- Saurabh: To Find More Stuff On Business & Marketing, Visit –

final part of 25 keys to sales & marketing, an audio portable MBA course, which has been developed by New York Times publishing, with the contribution of some of the best known business academicians and practitioners of the contemporary world. This is only a reproduced graphical version of the same with no commercial motive. It has been developed for better self learning and for assistance to the large community of several business practitioners & students, who are in constant pursuit for quality stuff on-line. - Saurabh

To find more stuff on business & marketing, visit –

www.saurabhpassion.blogspot.com

Key - 19

Advertising as a promotional tool

ADVE RT ISI NG Advertising is

pow erful

&

strong, long term impact on the consumer .

Can create a

TY PE S OF ADV ER TI SIN G IN FOR MA TIV E

1

CO MPA RA TI V

PE RS UA SIV E

2

NON COM PA RA TIV E

RE MI NDE R

3

ON E SID ED

4

TW O S ID ED

TY PES O F ADV ERT IS IN G & TH EI R GO ALS IN FOR MA TIV E

PE RS UA SIV E

GOA L – 1

Thi s ty pe of Adv er ti sin g i s imp or ta nt aft er the p ro duc t o r ser vi ce ha s b ee n pur ch as ed wit h a goa l to st ay in the m in ds of cus to me rs.

To al er t t he con su me rs abo ut a new p ro duc t o r ser vi ce . Goa l – 2 Inf or ma tio n a bo ut the p ro duc t o r ser vi ce , s o t ha t its n ee d & wa nt is cre at ed .

CO MPA RA TI V

NON COM PA RA TIV E

RE MI NDE R

ON E SID ED

TW O S ID ED

TY PES O F ADV ERT IS IN G & TH EI R GO ALS IN FOR MA TIV E

PE RS UA SIV E

RE MI NDE R

Go al of

per suasi ve adv ertis ing i s to i nfl ue nce pu rc has e. Market

Market

competitor is mentioned for

competitor is not mentioned in the advertising. Well suited for market leaders.

comparison in attributes.

CO MPA RA TI V

NON COM PA RA TIV E

Only favorable attributes are mentioned about a product or service.

ON E SID ED

Such advertising

mentions product limitations on unimportant attributes. Builds credibility.

TW O S ID ED

ADVERTISING PITFALLS Excessive Advertising

Can lead to wear out of campaign

Causes (-)ve impression & cause annoyance due to excessive repetition.

Celebrity Endorsement

Celebrities often sell a multitude of products. Consumer attributes his link with brand as a function of money, rather than a real liking for the merchandise. Their image may become controversial, hence making their endorsement useless or even fatal some times. Incongruence/misfit between Celebrity & the product.

Exaggeration in Ads

Temptation to exaggerate the characteristics & performance of a product /service in advertising is taken as false and puffery content; & isn’t acknowledged through purchase.

Key - 20

DISTRIBUTION as an

EFFECTIVE COMPONENT of

MARKETING STRATEGY

Av ailab ilit y of p roduc t / servic e – A key to s uccess in t he m arket . Dis tr ibu tio n is an i mpo rta nt st ra te gic el em ent o f mar ke ti ng mix . Com pa ny can a dap t th e d ist ri but io n str ate gy th ro ug h int en si ty of it s d is tr ibu tio n cha nn el co ver ag e. Exclusive distribution

• Company by its choice, limits the number of whole sellers & retailers in an area – to only high quality locations. • Creates image of exclusivity. • Customer has to make an effort to obtain the product & feels a sense of accomplishment after the buying process.

Selective distribution • Moderate number of whole

sellers &

retailers

Intensive distribution

• Goal is to have widespread market coverage. • Appropriate for less

• Combining good

channel control with reasonable profits and sales.

expensive items. • Plan is to cause

impulse purchase – i.e. place the product in front of consumer so that a purchase happens.

2 TYPES OF DISTRIBUTION CHANNELS Direct Channel

Indirect Channel

• No Intermediaries between producer & consumer • Appropriate for those companies that are keen to control entire work from production to purchase; and when target market is small and is already in focus. •Often it makes less sense to do so because self distribution involves specialized skills in many diverse areas such as whole selling & retailing apart from manufacturing.

• Involves Intermediaries between producer & consumer such as whole sellers, jobbers and retailers. • Appropriate for those companies, who wish to expand their market reach, give up their distribution functions and accept that they have relinquished channel control.

Key - 21

HOW T O EFFE CT IVE LY INT EG RA TE THE 4Ps OF

MARKETING?

Product

Price

Target customer

Place

Promotion