious for the dealers, as the names of their
outlets also appear in the advertisement as dealers of the
product. Thus the dealers get free publicity for their outlet.
(e) Seasonal swing: Advertising eliminates the seasonal
swing. Selling of the product during the off-season period,
e.g., sunglasses can sell all year round.
(f) Awareness of the product: Advertisement creates
confidence in the mind of the consumer about the
advertised product. The consumer would rather buy a
product which he is aware of, rather than an unknown /not
advertised product - a product which he has not heard of.

Advertising & Sales Promotion 16

 School of Distance Education

(g) Increase of business: Where advertising makes way for

a demand for the product, it in turn increases sales, which
makes way for an increase in production, thus expanding
business. Advertising also creates goodwill in the market
and an increase in the volume of sales. This reduces
manufacturing cost, which in turn makes way for more
profit for the company and its shareholders.
(h) Perception function: It is through advertising that the
customer moves closer to buying the product. According
to Lavidge and Steiner, a person goes through several
steps before he decides to buy the product:

 awareness of the product

 knowledge of what the product offers

 liking for the product

 preference for the particular brand of the product

 the desire to buy the product

 the action of the consumer – to the actual purchase of

the product

Secondary Functions of Advertising

The secondary functions of advertising can be stated as:
(a) Spreading of information: The consumer gets all the
necessary information about the product, dealers,
manufacturer, etc. through advertisements, which are
often utilised to clear any doubts about the product – e.g.,
Pepsi and Coca-Cola recently had a problem with

Advertising & Sales Promotion 17

 School of Distance Education

pesticides in their products. Both the companies used

advertising as a medium to clear the doubts in the minds
of the consumer.
(b) Pride for the workers: Advertising increases demand
and thus there are higher sales, in turn, more production.
All this creates a sense of pride in the workers that the
product that they manufacture is so highly accepted in the
market. It builds a certain pride in the workers and eggs
more commitment to their work and its quality.
(c) Safety: Advertising leads to an increase in sales, leading
to a sense of safety and security of jobs for the workers.
(d) Better employees: The Company, with larger profits, can
create the best pool of employees from the market. The
employees, on the other hand, are attracted by the prospect
of working for a reputed and famous company and
enhancing their talent. Almost everyone desires to work
for reputed and leading companies like Tatas, Bajaj Auto,
Godrej, ICICI Bank and so on.
(e) Encouragement for the salesman: Advertising makes it
much easier for the salesman to meet the targets set by the
management. Advertising eases the job of the
salesman as regards the technical and other specific
details of the product. A good part of the selling is already
done by the advertisement.

Advantages of Advertising
Advertising indeed is undoubtedly an inseparable part of
marketing process. Let us look at what benefits it has for
manufacturers and consumers.

Advertising & Sales Promotion 18

 School of Distance Education

Pros of advertising for the manufacturer:

 It creates primary demand for the brands and hence results in
increased sales.

 After the initial sales continuous advertising will further

ensure a steady demand for the brand.

 Increased demand will ensure steady sales resulting in

quicker turnover.

 If the brand is being advertised steadily then over the years

it will generate consumer goodwill for the brand.

 If the demand of the brand is steady in the market then

dealers also show interest in keeping/warehousing the brand.

 Over the years manufacturers can sell the goods directly to

the consumer and reduced dependence on middlemen will
increase the profit as the commission given to these
middlemen is saved.

 Advertising will help salespersons in their sales process

because it makes the brand known to maximum number of
target consumers.

Pros of advertising for the consumer:

 Advertisements inform the consumers about product
availability.

 As many products are advertised simultaneously, consumers

can compare the brands and make a purchase decision. Of
course, consumers may not rely on advertisements solely to
do so.

Advertising & Sales Promotion 19

 School of Distance Education

 Advertising increases the competition amongst the brands.

Competing brands will improve the quality of the product in
order to attract the target consumers. Hence, consumers will
enjoy better quality of products.

 By eliminating the middlemen consumers will enjoy the

benefits of reduced prices.

 As consumers are well-informed about the product

availability and other details regarding the brand, they save
their time in purchase decision making process.

 Latest and upgraded products are advertised through

advertising and consumers are persuaded to buy these
products. This leads to improved standard of living of
consumers.

Cons of advertising for the consumer:

 Too many products on offer makes consumer ending up
purchasing them unnecessarily.

 Advertisements increase the price of the product, making it

costlier.

 Most of the advertisements are exaggerated, false, deceptive

and misleading, thus giving wrong notion about the brand.

 Manufacturers who have high advertising budgets advertise

more thus side lining those manufacturers who cannot afford
to spend more on advertising. This results in brand monopoly
and consumers may not be aware of the non-advertised
products.

Advertising & Sales Promotion 20

 School of Distance Education

 Too much of sex appeal is used in ads making them vulgar

and demeaning.

Classification of Advertising
There are several classifications of advertising which can be used
by the companies. Let us discuss them in detail. It is classified
under nine heads.
1. Product advertising
A normal characteristic of advertising is to create primary
demand for a product category rather than for a specific
brand. It is wrongly believed that product advertising must
stress on brand name. This is based on the feeling that a good
image often enhances the effectiveness of product
advertising. However, in practice, most companies are
successful in building the product image by using the brand
names (e.g., Dettol, Horlicks). In short, when the company
tries to sell its product or services through advertising it is
referred to as product advertising.
2. Institutional advertising
These advertisements are not always directed to consumers.
Instead, it is aimed at many of the various types of public
(shareholders, creditors, etc.). It is not product oriented but is
rather designed to enhance the image of the company.

3. Primary demand advertising

It is intended to stimulate primary demand for a new product
or product category. It is heavily utilized during the
introduction stages of the life cycle of the product.

Advertising & Sales Promotion 21

 School of Distance Education

4. Selective or competitive advertising

When a product enters the growth stage of its life cycle, and
when competition begins, advertising emerges and becomes
selective. Here, the goal of advertising is to increase the
demand for a specific product or service. Advertising may
begin to stress subtle difference in brands, with heavy
emphasis on 'brand name recall'. Pricing also will be used as
a key promotional weapon as products become very similar.

5. Comparative advertising
This is a highly controversial trend in today's competitive
market. Such types of advertising play a decisive role on
comparative features of two or more specific brands in terms
of product / service attributes. This method is adopted in the
maturity stage when similar products fast appear in the
market causing stiff competition.
6. Co-operative advertising
When manufacturers, wholesalers and retailers jointly
sponsor and share the expenditure on advertising, it takes the
form of co-operative advertising. Such advertising carry the
names of all the parties involved. From the customers' point
of view this is beneficial, as they can get the articles directly
from the authorized outlets.
7. Commercial advertising
It is also termed as business advertising. As the name
suggests such advertising is solely meant for effective
increase in sales.

Advertising & Sales Promotion 22

 School of Distance Education

8. Non-commercial advertising
These are usually published by charitable institutions
preferably to solicit general and financial help (such as
collection of donation or sale of tickets).
9. Direct Action advertising
Advertising that stresses and persuades immediate buying of
the product is known as direct action advertising. Direct mail
advertising is capable of achieving immediate action to a
large extent.
Limitations of Advertising:
Many people consider advertising to be a wasteful activity and
something harmful for the customers and the society in many
ways. Their arguments against advertisement are as follows:
(i) Advertising multiplies wants: People tend to desire and
buy products as they see in advertisement even if they do
not actually need or afford them. This multiplication of
wants may put them under financial and psychological
pressure.
(ii) Advertising adds to the cost and price of product: Money
spent on advertising eventually results in increased cost of
the product, which is passed on to the consumers through
increased prices. You must have noticed that the brands
which are advertised heavily in different media are found to
be priced higher as compared to those which are not so
heavily advertised.
(iii) Creation of monopoly: Business firms which can spend
heavily on advertising are usually the ones who grab a

Advertising & Sales Promotion 23

 School of Distance Education

bigger share of the market. Such firms generally have a

monopoly which results in unequal opportunity for small
producers to make a place for themselves in the market.
They do not get a fair opportunity to compete.
(iv) Advertising may affect the value-system of society:
Advertising may introduce ideas or concepts alien to our
culture. These new values generated or propagated by
advertising may affect our social, moral and ethical values
adversely. Objectionable appeals like sex, horror etc. are
sometimes used in advertisement to attract attention.
(v) Motivation for wrong or dangerous deeds: The way
advertisements project people consuming liquor, cigarettes
or pan-masala, may feel tempted by the people to try and
then get addicted to such products which are not good for
health. Similarly, models are shown doing dangerous acts
like jumping from the top of a hill which some children may
try to copy and may face the accidents.
(vi) Advertising may not increase overall demand:
Advertising does not always increase demand. In many
cases, a number of firms manufacturing similar products
may advertise vigorously. This may not result in an increase
in the total demand for the product but simply shift demand
from one brand to another.
Classification of Advertising Strategies
Advertising strategies could include any variety of methods but
should incorporate a web presence, social media and networking.
Traditional modes for advertising like radio, television or the
print media may also be used. The amalgamation of these
methods to be used by a company depends greatly on the
company’s budget, their target audience or market, and the
products or services being offered.
Advertising & Sales Promotion 24
 School of Distance Education

1. Print Advertising - The print media has been used for

advertising since long. The newspapers and magazines are
quite popular modes of advertising for different companies
all over the world. Using the print media, the companies can
also promote their products through brochures and fliers. The
newspaper and magazines sell the advertising space and the
cost depends on several factors. The quantity of space, the
page of the publication, and the type of paper decide the cost
of the advertisement. So an ad on the front page would be
costlier than on inside pages. Similarly an ad in the glossy
supplement of the paper would be more expensive than in a
mediocre quality paper.
2. Broadcast Advertising - This type of advertising is very
popular all around the world. It consists of television, radio,
or Internet advertising. The ads on the television have a large
audience and are very popular. The cost of the advertisement
depends on the length of the ad and the time at which the ad
would be appearing. For example, the prime time ads would
be more costly than the regular ones. Radio advertising is not
what it used to be after the advent of television and Internet,
but still there is specific audience for the radio ads too. The

Advertising & Sales Promotion 25

 School of Distance Education

radio jingles are quite popular in sections of society and help

to sell the products.
3. Outdoor Advertising - Outdoor advertising makes use of
different tools to gain customer’s attention. The billboards,
kiosks, and events and tradeshows are an effective way to
convey the message of the company. The billboards are
present all around the city but the content should be such that
it attracts the attention of the customer. The kiosks are an
easy outlet of the products and serve as information outlets
for the people too. Organizing events such as trade fairs and
exhibitions for promotion of the product or service also in a
way advertises the product. Therefore, outdoor advertising is
an effective advertising tool.
4. Covert Advertising - This is a unique way of advertising in
which the product or the message is subtly included in a
movie or TV serial. There is no actual ad, just the mention of
the product in the movie. For example, Tom Cruise used the
Nokia phone in the movie Minority Report.
5. Public Service Advertising - As evident from the title itself,
such advertising is for the public causes. There are a host of
important matters such as AIDS, political integrity, energy
conservation, illiteracy, poverty and so on all of which need
more awareness as far as general public is concerned. This
type of advertising has gained much importance in recent
times and is an effective tool to convey the message.
Steps in Advertising Process
“Mass demand has been created almost entirely through the
development of Advertising”
Calvin Coolidge in the New York Public Library.
Advertising & Sales Promotion 26
 School of Distance Education

For the development of advertising and to get best results one

need to follow the advertising process step by step. The following
are the steps involved in the process of advertising:

1) Step 1 - Briefing:
The advertiser needs to brief about the product or the service
which has to be advertised and doing the SWOT analysis of
the company and the product.
2) Step 2 - Knowing the Objective:
One should first know the objective or the purpose of
advertising. i.e. what message is to be delivered to the
audience?

3) Step 3 - Research:
This step involves finding out the market behaviour,
knowing the competitors, what type of advertising they are
using, what is the response of the consumers, availability of
the resources needed in the process, etc.
4) Step 4 - Target Audience:
The next step is to identify the target consumers most likely
to buy the product. The target should be appropriately
identified without any confusion. For e.g. if the product is a
health drink for growing kids, then the target customers will
be the parents who are going to buy it and not the kids who
are going to drink it.
5) Step 5 - Media Selection:
Now that the target audience is identified, one should select
an appropriate media for advertising so that the customers
Advertising & Sales Promotion 27
 School of Distance Education

who are to be informed about the product and are willing to

buy are successfully reached.

6) Step 6 - Setting the Budget:

Then the advertising budget has to be planned so that there
is no short of funds or excess of funds during the process of
advertising and also there are no losses to the company.
7) Step 7 - Designing and Creating the Ad:
First the design that is the outline of ad on papers is made by
the copywriters of the agency, then the actual creation of ad
is done with help of the art directors and the creative
personnel of the agency.

8) Step 8 - Perfection:
Then the created ad is re-examined and the ad is redefined to
make it perfect to enter the market.

9) Step 9 - Place and Time of Ad:

The next step is to decide where and when the ad will be
shown. The place will be decided according to the target
customers where the ad is most visible clearly to them. The
finalization of time on which the ad will be telecasted or
shown on the selected media will be done by the traffic
department of the agency.
10) Step 10 - Execution:
Finally the advertise is released with perfect creation, perfect
placement and perfect timing in the market.

Advertising & Sales Promotion 28

 School of Distance Education

11) Step 11 - Performance:

The last step is to judge the performance of the ad in terms
of the response from the customers, whether they are
satisfied with the ad and the product, did the ad reached all
the targeted people, was the advertise capable enough to
compete with the other players, etc. Every point is studied
properly and changes are made, if any.
If these steps are followed properly then there has to be a
successful beginning for the product in the market.
Major Players in Advertising Process
In the process of advertising, there are specific players who
deliver different functions, the entire combination of which
constitutes the entire intricate mechanism of advertising. These
five players are:
(1) Advertiser: The advertiser is basically the company
whose product or service is going to be promoted through
the incorporation of advertising. In the eventual realm of
affairs, the impact of the final advertisement is going to
leverage him the most as its his brand whose future
depends upon the nature of the advertising. In the industry
language it is called ‘Account’.
(2) The advertising agency: While the advertiser will get
affected the most (positively or negatively), it's the
advertising agency, which plays the greatest role in
generating the impact of the advertisement. In other
words, the advertising agency is verily responsible for the
magnitude of effectiveness of the advertisement, the
outcome of which will make or break the brand.

Advertising & Sales Promotion 29

 School of Distance Education

(3) The media: As for the media or the medium that will be
chosen to deliver the advertisement, these different media
that include electronic, print and interactive media, which
constitute the channels of communication that will be
employed to enhance the reach factor for the brand. The
better and more compatible the media (channel of
communication) is, the greater the outcomes of
advertising.
(4) The vendor: Vendors are not directly related to any of the
above-mentioned stakeholders. They have an indirect yet
significant relationship with the advertising procedure.
Consisting of players like freelancers, consultants and
self-employed professionals, the vendors actually provide
aegis to the advertiser in helping him and the advertising
agency to achieve the optimum quality of advertising that
will not only be substantial but would also exude adequate
charm.
(5) The target audience: Last but definitely not the least, it
is the target audience that requires the utmost mention.
They are the final deciders, the ultimate stakeholders
whose consent would be the eventual determinant in
shaping the present and future of the advertised brand.
Advertising Agency
An advertising agency, (abbreviated to ‘ad agency’) is a team of
experts appointed by a client to plan, produce and place
advertising campaigns in the media. The American Association
of Advertising Agencies (AAA) defines an advertising
agency as “an independent business organisation composed of
creative business people, who develop, prepare and place

Advertising & Sales Promotion 30

 School of Distance Education

advertisements in the media, for sellers seeking to find customers

for their goods and services”.
An advertising agency is a service organisation, which comprises
of a body of creative specialists in their respective fields. Very
broadly, an advertising agency can be categorized as a
“departmental organisation”. There are major departments for
each different function, headed by a department head, who
is a specialist in that particular field. All the personnel in the
department are responsible to the departmental head. An
advertising agency has various departments with a specific task
to perform and exhaustive information about these departments
and their personnel and function will follow further in the
text.

Evolution & History of Advertising Agency

 Volney B Palmer in Philadelphia started the first Ad agency

as a space broker in 1841. He acted as a simple agent, selling
space for his client newspaper on a commission basis. He
made no effort to help the advertiser prepare copy, design a
layout and provide the many specialized services now
performed by a modern agency.

 Since then, the nature of an agency has changed

considerably, but the method of compensation in the form or
a fixed percentage of advertising billing continues in spite of
the inherent defect of the system, for the agency generally
recommends only a higher media budget than may be
appropriate.

 It was only by the beginning of this century that the agency

started to prepare advertisements and deliver them through
the advertisements media. Lord and Thomas was probably

Advertising & Sales Promotion 31

 School of Distance Education

the first agency in the USA, with a reputation for creative

work in advertising. It hired copywriters, who did a
marvelous job. One of the famous advertisement deliveries
of this agency was for a new washing machine. Other
agencies also started adopting the new services; and soon
many advertisement agencies had established departments
for copywriting, artwork, layout design, media selection, etc.

 Over the next several decades, the advertisement agency

improved the quality of its services, besides offering
additional new services at extra charge. Agency growth has
never looked back since then It has grown in size and
influence through the years, demonstrating an ability to
create effective advertising. Towards the end of the first half
of this century, there were several large agencies offering a
full range of advertising services. They produced effective
advertisements by taking into account consumer psychology
and human needs and wants. Creative advertising appeals
effectively influenced consumers to buy the advertised
products and services. In fact, advertising at this stage,
became a part of the overall marketing mix, furthering the
sales and marketing strategy.

 An advertising agency is shortened as ad agency. Ad agency

is a team of experts appointed by clients to plan, produce and
place advertising campaigns in the media. They are called
agencies, because literally they are agents of the media who
pay them the commission, and the media thus becomes the
principal. Media pays commission to only accredited
agencies (INS accreditation), The agency works for the
client, but draws its sustenance from the media (nearly 75
p.c.).

Advertising & Sales Promotion 32

 School of Distance Education

Functions of Advertising Agency

(1) Attracting clients

 Advertising agency needs clients (advertisers). Without

them, it cannot survive.
(2) Account Management

 Within an advertising agency the account manager or

account executive is tasked with handling all major
decisions related to a specific client.

 The account manager works closely with the client to

develop an advertising strategy.

(3) Creative Team

 The principle role of account managers is to manage the

overall advertising campaign for a client, which often
includes delegating selective tasks to specialists.

 Advertising agency put the advertising-plan into action

under its creative function. Creation of ads is the most
important function of an ad agency. Generally, it involves
activities like:

 Copy writing, Drawing photographs, Making

illustrations, layouts, an effective ad message, etc.

 These jobs are done by experts like copy writers, artists,

designers, etc. These people are highly skilled and
creative. They make an advertisement more appealing.
Attractive ads help to increase the sales of the product.

Advertising & Sales Promotion 33

 School of Distance Education

(4) Researchers

 Full-service advertising agencies employ market

researchers who assess a client’s market situation,
including understanding customers and competitors, and
also are used to test creative ideas.

 Advertising agency gathers information related to the

client's product. It collects following information about a
product under its research function:

 Features, quality, advantages and limitations of a product,

Present and future market possibilities, Competition in the
market, Situation in the market, Distribution methods,
Buyers' preferences, so on

 Ad agency analyses (studies) all this collected information

properly and draws conclusions for its research. It helps
in planning an advertising campaign, selecting proper
media and creation function.
(5) Media Planners

 Advertising agency helps an advertiser to select a proper

media (ad platform) to promote his advertisement
effectively.

 Media selection is a highly specialized function of an ad

agency. It must select the most suitable media for its
client's ad.

 Advertising agency plans the entire ad campaign of its

client. Advertising planning is a primary function of an
ad agency. It is done when its research function is
completed. That is, after analyzing the client's product,
Advertising & Sales Promotion 34
 School of Distance Education

its competitors, market conditions, etc. It is done by

experts who use their professional experience to make a
result-oriented advertising-plan.

 Once an advertisement is created, it must be placed

through an appropriate advertising media.

 Each advertising media, of which there are thousands,

has its own unique methods for accepting
advertisements, such as different advertising cost
structures (i.e., what it costs marketers to place an ad),
different requirements for accepting ad designs (e.g., size
of ad), different ways placements can be purchased (e.g.,
direct contact with media or through third-party seller),
and different time schedules (i.e., when ad will be run).
Understanding the nuances of different media is the role
of a media planner, who looks for the best media match
for a client and also negotiates the best deals.
(6) Advertising budget

 Advertising agency helps an advertiser to prepare his ad

budget. It helps him to use his budget economically and
make the best use of it.

 Without a proper advertising budget, there is a risk of

client's funds getting wasted or lost.

(7) Coordination

 Advertising agency brings a good coordination between

the advertiser, itself, media and distributors.

Advertising & Sales Promotion 35

 School of Distance Education

(8) Sales promotion

 Advertising agency performs sales promotion. It helps an

advertiser to introduce sales promotion measures for the
dealers and consumers. This helps to increase the sales of
the product.
(9) Public relations

 Advertising agency does the public relations (PR) work

for its clients. It increases the goodwill between its clients
and other parties like consumers, employees, middlemen,
shareholders, etc. It also maintains good relations between
the client and media owner.

(10) Non-advertising functions

 Advertising agency also performs many non-advertising

functions:

 It fixes the prices of the product, It determines the

discounts, It designs the product, It also designs its
package, trademarks, labels, etc.
Structure of Advertising Agency
1) Accounts Executive or Director: Key Executive of
Agency The agency’s key executive is Accounts
Executive (he is accounts director when he is a member
of the Board in case of a limited agency). Account in
advertising parlance means a client. Thus Hindustan
Lever is an account for Lintas, or ITC is an account for
Lintas. This accounts executive is a link between the
agency and client. Functions of Accounts Executives -

Advertising & Sales Promotion 36

 School of Distance Education

 He understands what the client wants.

 He has to get this done through his agency.

 The marketing or sales or advertising department of

the client briefs him.

 He communicates this to the agency people.

 He is also called client service executive.

2) Account Planning or Client Servicing: An ad agency’s

primary function is to create advertising, and account-
planning function provides a basis for this. Account Planner
has to perform a number of functions.

 Planning the objectives of the advertising: Here he makes

use of skills of analysis, synthesis, logic and insight.

 Selecting and evaluating research feedback on the basis of

which the team makes judgments and takes decisions.

 Making the objective and the feedback relevant and

stimulating to the rest of the team particularly the creative.

 An account planner may not head the account team

mayor. But the above function should be attended to. It is
better to invest a separate person with the composite
responsibility. The positive use of research is establishing
a dialogue between the creative team and the consumer is
a valuable contribution that’ a planner can make.

 Selecting and evaluating research feedback on the basis of

which the team makes judgements and takes decisions.

Advertising & Sales Promotion 37

 School of Distance Education

 Making the objective and the feedback relevant and

stimulating to the rest of the team particularly the creative.
3) Accounts Manager: The importance of account management
in client-agency relationship is on the decline. Successful
account managers are true experts on their client’s brand and
competitions, and have a clear point of view. Clients talk to
them, and use then as sounding boards. The client seeks their
advice.

 They are also used as surrogate brand managers,

especially for getting things done. Account managers
lacking expertise face the threat of extinction.

 Planning in agencies conforms to brand responses - the

desired responses that a brand’s advertising should
generate. But when we advertise, apart from brand
responses we also generate advertising responses, - effects
on our target audience like amusement, education,
entertainment moving effect etc. Many times, these
advertising responses are an essential part of what the
brand is offering the consumer. Failure to see advertising
responses makes our planning remote and ineffective.
4) Copywriters: Modern days agencies have two major
sections. The two sides are supplementary to each other.

 Now the creative section has a team of bright, talented

copywriters who do the wording of an advertisement.

 Copywriters contribute to the theme of an advertisement,

like a college girl asking another the secret of her flawless
complexion, and as an answer coming to know that it is
Clearasil Cream. Now this is called copy platform.

Advertising & Sales Promotion 38

 School of Distance Education

 These copywriters report to their head, who may be called

Copy Chief’ or Chief’ Copywriter.
5) Visualisers: The visualiser puts on paper what has been
thought out by the copywriter. He in fact designs the ad. He
takes the help of layout artists, typographers’ and finished
artists who prepare the final artwork. As you will see, creative
energies of copywriters must be coordinated with the design
energies of the visualisers.
6) Creative Directors: The person who performs this role is
called the Creative Director. So now we can put here the
organizational structure of the Creative Section of an ad
agency. Now we shall come to the studio-based production
department, which delivers a complete approved ad copy.
This department is in charge of the production manager who
has several assistants. For prints ads, these people do
typography, lettering, blocks, stereos, and electros. They also
supply text and artwork for photogravure process.
7) Freelancers: Production manager organizes the workflow
(copy and artwork proofs and corrections - final copy as per
time schedule). In larger agencies this workflow is under the
control of a traffic controller. Some part of the production
work can be bought from free-lance sources.
8) Media: The Media planner understands the budget and how
the ad is to allocated in various medias.
9) Marketing Service Department: In addition to this the
agencies also have a Marketing Research Department, which
does product research, consumer research, positioning
studies, price and distribution research, sales and packaging
research and motivational research.

Advertising & Sales Promotion 39

 School of Distance Education

10) Public Relations Cell: The administrative manager, with

office, accounts and finance functions are few of the other
departments. Some agencies have a separate Public Relations
cell. So this is what an agency looks like.
11) Plan Board: The top management of an ad organization
consists of a Plan Board. This comprises of a committee of
department heads, be it media, accounts, PR, creative, etc. it
plans campaigns by consensus.
12) Review Board: The other is the Review Board. This
committee reviews and criticizes a campaign, which it has not
planned or created.
Types of Advertising Agencies
There are basically 5 types of advertising agencies.

1. Full service Agencies

 Large size agencies.
 Deals with all stages of advertisement.
 Different expert people for different departments.
 Starts work from gathering data and analyzing and
ends on payment of bills to the media people.
2. Interactive Agencies
 Modernized modes of communication are used.
 Uses online advertisements, sending personal
messages on mobile phones, etc.

Advertising & Sales Promotion 40

 School of Distance Education

 The ads produced are very interactive, having very

new concepts, and very innovative.

3. Creative Boutiques
 Very creative and innovative ads.
 No other function is performed other than creating
actual ads.
 Small sized agencies with their own copywriters,
directors, and creative people.

4. Media Buying Agencies

 Buys place for advertise and sells it to the
advertisers.
 Sells time in which advertisement will be placed.
 Schedules slots at different television channels
and radio stations.
 Finally supervises or checks whether the ad has
been telecasted at opted time and place or not.
5. In-House Agencies
 As good as the full service agencies.
 Big organization prefers these type of agencies
which are in built and work only for them.
 These agencies work as per the requirements of
the organizations.

Advertising & Sales Promotion 41

 School of Distance Education

There are some specialized agencies which work for some special
advertisements. These types of agencies need people of special
knowledge in that field. For example, advertisements showing
social messages, finance advertisements, medicine related ads,
etc.
Advertising Agencies in India

 In India, advertising business is worth Rs. 8,000 crores.

There were only 62 advertising agencies in 1958, which
increased to 168 in 1978, more than 2.5 times the numbers in
1958. There are more than 500 ad agencies today.

 The oldest and largest advertisement agency in India is

Hindustan Thompson Associates Ltd. The second largest
advertisement agency is Lintas.

 Mumbai is considered to be the Mecca of Indian advertising.

These days agencies are also being set up at Bangalore,
Madras, Hyderabad, Ahmedabad and Delhi.

 In India the ad agencies are sole proprietary concern,

partnership or private limited companies.

 It is better to operate agencies on professional lines, rather

than as a family. It is good to install MBO (Management By
Objectives). An agency must necessarily plough back at least
75 % of its profits into business.

 The advertising agencies are shifting from the creative mode

to the marketing mode. Today the onus is on the agency to
supply the client with data on his industry; the days of the
clients briefing the industry are almost over. The agencies
are expected to maintain database. There is a leaning towards

Advertising & Sales Promotion 42

 School of Distance Education

software for optimizing media usage, and computerization of

studio functions.

 In India, the legal structure of ad agencies is that of a small

proprietary concern or a big partnership. Sometimes, they are
private limited companies, either big or small.

 Indian advertising is a fragmented business. There are over

733 agencies accredited to INS. The top 25 account for 50%
of all billings. In addition, there are many accredited
agencies.

 It is the top 25 agencies, most of which are headquartered in

Mumbai, that set the pace and define the shape of the
industry.

 Agencies like HTA, Lintas, Clarion and O & M have shaped

the entire advertising industry in the country. Many Indians
firms are coming up, by importing Western ad techniques.

 Many agencies die a premature death. Most people do not

appreciate that an agency –like any other business - must be
properly managed. It is simply not enough just to have great
idea. In recent years, there has been a healthy trend towards
sound management practices, especially financial planning
and control.

 This is a highly paid profession. It is a conspicuous high

wage island. People operate on high profile. Their life-styles
are opulent because of high expense accounts ‘of
entertaining clients. They got their elitist brand due to this
reason. But high salaries and freedom are necessary to attract
talents.

Advertising & Sales Promotion 43

 School of Distance Education

 Women have been an integral part of this profession. We

have examples of Rhoda Meha; (OBM, Media Director),
Nargis Wadia (Interpub, MD), Usha Katrak (ASP for many
years), Tara Sinha (Tara Sinha Associates Delhi; Formerly,
Clarion).
Marketing is an integral part of any startup or business.
Advertisement is a great way to promote your products, services
on various platforms. Whether it is a newspaper, a magazine,
YouTube, or online streaming platforms like Netflix, Amazon
Prime, Spotify, or huge advertisement boards all around our
cities. But it is important to create advertisements that leave a
lasting impact on customer's minds. Luckily, there are top
advertising agencies in India that can help you create good
marketing campaigns.
These advertising agencies help design and display
advertisements for various brands and companies. These top
advertising companies provide advertising services across all
these platforms and services such as digital marketing, Facebook
marketing, Google AdWords, and more.

Top 10 Advertising Agencies in India 2020

(1) Crayons Advertising
This company was founded about 25 years ago. Its main
headquarters are based in New Delhi with many other branches
all over India. The company designs advertisements mainly for
television, newspapers, and radio. It is one of the largest
growing creative agencies in India. It is popular for its creative
advertisement.

Advertising & Sales Promotion 44

 School of Distance Education

This company has won many awards for its work that include:
Dainik Bhaskar Ink Award, Gold in Delhi Ad Club Awards,
Advertising Agencies Guild Award, and Gold for World Heart
Day Campaign in ASTER Awards. Its clients include many big
companies such as Lotto Shoes, Kohinoor Foods Limited, Kajaria
PLY, J&K Tourism, Casio, State Bank of India, Air India, LIC,
Apollo, and many more.
(2) DDB Mudra Group
Earlier known as 'Mudra Communications Limited', this company
is one of the top ad agencies in India or creative ad agency in
India. The company was founded in the year 1980 with only 15
employees. This company was behind the successful campaign of
'Rasna' with the tagline 'I love you Rasna' in the year 1983. The
DDB Mudra Group is a leading marketing and advertising agency
in India.
Some of the many awards won by this agency are: Silver for
Creative Agency of The Year and Gold for Talent Development
Program at the Campaign South Asia Agency of the Year and
more. This company has many big clients including Pepsi, Linen
Club, Colgate, McDonalds, Puma, Reebok, Peter England, and
many other big companies.
(3) SocialPulsar
Originally based in San Francisco, USA, Socialpulsar is one of
the best media agencies in India. SocialPulsar is an AI-driven
agency that provides not only advertising services, but Social
Media Optimization, Content Management, Brand Analysis and
Management, Digital Marketing Strategy, and more services.
SocialPulsar has won the ‘25 Most Influential Mobile Marketing
Leaders’ award at the World Marketing Congress (WMC). It

Advertising & Sales Promotion 45

 School of Distance Education

serves many big clients such as Renault, OPPO, Speak INC.,

Skyline, and more.

(4) Grey Advertising

Despite being one of the best advertising agencies in India, Grey
advertising is one of the world’s top advertising agencies. It is an
award-winning advertising agency that also offers other services
to its clients such as public relations, public affairs, sale
promotions, and more. The awards won by the company include
10 Cannes Lions and a Clio. The company has served clients like
Gillette, Pfizer, Eno, Sensodyne, Duracell, DELL, P&G, and
more.
(5) Creation Infoways
Creation Infoways is a digital marketing agency based in New
Delhi that provides advertisement services across digital
platforms such as Google, Facebook, and Android Applications.
This company is certified by Google Partner, Germany Cert,
Clutch, and Nasscom. This company provides a full digital
marketing package that includes SEO (Search Engine
Optimization) services, Facebook marketing, Google Analytics,
etc. The clients of this company are companies such as Myntra,
FIITJEE, National School of Drama, giBS, etc.

(6) Avail Advertising

Avail Advertising is a top advertising agency in India that is
based in Pune that was founded over 30 years ago. It provides
many advertising services such as print, audio visuals, Search
Engine Optimization, exhibitions, and event management. It has
been offering services to its clients for over 25 years. Some of the
many clients of this company are Tata Technologies, JW
Marriott, fssai, Toyota, LAVASA, and others.
Advertising & Sales Promotion 46
 School of Distance Education

(7) Triverse
Triverse Advertising was founded in the year 2008 by Suresh
Tiwari. It is an "advertising agency" that believes in making your
brand a brand of choice. This agency creates advertisements for
clients across many platforms such as YouTube, TV
Commercials, Radio, Print, and more.
Along with advertising, this company provides services such as
Brand Strategy, Brand Marketing, Website Development, Search
Engine Management, Blogging, and video content development.
Some of its clients are companies such as SMC, Plumber
FAUCETS, The Belmonte, Godfather, etc.
(8) Purnima Advertising
Purnima Advertising was founded in 1994. It is a top company in
India and one of the best ad agencies in India that offers
Advertising services to its clients. It also offers other services
such as brand strategy, design, and media planning. This
company has many clients that include government agencies such
as AADHAR, BSNL, Gujarat Tourism, and Himachal Tourism
and non-government agencies such as DS Group, Gits, Nirma,
Shopclues.com, Sleepwell, Ching’s, etc.

(9) Web Cures Digital

Web Cures Digital aims to bring your local business on top of
search engines such as Google, Bing, DuckDuckGo, Yelp, and
others. This company was founded in 2013 and its headquarters
are based in Ahmedabad, Gujarat. It provides advertisement
services along with Search Engine Optimization, Social Media
Marketing, and Email Marketing. This company also offers
consultancy on Search Engine Optimization, Web Development,

Advertising & Sales Promotion 47

 School of Distance Education

and Pay Per Click (PPC) Management. PPC advertising is a good

way of generating more traffic for your website.

(10) Urja Communications

Urja communications are one of the top advertising agencies in India
2020. This company was founded in 1986. Its headquarters are
based in Mumbai, Maharashtra. It provides its clients with digital
and email marketing and communications services. It has many
big companies as its clients, some of which are: HDFC Bank,
Standard Chartered, Axis Bank, Aditya Birla Capital, Jana Small
Finance Bank, and many more.

Advertising & Sales Promotion 48

 School of Distance Education

Module II
Advertisement Budget

The advertising budget is actually one of the important

components of marketing budget. Advertisers must first analyse
the expected results and then only invest in any campaign.
Campaign goals and objectives must be first determined and
budget should be set accordingly. A well planned budget helps
ineffective utilization of funds and avoids wastage. There are
different techniques of setting the ad budget which are discussed
below:
(1) Based on previous years’ expenditure on advertising.
(2) Percentage of sales technique, here advertisers assess the
annual sales and then set budget.
(3) At par with competition, meaning whatever is spent by the
competition equal budget is set by the advertisers.
(4) Objective-based budget, here advertisers first consider the
available funds and then either cut the number of objectives
or prioritize them according to the existing funds.

Factors Influencing Advertising Budget

(a) Advertising Plans: The advertising objectives, strategies
and programmes determine the total amount of expenditure
to be incurred by the company for advertising purposes. The
internal as well as external opportunities are evaluated for the

Advertising & Sales Promotion 49

 School of Distance Education

appropriation. The objectives refer to advertising

opportunities which can be exploited by the company.
(b) Marketing Opportunities: Marketing opportunities
determine the amount of appropriation. Advertising should
exploit the potential of the market. The characteristic of
consumers and their respective requirements would suggest
the total amount of funds to be utilised by the company.
Marketing opportunities are different in different markets, so
the quantum of advertising appropriation has to be
differently determined to arrive at the total amount to be
budgeted.
(c) Competition: The nature and pressure of competition
influence the size of the appropriation. A greater intensity of
competition may call for larger funds for advertising.
Competitive advertising helps expand demand. Domination
of media or markets by the competition may call for larger
funds.
(d) Product Life Cycle: The product life cycle is also an
important determinant of the size of the total budget
Consumer awareness and increased usage are taken into
account to determine the level of advertising and costs. A
knowledge of the life cycle of several products of the
company is helpful in determining the size of the
appropriation and the budget.
(e) Costs of Advertising: The total costs of advertising are
decided for appropriation. The advertising costs include the
expenses incurred on developing and preparing
advertisements, designing the message and selecting the
media. The fees for action, direction, the costs of building
sets and travelling to locations, tape recording and visual

Advertising & Sales Promotion 50

 School of Distance Education

cassette recording, expenses on print media and broadcast

media, etc., are included in the costs of advertising.
(f) Type of Product: The type of product to be marketed
determines the size of the appropriation. Consumer products
require a larger advertising budget than industrial products.
If the opportunities for product differentiation are
substantial, the returns on advertising will be higher than
those on undifferentiated products.
(g) Retailing: Advertising will be less in demand if retailing is
co-operative and effective. If retailers do not communicate
product attributes to consumers, advertising becomes
essential. Advertising and retailing create a demand for the
product in the market.

Procedures of Advertising Budget

1) Preparation of Budget: The advertising budget generally
prepared by the advertising manager in consultation with
marketing manager. The advertising budget mainly made
on the basis of inputs such as; type of product, target
market, demographic composition, advertising copy, and
media; provided by the marketing research people.
2) Presentation and Approval of Budget: Once the
advertising budget prepared by the advertising managers,
it is presented in front of the top management for the
approval.
3) Execution of the Budget: After approval, the approval
process, the advertising manager execute the overall
budget. At the time of execution, the budget allocation are
to be considered for various activities.

Advertising & Sales Promotion 51

 School of Distance Education

4) Control of Budget: Once the advertising department of

an organization execute the budget, the result come out.
So in this stage of advertising budget process, the
management ensures the correct use of advertising budget
by evaluating the overall effectiveness of advertising
programme.
Approaches to Advertising Budget

1) Top Down Approach

 Top Management sets the spending limit.

 Advertising budget is set within the allocation limit

 Advertising objectives and activities are planned

according to the set budget.

 It is a Judgemental Approach

 Budget is not linked to the objectives.

 This leads to predetermined budget allocations which

are not related to advertising objectives.

 Methods – Affordable Method, Arbitrary Allocation,

Percentage of Sales, Competitive Parity, Return on
Investment.

The top-down approach of budget setting includes

following methods:
(a) Affordable Method: Under this approach, a company
spends as much on advertising as it can afford. It can
spend for advertising as much as the funds permit. From
the name itself, it is clear that the affordable amount set
Advertising & Sales Promotion 52
 School of Distance Education

aside for advertising is known as affordable method. This

approach appears to be more realistic, for all companies
generally spend that much amount on advertisements
which they can afford, even though they may not say so.
As advertising outlays are growing out of all proportions
in the modern business, this method seems to provide a
basis for many firms with regard to advertising outlet.
Generally, a firm has to take into account the financial
constraints while resorting to advertisement schemes.
(b) Arbitrary Allocation: In this method, the budget is
determined by the manager solely (alone) on the basis of
his/her judgment, or without any rationality or rule.
(c) Percentage of Sales: This method is one of the most
widely used method for setting the appropriation.
“Percentage of sales method is based on the previous
year’s sales, on estimated sales of coming year or on some
combination of these two”. This method include
following two:
i) Straight percentage of sales
ii) Percentage of unit cost.
(d) Competitive Parity: This approach is followed by
organizations whose product is well established and
operating in market with predictable sales pattern.
Organizations following this approach compare their
advertising spending with that of its competitors. As the
organization is aware of how much its competitors are
spending in advertising, it can logically decide its
advertising budget either equal, more, or less to that of the
competitors. Here considering competitors advertising
budget organization should consider its objectives too, as
Advertising & Sales Promotion 53
 School of Distance Education

the competitor’s objectives may not be similar or

comparable.
(e) Return on Investment: This method, also referred to as
‘rate on investment’ or ‘incremental method’, considers
advertising and promotion as investments, like plant and
equipment. Therefore, investment in the budgetary
appropriation i.e. expenditure on advertising and
promotion is expected to bring certain returns. This
method measures the return in terms of increased sales on
spending advertisement appropriation in comparison to
the sales on not spending anything.

2) Bottom/Build Up Approach

 Advertising objectives are set.

 Activities necessary to achieve objectives are

planned.

 Costs of different advertising elements are budgeted.

 Total advertising budget is approved by top

management.

 Budget is allocated on the basis of activities

considered essential to accomplish the objectives.

 Methods – Objective and Task Method, Pay-out

Planning, Experimental Method
The bottom-up approach includes following methods:
(a) Objective and task method: The objective and task
method includes the following three steps.

Advertising & Sales Promotion 54

 School of Distance Education

i) Defining the communication objectives to be

accomplished.
ii) Determining the specific strategies and task needed to
attain them.
iii) Estimating the costs associated with performance of these
strategies and tasks.
(b) Pay-out planning method: The method is widely used for
making advertising budget for the new product. A pay-out
plan is developed to determine how much to spend.” The
basic idea behind pay-out planning method is to project the
revenues the product will generate over two or three years, as
well as the cost it will incur.” This method is based on the
expected rate of return. This method is helpful for
determining how much advertising expenditures will be
necessary when the return might be expected.
(c) Experimental Method: In the experimental method varying
advertising expenditures are used in different cities. For
example the advertising expenditure in Pune may be greater
than the advertising expenditure in Hyderabad. Then sales in
the two cities are compared to find out which is optimum level
of expenditure look alike, was a striking television
commercial that immediately gained attention

Regulation of Advertising
Advertising regulation is a fascinating subject, and it is heavily
determined by political attitudes. Those who believe in less
government and think that business should be left alone to
regulate itself tend to favour less advertising regulation. Others
who believe government has a role to play tend to want more
legislation and government regulation.
Advertising & Sales Promotion 55
 School of Distance Education

To understand advertising regulation, a host of issues need to be

addressed. One advertisement claimed that a hair dye would
colour hair permanently. If someone exposed to the advertisement
believed that the dye would hold for hair not yet grown and thus
a single dye would last for decades, is the claim deceptive?
Coming to Indian experience, put brand X fairness cream and you
will get married.
A basic issue in the enforcement of these laws against
deceptive advertising, to which we now turn, is how to define
and identify deception.
Conceptually, deception exists when an advertisement is
introduced into the perceptual process of some audience and the
output of that perceptual process.
1. Differs from the reality of the situation and
2. Affects buying behaviour to the detriment of the
consumer.
The input itself may be determined to contain falsehoods. The
more difficult and perhaps more common case, however, is when
the input, the advertisement, is not obviously false, but the
perceptual process generates an impression that is deceptive. A
disclaimer may not pass through the attention filter or the message
may be misinterpreted.
Dividing the definition into its three major components, it
states that deception will be found if
1. There is a misrepresentation, omission, or practice that is
likely to mislead.

Advertising & Sales Promotion 56

 School of Distance Education

2. The consumer is acting responsibly (or reasonably) in the

circumstances.
3. The practice is material and consumer injury is possible
because consumers are likely to have chosen differently if
there was no deception.
A Misrepresentation or Omission
There are a variety of ways in which misrepresentations or
omissions can occur:
1. Suggesting that a small difference is important.
2. Artificial product demonstrations
3. Using an ambiguous or easily confused phrase.
4. Implying a benefit that does not fully or partially exist.
5. Implying that a product benefit is unique to a brand.
6. Implying that a benefit is needed or that a product will
fulfill a benefit when it will not.
7. Incorrectly implying that an endorser uses and advocates
the brand.
8. Making a claim without substantiation
9. Bait and switch
10. Identifying the advertising
11. Telemarketing
12. Intellectual property

Advertising & Sales Promotion 57

 School of Distance Education

Advertising Standards Council of India (ASCI)

ASCI consists of a Board of Governors and a Consumer
Complaints Council. The Board of Governors comprises four
members from each of the four sections connected with the
advertising industry:
 Advertisers
 Advertising Agencies
 Media (owners of press, television, radio etc.)
Related sectors (e.g. outdoor agencies, PR, market researchers, ad
producers, business schools) The ASCI Code: Self-Regulation of
Advertising To regulate advertisement in India, ASCI has
adopted a Code for Self-Regulation in Advertising ("ASCI
Code"), which applies to all involved in the commissioning,
creation, placement, or publishing of advertisements. This ASCI
Code applies to advertisements read, heard, or viewed in India
even if they originate or are published abroad so long as they are
directed to consumers in India or are exposed to a significant
number of consumers in India.
Though non-statutory, the ASCI Code is recognized under
various Indian laws in addition to being adopted by advertising-
industry bodies. Notably, the ASCI Code provides that it is not in
competition with any law, its rules, or the machinery through
which they are enforced, thus the ASCI Code is designed only to
complement legal controls under such laws and not to usurp or
replace them.
“THE CODE FOR SELF-REGULATION IN ADVERTISING
PERTIENT EXRACTS” was adopted by “The Advertising
Standards Council of India” in November 1985 under the 1

Advertising & Sales Promotion 58

 School of Distance Education

Introduction At present in India, there is no central statutory

agency or uniform legislation regulating the advertising industry.
The Indian advertising market as a whole is regulated and
controlled by a non-statutory body, the Advertising Standards
Council of India (ASCI). In the absence of uniform integrated
legislation, it is necessary for advertisers to ensure that an
advertisement is in compliance will all local and national
advertisement laws.
Laws: Statutory Regulation of Advertising
Complementing the ASCI Code are Indian laws governing
specific media, specific populations, and specific goods and
services. The most significant of these laws are listed here.
Laws Governing Media
 The Press Council Act 1978
 Cable Television Network Rules, 1994
 Code for Commercial Advertising on Doordarshan and
All India Radio
 Electronic Media Monitoring Centre (EMMC)
 Norms for Journalist Conduct issued by the Press Council
of India
 Code of Conduct of the News Broadcasters Association
Laws Protecting Society and the Consumer (Reference Only)

 Emblems and Names (Prevention of Improper Use) Act,

1950

Advertising & Sales Promotion 59

 School of Distance Education

 Young Persons (Harmful Publications) Act, 1956

 Companies Act, 1956

 Standards of Weight & Measures Act, 1976

 Indecent Representation of Women (Prohibition) Act,

1986

 Consumer Protection Act, 1986

 Laws related to Intellectual Property Rights

Social, Economic and Ethical Aspects of Advertising
Advertising is praised but also criticized by critics in their own
ways. Advertising has many positive impacts along with its
negative pictures.
1) Economic role of Advertising
a) Value of Products: The advertised products are not always
the best products in the market. There are some
unadvertised products also present which are good enough.
But advertising helps increase value for the products by
showing the positive image of the product which in turn
helps convincing customers to buy it. Advertising educates
consumers about the uses of the products hence increasing
its value in minds of the consumers. For e.g. mobile phones
were first considered as necessity but nowadays the cell
phones come with number of features which makes them
mode of convenience for consumers.
b) Effect on Prices: Some advertised products do cost more
than unadvertised products but the vice versa is also true.
But if there is more competition in the market for those
Advertising & Sales Promotion 60
 School of Distance Education

products, the prices have to come down, for e.g., canned

juices from various brands. Thus some professional like
chartered accountants and doctors are not allowed to
advertise. But some products do not advertise much, and
they don’t need much of it and even their prices are high but
they are still the leaders in market as they have their brand
name. e.g., Porsche cars.
c) Effect on consumer demand and choices: Even if the
product is heavily advertised, it does not mean that the
demand or say consumption rates will also increase. The
product has to be different with better quality, and more
variety than others. For E.g., Kellogg’s cornflakes have
variety of flavours with different ranges to offer for
different age groups and now also for people who want to
loose weight thus giving consumers different choices to
select from.
d) Effect on business cycle: Advertising no doubt helps in
employing more number of people. It increases the pay rolls
of people working in this field. It helps collecting more
revenues for sellers which they use for betterment of
product and services. But there are some bad effects of
advertisements on business cycle also. Sometimes,
consumer may find the foreign product better than going for
the national brand. This will definitely effect the production
which may in turn affect the GDP of the country.
The economic aspects are supported by the Abundance
Principle which says producing more products and services
than the consumption rate which helps firstly keeping
consumers informed about the options they have and
secondly helps sellers for playing in healthy and
competitive atmosphere with their self interest.
Advertising & Sales Promotion 61
 School of Distance Education

2) Social role of Advertising:

There are some positive and some negative aspects of
advertising on the social ground. They are as follows.
a) Deception in Advertising: The relation between the
buyers and sellers is maintained if the buyers are satisfied
with what they saw in advertise and what they got after
buying that product. If seller shows a false or deceptive
image and an exaggerated image of the product in the
advertisement, then the relation between the seller and
buyers can’t be healthy. These problems can be overcome
if the seller keep their ads clean and displays right image
of the product.
b) The Subliminal Advertising: Capturing the Minds of the
consumers is the main intention of these ads. The ads are
made in such a way that the consumers don’t even realizes
that the ad has made an impact on their minds and this
results in buying the product which they don’t even need.
But “All ads don’t impress all consumers at all times”,
because majority of consumers buy products on basis of
the price and needs.
c) Effect on Our Value System: The advertisers use puffing
tactics, endorsements from celebrities, and play
emotionally, which makes ads so powerful that the
consumers like helpless preys buy those products. These
ads make poor people buy products which they can’t
afford, people picking up bad habits like smoking and
drinking, and buy products just because their favourite
actor endorsed that product. This affects in increased the
cost of whole society and loss of values of our own selves.

Advertising & Sales Promotion 62

 School of Distance Education

d) Offensiveness: Some ads are so offensive that they are not

acceptable by the buyers. For example, the ads of denim
jeans showed girls wearing very less clothes and making a
sex appeal. These kinds of ads are irrelevant to the actual
product. Btu then there is some ads which are educative
also and now accepted by people. Earlier ads giving
information about birth control pills was considered
offensive but now the same ads are considered educative
and important.
But at the last, there are some great positive
aspects which help

 Development of society and growth of technologies

 Employment

 Gives choices to buyers with self interest

 Welcomes healthy competition

 Improving standard of living.

 Give information on social, economic and health issues.

3) Ethics in Advertising:
Ethics means a set of moral principles which govern a
person’s behaviour or how the activity is conducted. And
advertising means a mode of communication between a
seller and a buyer. Thus ethics in advertising means a set
of well defined principles which govern the ways of
communication taking place between the seller and the
buyer. Ethics is the most important feature of the
advertising industry. Though there are many benefits of

Advertising & Sales Promotion 63

 School of Distance Education

advertising but then there are some points which don’t

match the ethical norms of advertising.
a) An ethical ad is the one which doesn’t lie, doesn’t
make fake or false claims and is in the limit of
decency: Nowadays, ads are more exaggerated and a
lot of puffing is used. It seems like the advertisers lack
knowledge of ethical norms and principles. They just
don’t understand and are unable to decide what is
correct and what is wrong.
b) Ethics in Advertising is directly related to the
purpose of advertising and the nature of
advertising: Sometimes exaggerating the ad becomes
necessary to prove the benefit of the product. For e.g.
a sanitary napkin ad which shows that when the
napkin was dropped in a river by some girls, the
napkin soaked whole water of the river. Thus, the
purpose of advertising was only to inform women
about the product quality. Obviously, every woman
knows that this cannot practically happen but the ad
was accepted. This doesn’t show that the ad was
unethical.
c) Ethics also depends on what we believe: If the
advertisers make the ads on the belief that the
customers will understand, persuade them to think,
and then act on their ads, then this will lead to positive
results and the ad may not be called unethical. But at
the same time, if advertisers believe that they can fool
their customers by showing any impractical things like
just clicking fingers will make your home or office
fully furnished or just buying a lottery ticket will make

Advertising & Sales Promotion 64

 School of Distance Education

you a millionaire, then this is not going to work out

for them and will be called as unethical.
Recently, the Vetican issued an article which says ads should
follow three moral principles –
1) Truthfulness
2) Social Responsibility and
3) Upholding Human Dignity
Generally, big companies never lie as they have to prove their
points to various ad regulating bodies. Truth is always said but
not completely. Sometimes it’s better not to reveal the whole truth
in the ad but at times truth has to be shown for betterment.
a) Pharmaceutical Advertising - they help creating
awareness, but one catchy point here is that the advertisers
show what the medicine can cure but never talk about the
side effects of that same thing or the risks involved in
intake of it.
b) Children - children are the major sellers of the ads and
the product. They have the power to convince the buyers.
But when advertisers are using children in their ad, they
should remember not to show them alone doing work on
their own like brushing teeth, playing with toys, or infants
holding their own milk bottles as everyone knows that no
one will leave their kids unattended while doing all these
activities. So showing parents also involved in all
activities or things being advertised will be more logical.
c) Alcohol - till today, there hasn’t come any liquor ad which
shows anyone drinking the original liquor. They use

Advertising & Sales Promotion 65

 School of Distance Education

mineral water and sodas in their advertisements with their

brand name. These types of ads are called surrogate ads.
These type of ads are totally unethical when liquor ads are
totally banned. Even if there are no advertisements for
alcohol, people will continue drinking.
d) Cigarettes and Tobacco - these products should be never
advertised as consumption of these things is directly and
badly responsible for cancer and other severe health
issues. These as are already banned in countries like India,
Norway, Thailand, Finland and Singapore.
e) Ads for social causes - these types of ads are ethical and
are accepted by the people. But ads like condoms and
contraceptive pills should be limited, as these are
sometimes unethical, and are more likely to loose morality
and decency at places where there is no educational
knowledge about all these products.
Looking at all these above mentioned points, advertisers should
start taking responsibility of self regulating their ads by:

 Design self regulatory codes in their companies including

ethical norms, truth, decency, and legal points

 Keep tracking the activities and remove ads which don’t

fulfill the codes.

 Inform the consumers about the self regulatory codes of

the company

 Pay attention on the complaints coming from consumers

about the product ads.

Advertising & Sales Promotion 66

 School of Distance Education

 Maintain transparency throughout the company and

system.
When all the above points are implemented, they will result in:

 making the company answerable for all its activities

 will reduce the chances of getting pointed out by the

critics or any regulatory body.

 will help gain confidence of the customers, make them

trust the company and their products.

Law Aspects of Advertising

 Because this is a communication industry, the First

Amendment of the U.S. Constitution limits government’s
role in regulating advertising. There are, however,
regulatory standards imposed by government to ensure
fair competition and protect consumers from deception.

 The Federal Trade Commission (FTC) is the primary

federal agency governing the advertising industry. The
FTC is focused on eliminating advertising deception. The
Federal Communication Commission (FCC), too, is
involved through its oversight of broadcast media.

 In its role, the FCC maintains a certain level of decency

and decorum, having the authority to fine broadcasters for
violating mandated standards. The Food and Drug
Administration (FDA) also plays a role, monitoring
claims regarding food and drugs.

 In addition, industry has created a major self-regulatory

mechanism designed to supplement government

Advertising & Sales Promotion 67

 School of Distance Education

regulation. The National Advertising Review Council

(NARC) accepts and reviews consumer complaints about
advertising.

 It has created a process for charging advertisers with

violating accepted standards, judging their compliance,
and enforcing subsequent corrective actions. Regulation
and self-regulation are no less needed for advertising than
for any other industry of its size and complexity.

 Indeed, it is complex. There are many different parts that

must work together to make advertising.

Advertising & Sales Promotion 68

 School of Distance Education

Module III
Advertisement Copy & Media
Advertisement Copy
Meaning
A “Copy” means a written matter in any advertisement. It may
consist only one word or many words. A copy consists of
headlines, subheads, captions etc. The copy supports the
illustration and contains description of the products merits,
demerits, uses, services etc. A copy is the heart of an
advertisement. It shoulders the responsibility for influencing the
buyers.

Characteristics of a Good Copy:

1) Brevity: A copy should be brief because readers have no
time to go through the lengthy text and they must be able to,
read within a short time. So a copy should use simple
language and small and easy words. The message should be
concise and precise.
2) Clarity: A copy should be self-explanatory. The message to
be delivered must be clear at first reading.
3) Aptness: The message should be pointed towards the
prospects. It must have a tone agreeable to the respects. The
viewers’ attention should be led to the product and the
message should be coached in such a way that it would create
interest in the readers to read the message.

Advertising & Sales Promotion 69

 School of Distance Education

4) Interesting: A copy should be interesting-provoking. It must

stimulate the readers’ curiosity to read the message. The
reader should himself decide to read, the message in detail.
5) Sincerity: Sincerity can be achieved by using acts and
quoting figures.
6) Vague generalizations or stray opinions must be avoided.
Sincerity can be achieved if the copy contains one or two
illustrations so that the message will have an instantaneous
appeal.
7) Personal: The message should be directly addressed to the
readers so that every reader forms the opinion that it is
directed to him only. This kind of direct personal attitude
catches and retains the reader’s or listener’s attention.
8) Convincing: A copy provides information with a view to
create in the mind of a reader first a desire and then a
conviction to possess the product. This means that the copy
should be persuasive enough to lead the readers towards
buying the product.

Basis of Copywriting
Contents of an ad-copy
 Headline
 gains ate/ntion
 communicates the selling point Subhead
 includes important information not included in the
headline

Advertising & Sales Promotion 70

 School of Distance Education

 stimulates more reading

 Call to action or close
 Logo and/or Tagline
Types of headlines
 News
 Self-interest or target specific
 Claim
 Directive or command
 Offer advice
 Horn blowing
 Slogan, label, or logo
 Curiosity or provocative
Tips on copywriting

 Length determined by familiarity

 Brief

 Memorable

 Avoid generalities

 Use facts, not claims

 Copy must flow from the headline

Advertising & Sales Promotion 71

 School of Distance Education

 Focus on a single benefit

 Use present tense

 Active verbs

 Familiar words or phrases

 Involve the reader

 Provide support

 Avoid pufferyor cliches

Choose an Approach

 How do advertisers decide?

 inform, persuade or entertain

 Elements to Consider:

 Tone

 Style

 Appeal
Copywriting Formats

 Dialogue delivers selling points through characters

 Straight-line = straightforward why

 Testimonial = person has a one-sided conversation

 Narrative = series of statements-dull

Advertising & Sales Promotion 72

 School of Distance Education

 Direct response = urgency

Elements of Copy
A copy normally includes the following elements or parts:
1. Main Headline: A headline in advertising grabs the attention
much like a newspaper's headline. An advertising headline is
designed to be the first copy the potential customer reads.
Bold, large font size and various colours are some of the
methods used to make the headline stand out from copy. A
headline must be written well in order to be effective and
draw the reader into the ad Headlines is the starting or the top
line of an advertisement, usually printed in bold and of larger
type size. The prime function of the headline is to gain
immediate attention.
2. Sub-Headlines: At times, some ads have more than one
headline. Of these, one is usually the main headline, and the
others are sub-headlines. There may be overlines - that
precede the main headline and there can underlines - that
follow the main headline. The sub headlines are used to
support or to complete the meaning of the main headline.
3. Body Copy: It refers to the text of the advertising message.
Favourable information about the product and its features is
provided in the copy text. It is through effective copy writing
the audience can be converted into prospects and the
prospects into customers.
4. Captions: Captions do form part of copy text. Captions are
small sentences that seem to come out the mouth of the
people shown in the ads. Comic strip type of copy make use
of captions. For example, you must have come across such
captions in the print ads of Tortoise Mosquito Coil.
Advertising & Sales Promotion 73
 School of Distance Education

5. Slogans: Advertising slogans are short, often memorable

phrases used in advertising campaigns. They are claimed to
be the most effective means of drawing attention to one or
more aspects of a product. Most ads do make use of slogan.
It is a small catchy phrase used to sum up the advertising
message. Ideally the slogan should be short, preferably 3 to
6 words. Many a times the slogan says it all. For instance,
“The best tobacco money can buy” Rothmans.
6. Logo: Logos or signature cuts are special designs of the
advertiser or its products which are used to facilitate
identification. There is no rule as to where a logo should be
placed. However, in most of the cases, the logo is placed at
bottom right.

Types of Advertisement Copy

1. Scientific Copy: A Scientific copy is prepared for technical
products describing about the features, advantages, uses,
contents and all the technical details about it. It is prepared
for machineries, computers etc. Scientific copy is directed,
towards well versed customers who know about the product.
For instance, a medicine may be advertised to appeal to
doctors. Thus, it explains the ordinary people in general and
professional men in particular about the technicalities of the
product.
2. Descriptive Copy: It is a non-technical copy presented in
such a manner that any layman can easily understand. It does
not require a professional expert to the copy. It is just an
ordinary, announcement of a new items.
3. Narrative Copy: It is in the form of a fictitious story which
narrates the uses advantages, after effect etc., of the product.
The story narrated is humorous to make it interesting.
Advertising & Sales Promotion 74
 School of Distance Education

4. Topical Copy: This copy establish a connection between the

product and a particular happening e.g., A watch company
may advertise that those who were successful in climbing
Mount Everest had with them the watches of the company
thus proving their excellent quality.
5. Personality Copy: This copy takes advantages of the
opinion of an important personality. The statements are made
by leading personalities like sportsman, film actors,
politicians etc. Their statements act as certificates about the
superior quality to increase the sales.
6. Colloquial Copy: In this type, informal language may be
used to convey the message. The terms which are used in
daily conversation are in the copy.
7. Reasoning Copy: It is one which reasons to the customer
as to why he should buy a product. This copy explains to
the customer in detail all the particular product must be
purchased.
8. Questioning Copy: In this type, the text asks one or more
questions to readers not for any answer but only for the sake
of response to it. For e.g. Do you want a quiet holiday in
Summer? (Then stay at Hotel ABC at the XYZ hill station).
9. Prestige Copy: In this type, the position and prestige of the
customer is emphasized. It creates a favourable atmosphere
by changing the position of the customer for the sale of
product. Normally luxury items are advertised by such
copies.

Advertising & Sales Promotion 75

 School of Distance Education

Copywriting
Copywriting is the skill of choosing the right words and technique
of arranging them smartly to promote business, product, service,
idea, or a person. The selection of words and its presentation
largely depends upon the media through which it is planned to
convey. For example, depending on whether it is a newspaper,
magazine, hoarding, radio, television, or internet, the script will
vary accordingly.
However, whatever is the type of media, the purpose of
copywriting is the same i.e. promotion. Therefore, it should be
persuasive enough to be instantly attention grabbing.
Elements of Copywriting
Copywriting has some essential elements required to develop a
convincing ad. Following are the significant elements –
a) Heading − Headline gives the first impression and lasts
on readers’ mind, therefore, it should be eye-catching.
Heading should tell – what it is all about your ad in a very
few words, ranging from 3 to 30 words.
b) Body copy − Write body copy in such a way that it seems
as the continuity of the heading. Provide details of all the
features and benefits that you are claiming for. The
language should be promising and trustworthy.
c) Slogans − Think of "The ultimate driving machine"
(BMW); “Just do it” (Nike); "Because I'm worth it"
(L'Oréal), what comes to your mind? The moment, you
hear the slogans, you link it with the respective brand not
only because you have heard it many times, but rather it
works. A well-written and effective slogan is a

Advertising & Sales Promotion 76

 School of Distance Education

trustworthy brand representative. However, your slogan

should be small and crispy giving meaning to your brand.
d) Taglines − Taglines are usually used for literary products
to reinforce and strengthen the audience's memory of a
literary product. For example, “she went in search of
answers, and discovered a love she never expected,’ Book
Name “Faithful” and Writer - Janet Fox. Thus, tagline
tells the gist of the products for marketing purpose. Like,
a slogan, it should be small and eye-catching.
e) Jingle Lyrics − More often accompanied with
background music, jingle lyric is a short slogan, tune, or
verse written to be easily remembered (especially used in
advertising). For example, Fanta: "Wanna Fanta, Don’t
You Wanna?" It should be small, crisp, and rhythmic (like
a song) so that it registers with people at once and they
remember it.
f) Scripts (for audio and video ad) − Scripts are the
descriptions of an ad that narrates the dialogues, actions,
expression, and movements of characters. Since, script is
a complete guidelines of an ad; therefore, it should be
written meaningfully, orderly, and nicely.
g) Others − (White Paper, Press Release, & other written
material such as emails, articles, and blog (for the
internet)): These are all promotional write-ups written
purposefully to promote a particular product/service. So,
while writing white paper, press release, articles, blog, or
even an email you need to focus or emphasize ONLY on
one product that you want to promote. You need to
describe all features and offers of the respective product
in simple and plain language.

Advertising & Sales Promotion 77

 School of Distance Education

Copywriting Techniques
Following are the techniques of persuasive copywriting –

 Use Action Words − Such as watch, look, ask, get, etc.

 Use of Buzzwords − Normally, buzzwords are eye-

catching such as now, today, etc.

 Use Exciting or Emotive words − Such as amazing,

wonderful, beautiful, etc.

 Use Alliteration − Use meaningful words of similar

sound. For example, Don’t be vague, ask for Haig.

 Use Colloquial words − Colloquialisms in copywriting is

pretty popular and effective. For example, ‘Pick ‘n
Choose.’

 Use Punctuation − Proper use of punctuations and

grammar is an important aspect so that you can pass the
right message.
Advertisement Layout
Layout is the logical arrangement of components of an
advertisement in the copy. It refers to the overall structure, the
position assigned to the various elements of the copy and
illustrations. It is deciding on the placement of headlines, copy,
illustrations, marketer’s name, logo and the amount of free space
in an advertisement copy. Thus, the physical arrangement of all
the elements of advertisement is called layout. It is concerned
with placing all the elements of the advertisement more
attractively within the allotted space and time. The pattern of
layout varies according to the medium to be used.

Advertising & Sales Promotion 78

 School of Distance Education

In other words, layout is the visual plan for arranging the elements
of an advertising message in printed form. Advertising layout
deals with proper and attractive physical arrangement for the
presentation of the advertising message or the sales
communication.

Principles of Good Layout

1. Focus on Dominant Element
2. Unity of All AD Parts
3. Good use of Contrast
4. Right Balance of Elements
5. Maintain Proportion of Space
6. Follow the Eye Movement
7. Simple and Uncomplicated Layout
8. Ease of Readability
9. Use of Whitespace
10. Clarity of AD Message
11. Good Ad Background or Atmosphere
12. Long Lasting First Impression

Media
The term ‘media’ means “channels of communication”.
Advertising media refers to the various media channels through
which advertising is done. Advertising media is used for
showcasing promotional content which is communicated in
various forms such as text, speech, images, videos using TV,
radio, online, outdoor etc. Basically these are channels through
which companies can advertise their products and services to
reach to customers.
Traditional media has been used in the advertising world for
years. These include newspaper, magazines, radio, television,
Advertising & Sales Promotion 79
 School of Distance Education

outdoor, cinema advertising, and direct mail and so on.

Traditional media are the most common form utilized by
advertisers since decades. Over the course of last years, more
businesses are making use of new age media to reach target
audience. The new age media is said to be the future of
advertising, social media advertising, mobile advertising and so
on. Each of these are means in which businesses have the
capability to reach consumers and other businesses with ease.
Factors to Be Considered While Selecting Media/ Media
Vehicles
No advertiser can rely only on one medium to reach his target
audience. Hence, it is advisable to choose a media mix for
advertising products. A combination of media types is known as
media mix. The advertiser has to consider the following factors
while selecting a suitable media mix:
1. Nature of the product: The type of the product affects
the choice of media. Mass media are used for advertising
consumer products; while trade magazines can be
effectively used to advertise industrial products. Products
of daily use can be effectively advertised through
newspapers or radio; on the other hand, products having
niche markets can be effectively advertised in magazines
of special interest.
2. Advertising Budget: It is one of the most important
factors to be taken into account while making the choice
of the media. In case of limited funds, use of expensive
media like television and radio cannot be made. On the
other hand when large funds are available, the advertiser
can not only make use of a variety of media but also
expensive ones.

Advertising & Sales Promotion 80

 School of Distance Education

3. Competitor’s Strategy: An advertiser’s media decisions

are influenced by the competitor’s strategy. Since the
advertiser tries to reach the same audience as his
competitors, he may use the same media mix used by the
competitors.
4. Target Audience: The advertiser has to consider the type
of consumers to whom the message has to be directed. The
media selected must reach the desired group of people.
For example, cosmetics can be effectively advertised
through women magazines, If the advertiser wants to
reach men who are professionals, newspapers such as
Economic Times or The Financial Express will be
appropriate choice.
5. Advertising Objectives: The advertising objectives
affect the choice of the media. For example, if the
objective is to create awareness about the brand then the
advertiser is likely to go for more media options.
6. Availability of Media Space & Time: Media space and
time have to be booked in advance especially in case of
popular media slots. This is due to tremendous increase in
competitive activity. When an advertisement has to be
placed immediately then the advertiser has little choice
but to use the available space and time.
7. Media Restrictions: At times, certain restrictions are
placed either by the government or by the media itself. For
example, in India the government does not permit
advertisements of cigarettes and alcoholic drinks and
Doordarshan. In such a case the advertiser has to select
alternative media for advertising his products.

Advertising & Sales Promotion 81

 School of Distance Education

8. Language: In India, this an important consideration.

Depend upon the particular linguistic group to be reached,
a particular language newspaper or television and radio
programme must be used. For example, if the product has
to be advertised in Maharashtra, use of Marathi
newspapers can be made. However, for a national market,
use of Hindi or English language would be suitable.
9. Prestige of the Media: Prestige of the advertising
medium may be transferred to the advertised product. For
example, when advertising appears in the Times of India,
the image of the newspaper may be transferred to the
advertised product. This enhances the status of the
advertiser and adds to his goodwill. Sponsoring of
prestigious programmes such as World Cup matches,
Olympics, the Oscar Awards etc. are looked upon as
prestigious advertising opportunities.
10. Media Flexibility: Flexibility refers to the ability of the
media to adapt to changing needs of the advertisers.
Newspaper advertising enjoys flexibility as the
advertisements can be changed or withdrawn by giving a
short notice to the publisher. On the other hand,
Doordarshan Offers little flexibility as it involves a
lengthy procedure of getting the story board the TV
commercial approved.
Types of Media

(1) Print Media

Print media refers to paper publications circulated in the form of
physical editions of books, magazines, journals and newsletters.
Print media advertising is a form of advertising that physically

Advertising & Sales Promotion 82

 School of Distance Education

printed media, such as magazines and newspapers to reach

consumers, business customers and prospects.
(a) Newspaper Advertising:- Newspapers have always been
one the most important advertising media. These are the
earliest forms of press advertising. Even though we are living
in the technologically advanced time, the daily newspapers
are still very effective and powerful print medium of
advertising. Advertisers spend a sizable share of the total
advertising budget in newspapers. In our country,
newspapers virtually reach most of the homes in the cities
and many members of the family read them. There are
national, regional and local newspapers cover short stories,
editorial contents and of course a number of advertisements.
(b) Magazine Advertising: Magazine advertising is another
form of press publicity. Magazines are periodic publications.
They have a longer life. Magazines may be weekly, quarterly
fortnightly or monthly publications. Magazines are of
different types. There are, magazines for general public or
for special class. Some of these include:
i) General consumer magazines such as Readers
Digest, The Illustrated weekly, India Today etc.
ii) Women magazines such as femina, women’s Era,
Eves Weekly etc.
iii) Film magazines such as stardust, star and style etc.
iv) Sports Magazines such as Sports Star, Sports Week
etc.
v) Business magazines such as Business Week,
Business India, Business World etc.

Advertising & Sales Promotion 83

 School of Distance Education

vi) Other specialized magazines such as children’s

magazines, computer magazines, fashion magazines,
investment magazines, automobile magazines etc.
vii) There are also some magazines devoted to religion,
education, health, medicine, art, agriculture and so on.
The use of colour, glazed and art paper, off-set printing
etc. has improved the quality of magazines. This makes
magazine advertising attractive.

(2) Radio Advertising

Radio broadcasts started in India in 1927 with two privately
owned transmitters at Bombay and Calcutta. In 1930, the
government took them over and started operating under the name
of Indian Broadcasting Service. Thereafter, in 1936 the name was
changed to All Indian Radio (AIR). Commercial broadcasting on
the radio was introduced in May 1970 and commercials were
introduced from 1st April ‘1982’. As an advertising medium,
radio witnessed a decline after different. Radio has once again
regained popularity especially with privatization (introduction to
FM channels).
Radio advertising takes the form of spot announcements and
sponsored programmes. Spot announcements are short-
advertisements of a duration for 15seconds to one minute. They
are repeated time and again. They are introduced in the interval
between two songs or programmes. Sponsored programmers are
interviews, plays stories, songs, and listener’s request and so on.
Advertisements are inserted and repeated during the programmes.
Commercial advertising on radio gives substantial revenue to the
government.

Advertising & Sales Promotion 84

 School of Distance Education

(3) Television Advertising

Television is a fast growing medium of mass communication in
India. It is being used extensively for advertising for advertising.
It is the most effective medium of advertising due to both audio
and visual impact. It is extremely popular with the advertisers and
viewers. Due to its wide coverage, it has low cost per reach. In
India, Doordarshan started its transmission of 3 days in a week as
an experimental service in dece 1959 was transmitted on 1 st
January 1976. Doordarshan, the national channel of India reaches
over 90% of the population. Television in India is are more than
1000 television channels of India. India also has a strong network
of cable TV. Cable TV advertising allows advertisers to reach out
to local audience.
Viewership data for TV in India is reported by Broadcast
Audience Research Council (BARC). (BARC) is a consortium of
broadcasters, advertisers, and advertising and media agencies, via
their apex bodies.
TV advertising takes the form of short commercial as well as
sponsored programme. It is an expensive means of mass
communication. Hence, the only big advertisers with a sound
financial position can make use of this medium.

(4) Out of Home / Outdoor Advertising

Outdoor advertising is also known as out of home advertising.
Outdoor advertisement are the advertisements are the
advertisements which attract the customers when they are out of
their homes. Outdoor media is the oldest means of
communication. Advertising began around 3200 B.C. When
Egyptians stencilled inscriptions of the names of the kings on the
temples being built. In fact the history of outdoor media is as old

Advertising & Sales Promotion 85

 School of Distance Education

as the history of advertising itself. Initially, outdoor media was

used in the semi-urban and rural areas where the reach of the other
media was negligible. However, today no advertisement
campaign is complete without the support of outdoor media, even
in major towns and cities.
Outdoor advertising is also called mural advertising. It includes
posters, painted displays, neon signs, kiosks, electric displays,
vehicular ads and so on.

(5) Cinema/Film Advertising

Cinema advertising refers to advertising at cinema theatres. It
takes the form of slides or short film of products that are screened
at cinema houses. These are screened before the commencement
of the movie shows or during the period of intermission. With a
spurge in the number of multiplexes and the arrival of state-of-
the-art movie screening technology, advertising in cinema houses
has become an attractive option for advertisers. From almost
nothing, national brands are now spending upto one per cent of
their advertising budgets on cinema advertising.
Advertisers often make film advertisements in regional
languages. It is best suited for local advertising.
Internet Advertising
Internet advertising can be defined as any form of communication
between a consumer and a publisher, that incorporates
advertisements by emails, search engine results pages, banners
etc. The main goal of the Internet advertising is increasing sales
that can be achieved by attracting more consumers with an access
to the Internet. Another reason of using such advertising is to raise
brand awareness by putting out information on exclusive features
the brand possesses
Advertising & Sales Promotion 86
 School of Distance Education

As any kind of advertising the Internet ads have the following

goals:
(a) building brand awareness that plays a huge role in
marketing. Putting out some exclusive information the
brand possesses which can make customers to buy
products;
(b) increasing sales by presenting products on brand websites.
Nowadays it is an extremely easy way for purchasing
goods just by clicking on it;
(c) creating demand for products and then satisfying it.
Types of Online Advertising and Promotion
The Internet advertising is a technique that generates profits of
producers promoting their products. Main types of the online
advertising and promotion are the following.
1) Pay Per Click Advertising (PPC): This type of
advertising gives information about the number of users
who ran through the publisher ads and means the necessity
to pays only after clicking on it. Google Ad Words is
maybe the most widely used system among marketers
which is based on this method.
2) Social media advertising is the next kind of online
advertising that is commonly used. This can be widely
seen at such famous social networks as Twitter, Facebook,
Instagram, You Tube, Whatsapp, etc.,
3) Mobile advertising is a way of advertising products with
the help of mobile devices. This method can be quite

Advertising & Sales Promotion 87

 School of Distance Education

effective for the reason of closeness to the consumer

through the day that can reduce the ads delivery time.
4) Display advertising is a form of the Internet advertising
which consists of the following techniques:

 banner ads – a graphic image on a website with a catchy

and concise information. Banners may include some
flash headers or videos in order to attract consumers;

 text ads;

 pop-ups and pop-unders are ads that appear on the top

or under the current web-page that a user views;

 videos, flash etc.

5) E-mail advertising is a form of online advertising which
involves receiving ads via electronic letters. Nowadays
companies are likely to send mail with information on
particular upcoming sales, new collections or events. The
objectives of e-mail advertising are similar to other
already mentioned types of advertising, among which are:
(a) encouraging customer loyalty and respectfulness;
(b) inducing clients to purchase goods by sending info
on alluring sales etc.
6) Landing page is a distinct page on owner’s website that
is built for one particular conversion objective. The most
common landing page is a Google Ad words landing page.
This is a landing page that people “land on” after they
click on a Google Search Ad. In the light of the Lean
theory, landing page could be seen as a unique instrument

Advertising & Sales Promotion 88

 School of Distance Education

to advertise products, to increase consumer stream in

online sales and decrease waste. By gathering clicks on a
simply built landing page it’s possible to get information
about consumers and their needs towards products.
Generally speaking, there are few types of landing pages:
(a) Click-through Page – one of the simplest type of
landing pages and main purpose of it is to “warm up”
visitors towards a product and inform them about offer
while getting them to “click-through”;
(b) Lead Capture Page is more than just a click-through
landing page as its intent is to gather personal data
(name, email address, etc.) of visitors by asking them
to fill the client forms. It gives a possibility to built
client databases;
(c) Pitch Page helps to attract customers to a product by
advertising the product and its features. The product
pitch page showcases product and keeps the product
in the center of attention;
(d) Sales Page is a standalone page used to sell a products
or services. So it’s a well developed page with high
quality of visual presentation, mentioning of sale
politics, terms, etc. The purpose of a sales page is to
give the visitors all the information they need in order
to make a purchase through the page.

Mobile Advertising
The term mobile advertising refers to any form of advertising that
appears on mobile devices such as smartphones and tablet
computers. Companies advertise on these devices through text
ads via SMS or through banner advertisements that appear
Advertising & Sales Promotion 89
 School of Distance Education

embedded on a mobile website. They may also be found through

downloaded apps including mobile games.

Types of Mobile Advertising

Mobile advertising can take a number of different forms. These
include:
(1) Push notifications: These are pop-ups that appear on a
mobile device. These are delivered to consumers at any
time. This means users don't actually have to be on an app
in order to get a notification.
(2) Image text and banner ads: Users who click on their
ads are redirected to the advertiser's page by opening it
up on a browser.
(3) Click-to-download ads: When a consumer clicks on
these ads, they will route them to the Google App or
Apple App store. The destination depends on the
consumer's operating system and device.
(4) Click-to-call ads: Advertisers allow users to click on
their ads in order to call them directly with their
smartphones.
(5) Click-to-message ads: A consumer who clicks on this
type of ad is directed to contact the advertiser directly via
SMS.
(6) Interstitial ads: These are full-screen videos or graphics
that are usually placed at app transition points. Have you
ever observed an image or short video coming up when
you watch videos or while playing games. These are
interstitial mobile ads.

Advertising & Sales Promotion 90

 School of Distance Education

(7) Video ads: Video advertising is a very powerful tool for

any company that helps users when they are in the
decision-making process. Interactive mobile video
advertising delivers a complete visual experience,
allowing the user to feel closer to the product or service in
question.
(8) Native ads: Native ads are similar to banner ads but are
displayed within the app’s natural environment so that
they blend in with the flow and become less likely to be
treated as advertisements.

Benefits of Mobile Advertising

1) Large Audience: Research suggests that as much as 79%
of people always have their smartphones with them.
Further, it is no surprise that most of us are always online
via mobile devices, be it social media, online shopping,
emails or something else. This makes for a huge potential
customer base that brands can target.
2) Low Cost: Mobile advertising costs way lower than
conventional channels such as TV or print media. There
are a wide variety of types of mobile media that you can
use to affordably connect with your brand.
3) Easy Tracking: With the advancement in
technology, tracking the performance of your mobile
advertising campaign is now very easy. It offers quick and
complete analytics of data metrics such as impressions,
click-through rate, likes, shares, audience demographics
and much more.
4) Quick Response: Since the target audience is almost
always near to the devices, or watching the screens,
Advertising & Sales Promotion 91
 School of Distance Education

response time is very quick. Either the ads will be acted

upon or rejected in a miniscule time frame.
5) Geo Targeting: Once you have analyzed the received
data and user demographics, it becomes very easy to
selectively target that segment of your audience which is
more likely to respond or engage in a particular
advertisement.
6) Higher Conversion Rates: Thanks to the advanced
targeting options, consumers receive ads that are of some
benefit to them, hence, they are also more likely to
respond to them and complete the call to action.
Social Media
The term social media refers to a computer-based technology that
facilitates the sharing of ideas, thoughts, and information through
virtual networks and communities. Social media is internet-
based and gives users quick electronic communication of
content, such as personal information, documents, videos, and
photos. Users engage with social media via a computer, tablet, or
smartphone via web-based software or applications. While social
media is ubiquitous in America and Europe, Asian countries like
Indonesia lead the list of social media usage. More than 4.5
billion people use social media, as of October 2021.
Facebook is the largest social media platform in the world, with
a clear advantage over other social media, though it has similar
audiences to others like Twitter and Instagram. The figures for
the most popular social media websites as of January 2021 are as
follows:

Advertising & Sales Promotion 92

 School of Distance Education

1. Facebook (2.74 billion users)

2. YouTube (2.29 billion users)
3. WhatsApp (2 billion users)
4. Facebook Messenger (1.3 billion users)
5. Instagram (1.22 billion users)
6. Whatsapp (1.21 billion users)
7. TikTok (689 million users)
8. QQ (617 million users)
9. Douyin (600 million users)
10. Sino Weibo (511 million users)

Impact of Social Media in Advertising

Promoting social media posts can help your business grow online
presence and get more customers. Social media promotion is one
of the most widely-utilized, flexible, and profitable forms of
online advertising. Nearly 51% of the world’s population is on
social platforms, and major networks continue growing
exponentially. Social media for businesses opens a wide range of
brand-building opportunities. It’s a great resource to utilize in
your marketing mix, however, marketers need to have a clear
understanding of social media’s advantages and limitations.

Pros
(1) Cost-Effectiveness: Social media advertising can be
fulfilled with any budget, as the cost is determined by clicks
and impressions.
Advertising & Sales Promotion 93
 School of Distance Education

(2) Familiarity: The social media platform that you should

advertise on should be the one that is most popular among
your target audience. It’s important to spend time on that
platform to fully understand and become familiar with it.
Advertising on the platform that you and your audience are
most familiar with will give you an advantage.
(3) Supporting Content: You can reach or expand your
audience through a selected type of content, such as photos,
videos, and website links. All kinds of multimedia will help
make your messages more interesting and impactful.
(4) Targeting: With plenty of demographic and psychographic
targeting options available, you’re in complete control of
selecting a niche segment who sees your ad. In addition to
age, gender, relationship to your business, even political
affiliation, you can target interests, hobbies, personality
types, homeowner status, and more. You can also use tools
like hashtags and unique landing pages to make your ad more
relevant which could lead to more profit.
(5) Build Brand Loyalty: Social media gives a business an
opportunity to be more personal with their
consumers. Instead of pitching a product or service, social
media allows marketers to communicate with consumers and
foster long-term brand loyalty. It was found that 71% of
customers that had positive experiences with a brand via
social media recommended that company to others.
(6) Easy Metrics: It’s extremely easy to track engagement and
reach on social media. Throughout your business platforms,
you can see trends in likes, comments, Tweets, retweets,
downloads, shares, and posts.

Advertising & Sales Promotion 94

 School of Distance Education

Cons
(1) High Competition: Social media is crowded. According to
Adweek, over 88% of companies have a social media
presence. Thus, in order to compete effectively, you either
should invest in quality content or hire a social media
manager.
(2) Education: There are no shortcuts to success, and being
an effective social media manager requires effort and a lot of
learning. Even if you are savvy with social media, there is
still a lot to know about paid advertising on social media—
many details which, if you get wrong, can result in losing
your audience or ruining your reputation.
(3) Constant Monitoring: You can’t run a social media
campaign without constantly keeping an eye on it. To
successfully engage with your clients, answer their feedback,
and consistently post the type of digital content that will get
you noticed, you will have to designate a significant portion
of time each week to social media ad upkeep.

Advertising & Sales Promotion 95

 School of Distance Education

Module IV
Sales Promotion
Introduction
Sales promotion is one of the most loosely used terms in the
marketing vocabulary. We define sales promotion as demand.
Stimulating devices designed to supplement advertising and
facilitate personal selling. In other words, sales promotion
signifies all those activities that supplement, co-ordinate and
make the efforts of personal selling and advertising more
effective. It is non recurrent in nature which means it can’t be
used continuously.

Concept of Sales Promotion

Sales promotion consists of diverse collection of incentive tools,
mostly short-term designed to stimulate quicker and / or greater
purchase of a particular product by consumers or the trade.
Whereas advertising offers a reason to buy, sales promotion
offers an incentive to buy. Sales promotion includes tools for
consumer promotion (for example samples, coupons, prizes, cash
refund, warranties, demonstrations, contest); trade promotion (for
example buying allowances, free goods, merchandise allowances,
co-operative advertising, advertising and display allowances,
dealer sales contests); and sales-force promotion (for example
bonuses, contests, sales rallies).
Sales promotion efforts are directed at final consumers and
designed to motivate, persuade and remind them of the goods and
receives that are offered. Sales persons adopt several techniques

Advertising & Sales Promotion 96

 School of Distance Education

for sales promotion. Creative sales promotion can be very

effective. It is the marketing manager’s responsibility to specify
promotion objectives and policies.

Definitions of Sales Promotion

According to American Marketing Association “ Those
marketing activities other than personal selling advertising and
publicity that stimulate consumer purchasing and dealer
effectiveness such as display shows and exhibitions,
demonstrations and various non-recurrent selling efforts not in
the ordinary routine.”
W.J. Stanton defines sales promotion as all those activities other
than advertising, personal selling, public relations and publicity
that are intended to stimulate customer demand and improve the
marketing performance of sellers.

Objectives of Sales Promotion

The basic objectives of sales promotion are:
1. Launch a new product: If you're going to expand and
turn your small coffee shop into a bakery, you need to
reach new market segments. You can attract new
customers by offering a free cookie with each cup of
coffee or suggest visitors set their own price once in a
while.
2. Attract new clients: This objective should be your long-
term goal since it allows your business to grow. Your
potential clients are likely your competitors' customers, so
analysing their product and benefits, you can offer
something more valuable.

Advertising & Sales Promotion 97

 School of Distance Education

3. Stay competitive: Researching and analysing your

competitors will not only help you attract new clients but
constantly improve your product and customer service.
4. Make existing customers buy more: It's always easier to
make an existing customer buy more than attract new
clients. Provide each client with a personalized approach
— it will help you build customer loyalty. As a result,
clients will promote your brand organically.
5. Sell during the off-season: Goods like swimwear, boats,
tents, air conditioners, refrigerators are definitely more
popular in summer but you should consider special
strategies to sell them throughout the year. Offer time-
limited discounts, "1+1=3" campaigns, and other
marketing tricks.
6. Run clearance campaigns: They're especially popular
before summer and winter. As dealers need to make room
for a new collection, they often run total clearance
campaigns when users can buy goods from old collections
at extremely reduced prices.

Features of a Successful Sales Promotion

 It must be cost effective, yielding maximum results.

 It should motivate the consumers to buy. It should

promote a sense of urgency in the customers.

 Sales promotion offers should match the customer

demands.

 Sales promotion should be straight, simple and customer

friendly.

Advertising & Sales Promotion 98

 School of Distance Education

 It should have high visibility in the target market.

 Sales promotion should be ‘honest’. Customers should not

feel cheated.

 Sales promotion should fulfill all legal formalities before

implementation.

 Implementation should be efficiently done.

Rationale of Sales Promotion

Rationale of sales promotion may be analysed under the
following points.

 Short-term results
Sales promotion such as coupons and trade allowances
produce quicker, more measurable sales results. However
critics of this strategy argue that these immediate benefits
come at the expense of building brand equity. They
believe that an over emphasize on sales promotion may
undermine a brand’s future.

 Competitive Pressure
If competitors offer buyers price reductions, contest or
other incentives, a firm may feel forced to retaliate with
its own sales promotions.

 Buyers’ expectations
Once they are offered purchase incentives, consumers and
channel members get used to them and soon begin
expecting them.

Advertising & Sales Promotion 99

 School of Distance Education

 Low quality of retail selling

Many retailers use inadequately trained sales clerks or
have switched to self service. 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.

Advantages of Sales Promotion

Sales promotion has a significant effect on the behaviour of
consumers and resellers. Such promotion can bring in more
profits for the manufacturer because they permit price
discrimination.
(1) Sales promotion activities generally stimulate the
purchasing activities of consumers.
(2) Sales promotion devices get direct and immediate
response as it is undertaken at the point of sale.
(3) Sales promotions can be utilized to boost sales at any
stage; new product Introduction stage, existing product
improvement stage, old product sales improvement stage
and so on.
(4) Sales promotional activities help the organizations to
increase sales in intense competitive situations.
(5) Sales promotion necessarily supplements the personal
selling and advertising activities undertaken by and
organization.
(6) The manufacturer with the help of sales promotion
activities can easily achieve a rapid turnover of stocks.

Advertising & Sales Promotion 100

 School of Distance Education

Drawbacks of Sales Promotion

There are certain limitations of sales promotion and they may also
produce negative effects. While sales promotion is a powerful and
effective method to produce immediate, short-term positive
results, it is not cure for a bad product, or bad advertising. In fact,
a promotion may speed-up the killing of a bad product. A
consumer may be motivated to try a new product because of the
incentive, but after this the product itself must take over.
(1) Decrease in brand loyalty: The major objective of many
sales promotions is to encourage brand switching. This is
especially true in case of low-involvement category products,
or where there is little or no significance differentiation
among brands and the unit value is low. Sales promotion
announced by marketers thus counter the brand-image
building efforts of competitor’s brands, for which they
develop expensive advertising campaigns. There is
agreement among most managers that sales promotion
expenditure have decreasing effect on brand-image and this
lead to decreasing brand loyalty.
(2) Increased price sensitivity: Frequently promoted brands in
a product category, especially on the basis of price, make
consumers and traders more price sensitive, not only for the
promoted brand but for the brands as well in the same product
category. Consumers wait for the promotional deals to be
announced and then purchase the product. This is true even
for the brands where brand loyalty exists.
(3) Quality image may become tarnished: If the promotions in
a product category have been rare, or the product happens to
be of high-involvement category, the promotions could have
a negative effect about its quality image. Consumers may

Advertising & Sales Promotion 101

 School of Distance Education

start suspecting that perhaps the product has not being selling
well, the quality of the product is low compared to the price,
or the product is likely to be discontinued because it has
become out dated.
(4) Merchandising support from dealers is doubtful: One of
the trade promotion tools is to offer promotional allowances
to trade people to motivate them to provide merchandising
support and to pass on some benefit to consumers. This is
generally the condition attached with such promotional
allowances. In many cases the dealers do not cooperate in
providing the merchandising support, nor do they pass on any
benefit to consumers and in this practice India is no
exception.
(5) Short-term orientation: Sales promotions are generally for
a short duration. This gives a boost to sales for a short period.
This short-term orientation may sometimes have negative
effect on long-term future of the organization. Heavy use of
sales promotion, in certain product categories, may be
responsible for causing brand quality-image dilution.

Types of Sales Promotion

Many sales promotion tools are available to accomplish these
objectives at the consumer level, and at the middle men level. For
the purpose of convenience, the types of sales promotion methods
may be grouped under three categories:
1. Types of sales promotion directed at consumers.
2. Types of sales promotion directed at dealers and
distributors.

Advertising & Sales Promotion 102

 School of Distance Education

Consumer Sales Promotion

The consumer-oriented promotion tools are aimed at increasing
the sales to existing consumers, and to attract new customers to
the firms. It is also called as pull strategy. It includes the
following:-
1) Free samples: 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
product.
2) 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. This sales promotion tool
is used by several companies for consumer durables.
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.
5) Premium offers: These can be extra quantities of the
same product at the regular price. For instance, Colgate
offered 125g in a tube for the price of 100g.
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.
Advertising & Sales Promotion 103
 School of Distance Education

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. For example,
consumer durables such as refrigerators and cars are sold
on installment basis

Consumer Promotion Tools

The main consumer promotion tools include samples, coupons,
cash refund offers, price packs, premiums, prizes, patronage
rewards, free trials, product warranties, tie-ins, and point of
purchase displays and demonstrations.
(a) Samples: Samples are offers of a free amount or trial of
a product to consumers. The sample might be delivered
door to door sent in the mail, picked up in a store, found
attached to another product or featured in an advertising
offer. Sampling is the most effective and most expensive
way to introduce a new product.
(b) Coupons: Coupons are certificates entitling the bearer to
a stated saving on the purchase of a specific product.
Coupons can be mailed, enclosed in or on other products
or inserted in magazine and newspaper advertisements.
Coupons can be effective in stimulating sales of a mature
brand and inducing early trial of a new brand.
(c) Cash Refund Offers or Rebates: These are like coupons
except that the price reduction occurs after the purchase
rather than at the retail shop. The consumer sends a
specified “proof of purchase” to the manufacturer, who in
turn „refunds‟ part of the purchase price by mail. Cash
refunds have been used for major products such as
automobiles as well as for packaged goods.

Advertising & Sales Promotion 104

 School of Distance Education

(d) Price Packs: These are offers to consumers of savings off

the regular price of a product, flagged on the label or
package. They may take the form or a reduced-price pack
which is single packages sold at a reduced price (such as
two for the price of one) or a banded pack, which is two
related products banded together (such as a tooth brush
and tooth paste). Price packs are very effective in
stimulating short term sales, even more than coupons.
(e) Premiums or Gifts: These are merchandise offered at a
relatively low cost or free as an incentive to purchase a
particular product. Sometimes the package itself, is a
reusable container may serve as a premium. A self-
liquidating premium is an item sold below its normal retail
price to consumers who request it.
(f) Prizes: These are offers of the chance to win cash, trips
or merchandise as a result of purchasing something.
Pepsi-cola offered the chance to win cash by matching
numbers under the bottle cap with numbers announced on
television. Sometimes the prize is a person, offering the
winner either cash or dinner with actor Sharukh Khan.
(g) Patronage Awards: These are values in cash or in other
forms that are proportional to one’s patronage of a certain
vendor or group of vendors. Most airlines offer “frequent
flyer plans” providing points for miles travelled that can
be turned in for free airline trips. Cooperatives pay their
members dividends according to their annual patronage.
Le Meridian adopted an “honoured guest” plan that
awards points for users of their hotels.
(h) Free Trials: Free trails consist of inviting prospective
purchasers to try the product without cost in the hope that

Advertising & Sales Promotion 105

 School of Distance Education

they will buy the product. Thus, often we see, auto dealers
encourage free test drives to stimulate purchase interest.
(i) Product Warranties: These are an important tool,
especially as consumers become more quality sensitive.
When My TVS offered a two year car warranty,
substantially longer than other competitors’ customers
took notice. They inferred that My TVS quality must be
good or else the company would be in deep trouble.
Companies must carefully estimate the sales-generating
value against the potential costs of any proposed warranty
programme.
(j) Tie-in Promotions: These are becoming increasingly
popular. In a tie in promotion two or more brands or
companies team up on coupons, refunds and contests to
increase their pulling power. Companies pool funds with
the hope of broader exposure, while several sales forces
push these promotions to retailers, giving them a better
shot at extra display and ad space.
(k) Point-of-Purchase Displays: These take place at the
point of purchase or sale. Display of visible mark or
product at the entrance of the store is an example.
Unfortunately many retailers do not like to handle the
hundreds of displays, signs and posters they receive from
manufacturers. Hindustan Lever often use this tool to
promote its products in the retail market.
(l) Product Demonstrations: Products are being shown in
action. Consumers can visit the store and see the usage of
product in live action so that doubts of the consumers can
be clarified in the store itself. When a new product is
introduced in the market, the sales promotional tool is

Advertising & Sales Promotion 106

 School of Distance Education

often used. For example, Ultra-Modern Grinder Mixie

being used by the company to demonstrate its speciality
than the other product.

Benefits of Sales Promotion to Customers

Sales promotion is important for consumers because of the
following reasons.
1) The consumer gets the product at a cheaper rate,
2) It gives financial benefit to the customers by way of
providing prizes and sending them to visit different
places,
3) The consumer gets all information about the quality,
features and uses of different products,
4) Certain schemes like money back offer creates confidence
in the mind of consumers about the quality of goods,
5) It helps to raise the standard of living of people. By
exchanging their old items consumers can use latest items
available in the market. Use of such goods improves their
image in society

Trade Promotion
Trade-oriented sales promotion programmes are directed at the
dealer network of the company to motivate them to sell more of
the company’s brand than other brands. It is also known as push
strategy.
1) Cash bonuses: It can be in the form of one extra case for
every five cases ordered, cash discounts or straight cash

Advertising & Sales Promotion 107

 School of Distance Education

payments to encourage volume sales, product display, or

in support of a price reduction to customers.
2) 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.
3) Credit terms: Special credit terms may provide to
encourage bulk orders from retailers or dealers.
4) Dealer conferences: A firm may organize dealer
conferences and thereby dealers can also provide valuable
suggestions to the company at such conferences.
5) 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.

Objectives of Trade Promotion

More sales promotion rupees are directed to the trade than to
consumers. Manufacturers seek the following objectives in
awarding money to the trade:
(1) Trade promotion can persuade the retailer or wholesaler
to carry the brand.
(2) Trade promotion can persuade the retailer or wholesaler
to carry more than it normally carries.
(3) Trade promotion can induce the retailers to promote the
brand through featuring, display, and price reduction.

Advertising & Sales Promotion 108

 School of Distance Education

(4) Trade promotion can stimulate retailers and their sales

clerks to push the product. Manufacturers use several
promotion tools. Some of which are mentioned below:

Trade Promotion Tools

(a) Price – Off: Manufacturers may offer a price – off, which
is straight discount off the list price on each case
purchased during a stated period of time. The offer
encourages dealers to buy a quantity or carry a new item
that they might not ordinarily buy. The dealers can use the
buying allowance for immediate profit or price
reductions.
(b) Allowance: Manufacturers may offer an allowance in
return for the retailer’s agreeing to feature the
manufacturer’s products in some way. An advertising
allowance compensates retailers for advertising the
manufacturer’s product. A display allowance
compensates them for carrying a special display of the
product.
(c) Free Goods: Manufacturers may offer free goods, which
are extra cases of merchandise to middlemen who buy a
certain quantity of items.
(d) Push Money: Manufacturers may offer push money
which is cash or gifts to dealers or their sales force to push
the manufacturer’s goods.
(e) Speciality Advertising Items: Manufacturers may offer
free specialty advertising items to the retailers that carry
the company’s name such as pens, pencil, calendars, paper
weights, and memo pads.

Advertising & Sales Promotion 109

 School of Distance Education

As the number of competitive sales promotions have increased,

friction has been created between the company’s sales force and
its brand managers. The sales force says that the retailers will not
keep products on the shelf unless they receive more trade
promotion money, while the brand managers want to spend their
funds on consumer promotion and advertising.

Importance of Sales Promotion to Manufactures

Sales promotion is important for manufacturers because of the
following reasons.
1) It helps to increase sales in a competitive market and thus,
increases profits,
2) It helps to introduce new products in the market by
drawing the attention of potential customers,
3) When a new product is introduced or there is a change of
fashion or taste of consumers, existing stocks can be
quickly disposed off,
4) It stabilizes sales volume by keeping its customers with
them. In the age of competition it is quite possible that a
customer may change his/ her mind and try other brands.
Various incentives under sales promotion schemes help to
retain the customers.

Sales Promotion Schemes

Marketers employ a remarkable variety of sales promotion
tools in marketing. A visit to your nearby supermarket will reveal
numerous sales promotion schemes of various products,
simultaneously vying for our attention. All these sales promotion

Advertising & Sales Promotion 110

 School of Distance Education

schemes work on the principle that few people can resist a free
gift, price reduction or special offer.
While sales promotion schemes may induce the buying habit or
buying in large quantities to the exclusion of other brands, they
can also induce frantic brand switching and the loss of brand
loyalty.
The sales manager contemplating a sales promotion
programme must bear in mind that a customer goes around a store
scouting for the special offers, probably irrespective of brand. On
the other hand, schemes widen consumer choice and encourage
the consumers to make an experimental first-time purchase.

Important tools of Sales Promotion Schemes

(1) Competitions: Prize contests depend for success on the
value or originality of the price and the number of prize
offered, including the consolation prizes. The entry
requirement can be proof of purchase such as a token or entry
coupon detached from the pack, extra entries requiring extra
purchases. To be legal, contests require an element of skill.
Contests should be organized with adequate time for proper
adjudication, and there should be publicized announcement
of results.
(2) Self-liquidating premium offers: The meaning of the
expression ‘self-liquidating’ is that cost of liquidating the
premium is collected from the buyer. For example, the
manufacturer of a bathing soap, may offer a ‘soap box’ at a
very nominal price if the soap is purchased. The
manufacturer may buy the soap box in very large quantities
at an attractive rate and then may make an attractive offer to
the consumers to stimulate sales.

Advertising & Sales Promotion 111

 School of Distance Education

(3) Mail-in free offers: A manufacturer offers to send an item

free of cost, if a product is purchased (e.g., sending a pen free
by mail for those who buy some stationery items). Here, no
payment is required, only proof of purchase or perhaps a
token payment to cover postage and packing is required. Care
should be taken to control demand and supply, and it is better
to limit the offer in some way in view of huge financial
implications of free offers.
(4) Free gifts with goods: The gift is usually attached to the
product, as with a toothbrush attached to a carton of
toothpaste; Toys (carefully packed separately) may be
inserted in packets of baby food.
(5) Picture cards: Picture cards encourage repeat buying in
order to retain them. They may be inserted in packs, or
printed as cut-outs on cartons.
(6) Gift coupons: Coupons, with a stated value is kept inside the
packet. Again, these have to be collected in order to qualify
for gifts, and so require repeat purchasing. A catalogue of
gifts must be made available.
(7) Cash premium vouchers or coupons: These can be
redeemed at the retail shops as a price reduction. They may
be printed in press advertisements, delivered door-to-door, or
printed on packs as money off for the next purchase.
(8) Cross-Couponing offers and other schemes: This is a
popular co-operation scheme whereby an on-pack coupon or
token enables the customer to buy another product (not
necessarily made by the same manufacturer) at a reduced
price.
(9) Coupon Redemption schemes: This is fairly a recent on-
pack idea, whereby a product carries a premium coupon
entitling the customer to a discount at named store. This is
Advertising & Sales Promotion 112
 School of Distance Education

liked by the store because the discount can lead to other

purchases.
(10) Jumbo or multiple packs: It signifies that a number of items
are packed together or the container is extra large, and they
are offered at a special price. It is an economical way of, both
packing and buying such items, and ensures that the customer
is well stocked with the products and may thus become a
habit buyer.
(11) Money-off offers: Money-off offers, are ‘flashed’, that is,
printed on the wrapper or carton, a sure way of inducing
impulse buying.
(12) Packing: Another important attempt of sales promotion is
through attractive package. Now-a-days customers are
attracted by good and attractive packing of products. A good
package is one which is attractive and protective, tells the
product story, builds confidence, convenient to handle and
above all economical. The economy and attractiveness of
packing are two important areas which the sales promotion
department should always keep in mind.

(13) Direct Publicity — Sales Letters / Circulars: The sales

promotion department takes all necessary steps to ensure that
a better relationship exists between the sales department and
the customers/dealers. In this regard, sales letters have got an
important role. While drafting the sales letters and circulars,
it should be kept in mind that a personal touch and some kind
of intimacy is maintained. By doing so the manufacturer is
not only able to attract old customers to renew their purchase
but also able to attract new customers.

Advertising & Sales Promotion 113

 School of Distance Education

Module V
Sales Promotion Planning and Control

The Promotional Planning is a process of optimizing the

utilization of marketing tools, strategies, resources to promote a
product and service with the intent to generate demand and meet
the set objectives.

Promotional Planning Process

The Sales Promotional Planning Process is comprised of
following steps:

Advertising & Sales Promotion 114

 School of Distance Education

(1) Problem Definition: First of all, the management must

identify the need for a promotion and should take into
consideration the following points:

 Which Product/Service is to be promoted?

 Who is the target audience?

 How much budget is allocated for the promotional

activities?

 What message is to be conveyed to the prospective

buyers?

 What marketing strategies are to be adopted?

 Which analytical tool is to be used?

(2) Establishment of detailed Objectives: The objectives are
the end goals towards which all the efforts are directed. Once
the target audience is identified the management must set the
objectives of the promotion. The objectives could be to
encourage the non-users to use the product, increase the
usage of the existing customers, or enter into a new market
segment with a modified product line. Similarly, the
objectives for the intermediaries could be to increase the off-
season sales or reduce the effect of competitor’s promotional
schemes. Similarly, the objectives for the intermediaries
could be to increase the off-season sales or reduce the effect
of competitor’s promotional schemes.
(3) Design of Promotion Mix: Once the objectives are set, these
provide the basis for selecting an appropriate promotional
tool (advertising, personal selling, sales promotion, etc.). The
management must carefully analyze all the costs and effects
Advertising & Sales Promotion 115
 School of Distance Education

associated with each marketing element before making the

final choice.
The objectives and the target market should be kept in mind
while designing the promotion mix. As, the promotional
tools for educated, urban and institutional buyers would be
different as compared to the illiterate, rural and household
buyers.
(4) Planning Sales Promotion Programme: This is the most
crucial step of promotional planning that requires the
management to decide the time duration of the promotion i.e.
for how long the promotional tool is to be used. While
deciding on the sales promotion plan the overall marketing
budget along with the eligibility rules and size of incentives
should be taken into the consideration.
(5) Pre-testing: Once the Sales Promotion Plan is prepared, it is
tested in few selected market segments to identify the
potentials or serious problems before its full launch. Here the
management scrutinizes the cost effectiveness of the
promotional plan, problems of ambiguity (if any), customer
response rate, etc.
(6) Implementation: After the promotional plan is tested in the
few selected areas, it is ready to be launched in the complete
market. Here the management must take care of two
important time factors, Viz. Lead Time and Sell-in Time.
The lead time is the time necessary to bring the plan to the
point where the incentives are made available to the public
while; the sell-in time is the time starting from the date of the
release until the time 90-95% of the incentives are received
by the potential customers.

Advertising & Sales Promotion 116

 School of Distance Education

(7) Monitoring and Evaluation: After implementation, the

performance of the promotional plan is checked against the
set standards and objectives and the corrective actions are
taken accordingly. In case the objectives are defined in
quantitative terms then the measurement of the actual results
would be quite easy.
During the evaluation, the management must take care of all
the factors that are beyond control such as economic
recession, seasonal variations, natural calamity, etc. that
might influence the buying decision of the customers.

Establishing Objectives of Sales Promotion

The sales promotion is established and derived from the basic
business and marketing objectives. These can be established as
under:

(1) For Consumers: For consumers following types of

objective can be established:
(a) To encourage bulk purchases through better offers.
(b) To carry out trails among non-uses of products.
(c) To attract switchers from competitors.

(2) For Retailers: Generally following types are objectives can

be established for the retailers:
(a) To persuade retailers to carry new items.
(b) To encourage off-season buying.
(c) To encourage stocking of required products.

Advertising & Sales Promotion 117

 School of Distance Education

(d) To offset competitive promotions.

(e) To build up brand loyalty.
(f) To gain entry into new retail outlets.

(3) For Sale People: It includes the following type of sales

promotion objectives:
(a) To encourage support of a new product or models.
(b) To encourage and stimulate off-season sales.
(c) To encourage more sales prospects.
Selecting Consumers for Sales Promotion
It is basic form of sales promotion since customer is the final
recipient of the product and services. It is done with a view of
saving previous customers and increase in number of customers
for the company’s product. To reduce the effect of sales
promotion strategy of the competitor, consumer sales promotion
may be directed toward this aim.

1) To Introduce New Products

Many companies distribute free samples while introducing new
products. The consumers after using these free samples may
develop a taste for it and buy the products later for consumption.
2) Building Product Awareness
This medium is effective in exposing customers to products for
the first time and can serve as key promotional components. To
build the product awareness sales promotion techniques own

Advertising & Sales Promotion 118

 School of Distance Education

advantage of capturing customer information while exposing

promotion.

3) Creating Interest
Marketers realise that sales promotions are very potent in creating
interest in a product. An appealing sales promotion can
significantly increase customer traffic to retail outlets in the retail
industry. One more way to create interest is allowing a customer
to experience a product (products for free or at low cost).
4) Stimulating Demand
It can be done by lowering the cost of ownership to the customer.
This helps in stimulating sales. Because building product
awareness and convincing customer to purchase the product is
important.

5) Reinforcing the Brand

After purchasing the product, mostly for additional purchase or to
promote the sales. Many companies, including airlines and retail
stores, reward good or preferred customers with special
promotions (e.g., email special deals and surprise price reductions
at the cash register).

The following are the basic reasons for sales

promotions:
1) Introduction of a new product.
2) Stimulus for a new use of a product.
3) Encouragement for increasing frequency of purchase.
4) Appeal to a special area of the market.
Advertising & Sales Promotion 119
 School of Distance Education

5) Combination offer to encourage the use of other products.

6) Creation of dealer interest and inducing them to stock the
articles.
7) Securing shelf space in the retail window.
8) Counter-balancing price competition.
9) Special training of salesmen.
10) Seasonal and grand reduction sales.
11) Capturing bargain hunting and non-brand conscious
buyers through bargain sales.
12) Acceleration to slow-selling lines.
Thus, sales promotion is used at the time of introducing a new
consumer product, to secure maximum dealer stocking, display
space and attention of customers. Sales promotion involves a lot
of expenditure. It also has difficulties. But because it pays rich
dividends, sellers have accepted it as an important item in the
marketing mix.
Not only does it give profit but it also serves other purposes such
as provision of information, creation of demand, repeat buyers,
sales stabilisation and quick inventory turnover. The successful
promotional effort has many ingredients such as personal selling,
sales promotion devices, advertising, public relations and
publicity.
Forms of Consumer Promotion or Sales Promotion:
(1) Coupons, offers, discount – Specific discount is received
by the consumer if he possess specific coupon. Such

Advertising & Sales Promotion 120

 School of Distance Education

offers attracts more and more customers towards product

which increases customer base.
(2) Free sample – Many daily usable products are generally
marketed with this technique. Many shampoo producers
distribute free sachets with daily newspapers to catch
attention and thereby boost sales.
(3) Refund offer – Use our product and if unsatisfied with
the result take your money back. It’s the common practice
now a day to offer money refund on certain products.
(4) After sales service – Many consumer durable products
are sold with extended warranty free of cost or with
nominal charges. People attract toward this because they
feel the risk is minimized with this extended warranty.
(5) Road shows/contests – Road shows and contests are
arranged with special intention of attracting new
customers as a part of sales promotion.

Developing the Sales Promotion Program

In planning sales promotion programs marketers are increasingly
blending several media into a total campaign concept. In deciding
to use a particular incentive marketers have several factors to
consider.
1) Size: They must determine the size of the incentive. A
certain minimum is necessary if the promotion is to
succeed. A higher incentive level will produce more sales
response but at a diminishing rate.
2) Conditions: The marketing manager must establish
conditions for participation. Incentives might be offered

Advertising & Sales Promotion 121

 School of Distance Education

to every one or to select groups. A premium might be

offered only to those who turn in proof of purchase seals
or UPC codes.
3) Duration: The marketer has to decide on the duration of
promotion. If the period is too short many prospects will
not be able to take advantages of it. if the promotion runs
too long the deal will lose some of its "act now" force.
4) Distribution vehicle: The marketer must choose a
distribution vehicle. Fifteen cents off coupon can be
distributed in the package in stores by mail or in
advertising. Each distribution method involves a different
level of reach cost and impact.
5) Timing: The marketing manager must establish the
timing promotion. For example brand managers develop
calendar dates for annual promotions. These dates are
used by the production, sales, and distribution
departments.
6) Sales Promotion Budgets: The marketer must determine
the total sales promotion budget. The budget can be built
from the ground up with the marketer choosing the
individual promotions and estimating their total cost. The
cost of a particular promotion consists of the
administrative cost (printing, mailing and promotion the
deal) and the incentive cost (cost of premium or cents off
including redemption costs) multiplied by the expected
number of units that will be sold on the deal.

Pre-testing of Sales Promotion Programme

The most of the sales promotion programme are designed on the
basis of past experience.
Advertising & Sales Promotion 122
 School of Distance Education

The pre-test of the programme is carried out or conducted to know

about the followings:
(1) Whether the tools are appropriate.
(2) Whether the size of the incentives is optimal.
(3) Whether the presentation method is efficient.
The pre-test exercise of the programme can be carried out by
asking the sampled consumers to rate or rank about the different
types of deals. Such types of trials of the programme can be
conducted in the limited geographical areas only.

Implementation and Control of Sales Promotion

Programme
The marketers should prepare implementation and control
programmes for every promotion strategy which should cover the
following aspects:
(1) Lead Time: The lead time is prepared prior to launch the
promotion programme. It must consider the
following factors:
(a) Initial Planning.
(b) Program design.
(c) Approval of distribution media, which consists of
package, modification or mailing material.
(d) Preparation of advertising materials.
(e) Purchase and printing of special packaging materials.

Advertising & Sales Promotion 123

 School of Distance Education

(f) Production advance inventories for the release at a

specific date.
(g) Final distribution to the trader.
(2) Sell in Time: It begins with the launch of promotional
programme and ends with the final merchandise in the hands
of ultimate customers. Thus by taking all these factors into
consideration the marketer should plan for the
implementation and control of promotion programme.

Evaluation of Sales Promotion Programme

Evaluation of sales promotion programme is made to measure its
effectiveness, and to ascertain the short comings, if any, so that
improvements can be made in future. Producers spend
considerable amounts on sales promotion activities by allocating
a major portion of the marketing budget for sales promotion
programme. But, it has been noticed that they spend very small
amount and time to evaluate and finding out the achievements or
the drawbacks, if any.

Need for Evaluation:

Evaluation is the basic need for the success of any activity.
Regular evaluation of sales promotion programme is necessary
for its success.
The need for evaluating the sales promotion programme arises on
accounts of the following reasons:
(1) Taking corrective steps in case of any drawback is
noticed.
(2) To measure the effectiveness and achievements of
objectives.
Advertising & Sales Promotion 124
 School of Distance Education

(3) Identifying growth and development opportunities.

(4) Facilitate for future planning.
(5) To fix accountability on concerned authority.
(6) To encourage for research and innovations.
(7) Motivate and appraise the employees who have
contributed more efforts.
(8) To know the maturity of limit of sales promotion
programme.
(9) To study the new and modern tools of promotion.
(10) To get allocated maximum budget for sales promotion.
On the basis of evaluation results, if necessary efforts will be
made to bring quicker the activities of the distributors, middlemen
and retailers, and necessary guidance is given to the sales force
also. Besides these, ineffective sales promotion techniques can be
given up and new or the latest techniques can be adopted.
Evaluation is also helpful to change the cost estimates, budget and
coordinate efforts of communication medias, to frame more
sound and profitable sales promotion programme.
It is also essential to fix accountability on the sales force,
identification of growth opportunities, encouraging research, etc.
In short, evaluation of sales promotion programme becomes the
basis of future planning.

Methods Used for Evaluation of Results

The following methods can be used by a marketer to evaluate the
results of programs implemented or launched:

Advertising & Sales Promotion 125

 School of Distance Education

(1) Sales Data Method: This method is based upon the sales
data, which can be collected from various sources. It can
be analyzed on the basis of available data that the type of
different people who took advantage of such programs.
What they were purchasing before the promotion
programme and how they are behaving after the launch of
such promotional programs. It is also noted and analyzed
that what net impact they observed after launching the
promotion programme.
(2) Consumer Survey Method: The consumer survey
method can be used to evaluate the promotion
programme. This method is used to know that how many
customers recall the promotion programme. What they
perceive about it. How many among those took an
advantage of promotion. It can also be observed that how
the promotion has influenced their behaviour in selecting
a particular brand.
(3) Experimentation: The sales promotion can also be
analyzed with the help of experimentation method. For
example, certain set of customers can be sent coupons to
promote and evaluate their behaviour towards particular
product. Further the scanner data can be used to know that
whether this exercise led more customers to buy the
product instantly or in future.
Thus the whole of the process should be evaluated very carefully.
It will certainly be helpful to manage the things and can provide
an effective feedback for the future course.

*********
Advertising & Sales Promotion 126