SR TOPIC

NO.
Meaning of promotion mix
Elements of Promotion Mix
Meaning of Advertising
Importance of advertising
Merits Of Advertising
Limitations Of Advertising
Objections To Advertising
Types Of Advertising Media
Creative Advertisements
Meaning Of Different Types Of Advertising Appeals
Examples Of Advertising Appeals
Case Study:
Maggi
Media used by Maggi
Types Of Appeals Used By Maggi
Suggestions
Questionnaire
Interpretation
Conclusion
Bibliography
 Promotion Mix
Promotion Mix refers to the combination of promotional tools used by an
organisation to achieve its communication objectives. Various tools of
communication are used by the marketers to inform and persuade customers
about their firms products.

Elements of Promotion Mix

There are 4 elements of Promotion Mix:

Advertising
Personal selling
Sales promotion
Publicity

These tools are used in different combinations to achieve the goals of the
organisation. The combinations they are used in depend upon various
factors like nature of market, nature of the product, the promotional budget,
objectives of promotion etc.
 Advertising
Advertising is a commercial transaction which is non- personal (they are
directed at a mass audience and not at the individual) and is identifiable
with their originator or sponsor.
 Importance of advertising
1. Mass reach: advertising is a medium through which a large number of
people can be reached over a vast geographical area.
E.g.: an advertisement message placed in a national daily reaches lakhs
of its customers.
2. Enhancing Customer Satisfaction and Confidence: advertising
creates confidence amongst prospective buyers as they feel more
comfortable and assured about the product quality and hence feel
more satisfied.
3. Expressiveness: with the developments in art, computer designs,
advertising has developed into one of the most forceful medium of
communication. With the special effects that can be created even
simple products and messages can look very attractive.
4. Economy: advertising is a very economical mode of communication if
large numbers of people are to be reached. Because of its wide reach
the overall cost of advertising gets spread over numerous
communication links established. As a result the per- unit cost of reach
comes low.
 Limitations of Advertising
1. Less Forceful: advertising is an impersonal form of
communication. It is less forceful than the personal selling as
there is no compulsion on the prospects to pay attention to the
message.
2. Lack of feedback: the evaluation of the effectiveness of
advertising message is very difficult as there is no immediate and
accurate feedback mechanism of the message that is delivered.
3. Inflexibility: advertising is less flexible as the message is
standardised and is not tailor made to the requirements of the
different customer groups.
4. Low Effectiveness: as the volume of advertising is getting more
and more expanded it is becoming difficult to make advertising
messages heard by the target prospects. This is affecting the
effectiveness of advertising.

Objections to Advertising
Adds to cost: the opponents of advertising argue that advertising
unnecessarily adds to the cost of the product, which is ultimately
passed on to the buyers in the form of high prices. An
advertisement on TV costs marketers several lakhs of rupees.
Similarly an advertisement in print media like newspaper and
magazine costs the marketers a large amount of money. The
money spent adds to the cost which is an important factor for
price fixation of a product.
Undermines social values: another criticism of advertising is that
it promotes materialism and undermines social values. It breeds
discontent among people as they come to know about new
products and feel dissatisfied with their present state of affairs.
Some advertisement show new life styles, which dont find social
approval.
 Confuses the buyers: another criticism against advertising is that
so many products are being advertised which make similar
claims that the buyer gets confused as to which one should be
relied upon.
E.g. we may note similar claims of whiteness or stain removing
abilities in competing brands of detergent powder that it is
sometimes confusing to us as to which one to buy.
Encourages Sale of Inferior Products: advertising does not
distinguish between superior and inferior products and persuade
people to purchase even the inferior products. Superiority and
inferiority depends on quality, which is a relative concept. The
desired level of quality will depend on the economic status and
preferences of target customers. Advertisements sell products of
a given quality and the buyers will buy the products if it suits
their requirements. No advertisements should make false claims
about the quality of a product.
Some advertisements are in bad taste: another criticism against
advertisement is that some advertisements are in a bad taste.
These show something which is not approved by certain people
say advertisements showing women running after a man because
he is wearing a certain type of perfume or suit etc.is certainly not
good. Some advertisements distort the relationship like
employer and employee and are quite offensive.
 Types of Advertising Media

Press publicity: it is of 2 forms

1. Newspapers: newspapers are bought largely for their news value.
As such they are appropriate for announcing new products and
new additions to existing products. Because of the frequency of
publication they are also well suited to opportunity markets.

2. Magazines: magazines are periodicals read leisurely.

 Direct Mail: direct mail advertising involves 2 decisions. Firstly, to
determine the persons to whom advertising messages are to be sent
and secondly to decide the manner in which the messages are to be
communicated. Because of this controlling aspect .direct mail is also
known as Controlled Advertising.

Outdoor Advertising: it is the oldest form of advertising and remains

the most common medium today. It projects the message to a large
number of people of heterogeneous interests. Products which need a
wide appeal use this method. Outdoor advertisements are meant for
the moving population and provide advantage of reminding people
frequently of the product.
 Audio-Visual advertising:
1. Film advertising: advertising could be effectively carried out
through use of motion pictures or cinema. Though it is a
comparatively new medium it has become one of the most
popular ones. This is mainly attributable to its appealing nature
to all classes of people.

2. Radio-advertising: statistics show that A.I.R serves 73.3% of the

population in India. The private channels are very popular and
boost the advertising on radio breaking all previous records.
3. Television: television is comparatively new but rapidly growing
medium of advertising. It is very popular and effective due to the
combined force of picture and voice. Expansion of electronic
media and cable network has considerably widened the reach of
TV. Both short commercials and sponsored programmes can be
used.

4. Exhibitions: this is a method in which the demonstration aspect

is given importance. Further, exhibitions range from a small local
level to national level or even international level. The idea
behind this medium is not new. Seasonal trade fairs were
common even in the past.
 Point of Purchase Advertising (P.O.P): this is a direct method because
the advertising process is undertaken by the dealer. There are various
forms commonly known as store display. It is also a powerful
medium. It is observed that the point of purchase is the exact point
where the prospects are reminded finally about the product.
1. Window display: products are displayed in front of the shop at a
place where they would be prominent so that passers-by cannot
escape the display.They are arrranged most attractively. This
method is ofetn used not only to sell an article but as a means to
creative selling.the dormant desires of people to own certain
products are tickled and are brought to surface. It is a
combination of a poster,newspaper advertisement,a stage act,a
speeh and a scarf dance.
2. Counter dislay:here also the products are displayed but inside
the shop. thus the attention of real buyers who step inside the
shop is directed towards the articles displayed.

3. Special display and shows: most of the manufacturers have found

that putting special display of several products in selected stores
is a good promotional device.

4. Showrooms: in case of certain products personal inspection is an

important pre-requisite. Mixers, washing machines, cars etc. are
always purchased only after a close-look at the product.
 Internet: internet is the recent advertising medium that has come into
existence. Internet ads reach highly selected audience. It permits scope
of narrow casting. Since, the medium is interactive it can involve
prospects and deliver message more effectively, cost wise it is not an
expensive option. It allows great message dramatisation possibilities.
Unlike TV prospects here can control media exposure. Internets
biggest drawback is the limited reach.
Creative advertisements
 Advertising Appeals

Emotional Appeal

An emotional appeal is related to an individuals psychological and social needs for purchasing
certain products and services. Many consumers are emotionally motivated or driven to make
certain purchases. Advertisers aim to cash in on the emotional appeal and this works particularly
well where there is not much difference between multiple product brands and its offerings.
Emotional appeal includes personal and social aspects.

Humour Appeal
Humour is an element that is used in around 30% of the advertisements. Humor can be an
excellent tool to catch the viewers attention and help in achieving instant recall which can work
well for the sale of the product. Humor can be used effectively when it is related to some benefit
that the customer can derive without which the joke might overpower the message.

Rational Appeal

Rational appeals as the name suggests aims to focus on the individuals functional, utilitarian or
practical needs for particular products and services. Such appeals emphasize the characteristics
and features of the product and the service and how it would be beneficial to own or use the
particular brand. Print media is particularly well suited for rational appeals and is often used with
good success. It is also suited for business to business advertisers and for products that are
complex and that need high degree of attention and involvement.

Bandwagon Appeal

This advertising appeal aims to persuade people to do a certain thing because many are doing it.
It is a human tendency to do as the masses do. Bandwagon technique of advertising captures this
to induce people to use a certain product or service. 8 out of every 10 women prefer using the xyz
shampoo! Or More than 80% of the dentists of our country are using the xyz toothpaste. Do you?
Are some popular ways to tricking people to join the bandwagon? It appeals towards the
popularity aspect or coolness aspect of a person using a particular product or service.
Adventure Appeal

This appeal is directed towards giving the impression that purchasing a product will
change the individuals life radically and fill it with fun, adventure and action.

Romance Appeal

These advertisements display the attraction between the sexes. The appeal is used to
signify that buying certain products will have a positive impact on the opposite sex and
improve your romantic or love life. Fragrances, automobiles and other products use these
types of advertising appeals.

Scarcity Appeal

Scarcity appeals are based on limited supplies or limited time period for purchase of
products and are often used while employing promotional tools including sweepstakes,
contests etc.

Masculine Feminine Appeal

Used in cosmetic or beauty products and also clothing. This type of appeal aims at
creating the impression of the perfect person. The message is that the product will infuse
the perfection or the stated qualities in you.

Brand Appeal

This appeal is directed towards people who are brand conscious and wish to choose
particular products to make a brand statement.

Music Appeal

Music can be used as types of advertising appeals as it has a certain intrinsic value and
can help in increasing the persuasiveness of the advertisement. It can also help capture
attention and increase customer recall.
Celebrity /Endorsement Appeal
Using a famous person's image to sell products or services by focusing on the person's
money, popularity, or fame to promote the products or services. If the famous person
agrees to allow his or her image to be used, it is termed a celebrity endorsement.

Colour Appeal

The colours used for an advertisement are more important than the actual wording of the
advertisement. The reason for this is the colors (and graphics) capture the consumers
attention then causes them to read the advertisement. "Psychologists have suggested that
colour impression can account for 60% of the acceptance or rejection of that product or
service.

Statistical Appeal

Advertisements use statistics and figures to display aspects of the product and its
popularity in particular.

Child Appeal

This appeal is directed towards children. It is used mainly by fast food and toy companies
to attract children towards their product by using colourful graphics, famous cartoon
characters etc.

Festivity Appeal

Companies use this appeal during the time of festivals such as Eid, Diwali, Christmas etc.
The advertisements depict some special offers or discounts offered by the companies
during the festival time.
Humour Appeal
Rational Appeal
Colour Appeal
Bandwagon Appeal
Adventure Appeal
Scarcity appeal
Feminine Appeal
Masculine Appeal
Romance Appeal
Brand Appeal
Music Appeal
Celebrity Appeal
Festivity Appeal
Child Appeal
Emotional Appeal
Statistical Appeal
 Case Study

Nestl
Nestl S.A is a Swiss multinational food and beverage company headquartered in Vevey,
Switzerland. It is the largest food company in the world measured by revenues.

Nestls products include baby food, bottled water, breakfast cereals, coffee and tea,
confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Twenty-nine
of Nestls brands have annual sales of over CHF1 billion (about US$1.1 billion), including
Nespresso, Nescaf, Kit Kat, Smarties, Nesquik, Stouffers, Vittel, and Maggi. Nestl has
447 factories, operates in 194 countries, and employs around 333,000 people. It is one of
the main shareholders of LOreal, the worlds largest cosmetics company.

Nestl was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established
in 1866 by brothers George Page and Charles Page, and Farine Lacte Henri Nestl,
founded in 1866 by Henri Nestl. The company grew significantly during the First World
War and again following the Second World War, expanding its offerings beyond its early
condensed milk and infant formula products. The company has made a number of
corporate acquisitions, including Crosse & Blackwell in 1950, Findus in 1963, Libbys in
1971, Rowntree Mackintosh in 1988, and Gerber in 2007.
 Maggi
Maggi is an international brand of instant soups, stocks, bouillon cubes, ketchups, sauces,
seasonings and instant noodles. Owned by Nestl since 1947, the original company was founded
in Switzerland in 1872 by Julius Maggi.The brand is known for Maggi noodles, Maggi cube, and
Maggi-Wrze

The original company came into existence in 1872 in Switzerland, when Julius Maggi took
over his father's mill. He quickly became a pioneer of industrial food production, aiming
to improve the nutritional intake of worker families. Maggi was the first to bring protein-
rich legume meal to the market, and followed up with a ready-made soup based on
legume meal in 1886. In 1897, Julius Maggi founded the company Maggi GmbH in the
German town of Singen, where it is still based today.

In 1947, following several changes in ownership and corporate structure, Maggi's holding
company merged with the Nestl company to form Nestl-Alimentana S.A.

Today, Maggi is known throughout the world for its dry soups, seasoning sauce and
instant noodle dishes. In India and Malaysia, Maggi instant noodles are very popular;
Nestle have 39% of the market in Malaysia, where "Maggi" is synonymous with instant
noodles; and a 60% share in India where it was the first instant noodle brand.

Advertised as 2 minute noodles since 1982. Maggi noodles recently introduced a new
variety of its noodles like 'No MSG', 'Less Salt', and 'No Trans fat' to cater to the health
conscious. In mid-2008, New Zealand supermarkets introduced replacement formulations
for its beef, oriental, and curry flavours. A new feature is an extra sachet containing
dehydrated vegetables. Maggi claims the new range contains 88% less total fat and 86%
less saturated fat than the average of top-three (unnamed) 2-minute-noodle competitors.
The new Maggi range also has considerably lower fat than its own previous formulation.
However, the salt content has been increased by 31 percent.
 Advertising Media used by Maggi
Newspaper: Maggi uses newspapers to advertise its products around the
world.
Outdoor media advertising
Television
 Types of advertising appeals used by Maggi
Music appeal: Music is used as a stimulus in the Maggi ads to catch
customers attention through its famous jingle Just 2-minutes. This has
created a strong brand recall value.

Rationality appeal: Maggi ads are always contains information about the
product. It states that, the noodles can be prepared within just 2- minutes,
its a healthy food which is also tasty, also price related information are
communicated through the advertisements.

Emotional appeal: Maggi ads have emotional appeals as it shows, hungry

child comes from out and says that he is hungry and mother says just 2-
minutes and prepares Maggi noodles.

Scarcity appeal: as they offered a gift like a small toy or a Maggi Tiffin box
along with purchases of 6 Maggi noodles packets. This was offered for a
limited period of time.

Child Appeal: Maggi ads feature children very often. They depict that
children enjoy the taste of Maggi. These ads also show mother and child
bond.

Celebrity/endorsement appeal: Maggi ads feature many celebrities in their

ads like Amitabh Bachchan, Madhuri Dixit, and Preity Zinta etc.

Appeals Maggi can use to advertise its Products

Festivity appeal: Maggi can use festivity appeal in its advertisements. It can
offer free gifts or ask the consumers to share their stories of Maggi noodles
during various festivals like diwali,eid etc.