g. ravi- 96422 12727

G. Ravi- 96422 12727

Contact for MBA Admissions- Wings Business School, Tirupati.

314 – ADVERTISING AND SALESPROMOTION MANAGEMENT

Unit-1:1. What is advertising? Explain Types ofadvertising?Ans: Advertisingis a formof marketing communication usedto promote or sell something, usually abusiness's productor service.

Advertising theory

The model of Clow and Baack[37] clarifies theobjectives of an advertising campaign and foreach individual advertisement. The modelpostulates six steps a buyer moves throughwhen making a purchase:

1. Awareness

2. Knowledge

3. Liking

4. Preference

5. Conviction

6. Purchase

Types of advertising

Virtually any medium can be used foradvertising. Commercial advertising mediacan include Wallpaintings, Billboards, Street furniturecomponents, Printed flyers and rack cards, Radio, Cinema and television adverts, web banners, Mobile telephone screens, Shopping carts, Web popups, Skywriting, Bus stop benches, Human billboards and forehead

advertising, Magazines, Newspapers, Town criers, Sides of buses, Banners attached to or sides of

airplanes ("logojets"), I on seatback tray tables or overhead

storage bins, Taxicab doors, Roof mounts and passenger screens,

Musical stage shows, Subway platforms and trains, Elastic bands on disposable diapers, Doors of bathroom stalls, Stickers on apples in supermarkets, Shopping cart handles (grabertising), The opening section

ofstreaming audio and video, Posters, Backs of event tickets and

supermarket receipts.Any place an "identified"

sponsor pays to deliver their messagethrough a medium is advertising.

Share of global adspend[46]

medium 2015 2018

Television advertisement 37.7% 34.8%

Desktop online advertising 19.9% 18.2%

Mobile advertising 9.2% 18.4%

Newspaper Advertising 12.8% 10.1%

Magazines 6.5% 5.3%

Outdoor advertising 6.8% 6.6%

Radio advertisement 6.5% 5.9%

Cinema 0.6% 0.7%

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Unit-2:2. What is Advertising creativity? ExplainCreative Strategy Implementation andEvaluation?Ans: Creativity is the soul of advertising andbranding. It is what gives life to messagesabout products and services that mayotherwise be boring or insignificant in thehearts and minds of target customers.

G. Ravi- 96422 12727



G. Ravi- 96422 12727



G. Ravi- 96422 12727


Unit-3:3. Explain the bjectives and Budgeting forAdvertising?Ans: An advertising budget is the money acompany is willing to set aside to accomplishits marketing objectives. When creating theadvertising budget, a company must weighthe trade-offs between spending oneadditional advertising dollar with the amountof revenue that dollar will bring in as revenue.

Factors Influencing Advertising Budget

Advertising Budgeting Methods:

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Unit-4:4. What is sales promotion? Explain Design,implementation and evaluation ofeffectiveness of sales promotion?Ans: Sales promotion is one level or type ofmarketing aimed either at the consumer or atthe distribution channel (in the form of sales-incentives). It is used to introduce newproduct, clear out inventories, attract traffic,and to lift sales temporarily.

Sales promotion is one of the five aspectsof the promotional mix. (The other 4 parts ofthe promotional mix are advertising, personalselling, direct marketing and publicity/publicrelations.)

Steps in sales promotion process:

Step I

Defining the sales promotion target.

Step II

Setting sales promotion objectives.

Step III

Setting the sales promotion budget.

Step IV

Developing the sales promotion strategy.

Step V

Selecting type of sales promotion.

Step VI

Coordinating the plans.

Step VII

Evaluating sales promotion effectiveness.

Advantages of Sales promotion:

Improving the manufacturing

company image

Simplifying the purchase process

Providing convenience for customers

Preservation of old customers and

attraction of new ones

Increasing volumes of sales.

Trade sales promotion techniques

Trade allowances

Dealer loader

Trade contest

Point-of-purchase displays

Training programs

Push money

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Step I


Step II


Step III


Step IV


Step V


Step VI


Step VII




company image







Trade allowances

Dealer loader

Trade contest


Training programs

Push money

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Step I


Step II


Step III


Step IV


Step V


Step VI


Step VII




company image







Trade allowances

Dealer loader

Trade contest


Training programs

Push money

G. Ravi- 96422 12727


Unit-5:5. Explain Consumer promotion tools?Ans: Promotional tools are tactics or activitiesyou plan and execute to persuade consumers tobuy your products or services.

Coupons:Coupons are a great way to achieve the desiredend result. Businesses can use coupons tobuild brand image, brand loyalty, rewardcustomer loyalty and promote specific productlines.Cross-promotionIt is a form of marketing promotion wherecustomers of one product or service aretargeted with promotion of a related productSamplingOffering a sample of your product or service isa tool to get your customers to try it, with thegoal of them paying for it next time.

Discounts and SalesImplement pricing strategies such as discountsand sales as promotional incentives forcustomers to buy.

Sweepstakes and ContestsDesigning a sweepstakes or contest canpromote your product or services in aparticipatory manner, but they can be tricky.

DisplaysProminent displays in retail stores and otherbusiness establishments draw attention to aproduct or service.

Samples Samples are offers of a free amountor trial of a product to consumers. The samplemight be delivered door to door sent in themail, picked up in a store, found attached toanother product or featured in an advertisingoffer. Sampling is the most effective and mostexpensive way to introduce a new product.

Ø Cash Refund Offers or Rebates These arelike coupons except that the price reductionoccurs after the purchase rather than at theretail shop. The consumer sends a specified“proof of purchase” to the manufacturer, whoin turn ‘refunds’ part of the purchase price bymail. Cash refunds have been used for majorproducts such as automobiles as well as forpackaged goods.

Ø Price Packs These are offers to consumersof savings off the regular price of a product,flagged on the label or package. They maytake the form or a reduced-price pack which issingle packages sold at a reduced price (suchas two for the price of one) or a banded pack,which is two related products banded together(such as a tooth brush and tooth paste). Pricepacks are very effective in stimulating shortterm sales, even more than coupons.

Ø Premiums or Gifts These are merchandiseoffered at a relatively low cost or free as anincentive to purchase a particular product.Sometimes the package itself, is a reusablecontainer may serve as a premium. A self-liquidating premium is an item sold below itsnormal retail price to consumers who requestit.

Ø Prizes These are offers of the chance to wincash, trips or merchandise as a result ofpurchasing something. Pepsi-cola offered thechance to win cash by matching numbersunder the bottle cap with numbers announcedon television. Sometimes the prize is a person,offering the winner either cash or dinner withactor Sharuk Khan.

Ø Patronage Awards These are values incash or in other forms that are proportional toone’s patronage of a certain vendor or group

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of vendors. Most airlines offer “frequent flyerplans” providing points for miles traveled thatcan be turned in for free airline trips.Cooperatives pay their members dividendsaccording to their annual patronage. LeMeridian adopted an “honoured guest” planthat awards points for users of their hotels.

Ø Free Trials Free trails consist of invitingprospective purchasers to try the productwithout cost in the hope that they will buy theproduct. Thus, often we see, auto dealersencourage free test drives to stimulatepurchase interest.

Ø Product Warranties These are animportant tool, especially as consumersbecome more quality sensitive. When My TVSoffered a two year car warranty, substantiallylonger than other competitors’ customers tooknotice. They inferred that My TVS qualitymust be good or else the company would be indeep trouble. Companies must carefullyestimate the sales-generating value against thepotential costs of any proposed warrantyprogramme.

Ø Tie-in Promotions These are becomingincreasingly popular. In a tie in promotion twoor more brands or companies team up oncoupons, refunds and contests to increase theirpulling power. Companies pool funds with thehope of broader exposure, while several salesforces push these promotions to retailers,giving them a better shot at extra display andad space.

Ø Point-of-Purchase Displays These takeplace at the point of purchase or sale. Displayof visible mark or product at the entrance ofthe store is an example. Unfortunately manyretailers do not like to handle the hundreds ofdisplays, signs and posters they receive frommanufacturers. Hindustan Lever often use thistool to promote its products in the retailmarket.

Ø Product Demonstrations Products arebeing shown in action. Consumers can visitthe store and see the usage of product in live

action so that doubts of the consumers can beclarified in the store itself. When a newproduct is introduced in the market, the salespromotional tool is often used. For exampleultra-modern grinder Maxie being used by thecompany to demonstrate its speciality than theother product.

***** All The Best *****

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