Advertising and Sales Promotion Flashcards
(29 cards)
Explain the term advertising?
what do you mean by the term advertising. meaning + features
Any paid form of non personal presentation or promotion of ideas, goods or services by an identified sponsor.
it is a paid form of communication.
it is a impersonal form of presentation or promotion of products, services or ideas.
it is issued by an identified sponsor.
the advertisement contains the name of the advertiser.
it is a form of mass communication.
the message is directed to a large number of persons simultaneously.
Features of advertising?
it is a paid form of communication.
it is a impersonal form of presentation or promotion of products, services or ideas.
it is issued by an identified sponsor.
the advertisement contains the name of the advertiser.
it is a form of mass communication.
the message is directed to a large number
Distinguish bw advertising and publicity
advertising-
1-(sponsor) it is done by a identified sponsor
2-(payment) it is paid for by the sponsor
3-(nature) it is always impersonal
4-(commercial value) it has a commmercial value
5-(versatility means- dymanic changes) less versatile
Publicity-
1- in it sponsor may not be identified
2- it is not directly paid for by the sponsor
3-it may be personal or impersonal
4-it may or may not have commercial value
5- more versatile
How is the advertising useful to producers/traders, customers, society?
state the importance of advertising to producers/customers/society?
to producers and traders-
1-meeting competion
2-steady demand
3-higher sales volume
4-introduction of new product
5-Economics of scale
6-Goodwill
7-Employee morale
to customers-
1-convenience
2-Education of consumers
3-Lower prices
4-better quality
5-consumers surplus
to society-
1-employment generation
2-higher standard of living
3-Sustains the press
4-Stimulates research and development
5-Art and culture
6-Incentative to progess
to producers and traders?
not that imp
1-meeting competition
Advertisement is an important means to face competition. by creating brand loyalty, it helps to maintain sales and market share.
2-steady demand
Advertising creates and sustains regular demand by smoothening out seasonal and otheer fluctuations
3-higher sales volume
Advertising helps to icrease demand, expand markets and enhance sales of existing products
4-Introducing of new product
Advertisment is helpful in introducing new products by creating awareness and gaining their acceptance.
5-Employee morale
by buliding reputation of the firm, advertising provides a sense of security to employees and improve their morale
to customers-
explain importance
not that imp
1-Convenience-
advertising make shopping easy by reducing the time and effort involved in shopping
2-Education to consumers-
Advertising provide education and knowledge to consumers abt their new products and diverse uses.
3-lower prices-
effective advertising reduces the costs due to large scale production and eliminatio of wholesalers
4-Better quality-
Advertising is generally done through brand names. Producers try to create special features in their products to successfully communicate product differentiation
5-Consumer surplus
Advertising brings the customer closer to the producer so that each can fully appreciate the needs of the other
to society-
explain the importance
not that imp
1-Employment generation-
Advertising provides direct employment to a large number of people engaged in designing.
2-Higher standard of living-
Advertising improves the standard of living of the people by promoting variety and quailty of consumption.
3-Sustains the press-
Advertising provides an important source of revenue to newspapers, magazines, radio and television
4-Stimulates research and development-
Advertising can be successful only when it is backed by new and better products. big businesses firms have research and development departments to develop new products and new uses.
5-Art and culture-
Advertising promotes the creative energies of people required in designing and developing advertisements.
how are advertisments criticized?
state the demerits
1-Wastage of National Resources-
2-Creates monopoly
3-Misleads the consumer-
4-Wasteful consumption
5-HIgher price
higher price?
it is argued that large amouts spent on advertising incrrease the cost of distribution which is transferred to customers in the form of higher prices. this objective may be true in case of inelastic demand, when advertising merely transfers demand from one producer to another. but effective advertising often creates demand and increases the scale of production
Wasteful Consumption
Advertising multiples the needs of people and encourages unhealthy consumption. by exploitating human sediments, it persuades people to buy products which they don’t need or cannot afford. Advertising promotes artificial livig and extravagance and creates demand for trival goods. modern society has become a society of campa cola, chocolate and lolipops instead of natural and wholesome food largely because of advertising.
creates monopoly
Advertising creates brand preferences and restrict free competition. But advertising creates only a temporary brand monopoly as after some time other brands offer competition. Example-‘Amul’ brand butter enjoys monopoly of brand but has to face from ‘vita’. Large firms which can afford a huge amount of money on advertising eliminate small firms by creating brand monopoly
misleads the consumer-
it is said that advertising is often deceptive and misrepresents facts to the consumer. there is no denying the fact that some firms indulge in false and misleading advertising and unscrupulous use of advertising by them destroy public confidence in advertising, it does not mean that advertising itself is bad and neccessary.
what is an advertising agency?
explain the term
Business firms and other organisations advertise their products/services/ideas etc on a regular basis. they need an institution which is an expert in designing advertisements, in releasing them through appropriate media, etc. An advertising agency is a specialised organisation which provides all advertising agency is a specialised organisation which provides all advertising related services for some fee/comission. When it is owned and operated by the advertiser himself, it is called in house agency.
1-planning?
the advertising agency plans the advertising campaign. a client firm delegates the responsibility of advertising planning and execution to the agency. the agency must have a fair knowledge of firm’s products, it’s history, the present market conditions, distribution methods, price level and other conditions.
2-research?
Research is a key function in the advertising campaign. the decisions on creativity and media selection are taken on the findings uncovered for reasearch. Research makes every decision systematic and logical, based as it is on facts and figures.
3-Accounting?
the advertising agency maintains proper accounts in co-operation with the client. The accountant is in charge of the administration of the advertising programme on the agency side. the amount of fees received from the client and the payment of taxes, bills and other charges are accounted for by the accountant.
4-Creation and Execution?
specific advertisments are created. the advertising copy is written, the layout is prepared illustrations are drawn; photographs are finalised ; and a correct mechanical form of running it in the selected media is produced. the advertising agency prepares a suitable advertising copy for the inseration in all the media.
state the functions of advertising agency?
1-accounting
2-creation and execution
3-research
4-planning
5-Internal Control
Internal Control?
the advertising agency manages it’s employees, finances and other resources effectively and economically. it conducts the business behind the scenes and exercise proper control over activities ad funds, public relations, sales promotion, functions and client contacts are maintained by the management for the effective operatios of the advertising agency
Distinguish bw sales promotio and advertising
sales promotion-
1-(time horizon) Short term perspective
2-(aim) to increase immediate sales
3-(regularity) limited period, non-recurring
4-(scope) narrow-Free samples, coupons, contexta, premium offers, displays, exhibitions, etc.
5-(meaning) marketing activities which stimulate cosumer buying ad dealer effectiveness
Advertising-
1-Long-time perspective
2-To build image of producer and his product.
3-Regular and recurring
4-Wide-Newspapers, magazines, TV radio, posters, films and other media
5-Any paid form of impersonal presentatio and promotion of a product, Service, or idea by an identified sponsor.
what is social advertising media?
s.c either refers to advertising abt socially relevant issues or use social relatioships networks to promote a product/service and reach out to it’s target audience. the advertising campaigns are created in public interest. the basic idea to create awareess and make a difference.Ex-a campaign for blood donation, awareness programs for ill effects of smoking, swachh bharat abhiyan,etc.
meaning of sales promotion?
those marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and the dealer effectiveness, such as point of purchase displays, shows and exhibitions, demonstrations and various non recurring routines
State the techniques of sales promotion
1-distribution of free samples
2-coupons
3-Premium or bonus offers
4-trading stamps
5-prize contests
6-free offer
7-fairs and exhibitions
8-exchange offer
9-merchandising aids
10-clearance sale
Free offer?
In order to promote sales, some firms offer a free gift with the purchase of an expensive product. Example, a cordless phone is offered free on the purchase of a refrigerator or colour tv
