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Think Tank - Advertising & Sales Promotion
Think Tank - Advertising & Sales Promotion
Published by :
Think Tanks
Biyani Group of Colleges
Edition : 2011
While every effort is taken to avoid errors or omissions in this Publication, any
mistake or omission that may have crept in is not intentional. It may be taken
note of that neither the publisher nor the author will be responsible for any
damage or loss of any kind arising to anyone in any manner on account of
such errors and omissions.
Advertising Management
Preface
am glad to present this book, especially designed to serve the needs of the
students. The book has been written keeping in mind the general
weakness
in
understanding the fundamental concepts of the topics. The book is self-explanatory and
adopts the Teach Yourself style. It is based on question-answer pattern. The language of
book is quite easy and understandable based on scientific approach.
Any further improvement in the contents of the book by making corrections,
omission and inclusion is keen to be achieved based on suggestions from the readers for
which the author shall be obliged.
I acknowledge special thanks to Mr. Rajeev Biyani, Chairman & Dr. Sanjay Biyani,
Director (Acad.) Biyani Group of Colleges, who are the backbones and main concept
provider and also have been constant source of motivation throughout this Endeavour.
They played an active role in coordinating the various stages of this Endeavour and
spearheaded the publishing work.
I look forward to receiving valuable suggestions from professors of various
educational institutions, other faculty members and students for improvement of the
quality of the book. The reader may feel free to send in their comments and suggestions
to the under mentioned address.
Author
Contents
S.No
Unit Name
Introduction to Advertising
Type of Advertising
Advertising Media
Sales Promotion
Case Studies
Annexure
1. Bibliography
2. Multiple Choice Questions
Advertising Management
Syllabus
Unit- I
Introduction to Advertising
Q.1
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8. Specific: Companies also use a variety of more specific goals. Increasing brand
awareness, developing more favorable customer attitudes, overcoming negative
publicity, driving revenue, expanding the customer base and increasing sales
volume are common examples. For effective goal-setting, marketers should set
quantified, measurable criteria. For instance, don't just say our goal is to increase
brand awareness. State that our goal is to increase brand awareness by 25 percent in
our primary target market within six months.
9. Preparing Ground for New Product
New product needs introduction because potential customers have never used such
product earlier and the advertisement prepare a ground for that new product.
10.Creation of Demand
The main objective of the advertisement is to create a favorable climate for maintaining
of improving sales. Customers are to be reminded about the product and the brand. It may
induce new customers to buy the product by informing them its qualities since it is
possible that some of the customers may change their brands.
11. Facing the Competition
Another important objective of the advertisement is to face to competition. Under
competitive conditions, advertisement helps to build up brand image and brand loyalty
and when customers have developed brand loyalty, becomes difficult for the middlemen
to change it.
12. Creating or Enhancing Goodwill: Large scale advertising is often undertaken with
the objective of creating or enhancing the goodwill of the advertising company. This, in
turn, increases the market receptiveness of the company's product and helps the salesmen
to win customers easily.
13. Informing the Changes to the Customers
Whenever changes are made in the prices, channels of distribution or in the product by
way of any improvement in quality, size, weight, brand, packing, etc., they must be
informed to the public by the producer through advertisement.
14. Neutralizing Competitor's Advertising
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Easy sale of the products is 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.
Benefits 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.
Benefits to Salesmen
Salesmanship is incomplete without advertising. Advertising serves as the forerunner of a
salesman in the distribution of goods. Sales 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.
Advertising prepares necessary ground for a salesman to begin his work
effectively. Hence sales efforts are reduced.
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Benefits to Society
Q.3
12
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business potential, otherwise you could be wasting your time. In order to qualify your
prospects, one needs to:
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Remember to ask plenty of questions. Use open questions, e.g. TED's, and closed
questions i.e. questions that will only give the answer 'yes' or the answer 'no.' This
way you can dictate the direction of the conversation.
Never be too afraid to ask for the business straight off.
Stage Four - Objection Handling.
Objection handling is the way in which salespeople tackle obstacles put in their way
by clients. Some objections may prove too difficult to handle, and sometimes the
client may just take a dislike to you (aka the hidden objection). Here are some
approaches for overcoming objections:
Just ask for the business! - 'Please may I take an order?' This really works well.
Look for buying signals (i.e. body language or comments made by the client that
they want to place an order). For example, asking about availability, asking for
details such as discounts, or asking for you to go over something again to clarify.
Just stop talking, and let the client say 'yes.' Again, this really works.
The 'summary close' allows the salesperson to summarize everything that the
client needs, based upon the discussions during the call. For example, 'You need
product X in blue, by Friday, packaged accordingly, and delivered to your wife's
office.' Then ask for the order.
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The 'alternative close' does not give the client the opportunity to say no, but forces
them towards a yes. For example 'Do you want product X in blue or red?' Cheeky,
but effective.
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Unit 2
Type of Advertising
Q.1
Ans
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Ans.
Commercial and non-commercial advertising are both strategies that are designed
to reach the public and motivate them to become more interested in the subject
matter of the advertisements. While sharing a common goal that of generating
consumer interest, the two forms of advertising do focus on different types of
products. Essentially, commercial advertising has to do with selling goods and
services, while non-commercial advertising is more about providing information
and motivating people to act after being exposed to that information. There are
examples of campaigns in which marketers combine elements of commercial and
non-commercial advertising to create an approach that both informs and motivates
consumers to buy.
Understanding the difference between commercial and non-commercial
advertising involves identifying the purpose for the advertisements. With
commercial advertising, the idea is to sell something to a consumer that will allow
the manufacturer of the product to earn a return from that sale. Advertisements for
consumer goods like electronics, food products, and even vacation packages are
all marketed and sold as part of a commercial advertising campaign.
By contrast, non-commercial advertising is about sharing information that
hopefully people will put to good use. For example, a non-profit may implement
an advertising campaign to increase public awareness and education about a
certain health issue. As part of the advertising, information about what the disease
is, who it can affect, and how it can be treated may be included. In addition,
information on how people can help the non-profit spread the information and
also promote further research is also likely to be shared. In this scenario,
information is being sold, but there is not necessarily an expectation of receiving
monetary compensation for the effort, although this type of campaign does
normally motivate some people to donate funds for research or to the sponsoring
non-profit.
When thinking of the difference between commercial and non-commercial
advertising, it is often easiest to consider the former as being targeted to generate
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sales and revenue. At the same time, the latter is focused more on educating
people and providing them with opportunities to act on that acquired knowledge.
In some cases, the lines between commercial and non-commercial advertising will
blur somewhat, with some manufacturers of goods and services using an
advertising strategy that is intended to inform and educate while also promoting a
product for sale. This hybrid approach to the advertising task can in fact be very
successful, in that the effort to educate consumers will often equip them to make
informed decisions regarding the product or products offered, which means they
are more likely to be satisfied with the purchase, as long as the product does in
fact provide the benefits mentioned in the advertising.
Q.3
Ans.
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Ans.
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Q.5
Ans.
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Unit 3
Advertising Media
Q.1
How print media is important in advertising industry? Explain its pros and
cons.
Ans.
Print media is one of the most important marketing tools available to the
business. Marketing people generally design and print brochures, business cards,
flyers, postcards and more. It facilitates business to provide valuable information
to their respective audiences and target markets with premium quality print
products.
The characteristics of the print media are as follows:
The print media like newspapers and magazines gives us an in-depth
coverage and analysis of news stories around the world. These stories are
permanent and readily available to the common people in times of need.
The news stories can be read, re-read and retained.
The timeliness of news in the print media is limited. Unlike the electronic
media, they do not give us immediate news but it has the luxury of
detailed representation, interpretation and analysis.
A lot of variations are found in the print media in the forms of hard news,
soft news, features, gossips, page 3 news, etc.
Magazines serve special interests like fashion, food, politics, economics,
etc.
The print media is considered to be one of the most flourishing industries today.
This medium is also particularly very popular to reach the target audience for
advertisers. The different types of print media give a plethora of options for
people to reach a varied bracket of users.
The following are the advantages of print media:
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Q.2
Ans.
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Ans.
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Cost is very high. Television advertising costs more than other forms of media,
such as radio, magazine, newspaper and Internet advertising. Quality commercials
are expensive to produce
TV advertisements are short, thus they do not express much about the product.
Consumers often bemoan the intrusive nature of television advertisements and
find ways to avoid commercials. This limits the effectiveness of television
advertising. Consumers either take time out during a commercial to make a trip to
the refrigerator or surf programs on other channels.
Q.4
Ans.
Advantages:
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Disadvantages:
Ads are generally having a short shelf life, as newspapers are usually
read once and then discarded.
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readers now skip the print version of the newspaper (and hence the
print ads) and instead read the online version of the publication.
Q.5
Ans.
Q.6
Ans.
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Ans.
Radio advertising can be an excellent means to get our marketing message out to
the public as daily millions of people are listening to the radio and there are many
different radio stations to suit different target markets.
Indeed, radio advertising is affordable and has proven to be the most effective
medium for delivery of advertisements to targeted audiences which can be prove by following
facts:
Audience- Potential Customers: Radio talk programs, morning shows, shockjocks, and listener call-in shows all provide an enormous audience base to
advertise our product or service.
Focus on Frequency
Another element that can affect the success of radio advertising is how often our ad is
aired. The more times it is on, the more likely people are to hear it a couple of times
and the more likely they will be to purchase our products or services. It is often
necessary for someone to hear our ad at least seven times before they will actually
purchase our product.
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Affordability
Radio is the only mass medium that people use while driving, cleaning the
house or mowing the lawn.
Q.8
Ans.
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companies may find it useful for generating new business outside of their
customer base or geographic area. Another advantage of direct mail is that it is
testable, so that entrepreneurs can try out different sales messages on various
audiences in order to find the most profitable way to market a product or service.
Direct mail is also an effective medium in business-to-business marketing. Since
business orders are usually of larger value than consumer purchases, it often takes
more than one mailing to begin the process of making a sale. In addition to
making sales, business-to-business direct mail can be used to generate new
sales leads.
Q.9
Ans.
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2. Car advertising- This is another type of advertising that you can consider when
we are thinking about outdoor advertisements. It refers to painting companys ads
on the cars so that people will notice the ads when the cars are being driven on the
busy roads. We can consider using our companys cars for this kind of
advertisement and we can even consider putting our ads on the other peoples
cars. Of course, we will have to pay a certain amount of money for putting up our
ad on someone elses car.
3. Outdoor signs- It is very important to have outdoor signs placed outside factory
and office because they not only create brand equity, they also attract consumers
to buy goods and services. We can think of our outdoor signs to be our salesmen
because they act as our salesmen 24/7. Most importantly, we do not have to spend
much money to have these signs outside placed our office or factory.
4. Electric Light Signs: Sign-boards illuminated by electricity can be seen in large
number in cities. They are presented with attractive letters and coloured bulbs.
5. Neon Signs: Advertisement is also presented with brilliantly tubes in various
shades. The tubes can be of the still or the flashing type. These signs look more
attractive but the cost of this device is high.
6. Traveling Displays: It is also known as transit advertising or car cards.
7. Van Advertising: Displays can also be made on the front, sides and backs of
vehicles and vans. These are made of durable materials.
8. Banners: Banners are made of cloths and words are written in colours. They are
tied on the top of buildings, road crossings, stadiums and play fields for the
publicity of goods.
9. Railway Stations: Advertisements can also be placed on railway stations. These
may be in form of posters.
10. Sky Writing: This is a modern form of advertising. It may take several forms.
Messages can be written on balloons which are floated in the air. Banners are
released from aeroplanes.
11. Sandwich Men: This is oldest form of outdoor advertising. Sandwich men dress
up funnily and carry boards. They shout slogans in favour of the companys
products.
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by
Easy to respond to: The inclusion of an order card and return envelope makes it
convenient for the consumer to respond to direct mail.
List of loyal customers: Direct mail allows us to build and maintain a list of
prime prospects for our future direct mail campaigns.
Cost Effective: Direct-mail advertising is cost effective. Companies can easily
design colorful or eye-appealing brochures with their computers and desktop
software and have thousands of copies printed affordably by a print vendor.
Additionally, a company can mail out smaller quantities of a direct-mail
advertisement as a test. Once the company determines that the first mailing is
successful, it can increase the number of mail pieces in subsequent mailings.
Highly Flexible: Direct-mail advertising is highly flexible. A small company can
use postcards to market its wares to save on costs. Small manufacturers can also
include free samples of products in their mailings. A business owner can generally
include as much information as she desires in a direct-mail campaign, depending
on how much she wants to spend.
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Unit 4
Sales Promotion
Q.1
What is sales promotion? Also briefly discuss its merits & demerits.
Ans.
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7. It can provide customers with information about the product that may be useful
to them, and therefore produces an incentive for them to buy your product,
or use your service.
8. It also helps increase the market share.
Demerits:
1. It can be quite costly depending on the advertising medium we use; obviously TV and
radio advertising tend to be more expensive than advertising on notice boards or on
eBay.
2. Promotion also tends to be competitive. So no matter how much one spend on
advertising, if we've got many competitors (substitute products or services), and their
methods are more effective, then our promotion campaign may not work.
3. It asks for more responsibility and more stress; higher expectation demand for more
working hours.
4. It is not necessary that all the sales promotional measures will be able to bring in
desired results.
5. It is an expensive technique.
6. Promotional measures may have short-term impact on the customers.
Q.2
Ans.
1.Buy back allowance: Dealers pay the buyback allowance at the first purchase of
the products. This allowance can be used at the next consequent purchases like
first allowance at the second purchase, second allowance at the third purchase and
so on. Therefore, it becomes a continuous activity and helps to retain the retailers
or the wholesalers.
2. Buying allowances: Manufacturers allow discounts on the purchase of
minimum quantity of products for specific period of time. It is paid in cash or can
be reduced for the purchase amount. Manufacturers must clearly tell the dealers
about the minimum quantity to be purchased. Producers use this technique for
introducing a new product in the market or clearing off the existing stocks. It is
generally a short term offer.
3. Free goods: Manufacturers provide free products on purchase of the specific
quantity of goods to the dealers. So, these dealers are able to get some products
free of cost.
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Ans.
Advertising
Personal Selling
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Advertising and Promotion also have similarities and these tools of marketing
sometimes support each other like advertising campaigns use promotions too so
as to make the overall success of the campaign greater.
Q.4
Discuss the nature of sales promotion and also its role in economy?
Ans.
Nature of sales promotion:1. Irregular / non-recurring: Sales promotion is an irregular and non-recurring
activity to increase the sales & this technique is used for specific situations only
such as decline in demand, fall in profit, acute competition in the market or during
the introduction of new product in the market
.
2. Target- The target for producers sales promotion may be middleman, end
users,
household or business users or the producers own sales force. Middleman sales
promotion at their sales people or prospects further down the channel of
distribution.
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Ans.
Importance of sales promotion:Sales promotion is an important component of the marketing program . It can be a
specific tool of the promotion. Quality sales promotion provides advantages to the
various groups described below:1. Importance to consumers
2. Importance to producers.
3. Importance to middlemen.
4. Importance to society & nation.
1. Importance to consumers:(i) Availability of new products- It is easy to sell new products with the help of
sales promotional tools. Hence the producers are encouraged to bring new
products.
(ii) Various rebates & free discounts- Sales promotions offer various incentives
like rebates & free discounts, free samples which helps to stimulates sales &
purchase.
(iii) Thrill in life- The various incentives contents samples, demonstrations, fair
and exhibitions create thrill and joy in consumers life and the relish these
beneficial offers.
(iv) Low price- Sales promotion increases sales volume and reduce the unit cost
of production & thus the prices reduce & it benefits consumers.
(v) Increase knowledge- Sales promotion increases the knowledge of the
consumers with regard to the uses, operation & maintenance of the product.
(vi) Provide higher standard of living.
(vii) Buying confidence- Sales promotion tools provide the consumers an
opportunity to understand the product. This creates a buying confidence among
consumers. They may
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take better buying decisions which ultimately increases their satisfaction level.
(viii) Minimize exploitation- The promotional plan creates a better knowledge
about the products, their uses & quality. As a result, the seller cant exploit the
consumers.
2. Importance to producers:(i) Increase in sales- Sales promotion attract consumers & stimulate them to make
larger purchaser.
(ii) Improve effectiveness of Media Activities- the sales promotions plans make
the advertisement & other media activities more effective to achieve the sales
largest these
give pulling power to ads.
(iii) Help personal selling- sales promotions supports personal selling process the
salespersons can use demonstrations , distributions to free samples , contest
methods to push the sales. Sales promotion aimed at companys own sales force
might motivate salesmen to get new costumers, selling a product.
(iv) Increase regular sales & seasonal products.
(v) It helps in increasing goodwill of the firm.
(vi) The various promotional incentives offered to the dealers help to achieve
cooperation from them to sale the products & to maintain maximum stock with
them.
(vii) It is an effective step to face the competition.
(viii) It helps in increasing the demand of new products.
(ix) It helps in maintaining existing customers.
(x) It creates a trusting attitude among customers. Free sample & functional
demonstrations creates a faith in the use of merchandise which results in longer
sales.
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Ans.
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46
Ans. There are three types of world economy: - developed, developing & under
developed (Shortage economy) . In an economy of shortages, the availability of
goods & resources are shorter or lesser than their demands.
Limitations of a shortage economy1. Under developed in economic aspects.
2. Natural resources remain untapped.
3. Restricted development of industrial activities.
4. Lower standard of living of people .
5. Shorter supply of product & resources.
6. Slow growth of capital formation.
7. Limited opportunity for employment.
Economists say that development of economy is possible only when there is
increased
sale. Therefore sales promotion is considered to be the tool for stimulating the
sale.
Also, in a shortage economy, sellers market is dominant whereby seller takes the
advantage of the situation & creates situations of unfair trade practice. Thus, sales
promotion can stop this situation of unfair trade practice & thus the economy will
grow
through the production of new items copy setting products of new industries &
industrial
units & this way the wheel of economy development might move faster & can
create a
surplus situation in an economy of shortage.
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Unit 5
Ans.
Q.2
What are the different sales promotional tools useful for dealers?
Ans.
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5) Trade shows:- Trade shows are certain activities designed where manufacturer
can display their products to current as well as prospective buyers. They are
attended by retailers to distributers and involve demonstrating products,
identifying prospectus and gathering customers. Trade shows are particularly
valuable when a new product is introducing in to the market many companies use
trade shows to entertain key customers and to develop and maintain relationship
with them.
6) Cooperative advertising:- In this method the dealer and the producer both
jointly share the expenses of advertising. Either the producer may bear a fix
amount of the advertising expenses or certain percentage to the purchase made by
the dealer in a year.
7) Free merchandise:- Free merchandise is sometimes offered to resellers who
purchase stated quantities of the same or different products.
8) Sales contests:- Sales contests are organized for dealers also on the basis of
highest sales achieved by dealers during a specific time period. Prizes, certificates
are issued to such dealers and such contest hence motivates the dealer for longer
purchases.
9) Retailer kits:- Materials that support retailers selling efforts are retailer kits.
The kits contain supporting information such as detailed product specification; ad
slicks- print ads that are ready to be sent to the local print media.
10) Advertising and display aids:- Some of the aid are
(i) Local news paper advertising:- Advertisements in local news paper
specifying name, contact no. and address of dealers, helps the people to know
about the dealers in town.
(ii) Direct mail advertising:- In this the producer sends various advertising and
publicity material to dealer by mail. This includes reply cards, calendars, diaries,
folders, house magazines, order book, hand bills etc.
(iii)Outdoor advertising:- Producers provide banners, sign boards, posters, bill
boards, holdings to dealers at their own cost.
(iv)Organizing fashion shows:- Some companies organize fashion shows in big
cities to promote their products. This is also an encouragement to dealers.
11) Sales assistance:(i) Building up sales plan:- Producers extend help and express
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What are the different tools of sales promotion for consumer promotion?
Ans.
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free offers. Premium can be used to boost sales to attract competitors customers,
introduces different products.
E.g.:- Aqua fresh toothpaste- At the launching of Aqua fresh toothpaste
offered two tubes at the price of one.
Colgate offered 125gm. tube for the price of 100 gm.
Santro- book year Santro today & take home a world space Hitachi digital radio
receiver worth Rs. 4990/- free.
3) Contests:- Contests of various kinds constitute widely used sales promotion
tools. There are consumer contest which are open for all, consumer contest are
given wide publicity to attract the participation of the widely scattered consumer
base. consumer contest take a variety of forms- Quiz contests, beauty contest, car
rallies, scooter rallies, suggesting a logo etc. Contests can be divided in to 2 broad
categories- Skill competition & sweepstakes. One form of sweepstakes is a game
& scratch off cards with instant winners & prizes are an important promotional
tool. E.g.:
(i) Nescafe shake contest Nescafe shake contest offered Rs. 5 lacks as total prize
money with Rs. 1 lack for the first prize. The total number of prizes ran to 21000.
The contest had a specific objective to make consumers aware of Nescafe as a
cool summer drunk in addition to this traditional image of a hot beverage.
(ii) Cadburys family contest- Cadbury announced fabulous prizes round the
world, economy class are ticket for two adults & two children plus Rs. 1 lack in
prize money. The participant has to submit a minimum no. of cadburys wrappers
& coin a jingle to participate in the contest. The campaign helped to increase the
sales.
(iii)Lakme Create your own shade contest Lakme lever held the to elle 18,
Create your own shade contest for the target audience of elle 18 range of colors
cosmetics & fragnances. The participants were required to create own shades. The
winner created a sparkling blue shade & later Lakme launched the new shade in
the market.
(iv)Pepsi contest for children Pepsi ran a contest among children to promote its
potato chips brand ruffles. Nearly 500 children from a school were collected 30 of
them were picked to speak for a minute the winners were given ruffles. Pepsi had
covered 250 schools and 125000 students across the country spending Rs. 2 lacks
only.
4) Demonstration:- Companies resort to product demonstration for sales
promotion especially when they are coming up. With a product new to the market.
In India products like beverages, washing powders, electronic product have
utilized product demonstration as a tool of sales promotion. it may be-
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9) Exchange schemes/Money back offers- This is the latest sales promotion tool
in consumer disables market. E.g. Akai exchange scheme- Bring in your old
colour TV with remote. Videocon money back offer.
Philips- 5 in 1 offer.- Philips TV, 2 in 1, Mixer, grinder, rice cooker at an
attractive price. Sponsoring the games and teams- Many companies like reliance,
Pepsi, Pantaloons, Maruti sponsor different games and sports in the country and
abroad.
Q.4
What are the tools of sales promotion used for business and industrial goods?
Ans.
Sales promotion is targeted for business and industrial goods also Industrial
products differ with that of consumer goods. The tools which are used are1) Trade shows:- The industrial products are displayed and demonstrated to the
members of trade and industry. The representatives explain about the products.
The trade shows can be useful for smaller firms which cant much in advertising
and also salesman can make for more contacts. Trade shows are important rules
for reaching potential wholesalers & distributors for a company brand.
2) Business gifts:- These gifts are given as a part of building and maintaining a
close working relationship with suppliers business gifts may include small items
of jewellery, watch, electronic items, expensive trips.
3) Trial offers:- Trial offers are particularly well suited to the business and
industrial market. Trial offers provide a way for buyers to lower the risks of
making a commitment to one brand over another. Trial offer is a good way to
attract new customers who need a reason to try something new.
4) Frequency program:- high degree of travel associated with many business
professionals make frequency programs and an ideal form of sales promotion for
the business and industrial markets. This can be used in airline, hotel and other
industries.
5) Coupons: - Coupons are used in business to business sector. Coupons must
reach the hands of a purchasing against or someone who has the authority to make
decision.
6) Contest and sweepstakes: - As like in consumer promotional methods.
Customer methods. Business buyers are also interested in winning prizes as are
customers in other situations.
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Case Studies
CASE -1
Nikes Just Do It Advertising Campaign
According to Nike company lore, one of the most famous and easily recognized
slogans in advertising history was coined at a 1988 meeting of Nikes ad agency
Wieden and Kennedy and a group of Nike employees. Dan Weiden, speaking
admiringly of Nikes can-do attitude,
reportedly said, You Nike guys, you just do it. The rest, as they say, is
(advertising) history.
After stumbling badly against archrival Reebok in the 1980s, Nike rose about as
high and fast in the 90s as any company can. It took on a new religion of brand
consciousness and broke advertising sound barriers with its indelible Swoosh,
Just Do It slogan and deified sports figures. Nike managed the deftest of
marketing tricks: to be both anti-establishment and mass market, to the tune of
$9.2 billion dollars in salesin 1997.Jolie Soloman When Nike Goes Cold
Newsweek, March 30, 1998 The Nike brand has become so strong as to place it in
the rarified air of recession-proof consumer branded giants, in the company of
Coca- Cola, Gillette and Proctor & Gamble. Brand management is one of Nikes
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many strengths. Consumers are willing to pay more for brands that they judge to
be superior in quality, style and reliability. A strong brand allows its owner to
expand market share, command higher prices and generate more revenue than its
competitors. With its Just Do It campaign and strong product, Nike was able to
increase its share of the domestic sport-shoe business from 18 percent to 43
percent, from $877 million in worldwide sales to $9.2 billion in the ten years
between 1988 and 1998. Nike spent $300 million on overseas advertising alone;
most of it centered around the Just Do It campaign. The success of the
campaign is that much more remarkable when one considers that an estimated 80
percent of the sneakers sold in the U.S. are never used for the activities for which
they have been designed. Nikes marketing tactics in the 80s, and in particular its
campaign against Reebok, gambled on the idea that the public would accept
sneakers as fashion statements. Nike later cashed in on the jogging/fitness craze
of the mid 1980s, during which its Just Do It campaign expanded to attract the
female and teenage consumer, in addition to the stalwart 18 40-year-old male
consumer. (Nike was losing ground to Reebok during this time, thanks to the
explosion of RES3:990108 2 aerobics.) Phil Knight, the founder and CEO of
Nike, suffused his company and ads with the idea of the intense, inwardly focused
competitor. The ads rarely focused on the product itself, but on the person
wearing the product.
Heroes and hero worship abound on the Nike campus in Beaverton, Oregon. The
Just Do It campaign seemed to capture the corporate philosophy of grit,
determination and passion, but also infused it with something hitherto unknown in
Nike adshumor. Nike had always been known for its detached, determined,
unsentimental attitude. In a word, [Nike is] cool. The new ads retained that
attitude, but several of the original 12 Just Do It ads incorporate jokes, explicit
and implicit, to make their point. The Bo Jackson ad stands out. Jackson is seen
working out at several different activities, joking while on a bike machine, Now
when is that Tour de France thing? and after slam dunking a basketball
contemplates Air Bo. I like the sound of that, he says. The Just Do It
campaign received mixed ratings, ranging from an instant classic to
sociopathic. One critic went so far as to say the ads were an
impatientbordering- on-contemptuous exhortation to the masses. Cool is one
thing. Poverty of warmth is another. Eventually the campaign was credited with
embracing not just resolve and purpose, but also the beauty, drama and moral
uplift of sporteven, every now and then, fun. Linking the Campaign to
Consumer Needs
Through its Just Do It campaign, Nike was able to tap into the fitness craze of
the 1980s. Reebok was sweeping the aerobics race and gaining huge market share
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in the sneaker business. Nike responded to that by releasing a tough, takenoprisoners ad campaign that practically shamed people into exercising, and more
importantly, to exercising in Nikes. The Just Do It campaign was also effective
in reassuring consumers that the brand they picked, Nike, was a quality brand.
This was most effectively portrayed by celebrity sports figures such as Bo
Jackson, John McEnroe and later, Michael Jordon. If Michael Jordan can play an
entire NBA season in a pair of Nikes, certainly the average weekend warrior can
trust the shoes durability. Celebrity endorsements also appealed to the
consumers sense of belonging and hipness, as Nike became a self-fulfilling
image prophecy: if you want to be hip, wear Nike; if you are hip, you are
probably wearing Nike. The Just Do It campaign was able to turn sweaty, painridden, time-consuming exercise in Nike sneakers into something sexy and
exciting. Perhaps most importantly, even those who were not in fact exercising in
Nikes (the vast majority) still wanted to own them. By focusing on the aura and
image conveyed by the fitness culture, Nike was able to attract those who wanted
the image without incurring the pain. Linking the Campaign to Strategy Nike was
in a tough spot in the late 1970s. It was being swamped by Reeboks quick
initiative on designing aerobics shoes and needed to respond dramatically and
forcefully. It could be argued that the Just Do It campaign was not only about
sneakers but about Nikes own renaissance. No longer content to be the choice
running shoe of a few thousand marathoners and exercise nuts, Nike wanted to
expand its operation to target every American, regardless of age,gender or
physical-fitness level. Just Do It succeeded in that it convinced Americans that
wearing Nikes for every part of your life was smart (the shoes are designed for
comfort) and hip (everyone else is wearing them, you too can belong to this
group.) Nike took its own advice and Just Did It by directly attacking Reebok in
the sport-shoe market.
Why Was the Campaign Successful?
The timing of this campaign could not have been better. Americans were buying
exercise equipment at a record pace in the mid 1980s, and body worship was at an
all time high. Nike tapped into consumers desire for a healthy lifestyle by
packaging it into a pair of $80 sneakers. The ads were often humorous, appealing
to the cynic in all of us, while imploring consumers to take charge of their
physical fitness. The ads made starting an exercise regime seem like a necessity,
and the way to start exercising was to buy Nike merchandise. More importantly,
by owning Nikes you were instantly a member of a desirable group. The
campaign was easily identifiable (to the point that Nike eventually did not even
bother to display the word Nike in commercialsthe swoosh was enough) and
stayed true to its message.
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research. Big Fuel worked up several creative strategies and testing the concepts.
We wanted to know, what does this product represent or mean to the audience?
Savar said.
Typically, Colgate talks to moms, but with Wisp, the marketer knew it needed
unique social media components to introduce the product and seed interest. Big
Fuel worked closely with Y&R and VML, Colgates creative and digital agencies
respectively on the TV campaign, microsite, online banners and social media
elements.
Strategy:Big Fuel came up with a Be More Kissable creative platform that
positioned Colgate Wisp as a kind of technology advancement that it believed
would connect with the target audience. The idea centered around self-confidence:
Everyone wants to be more kissable not just within the context of a physical kiss,
but all the time. Feeling kissable is about feeling confident. From a social media
standpoint, we thought it was a good platform, Savar explained. Colgate thought
so too.
The concept, one of four that Big Fuel developed, was tested in four different
markets. The linchpin involved creating irreverent online video content and
syndicating it on YouTube and other video-sharing hubs. Along with a strategy
focus on online video, Colgate Wisp developed a Facebook application and a Be
the Face of Wisp photo contest.
At the heart of the strategyonline video. Big Fuel developed a series of viral
videos, partnering with eight different publishers including CollegeHumor and
YourTango and Web celebrities like Kip Kay, known for his how-to and prank
videos, to syndicate the content. It released eight wacky videos targeting niche
interests among the target audience, contextually integrating Colgate Wisp into
how-to, comedy and talkshow-genre video content. The goal was to achieve a
seamless content integration with no heavy brand sell. Online video syndication
offered Colgate the potential to scale its vast consumer target.
The photo contest sought to identify the most kissable person in America:
Participants who entered the contest uploaded a photo to colgatewisp.com and
received a widget that enabled friends to vote for them. The widget was shared via
the Facebook and MySpace networks and via the microsite. It was like a
syndicated version of Are you hot or not?, Savar said.
Big Fuel turned the contest into a social experience by enabling the widget to
syndicate the photo content. Participants uploaded their photo, chose a specific
Wisp color and placed it in the photo as an overlay. The contest enabled
segmentation by geographic area as well. For example, when a man entered the
contest, he could choose to look only at women in Chicago who entered the
contest and decide whether they were kissable or not. On average, Big Fuel
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reports that there were 11 votes cast per person or one individual voting on 11
different people.
To drive brand engagement further, Big Fuel created a Facebook app called Spin
the Wisp. Once the app was installed, it had the names of the consumers
Facebook friends. Consumers could have the app randomly pick Facebook friends
for the game or they could handpick up to 16 people to fill it. The Wisp landed on
exotic locations and flavorsa woman could send a virtual kiss from Paris to her
crush. Spin the Wisp became a novel way to flirt.
Results: Big Fuel reports that a Real Life Twitter video produced with
CollegeHumor netted more than 1.7 million plus views. The video featured manin-the-street style interviews by a standup comic who walked around blurting out
things like: I just found this new wisp. Anybody want a kiss?
The Kip Kaye video Quick Draw Gadget in which Kip constructs a quick draw
gadget out of a Colgate Wisp, has generated more than 1 million views. In total,
the eight videos in the Be More Kissable series racked up more than 4.1 million
views on YouTube as of late June 2010.
The two most recent videos for Colgate Wisp are College Humor POV New
Years Eve which logged 1,255,872 views and Michelle Phans Kissable Lips
video which has 1,791,352 views as of late June. All the videos were seeded on
multiple video-sharing sites.
The game saw a 10% click-through rate. Each time someone received a virtual
kiss, they got a notification that appeared on their wall. The 10% click-through
rate was based on the total number engagements vis--vis the notifications.
The average number of spins per install on Spin the Wisp was 7.6. There were
more than 100,000 engagements and 40,000 + installations of the widget and
more than 1 million unique impressions of the widget. There were 500,000 views
of a faux Wisp infomercial.
Overall, as of May, 2010, Big Fuel reported 6 million+ total engagements with the
Wisp campaign (widget installs, video views, game plays, pass-alongs). Big Fuel
considered engagement as active participation, meaning someone played the
game, shared it, watched a videothere was a 10-second minimum on viewing
and commented on a video, Savar said.
Key Takeaways: Colgate learned the value of what an engagement is, according
to Savar. It was the first time they ever measured anything based on
engagements. They are accustomed to the number of impressions.
Now, Colgate is working to extend the engagement metric to its more mature
brands. The brand has begun to understand what the value of video, game and
other content is vs. framing content only within the context of an ad buy, Savar
explained.
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While the campaign was in the market for four months, the videos and game
continue to run.
Next Steps: Colgate has moved forward with content marketing and social
marketing for others of its product brands. Colgate shot new videos for the Wisp
product site and two additional viral video. The brand says its looking to turn
customers into audiences and its brands into social identities.
The following mini-cases provide examples of businesses that have taken a
decision to re-brand an existing product in an attempt to boost sales or reposition
the brand in the eyes of the customer:
Sunny Delight re-launches with SClub
Procter & Gamble (P&G) has signed up pop group SClub (formerly S Club 7) for
a 2m summer promotion for fruit drink brand Sunny Delight. The partnership
with SClub is the cornerstone of a 12m Sunny Delight re-launch in 2002. It is the
first celebrity tie-up for the brand.
Buyers who save eight labels from Sunny Delight products will be able to send
off for an exclusive SClub CD. The CD includes a new track called Hey Kitty,
taken from the next SClub album, and also features interviews with the band
recorded for Sunny Delight on the set of the SClub television programme.
The promotion will be supported by a TV advertising campaign also featuring
SClub, and an SMS text messaging campaign.
Why has P&G needed to re-launch Sunny Delight? P&G were required to
reformulate Sunny Delight after a 35 per cent drop in sales following comments
from the Food Commission over the effect of the brand on children's health and
criticism that the product was packaged to look like a fruit juice.
The new Sunny Delight will be available in four sugar-free flavours and its
packaging has been redesigned.
Lego axes sub-brands by re-branding its entire product range
Lego is re-branding its entire product range and introducing a new slogan to
simplify what the Lego brand stands for. Lego says that in the past, consumers
have been confused by the different sub-brands, such as Lego Technic, Duplo and
Primo, and not realised that they were all part of the Lego group.
From the start of 2003 all products will be grouped under four new categories:
Explore
Make&Create
Stories&Action
Nex
Each of these new categories will be represented by their own set of colours.
The new product structure replaces the previous branding structure which largely
categorised Lego products by target age range.
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At the same time, a new slogan called "Play on", will come into effect, replacing
"Just Imagine". It is meant to represent the five values behind Lego: creativity,
imagination, learning, fun and quality.
Lego also plans to open a chain of branded retail stores, beginning with one in
Cologne and a second in Milton Keynes.
AA re-brands to emphasise the width of its product range
The AA (formerly the Automobile Association) has announced that it intends to
spend 22million on re-branding aimed at emphasising the width of its product
range.
In an effort to be seen as more than just an emergency breakdown service, the AA
wants
to
re-position
itself
as
a
multi-product
business.
As part of the re-launch, a 12m advertising campaign will using the strap
line"Just ask". The advertising campaign will explain to consumers that the AA
provides 160 different products and services, including insurance, car servicing,
maps and travel books.
The new Just Ask strap line will be carried on all the AA's communication,
including its web site, membership cards and direct mail.
The positioning will encourage the cross-selling of AA products, and the
company's call centres have been given technology to enable them to sell and
answer customer queries on all AA products.
The AAs previous strap line was "To our members we're the fourth emergency
service."
Case-3
Coca-Cola to re-brand 'diet' fizzy drinks
Coca-Cola in the UK is poised to change the brand names of Diet Fanta and Diet
Dr Pepper to Fanta Light and Dr Pepper Light.
The company is also launching a Fanta Icy Lemon Light variant in the UK before
the end of the year, which observers believe could be the springboard for the
change.
The re-branding is designed to bring Coca-Colas UK product range in line with
branding across the rest of Europe. However, Diet Coke is expected to retain its
name as significant money has been invested in establishing the brand since its
UK launch in 1983.
Coca-Cola spent more than 4m on Diet Coke in the year to June 2002 (Source:
Nielsen Media Research). The brand is called Coca-Cola Light in France,
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Belgium and other European countries. Coca-Cola brands Lilt and Sprite already
have "light"-branded variants in the UK.
A sales promotion was launched for the Diet Coke brand in August featuring an
instant-win, top prize of 100,000. All Diet Coke bottles are coloured silver for
the campaign and it has been supported with outdoor and press advertising.
case study-Coca Cola
Coca-Cola is, arguably, the worlds most recognized brand, although Google and
Nokia will likely close in soon.And this 122 years old, it is definitely an iconic
brand, defined for the purpose of this story as one that has simply stood the test of
time.
Stillalthough it is valued at $65 billion (around Rs2.77 trillion) by UK brand
consultancy Interbrand Corp.Coca-Cola is not an iconic brand in India. In its
present avatar, it is just 16 years old in the country, which it re-entered in 1992.
But CocaCola does own an iconic brand in India, Thums Up.
Thums Ups invincibility underscores the fact that while some brands are
glorious, some are truly iconic, says Y.L.R. Moorthi, professor of marketing at
the Indian Institute of Management, Bangalore.
Parle-G, Amul, Lifebuoy, Dettol, and Horlicks are some other brands that enjoy
the same inviolable rela tionship with at least some consumers. Age, competition,
brand clutter and changing consumption culture have not been able to dent their
equity among loyalists.
To be sure, every brand aspires to be an iconic brand, but only a few achieve the
goal. If there was a sure shot formula to building an iconic brand, every brand
manager would follow it to the hilt, says Nabankur Gupta, founder CEO of
Mumbai-based consultancy Nobby Brand Architects and Strategic Marketing
Consultants. After all, which company wouldnt want its brand to live forever?
The process of creating an iconic brand is more intuitive than definitive, say brand
experts. Yet, there are some attributes that are common to all iconic brands. They
fulfil all the needs of their consumersphysical aspirations, functional
requirements or emotional needsand they do it with consistency.
In the process, their custody shifts from the hands of the company to their
consumers. Every iconic brand is perceived as my brand by its consumers.
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It is they who own the brand, not some branding whizz-kid, says Prasoon Joshi,
executive chairman of advertising agency McCann Erickson India.
Thus, even when a company that owns an iconic brand runs into trouble and finds
itself in a position where it is unable to spend as much time, money and effort on
the brand as it should, the brand doesnt suffer much. Loyal consumers continue
to relate to the brand even if there hasnt been an effective advertising campaign
that reinforces the brands benefits .And they continue to buy into the brand.
That explains why some iconic brands, such as the Ambassador, retain their lustre,
albeit for a limited group of customers.
Case -4
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GCMMF.
In fact, it is not just the core values at Amul that have remained the same; the core
team associated with the brand is still the same. Even the advertising agency
hasnt changed, and Da Cunha and FCB Ulka, have played a pivotal role in the
growth of Amul.
This has helped us maintain consistency in our communication. Our strategy of
umbrella branding has also helped establish our brand firmly in peoples minds.
This, despite the fact that we do not spend more than 1% of our turnover for
marketing, compared with 7-8% (spent) by most of the food and consumer
product companies, R.S. Sodhi, head of marketing, GCMMF, says.
From Utterly butterly delicious Amul to The Taste of India, Amul continues to be
the toast of the country.
Onida brand. The times remain challenging, but the devil and his antics have built
a strong equity among consumers.
preferred car for generations of Indians till sleek, powerful beauties took over
Indian roads. And its brand ambassadors ranged from the Prime Ministers
motorcade to the kali-peelis (black and yellow cabs) that stood, and still do, at
every taxi stand.
Hindustan Motors even rolled out a special model to celebrate its 50th
anniversary.
The bulging headlights, rounded body and a big bonnet were there, but there were
also many new featuresreflecting changing consumer preferences and a refusal
to die. This is not your grandfathers Ambassador, but features bucket seats,
power steering and mobile chargers
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Ans
Q-2
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(c) To Persuade
Ans: (a)
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Key Terms
Advertising
"Advertising is the nonpersonal communication of information usually paid for and
usually persuasive in nature about products, services or ideas by identified sponsors
through the various media
Marketing communications
Marketing communications (or marcom) consists of the messages and related media used
to communicate with a market. Those who practice advertising, branding, direct
marketing, graphic design, marketing, packaging, promotion, publicity, public relations,
sales, and sales promotion are termed marketing communicators, marketing
communications managers, or more briefly as marcom managers.
Trade allowance: - Trade allowance is probably a discount or deal offered to retailers or whole
sales, to encourage then to stock display the manufacturers product .
Consumer Orientation
Consumer Orientation is the focus on meeting the needs of one's customers, internal or
external. This service establishes specific customer satisfaction standards and actively
monitors client satisfaction, taking steps to clarify and meet customer needs and
expectations (both expressed and unexpressed). At lower levels the service involves
courteous and timely responsiveness to the requests of customers, while at the higher
levels, it involves developing the relationship of partner and trusted advisor.
Display advertising is a type of advertising that typically contains text (i.e., copy), logos,
photographs or other images, location maps, and similar items.
Stereotyping
Stereotyping refers to portraying men or women in a particular role, with a negative
image. Advertisements targeted at children are considered unethical as children are not
capable of processing the given information.
Marketing
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Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large.
Electric Light Signs: Sign-boards illuminated by electricity can be seen in large number
in cities. They are presented with attractive letters and coloured bulbs.
Stuffers It gives detailed specifications of a wide range of products. It is a means of
amplify the sales letter by providing illustrations.
Compensation
Compensation is the remuneration received by an employee in return for his/her
contribution to the organization..
Target market
A target market or target audience is a group of people that will basically need or want
your products and services. Target market is defined in terms of age, sexual orientation,
gender, economic class, religion, ethnicity, or location. This socio-economic grouping
process actually allows businesses to create profiles of the typical consumers who will
likely buy the products of our company.
Print advertising
Print advertising definition usually refers to the techniques and practices used to bring
products, services, opinions, or causes to public notice via flyers, newspapers, magazines,
catalogs, or mailers for the purpose of persuading the reader to respond in a certain way.
Electronic advertising
Electronic advertising form of advertising that uses the Internet and World Wide Web in
order to deliver marketing messages and attract customers. Examples of online
advertising include contextual ads on search engine results pages, banner ads, Rich Media
Ads, Social network advertising, online classified advertising, advertising networks and
e-mail marketing, including e-mail spam.
Outdoor Advertising
Any advertising done outdoors that publicizes your business's products and services.
Types of outdoor advertising include billboards, bus benches, interiors and exteriors of
buses, taxis and business vehicles, and signage posted on the exterior of your own brickand-mortar location.
Direct Mail Advertising
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It is the oldest medium of advertising. It is the way of sending sales messages directly to
the customers through post, salesmen or dealers etc.
A marketing effort that uses a mail service to deliver a promotional printed piece to our
target audience.
Radio Advertising
Radio advertising is described as word of mouth advertising on a large scale. It appeals
through the ears. Now-a-days all radio stations all over the world broadcast commercial
advertising. The advertisers prepare the programme before hand keeping in view interests
of the listeners.
Television Advertising
It is the latest and novel method of advertising. It provides the coordination of sound,
sight, motion and immediacy that no other medium provides. It combines radio, movies
and theatre. It is a colourful presentation. In this medium, salesman can present and
demonstrate the product.
Cooperative advertising:- In this method the dealer and the producer both jointly share
the expenses of advertising. Either the producer may bear a fix amount of the advertising
expenses or certain percentage to the purchase made by the dealer in a year.
Free merchandise:- Free merchandise is sometimes offered to resellers who purchase
stated quantities of the same or different products.
Sales contests:- Sales contests are organized for dealers also on the basis of highest sales
achieved by dealers during a specific time period. Prizes, certificates are issued to such
dealers and such contest hence motivates the dealer for longer purchases.
Video Advertising
This medium has grown rapidly in advertising circles. Video commercial films are
produced to make publicity of products.
Cable TV Advertising
Cable TV has opened up various avenues for the advertisers to promote their products. It
is in the form of spots sold to national advertisers on programming on networks.
Moral Appeals
Moral appeals are directed to the consumes sense of what is right and proper. These are
often used to exhort people to support social and ethical causes.
Media
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Media takes many forms in our world today. Newspaper, television, printed matter and
radio are all forms of media. We can use any form of media to express our ideas and
present our opinions to the public. The dictionary defines media as all the means of
communication, as newspapers, radio, and TV, that provide the public with news,
entertainment, etc., usually along with advertising. Essentially, that means almost
anything can be media as long as it is watched.
Media Strategy
The plan of action an advertiser uses to bring advertising messages to the attention of
consumers through a particular media and vehicle.
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Bibliography
S.No.
1.
2.
G.S. Sudha
3.
Shyam Prasad
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