Kristu Jyoti College of Management & Technology

Changanacherry
Department of Management Studies

Module 4

CBCS B.B.A. PROGRAMME THIRD SEMESTER

Marketing Management

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 MODULE 4
PROMOTION

ADVERTISING

The word ‘advertising’ comes from the Latin word ‘Advertere’. Ad meaning ‘to’ and
vertere meaning turn’. So advertising means turning of attention to something, or
drawing and calling attention to something. When a company designs a product and
wants to sell it in the target market, it needs to communicate with the customers
about the product and its features. Mass communication is required to reach the
customers in the target market. Advertising is the best way to make such mass
communication in the target market. It aims at benefiting the producer, educating the
consumer and supporting the salesmen. It is a link between the producer and the
consumer.

Advertising is considered as a non-personal form of communication used in marketing

to promote goods and services in the target market. It is highly useful in covering a
large target market where customers are scattered over vast area. Advertising helps in
reaching the customers quickly. The ultimate aim of advertising is to increase sales by
showing the goods and services in a positive light. Advertising acts as important
marketing tool for presentation and promotion of ideas, goods and services. It is
designed to make an impression on the targeted audience.

MEANING OF ADVERTISING

1. It is a mass communication reaching a large group of consumers.

2. It is non-personal communication, because it is not delivered actual person, nor
addressed to a specific person.

3. It is a commercial communication because it assures the advertiser a long business life with
profitable sales.
4. The communication is speedy, permitting an advertiser to speak to millions of buyers in few
hours.
5. Advertising is identified communication. The advertiser shows his name in advertisement for the
purpose of publicising his identity.

DEFINITIONS
According to William J. Stanton, “advertising consists of all the activities involves in presenting to a
group, a non-personal, oral or openly sponsored message disseminated through one or more media
and is paid /or by an identified sponsor.”
As per American Marketing Association, “advertising is any paid form of non-personal presentation
and, promotion of ideas, goods services by an identified sponsor.

NATURE OF ADVERTISING

1. Persuasion and Exchange

The nature of advertising is persuading and attracting customers who bring in money for

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 exchange of the product or service. Advertisements aim to persuade customers in a certain way.
The basic nature of advertising is persuasion and exchange.

2. Mass communication
basic purpose of advertising is to give information, to attract attention create awareness and finally
to influence the buying behavior of consumers. It facilitates mass communication of products
goods and services. Goods and services.
3. Dependence on media
For advertising, advertisers use various media favored by the target audience. Traditionally media
such as television, radio, newspaper were used for advertising. But in the modern times, media
such as internet and mobile phone are also used by the advertisers. Networking sites are the focus
of most of the companies for online advertising.

4. Paid form of communication

Advertising is a form of paid communication. The firm has to pay the media for advertising its
products.
5. Non-personal presentation
Advertising is non-personal in character as against salesmanship which is personal (face to face
communication). In advertising, the message is communicated to all and not to any particular
individual. This rule is applicable to all advertising media.
6. Existence of a Sponsor
Sponsor is a person who pays for the advertisement. He identifies and discloses the ideas, message
and information to be advertised.
7. Identifiable
In advertising, the sponsor (advertiser), message and presentation can be recognized by receivers
and customers.
8. Target oriented
Specific market or specific segment of consumers can be selected for advertising. For example,
children in the case of toys and ladies in case of cosmetics. The selection of a specific market is
called target market. Advertising becomes effective when it is target oriented. The waste in
advertising can be minimized through such target oriented advertising.
9. Art, Science and Profession
Advertising is an art because it needs creativity for improving its effectiveness. Advertising is a
science because it has certain principles rules. Advertising is treated as a profession because there
are professional bodies the field of advertising and codes of conduct to the activities of its
members.
10. Element is marketing mix
Advertising is an important element in marketing mix. It supports sales promotion efforts of the
manufacturer and makes positive contribution in sales promotion. Marketing firms spend large
amount money for advertising.
11. Creativity
Creativity is the essence of advertising. It is considered as a tool presenting a product in an artistic,
attractive and agreeable manner. Creativity can be introduced by creative people (professionals)
in the field of advertising. They innovate, introduce and new techniques advertising.
12. Controlled
The time, place, message and direction of an advertisement are controlled by the advertiser.
Effective controlling makes advertisement purposive and productive.

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 OBJECTIVES OF ADVERTISING

1. Launching a new product (Informative)

A new product requires warm introduction in the target market. The company has to give all
the relevant information about the product the potential customers about the new product and
thereby builds a base for it in the target market.
2. Trial objectives
Companies usually work for this objective in the introduction stage of a product.
Advertisements in this stage try to convince the customers to buy the new product. Companies
use attractive ads to catch the attention of the customers and purchase the product for trials.
3. Continuity
This objective is concerned about maintaining the existing customers. Companies usually keep
on bringing changes in their ads so that the existing buyers keep buying their products.
4. Getting Attention :
Getting public attention is a major objective of advertising. For highly readable prints, colours,
pictures, Images, drawings, diagrams, photos of celebrities, statements and captions are used
by the advertisers. Different types of sounds and songs are also used by the advertisers in radio
and television ads to attract the attention of the people advertisers in radio and television ads to
attract the attention of the people.
5. Creation of Demand (Persuasive)
Getting public attention is a major objective of advertising, For this, highly readable prints,
colours, pictures, Images, drawings, photos of celebrities, statements and captions are used by
advertisers. Different types of sounds and songs are also used by informing them about its
qualities and benefits.
6. Prompting immediate action:
Ads try to lead people to immediate action (buying of a product). For example, a gift coupon or
a discount offer in an ad stimulates people to purchase the product.
7. Replacing Lost Customers (Switching back)
This objective is for the companies who want their previous customers back, who have switched
to their competitors. People may change their brand preferences. But companies by adopting
new advertisement strategies can bring back their previous customers.
8. Reminds the public (Reminder)
objective is maintained by companies who want to attract customers of their competitors. They
adopt special advertisement strategies to influence the customers of the competitors to switch
their existing brands.
9. Reminds the public (Reminder)
Advertisement reminds the public about the existence of products the market. It tries to
reinforce the previous sales promotion by keeping the name of product in the market. This
influences the consumers in their purchase decisions.
10. Facing the Competition:
Advertising aims at defeating the challenges posed by the in the target market. Under
competitive situations, it to build up brand image and brand loyalty and when customers are
loyal to the product it is difficult for the competitors to change it.
11. Improving Goodwill :
The objective of advertising is to build a unique image of the product in the target market. This,
in turn, increases the market accessibility and goodwill of the product in the target market.

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12. Informing the Changes to the Customers:
Whenever changes are made in the prices, channels of distribution or in the product by way of
any improvement in quality, size, weight, brand, packing, etc., they must be informed to the
customers. Advertising aims at informing these changes to the customers in the right time.
13. Counterbalancing competitor’s advertising:
Advertising is unavoidable to defend against competitor’s advertising. When competitors are
adopting intensive advertising as their promotional strategy, it is necessary to follow similar
practices to deactivate its effects in the market.
14. Preventing the entry of similar products :
The aim of advertisement is to build monopoly for a product in the target market. This will help
the company to prevent the entry of similar products in the market.
15. Supports salesman
goal of advertising is to support the efforts of sales personnel their selling efforts. They get ready
buyers at the business centers because of the impact of ads.

FUNCTIONS OF ADVERTISING

1. Goal setting
Understanding and defining the specific objectives of advertising the base of advertising. All
ads try to meet the defined objectives of advertising. The objectives of advertising may be
informative, persuasive, reminder, trial, continuity, switching back, facing attention seeking,
brand switch, prompting action or barring new entrants. Spending money on advertising
without clear goals is a waste of money, time and effort. It may also harm the business by
communicating wrong message to the customers. So goal setting is an important area of
advertising.

2. Message creation:
Message is considered as the ‘flesh’ of advertising. It attempts to communicate the audience
what the advertiser wants through words, images or sounds. Message reveals the features,
uses and benefits of the product. The act of generating a message is the creative aspect of
advertising. A message is generated by the imagination of those responsible for developing the
message.

3. Mass communication:
Message creation is meaningless, if it is not communicated to the targeted audience. Mass
communication is the intrinsic part of advertising. It refers to the mass generation and
dissemination of product related messages by the company to a large, heterogeneous and
anonymous mass of people in the target market. Mass communication is possible only via
different media of advertising.

4. Media selection:
The effectiveness of a well-designed advertising message depends upon when and where it is
communicated. Advertising is effective when it is made at the right time through the right
medium. Conveying a right message through a wrong medium at the wrong is a waste of
resources. Commonly used media for advertising are T.V., radio, websites, newspapers,
magazines, bill-boards, hoardings etc. Media selection is the crux of the advertising.

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 5. Advertising agency:
An advertising agency (ad agency) is a specialized institution which offers professionalized
advertising services to the clients. The business an ad agency is creating, planning and
managing advertisement on behalf of its clients. Selection of a professional ad agency an
important aspect of advertising, if a company lacks the expertise in advertising.

6. Monitoring and evaluation:

Monitoring and evaluation are the two major aspects of advertising. Continuous monitoring is
necessary to evaluate the effectiveness of advertising. It will help the advertiser to make a
cost-benefit analysis of advertising. A systematic monitoring and evaluation of the advertising
activities gives information regarding the quality of the message, media and the performance
of the advertising agency. It gives valuable inputs to decisions regarding correction and
modification in the advertisement strategy of a company.

ADVERTISING Vs MARKETING

ADVERTISING MARKETING
It’s a paid, public, non-personal announcement ofMarketing
a is the sum total of all activities
persuasive message by an identified sponsor. performed to facilitate the exchange between
the company and the consumers.
It’s a component (subset) of the marketing Marketing encompasses conceptualisation of a-
process. It is just one of many marketing product, right from research to designing to
activities. facilitate the selling of products or services to
customers.
Advertising is the act of calling public attention Marketing uses advertising to facilitate the
to a product or service. selling of products or services to customers.

The goal of advertising is mass communication The goal of marketing is to deliver value to
of the features and benefit of a product or customers and satisfy their needs in a way that
service. benefit the company and its stakeholders.

The major concerns of advertising are goal Marketing covers broader range of
activities
setting, mass communication, media selection, such as product research, pricing, distribution,
selection of advertising and agency and promotion and customer relations.
evaluation.

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 IMPORTANCE OF ADVERTISING

1. IMPORTANT TO CUSTOMERS:
1) Offers valuable information.
2) Promotes choice.
3) Convenience.
4) Education of consumers.

2. ESSENTIAL ELEMENT OF MARKETING

1) Product launching
2) Product information
3) Demand creation
4) Price information
5) Place information
6) Face competition
7) Advertising and Packaging
8) Advertising and Positioning

3. SIGNIFICANT ROLE IN THE SOCIETY

1) Employment generation
2) Higher standard of living
3) Sustains the media
4) Incentive to work
5) Art and culture
6) Entertainment

TYPES OF ADVERTISING

1. PRODUCT ADVERTISING:
It is concerned with conveying information about and selling a product or service. Most
advertising is product advertising, designed promoting the sale or reputation of a particular
product or service the organization sells. Product advertising is of three types, viz.
1) Informative advertising:
This form of advertising is used for the promotion of a new type of product to develop an
initial demand. It is usually adopted during the introductory stage of the product lifecycle. 2)
2. Persuasive advertising (Attractive):
Persuasive advertising is followed to develop demand for a particular product or brand. It is a
type of promotion used in the and maturity period of the product life cycle.
3) Reminder advertising:
The goal of this type of advertising is to reinforce previous promotional activity by keeping the
brand name in the target market. Is used in the maturity period as well as throughout the
declining phase of the product life cycle.

2. ADVERTISING BASED ON AREA OF OPERATION

1) Local advertising
This type advertising is adopted by companies which restrict their marketing efforts to a
limited area. For example, advertising covering particular state region.

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2) National advertising
Some companies select the entire nation as the target market for their products. In such
situation, they adopt a nationwide advertisement campaign. This is known as national
advertising.
3) Global advertising
This type of advertising is required when the marketing efforts of a company crosses the
geographical boundary of a nation. Multinational companies treat the whole world as their
market.

3.ADVERTISING BASED ON TARGET MARKETS

On the basis of the target markets or the types of people who would receive the messages of
advertisements, advertising can be classified into four types;
1) Consumer product advertising :
The target of this advertising is to impress the ultimate consumers. An ultimate consumer is a
person who buys the product or service for his personal use. This type of advertising is done
by the manufacturer or dealer of the product or service. For example, of Lux soap, Close-up
toothpaste etc.
2) Industrial product advertising:
This is also known as Business-to-Business Advertising. This is done by the manufacturers or
distributors of industrial products. It is directed towards the industrial customers.

3) Trade advertising :
This is done by the manufacturer to persuade wholesalers and retailers to sell his goods.
Different media are chosen by each manufacturer according to the nature of the product and
the market. It is designed for wholesalers and retailers who can promote and sell the product
concerned.
4) Professional advertising:
This advertising aims at influencing the professionals in a particular trade or branch. These
professionals recommend or prescribe the products to the ultimate buyer. Professionals like
doctors, and architects are the prime targets of such manufacturers.
5) Financial advertising:
Banks, financial institutions, and corporate firms use advertising collect funds from markets.
They publish prospectus for facilitating subscription of the shares by the public.

4. ADVERTISING BASED ON THE MEDIA

1) Audio advertising
It is done through radio, Public Address System (Microphone, Amplifier and Loud Speakers)
and vehicle announcements.
2) Visual advertising
It is done through store displays, flux boards, sign boards, leaflets, cloth banners, brochures,
electronic hoardings, simple hoardings, running hoardings etc.
3) Audio-visual
It is done through cinema slides, movies, video clips, TV advertisements etc.
4) Print advertising/ Written advertising
It includes advertisements through newspapers, magazines, brochures, pamphlets, handbills,
posters etc.

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5) Internet advertising
The World Wide Web is used extensively to promote products and services of all types.

SOME OTHER TYPES OF ADVERTISING

1. Outdoor Advertising :
covers advertisements through billboards, stalls (best example is stalls or booths in busy
streets by mobile phone companies), and several events and tradeshows organized by the
company.
2. Broadcast advertising:
It includes advertisements over Television, Radio and the Internet.
3. Covert (Hidden) Advertising:
Advertising spreads information and encourages consumers to purchase products. Such
advertising leads to the creation of new demand. It helps to create new demand from non-
users.
4. Surrogate Advertising (Indirect advertising) :
It occurs in cases where advertisements of certain products are permitted by the law. Certain
cigarettes and alcohol companies this type of advertising. They indirectly remind people about
their brands by advertising other products having the same brand names.
5. Celebrity advertising:
Most companies use the popularity and fame of film stars, sports stars and other public
figures in advertising. Companies choose certain celebrities as their brand ambassadors. For
example, film star Mammootty is the brand ambassador of the ‘South Indian Bank’.

MERITS OF ADVERTISING
1. Merits to Manufacturers
2. Merits to Middlemen
3. Merits to Salesmen
4. Merits to Consumers
5. Merits to the Society

1. MERITS TO MANUFACTURERS
1) Large scale production and marketing :
Advertising is useful tool of market communication. It gives information to consumers and
encourages them to purchase more. Manufacturers can expand their production as a result of
higher market demand created through advertising.
2) Introduction of new products:
Advertising facilitates the introduction of new products. Through advertising, information
about new products can be given to the prospective buyers. This facilitates the sale of new
products in the market.
3) Creates new demand:
Advertising spreads information and encourages consumers to purchase products. Such
advertising leads to the creation of new demand. It helps to create new demand from non-
users.
4) Builds brand image:
Manufacturers use advertising to create distinct image for their product in the target market.
The brands are made popular through advertising. As a result, consumers develop loyalty
towards a specific brand.

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5) Reduces cost of production:
Advertising creates demand and promotes sales. This enables a manufacturer to conduct
production on a large scale. This leads to reduction in the cost of production and distribution.
As a result, the profit margin of the manufacturer increases.
6) Facing competition:
Manufacturers can face market competition effectively and can his products popular through
advertising. He can remove is understanding among consumers about his products through
appropriate advertising.
7) Goodwill builder:
A manufacturer can build up goodwill and good image in the world and also among the
consumers through advertising. The Social welfare programmes and community service
activities can be given wide publicity through advertising. The progress of the organisation
can be brought to the notice of the public through advertising.
3) Creates new demand:
Advertising spreads information and encourages consumers to purchase products. Such
advertising leads to the creation of new demand. It helps to create new demand from non-
users.
4) Builds brand image:
Manufacturers use advertising to create distinct image for their product in the target market.
The brands are made popular through advertising. As a result, consumers develop loyalty
towards a specific brand.
5) Reduces cost of production:
Advertising creates demand and promotes sales. This enables a manufacturer to conduct
production on a large scale. This leads to reduction in the cost of production and distribution.
As a result, the profit margin of the manufacturer increases.
6) Facing competition:
Manufacturers can face market competition effectively and can his products popular through
advertising. He can remove misunderstanding among consumers about his products through
appropriate advertising.
7) Goodwill builder:
A manufacturer can build up goodwill and good image in the business world and also among
the consumers through advertising. Social welfare programmes and community service
activities can given wide publicity through advertising. The progress of the Organisation can
be brought to the notice of the public through advertising.

2. MERITS TO MIDDLEMEN
1) Easy sale of the products is possible since consumers are aware of the product and its
quality.
2) It increases the rate of the turn-over of the stock because demand is already created by
advertisement.
3) It supports the selling activities.
4) It ensures more economical selling because selling costs are reduced.
5) It gives them all relevant information of products.

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3. MERITS TO SALESMEN
1.It is easy for the salesmen to introduce a product to the consumers because the
manufacturer has already advertised it informing the consumers about its features and
benefits.
2) Advertising prepares necessary ground for a salesman to begin his work effectively.
3) The contact established with the customer by a salesman is made permanent through
effective advertising because is assumed of the quality and price of the product.
4) The salesman can evaluate the effectiveness of advertising when he makes direct contact
with the consumers.
4. MERITS TO CONSUMERS
1) Information and guidance:
Consumers get information and guidance from advertising. It helps .hem to know where and
when the products are available. This reduces their shopping time. Consumers can study the
advertisements of all products in the market and select the products which are suited for
them.
2) Acts as reminder:
Advertising acts as a reminder to consumers. It reminds them about the products to be
purchased.
3) Comparison:
Advertising provides an opportunity to the customers to compare the merits and demerits of
similar products.
4) Assurance of quality and price:
Advertising highlights the quality and price of products. This forms an indirect guarantee to
the consumers of the quality and price.
5) Special attraction to consumers:
Advertising leads to competition among manufacturers and retailers. They have to offer
something special in order to attract manufactures have to bring down the price in order to
attract manufactures have to bring down the price in order to attract customers. They have to
supply quality goods in order to attract more customers. All these are beneficial to consumers
in terms of price quality of goods.
6) Improving living standards:
Advertising raises the standard of living of people by supplying information about goods and
services which can offer convenience and pleasure to them. Advertising guides consumers in
the selection to consumers living to consumers.
7) Safe and effective use of products:
Consumers get information about usage and handling of different products through
advertising. They also get guidance as regards the manner of using the product. This avoids
possible damage of the product purchased.
8) Removes misunderstanding:
Advertising helps consumers in removing their misunderstanding about certain products.
They change their attitudes towards certain products and services as a result of advertising.
9) Reduces the role of middlemen:
Advertising helps in reducing the role of the middlemen by establishing direct contacts
between producers and consumers. It results in cheaper goods by avoiding the profit and
commission of middlemen.

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5. MERITS TO THE SOCIETY:
1) Advertising leads to a large-scale production creating more employment opportunities to
the public in various industries directly or indirectly.
2) It creates more wants and their satisfaction. For example, advertising has made more
popular and universal the uses of inventions as the automobiles, TV, mobile phones,
computers etc.
3) It made the availability of newspapers and visual media at cheaper rates. The cheap
production of newspapers is possible only through the publication of advertisements in them.
4) It assures employment opportunities for artists who innovate and create ads.
5) It educates people about new uses of products and provides information for leading better
life.

DEMERITS OF ADVERTISING

1)ECONOMIC CRITICISMS
1) Advertising is unproductive:
Advertising does not produce any tangible goods. It is a waste of money, time and other
resources.
2) Advertising is costly:
A strong objection against advertising is that it is a costly function. Companies have to
spend huge amount of money for advertising.
3) Increases price of goods:
It increases the cost of goods. Advertising charges are included the price, which the
consumer has to pay.
4) Creation of monopoly:
As a result of excessive advertising, consumers become slaves of a particular brand. This
may lead to the creation of market monopolies.
5) Increase of expenditure:
Advertising increases the desire of people. This forces them to buy goods over and above
their income.

2. SOCIAL CRITICISMS
1) False claims:
Most of the advertisements contain false claims and the consumers do not enjoy the benefits
advertisement. It gives misleading information to customers about the benefits of a product.
2) Undue influence over media:
Most of the print and electronic media are influenced by the advertisers because lion share of
the revenue of the media comes from advertisers. As a result, consumers are not getting true
information regarding a product or service.
3) Corrupts the minds of youth:
It is argued that advertisements corrupt the minds of youngsters. Advertising promotes
smoking and drinking among youths. In some cases, advertisements promote the youths to
commit crimes and undertake activities at the risk of their lives.

3. ETHICAL CRITICISMS
1) Attracts people to harmful products
Advertising appeals make people to use certain products, which are harmful to health. For
example, alcoholic drinks and cigarettes.

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 2) Dissatisfaction among poor people:
People with less purchasing power cannot afford to buy articles though advertisements create
a strong need in them. Thus, a section of society remains discontented.
3) Obscene advertisements:
The use of nudity, indecent images, uncultured languages, words caption in advertisements is
a major ethical issue. Most companies see nude images as an essential thing for marketing
their products.

PROCESS OF ADVERTISING

1. ESTABLISHING THE GOALS

Identifying and defining the goals is the first phase of advertising. Spending money on
advertising without establishing goals is a wastes money, time and effort. Setting the goals of
advertising is highly essential to decide on the appeal or message communicated to the
audience. The important factors considered by a company setting the goals of advertising are;
1) The nature of the target market.
2) Target sales.
3) The nature of the product or service to be highlighted in the target market.
4) The time of advertising.
5) Advertising strategy of the competitors.

2. PREPARATION OF THE BUDGET:

The next phase is preparation of advertising budget. The advertising budget has to be planned
so that there is no short of or excess of funds during the process of advertising and also there
are no losses to the company.

3. SELECTION OF AN ADVERTISING AGENCY:

An advertising agency (ad agency) is a specialised institution which offers professionalized
advertising services to the clients. The business of an ad agency is creating, planning and
managing advertisement activities on behalf of its clients. Selection of a professional ad
agency important aspect of advertising, if a company lacks the expertise in advertising.

4. SELECTION OF THE MEDIA:

Selecting appropriate medium for advertising is an important stage in the advertising process.
The major factors considered in media selection are;
1) Media class
This refers to the type of medium which is most appropriate to the product and ad copy. This
includes newspaper, magazines, television, radio, billboards and direct mail.
2) Media vehicle
It refers to the different channels in print and electronic media. They provide the immediate
environment for the advertisement, For example, within the newspaper, The Hindu’ is a media
vehicle, in television ‘Doordarshan’ is a vehicle.
3) Media option:
This refers to the size and time in the media vehicle.

5. CREATION OF THE ADVERTISEMENT

The success of advertising not only depends on the media used but also on the message and
the way of presentation. So ad creation is a significant stage in the advertising process. In the

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modem scenario of marketing, advertisers try to reach out people with their advertisement in
a very appealing way. By using arts and interesting concepts they try to deliver product
message to the audience, in an effective manner. With the use of digital arts and other tools
ads become even more attractive which helps advertisers to persuade more audience to
purchase the products they offer.

6. DECIDING THE PLACE AND TIME OF THE AD:

Decision regarding the place and time of the ad is a crucial step in the advertising process.
Many advertisers waste huge amount of money on advertising that fails to produce sales. The
major reason for this situation is the incorrect placing and wrong timing of the ads. Proper
selection of where advertisement goes and when it shows is crucial to the success of the
advertising campaign. The ad designed by a company must reach the right at the right time.
7. MONITORING AND EVALUATION:
This is considered as the last phase in an advertising process. The release of the ad, the
advertiser has to make sure that he the promises mentioned in his advertisement, meets the
expectations of the customers and continues to optimize his advertising strategy. But this is
possible only through a systematic monitoring and evaluation of the advertising process. It
gives information regarding the effectiveness of the message, media and the performance of
the advertising agency. It also gives valuable inputs to decisions regarding correction and
modification in the advertisement strategy of the company.

PERSONAL SELLING

Personal selling is oral communication with potential buyers of a with the intention of making
a sale. It is the oldest form of promotion. It helps and encourages customers to purchase
goods through me use of oral presentation. The role of sales personnel highly significant in
personnel selling. They search, identify, meet, communicate and convince the customers to
carry out sales in personal selling. Sometimes sales force communicates with the respective
customers over phone and email. In comparison to other promotion tools personal selling
differs in the following ways;
1. It uses fewer resources of the firm.
2. Active involvement of the sales personnel.
3. price is negotiated.
4. Selling of complex products are involved (Selling of a car is an example, The customer
requires the help of a sales person to understand its important features).
5. There is some contact between buyer and seller at the time of sale and after the sale.
6. The purchase tends to involve large sums of money.

The American Marketing Association defines personal selling as oral presentation in

conversation with one or more prospective purchases for the purpose of making sales.”

NATURE OF PERSONAL SELLING

1. Personal selling is the interpersonal part of the promotion mix can include face-to-face
communication, telephone communication and video or web conferencing.
2. It involves an individual acting for a company by performing one more of the activities such
as prospecting (searching), information gathering and Servicing
3. Personal selling involves the two-way flow of communication between a buyer and seller,

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designed to influence a persons or purchase decision.
4. It involves persuasion of consumers.
5. It attempts to win buyer’s confidence.
6. Personal selling is an education process. The sales force educates customers about the
benefit and usage of the product.
7. Personal selling is a flexible tool in promoting sales. It can adapt the need of specific
buyer. Salesman can present his ideas or to fit the needs of the buyer.

IMPORTANCE OF PERSONAL SELLING

1. From Manufacturer’s Point of View:

1) It creates demand for products.
2) It creates new customers and helps the manufacturers to the market for the product.
3) In personal selling, sellers have personal contact with the buyers and learn the choice and
demands of customers. This helps them to give valuable information to the manufacturers
for the modification and improvement of the products.

2. From Customer’s Point of View:

1) Personal selling helps the customers in selecting goods best suited to their requirements
and tastes as it involves face-to face communication.
2) Personal selling provides information to the customers about the new products introduced
in the market.
3) Through personal selling that customers come to know about use of new products in the
market. The sellers demonstrate the product before the buyers and explain the of the
products.
4) Personal selling gives an opportunity to the customers to register their complaints and
difficulties in using the product and get them settled immediately.

PERSONAL SELLING AND SALESMANSHIP

In common parlance, personal selling and salesmanship are used interchangeably. But
Salesmanship is one of the skills required in personal selling. Salesmanship is the art of
successfully persuading prospective buyers to buy the products. Effective salesmanship helps
the seller to sell the product and it increase customer satisfaction.
“Salesmanship is the power to persuade plenty of people pleasurably and permanently to
purchase products”.
Salesmanship is an art of winning over the buyer’s so as to bund a permanent goodwill for the
company and a lasting satisfaction for the buyer. A Salesman is a friend and a guide of the
consumer and a supporter and an aid to the producer.

PROCESS OF PERSONAL SELLING

1. Pre-sale preparation:
The first step in personal selling is the preparation of sales person. Sales persons must be
properly selected, trained and motivated the job. They must be fully familiar with the
producer, the product, market and the selling techniques, they must be fully aware of
motivation and behaviour of the people who are the prospective consumers. They should also
be well informed about the nature of competition and the nature of competitors’ products.

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2. Prospecting or locating the prospective buyers:
It refers to searching and identifying the potential buyers for the product and satisfactorily
screening them to make sure that the sales will not go waste. The salesman should examine
the need of buyers and their capacity to buy the product.

3. Approaching:
After collecting all relevant information of a prospective buyer, salesman should approach the
customer in a polite and dignified way and introduce himself and his product. A counter-sales
person should be very careful in attending the customer. If he is busy in attending customers,
he should assure the new customer mat lie would attend very soon. He should be careful in
his first impression.

4.Presentation:
The sales person, in this stage has to gain the attention of the customer. For this purpose, he
should present his product and describe its characteristics in brief. He should understand the
attitude Df the customer and match with his attitude so that he may be able to his attention
and create interest in the product.

5. Demonstration:
Demonstration is one of the bet methods of presentation. If necessary, the salesperson should
display and demonstrate the of the product. He should explain and describe the utility of
product in brief through demonstration so that the customer realises the need for the product
to satisfy his wants.
6. Handling objections:
As every customer wants to make a best bargain for the money he is spending, presentation
and demonstration of the product are likely to create some doubts and objections in the
minds of the prospects. The sales person should be ready to clear all doubts and queries of
the customer.
7. Closing the sale:
It is making the customer agree to buy the product. It is not an easy task. The sales person
should not force the prospect to buy but should let the consumer feel that he has made the
final decision. He should guide the customer that he has made the right choice. Some
adjustment in price or other concession may sometimes be necessary for completing a sale.
8. Follow up:
After closing a sale, follow up is essential. It refers to the activities undertaken-to ensure that
the customer has taken the right decision buying the product. Follow up actions also include
installation of products, checking and testing its smooth performance, maintenance and after
sale service. It helps building long-term relationship with the customer.

TYPES OF PERSONAL SELLING

1. Negotiations:
Personal selling is affected through negotiation to arrive at an agreement on the price and
other terms and conditions of sale. In negotiated exchange, price and other terms are set via
bargaining behaviour. Although price is the most frequently negotiated issue, issues include
quality of goods and service offered, purchase volume, responsibility of financing, risk taking
and product safety.

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2. Selling strategy:
Personal selling operations involve selling strategy and planning. Selling strategy is more
effective than negotiation. It involves determining personal selling objectives, sales policies,
formulation of ales strategies, determining the selling appropriation and management of the
sales force. Consumers have different needs and sales person has to adopt different selling
strategies to address needs.

3. AIDAS Approach:
This approach is very popular in sales. It includes attention, Desire, action and satisfaction. It
is a buyers-oriented formula because it emphasizes the customer’s needs and problems.
According to this approach the first goal is to secure attention of the customer. Fourth goal is
to induce an action that is to buy and the last goal is to induce an action that is to buy and
the last goal to build satisfaction by reassuring the customer that his decision was correct.

4. Stimulus-Response model:
The sales person provides the stimuli to purchase through his words and actions. The words
and actions of the sales person may in a favourable response from the customer.

TYPES OF SALES PERSONS

1. Transactional:
Transactional sales persons are those who wait for the transaction to make their sale. They
are order-takers because they passively sit by waiting for the sale to come to them. Most of
these sales persons work in a retail environment where the primary job is to help the buyer to
find the product he is already looking for and then close the sale.
2. Relational:
The relational salesperson tries for better relationship with customers. Relational salesperson
is good at quickly building rapport with the customer and gets sales because the buyer likes
him. A relational salesman establishes long-term relationship with a customer that brings the
customer back for repeated business.
3.Closers:
A large number of the sales force in different industries is closers. They always try to close the
deal on a sale. This type of salesperson leads the customer toward the goal of closing the deal.
Immediate goal of this salesman is closing the sale. Relationship with the customers is
secondary for them.

4. Consultants:
Consultants are salespersons who know how to close a deal and build relationships at the
same time. Consultants patiently listen to customer requirements and help them to meet the
requirements. consultants have superior listening skills and are patient with customers.

DIRECT MARKETING

Direct marketing is a channel free distribution of products. There are no middlemen

functioning in between the manufacturers and the consumers. In this type of marketing,
companies deal directly with customers. Simply, direct marketing refers to a communication
between the seller and the buyer directly. It is direction communication with a marketing
purpose. Direct marketing uses different media such as brochures, internet and telephone to
communicate and persuade buyers to purchase a product.

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According to the Direct Marketing Association (DMA), direct marketing is defined as
“communications where data are used systematically to achieve quantifiable marketing
objectives and where direct contact is made, or invited between a company and its customers
and prospective customers”.

DIRECT MARKETING vs. MARKETING

Direct marketing Marketing

It communicates directly with the Mass distribution network is used to
customer. reach the customer.

Communications are mostly personal in Communications are impersonal which

nature (One-to-one communication). are directed to all customers.

It presents product offers to individuals It presents a uniform product to all the

specially tailored to satisfy their needs. customers.

It tries to build long term personal Personal relationship with all customers is with
relationship with the customers. is not possible.

The marketer or company enjoys full The company has limited control j the
control over the delivery of products to the distribution network or the intermediaries.
customers.

TYPES or TOOLS OF DIRECT MARKETING

1. Direct Mail Marketing:

It refers to sending product communications and advertisement materials to the home and
business addresses of the consumers.
2. E-mail Direct Marketing:
This form of direct marketing contacts consumers through their Email accounts. Product
communications ana advertisements will be sent to the E-mail of the consumers.
3. Telemarketing:
It is a type of direct marketing that involves contacting people over telephone for the purpose
of marketing products.

4. Catalogues:
A catalogue is a multi-page direct marketing booklet published by a company and issued to a
prospective customer to give complete regarding the products offered. It employs high quality
and photography to create a visual impact of the products.

SALES PROMOTION

Sales promotion is the key ingredient of promotion mix. It includes several communications
activities that attempt to provide added values or incentives to consumers, wholesalers,
retailers and customers to promote immediate sales. Sales promotion is directed towards
Consumers and traders with the intention to produce immediate or short-term sales. Sales
promotion offers many inducements to act by providing extra worth over and above the actual

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product at its normal price. These are temporary inducement usually offered at a time and
place where purchasing decision is made.

Sales promotion is any initiative undertaken by an organisation promote an increase in sales.

It has been developed to supplement and co-ordinate advertising and personal selling efforts
of a firm. It consists of all those promotional activities that help in enhancing sales through
non-repetitive and one-time communication.

ROLE OF SALES PROMOTION

1. It popularizes goods and services of the producer among the target consumers and
motivates them towards larger purchases.
2. Maintains the sales up to normal level even during seasonal vacations & during the
declining stage of PLC.
3. Increases goodwill of the firm.
4. Simplifies the efforts of sales force and motivates them for larger purchase.
5. Stimulates maximum sales on special occasions and festivals.
6. Acts as tool to overcome competition.
7. Facilitates the introduction of new products.
8. Facilitates coordination and proper link between advertising and personal selling.

SALES PROMOTION STRATEGIES

1. Push strategy
2. Pull strategy
3. Combination strategy

1.Push Strategy:
A push sales promotion strategy involves pushing distributors sell the products of a firm to
the consumer by offering various kinds of promotions and personal selling efforts. In this
strategy, a company promotes its products to a dealer who in turn promotes it to the retailer
or to the consumer. The basic objective of strategy is to encourage the middlemen to give
maximum promotion to a brand. Special schemes and incentives are offered to middlemen
involved to promote the brand in the target market.
2.Pull Strategy:
A pull sales promotion strategy concentrates on the consumers instead of the middlemen
involved in marketing. This strategy offers discounts and other benefits to the consumers so
as to encourage to purchase a brand. Typical pull sales promotion strategies include; gift
coupons, cash refunds, rebates, contests etc.
3. Combination Strategy:
A combination sales promotion strategy is a mixture of a push and a pull strategy. It focuses
both on the middlemen as well as the consumers. It offers special incentives to both the
middleman and consumers so as to boost the sales of a product.

SALES PROMOTION METHODS or TECHNIQUES

1. CONSUMER PROMOTION TECHNIQUES

1)Couponing:
It is a scheme of distributing discount coupons to the customers. Coupons are paper offers

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that are available in magazines and may be downloaded from the internet or are available at
the point-of-purchase and entitle the recipient to a reduction in price for a product or service.

2) Sampling:
It refers to offering free product samples to consumers for trial use. Sampling provides the
consumer with the opportunity to use the product by giving a free small portion of the
product for the consumer to test.
3) Rebates:
They are money-back offers requiring a buyer to mail in a form requesting the money back
from the manufacturer rather than from the retailer.
4) Gifts or Free offer:
In this scheme, customers are entitled to get gifts while purchasing a brand.
5) Price cuts or Price-off :
It offers It refers to a reduction in the regular price of a brand for a short of time.
6) Quantity-off offers:
It refers to offering more quantity of a product at the regular price.
7) Consumer contests and lucky draws:
In the case of contests, consumers are invited to participate in competitors and the winners
are given special gifts. Lucky draw is a play based on the luck factor.

2. TRADE PROMOTION TECHNIQUES

Trade promotion techniques are directed towards dealers and middlemen involved in
marketing. The most common types of promotion techniques are;
1) Buying allowance:
Special allowances offered to dealers to motivate them to purchase new product.
2) Buy back allowance:
It is an agreed sum of money offered by the firm if the dealer returns the product. This is to
encourage re-stocking (fresh purchase) by the dealers.
3) Merchandise allowances:
These allowances are offered to meet the promotional expenses incurred by a dealer in
connection with the sale of a brand. Merchandise allowances include advertising allowance,
display allowance etc.
4) Bulk discount:
It refers to reduction in price offered to a dealer for purchasing product in large quantities.

5) Gift awards & Cash prizes.

3.SALES FORCE PROMOTION STRATEGIES:

1. Bonus to sales force
2. Gifts.
3. Sales force meet.

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