chettinadtech.ac.inchettinadtech.ac.in/storage/13-10-08/13-10-08-16-46-4… · web viewthird...

44
M.B.A DEGREE EXAMINATION, MAY/JUNE 2012. Third Semester-Elective ADVERTISEMENT AND SALES PROMOTION Time :Three Hours Maximum : 100 marks Answer All Questions Part A- (10 * 2 = 20 Marks) 1. What are the objectives of Advertising? 1. To educate customers/give information 2. To create demand for new product 3. To retain existing customers/keep the brand name 4. To increase sales 2. What is Advertising Agency? It is an independent company set up to render specialized service in advertising in particular and in marketing in general. It is a company that helps advertisers creates advertisements and place them with appropriate media. 3. What are the factors influencing media Choice? Cost Accuracy Speed Nature of Product 4. What are the essential features of Advertising Budget? It is a continuous process Flexibility Cost of different media 5. Define Layout?

Upload: vandung

Post on 15-May-2018

217 views

Category:

Documents


1 download

TRANSCRIPT

M.B.A DEGREE EXAMINATION, MAY/JUNE 2012.Third Semester-Elective

ADVERTISEMENT AND SALES PROMOTIONTime :Three Hours Maximum : 100

marksAnswer All Questions

Part A- (10 * 2 = 20 Marks)1. What are the objectives of Advertising?1. To educate customers/give information2. To create demand for new product3. To retain existing customers/keep the brand name 4. To increase sales2. What is Advertising Agency? It is an independent company set up to render specialized service in advertising in particular and in marketing in general. It is a company that helps advertisers creates advertisements and place them with appropriate media.3. What are the factors influencing media Choice?

Cost Accuracy Speed Nature of Product

4. What are the essential features of Advertising Budget? It is a continuous process Flexibility Cost of different media

5. Define Layout? Advertisement layout is a process concerned with the physical arrangement of all the elements of advertising message for faster and better sales presentation and communication.6. What is Copy Writing?

Copywriting is the act of writing copy (text) for the purpose of advertising or marketing a product, business, person, opinion or idea.7. Name two consumer oriented sales promotion techniques?

Coupons Premiums Free trials

8. How will you out source Sales Promotion? By finding distributors, suppliers, or wholesalers in the market the manufacturers can promote their products9. What do you mean by Direct Marketing? The practice of delivering promotional messages directly to potential customers on an individual basis as opposed to through a mass medium.10. Explain Online Sales Promotion? Sales promotion activities are widely used on the web. Most online sales promotions are targeted at consumers and are used in combination with advertising.Part B – (5 * 16 = 80 marks)1.(a) How an Advertising campaign is planned? What are the three phases of campaign Creation? An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC).Three Phases of campaign Creation1. Strategy Development Phase : This phase decide the objectives and contents of communication.2. Briefing Phase:-In Briefing phase the client has to brief the agency about the strategy.3. Creative Phase:- In creative Phase there is a creative team having the copywriter and visualization both together. The following is general phases in campaign.Stage 1: Set Advertising Objectives An advertising objective is a specific communication task to be achieved with a specific target audience during a specified period of time.

Advertising objectives fall into three main categories:(a) To inform (b) To persuade (c) To remind Stage 2: Set the Advertising Budget Marketers should remember that the role of advertising is to create demand for a product. The amount spent on advertising should be relevant to the potential sales impact of the campaign. This, in turn will reflect the characteristics of the product being advertised. Stage 3: Determine the key Advertising Messages (A) Meaningful - customers should find the message relevant(b) Distinctive - capture the customer's attention(c) Believable - a difficult task, since research suggests most consumers doubt the truth of advertising in generalStage 4: Decide which Advertising Media to UseThe key factors in choosing the right media include:(a) Reach (b) Frequency (C) Media Impact Stage 5: Evaluate the results of the Advertising Campaign(1)The Communication Effects (2) The Sales Effects

********************************************************************** . OR

(b) (i) What are the ethics to be followed in an advertisement?Ethics : Moral principles and values that govern the actions and decisions of an individual or group.Advertising should be- Be truthful - be non-comparative - give real and true guarantees -Avoid false claims Fair presentation-Acceptable to value system-In line with traditions and customs (ii) Advertising is a bane or benefactor to society.Comment.Advertising has both merits and demerits. I can be beneficiary in many ways

One can introduce new products To boost the sales To create competition To create awareness of products etc.

It can also be said as bane in many ways. They are,• Advertising adds to the cost of products.• Advertising helps sell inferior products.• Advertising creates needs and desires that we would not have otherwise. • Advertising is intrusive.• Much advertising information is false ***********************************************************************12. (a) Suggest the steps for media planning.1. Identify and explain the Steps to be followed in media planning?Steps in Developing the Media Plan

Market Analysis Establishing media objectives Media Strategy Development and Implementation Evaluation and follow-up

1 .Market analysisa. To whom shall we advertise?

b. What internal and external factors are operating?

c. Where to promote?

Using indexes to determine where to promote Survey of Buying Power Index from market research2. Establishing Media Objectives3. Developing and Implementing Media Strategiesa. The Media Mix

b. Target Market coverage

c. Geographic Coverage

d. Scheduling

Reach vs. Frequency Using Gross Rating Points (GRPs): A summary measure that combines the program rating and the average number of times the home is reached during this period (frequency of exposure) GRP = Reach x FrequencyTarget Rating Points (TRPs): Refer to the number of people in the primary target audience the media buy will reach—and the number of times. Unlike GRP, TRP does not include waste coverageDetermining Effective Reach: Represents the percentage of a vehicle’s audience reached at each effective frequency increment. This concept is based on the assumption that one exposure to an ad may not be enough to convey the desired message.Average frequency:The average number of times the target audience reached by a media schedule is exposed to the vehicle over a specified period.Budget considerations Absolute costs of the medium or vehicle is the actual total cost required to place the message. Relative costs refer to the relationship between the price paid for advertising time or space and the size of the audience delivered; it is used to compare media vehicles.4. Evaluation and follow-up ********************************************************************** OR(b) Explain about parts of print media.

1. Background 9. Name Plate2. Border 10. Price3. Caption 11. Product4. Coupon 12. Slogan5. Decoration 13. Space6. Heading 14. Sub-heading

7. Illustration 15. Text8. Mascot 16. Trademark

*************************************************************13. (a) Explain about the types of media.There are various types of advertising which are mentioned below:

Print Advertising : Newspapers, Magazines, Brochures, Fliers

(Electronic media) Broadcast advertising: Television, Radio and the Internet, Film, screen slides

Outdoor Advertising : Billboards, Kiosks, Tradeshows and Events, posters, sky advertising

Direct mail advertising - circulars, pricelist, catalogues Transit advertising - railways, buses, aeroplanes Point of purchase - window display, showrooms, counter display,

Exhibitions Covert Advertising : Advertising in Movies Celebrity Advertising

*****************************************************************************OR(b) Explain the qualities of a good advertisement copy. A good copy of advertisement should possess the following characteristics or qualities or values-1. Attention value,2. Suggestive value,3. Memorizing value,4. Conviction value,5. Sentimental appeal value,6. Education value,7. Instinctive value,

14. (a) Explain the various sales promotion tools used at dealers level .Trade oriented Sales promotional toolsTrading Stamps:Used by large retailers and companies. Such stamps are attached with the quantity of purchase. Price – Off Manufacturers may offer a price – off, which is straight discount off the list price on each case purchased during a stated period of time. Allowance Manufacturers may offer an allowance in return for the retailer’s agreeing to feature the manufacturer’s products in some way. Free Goods Manufacturers may offer free goods, which are extra cases of merchandise to middlemen who buy a certain quantity of items.Push Money Manufacturers may offer push money which is cash or gifts to dealers or their sales force to push the manufacturer’s goods.Specialty Advertising Items Manufacturers may offer free specialty advertising items to the retailers that carry the company’s name such as pens, pencil, calendars, paper weights, and memo pads.Advertising Materials: The advertising materials prepared by the company such as store signs, banners, shelf signs, boards, etc., are distributed to sub-dealers for display purposes. Store Demonstration: In the premises of the wholesaler or the retailer, the producer‘s sales personnel will conduct special demonstrations for the company‘s product. Trade Allowances:

These are temporary price reductions or reimbursement (Repayment or Compensation or Refund) of expenses incurred by dealers, in full or part. Following are some of the allowances:

Trade or Buying Allowance: On purchase of specified quantity of a product, price reduction is offered.

Buy-Back Allowance: A secondary incentive given to traders in the form of some money for each additional unit bought over and above the deal quantity.

Count & Recount: A specific amount of money is offered after ascertaining the number of product units sold during a specified period

Trips abroad Incentives Trade shows Exhibitions********************************************************************OR

(b) Explain how you measure the impact of Sales Promotion.The Impact of Sales Promotion on Sales Sales promotions are only a temporary solution. Without significant sales, no business can survive long-term. Every business owner spends an enormous amount of his time trying to figure out ways to improve sales numbers. How do sales promotions really impact sales?

When Customers Buy? Brand Switching Stockpiling. No Long-Term Value Potential Image Problems Profit Margins

Effect of Sales Promotion on Organizational PerformanceThe effect that sales promotions have on the organizational performance are:1. Encouraging purchase of large size unit.

2. Generating trials among non-users. 3. Persuading retailers to carry new items and higher level of inventory. 4. Encouraging off season buying. 5. Building brand loyalty.*************************************************************************15. (a) Bring out the Integrated Marketing Communication process.Step 1: Identifying the Target Audience Affects decisions related to what, how, when, and where message will be said, as well as who will say itStep 2: Determining Communication Objectives

Six buyer readiness stagesStep 3: Designing a Message

AIDA framework guides message design Message content contains appeals or themes designed to

produce desired results• Rational appeals

• Emotional appeals

• Love, pride, joy, humor, fear, guilt, shame• Moral appeals

Message Structure: Key decisions are required with respect to three message structure issues:• Whether or not to draw a conclusion

• One-sided vs. two-sided argument

• Order of argument presentation

Message Format: Design, layout, copy, color, shape, movement, words, sounds, voice, body language, dress, etc.

Step 4: Choosing Media Personal communication channels

• Includes face-to-face, phone, mail, and Internet chat communications

• Word-of-mouth influence is often critical

• Buzz marketing cultivates opinion leaders

Non-personal communication channels• Includes media, atmosphere, and events

Step 5: Selecting the Message Source Highly credible sources are more persuasive A poor spokesperson can tarnish a brand

Step 6: Collecting Feedback Recognition, recall, and behavioral measures are assessed May suggest changes in product/promotion

******************************************************************OR

(b) Explain Network Marketing and Relationship Marketing . Relationship marketing involves making strong and deep relationship with the consumers (whether they be individuals or organizations), such that the consumer does not shift a brand and has a long term and satisfying relationship with the brand. Relationship Marketing involves developing long term relationship with customers so that they provide you with ongoing business. Relationship marketing need not be used only with your end customers. Your stakeholders are equally important. That is why one of the key goals of marketing activities today is to build strong relationships with customers and stakeholders. Thus in all, the various entities involved in relationship marketing are

1. Customers2. Employees3. Channel partners (Distributors, suppliers etc)4. Financial partners (Shareholders, investors etc)

Network marketing is a business model that is based on a company distributing products and services through a network of independent contractors. Network marketing is also popularly known as multi-level marketing (MLM), affiliate marketing, and tiered marketing. Some of the most well known network marketing companies worldwide are Amway Corporation, Shaklee, Mary Kay, Tupperware and Avon.

The simplest explanation of network marketing is that it is a method of marketing that utilizes independent representatives to reach potential customers that a company otherwise would not reach with traditional online or offline marketing methods. In order to accomplish this, network marketing companies and their associates recruit individuals I.E. “their sales force,” just like other companies and franchises, have done for years, take for example the insurance industry***************************************************************************

M.B.A DEGREE EXAMINATION, NOV/DEC 2011.Third Semester-ElectiveADVERTISEMENT AND SALES PROMOTIONTime : Three Hours Maximum : 100 marksAnswer All QuestionsPart A- (10 * 2 = 20 Marks)1. Define Advertisement. According to American Marketing Association,”Advertising is any paid form of non-personal presentation or promotion of ideas goods or services by an identified sponsor”.2. List out the types of Ad Agencies.

Full service agency Limited service agency In House agency

3. What is meant by reach? Reach is a measure of the number of different audience members exposed at least once to a media vehicle-in a given period of time4. Write a note on media scheduling Scheduling refers to the pattern in which advertising is timed. There are three approached to scheduling

1. Continuity2. Flighting3. Pulsing

5. State the importance of sub-headline

Sub-headlines work as a follow-up to your headline. They can emphasize a particular point, highlight a pressing issue, give solution to an important concern, or blow up an already urgent problem. All these things, work to your advantageSub-headline can do one of the following:

1. Sub-headlines provide an instant solution.2. Sub-headlines can worsen the situation. So it should be done in careful.6. Explain about story board Storyboard is a series of drawings used to present the visual layout of commercial.7. Define sales promotion It is a Short-term incentive to encourage the purchase or sale of a product or service. Examples are coupons, price offs, displays, shows and expositions, demonstrations and etc8. Explain the pull strategy in sales promotion A 'pull' sales promotion strategy focuses more on the consumer instead of the reseller or distributor. This strategy involves getting the consumer to 'pull' or purchase the product/services directly from the company itself.9. What do you mean by POP display? It is the element of sales promotion and concerns itself with signs and displays located in on or adjacent to the place where the advertised product or service is available for purchase. It has the fourfold purpose of informing, reminding, persuading and merchandising. Usually retail stores are in the form of stickers, banners, displays posters, mobiles signs and streamers. The purpose is to get customer attention10. What is co-branding? Co-branding is the practice of using multiple brand names together on a single product or service. Example of co-branding - Citibank co-branded with MTV to launch a co-branded debit card. This card is beneficial to customers who can avail benefits at specific outlets called MTV Citibank clubPart B – (5 * 16 = 80 marks)11. (a) Describe briefly the various social, economic and legal implications of advertising.1. Social Aspects of AdvertisingPositive social Impact

Advertising as a public welfare is a positive social impact Advertising also acts as an educator in the sense that it educates

people what is good and what is bad for them

Advertisement increase the standard of living Knowledge and use of new technologies

Negative Social Impact Advertising plays with emotions and encourages people to think that

buying and depleting are the activities of life Exposing women as a sex tool comes at the negative side Misrepresentation of facts. Advertising is superficial because many ads carry little actual product

information Some ads create confusion and misunderstanding

2. Economical Aspects of Advertising Without advertising, the media, including newspapers, television and

radio would never be much strong we can see a major economic infrastructure based around

advertising, in which the big companies fund and subsidize the commercial media by the way of advertisements

The major economic negative aspect of advertising is that it boosts the price of goods and services

A country’s level of ad spending is proportional to its standard of living.3. Ethical Aspects of Advertising Ethics are the moral standards against which behavior is judged. Key areas of debate regarding ethics and advertising are:

Truth in advertising Advertising to children Advertising controversial products

4.Legal Aspects of advertising Areas of advertising regulation:-Deception (fraud) and unfairnessCompetitive issues–Vertical cooperative advertising–Comparison advertising

–Monopoly power ***************************************************** (OR)(b) What is an ad campaign? Explain how you will plan an Ad campaign selecting a product of your interest. An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC).Three Phases of campaign Creation1. Strategy Development Phase : This phase decide the objectives and contents of communication.2. Briefing Phase:-In Briefing phase the client has to brief the agency about the strategy.3. Creative Phase:- In creative Phase there is a creative team having the copywriter and visualization both together. The following is general phases in campaign.Stage 1: Set Advertising Objectives An advertising objective is a specific communication task to be achieved with a specific target audience during a specified period of time.Advertising objectives fall into three main categories:(a) To inform (b) To persuade (c) To remind Stage 2: Set the Advertising Budget Marketers should remember that the role of advertising is to create demand for a product. The amount spent on advertising should be relevant to the potential sales impact of the campaign. This, in turn will reflect the characteristics of the product being advertised. Stage 3: Determine the key Advertising Messages (A) Meaningful - customers should find the message relevant(b) Distinctive - capture the customer's attention(c) Believable - a difficult task, since research suggests most consumers doubt the truth of advertising in generalStage 4: Decide which Advertising Media to UseThe key factors in choosing the right media include:

(a) Reach (b) Frequency (C) Media Impact Stage 5: Evaluate the results of the Advertising Campaign(1)The Communication Effects (2) The Sales Effects **********************************************************12. What is meant by media plan? Describe in detail the steps in developing a media plan.Steps in Developing the Media Plan

Market Analysis Establishing media objectives Media Strategy Development and Implementation Evaluation and follow-up

1 .Market analysisa. To whom shall we advertise?

b. What internal and external factors are operating?

c. Where to promote?

Using indexes to determine where to promote Survey of Buying Power Index from market research2. Establishing Media Objectives3. Developing and Implementing Media Strategiesa. The Media Mix

b. Target Market coverage

c. Geographic Coverage

d. Scheduling

Reach vs. Frequency Using Gross Rating Points (GRPs): A summary measure that combines the program rating and the average number of times the home is reached during this period (frequency of exposure) GRP = Reach x FrequencyTarget Rating Points (TRPs):

Refer to the number of people in the primary target audience the media buy will reach—and the number of times. Unlike GRP, TRP does not include waste coverageDetermining Effective Reach: Represents the percentage of a vehicle’s audience reached at each effective frequency increment. This concept is based on the assumption that one exposure to an ad may not be enough to convey the desired message.Average frequency:The average number of times the target audience reached by a media schedule is exposed to the vehicle over a specified period.Budget considerations Absolute costs of the medium or vehicle is the actual total cost required to place the message. Relative costs refer to the relationship between the price paid for advertising time or space and the size of the audience delivered; it is used to compare media vehicles.4. Evaluation and follow-up

********************************************************************* (OR)

(b) Enumerate different types of media.There are various types of advertising which are mentioned below:

Print Advertising : Newspapers, Magazines, Brochures, Fliers

(Electronic media) Broadcast advertising: Television, Radio and the Internet, Film, screen slides

Outdoor Advertising : Billboards, Kiosks, Tradeshows and Events, posters, sky advertising

Direct mail advertising - circulars, pricelist, catalogues Transit advertising - railways, buses, aeroplanes Point of purchase - window display, showrooms, counter display,

Exhibitions Covert Advertising : Advertising in Movies

Celebrity Advertising *********************************************************

13. (a) Discuss the different elements of print advertising in detail.1. Background 9. Name Plate2. Border 10. Price3. Caption 11. Product4. Coupon 12. Slogan5. Decoration 13. Space6. Heading 14. Sub-heading7. Illustration 15. Text8. Mascot 16. Trademark *************************************************************13. (a) Explain about the types of media.There are various types of advertising which are mentioned below:

Print Advertising : Newspapers, Magazines, Brochures, Fliers

(Electronic media) Broadcast advertising: Television, Radio and the Internet, Film, screen slides

Outdoor Advertising : Billboards, Kiosks, Tradeshows and Events, posters, sky advertising

Direct mail advertising - circulars, pricelist, catalogues Transit advertising - railways, buses, aeroplanes Point of purchase - window display, showrooms, counter display,

Exhibitions Covert Advertising : Advertising in Movies Celebrity Advertising

******************************************************************** (OR)(b) What is advertisement effectiveness? Explain the various methods of measuring advertising effectiveness. Advertising effectiveness pertains to how well a company's advertising accomplishes the intended. Small companies use many different

statistics or metrics to measure their advertising effectiveness. These measurements can be used for all types of advertising, including television, radio, direct mail, Internet and even billboard advertising.Types of TestsThe various methods of testing advertising copy are 1. Pre-test methods 2. Post-test methods Pre-testing is adopted to measure the effectiveness and accuracy of an advertising plan before its implementation. Post-testing is done after the advertising activities have been completed to examine the effectiveness of these advertising activities. A mid-test involves a test before the completion of advertising functions and after the implementation of then advertising planPre-test refers to the test of an ad-message before releasing the advertisement. Test techniques commonly used are:

Consumer jury method Portfolio test Qualitative research On-the air-test and Theater persuasion test Galvanic skin responses Pupil dilation responses and Eye movement tracking

Post-test Recognition Test Recall (aided and unaided recall) Triple Association Test

*******************************************************************14. (a) Write about the role of sales promotion.• To go for Immediate purchases• To Increase trial• Boost consumer inventory• To Encourage repurchase• Encourage brand switching

• Encourage brand loyalty• Getting customers to try a new service or menu item. • Increasing off-peak sales. • Increasing sales in periods that coincide with major events, vacations,

or special occasions. • Encouraging travel intermediaries to make an effort to sell • Help sales representatives to get business from prospects. • Facilitating intermediary sales. • To attract new tiers, to reward loyal customers, and to increase the

repurchase rates of occasional users (incentive type promotions). • It enables the manufactures to adjust to short-term variations in supply

and demand. • To provide effective sales support. • To increase the speed of product acceptance.

********************************************************************

(OR) (b) List out the sales promotion tools and techniques. Consumer Oriented Sales promotional toolsCoupons Coupons are certificates entitling the bearer to a stated saving on the purchase of a specific product. Cash Refund Offers or Rebates These are like coupons except that the price reduction occurs after the purchase rather than at the retail shopPrice Packs –Bonus packs These are offers to consumers of savings off the regular price of a product, flagged on the label or package. Premiums or Gifts These are merchandise offered at a relatively low cost or free as an incentive to purchase a particular product. Sometimes the package itself

is a reusable container may serve as a premium. A self-liquidating premium is an item sold below its normal retail price to consumers who request it.

a. Over the counter c. Packaged premiumb. Banded premium d. Container premium

Prizes - These are offers of the chance to win cash, trips or merchandise as a result of purchasing something. Free Trials Free trails consist of inviting prospective purchasers to try the product without cost in the hope that they will buy the product. Product Warranties These are an important tool, especially as consumers become more quality sensitive...Point-of-Purchase Displays These take place at the point of purchase or sale. Display of visible mark or product at the entrance of the store is an example. Product Demonstrations Products are being shown in action. Consumers can visit the store and see the usage of product in live action so that doubts of the consumers can be clarified in the store itself. Samples Offer a free amount of a product or service door to door, sent in the mail, picked up in a store, attached to another product, or featured in an advertising offer. A self-liquidating premium is sold below its normal retail price to consumers who request it. Exchange offer Installments Price offTrade oriented Sales promotional toolsTrading Stamps:Used by large retailers and companies. Such stamps are attached with the quantity of purchase. Price – Off Manufacturers may offer a price – off, which is straight discount off the list price on each case purchased during a stated period of time.

Allowance Manufacturers may offer an allowance in return for the retailer’s agreeing to feature the manufacturer’s products in some way. Free Goods Manufacturers may offer free goods, which are extra cases of merchandise to middlemen who buy a certain quantity of items.Push Money Manufacturers may offer push money which is cash or gifts to dealers or their sales force to push the manufacturer’s goods.Specialty Advertising Items Manufacturers may offer free specialty advertising items to the retailers that carry the company’s name such as pens, pencil, calendars, paper weights, and memo pads.Advertising Materials: The advertising materials prepared by the company such as store signs, banners, shelf signs, boards, etc., are distributed to sub-dealers for display purposes. Store Demonstration: In the premises of the wholesaler or the retailer, the producer‘s sales personnel will conduct special demonstrations for the company‘s product. Trade Allowances: These are temporary price reductions or reimbursement (Repayment or Compensation or Refund) of expenses incurred by dealers, in full or part. Following are some of the allowances:

Trade or Buying Allowance: On purchase of specified quantity of a product, price reduction is offered.

Buy-Back Allowance: A secondary incentive given to traders in the form of some money for each additional unit bought over and above the deal quantity.

Count & Recount: A specific amount of money is offered after ascertaining the number of product units sold during a specified period

Trips abroad Incentives

Trade shows Exhibitions

*******************************************************************15. (a) Elucidate in detail the sales promotion planning process When planning a promotional campaign keep in mind that a campaign generally consists of three desired outcomes:

Outcome 1: Your promotional message reaches your intended and targeted audience.Outcome 2: Your message is understood by your audience. Outcome 3: Your message stimulates the recipients and they take action. The question is how do you achieve these outcomes with your campaign? The process is easy, but it takes "planning" time. Here are seven steps that will get your campaign off to the right start. Step 1: Assess Marketing Communication Opportunities. Step 2: What Communication Channels Will You Use?Step 3: Determine Your Objectives Step 4: Determine Your Promotion Mix Step 5: Develop Your Promotional Message Step 6: Develop the Promotion Budget Step 7: Determine Campaign Effectiveness ************************************************************************ (OR)(b). Explain sales promotion evaluation techniques.Methods of evaluation:-1. Sales data method- This method is a widely a accepted practice. In this method, sales volume or market share prior to any sales promotion techniques are measured. 2. Consumer panel data- This technique help to identify that how the customers have been motivated by the sales promotion technique for longer purchase. How much quality have the customers purchased & what were the charges of their buying behavior after the sales promotion program

3. Consumer surveys- This method collects various kinds of information about the customers so as to analysis the effectiveness of sales promotion. The analysis of such information helps to know following things-1) The numbers of customers who have remembered the techniques used.2) The views opinion about these techniques.3) How these technique have been helpful in influencing the buyer’s behavior & brand chore of customer?4) Do the customer require any innovation to be differed in the product?5)Do these techniques improve the image of the firm?6)Do they feel like using these techniques through the year?4. Experiment methods- The effectiveness of sales promotion technique may be measured by experimenting them in selected markets. *************************************************************************

M.B.A DEGREE EXAMINATION, NOV/DEC 2011.Third Semester-Elective

ADVERTISEMENT AND SALES PROMOTIONTime :Three Hours Maximum : 100 marksAnswer All QuestionsPart A- (10 * 2 = 20 Marks)1. Define advertising campaign. An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC).2. What is meant by ethics in advertising? Ethics are the moral standards against which behavior is judged. Key areas of debate regarding ethics and advertising are:

Truth in advertising Advertising to children Advertising controversial products

3. What do you mean by media selection? Advertising media selection is the process of choosing the most cost-effective media for advertising, to achieve the required coverage and number of exposures in a target audience4. Define media mix. It is the Combination of advertising channels employed in meeting the promotional objectives of a marketing plan or campaign5. Define Advertisement Layout Advertisement layout is a process concerned with the physical arrangement of all the elements of advertising message for faster and better sales presentation and communication.6. What is media research? It is a Survey conducted to investigate what segment of consumers read which periodicals and/or listen to or watch which radio or television programs

7. Mention some of the sales promotion techniques? Coupons Premiums

Free trials Samples Price off Allowance

8. What is trade oriented sales promotion? Trade sales promotion is directed at at wholesalers, retailers, and other marketing intermediaries.9. What is integrated promotion? Integrated promotion is the co-ordination and integration of all marketing communications tools, avenues, and sources within a company into a seamless program that maximizes the impact on consumer and other end users at a minimal cost10. Define word of mouth advertising?An unpaid form of promotion in which satisfied customers tell other people how much they like a business, product or service

Part B – (5 * 16 = 80 marks)11. (a) Discuss AIDA and DAGMAR concept.

(Defining Advertising Goals for Measured Advertising Results)

InterestAttention Desire Action

Unawareness

Conviction

Awareness

Comprehension

Meaning & Introduction of DAGMAR: Defining Advertising Goals for Measured Advertising Results.

It is a book written in 1961 by Russell H. Colley The book introduced what has become known as the DAGMAR

approach to advertising planning and included a precise method for selecting and quantifying goals and for using those goals to measure performance.

The first important concept of DAGMAR approach is to define an advertise goal i.e. communication task. The second important concept of the DAGMAR approach is that the advertising goal be specific.

A hierarchy of effects model of the communication process by DAGMAR first important concept.

The initial communication task of the brand is to increase consumer awareness of the brand.

The second step of the communication process is brand comprehension and involves the audience (customers) learning something about the brand.

The third step is the attitude that is the interaction of the advertisement with the customer.

The final step is the action phase makes the buyer to buy the product. The second important concept of the DAGMAR approach is that the advertising goals be specific.

1. Measurement procedure – Goals to be made specific and it should include measurement procedure.

2. Benchmark - A standard or point of reference against which our advertisement goals have to be compared or assessed with that of competitors.

3. Target Audience. 4. Time period e.g. Parlie – G. 5. Written Goals.

Action

*********************************************************************** OR(b) What is advertising agency and how the budget are set for the advertisements.

The American Association of Advertising Agency (AAAA) defines an advertising agency as “an independent organization of creative people and business people who specialize in developing and preparing advertising plans, advertisements and other promotional tools.”Budgeting MethodsThere are several allocation methods used in developing a budget. They are,

Percentage of Sales method Objective and Task method Competitive Parity method Market Share method Unit Sales method All Available Funds method Affordable method

******************************************************************OR12. (a) What are the steps involved in media planning.

Steps in Developing the Media Plan Market Analysis Establishing media objectives Media Strategy Development and Implementation Evaluation and follow-up

1 .Market analysisa. To whom shall we advertise?

b. What internal and external factors are operating?

c. Where to promote?

Using indexes to determine where to promote Survey of Buying Power Index from market research2. Establishing Media Objectives3. Developing and Implementing Media Strategiesa. The Media Mix

b. Target Market coverage

c. Geographic Coverage

d. Scheduling

Reach vs. Frequency Using Gross Rating Points (GRPs): A summary measure that combines the program rating and the average number of times the home is reached during this period (frequency of exposure) GRP = Reach x FrequencyTarget Rating Points (TRPs): Refer to the number of people in the primary target audience the media buy will reach—and the number of times. Unlike GRP, TRP does not include waste coverageDetermining Effective Reach: Represents the percentage of a vehicle’s audience reached at each effective frequency increment. This concept is based on the assumption that one exposure to an ad may not be enough to convey the desired message.Average frequency:The average number of times the target audience reached by a media schedule is exposed to the vehicle over a specified period.Budget considerations Absolute costs of the medium or vehicle is the actual total cost required to place the message. Relative costs refer to the relationship between the price paid for advertising time or space and the size of the audience delivered; it is used to compare media vehicles.4. Evaluation and follow-up

****************************************************************

OR(b). Briefly discuss about media mix, strategy and scheduling.Scheduling In advertising media planning, scheduling refers to the pattern in which advertising is timed. It is represented as plots on a yearly flowchart that indicates the pattern of times advertising should appear so that it coincides with the most favorable selling periods. The classic scheduling models are Continuity, Flighting and Pulsing.Media Mix Combination of media to be used in an advertising campaign. In the past, television and magazines dominated the media mixes of most national advertising campaigns because these media reached the broadest segments of the market.Media Strategy A plan of action by an advertiser for bringing advertising messages to the attention of consumers through the use of appropriate media. *******************************************************************13. (a) What are the Steps involved in copy structure

In general, an advertisement consists of five parts: headline, subheads , body copy, slogan, closing. They play different roles and serve different purposes and hence may not be equally important, but none is dispensable.Headline- Headlines usually have the largest font size. It is usually 5 to 8 words in length. Use simple, easy to understand words. Appeal to the self interest of the audience. The headline has several functions:•gives news •reinforces the brand•attracts attention •attracts a target market•increases curiosity •arouses emotions •calls to action 

Subhead line

This optional device often occurs right below the headline. The subhead line uses a few words that clarify, reinforces or explains the headline. The goal is to provide a smooth transition into the body copy.Body Copy This is the text in the advertisement that provides support and details about the product or the current offer. Often the body copy will use present tense, singular. Use Active verbs. Vary the sentence length. Involve the audience. Many types of body copy are possible:• benefits of the product •testimonial from customers•expert opinion •narrative about the product or a customer •examples •options•statistics about the product • positioning information Tagline -Often this is the brand slogan that has been used for yearsLogo - Brand symbol and/or word ******************************************************************OR(b) Discuss about media research. “the examination of different types of media such as newspapers and television, to see which is best for promoting a particular type of product.”Following Information gathered through media researchFocuses on six aspects:1. Media distribution2. Media audience3. Advertising Exposure4. Advertising Perception5. Advertising Communication6. Advertising PurchaseMethods used for media research

Telephone interviewing (Coincidental method)

Also known as coincidental telephone interview, this method involves telephone interview with a sample of respondents during the broadcasting hour.

Using audimeter device Developed by A.C. Nielson Company, this is the most sophisticated method of TV audience measurement. A technical device called ‘audimeter’ is attached to each of the TV sets of a panel of preselected households. The device automatically records the time when the TV set is switched on (and off), the channel watched, and duration of watching; and instantly transmits the data to a central computer for processing. However, an audimeter does not record who in the household is/are watching.

Using people meterA technical device that like audimeter, which is activated (and deactivated) by each household member pressing a button when he or she watches the program (stops watching it).

Diary MethodA specially designed diary is given to a panel of households to record the programmes of television viewing behavior of the viewer. ******************************************************************14. (a) Briefly discuss about sales promotion techniques.Trade oriented Sales promotional toolsTrading Stamps:Used by large retailers and companies. Such stamps are attached with the quantity of purchase. Price – Off Manufacturers may offer a price – off, which is straight discount off the list price on each case purchased during a stated period of time. Allowance Manufacturers may offer an allowance in return for the retailer’s agreeing to feature the manufacturer’s products in some way. Free Goods Manufacturers may offer free goods, which are extra cases of merchandise to middlemen who buy a certain quantity of items.

Push Money Manufacturers may offer push money which is cash or gifts to dealers or their sales force to push the manufacturer’s goods.Specialty Advertising Items Manufacturers may offer free specialty advertising items to the retailers that carry the company’s name such as pens, pencil, calendars, paper weights, and memo pads.Advertising Materials: The advertising materials prepared by the company such as store signs, banners, shelf signs, boards, etc., are distributed to sub-dealers for display purposes. Store Demonstration: In the premises of the wholesaler or the retailer, the producer‘s sales personnel will conduct special demonstrations for the company‘s product. Trade Allowances: These are temporary price reductions or reimbursement (Repayment or Compensation or Refund) of expenses incurred by dealers, in full or part. Following are some of the allowances:

Trade or Buying Allowance: On purchase of specified quantity of a product, price reduction is offered.

Buy-Back Allowance: A secondary incentive given to traders in the form of some money for each additional unit bought over and above the deal quantity.

Count & Recount: A specific amount of money is offered after ascertaining the number of product units sold during a specified period

Trips abroad Incentives Trade shows Exhibitions

************************************************************OR

(b) Explain the process of IMC.Step 1: Identifying the Target Audience Affects decisions related to what, how, when, and where message will be said, as well as who will say itStep 2: Determining Communication Objectives

Six buyer readiness stagesStep 3: Designing a Message

AIDA framework guides message design Message content contains appeals or themes designed to

produce desired results• Rational appeals

• Emotional appeals

• Love, pride, joy, humor, fear, guilt, shame• Moral appeals

Message Structure: Key decisions are required with respect to three message structure issues:• Whether or not to draw a conclusion

• One-sided vs. two-sided argument

• Order of argument presentation

Message Format: Design, layout, copy, color, shape, movement, words, sounds, voice, body language, dress, etc.

Step 4: Choosing Media Personal communication channels

• Includes face-to-face, phone, mail, and Internet chat communications

• Word-of-mouth influence is often critical

• Buzz marketing cultivates opinion leaders

Non-personal communication channels• Includes media, atmosphere, and events

Step 5: Selecting the Message Source Highly credible sources are more persuasive

A poor spokesperson can tarnish a brandStep 6: Collecting Feedback

Recognition, recall, and behavioral measures are assessed May suggest changes in product/promotion

***************************************************************15 .(a) How will you produce television advertisements?Copywriting for TelevisionHow to Write Television Copy?• Moving action makes television so much more engaging than print• The challenge is to fuse the images with the words to present a creative concept and a story• Storytelling is one way copywriters can present action in a television commercial more powerfully than in other mediaTools of Television Copywriting• Video• Audio• Voice-over• Off camera• Other TV Tools• The copywriter must describe all of these in the TV scriptTalent• Announcers• Spokespersons• Character types• CelebritiesPlanning the TV Commercial• What’s the Big Idea?• What’s the benefit?• How can you turn that benefit into a visual element?• Gain the viewer’s interest

• Focus on a key visual• Be single minded ********************************************************************** (OR)(b). What are the factors to be considered while organizing sales promotion campaign?Factors to be Considered in organising Sales Promotion Campaign1. Identifying and Defining Sales Promotional Objectives

Is it to enhance dealer’s off-take of the product? Is it to bring extra sales? Is it to clear accumulated stock Is it to supplement advertisement?

2. Identify the Right Promotional Programme The firm has to select the right promotional programme suitable to the current need and the current situation.3. Enlist the Support and Involvement of Salesmen For success, it is essential that salesmen are briefed on the context and content of the promotion programme, informed their roles and given detailed information /guides regarding what they to do during different stages of the campaign.4.Enlisting the Support of Dealers Since major part of the activity has to take place around the dealer, it is essential to enlist their support and motivate them.5.Timing of the Campaign The programme has to be launched at the appropriate time.6.Launching and Follow-up The programme has to be perfectly launched and tempo should be maintained till end with proper follow-up.