Advertising and Salesmanship
Advertising and Salesmanship
In modern times advertising prevails in all 1. Advertising informs the customers about
areas of human life. It has acquired the distinction of product attributes. It can help to sell products, by
being the most visible and glamorous method of giving information – what product is, what it does,
marketing communication. Advertising constitutes where it can be found etc. It informs possible
one of the four components of a firms promotion customers of what is an offer, and persuades them to
mix, which in turn forms an integral element of the buy the goods.
firms marketing mix. The task involved in
advertising is complex and its management requires 2. In the case of new products, it can begin to
systematic decision making. develop a reputation for the product and to the
Company. In modern market conditions, where the
Advertising is an impersonal mass selling and differences between competing products are fairly
communication method. It makes use of various marginal, an established reputation can make the
types of media to reach the target public in short difference between market leader and others. If we
time. Being persuasive in nature, advertising broadly look at the brands which have been successful for 30,
aims in gaining exposure, creating awareness and 40 or 50 years like Bajaj, Lux, Colgate etc, they have
changing attitudes of customers in favor of sponsors been continuously advertised.
products.
3. Advertising is a weapon of competition as
Advertising can be defined as any paid form of non- well as merely a way of achieving sales. It helps in
personal presentation and promotion of ideas, goods distinguishing one brand from its competitors, it can
or services by an identified sponsor. Norman. A. Hart affect consumer preferences and tastes and can
says that “ advertising is the action of calling differentiate product from competitive offerings.
something to the attention of the public, especially by
paid announcements. 4. Even in competitive markets, advertising is
used as a way of reminding customers that the brand
People have for centuries communicated their ideas exists and retaining their confidence in it ability to
and their needs to one another through meet their needs. It can also keep the product in
advertisements. They have engaged in a wide range customers mind during off seasons. For example
of social and economic activities through advertising. most of the COCA-COLA ads, and ads of FEVICOL
Government communicate with people, politicians are designed primarily to remind primarily people
with their constituents , corporations with their share about these products.
holders, employers announce job opportunities and
persuade people to come to them. 5. Advertising affects the economy also. It can
encourage economic growth, investments and jobs. It
maintains competition by informing customers. In
that way it can even brake monopoly.
IMPORTANCE AND OBJECTIVES.
6. The effect of advertising on the Co, and
A look back in to history will reveal many industry are also very high. Advertising can provide
examples of products being offered for sale from the increasing return and will reduce marketing risk and
early days of printing: indeed Romans and Greeks uncertainty. It can provide free information and can
placed their messages and signs outside the shops to even serve as a tool for quality control.
give some indication of the trade being carried on
there. Advertising has an indispensable place for 7. Advertising can support and motivate
itself in the marketing mix of a firm. Advertising is distributors. In many cases from car to electronic
likely to make greater contribution when buyer equipments, the advertisement will often include lists
awareness is minimal and when the product has of stores or dealers selling the products, to make sure
features normally not observable to the buyer. that the prospective customers can find them.
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8. Advertising provides a revenue for the media; 4. Profit Maximisation : True advertising does not
and the entertainment and informational value of attempt at maximising profits by increasing the cost
advertising is also important. Government and but by promoting the sales. This way It won‟t lead to
various social institutions and groups also make use increase the price of the product. Thus, it has a higher
of advertising, to raise issues, influence ideas, affect sales approach rather than the higher-cost approach.
legislation or even to protect the animals and forests.
5. Non-Personal Presentation : Salesmanship is
9. Advertising also helps to eliminate the seasonal personal selling whereas advertising is non-personal
fluctuations in sales, makes the product known in character. Advertising is not meant for anyone
widely, keep a steady demand and even to appoint individual but for all. There is absence of personal
best available employees. appeal in advertising.
10. Research : Advertising stimulates research and 6. Identified Sponsor : A sponsor may be an
development activities. Advertising has become a individual or a firm who pays for the advertisement.
competitive marketing activity. Every firm tries to The name of reputed company may increase sale or
differentiate its product from the substitutes available products. The product gets good market because of
in the market through advertising. This compels its identity with the reputed corporate body.
every business firm to do more and more research to
find new products and their new uses. If a firm does 7. Consumer Choice : Advertising facilitates
not engage in research and development activities, it consumer choice. It enables consumers to purchase
will be out of the market in the near future. goods as per their budget requirement and choice.
Right choice makes consumer happy and satisfied.
11. Education of People : Advertising educate the
people about new products and their uses. 8. Art, Science and Profession : Advertising is an art
Advertising message about the utility of a product because it represents a field of creativity. Advertising
enables the people to widen their knowledge. It is is a science because it has a body of organised
advertising which has helped people in adopting new knowledge. Advertising is profession is now treated
ways of life and giving-up old habits. It has as a profession with its professional bodies and code
contributed a lot towards the betterment of the of conduct for members.
standard of living of the society. 9. Element of Marking Mix : Advertising is an
FEATURES OF ADVERTISING important element of promotion mix. Advertising has
proved to be of great utility to sell goods and
1. Communication : Advertising is means of mass services. Large manufactures spend crores of rupees
communication reaching the masses. It is a non- on advertising.
personal communication because it is addressed to
masses. 10. Element of Creativity : A good advertising
campaign involves lot of creativity and imagination.
2. Information : Advertising informs the buyers When the message of the advertiser matches the
about the benefits they would get when they purchase expectations of consumers, such creativity makes
a particular product. However, the information given way for successful campaign.
should be complete and true.
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not only assists in promoting the product, but also advertising the marketer can convey the positioning
affects the other variables of marketing mix. This can of the brand and accordingly can influence the
be explained as follows buying decision of the target audience.
There are some instincts behind every human thought 1. Pride :- This can be used to popularize luxury
and action. These are the underlying or hidden forces articles.
which compel or induce people to act in a certain
way. The most important function of an 2. Beauty :- This is used for cosmetics,
advertisement copy is to induce, persuade and perfumes etc.
motivate the prospects to think about the products
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3. Health :- In drugs and food product 13. Interesting : A copy should be interesting-
advertisements. provoking. It must stimulate the readers‟ curiosity to
read the message. The reader should himself decide
4. Economy :- This is that central theme in to read the message in detail.
advertisements of clearance sales or bargain
purchases. Thus a good advertisement copy must possess the
above qualities to make it an ideal advertisement.
5. Fear:- Themes stressing the fear of death,
accidents, loss etc are generally used by insurance
CO’s.
CLASSIFICATION OF COPY.
9. COLLOQUIAL COPY or
5. SUGGESTIVE COPY. CONVRSATIONAL COPY.
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The colloquial copy presents the message in the way The ultimate aim of every advertisement is to
of conversation. It uses an informal language and stimulate the sales. As a reader turns the pages of a
conversation takes place , in between reader and magazine or news paper, he notices so many
advertiser. advertisements, but a great variation in copy. some
copy may be ‘striking’, that the reader takes
10. PERSONALITY COPY. immediate action , while he does not like some other.
This copy attempts to encash the opinion of The following are the main components of a good
personality about the product. Usually the personality advertising copy.
is real and a photograph of the personality ( a person 1. HEAD LINE.
specialized) is given with the text of the copy with a
view to convince the readers through the moral The first device in a copy is head line. Its main
influence of his name. invariably such copy shows a purpose is to attract attention, arouse curiosity or
certificate or testimonial of such person. interest and there by induce further reading. It should
be as short as possible. It represents the message or
11. PRESTIGE COPY. an appeal.
This pattern is usually followed in institutional Head lines are of various types. W.H. Howards
advertising, which aims at creating an atmosphere classifieds headlines in to 4 types.
about the product or the firm an may not directly
advise the product for sale. A. Label Headline.
12. QUESTIONING COPY. A label headline identifies the name of a product. For
example “ Castrol Engine Oil”. Such type of headline
This, as the name suggests, incorporates a series of inspires the reader least.
questions expected to be answered by the readers.
The advertiser puts no narration, statement or reason B. Informative Headline.
of its own, in order to pursue the readers to buy the
product. The question arises curiosity in the minds of These types of headlines give information about the
the readers and makes them think of it. The question product. These generally specify the attribute of the
in such copy may be positive or negative. product in exaggeration. Eg. “ SURF WASHES
WHITER”. These headlines are effective as they are
13. DESCRIPTIVE COPY. designed to attract the attention of readers, even those
who are in hurry.
This type of copy describes the pertinent and relevant
characteristics features of the product. It is very C. Provocative Headline.
simple and of non technical nature. It is very much
similar to a press account or news item, simply These arouse the readers curiosity and impels the
giving relevant information to public with out any reader to see what it is all about. Such types of
stylish touch. Sometimes such copy is very lengthy, headlines are generally used when an item is
and it has hardly any chance of it being read in full. introduced in the market for the first time.
Such types of copy are usually written not by a D. Selective Headlines.
professional copy writer, but it is written by the
advertiser himself. Selective headlines direct the appeal to those for
whom products are intended. It eliminates all other
COMPONENTS OF AN ADVERTISING COPY. readers; for whom product is not appealing. Eg.
An advertising copy is the means by which the “Attention Importers”.
advertisers ideas are given expression to, in a E. Direct Command Headlines.
message to readers. Copy refers to all the reading
matters of an advertisement, including headlines, text These headlines ask the reader to buy the particular
or body, an the name of the company. brand.
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F. Question Headlines. An ideal slogan is short, simple, easily remembered
and filled with pleasing suggestion of the product.
Such headlines put questions to the reader and
suggest the solution in using the particular article.
The sub headlines serve the following three purposes. These consist of photographs, drawings, graphs,
charts, paintings and other pictorial devices. The
1. They gain attention and interest of the readers main idea behind giving illustration is to gain
2. They organize the copy into logically related attention, comprehension, attitude change and
segments & behavior change. They invite quick understanding of
a given idea and convey themes. They can tell a
3. They direct the interest of the consumer to story, make a point quickly and clearly and prove a
important points. claim.
3. Be hardly more than 7 words long : A. descriptions of how the product works
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B. test results Following are the main features of good layout:
D. testimonials or quotations from the experts 1. Balance : Balance in layout means achieving
a proper distribution of weight through the
E. sales records and guarantees. arrangement of the elements. Balance should
be maintained in size, colour shape and
density of elements.
VI CLOSING IDEA. 2. Movement : There should be mobility in the
advertisement. It provides a visual type of
Up to this point, all efforts are made to establish
flow and sequence. Movement guides the
product awareness, knowledge, liking and
render‟s eye from one element to another and
preference; for the purpose of persuading the reader
makes sure that he does not miss anything.
to purchase the product. Because an advertisement is
Movement should start from the left hand top
a one way communication, its closing efforts should
corner of the advertisement to the right hand
be to supply all information, directions, and
bottom corner.
motivation necessary for the buyer to take action.
3. Proportion : It involves appropriate division
VII. IDENTIFICATION MARKS. of the space between the various elements
like the headline, illustration, subheads, copy
It is advertisers name, brand name, or identification etc. In a headline oriented advertisement,
mark or trade mark. A brand name, symbol or a word headline should be given major space and in
may be used as a means of communication that an illustration oriented advertisement,
brings about an identity of the producer. illustration will dominate the space.
4. Whide Space : Whide space is the area not
occupied by copy. Effective use of whide
All these elements or components of an space helps to establish a sense of proportion.
advertisement copy should be well knit in to a Whide space helps in reducing a crowdy
harmonious and symmetrical form. appearance and brings prestige and luxury in
an advertisement.
DESIGN AND LAY OUT 5. Unity : There should be unity between the
Design and lay out almost carry the same meaning as elements i.e. there should be proper
consisting of the overall structure of advertisement correlation between the headline and copy or
copy. A layout is a sketched plan of a proposed illustration and copy. Unity is also achieved
advertisement. It includes the headline, rough when the elements appears as component part
illustration and copy which serves as plan for the or a single unit
advertisement. 6. Clarity : It implies that the various elements
should be arranged in such a manner that the
Lay out is an arrangement of various elements of an message is understood clearly. The layout
advertisement copy.(ie headline, subheading, should not be too complicated and tricky but
illustration, slogan etc). The term is most specifically must be easy to read and understand. The
applied to the design of a news paper, magazine or type, size, design should be selected for easy
outdoor advertisement. reading.
7. Simplicity : It implies that too many elements
A good advertisement is a good combination of both
in an advertisement should be avoided. Those
copy and art. The arrangement of lay outs includes
elements. Which can be dropped without
size and position of elements, style and color.
destroying the message should be dropped.
Features of a Good Layout : The simplier the Layout, the clearer the
message.
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8. Emphasis : It implies that the important medium. For example if top quality color printing is
elements should be given much emphasis. needed, magazines would be better than news paper.
There should be emphasis on the various Product demonstration can be done through TV, in a
selling points and the purpose of advertising better way.
depending upon the requirements.
Advertising media is the vehicle used to carry the B. where are they located
advertising message from the sendor to the intended
receiver. Since advertising is a means of mass C. what is the message.
communication, it requires mass media. This enables D. when do we run the Ads?
advertiser to get in touch with a large number of
people at a time. The basic objective of media is to What - No product or service is consumed by every
place the advertising sales message before the one, and through market segmentation the
prospective buyers. planner select the best prospects. The planner then
selects the media with audience that best fit the target
market. These media would reach the largest number
‘Media Planning’ involves selecting appropriate of prospects with the available money.
WHAT
What message is to be communicated has WHERE - Advertising needs a sound strategy. There
considerable importance. A particular copy approach may be regional differences in taste and preferences ,
or technique of presentation requires a particular and some medias like news papers magazines etc’s
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WHEN - When to advertise can be planned in terms durables. It is directed at local customers. Media,
of seasons of the year, months, days and hours. The used for local advertising, are shop decorations, local
regular issue dates of print media (weekly, magazines newspapers, magazines, posters, pamphlets,
etc) and specific time units of TV and Radio let hoarding, new signs, local cinema houses, etc.
advertisers select the time when their messages will
be seen. Advertising there fore can be scheduled to 2. Regional Advertising : . It covers a particular
fit seasonal sales and day by day shopping habits. region, which may be one state, or, more than one
state. Media, used for regional advertising, include
To answer the four – W’s- media planners require regional newspapers, magazines, radio, regional
much information about the many media alternatives. T.V., outdoor media, etc. It is considered to be an
Such information includes circulation, audience ideal form of advertising for launching and marketing
costs, and competitive activity. a new product in a specific region.
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parts and components, and are directed at industrial supporting role to the major media such as television,
users or customers. Such advertisements usually and newspapers.
appear in trade journals, trade dictionaries, business
magazines and so on.
IV. Classification on The Basis of Function :
3. Trade Advertising : This kind of advertising is
employed by manufactures and/or distributors to 1. Direct Action and Indirect Action Advertising :
influence and persuade wholesalers and dealers Direct action advertising is undertaken to obtain
(retailers) to stock and sell the goods of the advertiser immediate response or action on the part of target
by offering incentive schemes to them, or, by inviting audience. Examples include discount sales
dealership for their particular products(s). advertising, sale along with free gift offers, and mail-
order coupon sales, etc. The media used is mostly
4. Professional Advertising : It is directed at
newspapers, and television. Indirect action
professional like doctors, professors, engineers and
advertising is undertaken to influence the audience in
others, who are expected to recommend, prescribe,
respect of advertiser‟s brand. The advertiser expects
or, specify the advertised products to ultimate
the target audience to prefer his brand as compared to
consumers. This is done through professional
competitors whenever a buying decision arises in
journals and representative of the advertisers.
future.
III. Classification on The Basis of Media
2. Primary and Selective Advertising : Primary
On the basis, advertising may be-classified into the Advertising is undertaken by trade association or by
following four categories viz., (1) Print media cooperative groups. It is undertaken to create generic
advertising; (2), broadcast media advertising; (3) demand for products and services. For example, the
outdoor media advertising. Coffee Board may advertise to consume more coffee.
Selective Advertising is undertaken by marketers of
1. Print Media Advertising : The print media branded products. The advertiser intends to create
consists of newspapers, magazines, journals, selective demand for his brand. Examples include
handbills, etc. No newspaper or, journal, today, can Pepsi Cola, Coca Cola.
survive without advertising revenue..
3. Product and Institutional Advertising : Product or
2. Broadcast Media Advertising : Electronic, or, Service advertising is undertaken to promote the sale
broadcast media consists of (i) radio, (ii) television, of products and services-branded or unbranded.
(iii) motion pictures, (iv) video, and (v) the internet. Institutional advertising is undertaken to build name
The radio is audio in nature, appealing only to the and goodwill of the organisation. It is also, know as
sense of sound (ears). Radio advertising is more corporate advertising or image advertising. It is
effective in rural areas, as compared to urban regions. mostly undertaken by large firms.
Television, as an advertising medium, is more
attractive and effective because it is an audio-visual
medium appealing to both the senses of sight sound
V. Classification on The Basis of Advertising
(eyes and ears).
Stages . On this basis, advertising may be classified
3) Outdoor Media : This include posters, neon signs, into the following three different categories, viz., (1)
transit, point of purchase (POP), etc. Outdoor advertising at pioneering stage, (2) advertising at
advertising can be a good supporting media to other competitive stage, and (3) advertising at retentive
forms of advertising. It is a good form of reminder stage.
advertising, especially, the POP advertising.
1. Advertising at Pioneering Stage : Advertising at
4) Other Media : This includes direct mail, handbills, „pioneering stage‟ is undertaken to make the
calendars, diaries, cinema advertising, internet and so audience fully aware of the new brand of product and
on. These miscellaneous media can play an important
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to inform, influence, and persuade them to buy, or, 4. Financial Advertising : When an advertising
use it by highlighting its unique features. message is directed to attract for raising capital, it is
called financial advertising. The banks, insurance
2. Advertising at Competitive Stages : Once the companies and commercial undertakings collect
brand survives the introductory stage, it has, soon to required funds from the savings of the people by
face a stiff competition with other well established motivating them to post-pone present expenditure to
brands in the market. At this stage, competitive future-period.
advertising is undertaken to promote sales
effectively. 5. Corporate Image Advertising : Corporate Image
advertising designed or aimed to create a proper
3. Advertising at Retentive Stage or Reminder attitude towards the seller and to build goodwill or
Advertising : When the product has captured a large image for the advertiser.
share of the market, „retentive advertising‟ is
undertaken to maintain, or retain the stable position 8. Public Relations Advertising : It is a part of
in the market as long as possible. Moreover, if the institutional advertising. The basic objective of
same product is passing through the declining stage public relations advertising is to establish co-ordial
in the market, this type of advertising is used to and healthy relations with the customers, bankers,
remind the buyers about the product hence, it is also suppliers, Government. Patrons and the general
known as „reminder advertising‟. public.
14. Service Advertising : Service advertising is But in practice there is hardly any single
designed to operate in the public interest. It is media that satisfies the above three objectives. There
undertaken to seek public welfare and social are number of advertising media choices available to
development. It is in the nature of non-commercial the company in India. However, the real managerial
institutional advertising. task is to identify from among them the one (s) which
is relevant for the company. For this purpose the
15. National Advertising: It is generally undertaken management should consider the following factors:
by manufactures of branded goods, for which,
advertising messages is communicated to consumers 1. The Nature of the Product : The nature of the
allover the country. Almost all possible mass media, product determines the choice of the advertising
including national newspapers, radio and television media. For instance, cinema, television, colour
network, are employed for national advertising. periodicals would be the obvious choice for products
like fabrics and toilets requiring visual presentation.
16. Retail Advertising: Retail advertising is the In this connection, management should develop a
advertising by retailers who usually sell goods direct product-media match.
to the customers. Retail advertising has such
objectives as : (i) to sell the stock; (ii) to establish the 2. Market Requirements : While selecting
identify of business; (iii) to attract personal, advertising media, the company‟s market
telephone or mail order shoppers. requirements should be considered. When they meet
these requirements, they lend themselves to good use.
For example, specialised high fashion colour
magazines would be the proper media for consumers
MEDIAS IN ADVERTISING.
with high income groups. Similarly, outdoor media
would be appropriate when consumer action is to be
induced at the point of purchase.
The most brilliant and original advertising ideas will
be wasted if they are not presented through the right 3. Advertising Objectives : The advertising
media in the right place at the right time to the right objectives also determine the type of media to be
people. Hence the selection of right media is an selected. For example, the press is preferred to
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project corporate image while radio and television is required. For instance, in 1973, and 1974, owing to
relevant for product advertising. acute newsprint shortage, space availability in
national dailies was a real problem.
4. Distribution Strategy : The advertising media
should be compatible with the distribution strategy
adopted by the company. For example, if the
10. Penetration : How can we penetrate the market
company is selling through middlemen wholesalers
most thoroughly or how can we reach the greatest
and retailers etc., then outdoor advertising media
number of potential customers is also an important
duly supported by television, radio and cinema etc.
factor influencing the choice of a particular
may help to pull the product out of channel.
advertising media.
5. Nature of the Message and Appeals : The nature
11. Size and Nature of the Business Enterprise : The
of advertising message appeal also determines the
size and nature of the business enterprise also play an
advertising media for a company. The media should
important part in making a choice for the advertising
be able to carry the message and appeal to the right
media. A big business enterprise may make use of
persons in the perspective. For example, if time is the
television, radio and newspapers having national
essence of communication, daily newspaper and
network, whereas a small unit may prefer local
radio may be the best choice. Mass consumption
newspapers and cinema-slides etc.
items like soaps, toothpastes, hair oil etc. may
determine television, newspapers as the best Thus the above factors are generally considered
selection. while selecting the advertising media for selling the
products.
6. Budget : The budget available for advertising
purpose will decide the choice of media of
advertising. For example, a manufacturer having
comparatively large funds for advertising may DIRECT AND INDIRECT ADVERTISING.
choose television or radio or both as a media of
If the message is to be communicated to specific
advertising. On the other hand a medium or small
persons, the advertising is direct. The advertiser may
sized businessman may prefer newspaper and
write letters to consumers directly persuading them to
magazine as an advertising media.
buy his product or service.
7. Competitors Choices : A company should also
Indirect advertising is meant for people at large.
take into account the wisdom of competitors media
Advertising made through indirect media can be
choices despite differences in advertising objectives
heard and seen by any body.
and appropriations. It is not desirable to outright
dismiss their choices. Generally, the advertising INDOOR AND OUT DOOR ADVERTISING
media used by competitors are preferred so as to
make an impressive appeal for the product. The media which are available to the modern
advertisers are really numerous. One can sit
8. Media Circulation : The company should take into “indoors” and read news papers, magazines, journals,
account the circulation of the advertising media. listen to radio, and see TV. These Medias are called
Media circulation must match the distribution pattern indoor Medias.
of the product. This applies to the press media. The
advertising media selected should have maximum On the other hand outdoor advertisements are seen
circulation, such as Hindustan Times etc. out doors. These advertisements are so located, so as
to catch the eye of the passers immediately. Eg are
9. Media Availability : The question of media posters, hoardings, neon signs etc. because out door
availability is quite relevant while considering advertisements are fixed at some specific places,
advertising media alternatives because not all medias people are able to see them again and again and there
are available to a company at all times whenever fore their impact is better.
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PRINT OR PRESS MEDIA. lesser the cost per individual. Hence this medium is
economical.
Press advertising remains the most popular and
effective method of publicity today. News papers and
magazines have become the part of the culture and
life of the people today. It plays a very important part 2. Flexibility and Timeliness.
in advertising. Press publicity takes two forms - News papers offer a lot of flexibility. According to
News Papers and Magazines. the convenience and necessity of the advertiser, the
shape, size and appeal may be frequently changed.
Messages given have timely impact and current
1. NEWS PAPERS. events can be easily capitalized.
3. Choice of Market.
Perhaps the oldest , powerful and the most popular Generally a news paper is more popular in one region
media available to advertisers is news paper. It can than in other parts of the country. In our country , for
communicate the information to a large number of example, Hindustan Times is more popular in Delhi,
people and is also able to reach the most interior part and its surrounding areas ; The Statesman in
of the country. News papers has become the most Calcutta, and The Hindu in south India.
common habit of literate people. News papers
provide a wide coverage of local and national An advertiser who wants to appeal particularly to the
markets. As they are published regularly, one can consumers of a particular region or market, can make
advertise daily if he wants to do so. News papers can a choice of the news paper in which he would buy
be divided in to morning or evening editions, Sunday space on this basis. Besides these national dailies,
news papers, bi weekly etc. it is interesting to note some local news papers are widely read in hat
that the advertiser depends on news paper while the particular region or a segment of that region. Such
news paper depends on advertisers for financial papers can very well be used to help the dealers by
support. advertising the product along with their names.
This is one of the oldest media of advertising. Direct Usually these are sent to customers, who either
mail advertising is a way of sending sales messages enquire about the product, or show interest in
directly to the prospects, either through post or purchasing the product. Catalogues are illustrative
through salesman or dealers. This is a kind of printed price lists containing the price and features of goods.
advertising carried on by having direct contact with Generally catalogues are sent to business buyers and
prospects through postal services. This method is larger order placing customers like libraries, who
suitable for explaining details about products and preserve them and refer whenever necessary. Book
services. lets are small books containing of several pages with
cover pages. They are designed for thorough reading
In direct mail advertising, the sales message is sent and study. Similar to that of catalogues, these are sent
by means of sale letters, circulars, folders, catalogues usually to bulk purchasers and business purchasers.
and book lets. Some of the important media of direct
mail advertising are: A. House Organs
A. Sales Letters. These are published by the Co’s from time to time to
inform about Co’s activities. These generally contain
This is the most widely used method of direct mail articles stories and pictures; for the purpose of
advertising. The letters are directly sent to prospects influencing customers. These Co magazines are
through post. usually supplied to wholesalers, retailers, sales man
B. Circulars. at free of cost.
ADVANTAGES.
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1. These are directed to specific persons. This is 4. In case of direct mail advertising, it becomes
the closest substitute for personal selling. Here the quite difficult to prepare a reliable mailing list.
seller addresses his buyers by name and the Further the success depends upon the updating of the
promotional message is private, personal and mailing list.
confidential.
BROAD CAST MEDIA.
2. here the selling points are elaborately
discussed and illustrations are given more accurately. Advertising through Radio, Cinema, and TV has
become common. It is a part of indoor advertising.
3. as advertising materials are sent to the buyers
by his own name, and delivered directly to him, the RADIO ADVERTISING.
most busy people can be easily reached. Radio advertising appeals through the ears. Now a
4. Here selectivity is possible, because it is days, several broad casting stations all over the world
meant for selective customers only. Thus advertiser are selling time for the purpose of commercials.
is able to send the selling messages to the persons for Over the years , Radio has become a very popular
whom it is intended. This helps to minimize wastage. and effective medium of advertising in our country.
5. Here the advertiser can maintain secrecy Almost every family has a Radio in India. The
because the materials are directed to the buyers impact of Radio advertising is quite clear in
usually by his own name. advanced nations. The Voice of America, BBC, and
AIR accept advertisements to broad cast them on
6. In direct mail advertising, the seller can radio. Radio advertising in India was started in
measure the impact of advertising satisfactorily. November 1967, when commercial services on
Results can be checked by measuring the response to Vividh Bharti was started.
mailing.
Radio advertising may be described as word of
7. Direct mail materials like catalogues , book mouth advertising on a large scale. It is only because
lets, etc have got some educative value. This helps the advertisers deliver the message orally and not
the customers a lot by providing information. visually. It is quite different with other meia, because
it makes appeal to the ear and not to the eye, with the
8. This enjoys the advantage of timelines if the effect that the message is conveyed to the masses.;
materials are sent at the right time. whether literate or illiterate.
9. Direct mail advertising is the most flexible, Advertisers using the Radio as the medium of
adjustable and adoptable of all media. advertising may be national or local. It serves the
regional rather than national, because of many factors
such as language problem, or the appeal to listeners
LIMITATIONS. may vary from region to region. With the advent of
TV, some industrial observers felt that the radio
1. direct mail advertising is costly. The cost of
advertising might become obsolete.
preparing and dispatching advertising materials are
very high. Only Co’s having large financial resources MERITS.
can afford such a form.
1. Human Appeal.- Radio broad casting has
2. The coverage is limited, and therefore it cant human touch un equaled by the print medium. It is
be considered as a means of mass communication. alive and quite dramatic. It can be made like a face to
face conversation.
3. Direct mail advertising in the absence of
requests suffer from low reader interest. In other 2. Variety of program.
words unless the customers themselves request,
direct mail advertising gets little response from them.
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It affords variety of programs that facilitate the 5. The radio is not suitable for all products.
selection. The programs of special interest to the Goods of frequent use may be advertised, but goods
family members can be use for promoting like capital goods cant make a good impact.
appropriate products.
Thus radio advertisements can be favored only for
3. Sales messages can reach both literate and the goods of general use. It is regarded as an effective
illiterate people; as they can listen and understand media. But due to high cost, only big enterprises can
radio advertising. There for the scope of this media is avail the fruits of the media.
much wider.
TELEVISION ADVERTISING.
4. Radio advertising can be changed according
to the requirements of the product or service or Another development in advertising media in our
listeners. The selling message can be changed during country is TV. It provides a scientific
the day it self. Thus this media offers much synchronization of features of sound, sight and
flexibility. motion, that no other medium has been able to
provide. That is why TV is the best selling mode of
5. People listen to radio programs at leisure advertising ever invented. A large varity of
times. There fore they are in a receptive mood while techniques are available to the advertiser for the
listening to a radio. Thus message can be easily production of TV commercials.
conveyed to them.
TV has to play a promising role in Indian marketing
6. Radio publicity gives the advertiser a long system. This media is particularly advantageous for
sought opportunity to convey the message to the those, whose products require demonstration. Now in
people in their homes. India, commercial advertising is a part of almost all
the programs broadcasted and the arrival of cable TV
7. Radio can convey the message to the masses and foreign channels gave this medium a tremendous
even to the remote area. growth.
8. Radio is an in expensive medium. The cost of TV can be used as an initial medium to generate
advertisement per listener is negligible. product awareness , while a follow up radio
DEMERITS. campaign using the TV soundtrack can also be done.
Like radio advertising, TV advertising may take the
1. A message on the radio is highly perishable, form of short commercials, as well as sponsored
because it lasts only for a short while. A listener has programs combining entertainment and publicity.
a chance to miss the Ad. It cant be repeated, but in
press media, reader has as many chances as he can. MERITS.
2. Radio appeals only to the sense of hearing. 1. It combines all the merits of radio and film
The medium cant take advantage of visual means of advertising and also include merits of sound and
communication as TV do. sight. It can be seen at home.
3. High cost of time discourages radio as an 2. As TV ads combine sight and sound
advertising medium. It is beyond the reach of small elements, it is able to make a lasting impression upon
sized advertisers. the audience.
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5. It is most suitable for those producers, whose range of people in both business and advertising. For
products require demonstration. The product can be advertisers, there is a whole new world of potential
shown on TV screen, and its qualities and features customers.
may be well explained through this medium.
Type of Internet Advertising :
LIMITATIONS.
Ads on the Internet can take a variety by forms. Most
1. A major limitation is that it is very costly. advertising on Internet can be classified as websites,
Small and medium sized manufacturers with limited banners, buttons, sponsorships, interstitials, Meta
financial resources are not able to advertise through ads, classified ads, and email ads.
this media.
5. SKY WRITING.
In certain types of retailing, store location is (a) Reach : It refers to the number of different
extremely important. Such retailers attract the persons or household exposed to a particular media
attention of consumers by the display of articles for schedule at least once during a specific time period.
sale, inside glass windows which are seen from out (b) Frequency : It refers to the number of times
side. This is usually done in case of cloth shops and within the specified time period that an average
electronic products. person or household is exposed to message.
8. SPECIAL DISPLAYS AND SHOWS. (c) Gross Ratings Points : It refers to the total weight
Most of the manufacturers have found that putting of a media effort in quantitative terms. GRP‟s are
special displays of several products in selected stores equal to each multiplied by average frequencies.
is a good promotional device. This kind of show (d) Continuity : It refers to the timing of the media
impress the general public. insertions.
9. EXHIBITIONS AND FAIRS. 3. Selection of Media Types : Every media plan
In the modern world of business, the importance of requires that specific media types to be selected.
exhibitions and fairs is increasing. Exhibitions are There are a number of advertising media available to
generally organized by groups of manufacturers or the advertiser for advertising the goods etc. These
may be grouped under the following heads:
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1. Press Advertising Media - (a) Newspapers and (b) 5. Allocation of Funds : The planner should than
Magazines and Journals. decide on the amount of funds that would be
allocated to each media type and vehicle.
2. Outdoor or Mural Advertising Media - (i) Posters,
(ii) Advertising Boards, (iii) Sandwich Boards, (iv) 6. Media Scheduling : Media scheduling could be
Electric Display, (v) Vehicular, (vi) Sticker, and (vii) used depending upon the requirements of the
Sky Writing. advertisers.
3. Direct Mail Advertising Media - (i) Circulars, (ii) FACTORS INFLUENCING SELECTION OF
Price-lists, (iii) Booklets, (iv) Leaflets, and Folders, MEDIA.
(v) Business Reply Envelops and Cards, (vi) Gift
Novelties, and (vii) Personal Letters. All advertisers do not use all available media at the
same time. Depending on his own requirements and
4. Broadcast Advertising Media - (a) Radio, (b) financial conditions, the advertiser can use one or
Television 5. Promotional Advertising Media - (i) more type of media. Several factors are to be taken in
Window Display, (ii) ShowRoom, (iii) Exhibitions to consideration before choosing a particular media.
and Fairs, (iv) Interior Display, (v) Trade Shows, (vi) While selecting a media, three levels of decision
Samples, Coupons and Premiums etc. making are required. First the merits and demerits of
a particular media should be kept in mind. Next
6. Miscellaneous Advertising Media - (a) Cinema decision should be about the market to be reached.
and Cinema Slides, (b) Speciality Advertising, (c) Finally the most appropriate media to reach a
Purchase Point Advertising, and (d) Video particular market should be chosen. An advertiser
Advertising etc. must consider the following factors while selecting a
4. Selecting Specific Media Vehicle : Once a particular media.
decision is made on media types, specific media 1. The number of people influenced / Media
vehicles within each medium must be chosen. circulation.
Media Mix: Once the media selection is decided Every medium has a general circulation. Media must
upon, the next step is to determine the mix of the be selected keeping in view the desired market so
media one must use. This will be arrived at by that waste in circulation is minimized. For local
considering the advertising company‟s marketing products, media like posters, local news paper etc
objectives, its target market, media characteristics, should be chosen. Direct advertising can also be
and its matching with the target market. The overall resorted to. For example ,a firm manufacturing sports
advertising budget also influences the nature of such shoes can choose sports journals and magazines.
mix, in addition to the available audience. For
example, to achieve certain advertising objectives, 2. Objective of Advertisement.
one may require to use a mix of 50% newspaper,
25% magazine and the rest 25% television. Each product or service is meant to reach a specific
market or the general public at large. In other words,
Media Buying : The specialist who is the counter part appeals are made either to specific class of
of the media sales representative is the media buyer. consumers or to general public. If the goal is to aid
Most of these specialists work for advertising salesmen, direct mail can be used. In case of mass
agencies, although some are retained by advertisers appeal, news paper, radio etc can be chosen.
and some work for firms of media specialists who
offer media buying services to both advertising 3. Requirement of message.
agencies and advertisers. The media buying specialist The management should consider the mediums
helps to decide what media should be used for a which are most suitable for the presentation of the
product, purchases the media, and controls and message to the market. If a product needs a lengthy
evaluates the performance of the media purchased. message, out door advertisement cant be a good
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media. On the other hand brief message can be attempts to finds out the most suitable media or
printed or can use displays, posters and neon signs. media-mix that would suit the needs of the advertiser.
4. Time and location of buyers. Media Research agencies are specialised agencies
which collect information about various advertising
The advertiser should select the medium which will media (Operations, circulations, popularity, cost etc.)
reach the prospective customers at or near the point and supply necessary information to their clients.
of purchase, where he buys it or makes the buying There are several organisations which conduct media
decision. survey on a regular basis for their clients. They
5. Cost of Media. conduct marketing research according to the
requirements of their clients on payment basis and
The most important criterion of selecting a particular supply them useful data. Such services in marketing
advertising media is the cost. The cost of advertising research are known as syndicated research.
media should be considered in relation to
Audit Bureau of Circulation – ABC- is one of such
A. The amount of fund available. agencies operating in India. All important
publications are the member of this Bureau and
B. Circulation of the media. If small amounts of
nearly every daily, newspaper circulation is audited
funds are available, costly media like TV, feature
by ABC.
film etc can ruled out. Companies having limited
funds can go for press and displays. Television Rating Points (TRPS) - The TRP system
was introduced in July 1986 to provide quick
6. Extent of Competition.
feedback on the viewership of different television
Competition in the field is another consideration in programmes. TRP is conduced by Indian Market
selecting the media. Generally the medias used by the Research Bureau (IMRB). It is conducted in 9 major
Competitors are preferred so as to make an cities of India - Mumbai, Kolkata, Delhi, Chennai,
impressive appeal for the product. Hyderabad, Bangalore, Kanpur, Ahmadabad and
Trivandrum. The TRP system involves collection of
7. Size and Nature of the business. viewership data in respect of TV programmes on a
weekly basis from a panel of sizeable number of
This also plays an important role. A big unit having
respondents.
chains may7 make use of TV, Radio, or News papers
having national network, where as small unit will
prefer local paper or display.
ADVERTISING AGENCIES.
Thus the above factors are generally taken in to
account, while selecting the primary advertising
media. Different media will suit the different
Planning and executing successful advertising
products and services.
campaigns call for people who have specialized
MEDIA RESEARCH knowledge and skills; who are well informed in all
aspects of marketing and consumer behavior, who
„Media Research‟ involves the collection of data are sensitive to people and communication, who
about the various advertising media, surveying know the media and markets, and who are skilled
consumers on their media preferences and habits, and writers , artists TV producers, researchers and
carrying out primary and secondary research on managers. The organization that brings such people
effectiveness of each medium for selling particular together in a single business enterprise is the
types of products. Media research is concerned with advertising agency. The agency provides the
advertising reach, frequency and the effectiveness of environment in which the various specialists can
different media and combination of media (media- interrelate and combine their talents to create
mix) in reaching target audience. Media research
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effective advertising for the agency’s individual Usually the advertiser is preoccupied with several
clients. problems relating to production, managerial,
financial and selling. As a result, the CO can’t spare
The American Association of Advertising Agencies sufficient time and effort in executing the advertising
(AAAA) defines an advertising agency as : “An program. There fore the Co’s find it safe to entrust
independent business organization, composed of the job of advertising to agencies who are in a better
creative and business people, who develop, repair position to perform the job. The need for appointing
and place advertisements in advertising media for an agency for executing an advertisement campaign
sellers seeking to find customers for their goods and arises chiefly due to the following reasons.
services”.
1. Avoid high cost.
So, an advertising agency is an independent
professional organization of specialists to offers Advertising is specialized job. In case the advertiser
services in advertising. Their services include keeps the job of advertising to himself, he has to
preparing advertisements, placing them in suitable employ specialists from various fields like copy
media, undertaking marketing research, an so on. In writers, artists, design staff, market research expert,
short the role of advertising agency is to plan, create, etc on a permanent basis. It may lead to higher cost
produce, and place ad’s for its clients. of advertising.
Besides planning and executing the advertisement However the agency can have these highly paid
campaign, the advertising agency also performs specialists, because their costs are spread over many
several other services like preparing sales promotion advertisers.
materials, advising on marketing management, or
public relations, preparing and distributing messages 2. Get timely and Satisfactory work.
etc. Advertising agencies are usually an assembly of
In advance countries, more than 90% of advertising experts from various fields like photography, art
is handled by agencies. In India also, the agencies are acting, painting, marketing etc. By engaging an
slowly developing. Some of the notable agencies agency, advertisers are able to get good quality Ad
include ‘Lintas”, ‘Silpi Everest Clarion’, work from experts. Further it can be presented timely
‘Impression’,’ Jelita’, and ‘Mudra’. and with out any difficulty by the agency.
The agency has become to represent he core of the The agency can take un biased view of advertising
advertising profession, and “Madison Avenue”, an problem. As they are in close contact with various
area in New York, where several agencies are advertising medias, they are in a position to judge the
located, has become the symbol of advertising in the merit and suitability of these media. Hence they are
world. in a position to judge and recommend the best media.
The advertising agency charges remuneration for its 4. Get Additional Services.
services either on the basis of commission, or fixed Modern agencies also offer the clients many other
percentage on the media bill. In the beginning, services besides advertising. They take up special
advertising agents were simply agents and their main services like designing the packing, labels, plan
job was to sell space in medium. But now a days, advertising program, undertake market research and
they are extending a wide variety of services and they so on.
have organized themselves as a big business house.
5. Conduct Market Research.
NEED FOR AN AGENCY & FUNCTIONS.
Some times agencies conduct market research about
products, consumers and methods of marketing,
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because of availability of competent staff. At times, agency is to have an exhaustive evaluation of
they are able to point out the demerits of products the advertising effects for the benefit of his
and marketing. client.
9. The last but not the least important function
FUNCTIONS OF AN ADVERTISING AGENCY. of the advertising agency is to establish
An advertising agency is am independent Co, effective coordination with client‟s sales
providing a series of services to its customers. force and distribution network to ensure the
long running success of the advertising
1. It helps advertisers, create advertisements, campaign. Each time the advertising agency
and place them with the appropriate media. contacts the client regarding advertising
2. One of the most important services provided media to be used and the number of times the
by an advertising agency is media planning. advertisement is to be repeated after giving
They employ media specialists for their effect to changes, if any, as suggested by the
clients in determining media mixes and advertiser.
schedules.
3. Media selection is another major function of SELECTION OF AN AGENCY.
the advertising agency. In making a media The relationship between the advertiser and his
selection several factors such as cost, agency can’t be undertaken lightly. Each party
circulation, population which it serves, should make a thorough investigation before entering
audiences, nature of the product, types of in to an agreement. Before the advertiser makes a
customers and above all needs of the clients final selection, he should look in to various factors.
should be kept in mind
4. These agencies also provide some other non
advertising services such as ‘marketing
research, public relation, price fixation, 1. Suitability.
package and product designing, distribution The first thing an advertiser has to see is that whether
etc. the agency is suitable to meet its requirements. In this
5. Among other services, agencies study the context 4 basic factors are to be taken in to account.
products, market, competition and the
promotional problems of their clients. A. Competing Accounts;- Those agencies, which are
6. They work for the producers and attempt to working for competitors are generally avoided.
build attractive and favorable image for them.
B. Location:- As for location, most advertisers want
The functions also include media selection,
an agency whose office is located where the
and giving additional services.
advertisers are. This preference is chiefly for
7. Advertising agencies performs some creative
convenience.
function also. They will prepare the “copy’,
illustrations, photographs, and will produce C. Policies:- Policies of the agency should be suitable
the advertisements according to the for the advertiser. For example, suppose it is the
requirements of various Medias. These policy of an agency not to handle accounts below a
functions are performed by professionals fixed amount, (say Rs 1 00 000), that agency is not
(include artists, designers, producers, and available for below that amount.
graphics specialists). Co- ordination with
client’s sales force and distribution network D. Size:- The size of agency is also important.
is one of the important functions of an Usually, larger Co’s are able to provide numerous
agency. facilities along with wide range of skills.
8. Simply drafting advertising copy and handing
2. Facilities.
over the same to the media is not enough.
The next major function of the advertising
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Before choosing an agency, the advertiser has to look provide facility according to his requirement and
into his requirements and see that whether a which suits its budget.
particular agency is in a position to offer the required
service satisfactorily. The advertiser should also see, Advantage of Using Agencies
how efficiently the different departments of the 1. The marketer gains a number of benefits by
agency can perform the task. employing agencies. An agency generally has an
3. Imagination. invaluable experience in dealing with various
advertising and marketing issues.
The agency must possess profound knowledge and
rich and meaningful imagination in order to take up 2. The lessons which agency learned in working with
the campaign. Imagination enables to develop the other clients are useful inputs for the marketer.
right campaign for clients to solve their problems. 3. An agency may employ specialists in the various
4. Records. areas of preparation and implementation of
advertising plans and strategies.
Much is revealed about an agency, by its records. If
an agency is really popular and reliable, it will have 4. The personnel are not members of the marketer‟s
maximum number of clients. The accounts indicate management team. They bring objective and
their past performance, and experience. unbiased viewpoints to the solution of advertising
and other marketing problems.
5. Reputation.
5. The discounts that the media offer to agencies are
Usually an advertiser is concerned with the also available to advertisers. This is a strong stimulus
reputation of the organization, which will be creating to them to use an agency, for the media cost is not
his advertising. The information relating to reputation much affected thereby.
can be collected from various sources like media,
clients etc. 6. The company normally does not have as many
types of specialists as a large or medium-sized
6. Management - Another important advertising agency has because an agency can spread
consideration is the management of the agency. Here the costs or its staff over many clients. It can do more
the concern about management centers around the for the same amount of money.
caliber, quality, stability and background. The
experience of top executives is also of considerable 7. The company can also get an objective, outside
importance. viewpoint from an agency, assuming that the agency
representatives are not acting as “Yes man” in order
7. Timeliness. to keep the advertiser‟s account.
The success of every campaign depends to a 8. A related point is that the company can benefit
considerable extent on its presentation at an from the agency‟s experience with many other
appropriate time. In fact much time, effort and products and clients.
money will go waste, if the advertisements fail to
appear at the right time. There fore while choosing a 9. Another advantage is that agency feels a greater
particular agency, timely delivery of goods pressure than the company‟s own department to
( advertisements) should be given due importance. produce effective results. The relations between an
agency and a client are very easy to terminate; but it
8. Rates Charged : is difficult to get rid of an ineffective advertising
department.
The advertiser considers the rates charged by the
agency. Normally, the rates depend on reputation, 10. The manner in which agencies are compensated,
facilities provided techniques adopted etc. Therefore, the use of an agency may not cost the advertiser a
an advertiser will select such agency which will single paisa
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ADVERTISING AGENCY ORGANISATION. 2. Accounts Service.:- Account management is
handled by people with titles such as A/C Executives,
While many agencies offer the same services, they do A/C Supervisors etc. they are assigned full time to
differ considerably in their style of operation. the clients. They represent the agency to the clients.
Agencies organize themselves in different ways. The They organize an control all the work from initial
organization structure differs from agency to agency planning to execution.
depending upon functions performed and size of the
business. 3. Marketing Service:- Media, research and
sales promotion are grouped under marketing
Because of the highly personalized nature of the services. The media department is staffed with
advertising agency business, it is difficult to say analysts, planners etc. They study about changes in
which type of organizational structure would be media audience, cost and competitors spending. They
suitable for it. Many agencies are organized also plan the schedule of advertising, buying tv
according to the personal preferences of the times, and radio times, and negotiate with magazines,
management. Most large and medium sized agencies news papers and others.
followed one of the two systems, the group system
and the departmental system and some combine The research department is involved in agency
them. planning, testing the product concept, defining target
market, developing marketing and advertising
1. Group System : Under this system the writers, strategies, test marketing and measuring the results.
artist, media planners, buyers and other specialists
are assigned to a group of accounts. All are under the Sales promotion people manage and plan the
general direction of an account executive or group promotion of goods. Typical consumer promotions
head. are sampling, couponing, premiums and organizing
contests. Trade promotions include trade allowance,
2. Departmental System : Under the departmental co-operative advertising, displays etc.
system, same type of specialists are grouped in the
same department. For instance, all writers in the copy 4. Administrative Service. :- Advertising
department, all artists in the art department and so on agencies are, formed to earn profit and like any other
organization, must be well managed. There fore in
addition to keeping the agencies accounts, there are
people who plan, and control the agencies financial
aspects, revenues and expenses. They are concerned
with the management of advertising agency.
METHODS OF REMUNERATING AN
ADVERTISING AGENCY
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fee or percentage of full service agencies, and as such and expenditure on advertising during a specified
most of them convert into a full service agency or period. It states the proposed advertising expenditure
merge with other agencies to provide a wide range of and informs and suggests the Co’s management of
services. the anticipated cost of executing the advertising plan.
The following factors are to be considered in
determining the budget size.
5. Mega agencies A significant of 1980’s is the
1.Size and Extent of Market.
development of mega agency. Agenciesworldwide
merge with each other to serve their clients in much The size of the budget depends on the decision “how
better way. It was in1986, Saachi & Saachi, a many people are to be reached”. It costs more to
London based agency who started the movement and reach large, widely dispersed national market, than
at present it is the third largest agency network in the small, highly concentrated local market. A single 30
world. second commercial in an American TV costs $
70,000 to $ 1, 00,000. Only advertisers with
6. The Specialists Agency - There are some agencies
sufficiently large and widespread market can afford
who undertake advertising work only in certain
such large expenditure.
areas.there are agencies that specialize only in
financial services or only in publicity or onlyin point- It costs more to reach a broad, widely spread market
ofpurchase material etc. for instance Soubhagya than a well defined market segment. To reach widely
advertising agency concentrate on specialized in spread market requires TV, News paper, &general
financial advertising. magazines, which are much costly. Reaching smaller
segments require less costly, specialized magazines
and local radio involving less coverage.
A small margin per unit may be adjusted by a large Objective and Task Method : Objective and Task
volume of sales. Because their volume of sales is so Method for framing the advertising budget is
high, soaps and detergents are heavily advertised. considered to be the most desirable and realistic
method. It is also known as „researchobjective
6. Competitive Spending. method‟. It envisages appropriation of advertising
Generally a brands share of advertising is likely to be funds on the basis of objectives to be achieved and
close with the competitors advertising. Spending the task involved therein. It means advertising
some times affect the advertising success, and how objectives are set for the coming budget period and
much competitors spend; should some times affect a the cost of achieving these objectives are calculated
Co’s budget. in details in terms of task to be performed, the total
of which indicates the appropriation level. In short,
7. Financial Resources. this method includes :
This is the most important factor which affects an (i) Defining advertising objectives as far as possible
advertising budget. The advertising cost to maintain a in quantitative terms. (ii) Outlining and listing
national market can be afforded by only a few firms, tasks to be performed in achieving these
who have tremendous financial resources. The scale objectives. (iii) Estimating the cost of
of advertising, like the scale of manufacturing, must performing these tasks.
be adopted to the funds available. 4. Return on Investment Method : In this
method money spent on advertisement is
considered as an investment and not an
METHODS OF FRAMING THE ADVERTISING expenditure. It is an investment in the sense
BUDGET that a certain return in terms of profit is
expected under this method. The advertising
The popular methods which are commonly used in budget is prepared; under this method by
determining advertising appropriation or for framing taking into account the increased profits
the advertising budget are as follows : generated by an increase in sales and
goodwill on account of advertising. If sales
1. Affordable Method : In this method one has to
and profits are higher, the excess may be
find out what the company can afford in a given
assumed to the result of advertising.
business situation. Particularly, those companies
5. Judgement Method : Judgement method of
which have limited resources use this method. When
framing an advertising budget is based upon
funds availability is a constraint, a limited fund is
the judgement of experienced managers of the
company. This method is also referred as the
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„arbitrary method‟ because it is based on the A large portion of Budget is spent for use of media.
arbitrary thinking of some experienced Decisions on what type of media to use and what
managers only, this not based on any specific media within these type etc requires
scientific lines. This method involves no specialized skill and experience. What is sought in
clerical or statistical or field work. It is solely media selection, is the delivery of effective
based upon the experience and judgement of advertising messages to the greatest number of
some old and experienced managers. They prospects at the lowest possible cost. These cover
frame the advertising budget considering all cost, coverage, and nature of message.
situations, i.e., objectives, anticipated
behaviour of the customers and the
competitors, market to be covered, types and Creating Advertising Messages.
cost of media etc.
6. Fixed Sum Per Unit Method : This method is Advertising messages are at the core of advertising
similar to the percentage of sales method planning. The value of an excellent message is much
except that a specific amount per unit is higher than an ordinary message and at the same time
appropriated rather than a percentage of the “cost’ will be more or less same. Thus a good
value of sales. The advertising appropriation message only can achieve greater return on the
may be based on units of a product sold in the amount spent.
previous period or on a forecast of unit sales
in future period. This method is most suitable
in advertising appropriations for industrial SIZE OF ADVERTISEMENTS.
and durable consumer products.
4- Advertisement should be truthful avoid distorting (ii) Selling : Selling refers to sales value. The claim
facts and misleading the public by means of whatever it is - must be strong enough, important
implications and omission. enough, believable enough to convince consumers
that it is absolutely in their interest to purchase the
5- No advertisement should be permitted to contain product or brand in question.
any claim so exaggerator as to lead inevitably to
disappoint in the mind of public. Special care is (iii) Proposition : Proposition is a promise made by
called for in the advertisements related with illness, the advertiser that the product, if purchased, will
investment of money, invitation to lotteries, satisfy the needs of the consumers. The proposition
publication of employment notices requiring fees for should be strong enough to move the mass millions,
application forms, prospects, etc. i.e., pull in new and old customers to your product or
brand.
6- Methods of advertising designed to create
confusion in the mind of consumers as between ADVERTISING APPEAL
goods of one make and another.
An advertising appeal is a statement designed to
7- Advertising should endeavor to gain the goodwill motivate a person to act. The appeals which the
of public on the basis of merits of good, or services advertiser makes usually focus the buying motives of
advertised. the consumers. The following are the essentials of a
good advertising appeal :
8- Indeed, vulgar, suggestive, repulsive or offensive
theme or treatment should be avoided in all 1. It must be Communicative : An advertising appeal
advertisements. must successfully tell what it wishes to convey. As
far as possible, the message must be communicated
9- No advertisement should offer to refund money in a simple language.
paid.
2. It must have a Good Theme : A good theme
10- The use of national emblem is prohibited by law means there must be something which has to be told
in advertisements, trade marks, etc to the prospects. Only meaningful words become
effective in conveying the story.
3. Human Instincts Appeal : Human beings are 2. Media Mix : It enables to determine the proper
guided by such instincts as: self-preservation, media mix that can be employed to run the ad
parental care, food, clothing, curiosity and so on. campaign. Proper media is selected to reach more
When a copy makes proper appeal to the appropriate effectively to particular groups of potential
instinct, it will create a desire in the minds of the customers.
reader to buy the article. For example Baby food can
3. Unique Selling Proposition (USP) : Advertising
be sold more easily by making an appeal to the
research helps to discover USP that can be
parental instinct and the natural affection of the
effectively presented in the ad.
parents for their children.
4. Costly Errors can be Minimised : Advertising
4. Physical Sense Appeal: Appeals to physical
research can prevent the advertiser from making
senses evolve greater response. For example, food
costly mistakes. It can be overbudgeting, selecting
and beverage products are sold by inciting taste
wrong media, directing the ad message to wrong
appeal. During summer, cold drinks can be
audience etc.
effectively advertised with pictures of cool,
refreshing summer drinks,. 5. Budget Amount : Advertising research also
enables to determine the proper amount that can be
5. Positive Appeal: Appeals that follow positive
effectively spent on advertising. Proper budget
approach are called positive appeal. They create
amount can be allocated and utilised using the ad at
situations under which prospects are likely to attain
the right time and at the right frequency.
happiness and peace of mind with the possession of
advertised goods. With a view to arouse product 6. Layout, Copy and Illustration : It can help to
interest, the following positive emotional appeals are develop effective layout, copy and illustrations that
used e.g., appeals to comfort, healthy, living, family would be most effective in gaining consumer
affection, pleasure, personal appearance, sympathy, attention and in inducing effective readership of ad.
love, pride etc. These appeals are positive because
they create awareness under which prospects are 7. Appeals in Advertising : Through proper conduct
likely to attain happiness and the mental satisfaction of consumer research, one can understand their likes
of possession of materials. and dislikes, tastes and preferences. The study can be
made of their buying motives. Accordingly
6. Negative Appeal : Negative appeals are those appropriate appeals can be developed to stimulate
which follow negative approach. They normally demand among the various groups of prospects.
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8. Competitive Advertising : Proper advertising list of good qualities to be possessed by an
research can help to develop not only creative ads but effective advertisement. The researcher has to
also competitive ads. To face the challenges posed by compare the advertisement with the checklist and
competitors claimed in their advertisement and other tick the items present in the advertisement copy.
marketing efforts. As it is a pretest method omissions can be
included in the copy before release of the
advertisement.
PRE-TEST AND POST-TEST OF ADVERTISING b. Consumer Jury method - This method
COPY essentially involves the exposure of alternative
The main purpose of every advertising is to arouse advertisements to a sample of jury; of prospects
the interests of the people in the firm‟s product. and the securing of their opinion and reactions to
Advertising copy research is done to see how will an the advertisements.
advertisement succeeds in attracting the attention and c. Sales Area Test - Under this method
stimulating the desire and action of the people for advertising campaign is run in the markets
whom it is made. selected for testing purposes. The impact of the
Copy testing is a tool involving a procedure where campaign is evaluated by actual sales in the
the effectiveness of an advertisement is measured selected markets. The market with high sales is
before it appears in its final form, during and after its considered the best market for effective sales
exposure to the audience to determine whether and to campaign. In other markets suitable changes are
what extent, it has accomplished its assigned task. made in the advertising campaign
BUYING MOTIVES.
(2) Recall or Impact Test – The recognition test
measurers the stopping power of the advertising but
goes not tell us what the readers understood or
retained of the advertisement. The recall test is A sale is usually made in the minds of the buyers, but
designed to measure the impression of readers or not in the minds of the salesmen; or not at the shop.
viewers of the advertisement. If a reader has a When the customer wants to buy, he is motivated or
favorable impression of the advertisement, he will induced by some reason. There fore it is essential for
certainly retain something of the advertisement. The the sales men to know what induces the buyer to buy
measures of interest would be obtained by and how he can be induced to buy by making an
interviewing the readers or viewers or listeners, days appeal to his buying motives.
after the advertisement or commercial is appeared in
the newspaper, or on T.V.
The urge or motive to satisfy a desire makes people
Psychological Analysis – The whole process of buy goods or articles. Behind every purchase, there is
advertising is psychological in character. It is a buying motive. Buying motive is the thoughts,
therefore, natural to apply some psychological tests feelings, emotions and instincts which arouse in the
to measure the effectiveness of the advertising. Four buyer, a desire to buy an article. The buyer purchases
psychological testing techniques are most commonly certain products induced by certain mental and
used – (a) Tests of readability and comprehension; economic factors. So buying motives are the
(b) Tests of Believability (c) Attitude tests; and (d) considerations which provide the impulse to buy and
Triple Associates Test. induce action or determine choice in purchase of
3) Concurrent Methods Under this method, tests are goods or services.
conducted while the consumers are exposed to According to Prof D.J.Duncan, “ buying motives are
different types of media. For instance, a magazine those influences or considerations which provide the
reader may be observed while reading the magazine. impulse to buy, induce action or determine choice in
Which carries an advertisement? The concurrent purchase of goods or services”. It is necessary for the
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salesmen to study the buying motives of his these reasons, a customer is inclined to buy the
customers. This would help him to arouse favorable product.
attention of the consumers and finally a sale.
Sufficient knowledge of buying motives helps the EMOTIONAL BUYING MOTIVES.
salesmen to guide the customer in the right way. The consumer at times, is driven by emotions, while
CLASSIFICATION OF BUYING MOTIVES. buying certain products. In such cases the consumer
does not bother to make intelligent or right decision.
Buying motives are numerous and so also their He is generally carried away by emotions. The
classification. following are certain examples.
The human psychology plays an important role in 1) Attention towards the product
selling. Since selling process and salesmanship deals 2) Developing interest
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3) Increasing knowledge about it the prospect realizes the need for the product to
satisfy his wants.
Considering the suitability of the product.
6. Handling objections: The salesperson should clear
5) Desire to possess an article all doubts and objections without entering into
controversy and without losing his temper. The
Considering price of the product etc. salesperson should convince the customer that he is
making the best use of his money by purchasing the
This mental process is some times described as
product. For this purpose, the salesman should prove
‘AIDAS’ theory of selling. the superiority of his product over the competitor’s
products. He should not lose patience if the prospect
puts too many queries and takes time in arriving at
STEPS IN EFFECTIVE SELLING
any decision.
Most selling program view the selling process
7. Closing the sale: The salesman should not force
as consists of several steps that the sales person must
the customer but let him feel that he has made the
master. These steps focus on the goals of getting the
final decision. He should guide the customer in
new customers and obtain orders from them. The
making the choice without imposing his own view.
process of personal selling consists of the following
He should assure the customer that he has made the
steps
right choice. Sales should be closed in a cordial
manner so that the customer feels inclined to visit the
shop again. In closing the sale, the article should be
1. Pre-Sale Preparation: The first step is the selection,
packed properly and handed over to the customer
training, and motivation of sales persons. The sales
with speed and accuracy.
persons must be fully familiar with the product, the
firm, the market and the selling techniques. They
8. Post-sale follow-up: It refers to the activities
should be well informed about the competitor’s
undertaken to ensure that the customer is satisfied
products and the degree of competition. They should
with the article and the firm. It helps to secure repeat
also be acquainted with the techniques of effective
sales, to identify additional prospects and to evaluate
selling and the policies of the firm.
salesman’s effectiveness.
2. Prospecting: It refers to searching out prospective
buyers who have the need for the product and the
ability to buy it. Social contacts, business
associations and dealers can be helpful in the
identification of potential buyers.
SALESMANSHIP
3. Approaching: Before calling on the prospects, the
sales person should know their number, needs,
Salesmanship is an art of influencing another person
habits, spending capacity, motives, etc. After this, the
for the object of persuading him to buy specific
salesperson should approach the customer in a polite
product. It may be regarded as the process of winning
and dignified way. He should make the customer feel
the confidence of consumer. According to
that he is getting proper attention of the salesperson.
Whitehead. “t is a method of arriving at a common
The salesperson should be very careful in his
point of view with the prospect in regard to the
approach as the first impression lasts for long.
desirability of some article, service or idea.”
Salesmanship may also refer to convincing a
customer by certain technique and he is really
4. Presentation: The next step is to gain customer’s
persuaded for buying the particular product.
attention. For this purpose, the salesperson has to
present the product and describe its features in brief.
Significance of Personal Selling or Salesmanship
5. Demonstration: In order to maintain customer’s
Personal selling is a promotional tool and an element
interest and to arouse his desire, the salesperson must
of promotional mix which occupies a pivotal role in
display and demonstrate the product. He has to
the distribution of goods and services to the existing
explain the distinctive qualities of the product so that
and prospective buyer. A salesman is a friend and a
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guide of the consumer and a supporter and an aid to 2. As it wins the buyer's confidence so it helps
the producer. A salesman helps the producer and to make regular and permanent customers.
consumer in the following ways: 3. The person who is engaged in convincing the
public desirability of a specific product is called
1) It is a Flexible tool salesman. He informs the customers about the
Personal selling is a flexible tool in promoting sales usefulness of commodity with a view to including
and can adopt to the need of specific buyer. Salesman him to buy the goods.
can present his ideas or message to fit the needs of 4. He establishes the goods will of firm in the
the buyer. His presentation is different in each case market. So the sales volume may easily be increased.
tailored to suit the buyer. He can observe the 5. He constantly observes the fashion, taste, like
customer's reaction to a particular sales approach and and dislike of customers and informs the producer
makes necessary adjustment in his way of about their choice.
presentation right o the spot. 6. He helps to establish close relationship
between the manufacturer and consumer.
2) It Involves Minimum Wasted Efforts
In personal selling, the salesman directly attacks the Knowledge, Skills and Qualities required in
target market and concentrate on the prospective salesmanship
customers. A salesman does not waste his efforts if
he thinks that the person to whom he is talking is not 1. Personality
a real prospect.
Personality’ refers to the dynamic force of a person
3) It Results in Actual Sales which attracts and impresses others. Similarly, “Sales
Personal selling is complementary to advertising and Personality” or ‘Personality of Salesman’ includes
promotion technique. Advertising and promotion his appearance, his characters, his mannerisms, his
techniques can only attract attention of the customers talk and the general impression which impresses and
and arouse desire to purchase the goods. They simply convinces the prospects. By using these qualities and
create demand. Personal selling converts that demand abilities skillfully, the salesman is able to impress the
into actual sale by persuading the people to buy the customers favorably.
product. A salesman answers the doubts of the
prospective buyer and convince aim to purchase the 2. Sound health
goods. A salesman should posses a sound and physique in
order to become efficient. A salesman who is not
4) It Provides Feedback healthy cannot maintain a pleasing appearance. He
Advertisement provides information about the will also not be able carry on his duties efficiently.
product and the producer but does not provide any
information about the tastes and mood of the 2. Good posture
consumers. The personal selling provides two way Good posture enhances the appearance and
communication between the buyer and seller. Apart personality of the salesman. A salesman should
from providing information to the buyer about the maintain an alluring posture, i.e. he should stand
product and producer, it provides knowledge about erect or sit erect while meeting a customer. It makes
the tastes, habits, and attitudes of the prospective a good impression on the customer.
buyers. Any complaint about the firm or its product 3. Pleasant voice
may be prospective buyers. Any complaint about Voice is the index of one’s own feelings than the
the firm or its product may be registered with the facial expression. The quality and the tone of the
salesman as the basis, the company can determine the voice also have its influence on the hearer. The
strengths and weaknesses of the marketing salesman should have pleasant, clear and forceful
programme. voice.
4. Good appearance
Importance of Salesman Ship A good physical appearance is a big asset for
1. Salesmanship helps to create demand for new salesman. The first impression on the customer is
products or new brands. It influences to change in created by the appearance of the salesman. A good
patronage from one source of supply to another appearance generally gives more confidence to a
which results concentration of purchases of specific salesman and he is able to convince the customers
product. more easily.
5. Cheerfulness
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Cheerfulness is the greatest virtue of a good 14. Enthusiasm
salesman. Everyone wants to be with persons, who A salesman should be enthusiastic; otherwise he will
are cheerful. If the salesman is cheerful, possesses a fail to create interest in the minds of the prospects.
good health, vigour and a rich sense of humor, then Enthusiasm creates assurance in the minds of the
he can attract large number of customers. buyers for a salesman’s products and services.
6. Imagination 15. Tact
It is an important consideration which detects the A salesman should be a man of tact. Tact means
exact need of the customers. This quality helps the doing the right thing at the right time, in the right
salesman to understand the problems of customers in way. It further includes mental awareness of the
his position. But it is depressing to see in India that salesman to tackle all kinds of situations. However,
many salesmen have absolutely no imagination. tact should not mean cheating or cunningness.
7. Alertness 16. Patience and tolerance
Alertness refers to active sensitivity to the situation Patience and tolerance take a very important place in
before oneself. It is nothing but presence of mind as the development of a salesman. A salesman to
to what to say, how to say and on what occasion. It become successful must be extremely patient in
consists of keen power of observation and common dealing with a buyer. In no case he should lose his
sense to take correct decisions quickly. temper, but to show a spirit impatient and angry, but
8. Resourcefulness a salesman should remain calm and cool.
It is a mental ability to think and find out alternatives.
It includes devising new approaches to make people 17. Effective speech
do what you want them to do. Resourcefulness has A salesman should be a good conversationalist.
great role to play in salesmanship. Ability to speak correctly and clearly impresses the
9. Initiative customers favourably. The sales talk should be clear,
Initiative is the ability to work on his own without pleasant and persuasive, but not like the situations;
any guidance from anybody. It is very useful quality each situation may have to be treated in a special
for success in dealing with customers. Of course, in manner.
early stages a salesman has to work under the 18. Honesty
supervision and guidance of senior salesman. But in The salesman should be extremely and thoroughly
course of time, he has to depend upon himself and honest. An honest salesman is liked by every
take independent decisions. customer. While dealing with a customer, the
10. Observation salesman must be true and frank about the products
Power of observation is another important quality of he wants to sell. He should not misrepresent or
a salesman. A good salesman must be a keen exaggerate facts. If a salesman cheats a customer,
observer. He should observe the changes in style, that customer is lost forever.
fashion of people, activities of rivals, Government 19. Integrity
policies, general attitude of customers and other Integrity of a salesman is an important trait in his
things. character. Integrity means uprightness of character,
11. Self-confidence moral soundness, good behavior, honesty, fulfillment
Self-confidence is another important quality, which of promises, and strength of character. A salesman
every salesman should possess. The salesman should who does not have integrity of character will not be
keep Self-confidence both on himself and the goods in a position to create good impression upon his
he sells to the customers. A salesman lacking Self- employer, fellow salesman and customers.
confidence can not convince his customer properly or 20. Loyalty
overcome his objections. Loyalty means willingness of obey. Loyalty of a
12. Memory salesman can be classified into four groups :(i)
Sharp memory is another important attribute of a loyalty to the organization, (ii) loyalty to the
salesman. Sharp memory refers to capacity to customers, (iii) loyalty to the fellow-workers.
recognize this customer, recall his past interviews 21. Reliability
with them, recalling their requirements and A salesman should be trustworthy and reliable. He
suggestions. should take his work seriously and with
13. Sociability responsibility. He should not give exaggerated
It refers to ability of salesman to meet the public and promises. He must be truthful in his statements and
make friends with them. A true salesman must be an honest in his dealings.
extrovert, i.e., a man who likes mixing with people in 22. Sincerity
every type of situation.
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Sincerity is another good quality of a successful 5. Knowledge of customers: In order to be
salesman. A sincere salesman attends his customers successful, the salesman must use the right appeal
sincerely and explains them all the merits and and approach. He should be able to understand the
demerits of the product. He also attends to the prospects correctly and quickly and to motivate and
customers promptly. A sincere salesman does not win them permanently. He should, therefore, have
face any difficulty to achieve his target. complete knowledge of the nature and type of
23. Maturity customers (their age, location, sex, income,
Maturity refers to balance of mind. A salesman education, etc.) and their buying motives (low price,
should be matured. He should accept gracefully both convenience, prestige, fashion, etc).
criticisms and praises. Equal weight age should be
given to both for and against. Maturity compels a 5. Knowledge of selling techniques: Above all, a
salesman to think before he takes any action. salesman should be well-versed in the principles and
techniques of salesmanship. He should pay undivided
attention to the customer, be courteous and
Requisites of Effective Salesmanship sympathetic towards customers, never loose patience,
consider customer as the king, serve the customer in
Success in personal selling depends u [pm the the best possible manner, etc.
salesman and the framework in which he works. In
order to practice effectively the highly skilled
profession of salesmanship, wide knowledge and Training of Salesmen
experience is necessary. To be effective, a salesman
should have knowledge of the following types.
The purpose of sales training is to achieve improved
1. Knowledge of Self: The overall personality of the job performance. In the absence of training, job
salesman is very important. To make the best use of performance improves with experience. Training
his personality, a salesman must continuously assess substitutes for, or supplements experience, so sales
himself and analyse his qualities in the light of the personnel given training reach high job performance
requirements of his job. Such assessment will make levels earlier. In most, companies, the rate of sales
him fully aware of his strength and weaknesses. He personnel turnover is higher for new personnel than
should constantly try to overcome his weak points for experienced people- often new sales personnel
through training and experience. find themselves unprepared to perform their jobs
satisfactorily, become discouraged, and leave the
company.
2. Knowledge of firm: Salesman should be fully
conversant with the history of the firm. He should Content of training programme varies from company
have a thorough knowledge of the objectives, to company, because of differences in products,
policies, standing and organizational structure of his markets, company policies, trainees' ability and
firm. Such knowledge will help him to utilize the experience, organizational size, and training
strong points of the firm in personal selling. philosophies.
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should know the important characteristics of participation. Its main weakness is that teaching is
competitors' products and their uses and applications. emphasized more than learning. But a lecture can be
They should know the strengths and weaknesses of effective, provided that the lecturer is able and
competitive products. Thus informed, salespersons enthusiastic and uses examples, demonstrations, and
gain a decided advantage. visual aids. Compared with other training methods,
the lecture is economical in terms of time required to
cover a given topic.
2. Sales Technique.
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explaining various techniques and approaches that other motivational factors, such as the
might be used effectively. Next, accompanied by the intangible feeling of belonging to the sales
pupil, the trainer makes actual sales calls, discussing team.
each with the trainee afterward. Then, under the 3. Third, the plan is fair-it does not penalize
coach's supervision, the trainee makes sales calls, sales personnel because of factors beyond
each one being followed by discussion and appraisal. their control-within the limits of seniority and
Gradually, the trainee works more and more on his or other special circumstances, sales personnel
her own, but with continuing, although less frequent, receive equal pay for equal performance.
coaching. 4. Fourth, it is easy forsales personnel to
understand- they are able to calculate their
6. Correspondence Courses ownearnings.
5. Fifth, the plan adjusts pay to changes in
This method is used in both initial and continuing performance.
sales training. In the insurance field it is used to 6. Sixth, the plan is economical to administer.
acquaint new salespeople with industry fundamentals Seventh, the plan helps in attaining the
and to instruct in basic sales techniques. Companies objectives of the sales organization.
with highly technical products and small but widely A sales compensation plan has as many as four basic
deployed sales forces use correspondence courses to elements:
acquaint experienced salespeople with new product (1) a fixed element, either a salary or a drawing
developments and applications. This method is used account, to provide somestability of income;
also to train non company sales personnel, such as
distributors' salespersons, to improve their (2) a variable element (for example, a
knowledge of the manufacturer's product line and commission,bonus, or profit-sharing arrangement), to
selling techniques. Few companies use this training serve as an incentive;
method exclusively.
(3) an element covering the fringe or “plus factor”,
such as paid vacations,sickness and accident benefits,
life insurance, pensions, and the like;and
MOTIVATION OF SALES PERSONNEL
(4) an element providing for reimbursement of
Motivation is derived from the Latin term expenses or payment of expense allowances. Not
‘movere’ meaning ‘to move’. Motivation stimulates every company includes all four elements.
the movement of an individual. It can be defined as a Management selects the combination of elements that
dynamic process set in motion by creating or best fits the selling situation
arousing internal needs that activate goal-directed
efforts and determine their intensity and persistence. TYPES OF COMPENSATION
In simple words motivation is goal-directed
behaviour, underlying which are certain needs or 1. Direct: The direct compensation package for
desires. It is generally regarded as the process of a salesman is more or less the same in all companies.
getting people to work towards the achievement of an A company employing technical person as salesman
objective. for selling, say, industrial or electronic products may
offer a high basicsalary. Sometimes, when the
Requirements Of A Good Sales product is in the introductory stage the function of
Compensationplan the salesman is to create new markets and make
customers understand how to use the product as in
A good sales compensation plan meets seven the case of a new consumer durable product like
requirements. vacuum cleaners of a new electronics products used
by certain industries; the basic salary of the salesman
1. First, it provides a living wage, preferably in
may be on the higher side.
the form of a secure income.Individuals
worried about money matters do not The direct compensation package of a salesperson
concentrate on doingtheir jobs well.
2. Second, the plan fits with the rest of the thusconsists of the basic pay plus allowances
motivational program-it does not conflict with covering all travel andentertainment expenses etc.
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In case, the salesman has to stay overnighthis properly connected and linked with the reward and
boarding and lodging allowances are also provided recognition serve as source of motivation to the
for. The basicsalary and other allowances are revised salesperson.
from time to time.
(e) Sales targets or quotas- If a sales target or quota is
Financial motivators to be effective in motivating a salesperson, it must be
regarded as fair and attainable and yet offer a
(i)Salary plus commission on sales above a certain challenge to him. Because the salesperson should
amount-Herein, the salesman receives direct salary regard the quota as fair, it is usually sensible to allow
and a commission in addition to it. him to participate in the setting of thequota.
(ii) Salary plus share in profits- This is not a very (f) Sales contest- The sales contest is an important
prevalent method. It is generally suggested for a tool to motivate salesperson. The purpose of the sales
company selling high value items with high profit contest varies widely. It may encourage a higher
margins. level of sales in general, to increase the sales of a
Non-financial motivators slow-moving product or to reward the generation of
new customers. It provides an incentive to show
(a) Training programme- Most companies offer better performance and secure more satisfactory
training programmes for their salesmen. These results.
programmes enable interaction between salesmen of
different territories as well as provide them with (g) Sales conventions and conferences- These are the
latest developments in the field. These training devices of group motivation. They provide
programmes are viewed as an indirect benefit by the opportunities for salesperson to participate, gain
salesmen. social satisfaction and express their views on matters
directly affecting their work. They promote team
(b) Awards, recognitions and prizes- In addition to work, dissolve social barriers, inspire and raise
training programmes the award recognitions and salesperson’s morale. Most of the companies in India
prizes can also be used to motivate employees. Some are now-a-days adopting this method to motivate
of the waysto extend recognition and honour to their salesforce.
salesperson include conferment upon the title of
“salesman of the month/year”. Congratulation (h) .Positive affect- The positive affect method is also
telegrams from members of top management, sales an important techniques for motivating the sales
trophies, offering membership of social clubs, force to their best. The proper application of praise,
mention in company newsletter, certificate etc. positive feedback, and human warmth and
Award ceremonies held in exotic locations like hill understanding can impel others to perform up to their
stations or five-star hotels, which are presented capabilities. This must be done in a genuine way and
through foreign dignitaries or important people in the not be perceived as overtly-self serving.
field, provide salesman with the much needed (i) Leadership style of the manager- Leadership style
recognition. of the manager plays an important role in motivating
(C) Meeting between manager and salesforce- These the salesperson. Inspirational leadership, which refers
are highly regarded by sales managers in the to influence through referent power. Identification or
motivation of their sales teams. This provides charismatic charm is an important tool in the
opportunity to managers to meet theirs alesforce in motivational strategy of the management.
the field, at head office and at the salesmeetings (j) Freedom to work- In order to perform the onerous
/conventions. duties and responsibilities, the salesperson must be
(d) Clarity of job- Clarity of job and what is expected given a reasonable amount of freedom and discretion
from the salesperson is a great motivator. The in performing their job. Discretion and freedom may
objectives when duly quantified and well defined, be accomplished by allowing salesperson to develop
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their own call patterns, more control over the types of agreement to place a particular product or brand. The
promotional packages that are offered to their likely scenario in this instance involves some
customers etc. Freedom or autonomy satisfies the member of the cast or crew selecting a product to use
psychological needs and is like power pay (which is in a scene because it will enhance the scene though
are ward), making the job of salesperson more the product itself may not be seen or presented in a
important in the organization. favorable light.
(k) Reward and recognition- Although sales quotas, • The placement is arranged and some of the product
sales contests, conventions and conferences have serves as compensation - .This type of placement a
positive carryover effects, these are short lived particular product is shown in the Movie/ Serial and
techniques of motivating salesmen. On the other no extraamount is paid for that. The product itself
hand reward and recognition on salesperson serves as compensation
accomplishments are more enduring and relatively
economic methods of motivation. • The placement is arranged and there is financial
compensation. - In this type of product placement the
(l) .Persuasion- One of the more common and company has to pay for the placement apart from the
recommended forms of inducing high levels of product.
motivation is through persuasion. In this situation,
managers use rational arguments to convince Product placement in movies -
salesperson that it is in their own best interests to act Product placement is an investment for brands trying
in preferred way. Persuasion has the advantage of to reach a niche audience, and there are strong
getting people to conclude that their actions were reasons for investors to expect that film product
performed out of their own free will. placement will increase consumer awareness of a
particular brand. Eg The 1995 film GoldenEye was
the focus of a highly successful BMW campaign.
Product Placement, or Embedded Through product placement, companies hope that
Marketing. movie watchers will take note of the products used
by the characters, and therefore think more strongly
about using the products themselves.
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Readability refers to how easy it is to read the text as
a whole. Some fonts or font styles, for instance sans-
serif fonts, are considered to have low readability, Lithography
and so be unsuited for large quantities of prose. Lithography (from Ancient Greek, lithos, meaning
Readability also may be compromised by letter- "stone", and graphein, meaning "to write") is a
spacing, or word spacing, that is too tight or too method of printing originally based on the
loose. It may be improved when generous space immiscibility of oil and water. The printing is from a
separates lines of text, making it easier for the eye to stone (lithographic limestone) or a metal plate with a
distinguish one line from the next, or previous line. ball grained surface. It was invented in 1796 by
Poorly designed typefaces and those that are too German author and actor Alois Senefelder as a cheap
tightly or loosely fitted also may result in poor method of publishing theatrical works. In this
legibility. Underlining also may reduce readability by printing process, the artist draws the desired image
eliminating the recognition effect contributed by the on a flat stone surface, using a greasy litho crayon
descending elements of letters. or a greasy black ink. Limestone is usually the
The aesthetic concerns in typography deals not only preferred surface for fine art, but zinc and aluminium
with the careful selection of one or two harmonizing plates are also used. When the drawing is completed,
typefaces and relative type sizes, but also with laying it is 'fixed' with an etch (a heavy syrupy mix of gum
out elements to be printed on a flat surface tastefully and a small quantity of nitric acid) to prevent the
and appealingly, among others. For this reason, grease from spreading. In addition, the nitric acid
typographers attempt to observe typographical opens the pores of the stone, enabling the gum and
principles, the most common of which are listed grease to enter easily. Meanwhile, the gum
below: surrounds the greasy areas, sealing it against the
water applied during printing. Because of the mutual
Limit up to three colors, which should repulsion of grease and water, the image attracts the
harmonize to each other and with the color of the oily ink but repels water. Thus, when the surface is
paper and the dominant color(s) of the photo or moistened and inked, the ink adheres to the greasy
graphics drawing and not the wet stone, and is transferred
Limit to two typefaces on a single page, which perfectly to paper.
should "match"
Limit up to three fonts and sizes Lithography can be used to print text or artwork onto
Select the size of leading to be optimal and most paper or other suitable material.
pleasing to the eyes.
The number of different enhancements such as
greater size, bold, italic fonts, capitalization, or Symbol
different typeface, different color, as used for
A symbol is a mark, sign, or word that indicates,
headlines and emphasized words inside the text
signifies, or is understood as representing an idea,
block, should be limited and consistent, and be
object, or relationship. Symbols allow people to go
judiciously selected
beyond what is known or seen by creating linkages
Avoid underlining
between otherwise very different concepts and
Text should be placed judiciously to lead the eye
experiences. All communication (and data
from one text cognitively natural way to the next
processing) is achieved through the use of symbols.
text
Symbols take the form of words, sounds, gestures,
Multi-line headline should be segmented by
ideas or visual images and are used to convey other
phrases (no phrase should be split into two lines)
ideas and beliefs.
No widows and orphans (no beginning line of
paragraph at the bottom of page, no last line of Caption
paragraph at the top of page)
Likewise no headline is at the page bottom etc.
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A caption, is text that appears below an image. Most
captions draw attention to something in the image
that is not obvious, such as its relevance to the text.
Captions can consist of a few words of description,
or several sentences. Along with the title, the lead,
and section headings, captions are the most
commonly read words in an article, so they should be
succinct and informative.
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