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    M.B.A. DEGREE EXAMINATION, NOVEMBER 2008

    ELECTIVE INTEGRATED MARKETING COMMUNICATION

    PART A (5*6=30marks)

    1. a. what is promotion mix? Explain about the various factors influencing promotion mix.

    Ans:Promotion: function of informing, persuading, and influencing the consumers purchase decisionThe promotional mix is a term used to describe the set of tools that a business can use to communicateeffectively the benefits of its products or services to its customers.

    The promotional mix includes

    "Advertising is any paid form of non-personal presentation and promotion of ideas, goods andservices through mass media such as newspapers, magazines, television or radio by an identifiedsponsor".

    Personal selling is oral communication with potential buyers of a product with the intention ofmaking a sale.

    Sales promotion describes incentives and rewards to get customers to buy now rather than later Public relations: firms communications and relationships with its various publics

    Factors that influence the effectiveness of a promotional to mix:

    Nature of the market Nature of the product Stage in the product life-cycle Price Funds available for promotion

    1. b. Explain the concept of CRM

    Ans:CRM is the development and maintenance of mutually beneficial long-term relationships withstrategically significant customersCRM is a business philosophy based on upon individual customers and customized products and

    services supported by open lines of communication and feedback from the participating firms thatmutually benefit both buying and selling organizations. In short, CRM provides selling organizationswith the platform to obtain a competitive advantage by embracing customer needs and building valuedriven long-term relationships.Determinants of CRM

    Trust

    The willingness to rely on the ability, integrity, and motivation of one company to serve the needs of theother company as agreed upon implicitly and explicitly.

    Value

    The ability of a selling organisation to satisfy the needs of the customer at a comparatively lower cost orhigher benefit than that offered by competitors and measured in monetary, temporal, functional andpsychological terms.

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    In addition to trust and value, salespeople must:

    Understand customer needs and problems;

    Meet their commitments;

    Provide superior after sales support;

    Make sure that the customer is always told the truth (must be honest);

    Have a passionate interest in establishing and retaining a long-term relationship (e.g., have long-term perspective).

    Stages in the development of a Customer Relationship

    The Pre-relationship StageThe event that triggers a buyer to seek a new business partner.

    The Early StageExperience is accumulated between the buyer and seller although a great

    degree of uncertainty and distance exists.

    The Development StageIncreased levels of transactions lead to a higher degree of commitment andthe distance is reduced to a social exchange.

    The Long-term StageCharacterised by the companies mutual importance to each other.

    The Final StageThe interaction between the companies becomes institutionalized.

    Functions of Customer Relationship Management

    Direct functions (are the basic requirements of a company that arenecessary to survive in the competitive marketplace)

    Profit;Volume; andSafeguard

    Indirect functions (are the actions necessary to convince thecustomer to participate in various marketing activities).

    Innovation:

    Market;Scout: andAccess.

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    Models of Customer Relationship Management

    The Evans and Luskin (1994) model for effective

    Relationship Marketing

    Relationship marketing inputs

    Understanding customer expectationsBuilding service partnershipsEmpowering employeesTotal quality management

    Relationship marketing outcomes

    Customer SatisfactionCustomer loyaltyQuality productsIncreased profitability

    Assessment state

    Customer feedbackIntegration

    Managing Customer Relationships

    Qualifying prospects for relationship building

    Opport

    unitiesfor

    adding

    value

    Potential profitability of customer

    High

    Low

    Low

    Use a noncustomized

    approach

    Seek better

    opportunities

    elsewhere

    Build a strong

    and lasting

    relationship

    Focus on

    loyalty-building

    program

    High

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    S ummary

    CRM is a new business philosophy based on trust and value;

    The core function of CRM is the value creation process;

    Customer relationships develop over time;

    The role of global salespeople in the process is that of bothrelationship builders and relationship promoters; and

    The basic premise of CRM is to offer superior value tocustomers in an effort to turn prospects intocustomers, customers into loyal customers, andloyal customers into partners.

    2.a discuss briefly about various classification of advertising

    Ans;Advertising is any paid form of non personal presentation and promotion of ideas, goods, or services byan identified sponsorTypes of Advertising

    The Target - Consumer or Business: An ad is either business-to-consumer or Business-to-business

    The Type of Demand - Primary or Selective: Primary-demand advertising is designed to stimulate demand for a generic category of a

    product Selective-demand advertising is intended to stimulate demand for individual brands

    The Message - Product or Institutional: Product advertising focuses on a particular product or brand Institutional advertising presents information about the advertisers business or tries to

    create a favorable attitude - that is, build goodwill - toward the organization

    The Source - Commercial or Social: Whereas the focus is normally on commercial messages the most valued form of

    endorsement is social, for instance, when a trusted friend recommends a product

    Word-of-mouth advertising (technically does not fit the definition of advertising) WOM recommendations are highly credible because the recommender has only the best

    interests of the recipient as the motivation for sharing an opinion Firms try to stimulate or simulate WOM endorsements The Internet has generated increasing interest in WOM (Viral Marketing); seeing the

    potential to reach audiences in a new way, many businesses are providing information tobloggers and podcasters and even creating websites that have the appearance of blogs

    2.b. Describe detail about the advertisement budget

    Ans:

    Advertising has a carryover effect that lasts beyond the current period. Although advertising is treated asa current expense, part of it is really an investment that builds up an intangible asset called brand equity.

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    This treatment of advertising reduces the companys reported profit and therefore limits the number ofnew product launches a company can undertake in any one year.

    The following are the five factors that are considered while setting the advertising budget:

    Stage in the product life cycle: new products typically receive large advertising budgets to buildawareness and to gain consumers trial.

    Market share and consumer base: the brands having a high market share usually require lessadvertising expenditure whereas for products whose brand needs to be built, requires largeradvertising expenditure.

    Competition and clutter: In todays competitive market, where there are a large number ofcompetitors, a brand must advertise heavily to be heard.

    Advertising frequency: the number of repetitions that need to be made to put across the brandmessage to consumers has an important impact on the advertising budget.

    Product substitutability: brands in the commodity class require heavy advertising to establish adifferent image. For example, cigarettes, beer, soft drinks. Also advertising is important when thebrand can offer unique physical benefits or features.

    List of items

    media costs point of sales materials cost of producing the ads ad research exp. Payroll exp: of ad dept Ad dept supplies & equipment Travel exp of ad dept

    Advertising Budget Procedure Budget preparation Budget presentation Budget implementation Budget control

    Methods Of Ad: Appropriation

    Percentage of Sales Method

    A specific percentage of that amount is allocated for advertising. Depending on the business this amount may be a daily, weekly, monthly or quarterly expense. The percentage amount will also vary depending on your profit margins, industry, location and

    market size.

    Most business operate with an advertising budget of 2-5 percent of their previous years grosssales.

    If you are new in business, you can obtain industry standards from associations or trademagazines devoted to your type of business.

    Sales objectives method

    Using this method, advertising managers will set sales objectives they feel are attainable inthe current business climate.

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    Advertising and promotion is then used as needed to help realize the sales goals regardless ofwhat happened in previous years.

    Up side

    The up side is that if the advertising is done correctly it becomes an investment, not an expenseand can fuel more advertising at later dates. The company grows and expands at a faster rate thanit would with the percentage of sales method.

    Down side

    The down side is that advertising based on a bad promotion or incorrect advertising can be very

    costly. Suddenly future advertising becomes an expense not an investment. Costs like this cannotalways be recouped quickly and may start a downhill slide that can destroy a company.

    3.Competitive Parity Method

    Merits it respects the superior kills competitive wars it is simple

    Demerits it is not logical it is a misfit

    it steps up competitive wars4. Affordability MethodMerits

    it is practical it is simple it is flexible

    Demerits it overlooks opportunities it is short sighted it ignores the ability of advertising

    3. a. explain different types of media used for advertising

    Ans:

    Advertising is the promotion of a companys products and services carried out primarily to drive sales ofthe products and services but also to build a brand identity and communicate changes or new product/services to the customers. Advertising has become an essential element of the corporate world andhence the companies allot a considerable amount of revenues as their advertising budget. There areseveral reasons for advertising some of which are as follows:

    Increasing the sales of the product/service Creating and maintaining a brand identity or brand image. Communicating a change in the existing product line. Introduction of a new product or service. Increasing the buzz-value of the brand or the company.

    Thus, several reasons for advertising and similarly there exist various media which can be effectivelyused for advertising. Based on these criteria there can be several branches of advertising. Mentionedbelow are the various categories or types of advertising:

    Print Media Newspapers, Magazines, Brochures, Fliers

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    The print media have always been a popular advertising medium. Advertising products via newspapersor magazines is a common practice. In addition to this, the print media also offers options likepromotional brochures and fliers for advertising purposes. Often the newspapers and the magazines sellthe advertising space according to the area occupied by the advertisement, the position of theadvertisement (front page/middle page), as well as the readership of the publications. For instance anadvertisement in a relatively new and less popular newspaper would cost far less than placing anadvertisement in a popular newspaper with a high readership. The price of print ads also depend on thesupplement in which they appear, for example an advertisement in the glossy supplement costs wayhigher than that in the newspaper supplement which uses a mediocre quality paper.

    Outdoor Media Billboards, Kiosks, Tradeshows and Events

    Outdoor advertising is also a very popular form of advertising, which makes use of several tools andtechniques to attract the customers outdoors. The most common examples of outdoor advertising arebillboards, kiosks, and also several events and tradeshows organized by the company. The billboardadvertising is very popular however has to be really terse and catchy in order to grab the attention of thepassers by. The kiosks not only provide an easy outlet for the company products but also make for aneffective advertising tool to promote the companys products. Organizing several events or sponsoringthem makes for an excellent advertising opportunity. The company can organize trade fairs, or evenexhibitions for advertising their products. If not this, the company can organize several events that areclosely associated with their field. For instance a company that manufactures sports utilities can sponsora sports tournament to advertise its products.

    Broadcast Media Television, Radio and the Internet

    Broadcast advertising is a very popular advertising medium that constitutes of several branches liketelevision, radio or the Internet. Television advertisements have been very popular ever since they havebeen introduced. The cost of television advertising often depends on the duration of the advertisement,the time of broadcast (prime time/peak time), and of course the popularity of the television channel onwhich the advertisement is going to be broadcasted. The radio might have lost its charm owing to the

    new age media however the radio remains to be the choice of small-scale advertisers. The radio jingleshave been very popular advertising media and have a large impact on the audience, which is evident inthe fact that many people still remember and enjoy the popular radio jingles.

    Covert Media Advertising in Movies

    Covert advertising is a unique kind of advertising in which a product or a particular brand isincorporated in some entertainment and media channels like movies, television shows or even sports.There is no commercial in the entertainment but the brand or the product is subtly( or sometimesevidently) showcased in the entertainment show. Some of the famous examples for this sort ofadvertising have to be the appearance of brandNokia which is displayed on Tom Cruises phone in the

    movieMinority Report, or the use ofCadillac cars in the movieMatrix Reloaded.

    SurrogateMedia Advertising Indirectly

    Surrogate advertising is prominently seen in cases where advertising a particular product is banned bylaw. Advertisement for products like cigarettes or alcohol which are injurious to heath are prohibited bylaw in several countries and hence these companies have to come up with several other products thatmight have the same brand name and indirectly remind people of the cigarettes or beer bottles of the

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    same brand. Common examples include Fosters and Kingfisher beer brands, which are often seen topromote their brand with the help of surrogate advertising.

    Public Service Media Advertising for Social Causes

    Public service advertising is a technique that makes use of advertising as an effective communicationmedium to convey socially relevant messaged about important matters and social welfare causes likeAIDS, energy conservation, political integrity, deforestation, illiteracy, poverty and so on. David Oglivywho is considered to be one of the pioneers of advertising and marketing concepts had reportedlyencouraged the use of advertising field for a social cause. Oglivy once said, "Advertising justifies itsexistence when used in the public interest - it is much too powerful a tool to use solely for commercial

    purposes.". Today public service advertising has been increasingly used in a non-commercial fashion inseveral countries across the world in order to promote various social causes. In USA, the radio andtelevision stations are granted on the basis of a fixed amount of Public service advertisements aired bythe channel.

    Celebrity Media

    Although the audience is getting smarter and smarter and the modern day consumer getting immune tothe exaggerated claims made in a majority of advertisements, there exist a section of advertisers that stillbank upon celebrities and their popularity for advertising their products. Using celebrities for advertisinginvolves signing up celebrities for advertising campaigns, which consist of all sorts of advertisingincluding, television ads or even print advertisements.

    3.b. What is media planning? How to select appropriate medium for advertising? Discuss

    Steps in media plan

    Tgt market study

    Deciding the advertising message

    Matching media and target group

    Media selection

    Media schedulingMedia Planning Criteria Considerations

    Geographic coverageBrand Development Index (BDI) and Category Development Index (CDI)

    Brand Development Index (BDI) relates the percent of a brand's sales in a market to the percent of theU.S. population in that same market.

    Category Development Index (CDI) relates the percent of a category's sales in a market to the percent ofthe U.S. population in that same market.

    Formula:

    The media mix

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    Scheduling

    ContinuityFlightingPulsing

    Reach versus frequency

    Reach - The actual number of individual audience members reached at least once by the

    vehicle. Frequency - The number of times the receiver is exposed to vehicle in a specific time

    period.

    GRP (Gross rating point) = Reach x frequency

    Creative aspects and mood

    Creative Factors In Determining Frequency

    Message complexity

    Message uniqueness

    New vs. continuing campaigns

    Image versus product sell

    Message variation

    Wearout

    Advertising units

    Budget considerations

    Cost Per Thousand (CPM)

    Target Audience CoverageTarget Audience CoveragePopulation excluding target market

    Target market

    Media Overexposure

    Media Coverage

    TargetMarket

    Proportion

    FullMarket

    Coverage

    PartialMarket

    Coverage

    CoverageExceeding

    Market

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    Cost Per Thousand (CPM) allows a media planner to compare media based on two variables: audienceand cost. CPM is used as a comparative device. The lowest cost per thousand medium is the mostefficient, all other variables being equal. Oftentimes the media with the lowest cost per thousand areselected, but not always. CPM may be computed for a printed page or broadcast time, and the audiencebase may be either circulation, homes reached, readers, or number of audience members of any kind ofdemographic or product usage classification.

    1. For print media (when audience data are not available):

    CPM = Cost of 1 ad x 1000Circulation

    Because many print media do not have audience research data, this formula is often used.

    2. For print media (when audience data is available):

    CPM = Cost of 1 ad x 1000Number of prospects reached

    3. For broadcast media (based on homes reached by a given program or time period):

    CPM = Cost of 1 unit of time (commercial) x 1000Number of homes reached bya given program or time period

    4. For broadcast media (when audience data is available):

    CPM = Cost of 1 unit of time (commercial) x 1000Number of prospects reached bya given program or time period

    5. For newspaper (when cost of ad is known):

    CPM = Cost of ad x 1000Circulation

    Cost Per Rating Point (CPP)

    CPP (cost per gross rating point) = Cost of broadcast schedule / GRPsorCPP (cost per rating point) = Cost per spot / rating

    4.b. explain details about advertising visualization

    Ans: Visualization is any technique for creating images, diagrams, or animations to communicate amessage. Visualization through visual imagery has been an effective way to communicate both abstractand concrete ideas since the dawn of man. Examples from history include cave paintings, Egyptianhieroglyphs, Greek geometry, and Leonardo da Vinci's revolutionary methods of technical drawing forengineering and scientific purposes.Visualization today has ever-expanding applications in science, education, engineering (e.g. productvisualization), interactive multimedia, medicine, etc. Typical of a visualization application is the field of

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    computer graphics. The invention of computer graphics may be the most important development invisualization since the invention of central perspective in the Renaissance period. The development ofanimation also helped advance visualization

    Principles of Creativity

    Does the ad position the pdt simply and unmistakable clarity. Does the ad bolt the brand to a clinching benefit

    Does the ad contain a power idea

    Does the ad design in brand personality Is the ad unexpected

    Is the ad single minded

    Does the ad reward the prospect

    Is the ad usually arresting

    Does the ad exhibit painstaking craftsmanshipThe Creative Process

    Orientation

    Preparation Analysis

    Ideation

    Incubation Synthesis Evaluation

    Execution Style

    Sliceof

    L ifeLifestyle

    FantasyMood

    orImage

    Musical

    Perso

    nal itySymbol

    TechnicalExperti se

    ScientificEvidence

    TestimonialEvidence

    orEndo

    rsement

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    4.b. how to measure the effectiveness of advertising? Elucidate

    Reasons for measuring advertising effectiveness1. Avoiding costly mistakes

    Understanding how well money is being spent Opportunity loss due to poor communications Measuring the effectiveness of poor communications

    2. Evaluating alternative strategies Which strategy is most effective

    3. Increasing the efficiency of advertising in general Problem with losing sight of the message and expecting the audience to understand

    Reasons for Not Measuring Advertising Effectiveness1. Cost

    Timing Proper spending to gain increased exposure on the right message

    1. Research problems Isolating the effects of promotional elements

    3. Disagreement on what to test Different objectives for stages in PLC, industry and different people in the firm

    4. The objections of creative The more creative an ad, the more successful Testing impairs creativity

    Decisions for Measuring Advertising Effectiveness What to testCreative decisions

    The creative theme/idea can be tested To see the reaction and different message appeals of the target audience Reinforcing the brand position in the targets mind Using a variety of creative tools

    Media decisions

    Using research to determine the most effective media vehicle Vehicle option source effect

    People perceive ads differently depending on their context Evaluating Flighting v. Pulsing or continuous scheduling

    Budgeting decisions

    Examining the effect of budget size on advertising Sales are not an indicator of effectiveness because they ignore the other elements of the

    marketing mix

    When to testPretest

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    Taken before the campaign is implemented Can occur at any time from idea generation to final implementation Feedback is relatively inexpensive with pretesting Potential that message may not be communicated as effectively as the final product

    Post

    Designed to : 1. Determine if the campaign is accomplishing its predetermined objectives

    2. Serve as input into the next periods situational analysis Where to testLaboratory tests

    Advantage is control by the researcher Disadvantage is the lack of realism, testing bias

    Field tests Tests of the ad or commercial under natural viewing circumstances

    Methods of Measuring Advertising Effectiveness

    Concept generation and testing Conducted early in campaign development To explore the targeted consumers response to a potential ad or campaign

    i.e. Focus groups and mall intercepts Rough art, copy, and commercial testing1. Comprehension and reaction tests

    Conveying meaning intended by assessing responses1. Consumer juries

    Uses consumers to evaluate the probable success of an ad Self-appointed expert Limited evaluation of the number of ads Halo effect

    Specific ad preferences overshadowing objectivity

    Pretesting of finished ads Market testing of adsEssentials of effective testing

    Establish communications objectives Use a consumer response model Use both pretests and posttests Use multiple measures Understand and implement proper research

    5. a what is sales promotion? How it can be effectively used in marketing consumer goods?Ans:

    Definition: short term incentives to encourage the purchase or sales of a particular product or serviceObjective: Bolster/complement other promotional mix elements during a specific time period

    Targeted toward:

    Sales force Wholesalers and retailers

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    Consumers

    Objectives Consumer Promotions:

    Increase short term sales Generate product trial

    Objectives Trade Promotions: Obtaining distribution and shelf space

    Encouraging retailers to advertise the brand

    Objectives - Sales Force Promotions:

    Signing up new accounts

    Sales Promotion Methods

    Consumer Sales Promotion Techniques

    -encourage/stimulate customers to patronize a specific retail store or to try a specific product.

    Coupons:

    Usually reduce the purchase price or offered as cash. Need to state the offer clearly and make iteasy to recognize.

    Handout...Awash in Coupons...

    Looks at the volume of coupons (323 bn) and the poor redemption rate (less than 3%). Looks atmore innovative media to deliver coupons (currently over 80% are delivered via the Sundaypaper)....in store by the products, as customers exit the store based on purchases...discusseddelivering coupons to customers as they enter the store, using a card that swipes to indicate pastpurchases. Past buying behavior is the bestpredictor of future buying patterns!! Also discussed

    that they may be delivered via TV, in conjunction with an advertisement.

    Users only redeem coupons they would ordinarily purchase. 75% of the coupons are redeemedby consumers who would buy the brand already.

    Stores/marketers are honoring competitors coupons etc.Stores often don't have enough of the couponed item in stock.

    Demonstrations:

    Excellent attention getters. Labor costs are usually high.

    Frequent User Incentives:

    Major airlines, helps foster customer loyalty to a specific company. Credit card companies.Trading stamps-Co-ops back in England, foster retail loyalty.

    Blockbuster's new credit card offers company products based on card usage. Cindy Crawford"Why wait for whats coming to you" Co-Branded with immediate rewards...this is what is very

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    appealing about this card...immediate reward, as opposed to having to build up points for an airflight etc.

    Airlines have had to raise the threshold of their award programs 35,000 from 20,000, 2 freeround trip tickets due to $3+trillion liabilitiesLong Distance telephone also offer free air miles, >$25/mo = airmilesFrequent User cards are used to collect information for companies enabling them to better targettheir customers.

    Point of Purchase Display:

    Outside signs, window displays, counter pieces, display racks. 90% of retailers believe that pointof purchase materials sell products.

    Essential for product introductions. Also with 2/3 of purchasing decisions made in the store, theyare important.

    Free Samples:

    Stimulate trial of product. Increase sales volume at the early stage of theproduct life cycle andobtain desirable distribution.Most expensive sales promotion technique.Not appropriate for mature products and slow turnover products.

    Handout...With Sampling there is too a free lunch

    Discusses the pros and cons of free sampling.

    Money Refunds/Rebates:

    Submit proof of purchase and mail specific refund, usually need multiple purchase for refund.Helps promote trial use, due to the complexity of the refund, it has little impact.Customers have a poor perception of rebate offered products.Used extensively in the Auto and Computer industry.

    Premium Items:

    Offered free or at minimum cost as a bonus. Used to attract competitors customers, differentsizes of established products.Gas stations give free glasses--basics buy!! McDonalds premium items are considered collectorsitems by some!Flintstones program last year with McDonalds.Burger King with the Lion King movieLast summer the following tie-in premium programs.

    o Casper with Pepsi, Pizza Hut, Choice Hotels

    o Congo with Taco Bell

    o Batman Forever with McDonalds, Kelloggs, Six Flags, Sears

    o Pocahontas with Chrysler, Nestle,General Mills, Burger King

    http://www.udel.edu/alex/chapt10.html#microhttp://www.udel.edu/alex/chapt10.html#microhttp://www.udel.edu/alex/chapt10.html#microhttp://www.udel.edu/alex/chapt12.html#lifehttp://www.udel.edu/alex/chapt10.html#microhttp://www.udel.edu/alex/chapt10.html#microhttp://www.udel.edu/alex/chapt12.html#life
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    o Mighty Morphin with McDonalds

    Cents-off Offer:

    Strong incentive for trying a product-very similar to coupons, but are a part of the package.

    Consumer Contests and Sweepstakes:

    Consumers compete based on their analytical or creative skills. Must be accurate or you willanger customers/retailers.Sweepstakes are prohibited in some states.

    5.b. Explain the importance of public relation.

    Ans:

    Public relations involves building good relations with the companys various publics by obtainingfavorable publicity, building up a good corporate image, and handling or heading off unfavorablerumors, stories, and events.

    Importance:

    In todays volatile market having a good public relations plan is more important than ever before.Todays consumers are more intelligent than ever but theyre also more skeptical of new advertisingcampaigns, products, and approaches. Its pretty safe to say that the average consumer has been burnt byan illegitimate company on some level at least once even if only insignificantly. People dont forgetbad experiences.

    Public relations focus less on advertising and more on giving valuable information to the public usually without including a sales pitch. Its often much easier to educate an individual so that theyrecognise their own wants or needs rather than attempting to directly sell a product.

    In order for your public relations campaign to be successful you have to maintain a high level ofcredibility. This means either reaching out to the public on your own or partnering with a trusted third-party. You may want to make friends with a local news reporter willing to write articles or simply haveyour own marketing department write press releases. Other companies host public events either fundays or informational. All of these things help to bring their name into the spotlight without actuallyadvertising a specific product or service.

    Now, you cant launch a public relations campaign and then sit back to see what works and whatdoesnt. You have to carefully monitor every single aspect from events to simple clippings to findout which are drawing attention towards your organisation and which are not. Of the ones that are, youllwant to determine if the attention is positive or negative and then take action to either enhance or correctthe image you are portraying to the public.

    Public relations can be difficult, but it can also be fun. Theres nothing more rewarding than knowingthat the people you reach are walking away with valuable information whether they choose to takeimmediate action or not. Youve left an imprint in their minds and theyll eventually react!

    Objectives Promoting goodwill Promoting a product / service To give information to internal employees

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    Helps to overcome negative publicity Lobbying Give advice and council

    Publics

    Advantage Credibility

    Cost Avoidance of clutter Ability to reach specific groups Lead generation Image building

    10 Mark questions

    6. Explain the steps involved in communication process

    Communication process

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    7. write detailed essay about the organization structure of an ad agency

    Ans;

    As per American advertising agencies association, an ad agency should have the followingfeatures

    Independent organization Composed of creative and business people

    Develops, prepares and places ads It works for sellers1. Functions for the client

    Replaces the ad department Provides expert view point Brings economy and excellence It shares its rich experience2. Functions for the media

    Assures risk free business Takes away the sales job

    Undertakes the ad scheduling

    Slash down the production cost

    Organization of Ad Agency

    1.Client Relations Department Accounts executives New Business Man Merchandising Man

    2.Senderencodes ideain message

    2.Senderencodes idea

    in message

    3.Messagetravels overchannel

    3.Messagetravels over

    channel

    1.Sender hasidea

    1.Sender hasidea

    4.Receiverdecodesmessage

    4.Receiverdecodes

    message

    6.Possible additional feedbackto receiver

    6.Possible additional feedbackto receiver

    5.Feedback travelsto sender

    5.Feedback travelsto sender

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    2. Creative Department Copy writer Artist Radio & TV director Research director Production man

    3. Administrative Department Traffic personnel Media department Clerical personnel

    8. describe the major decisions involved in developing an ad program

    Ans:

    9. Explain the companies use public relations to communicate with their people

    Ans:Public relations (PR) is a field concerned with maintaining a public image for businesses, non-profitorganizations or high-profile people, such as celebrities and politicians.Applications of PR

    Crisis management

    Reputation management

    Issue management Investor relations and labour relations

    Grassroots PR (astroturf PR)Methods and tools

    Press Conference (or "news conference")

    Selection of time and place

    Selection of journalists

    Control over agenda

    Press Release (or "news release")

    Written statement distributed to the press

    Accommodating media requirements News story style

    Third person

    Quotes

    Reference to media contacts

    Aiming to appropriate gatekeeping function from media

    The Publicity Event (or publicity "stunt")

    Pseudo-events, whose sole purpose is to generate media attention

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    Accommodating media requirements

    Deadlines

    Photo-ops

    "The Circuit

    Television and radio talk show appearances

    Of PR spokesperson or client

    Tailored to reach specific audiences

    Sponsorship

    10. Explain how sales promotion campaigns are developed and implemented?

    Ans:Definition: short term incentives to encourage the purchase or sales of a particular product orserviceKey decisions when developing the sales promotion program

    Promotion choice Product choice Choice of market areas Promotion timing, duration & frequency Rate of discount, terms and conditions

    M.B.A. DEGREE EXAMINATION, NOVEMBER 2009

    ELECTIVE INTEGRATED MARKETING COMMUNICATION

    PART A (5*6=30marks)

    1.a what constraints would apply in developing an advertising campaign for a new lipstick?

    Ans:Advertising Campaign - A series of related advertisements focusing on a common theme, slogan, and setof advertising appeals.Advertising Campaign Process 1. Communication Market Analysis2. Communication Objectives3. Communications Budget4. Media Selection5. Creative Brief

    The constraints for the ad campaign for lipstick

    the ad campaign should reveal the side effects or harmfulness of the lipstick to the kids for the lipstick ads we used to go for sex appeal, which is not easily accepted by the

    audience1.b. explain the various approaches to advertisement budgeting.

    Percentage of Sales or Profits

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    The most widely used method of establishing an advertising budget is to base it on a percentage of sales.Advertising is as much a business expense as the cost of labor and should be related to the quantity ofgoods sold. The percentage-of-sales method avoids some of the problems that result from using profitsas a base. For instance, if profits in a period are low, it might not be the fault of sale or advertising.Merits

    it is simple it works on affordability it is consistent

    Demerits wrong stressing it is static in approach it ignores long range planning

    Affordability MethodAdvertising-expense budgeting method based on what a firm's owner, or marketing department,believes the firm can afford to spend on marketing. Since such budgets are not based on anydefinite objective, the firm may spend too little or too much relative to its needs.Merits

    it is practical it is simple it is flexible

    Demerits it overlooks opportunities it is short sighted it ignores the ability of advertising

    Competitive Parity MethodAdvertising-expense budgeting method based on what a brand's or firm's competitors areestimated to be spending. This method assumes the other firms have the same marketingobjectives and know what they are doing.Merits

    it respects the superior kills competitive wars it is simple

    Demerits it is not logical it is a misfit it steps up competitive wars

    Objective And Task MethodAdvertising expense budgeting method based on the (1) results to be achieved, (2) strategies andtactics required to achieve those results, and (3) costs associated with those strategies and tactics.Merits

    it is objective based it is review based it is individualistic

    Demerits it is irrelevant it is unscientific objects cannot be translated into task

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    2.a. discuss the media objectives of advertising agencies

    Ans Assures risk free business Takes away the sales job Undertakes the ad scheduling Slash down the production costAgency Relations to media Payment Published rates Prior approval Rebate and concession Terms of reference2.b. explain the classification of Copy

    Ans: Copy The language of adAd copy is all the written or spoken matter in an ad expressed in words or sentences and figuresdesigned to convey the desired message to the target consumers

    Copywriting for Print Ads Headline Subheads Body copy Slogans Seals, logos, and signatures Visual elements / illustrations Layout

    Guidelines for writing headlines

    Design Principles Unity Balance Contrast Sequence / eye movement Emphasis or proportion

    Writing Radio Copy

    Radio listeners are not active.

    Radio has been called verbal wallpaper.

    Radio can be the theater of the mind.

    Formats:

    Music Dialog Announcement Celebrity announcer

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    Writing Copy for TV Can create a mood Opportunity to demonstrate with action

    Words should not stand aloneuse visuals/special effects Precisely coordinate audio/visual Storyboard is the roadmap

    Television Advertising Formats Demonstration Problem and solution Music and song Spokesperson Dialogue Vignette Narrative

    Guidelines for Writing TV Copy

    3. a. what are the corporate objectives of advertising?

    To introduce new pdt To sustain the established pdt To help middleman

    To increase the share of market Demarket the target group Increase the public welfare

    3.b. how newspaper space is bought?

    4.a. Discuss several major steps involved in preparing a Direct MailMany businesses use direct mail as a method of acquiring new customers. Your mailing piece must be well

    written to achieve the type of response that will make the effort worthwhile, especially financially, sincepostage and printing costs make it an expensive method of advertising

    1. The opening of the letter should be treated with the same reverence as a headline. You have to grab thereaders attention quickly and make them want to keep on reading. It may be the outside of the direct mailenvelope that starts the process. If its good enough, the person tears open the envelope and begins reading.Then the headline andfirst paragraph of the letter must create the same effect. to keep the person reading.

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    2. There must be reasons to keep reading, usually in the form of some benefits. Because the person openedthe envelope, there is a free offer. Then, when reading the first paragraph, more benefits jump out; the valueof the service or product, perhaps. Put in a good benefit with each paragraph and keep the paragraphs short!

    3. Do not offer benefits that are not believable. Do not make promises you can not keep. The idea is not tomake people skeptical, but to make them see the tangible benefits that you offer are valid. To this end, bespecific. General terms usually provoke disbelief, while actual specifics are shown to have more honest-sounding appeal.

    4. Understand the product or service yourself. Would you buy it? If so, why? If you understand why you would

    buy it, you can set about convincing people using those same thoughts.

    5. Use third party affirmations, if available. If it is only your copy, it will not leave as good an impression asthe insertion of a few outside quotes from others, testifying to the effectiveness of the product or service.

    6. Simplicity sells! Short sentences. Short paragraphs. Easy words. You are not out to win the Pulitzer Prize.You only want individuals to respond to your letter. They will if they understand the benefits of doing so. Keepit simple!

    7. Be explicit with your instructions. The letter must not only detail the great benefits, but tell the personexactly what they must do to obtain them. Be specific and make it easy to respond, including a postage-paidcard or a toll-free number are usually great methods.

    8. Freebies earn responses. Giving something away usually helps the response dramatically.

    9. Convince the reader that the product or service being advertised is backed up by a strong company thatguarantees the results and benefits detailed in the letter. Readers must be convinced of the authenticity andthe ability to back up the strong comments within the letter.

    By following these 9 simple steps, you can create a profitable direct mail campaign.

    4.b. why advertisers use television media

    Ideal medium for advertising.

    Combines visual images, sound, motion and color.

    Develop most creative & imaginative ad message compared to other media

    Wide, diverse audience

    Creative and demonstrative

    Immediacy of messages

    Entertainment carryover

    Demographic selectivity5.a. state the major objectives accomplished through sampling

    Ans: Sampling is the act, process, or technique of selecting a suitable sample, or a representative part ofa population for the purpose of determining parameters or characteristics of the whole population.Objectives

    To draw conclusions about populations Taking a sample requires fewer resources than a census.

    A sample may provide you with needed information quickly There are Some populations that are so difficult to get access to that only a sample can be used A sample may be more accurate than a census

    5.b. what are the functions of advertising?

    Informing Influencing Reminding and Increasing Salience

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    Adding Value Assisting Other Company Efforts

    6. Explain the various attributes of production of television commercial.

    Ans:Writing Copy for TV Can create a mood Opportunity to demonstrate with action Words should not stand aloneuse visuals/special effects Precisely coordinate audio/visual Storyboard is the roadmapTelevision Advertising Formats Demonstration Problem and solution Music and song Spokesperson Dialogue Vignette NarrativeGuidelines for Writing TV Copy

    Use the video

    Support the video

    Coordinate the audio with the video

    Entertain but sell the product

    Be flexible

    Use copy judiciously

    Reflect the brands personality and image

    Build campaigns

    7. Explain the various components of advertising campaign.

    Ans: Advertising Campaign - A series of related advertisements focusing on a common theme, slogan,and set of advertising appeals.Advertising Campaign Process 1. Communication Market Analysis2. Communication Objectives3. Communications Budget4. Media Selection5. Creative Brief

    8. Elaborate the reasons for the growth of consumerism.

    Ans: consumerism is not limited to organized effort only but , is a social movement seeking to

    augment(increase) the rights and powers of buyers in relation to seller"Consumerism is concerned with protecting consumers from all organisations with which there isexchanged relationship. It encompasses the set of activities of government, business, independentorganisations and concerned consumersIn our India the existing markets of products run in shortage , adulteration & black market prices. Theprofit making attitude of the business failed to discharge social responsibilities of maintaining fair price,quality of goods & providing services etc.For example:-

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    1. tooth paste tube filled with air.2. Adulteration in PURE GHEE etc.

    To over come from that type of problem consumerism originate. Some problems of consumers exploitation:-1. Pricing2. Adulteration3. Duplication4. Artificial demand5. Ignore standard6. Advertising7. Product risk8. Warranty and services

    Why consumers buy more:-1. Addiction2. Identity3. Lifestyle4. Save money as promised by the markets

    Why companies try to sell more and more :-1. To gain from economy of scale2. It costs less to retain a customer than to capture a new one

    Importance of consumerism:-1. Stop unfair trade practices2. Provide complete & latest information3. Discourage anti-social activities4. Implementation of consumer protection laws5. Protect against exploitation Rights of consumers:-1. Right to be informed2. Right to safety3. Freedom to choose4. Right to consumer education

    5. Right to claim against seller6. Right to secure ecological balance and pollution-free environment Consumer responsibilities:-1. Critical awareness2. Action3. Social responsibility4. Environmental awareness5. Solidarity6. Consumer protection act in India:-

    1. Consumer protection act, 1986.A) Replacement of defective goods.

    B) Repair or removal of defects.C) Repayment of price.D) Compensation for loss etc.2. Drugs & cosmetics act, 1940.3. Prevention of food adulteration act, 1954.4. MRTP(monopolies & restrictive trade practices) act, 1969.5.Essential commodities act,1955.

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    9. Discuss the Business Advertisers Communication Mix

    Ans:"Advertising is any paid form of non-personal presentation and promotion of ideas, goodsand services through mass media such as newspapers, magazines, television or radio by anidentified sponsor".

    Personal selling is oral communication with potential buyers of a product with the intention ofmaking a sale.

    Sales promotion describes incentives and rewards to get customers to buy now rather than later Public relations: firms communications and relationships with its various publics

    10. Explain the various kinds of Public Relations Advertising

    Ans: Public relations involves building good relations with the companys various publics byobtaining favorable publicity, building up a good corporate image, and handling or heading offunfavorable rumors, stories, and events.

    Public Relations Functions Press relations or press agency Product publicity Public affairs Lobbying Investor relations DevelopmentPublic Relations Tools News Speeches Special events Buzz marketing Mobile marketing Written materials Audiovisual materials Corporate identity materials Public service activities

    Company Web site

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    M.B.A. DEGREE EXAMINATION, NOVEMBER 2010

    ELECTIVE INTEGRATED MARKETING COMMUNICATION

    PART A (5*6=30marks)

    1.a. explain the steps in selling process.Ans: Major Steps in Effective Selling

    1.b. bring out the difference between personal selling and advertising

    Ans:"Advertising is any paid form of non-personal presentation and promotion of ideas, goodsand services through mass media such as newspapers, magazines, television or radio by anidentified sponsor".

    Personal selling is oral communication with potential buyers of a product with the intention ofmaking a sale.

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    2.a. write the details of the classification of advertisement.

    Ans: The Target - Consumer or Business:

    An ad is either business-to-consumer or Business-to-business

    The Type of Demand - Primary or Selective: Primary-demand advertising is designed to stimulate demand for a generic category of a

    product Selective-demand advertising is intended to stimulate demand for individual brands

    The Message - Product or Institutional: Product advertising focuses on a particular product or brand Institutional advertising presents information about the advertisers business or tries to

    create a favorable attitude - that is, build goodwill - toward the organization The Source - Commercial or Social: Whereas the focus is normally on commercial messages the most valued form of

    endorsement is social, for instance, when a trusted friend recommends a product

    Word-of-mouth advertising (technically does not fit the definition of advertising) WOM recommendations are highly credible because the recommender has only the best

    interests of the recipient as the motivation for sharing an opinion Firms try to stimulate or simulate WOM endorsements The Internet has generated increasing interest in WOM (Viral Marketing); seeing the

    potential to reach audiences in a new way, many businesses are providing information tobloggers and podcasters and even creating websites that have the appearance of blogs

    2.b. discuss about the preparation of advertising budget

    Ans: Percentage of Sales or ProfitsThe most widely used method of establishing an advertising budget is to base it on a percentage of sales.Advertising is as much a business expense as the cost of labor and should be related to the quantity ofgoods sold. The percentage-of-sales method avoids some of the problems that result from using profitsas a base. For instance, if profits in a period are low, it might not be the fault of sale or advertising.Merits

    it is simple it works on affordability it is consistent

    Demerits wrong stressing it is static in approach it ignores long range planning

    Affordability MethodAdvertising-expense budgeting method based on what a firm's owner, or marketing department,believes the firm can afford to spend on marketing. Since such budgets are not based on anydefinite objective, the firm may spend too little or too much relative to its needs.Merits

    it is practical it is simple it is flexible

    Demerits it overlooks opportunities it is short sighted

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    it ignores the ability of advertising

    Competitive Parity MethodAdvertising-expense budgeting method based on what a brand's or firm's competitors areestimated to be spending. This method assumes the other firms have the same marketingobjectives and know what they are doing.Merits

    it respects the superior kills competitive wars it is simple

    Demerits it is not logical it is a misfit it steps up competitive wars

    Objective And Task MethodAdvertising expense budgeting method based on the (1) results to be achieved, (2) strategies andtactics required to achieve those results, and (3) costs associated with those strategies and tactics.Merits

    it is objective based it is review based it is individualistic

    Demerits it is irrelevant it is unscientific objects cannot be translated into task

    3.a. explain the advantages and limitation of different advertising media

    Ans:Newspapers

    Magazines

    Radio

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    Tv

    3.b.discuss about the media planning and scheduling in advertising Geographic coverage

    The media mix

    Target market coverage

    Scheduling

    Reach versus frequency

    Creative aspects and mood

    Flighting:

    Wave method or the flighting method is another kind of scheduling. In flighting, advertisements arebunched with the intention of providing a concentrated impact is another method of creating anadvertising schedule. The phrase advertising flight describes the time when commercials are aired.When flighting is used in relation to a scheduling technique, it refers to a method that has advertising

    going on and off the air. The advantage of the flighting technique is that it allows a campaign that doesnot have funds for running spots continuously to conserve money and maximize the impact ofthe commercials by airing them at key strategic times during the campaign.

    Continuous Campaign:Another approach mostly associated with reminder campaigns, is to extend the time frame of theadvertising message over a long period. The campaign provides continuity of the message, although atthe cost of the impact. These continuous patterns are often used for mature products, where reminder

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    advertising is appropriate.Over a long term .this strategy is more appropriate for products and serviceswhere the demand is constant or there is a long purchase cycle.There can be perfect continuousadvertising, rising continuity or falling continuity.

    Pulsing Campaign:A compromise between the burst and the continuous strategy is the development of the pulsingcampaign. Here a comparatively low level of media activity is maintained over long period of time, withperiodic increases in the expenditure patterns. It is often associated with seasonal or other influences onbuyer activities.

    4.a. explain in details about the ad appeal

    Ans: The central message to be used in the adTypes of appeals Rational Emotional Moral

    Rational appeals are those directed at the thinking process of the audience. High Quality Low Price Long Life Performance, Ease of use Economy, Re-sale Value

    Emotional appeals are those appeals, which are not preceded by careful analysis of the pros and cons ofmaking a buying. Emotions are those mental agitations or excited states of feeling which prompt us tomake a purchase

    Negative Emotional Appeals Positive Emotional Appeals Sex Appeals

    Moral appeals are those appeals to the audience that appeal to their sense of right and wrong. These are

    often used in messages to arouse a favorable response to social causes, such as prohibition, adultliteracy, social forestry, anti-smuggling and hoarding, consumer protection, equal rights for women,social responsibility projects of corporations, rural development, siding weaker sections of society,employment generation, and so on.

    5.a. how a dealer can be promoted by the promotion policy.

    Ans: Trade Promotion Tools Discounts (also called price-offs,

    off-list, and off-invoice discounts)

    Allowances

    Advertising allowances

    Display allowances

    Free goods

    Push money

    Specialty advertising items5.b.Mention the objectives and tools of sales promotion

    Ans:Sales Promotion

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    Sales Promotions are short-term incentives to encourage the purchase or sale of a productor service.

    objectives of sales promotioni. To introduce new productsii. To attract new customers and retain the existing onesiii. To maintain sales of seasonal productsiv.To meet the challenge of competitionConsumer Promotion Tools

    Trade Promotion Tools Discounts (also called price-offs,

    off-list, and off-invoice discounts)

    Allowances

    Advertising allowances

    Display allowances

    Free goods

    Push money

    Specialty advertising items

    Business Promotion Tools Includes many of

    the same toolsused in tradeand consumer

    promotions Two additional

    tools:

    Conventions& trade shows

    Sales contests6) Explain the various components of ad campaign

    Ans: Advertising Campaign - A series of related advertisements focusing on a common theme, slogan,and set of advertising appeals.Advertising Campaign Process 1. Communication Market Analysis

    2. Communication Objectives3. Communications Budget4. Media Selection5. Creative Brief

    7. Write an essay on economical and social effects of advertising.

    Ans:Economic Effect Of AdvertisingExplicit role of advertising

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    Guide to prospective buyers Primary and selective demand Product differentiation Encouraging innovation Propensity to consume Financial support to mediaIndirect role of advertising Lowering the prices Advertising and competition Effect on product quality Increase in economic activities and employment Effect on business cycleCriticism of advertising Product proliferation Inefficient manufacturers stay in business Barriers to entry Advertising and propensity to consumeSocial issues Deception Puffery Manipulation TasteControversial effect Materialism Promoting stereotypes Advertising to children Advertising and sensitivity to price Advertising creates insecurity8. Identify the availability various types of advertising media.

    9. Briefly discuss about the career options available for the people specialized in advertising

    Ans: Advertising is the means of informing as well as influencing the general public to buy products orservices through visual or oral messages. A product or service is advertised to create an awareness in theminds of potential buyers. Some of the commonly used media for advertising are T.V., radio, websites,newspapers, magazines, bill-boards, hoardings etc. As a result of economic liberalization and thechanging social trends advertising industry has shown rapid growth in the last decade.

    Advertising is one of the aspects of mass communication. Advertising is actually brand-building througheffective communication and is essentially a service industry. It helps to create demand, promotemarketing system and boost economic growth. Thus advertising forms the basis of marketing.

    Advertising plays a significant role in today's highly competitive world. A career in advertisement isquite glamourous and at the same time challenging with more and more agencies opening up every day.Whether it's brands, companies, personalities or even voluntary or religious organizations, all of themuse some form of advertising in order to be able to communicate with the target audience. The salarystructure in advertising is quite high and if you have the knack for it one can reach the top. It is an idealprofession for a creative individual who can handle work-pressure.

    http://career.webindia123.com/career/options/media_entertainment/advertising/intro.htmhttp://career.webindia123.com/career/options/media_entertainment/advertising/intro.htm
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    Today, new areas are emerging within advertising like event management, image management, internetmarketing etc. Event management wherein events are marketed, Image management wherein a aparticular profile of an individual or an organization is projected. Internet marketing has also broughtabout a lot of changes in advertising as Internet means that one is catering to a select group of audiencerather than a mass audience.

    Job Prospects & Career Options

    Career opportunities in advertising include openings in private advertising agencies; advertisingdepartment in private or public sector companies; in advertising sections of newspapers, journals,magazines; commercial section of radio or television; market research organisations etc. One can also dofreelancing.

    Advertising field offers a range of lucrative, interesting careers. The job in this field is categorised intotwo, executive and creative. Executive side include Client Servicing, Market Research and MediaResearch. Creative side consist ofcopywriters, scriptwriters, visualisers, photographers and typographers.

    The executive department understands client needs, find new business and retain existing business,selects the appropriate media, analyses timing and placement of advertisements and negotiate thefinancial aspects of the deal. Creative department creates the advertisement copy. They verbalises andvisualises the specific need of the client.

    As ad films are also a part of film making career options of film are related to this field.

    Executive Department

    Client Servicing - The Client Servicing department is the link between the client and the agency. It is animportant part of any advertising firm like what the heart is to the body. This department is responsiblefor meeting prospective clients and getting business for the company. It involves a study of the client,the product and the market; an analysis of consumer behaviour and marketing; a knowledge of allavailable media and their cost effectiveness, and a strategic plan to be presented to the client. Those inclient servicing must therefore interact with clients, gather information, oversee research wherenecessary, gauge consumer attitudes and based on this, work along with the various departments of theagency to formulate the most appropriate and effective advertising strategy within the specified budget.

    To be an effective client-servicing person, the candidate has to have a thorough knowledge of the client'sbusiness and also know his weak points so that, through advertising and communications, the gap can beminimised.

    An accounts executive who works in the client servicing department takes care of all the monitorydealings. He should know the most effective way to advertise clients product or service i.e the media andtheir cost effectiveness. Account executives should also have an idea about market research and target

    audiences.

    Market Research : Every good ad plans, start with research. This is the department which surveys themarket and analyses and studies consumer behavior about a product or service. They are involved withcollection of data- information about the consumer, the market, existing competition and so on. Theresearch studies provide basic information to the manufacturer, for planning a new product.

    http://career.webindia123.com/career/options/media_entertainment/advertising/jobprospects.htmhttp://career.webindia123.com/career/options/media_entertainment/advertising/jobprospects.htmhttp://career.webindia123.com/career/options/media_entertainment/advertising/jobprospects.htmhttp://career.webindia123.com/career/options/media_entertainment/advertising/jobprospects.htm
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    If you are a MBA or hold a degree in statistics/operations research, you can go for market researchingjobs.

    Media Planning/Research : Responsibility of media planning department starts at the point when the adis complete. Media Department is responsible for the planning, scheduling, booking and purchase ofspace and time (in newspapers, magazines, radio and TV, and outdoor hoardings). The mediadepartment must therefore devise the most effective use for an advertising budget to effectively andeconomically transmit a campaign message to the target audience. This department consists of thefollowing:

    Media Planners who decide the different media where the ads would be featured in order to getmaximum viewership.

    Media Buyer has to negotiate to buy space in the Press, or time on electronic media at the best rates forwhich he has to understand the buying as well as selling trends.

    Creative Department : The Creative department designs and conceptualizes the advertisement. Thisconsist of copywriting department and art department. Copywriting department works on text for the adand themes for campaign. Art department visualises the campaign.

    Copywriters : The Copywriter evolves a theme for the campaign and provides the text foradvertisements. He is responsible for making the ad look attractive and delivering the message to thepoint. They work out the campaign slogan, jingles, scripts and promotional literature of the product orservice as well as proposals, concept notes and film treatments. They are also expected to edit all textualmatter for factual, syntax and typesetting discrepancies before it goes into production. Some timesspecialists called Typographers are appointed for making the format of textual matter who give adviseon fonts, lettering etc.

    Copywriters need to have a flair for writing backed up by the knowledge of advertising and oralcommunication skills, to become successful. They also need to have skill in analysing clients' needs, andresearch skills for finding out about the products and services they are helping to sell. Problem-solvingand time-management skills are important.

    Visualisers : The Visualisers work on the visual concepts and decide how the ad shall eventually look.They do the overall layout of message including graphics, sketching etc.Must be artistic. A degree/diploma in commercial arts or fine arts as well as the knowledge of designingsoftware like Photoshop, Pagemaker, Corel Draw etc. are often the required qualifications.

    Photographers : Photographers should have an idea about angles and lighting effects. Good technicalability and knowledge of cameras and lenses is essential.

    10. Write an essay on planning and implementation of advertising and sales promotion.

    Ans: SEVEN BASIC STEPS INPLANNING THE AD CAMPAIGN1. Appraise your advertising opportunity:- Is there a favorable primary-demand for the product? Are people willing andable to purchase my product at a price that will return me a reasonable profit?- Are there opportunities for product differentiation?- Can I identify any hidden qualities which might serve as the focal point of an adcampaign?

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    - Are there any powerful emotional buying motives attached to my product?- What proportion of the people can afford to buy my product and can I reach themwith ads and product?2. Analyze your market:- Do I have sufficient information to define closely thetarget market?- Am I aware of the factors of that affect demand for my product?- What do I suspect will be the competitive response to my ad campaign?- Are there any legal constraints surrounding my advertising certain products orservices?- Can I afford advertising? If so, how much is appropriate considering my marketsituation?- Do I have the capabilities to produce sufficient volumes of my product if salesincrease dramatically because of advertising?3. Determine your advertising objectives -- should contain:- What is the basic message I want delivered?- Who is the audience I want reached?- What do I want to happen because of the ad campaign?- What are the specific criteria which will be used to measure the success or failureof the campaign after it is completed?4. Establish you budget and the necessary control systems:- What kind of balance between reach, frequency, and continuity will be mosteffective?**reach: total number of different people or householdsto whom your message is delivered;**frequency: number of times your message is deliveredwithin a given period of time;**continuity: length of time your media schedule will run5. Develop your strategy:- Which media will deliver the most effective advertising messages to thegreatest number of prospects at the lowest possible cost?

    - What kind of message should be created? To answer this consider thefollowing:

    What business goals do you want to accomplish? What kind of people do you now sell to? What kind of people should you be selling to? How do people in your target market currently think, feel, and believe about your product, your

    company, and your competition?

    What do you want these people to feel, think, and do? What key thought can you put into these peoples' minds to make them think, feel, believe, or do

    what you would like?

    What tone of voice will get those people to hear and believe you?

    What is the basic theme that needs to be included as it appears, at least by implication, in all yourads and publicity.6. Coordinate advertising with other promotional and marketing methods:- What other types of advertising and marketing efforts am I currently involved in?- How will these other activities affect my ad campaign?7. Evaluate advertising results:- Have I done adequate pretesting before investing substantial money in a majorcampaign?

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    - What criteria will I use to judge the effectiveness of my advertising expendituresafter the campaign is completed?- What have I learned that will help insure that future campaigns will be moreeffective?Sales Promotion Planning GuidelinesPlanning process starts with situation analysis. To start with, the promotion planners must first considerthe corporate policy with regard to sales promotion. Joseph S. Mair has recorded one such policystatement in Handbook of Sales Promotion, ed. Stanley M. Ulanoff. The policy says:1. Sales promotion is an integral part of the marketing mix.2. Sales promotion should be used as an offensive weapon in the brands marketing arsenal,not merely as a defensive reaction when a problem arises.3. Sales promotion should extend and reinforce the brands advertising and positioning,whenever possible.4. Sales promotion should be developed as campaigns, not as single, unrelated events.5. Good sales promotions are built upon sound strategic planning.There are three types of promotions that can be used, singly, or in combination:(a) Consumer promotion(b) Trade promotion, and(c) Sales force promotionThere are two major approaches for consumer and trade promotions:(1) Same for less, and(2) More for the sameResellers perceive inventory risk associated with stocking or not stocking the product on promotion. Thefollowing conditions may be the cause of risk perception:

    When the consumer demand for the product is unpredictable.

    When the inventory holding costs are high.

    When the product is seasonal.

    When the product is likely to go out of fashion quickly.