Project Report on Advertising Effectiveness [Advertising/Sales Promotion/Sales Management]
ADVERTISING
EFFECTIVENESS
CONCEPTUAL STUDY OF PROMOTION MIX
People no longer buy shoes to keep
there feet warm and dry. They buy them because of the way the shoes make
them feel masculine, feminine, rugged, different, sophisticated, young,
glamorous, "in" buying shoes has become an emotional experience . Our
business now is selling excitement rather than shoes. - Francis C. Rooney
Modern Marketing Trends : Modern marketing calls for more than developing a good
product it attractively and making it accessible to target customers.
Companies must also communicate with their present and potential customers.
Every company is inevitably cast into the role of communicator and promoter.
What is communicated, however should not be left to
change. To communicate effectively; companies hire advertising agencies to
develop effective ads; sales promotion specialists to design sales incentive
programmes and public relations firms to develop the corporate image. They
train their sales people to be friendly and knowledgeable. For most
companies, the question is not whether to communicate but rather what to
say, to whom.
Promotion Technique :Promotion influences demand by communicating product and
company message to the market. A promotion Techniques involves the
co-ordination of all communication efforts aimed at a specific audience;
consumer and shareholder. The most critical promotional question is the
proper mix of advertising, personal selling, sales promotion and publicity.
The promotion mix is usually co-ordinated on a campaign basis, taking the
campaign may efforts include a total campaign with one unified theme. All
promotion messages tie in to this theme in one way or the the, rather than
conflicting with it.
ADVERTISING
What is Advertising :The word
‘Advertising’ has its origin from a Latin word ‘Adventure’ which means to
turn to. The dictionary meaning of the word is ‘to announce publicity or to
give public concerned to a specific thing which has been announced by the
advertiser publicity in order to inform and influence them with the ideas
which the advertisement carries. In business world the terms in mainly used
with reference to selling the product of the concern.
The advertising, as Jones defines it is "a sort of
machine made mass production method of selling which supplements the voice
and personality of the individual salesman, such as manufacturing the
machine supplements the hands of the craftsman." It is thus a process of
buying/sponsor/identified media space or time in order to promote a product
or an idea. From a careful scrutiny of the above definition, the following
points emerge :
Advertising is a paid form and hence commercial in
nature. This any sponsored communication designed to influence buyer
behaviour advertising.
Advertising is non-personal. Unlike personal selling,
advertising is done in a non-personal manner through intermediaries or media
whatever the form of advertisement (Spoken, written or visual). It is
directed at a mass audience and not directed at the individual as in
personal selling.
Advertising promotes idea, goods and services. Although
most advertising is designed to help sell goods, it is being used
increasingly to further public interest goals.
Advertising is identifiable with its sponsoring authority
and advertiser. It discloses or identifies the source of opinions and ideas.
Advertising thus is :
1. Impersonal
2. A communication of ideas.
3. Aimed at mass audience
4. By a paying sponsor.
The two forms of mass communication that are something
confused with advertising are publicity and propaganda. If we eliminate the
elements of the "paying sponsor" (The paid requirement) we would have the
element of publicity left : For publicity is technically speaking,
advertisement without payment. In a similar manner. If we eliminate the
requirement of an "identified sponsor", the resulting communication is
propagandistic.
It is important for us to emphasize that advertising may
involve the communication of ideas or goods of service. We are all aware
that advertising attempts to sell goods and services. But we may overlook
the more important fact that it often sells ideas. Advertising may persuade
with information; it may persuade with emotion: more frequently, it
endeavours to persuade with some mixture of both.
(1) Electronic Media
Advertisers use two types of media to reach target
consumers over the airwaves; radio or T.V.
(A) Radio :
Advertisers using the medium of radio may also be
classified as National or Local advertisers. The radio is a prominent
vehicle of advertising in our country and accounts for a large sum of the
total advertising budget.
The radio serves principally local rather than national
or large regional markets. Many small advertisers use the radio. So do some
large organizations.
When T.V. became a factor in the advertising scene, some
industry observers felt that radio advertising might become insignificant or
even disappear. This has not been so, for radio operators have responded to
the challenge by offering programmes that features music etc. which appeal
to local audience consumers have responded very favourably to this approach.
Moreover TV does not have much coverage in our country.
(B) Television :
T.V. - Advertising Media :Late in India, a growing class of advertising media has
been the TV. In our country, commercial advertising on TV is severely
limited because broadcast timings are only in the evenings. The TV is a
unique combination timing of sight and sound and achieves a deeper impact
than the other media do. This is particularly advantageous for advertisers
whose product require demonstration. TV advertising offers advantage of
impact, mass coverage, repetition, flexibility and prestigious. In our
country not everyone has a TV set; therefore it does not reach everyone.
Moreover, in rural India where 76.31% of our population lives. There are
hardly any TV sets, except at the community centres where electricity is
available. Moreover, TV programmes in our country do not offer much
selectivity. The translation is limited, any centers do not have TV towers.
TV appeals to both the senses of sound and of sight . As
a result is combines the two to produce high-impact commercials. Finally,
the fact that product or service is promoted on TV may build a prestigious
image of the product and its sponsor. The pleasure derived from watching TV
is at least potentially transferable to the advertising message delivered
through the medium.
(ii) Print Media
The print media
carry their massages entirely through the visual mode. These media consist
of newspapers, magazines and direct mail.
(A) Newspaper :
A sizable share
of the total advertising budget is spent on advertising in newspapers.
Newspapers in our country virtually reach most of the homes in the cities.
Since newspapers are local, marketers can easily use them to reach
particular markets. This selectivity is easily rigorous. Some are in the
twelve-hour range. From the viewpoint of the advertiser, newspaper offers
several advantage, they are local in content and appeal and provide
opportunity for direct communication between a product and its local dealers
or distributors. Because newspapers supply news, they offer an atmosphere of
factual information and of currency that may be favourable for some
advertising situations. Advertisers can reach a very broad audience through
newspapers which offer great flexibility. The advertisers may choose the
specific area to be covered and the advertisement can be placed in
newspapers at very short notice as compared with other media.
(B) Magazines :
Magazines are also mean of reaching different market,
both original and matinal and of general and specific interest. An
organisation may approach national markets through such publication as
Business India, Famina, Sportsweek, India Today, Business World and Filmfare.
Some marketers divide their market on the basis of such variable as age,
educational level and interest magazines. Magazines are divided into those
parts that serve business, industrial consumers, ladies, sports etc. The
diversity of magazines is tremendous. Some offer news or together "General
Interest" content to huge audience. Others are highly specialised, technical
or even exotic. In general, magazines offer advertiser the opportunity to
reach highly selective audience.
The primary advantage of magazine advertising are
selectivity of market targets; quantity reproduction long life; the prestige
associated with some magazines; and the extra service offered by many
publications. The quality of magazines reproduction is usually high.
Consumers sometime keep individual copies for long period of time; reread
them or pass them on to other. Some magazines have prestige value. The
marketer can cover national or large regional markets at a low cost per
contract (per individual reached). Magazines generally offer high-quality
printing of advertisement.
(iii) OUTDOOR AND TRANSIT MEDIA
(A) Outdoor Advertising :
Outdoor Advertising :Outdoor advertising involves the use of sign and bill-boards, posters or displays
(such as those that appear on a building’s wall) and electric spectacular
(large, illuminated, sometime animated sign and display). The marketers may
purchase billboards on the basis of showings. A showing indicates the
percentage of the total population of a particular geographic area that will
be exposed to it during one month period. The highest showing is 100. Here
the number of billboards is would attract approximately 50% of the local
population about 20 times during a month. Sings are usually smaller than
billboards and are erected and maintained by the marketer rather than by the
advertising media.
This form of advertising has the advantage of
communication quick and simply ideas of repetition and of the ability to
promote products that are available for sales. Outdoor advertising is
particularly effective in metropolitan and other can use this medium to
bring the products to the attention of consumers or to remaining them of the
product, while they are on shopping trips or area disposed towards shopping.
Advertisers may utilize this medium to economically reach a large mass of
people or small local markets.
(B) Transport Advertising :
Transport advertising appears on the inside or outside of
taxis, buses, railways and other modes of passenger transportation.
Marketers may use transit advertisement to attain high exposure to
particular groups consumers on theory way to and from work and tourists.
Repeat exposure is possible for a majority of the people in our country use
public transport basis. Transport advertising is useful in reaching
consumers at an advantageous point which they are embarking on a shopping
trip. This medium is a low cost medium.
SALES PROMOTION
According to the American Marketing Association, Sales Promotion consists of
those marketing activities other than personal advertising and publicity
that stimulate consumer purchasing and dealer effectiveness, such as
displays shows and expositions, demonstration and various non-recurrent
selling efforts not in the ordinary routine.
Sales promotion activities are impersonal and usually
non-recurring and are directed at the ultimate consumers, industrial
consumers and middlemen. These activities tend to supplement the advertising
and personal selling efforts. Examples of sales promotion are free product
samples, trading stamps, store displays, premiums, coupons and trade shows.
For many organisations, including the marketers of food, toys and clothing,
store displays are an important sales promotion device. Display exposes the
promotion messages to consumers at the time and place of purchase. Such
exposure is especially important for items that are bought on impulse.
Numerous consumers products are purchased in stores that use self-service
selling method's. Marketers of such items need effective display in order to
distinguish their products from those of their rivals.
PUBLICITY
Publicity is a
means of promoting the mass market and is similar to advertising, except
that it is free, is found in the editorial portion of news media and
pertains to newsworthy events. The most common type of publicity are news
release (also know as press release), photographs and feature stories.
Marketers have less control over the nature of the publicity that their
organisation and products receive than they have over their advertising,
personal selling and sales promotions messages. Upon receiving a news
release, for instance, the editor or broadcast station programme director
may choose to throw the release in the waste paper basket, change the
hording, or print or broadcast it in the original form. The disposition of
the news release is entirely in the hands of the media and cannot be
dictated by the marketer. Publicity may be negative as well as positive.
Some products and brands have received bad publicity; for example
cigarettes, wings, artificial sweeteners have been branded unsafe or
unhealthy in the publicity which they would rather have done without. Many a
companies and trade association officials attempt to develop favourable
working relationships, with the media in order to minimise bad publicity.
They realize that such communications to the public may have every adverse
impact upon the image of the organisation.
PERSONAL SELLING
Personal selling consists of persons to communication
between the sales persons and their prospects. Unlike advertising, it
involves personal interactions between the sources and the destination.
Advertising aims at grouping the shotgun approach, while personal selling
aims at individuals the right approach. Sales persons are in the position to
tailor their messages according to the unique characteristics of each
prospect. Further, by observing and listening, sales persons receive
immediate feedback on the extent to which their messages are getting across.
If feedback indicates that the message is not getting across, the sales
person may quickly adjust it or the method of its presentation.
Personal Selling :Personal selling may be a very intense means of promotion. Consumers can easily leave the room-during a TV commercial,
ignore a store display. The most effective method of promotion probably is
to have sales person provided that the organisation has sufficient funds.
The most effective method of promotion probably is to have sales person call
upon every target consumers, for many institutions, especially those that
appeal to the mass market, this would be terribly inefficient. As a result,
they employ mass marketing techniques such as advertising, personal selling
is very important in industrial marketing.
PUBLIC RELATIONS
Marketers
engage in public relations in order to develop a favourable image of their
organisation and products join the eyes of the public. They direct this
activity to parties other than target consumers. These "other" include the
public at large labour unions, the press and environmental groups. Public
relations activities include sponsoring, lobbying and using promotion
message to persuade members of the public to take up a desired position. The
term public relations refers to a firm's communication and relationships
with the various sections of the public. These sections include the
organisation customers, suppliers, share holders, employees, the government,
the general public and the society in which the organisation operates.
Public relations programme may higher be formal or informal. The critical
point is that every organisation, whether or not it has a formalized (organised,
programme, should be concerned about its public relations.
ADVERTISING EFFECTIVENESS
Advertising is
an art not a science. Effectiveness of which cannot be measured with a
mathematical or empirical formula some advertisers argue that advertising
efforts go to waste, but every advertiser is keenly interested in measuring
or in evaluation of ad. effectiveness. Testing for the effectiveness of ad.
will lead advertisement testing must be done either before or after the ad
has done in the media. It is of two types, pretesting which is done before
the ad. has been launched and one is referred to as cost testing which is
done before the ad. has been launched and one is referred to as cost testing
which is done after launching the advertising campaign. The basic purpose of
advertising effectiveness is to avoid costly mistakes, to predict the
relative strength of alternative strength of alternative advertising
strategies and to increase their efficiency. In measurement of ad.
effectiveness feed back is always useful even if it costs some extra
expenditure to the advertiser.
Sales-Effect :
Communication-effect advertising research helps advertisers assess
advertising's communication effects but reveals little about its sales
impact. What sales are generated by an ad that increases brand awareness by
20% and brand preference by 10%?
Advertising's sales effect is generally harder to measure
than its communication effect. Sales are influenced by many factors besides
