Printed Page: 1 of 1

Subject Code: KMBMK02

Roll No:
MBA
(SEM III) THEORY EXAMINATION 2020-21
CONSUMER BEHAVIOUR & MARKETING COMMUNICATION
Time: 3 Hours Total Marks: 100
Note: 1. Attempt all Sections. If require any missing data; then choose suitably.

SECTION A
1. Attempt all questions in brief. 2 x 10 = 20
Q no. Question Marks CO
a. Write any Five Functional Area of Marketing Communication. 2 1

b. Write any two Objective of Marketing Communication 2 1

The basic objectives of marketing communication have been reduced to three

more meaningful directives: (a) to communicate, (b) to compete, and (c) to
convince. The primary purpose of MC is to communicate ideas to target
audiences. This is done through advertising, personal selling, sales promotion,
and/or public relations. Principles of effective communication are intended to
achieve this task. Clearly, most of marketing is communications, and it is in this
context that communication is included as a purpose of MC. Moreover, whatever
is communicated should be accurate, truthful, and useful to the parties involved.
Because of the pervasiveness of marketing communication, it has a unique
responsibility to communicate with integrity

c Write any 03 reason for growing Importance of IMC. 2 2

One of the major benefits of Growing integrated marketing communications is

that marketers can clearly and effectively communicate their brand’s story and
messaging across several communication channels to create brand awareness

IMC is also more cost-effective than mass media since consumers are likely to
interact with brands across various forums and digital interfaces.

The other benefit of integrated marketing communications is that it creates a

competitive advantage for companies looking to boost their sales and profits.
This is especially useful for small- or mid-sized firms with limited staff and
marketing budgets. IMC immerses customers in communications and helps them
move through the various stages of the buying process

d “The importance of knowing and understanding consumer behaviour in modern 2 2

marketing is vital”. Briefly Justify
e Discuss the significance of advertising post COVID 19. 2 3

The corona virus (COVID-19) global pandemic has resulted in changes to

advertising, marketing, promotional and media spends, forcing businesses and
brands to revaluate their thinking about current and future advertising and
marketing campaigns to maintain a steady stream of income. While brands
currently seek to strike the right tone during a global health emergency, the
future portends market alteration, increased competition and a demand for
creative and aggressive marketing practices
The significance of advertising increase post COVID 19 by focusing on below
points.
1) Introducing a New Product
2) Increase in Sales
3) Creating Consumer Awareness
4) Supply-demand projection
5) Building a Brand Image

f Advertising is all about Emotion. Briefly Comment. 2 3

Emotions are mental states of readiness that arise from appraisals of events or
one’s own thoughts. In this Question, the students need to discuss the
differentiation of emotions from affect, moods, and attitudes, and outline an
appraisal theory of emotions.
Next, various measurement issues are considered. This is followed by an analysis
of the role of arousal in emotions. Emotions as markers, mediators, and
moderators of consumer responses are then analyzed.
The students need to focus on influence of emotions on cognitive processes,
which is followed by a study of the implications of emotions for volitions, goal-
directed behaviour, and decisions to help. Emotions and customer satisfaction are
briefly explored, too. The article closes with a number of questions for future
research
g Explain Copy Layout in advertising. 2 4

Layout may be defined as the arrangement of the various elements of advertising

such as illustration, text matter, product and name of the company. A good
advertisement is a combination of both copy and art.
h Define Broadcast Media. 2 4

The term 'broadcast media' covers a wide spectrum of different communication

methods such as television, radio, newspapers, magazines and any other materials
supplied by the media and press
1) Broadcast television
2) Cable television
3) On-demand television
4) TV/web integration
5) Local, network, and national radio
6) On-air endorsements
7) Long-form programming
8) Multi-language programming

i Define Trade Promotion. 2 5

Trade promotion is part of revenue management and refers to marketing

campaigns directed at wholesalers or retailers rather than at final consumers. It is
a marketing technique aimed at increasing demand for products in retail stores. In
a trade promotion, wholesalers and/or retailers are offered special price discounts
(often in addition to a trade allowance), subsidized or free display racks or stands,
gifts, or other incentives.
Trade promotion management (TPM) is the process of planning and accounting
for the funding of events and activities at retail level including brand
management, budgeting, account management, demand planning, integrated sales
and marketing, retail execution, and back-end processes (including settlement),
and analytics.

j Write any two Consumer sales Promotion Tool in Retail Industry 2 5

Promotional tools are tactics or activities you plan and execute to persuade consumers to buy
your products or services. As a consumer, you likely partake of these activities yourself without
realizing it; as a businessperson on the selling side, finding effective tools is challenging.
 Free samples: ...
 Coupons: ...
 Exchange scheme: .
 Discounts: .
 Premium offers:
 Personality promotions:

SECTION B
2. Attempt any three of the following:
a. Explain the concept of research with regard to consumer behaviour? Also
10 1
explain the scope and application of research in consumer behaviour.

According to Engel, Blackwell, and Mansard:

‘Consumer behavior is the actions and decision processes of people who

purchase goods and services for personal consumption’.

According to Louden and Bitta:

‘Consumer behavior is the decision process and physical activity, which

individuals engage in when evaluating, acquiring, using or disposing of goods
and services’.

The process of consumer research started as an extension of the process of market

research. As the findings of market research is used to improve the decision-
making capacity of an organization or business, similar is with consumer
research.

The consumer research process can be broken down into the following steps:
 1. Develop research objectives: The first step to the consumer research process
is to clearly define the research objective, the purpose of research, why is the
research being conducted, to understand what? A clear statement of purpose
can help emphasize the purpose.
2. Collect Secondary data: Collect secondary data first, it helps in
understanding if research has been conducted earlier and if there are any
pieces of evidence related to the subject matter that can be used by an
organization to make informed decisions regarding consumers.
3. Primary Research: In primary research organizations or businesses collect
their own data or employ a third party to collect data on their behalf. This
research makes use of various data collection methods
(qualitative and quantitative) that helps researchers collect data first hand.
4. Collect and analyze data: Data is collected and analyzed and inference is
drawn to understand consumer behavior and purchase pattern.
5. Prepare report: Finally, a report is prepared for all the findings by analyzing
data collected so that organizations are able to make informed decisions and
think of all probabilities related to consumer behavior. By putting the study
into practice, organizations can become customer-centric and manufacture
products or render services that will help them achieve excellent customer
satisfaction.

After Consumer Research Process

Once you have been able to successfully carry out the consumer research process,
investigate and break paradigms. What consumers need should be a part of
market research and should be carried out regularly. Consumer research provides
more in-depth information about the needs, wants, expectations and behavior of
clients.

By identifying this information successfully, strategies that are used to attract

consumers can be made better and businesses can make a profit by knowing what
consumers want exactly. It is also important to understand and know thoroughly
the buying behavior of consumers to know their attitude towards brands and
products.

The identification of consumer needs, as well as their preferences, allows a

business to adapt to new business and develop a detailed marketing plan that will
surely work. The following pointers can help. Completing this process will help
you:

1. Attract more customers

2. Set the best price for your products
3. Create the right marketing message
4. Increase the quantity that satisfies the demand of its clients
5. Increase the frequency of visits to their clients
6. Increase your sales
7. Reduce costs
8. Refine your approach to customer service.

b. Explain the Model of IMC Planning Process 10 2

c. Explain the process of advertising in Indian Context. 10 3

 Process of Advertising
“Mass demand has been created almost entirely through the development of
Advertising”
For the development of advertising and to get best results one need to follow the
advertising process step by step.

The following are the steps involved in the process of advertising:

Step 1 – Briefing: The advertiser needs to brief about the product or the service
which has to be advertised and doing the SWOT analysis of the company and the
product.

Step 2 – Knowing the Objective: One should first know the objective or the
purpose of advertising. i.e. what message is to be delivered to the audience?

Step 3 – Research: This step involves finding out the market behavior, knowing the
competitors, what type of advertising they are using, what is the response of the
consumers, availability of the resources needed in the process, etc.

Step 4 – Target Audience: The next step is to identify the target consumers most
likely to buy the product. The target should be appropriately identified without any
confusion. For e.g. if the product is a health drink for growing kids, then the target
customers will be the parents who are going to buy it and not the kids who are going
to drink it.

Step 5 – Media Selection: Now that the target audience is identified, one should
select an appropriate media for advertising so that the customers who are to be
informed about the product and are willing to buy are successfully reached.

Step 6 – Setting the Budget: Then the advertising budget has to be planned so that
there is no short of funds or excess of funds during the process of advertising and
also there are no losses to the company.

Step 7 – Designing and Creating the Ad: First the design that is the outline of ad
on papers is made by the copywriters of the agency, then the actual creation of ad is
done with help of the art directors and the creative personnel of the agency.

Step 8 – Perfection: Then the created ad is re-examined and the ad is redefined to

make it perfect to enter the market.

Step 9 – Place and Time of Ad: The next step is to decide where and when the ad
will be shown.

The place will be decided according to the target customers where the ad is most
visible clearly to them. The finalization of time on which the ad will be telecasted or
shown on the selected media will be done by the traffic department of the agency.

Step 10 – Execution: Finally the advertise is released with perfect creation, perfect
 placement and perfect timing in the market.

Step 11 – Performance: The last step is to judge the performance of the ad in terms
of the response from the customers, whether they are satisfied with the ad and the
product, did the ad reached all the targeted people, was the advertise capable enough
to compete with the other players, etc. Every point is studied properly and changes
are made, if any.

If these steps are followed properly then there has to be a successful beginning for
the product in the market

d. Discuss the role of Advertising Agencies in India. Name any Five Agencies. 10 4

Advertising Agencies: Their Role and Functions

Advertising Agencies
“The work of a tailor is to collect the raw material, find matching threads, cut the
cloth in desired shape, finally stitch the cloth and deliver it to the customer.”

Advertising Agency is just like a tailor. It creates the ads, plans how, when and
where it should be delivered and hands it over to the client. Advertising agencies are
mostly not dependent on any organizations.

These agencies take all the efforts for selling the product of the clients. They have a
group of people expert in their particular fields, thus helping the companies or
organizations to reach their target customer in an easy and simple way.

The first Advertising Agency was William Taylor in 1786 followed by James “Jem”
White in 1800 in London and Reynell & Son in 1812.

Role of Advertising Agencies

1. Creating an advertise on the basis of information gathered about product

2. Doing research on the company and the product and reactions of the customers.
3. Planning for type of media to be used, when and where to be used, and for how
much time to be used.
4. Taking the feedbacks from the clients as well as the customers and then deciding the
further line of action.

All companies can do this work by themselves. They can make ads, print or
advertise them on televisions or other media places; they can manage the accounts
also. Then why do they need advertising agencies? The reasons behind hiring the
advertising agencies by the companies are:-

 The agencies are expert in this field. They have a team of different people for
different functions like copywriters, art directors, planners, etc.
 The agencies make optimum use of these people, their experience and their
knowledge.
 They work with an objective and are very professionals.
 Hiring them leads in saving the costs up to some extent.

10 Major Functions of Advertising Agency

1. Attracting clients

Advertising agency needs clients (advertisers). Without them, it cannot survive.

2. Account Management

Within an advertising agency the account manager or account executive is tasked

with handling all major decisions related to a specific client.

The account manager works closely with the client to develop an advertising
strategy.
3. Creative Team

The principle role of account managers is to manage the overall advertising

campaign for a client, which often includes delegating selective tasks to specialists.

Advertising agency put the advertising-plan into action under its creative function.
Creation of ads is the most important function of an ad agency.

These jobs are done by experts like copy writers, artists, designers, etc. These people
are highly skilled and creative. They make an advertisement more appealing.
Attractive ads help to increase the sales of the product.

4. Researchers

Full-service advertising agencies employ market researchers who assess a client’s

market situation, including understanding customers and competitors, and also are
used to test creative ideas. Advertising agency gathers information related to the
client’s product. It collects following information about a product under its research
function: –

 Features, quality, advantages and limitations of a product, Present and future market
possibilities, Competition in the market, Situation in the market, Distribution
methods, Buyers’ preferences, so on
 Ad agency analyses (studies) all this collected information properly and draws
conclusions for its research. It helps in planning an advertising campaign, selecting
proper media and creation function.

5. Media Planners

Advertising agency helps an advertiser to select a proper media (ad platform) to

promote his advertisement effectively.

Media selection is a highly specialized function of an ad agency. It must select the

most suitable media for its client’s ad.

Advertising agency plans the entire ad campaign of its client. Advertising planning
is a primary function of an ad agency. It is done when its research function is
completed. That is, after analyzing the client’s product, its competitors, market
conditions, etc. It is done by experts who use their professional experience to make a
result-oriented advertising-plan.

Once an advertisement is created, it must be placed through an appropriate

advertising media.

Each advertising media, of which there are thousands, has its own unique methods
for accepting advertisements, such as different advertising cost structures (i.e., what
it costs marketers to place an ad), different requirements for accepting ad designs
(e.g., size of ad), different ways placements can be purchased (e.g., direct contact
with media or through third-party seller), and different time schedules (i.e., when ad
will be run). Understanding the nuances of different media is the role of a media
planner, who looks for the best media match for a client and also negotiates the best
deals.

6. Advertising Budget

Advertising agency helps an advertiser to prepare his ad budget. It helps him to use
his budget economically and make the best use of it.

Without a proper advertising budget, there is a risk of client’s funds getting wasted
or lost.

7. Coordination

Advertising agency brings a good coordination between the advertiser, itself, media
 and distributors.

8. Sales Promotion

Advertising agency performs sales promotion. It helps an advertiser to introduce

sales promotion measures for the dealers and consumers. This helps to increase the
sales of the product.

9. Public Relations

Advertising agency does the public relations (PR) work for its clients. It increases
the goodwill between its clients and other parties like consumers, employees,
middlemen, shareholders, etc. It also maintains good relations between the client and
media owner.

10. Non-advertising functions

Advertising agency also performs many non-advertising functions:

It fixes the prices of the product, It determines the discounts, It designs the product,
It also designs its package, trademarks, labels, etc.

1) Ogilvy and Mather:

2) McCann-Erickson India Ltd
3) J Walter Thompson India
4) Mudra Communication Pvt. Ltd
5) FCB- Ulka Advertising Limited

e. Discuss the factors that lead to Trade Promotion in India. 10 5

In business and marketing, “trade” refers to the relationship between manufacturers

and retailers.

Trade Promotion refers to marketing activities that are executed in retail between
these two partners. Trade Promotion is a marketing technique aimed at increasing
demand for products in retail stores based on special pricing, display fixtures,
demonstrations, value-added bonuses, no-obligation gifts, and more.

Trade Promotions can offer several benefits to businesses. Retail stores can be an
extremely competitive environment; trade promotions can help companies
differentiate their products from the competition. Companies can utilize Trade
Promotions to increase product visibility and brand awareness with consumers.
Trade Promotions can also increase a product’s consumption rate, or the average
quantity of a product used by consumers in a given time period. Furthermore,
effective Trade Promotions can enlarge a product’s market segment penetration, or
the product’s total sales in proportion to the category’s competition. Moreover,
companies use Trade Promotions to improve distribution of their product(s) at
retailers and strengthen relationships with retailers. Lastly, Trade Promotions can be
leveraged to introduce new product launches into retail stores.

Trade promotion spending is one of the most important levers in achieving volume
and profitability growth. Its importance has increased significantly in the past five
years as a result of the global downturn and fewer consumers spending less money.
Trade promotion can represent as much as 30 percent of total sales for fast moving
consumer goods (FMCG) companies. But looking at trade promotion expenditures
alone does not take into account the tight links between trade promotion and
pricing. In fact, many FMCG marketers no longer look at trade promotion in
isolation. They believe that retailers often sweet talk product managers and sales
people into reducing the effective price of an offering with a promotion, persuaded
by the idea that dropping a list price is advantageous

NATURE OF TRADE PROMOTION

 SECTION C
3. Attempt any one part of the following:
a. Explain the Application of Consumer Behaviour Knowledge in Marketing. 10 1

The study of consumers helps firms and organizations improve their marketing
strategies by understanding issues such as how
The psychology of how consumers think, feels, reason, and select between
 Different alternatives (e.g., brands, products); the psychology of how the consumer
is influenced by his or her
 Environment (e.g., culture, family, signs, media); the behaviour of consumers
while shopping or making other marketing
 Decisions; Limitations in consumer knowledge or information processing abilities
 Influence decisions and marketing outcome; How consumer motivation and
decision strategies differ between products
 That differ in their level of importance or interest that they entail for the consumer;
and How marketers can adapt and improve their marketing campaigns and
 Marketing strategies to more effectively reach the consumer.

There are four main applications of consumer behaviour:

1) The most obvious is for marketing strategy—
2) A second application is public policy
3) Social marketing involves getting ideas across to consumers rather than
selling something.

As a final benefit, studying consumer behaviour should make us better consumers

b. Define consumer learning. Explain Buying Decision Process in Consumer

10 1
Behaviour.

Consumer learning is defined as a process by which people gather and interpret

information about products and services and use this information/knowledge in
buying patterns and consumption behaviour

Basic elements that contribute to an understanding of learning

are motivation (drives), cues, response, and reinforcement. There are two schools of
thought as to how individuals learn—behavioral theories and cognitive theories.
Both contribute to an understanding of consumer behaviour.
The customer buying process (also called a buying decision process) describes the
journey your customer goes through before they buy your product. Understanding
your customer's buying process is not only very important for your salespeople, it
will also enable you to align your sales strategy accordingly
4. Attempt any one part of the following:
a. Explain the term “Social Class”. Discuss the measurement techniques that give
10 2
a fair approximation of social class.

Social Class & Consumer Behavior

Social class is the segment of a society arrived at by a hierarchical classification
of individuals and families with a distinct status. The members of each class have
relatively the same status. The status denotes the aggregate effect of the members of
a class. Analysis of the characteristics of the social class will help the marketer to
understand its consumption pattern.
1. The members of each class have relatively the same status
A social class is defined by the amount of status, which the members of that class
have in comparison with members of other social classes. The members in a
particular social class have relatively the same status. An individual or family
achieves social class by acquisition of skills, education, wealth and recognition. The
status of the member reflects the aggregate effect of influence and recognition
conferred on them by the society. This in turn is either more or less than the status of
other classes.

2. Persons within a given class tend to behave alike

Social classes are homogeneous divisions of the society. Each social class shows
similar life-styles, values, status, prestige and interests. So, the behavior pattern of
the members become similar. There are also shared attitudes and behavioral pattern
among members. So, the behavioral pattern differs among social classes. For
example, a person belonging to middle class prefers economically priced cars. But
upper income group will prefer highly priced cars. Thus, social classes exhibit
varying buying pattern in purchase of products that meets the life-style, status and
prestige of their members.

3. Social class is hierarchical

Social class is determined by a hierarchical classification of individuals and families
with a distinct status. Families can climb the social ladder by achievement of
members. When each generation within a family tends to do better, there is an
upward mobility in the social ladder. When young adults have less disposable
income than their successful parents, they may slide down in the class hierarchy.
The hierarchical aspect of social class is important to marketers. Consumers may
prefer to purchase products favored by their own or higher social class (e.g.
imported luxury automobiles). Consumers may avoid certain products because they
perceive the products to be lower class products.

4. Social class is measured by a combination of variables

Researchers use a combination of variables to measure social class. A number
of socioeconomic factors are combined to form one over all members of social
class standing. They better reflect the complexity of social class than a single
variable. For example, to know the consumer perceptions of mail and phone order
shopping, the socioeconomic status was studied by using a composite of income
occupational status and education. It reveals that higher the socioeconomic status,
the more positive are the consumers ratings of mail and phone order buying,
relative to in-store shopping.

5. Social class is mobile

Social class membership is not hard and fixed. Individuals can move either up or
down in social class standing. The availability of free education and opportunities
for self-development prompts success in business and in life. Successful persons
move up to the higher class. Today, many young men and women start their own
business to have higher social status. Higher social classes become reference groups
for ambitious men and women of lower social status. Signs of upward mobility are
found in India. For instance, plastic surgery was once affordable only for movie stars
and other wealthy people. Today, consumers of all economic strata undergo
cosmetic surgery.

6. Social class and status differentiation

 Researchers measure social class in terms of social status. They define each social
class by the amount of status of the members of that class. It is also known
as “Social stratification“. Social stratification has resulted in differentiated roles.
For example, a person with higher status owns a car. A middle class status person
owns a two-wheeler. A person with lower status owns a bicycle. This is the
symbolic identification of role and status based on social classification

b. What factors influence consumption pattern of consumers for following

products :- 10 2
(i) Washing Machine (ii) Furniture (iii) Restaurant

Students need to Discuss the Consumption pattern influencing Consumer

Behaviour
A good understanding of the different factors that influence consumer behavior is
crucial to marketers and is therefore the subject of much market research.
Comprehension of these factors is instrumental in segmenting and positioning
products and in motivating consumers to buy.

A: The factors influencing consumer behaviour are-

1. Culture 2. Sub-Culture 3. Social Class.
B: A consumer’s behaviour is influenced by the following social factors.
These are – 1. Reference Group 2. Family 3. Roles and Statuses.

C: Personal characteristics also influence buyer’s decision.

They are – 1. Age and Stage in the Life Cycle 2. Occupation and Economic
Circumstances 3. Lifestyle 4. Personality and Self-Concept.

5. Attempt any one part of the following:

a. Discuss the various Methods of Compensating advertising agencies? 10 3

Advertising Agencies: METHOD OF COMPENSATING

Advertising Agencies
“The work of a tailor is to collect the raw material, find matching threads, cut the
cloth in desired shape, finally stitch the cloth and deliver it to the customer.”

Advertising Agency is just like a tailor. It creates the ads, plans how, when and
where it should be delivered and hands it over to the client. Advertising agencies are
mostly not dependent on any organizations.

These agencies take all the efforts for selling the product of the clients. They have a
group of people expert in their particular fields, thus helping the companies or
organizations to reach their target customer in an easy and simple way.

The first Advertising Agency was William Taylor in 1786 followed by James “Jem”
White in 1800 in London and Reynell & Son in 1812.

Role of Advertising Agencies

5. Creating an advertise on the basis of information gathered about product

6. Doing research on the company and the product and reactions of the customers.
7. Planning for type of media to be used, when and where to be used, and for how
much time to be used.
8. Taking the feedbacks from the clients as well as the customers and then deciding the
further line of action.

All companies can do this work by themselves. They can make ads, print or
advertise them on televisions or other media places; they can manage the accounts
 also. Then why do they need advertising agencies? The reasons behind hiring the
advertising agencies by the companies are:-

 The agencies are expert in this field. They have a team of different people for
different functions like copywriters, art directors, planners, etc.
 The agencies make optimum use of these people, their experience and their
knowledge.
 They work with an objective and are very professionals.
 Hiring them leads in saving the costs up to some extent.

10 Major Functions of Advertising Agency

2. Attracting clients

Advertising agency needs clients (advertisers). Without them, it cannot survive.

3. Account Management

Within an advertising agency the account manager or account executive is tasked

with handling all major decisions related to a specific client.

The account manager works closely with the client to develop an advertising
strategy.

4. Creative Team

The principle role of account managers is to manage the overall advertising

campaign for a client, which often includes delegating selective tasks to specialists.

Advertising agency put the advertising-plan into action under its creative function.
Creation of ads is the most important function of an ad agency.

These jobs are done by experts like copy writers, artists, designers, etc. These people
are highly skilled and creative. They make an advertisement more appealing.
Attractive ads help to increase the sales of the product.

5. Researchers

Full-service advertising agencies employ market researchers who assess a client’s

market situation, including understanding customers and competitors, and also are
used to test creative ideas. Advertising agency gathers information related to the
client’s product. It collects following information about a product under its research
function: –

 Features, quality, advantages and limitations of a product, Present and future market
possibilities, Competition in the market, Situation in the market, Distribution
methods, Buyers’ preferences, so on
 Ad agency analyses (studies) all this collected information properly and draws
conclusions for its research. It helps in planning an advertising campaign, selecting
proper media and creation function.

6. Media Planners

Advertising agency helps an advertiser to select a proper media (ad platform) to

promote his advertisement effectively.

Media selection is a highly specialized function of an ad agency. It must select the

most suitable media for its client’s ad.

Advertising agency plans the entire ad campaign of its client. Advertising planning
is a primary function of an ad agency. It is done when its research function is
completed. That is, after analyzing the client’s product, its competitors, market
conditions, etc. It is done by experts who use their professional experience to make a
 result-oriented advertising-plan.

Once an advertisement is created, it must be placed through an appropriate

advertising media.

Each advertising media, of which there are thousands, has its own unique methods
for accepting advertisements, such as different advertising cost structures (i.e., what
it costs marketers to place an ad), different requirements for accepting ad designs
(e.g., size of ad), different ways placements can be purchased (e.g., direct contact
with media or through third-party seller), and different time schedules (i.e., when ad
will be run). Understanding the nuances of different media is the role of a media
planner, who looks for the best media match for a client and also negotiates the best
deals.

7. Advertising Budget

Advertising agency helps an advertiser to prepare his ad budget. It helps him to use
his budget economically and make the best use of it.

Without a proper advertising budget, there is a risk of client’s funds getting wasted
or lost.

8. Coordination

Advertising agency brings a good coordination between the advertiser, itself, media
and distributors.

9. Sales Promotion

Advertising agency performs sales promotion. It helps an advertiser to introduce

sales promotion measures for the dealers and consumers. This helps to increase the
sales of the product.

10. Public Relations

Advertising agency does the public relations (PR) work for its clients. It increases
the goodwill between its clients and other parties like consumers, employees,
middlemen, shareholders, etc. It also maintains good relations between the client and
media owner.

11. Non-advertising functions

Advertising agency also performs many non-advertising functions:

It fixes the prices of the product, It determines the discounts, It designs the product,
It also designs its package, trademarks, labels, etc.
b. Draft 10 rules for selecting advertising appeal. Illustrate your answer with
10 3
example.

Advertising Appeal

Advertising appeals are communication strategies that marketing and advertising

professionals use to grab attention and persuade people to buy or act. In rhetorical
theory, the idea of an “appeal” dates back to Aristotle, who identified the three main
appeals of communication (also known as the rhetorical triangle): ethos, pathos, and
logos, or, in modern language, credibility, emotion, and logic. The idea was that, if
you can establish yourself as credible (ethos), for example, you are more likely to
persuade people. Likewise, if you tugged on your audience’s heartstrings (hit their
emotions, pathos) or presented a logical argument (logos), you could persuade
people to act. In other words, you (or your communication) appealed to people
because you were credible, you affected their emotions, or you made logical sense.

Marketing and advertising gurus have been using appeals for as long as marketing
and advertising have been a thing. Consider celebrity endorsements, which are prime
examples of applying ethos, or the credibility/endorsement appeal. If you see an
image with Jennifer Aniston holding a bottle of Smart Water, you are being
appealed to by Aniston’s credibility (or, at the very least, her notoriety). If it’s good
enough for her, the advertisers hope you’ll think and feel, then it’s good enough for
the consumer who respects and adores her.

But modern-day advertisers didn’t stop at just the three appeals, as Aristotle did.
While credibility, emotion, and logic in many ways do summarize the three broad
ways in which people are persuaded, advertisers get much more specific in order to
target their marketing communications approaches. Understanding the available
appeals in marketing and advertising will put you in a position to be more creative,
more persuasive, and ultimately more effective in your marketing and business
communications.

THE ADVERTISING APPEALS YOU SHOULD KNOW

While there are more than twenty that exist, and it’s possible you could even coin
your own, the list below addresses twenty of the most common advertising appeals
used by marketing professionals today, listed alphabetically.

1. Adventure Appeal

Appealing to a person’s sense of adventure and excitement. The goal of the

adventure appeal is to make people feel like the excitement, action, entertainment,
and sense of adventure will be enhanced if they purchase or use a product or service.

2. Bandwagon Appeal

Appealing to people by making them feel like everyone else is doing it. The goal of
the bandwagon appeal is to make people feel like since everyone else is doing
something, they should to. It’s a persuasion-by-numbers tactic.

3. Brand Appeal

Appealing to people who are brand-conscious and have certain proclivities towards
brands. The goal of the brand appeal is to make people buy a product because the
brand itself is a statement that the person hopes to associate with.

4. Endorsement Appeal

Appealing to people by using a celebrity they admire and recognize. The goal of the
endoresment appeal is to encourage people to buy a product or service or act a
certain way because people they know, respect, admire, and recognize also use that
product or service. Trust is built by using recognizable people.
 5. Fear Appeal

The fear appeal specifically appeals to a person’s fears in order to encourage them to
buy or act. The goal of the feal appeal is to cause someone to fear an outcome or
response if they don’t buy a product or act in such a way as to reduce risk.

6. Humor Appeal

Appealing to a person’s sense of humor. Because most human beings like to laugh,
humor is an effective appeal for grabbing attention and helping people remember
and share information about a product or idea. The goal with humor is to help build
a positive association with a product, service, or idea.

7. Masculine/Feminine Appeal

Appealing to a person’s desire to be the perfect man or woman. Often used in

clothing and beauty products, the goal of the masculine/feminine appeal is to make
people feel if they use a product or service, then they are more attractive, sexier,
stronger, or any other characteristic commonly associated with their gender or sex.

8. Music Appeal

Appealing to a person’s tastes in sounds and music. The goal of the music appeal to
help increase recall (as in jingles or mnemonics) and to encourage people to feel an
emotion toward a product that they feel while hearing a particular song or sound.

9. Personal (Emotional) Appeal

Appealing to a person’s emotions. The goal of the personal appeal is to make a

consumer feel sad, angry, excited, jealous, fearful, proud, nostalgic, or any other
emotion enough to encourage them to buy, donate, or act.

10. Plain Appeal

Appealing to people by making something seem ordinary or plain. The goal of the
plain appeal is to persuade people that a product, service, or idea may not be as
strange or radical or extraordinary as people thing, but rather that it is normal and
common.

6. Attempt any one part of the following:

a. Media Strategy is dependent on creative strategy. Discuss 10 4

Media Strategy

Media strategy can be defined as the usage of an appropriate media mix in order to
achieve desired and optimum outcomes from the advertising campaign. It plays a
key role in advertising campaigns. The objective of Media Strategy is not just about
procuring customers for their product or services but also focusses on placing a right
message towards the right people at the right time and ensuring that the message is
relevant and persuasive. Media Strategy is designed to achieve the above mentioned
target but the budget is always kept in mind.

Every work to be done needs a plan of action so that the work is done in a desired
and correct manner. Media Strategy plays a very important role in Advertising. The
role of Media Strategy is to find out the right path to transfer or say deliver the
message to the targeted customers.

How many people see or hear or read all the advertisements or promotional offers
and buy the product or service? The basic intention of media strategy is not only
procuring customers for their product but also placing a right message to the right
people on the right time and of course that message should be persuasive and
relevant. So, here the planners of the organization decide the Media Strategy to be
 used but keeping the budget always in mind.

There are three “W”s to be decided. They are:-

Where to advertise?

The question is to find out where the advertisement should be displayed to the
current and prospective customers. The common available options are – TV, radio,
newspapers, blogs, hoardings on roads, sponsorships, ads during breaks in theatres,
etc. It can be done at international/national/state/city level as per the requirement of
the brand.

When to advertise?

The timing of advertisement is very critical especially with respect to the seasonal
products. There is no point in airing advertisement for room heaters in summer
season. It should be aired right at the end of monsoon and beginning of winter
season.

Which type of media to use?

It is very important to use a correct media type for delivering the message. There are
two basic media approaches which can be adopted –

(i) Media Concentration approach

In this approach, firms concentrate their campaigns only on a few media types
(generally two or three) in order to reach their target consumers instead of using a
wide variety of media types.

(ii) Media Dispersion Approach

In media dispersion approach a wide variety of different media categories is

employed to reach the target customers. It is employed when the entire target market
can’t be reached by a few media types.

b. Discuss the Impact of Digital Advertising during Lockdown Period. 10 4

In February 2019 a study by eMarketer found that online spend had officially exceeded that
of offline for the first time and now accounted for half of all global ad spend. The same study
predicted that by 2023 digital ad spend will account for around two-thirds of total global
media spend, a market estimated to be worth $333.25. Given that at the turn of the
21st Century digital accounted for just 3% of global spend it’s clear to see that the shift we
have been observing is ramping up in pace. It is highly likely that the effects of COVID-19 on
2020 and beyond will further affect this change too.

Complementary data recently released by WARC (World Advertising Research Centre) shows
the split and changes in ad spend across all media before COVID-19 struck, as well as what
the picture is likely to look like in the new post-Corona environment
7. Attempt any one part of the following:
a. Discuss the different types of Trade Promotions 10 5
Types of Trade Promotion
One of the most common ways to push a product to a customer is through sales
promotions and using the various types of sales promotions. However, if the product
is being sold through a channel of dealers and retailers, then the company needs to
empower this channel. Companies can use Trade promotions so that the distribution
channel itself tries to push the product to the end customer.
Here are 8 Types of Trade promotions that can be run by a company.

1. Discounts / Increased margin of sale

The number 1 type of trade promotions run by any company is offering discounts or
increasing the margin offered to the channel dealer. This is especially useful for
small business owners who do not have the time or the manpower to run company
operated trade promotions at dealer end.

By this method, the dealer himself is motivated to run ideas so that he can promote
the product in his locality. Each locality and region is different. Hence, by using this
method, each dealer will run a different style of trade promotion to achieve his
targets. There can be a criteria attached to this type of trade promotions. It can be
offered if the dealer does 150% of his targets. Or even if he achieves 100%.

The problem with this type of trade promotions is that there is no guarantee of the
effort that the retailer or dealer has put in selling your product.

Scenario 1: If after announcing this incentive, the dealer actively promoted your
product but was unable to achieve the target, then he will be demotivated in selling
your products because he might think the product does not sell.

Scenario 2: Alternatively, another dealer could have achieved the target easily, and
he immediately stopped pushing your products as soon as the targets were achieved.
Thus, tracking the actually implementation on ground levels is difficult.

2. Incentives to Sales staff / Gifting

Another excellent type of trade promotion is to give incentive to sales staff.

Ultimately, the sales staff is the one which is going to be in touch with the customer.
The sales staff also get very happy whenever monetary awards are announced and
the aggressive ones will go all out to achieve the targets.

Care should be taken that the figures are properly tracked at all times and there is no
unfair treatment given to a particular sales staff which can demotivate him in the
long term. The objective of trade promotions is clearly to motivate your sales dealer
and their staff to sell the product better. However, unethical means should not be
used to achieve sales targets.

It is upto the company to decide whether the incentive should be in the type of a
monetary reward or it should be gifts given to executive. Gifts have a unique value
and they are more like a recognition and respect for the sales executive. However,
monetary value might be more of a reward for him because he might need the
money or might buy whatever he wishes from that money. It can also be left upto
each executive whether he wants monetary reward or wants to choose gifts.

3. Coupons / Rebates

Coupons are always attractive to end customers because they ensure a guaranteed
discount at the retailer or the dealers outlet. This is also a method to drive traffic to
the retailer’s store and can be especially used when the retail outlet is brand new or
when it is losing out to a competition.

Coupons are types of sales promotions in itself. However, it can be used at the trade
promotions level and the dealer can run Scratch cards or other such coupon based
promotions so that customers get “Assured gifts”. When the company backs the
dealer in running such coupon or rebate based promotions, then the dealer is extra
 motivated to sell your items. At the same time, this ensures liquidation of stock and
refilling at dealer end.

4. Dealer competition

A fantastic way to motivate your dealers to perform better is to keep dealer

competitions. These dealer competitions can be short term or long term. Short term
ones can actually be regional, for example, the best sales dealer in territory X gets a
free print ad in newspaper from the company or he gets free incentives for all his
sales people.

Another, long term format of dealer competition is to keep awards every year or to
have dealer leagues within the company. Example would be a Platinum league of
dealers who get additional 2% discount on all products they sell. Gold league which
gets 1% discount, so on and so forth.

What this does is, it motivates the dealers in 2 ways.

(a) To get the additional discount being offered to league members.

(b) To gain respect in the company. Thus, Dealer competitions can be an excellent
type of trade promotions if used judiciously.

You can also free holidays in the form of conferences or product launches to a group
of dealers who have outperformed in sales and revenue generation.

5. Exhibitions / Trade shows

In one of the companies i worked for, we used to have regional meetings between
the distributors and his dealers. These meetings used to showcase all the products we
had in our company. And we used to keep lunch for all the retailers who report to
distributors. During such sessions, we came across many questions for products.
Some questions were very positive feedbacks where the product could be improved.
Other questions were immediately answered and led to further learning for the
dealers.

Just like the above meeting between distributors and retailers, similar trade
promotion techniques can be used by arranging trade shows and exhibitions where
the dealers get to meet their top customers and answer the queries by these top
customers. At the same time, such exhibitions also help in acquiring new channel
members as well.

6. Co-operative advertising

If you look at newspaper ads done by some popular consumer durable companies
like LG, Sony and others, you will see that they always highlight regional dealers in
their ads. Companies like Apple, which are selective in their dealer selection and
have premium outlets only, directly sponsor their channel dealers to give ads in
newspapers.

The co-operative advertising actually helps the awareness of the channel dealer in
that region. This in turn helps the overall sales of the products and the brand. Co-
operative advertising should be done when the dealer has launched or prior to
seasonal sales. This increases the recall of the brand in the mind of the consumers.

7. Providing Demonstrators

When a customer enters a multi brand showroom, then he himself is confused with
regards to which brand to purchase. At such times, in-shop demonstrators, who are
sponsored by the company can help a lot in convincing the customer and converting
them. These in shop demonstrators are trained to have the complete knowledge of
the product at their fingertips.

Naturally, the brands which provide in-shop demonstrators to retailers and dealers
have the upper hand as compared to brands which cannot sponsor such
 demonstrators. While buying a television, if a demonstrator tells me 10 reasons of
superiority of the product against competitors, then i will buy the television just
because i was given the knowledge. Such informational sales talk can go a long way
in acquiring more customers.

8. POP material or Sampling of product

If your type of products cannot have in shop demonstrators and if they are too low in
value, then there are other types of trade promotions you should use. One is to use
an excellent point of purchase branding exercise. Using various POP material such
as danglers in showroom, on product display, pillar branding etc. can help the brand
retention in the mind of the customers.

Similarly, FMCG products should target impulse buying and should also conduct
time to time sampling of the products. Nowadays, much of the sampling is done by
offering product bundling (1+1 free). Nonetheless, products like perfumes, eatables
etc. can be offered as samples.

b. Discuss the Objective of Trade Promotion as a Marketing Students 10 5

In nutshell, main objectives of market promotion can be described with reference to below stated points:
 To Stimulate Demand:

 To Inform Consumers:

 To Persuade Consumers:

 To Promote a New Product:

 To Face Competition:

 To Create or Improve Image: