 Introduction of advertisement

Advertising is a non-personal form of promotion that is delivered through selected media

outlets that, under most circumstances, require the marketer to pay for message placement.
Advertising has long been viewed as a method of mass promotion in that a single message
can reach a large number of people. American Marketing Association defines advertising as
"any paid form of non personal presentation of ideas, goods and services by an identified
sponsor".

Elements 1. It can be in any form like a sign, symbol, an illustration or ads in magazines,
newspapers, radio or TV.

2. It is non personal: There is no personal selling involved in it.

3. It is employed to communicate information about goods and services.

4. It is openly paid by an identified sponsor Importance of Advertising Market research firm

Zenith antimedia estimates that worldwide spending on advertising exceeds (US) $400
billion. This level of spending supports thousands of companies and millions of jobs. In fact,
in many countries most media outlets, such as television, radio and newspapers, would not be
in business without revenue generated through the sale of advertising.

1. Advertising is an important contributor to economic growth

2. Advertising is the communication link between the seller and the buyer

3. Advertising informs, persuades and reminds the customers about a product.

4. It helps in achieving organizational goals.

5. Advertising is complementary to personal selling

6. It is a tool of marketing and a component of overall promotion activities

7. Advertising influence the marketing mix or 4 Ps-Product, Place, Price and Promotion

8. Advertising is also useful for promoting:

 products that have easily communicated features products low in price

 Products sold through independent channel members and/or are new.

9. Promoting Products or Organizations – Institutional Advertising promotes organizations,

images, ideas or political issues. 1E Beer Company sponsors responsible drinking to promote
the company image. Product Advertising promotes goods and services.

10. Stimulating Primary and Selective Demand – First to introduce product needs to stimulate
primary demand. Pioneer Advertising informs people about the product (introduction stage of
the product life cycle). Do not emphasize the brand name. It can also be used to stimulate the
demand for a product group. For Selective demand, advertisers use Competitive advertising,
brand uses, benefits not available with other brands. Can use comparative 'advertising, E.g.
Competitive advertising between Pepsi and Coco Cola 11. Offsetting Competitors
Advertising – Defensive advertising, offset to lessen the effect of competitors advertising.
Used in fast food industry, extremely competitive consumer products markets. 12. Making
salespersons more effective – Tries to presell product to buyers by informing them of uses,
features and benefits- encourage them to contact dealers etc.

 IMPORTANCE, OF ADVERTISING TO DIFFERENT ELEMENTS OF

MARKETING/BUSINESS IMPORTANCE TO MANUFACTURES
 It helps easy introduction of new products into the markets by the same manufacturer
 It helps to create an image and reputation not only of the products but also of the
producer or advertiser. In this way, it creates goodwill for the manufacturer.
 Retail price, maintenance is also possible by advertising were price appeal strategy
 It helps to establish a direct contact between manufacturers and consumers.
 It leads to smoothen the demand of the product. It saves the product from seasonal
fluctuations by discovering new and new usage of the product.
 It creates a high
 ly responsive market and thereby quickens the turnover that results in lower
inventory.
 Selling cost per unit is reduced because of increased sale volume. Consequently,
product overheads are also reduced due to mass production and sale.
 Advertising gives the employees a feeling of pride in their jobs and to be in the
service of such a concern of repute. It thus inspires the executives and worker to
improve their efficiency.
 Advertising is necessary to Meet the competition in the market and to survive.
IMPORTANCE TO WHOLESALES AND RETAILERS
 Easy sale of -the products are possible since consumers are aware of the product and
its quality.
 It increases the rate of the turn-over of the stock because demand is already created by
advertisement.
 It supplements the selling activities.
 The reputation created is shared by the wholesalers and retailers alike because they
need not spend anything for the advertising of already a well-advertised product:
 It ensures more economical selling because selling overheads are reduced
 It enables them to have product information. IMPORTANCE TO CONSUMERS
 Advertising stresses quality and very often prices. This forms an indirect guarantee to the
consumers of the quality and price. Further large-scale production assumed by advertising
enables the seller-to-seller product at a lower cost.
 Advertising helps in eliminating the middlemen by establishing direct contacts between
producers and consumers. It results in cheaper goods.
 It helps them to know where and when the products are available. This reduces their shopping
time. • It provides an opportunity to the customers to compare the merits and demerits of
various substitute products.
 This is perhaps the only medium through which consumers could know the varied and new
uses of the product.
  Modern advertisements are highly informative. IMPORTANCE TO SALESMEN
Salesmanship is incomplete without advertising. Advertising serves as the forerunner of a.
salesman in the distribution of goods. A sale is benefited the advertisement in following ways:
 Introducing the product becomes quite easy and convenient because manufacturer has already
advertised the goods informing the consumers about the product and its quality.

 METHODS OF SETTING ADVERTISING BUDGET

 Affordable method
 2.Percentage of sales method
 3. Competitive parity method

 AFFORDABLE METHOD
 Advertisers base their advertising budget on what they can

afford.

 An amount after allocating all the relevant company

expenditure is given for advertising.

 It is based on the presumption that the firm can only afford

that much amount on advertising.

 This method is not logical since it doesn't consider the

advertising needs of the firm.

 PERCENTAGE OF SALES METHOD.

 A fixed percentage of the sales figure is allocated as

 advertising budget.
 This sales figure could be last year's sales figure or the
 average of the sales figures of last years.
 It may also use projected sales figure in determining the
 advertising budget.
 COMPETITIVE PARITY METHOD

 The advertising expenditures of competitors are taken as the

 guidelines for setting advertising budget.
 It is based on the belief that the firm will maintain his market
 share as it spends same amount on advertising as his
 competitors
 OBJECTIVE AND TASK METHOD
  Most logical way of setting advertising budget.
 • It focusses on the advertising task that is to be achieved.
 Advertising objectives are fixed after intensive market

 STEPS
 Task definition
 Determining the type of strategy, media and amount of
 exposure required for efficient satisfaction of the task set
 Estimating the cost of various elements of advertising.
 Deciding whether the firm can afford the budgets used as a defensive device by the
advertise.

 ADVERTISING BUDGETING PROCESS

 Setting advertising objectives
 Determining the task to be performed to achieve the
 objectives.
 Preparing advertising budget.
 Approval of the top management.
 Allocation of advertising budget
 Monitor and control

 FACTORS INFLUENCING THE ADVERTISING BUDGET

 Advertising task to be achieved
 Stages in the product life cycle.
 Market share
 Competition
 Frequency of advertising
 Product differentiation
 Resources Financial

 Types of Advertising
A. Advertising based on Demand influence Level Advertising can be grouped on the basis of
whether advertisers attempt to promote in general or specific brand of product. Two types of
advertising can be grouped in this category

1. Primary Demand Advertising – Primary demand refers to the demand for the generic products
like TV, Milk and Magazines, etc. Primary demand advertising intends to promote the demand of
a product and not simple one particular brand of that product.
2. Selective Demand Advertising – The selective demand advertising is done with the objective
of stimulating the demand of specific brands in which the advertiser deals. Competitive
advertising stimulates selective demand. The advertisement of Surf, Godrej, Colgate, Nescafe,
Samsung, and Sony are all examples of selective brand advertisements.
B. Advertising based on Objectives
Another classification of advertising is on the basis of objective/functions they are expected to
perform. Such advertising comprises of –
1. Institutional Advertising – The institutional advertising is intended of focus and enhance the
image of the institution. Big companies like Reliance, L&T, and Godrej etc. resort to this type of
advertising.
2. Product Advertising – A large number of advertisements fall under this category. The purpose
of this advertising is to stimulate the demand of the product being advertised and includes
description of the product, size, quality benefits, uses etc.
3. Public Service Advertising – Public service advertising is done as part of social responsibility
by the advertiser. The focus of this advertising is welfare of the public and includes social,
economic and cultural issues of public interest. For instance, advertisements of road safety,
pollution control, AIDS family Welfare, literacy etc, such advertising may intend to educate,
creating awareness, information and reminding the public at large.
C. Advertising based at Audience

Such advertising is targets to specific segment of audience and depending the nature and
requirements of the audience. Advertising copy is prepared and messages are drafted. Such
advertising includes –
1. Consumer Advertising – Most of the consumer goods producer engage in consumer product
advertising. Such advertising is done for the ultimate user of the product appealing directly to the
buyers/consumers. Toothpastes, Soaps, Cold, Drinks and Cosmetics are all examples of
consumer advertising. Such advertising may be done through various media like Radio, TV and
Print (newspapers and magazines.)
2. Industrial Advertising – The manufacturer of industrial goods such as raw material,
machinery, equipments, suppliers or fabricated parts do industrial goods such as advertising is
targeted towards industrial buyers with the object of promoting goodwill of the product as well as
the company persuades industrial users to deal in the product being advertised. Such advertising
is done through Trade Journals, Magazines, Catalogues and Direct Mail etc.
3. Trade Advertising – This category includes all such advertisements that are directed to
retailers and suppliers of consumer’s goods. the main purposes of these advertising are to
convince the retailers to stock a particular product and emphasis is an improved profit potential.
4. Professional Advertising – There are certain products for which consumers they do not take
the buying decision. The professionals like doctors, dentists, architects, civil engineers etc. exert
considerable influence in consumers purchase decisions. Because these professionals are
considered to be an expert in their field, the consumers respect their judgment about the quality
and usefulness of the product hence these professionals demand comprehensive evaluate criteria
for the product.
D. Timing of the Response it Elicits Such advertising includes –
1. Direct Action Advertising – The objective of direct-action advertising is to obtain the
immediate or response over a short period of time. Such advertising use words like – Hurry,
Discount/offer is valid for limited period, send the enclosed etc. Such advertisements are given to
make sakes promotion campaign successful.
2. Indirect Action Advertising – Such advertising to create a favorable attitude of the customer
about the product, company. Therefore, such advertising is a normal part of the company’s
advertising strategy to get a positive response in the long run and not on seeking immediate
response in the form of inquires or orders. Action sought here is indirect in nature.
  Commercial Advertising
 Commercial advertising in general is the use of advertising to generate revenue. One important
aspect of commercial advertising is that it creates a demand or a perceived need for something.
As soon as the consumer has a reason to want, commercial advertising is there to offer a solution
to that need.
 Advertisements give answer to a consumer’s questions, including where to eat, where to go, or
what to buy. Effective advertising works to create a desire a solution to that need. Not every
aspect of commercial advertising relates to fulfilling and immediate need. Advertisers also strive
to create name recognition, which is commonly called “branding”. Effective branding means the
consumer instantly recognizes the company or the product name and has come to feel positively
about it. Companies use commercial advertising in an effort to impress consumers with how
happy they will be once they buy the item or use the service offered.
 Non-Commercial Advertising
 It is sponsored by or for a charitable institutions or civic group or religious or political
organization. Many noncommercial advertisements seek money and placed in the hope of raising
funds. Others hope to change consumer behavior. So, the main goals of noncommercial
advertising are –
 Stimulate inquires for information
 Popularize social cause
 Change activity habits
 Decrease waste of resources
 Communicate political view point
 Improve public attitude
 Remind people to give again So-called word-of-mouth advertising is a person communication
that is perceived as using noncommercial concerning goods or services, it is face-to-face product
related communications between and among the friend’s relatives and others. Because it is
usually seen as being an unbiased source of information.

A
 PROJECT REPORT

ON

“Advertising Sales Promotion and Sales Management”

Submitted to

Mahatma Jyotiba Phule Rohilkhand University, Bareilly U.P

(SESSION 2023 - 2024)

For the partial fulfillment of Degree in

Bachelor of Commerce

R.S.D. ACADEMY, MORADABAD

(Affiliated to Mahatma Jyotiba Phule Rohilkhand University,

Bareilly)
Project Guide: Submitted by: BHAVYA
Mr. AHMED JAMAL B. Com: – IIIrd SEMISTER
Roll No.: - 230046200042
 ACKNOWLEDGEMENT

It is pleasure to acknowledge the assistance of a number of people without whose help this
major project could not be completed.

I wish to acknowledge my indebtedness to Dr. Vinod Kumar and Dr. (Mrs.) G. Kumar.

I express my profound sense of gratitude to my project guide Mr. AHMED JAMAL for
giving encouragement in taking up the project.

I am also thankful to all my faculties for motivating and librarian for making available to me
the important books in the library and the necessary guidance for this project.

At last, but not least, I express my thanks to my parents, who provided me support
throughout this project. They have been a perennial source of inspiration for me.

I am too small so thank GOD for anything and everything.

BHAVYA;

STUDENT DECLARATION
Project title: Advertising Sales Promotion and Sales Management
I, Hargun Singh, certify that this project is my own work, based on my personal study and/or
research and that I have acknowledged all material and sources used in its preparation,
whether they be books, articles, reports, lecture notes, and any other kind of document,
electronic or personal communication.

I also certify that this project has not previously been submitted for assessment in any
academic capacity, and that I have not copied in part or whole or otherwise plagiarized the
work of other persons.

I confirm that I have identified and declared all possible conflicts that I may have.

Signed and submitted

Students Name: BHAVYA HINDUJA;

Date: 22/12/2023