School of Management Studies

UNIT – V: SBAA5201 MARKETING FOR MANAGERS

UNIT - III: SBAA5201 MARKETING FOR MANAGERS

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UNIT 5 MARKETING COMMUNICATION

Role of Promotion in Marketing, Integrated Marketing Communication - Promotional Mix,

Advertising Objectives - DAGMAR, Media Planning - Internet Marketing - Sales Promotion -
Types, Economic theories of promotion; Public Relations - Personal Selling, Managing Sales
Force.

PROMOTION

Promotion includes all activities that involve communicating with the customer about the
product and its benefits and features.

Promotions refer to the entire set of activities, which communicate the product, brand or service
to the user. The idea is to make people aware, attract and induce to buy the product, in preference
over others.

Promotion Mix
The promotion mix is the specific blend of advertising, sales promotion, public relations, personal
selling, and direct-marketing tools that the company uses to persuasively communicate customer
value and build customer relationships. Through the promotional mix, a company aims to fulfill
two basic objectives. One is to make the customer aware that the product and brand exist. The
other is to persuade them to actually pick this product over all others and continue to buy it.

Elements of the Promotional Mix

 Personal selling
 Advertising
 Sales promotion
 Direct marketing
 Public relations

 Personal selling: Personal selling is the personal presentation by the firm‘s sales force
for the purpose of making sales and building customer relationships
 Advertising: Advertising is any paid form of non-personal presentation and promotion
of ideas, goods or services by an identified sponsor. E.g., TV commercials, Billboards

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 etc.,
 Sales promotion: Sales promotion is the short-term incentives to encourage the
purchase or sale of a product or service
 Direct marketing: Direct marketing involves making direct connections with carefully
targeted individual consumers to both obtain an immediate response and cultivate lasting
customer relationships – by using direct mail, telephone, direct-response television, e-mail, and
the Internet to communicate directly with specific consumers.
 Public relations: Public relations involves building good relations with the company‘s
various publics by obtaining favorable publicity, building up a good corporate image, and
Handling or heading off unfavorable rumors, stories, and events

Role of promotion mix

 Building Awareness: Products or brands may need to create an identity within the
market. The major role on promotion mix is to create awareness about the product or
service available with the company. For the most part, this applies to a new company, a
new brand or a new product. But often it may also be needed in times of rebranding or
building up a failing product. The aim then is to select those promotional activities that
help inform the customer about the company and the product.
 Creating Interest: Once the seller has created awareness about his product the next step
is influence the customer and create interest in them and induce them to buy the product
or service. If the customer is already aware of the product or has been made aware
through some activities, it becomes necessary to move them along to actual purchasing
behavior. The aim here is to identify a need that the product fulfills and make sure that
the customer recognizes this need as something that is unfulfilled for them and to move
them along to actual purchasing behavior.
 Providing Information: Company may just need to provide necessary information
regarding the product, its benefits, features or usage to the consumer. This may be the
case if a new product is introduced into the market. Some companies may need to explain
new technical features of a product.

 Stimulate Demand: A company may seek to enhance its sales through promotion. If
sales have been lower than usual, then the aim may be to get them back up to target level

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 by re-engaging old customers and encouraging new ones to try a product out. In other
instances, the aim may be to increase sales further at certain times of the year such as
near a major holiday. Free demonstrations or special deals may be used to reach these
ends.

 Differentiate product: In situations where there are many competitors in the market, a
company may seek to use promotional activities to differentiate its product in the market and
make it stand out from the crowd. The focus here remains on those features, functionalities or
benefits that may not be offered by a competitor or may not be offered so well.
 Reinforce the Brand: One basic aim of a promotional activity may be to further
strengthen the brand and its place in the market. This helps turn a first-time purchase into
a life time purchaser. This can also help create advocates for the product.

Factors influencing promotion mix decisions

Whenever a company sets out to design its promotional mix, it needs to consider the
following points:
 Stage in the Product Lifecycle – During the beginning of the lifecycle, there may need to
be more aggressive and informational advertising, while a slowdown in promotions may
be seen during the later stages.

 Nature of the Product – If a product is not new in its usage or function, there may be less
need for information and more focus on brand equity creation as well as on emotional
aspects of the product.

 The Allocated and Available Budge – A certain total budget is set for promotional
activities and this then need to be designed and executed within these constraints.

 Cultural Sensitivity – If a product is to be launched in a new international market or

translated across markets, it becomes imperative to take into consideration local affiliations
and sensitivities. These include both cultural and religious considerations. Often, these
issues may even present themselves within one country.
 Target Market Composition – The people who make up the target market need to be
considered before committing to a promotional mix. If a market is not tech savvy, then

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 more traditional means may need to be employed. Conversely, an internet generation used
to instant gratification may need to be provided more focused and targeted messages.

 Competitor Actions – The methods a competitor uses need to be taken into account as
well. There may not be a need to spend money on a radical advertising method if a
customer is using rudimentary methods for example.

Types of Promotional Strategies/theories of promotion

A company may use different strategies to promote its products. These can be broadly
categorized as
 Push strategy
 Pull strategy
Both strategies differ in how the customer is approached.

 Push Strategies

As the name indicates, this is when the product is taken to the customer by the company.

This is mostly used when the product is an impulse purchase or if the company has an
established relationship with the customer base. Companies may sell directly from their
showrooms or at tradeshows etc. Essentially, there is less need to create an advertising buzz
and more to make the product readily available at retail outlets and showrooms. Push
marketing may focus primarily on short term sales.

 Pull Strategies
In the opposite approach, there is an attempt to pull customers towards the brand or product.
Through mass media campaigns to sales promotions and personal references, a company
attempts to create brand loyalty and attractiveness. Pull strategies may attempt to focus

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 primarily on long term brand loyalty then high sales in the short term. A lot of media hype and
mass campaigns are required to create sufficient interest and encourage customers to seek out
the product on their own.

Most companies will use a mix of these two strategies at different points in time.

Managing promotion through the product life cycle

Introduction stage
 At this stage, major promotional campaigns and activities will be designed and
executed.
 A comprehensive promotional mix will be designed with full input from the rest
of the marketing mix. The aim here is to provide detailed information about the
product, its features and benefits.
 Special offers and sales promotions may also be used to pull in customers while in
some markets push strategies may be used simultaneously employed.
Growth Stage
 Once the product is established and accepted, there will be a shift in strategy from
information to more emotional aspects.
 The aim is to increase brand awareness, create strong brand equity and foster long
term customer loyalty.
Maturity Stage
 In this stage the market for the product may have matured and there may be stiff
competition and similar products available.
 Promotional activities will now turn more persuasive and there may be an attempt to
create product differentiation by highlighting specific benefits and features that
fulfill needs and are unique.
Decline Stage
 At this point, promotional activities may wind down to the occasional reminder
that the product exists in an attempt to forestall the product‘s eventual decline.

Integrated Marketing Communication

Integrated Marketing Communications (IMC) is a concept under which a company
carefully integrates and coordinates its many communications channels to deliver a clear
and consistent message.

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 IMC is an integration of all marketing tools, approaches and resources within a company
which maximizes impact on the consumer mind resulting in maximum profit at minimum
cost.
Role of Integrated Marketing Communication (IMC)
 It uses several innovative ways to ensure that the customer gets the right message at the
right place and right time.
 It aims to ensure the consistency of the message and the complementary use of media.

Tools of Integrated Marketing Communication (IMC)

The eight major Integrated Marketing Communication tools are as follows: -
1. Advertising
Advertising refers to any paid form of non-personal promotion of products or services by
an identified sponsor. The various media used are print (newspapers and magazines),
broadcast (radio and television), network (satellite, wireless and telephone), electronic
(web page, audio and videotape) and display (billboards, signs and posters). The primary
advantage of advertising is that it reaches geographically dispersed consumers.
Consumers generally tend to believe that a heavily advertised brand must offer some ‗good
value‘ but at the same time, advertising proves to be an expensive form of promotion.

2. Sales promotion
It is a variety of short-term incentives to encourage trial or purchase of a product or
service. It may include consumer promotions – focused towards the consumer – such as a
distribution of free samples, coupons, offers on purchase of higher quantity, discounts
and premiums or trade promotions – focused on retailers – such as display and
merchandising allowances, volume discounts, pay for performance incentives and
incentives to salespeople.
Sales promotion helps to draw the attention of the consumers and offers an invitation to
engage in transaction by giving various types of incentives.

3. Personal Selling
Face-To-Face interaction with one or more buyers for the purpose of making
presentations, answering questions and taking orders. This proves to be the most effective
tool in the later stages of the buying process. The advantage is that the message can be
customized to the needs of the buyer and is focused on building a long-term relationship
with the buyer.

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4. Public Relations
A variety of programs directed toward improving the relationship between the organisation
and the public. Advertising is a one-way communication whereas public relations is a
two-way communication which can monitor feedback and adjust its message for
providing maximum benefit. A common tool used here is publicity which capitalizes on
the news value of the product or service so that the information can be disseminated to the
news media. Articles in the media prove to be more objective than advertisements and
enjoy high credibility. Also, it has the ability to reach the hard-to-find consumers who
avoid targeted communications.
5. Direct Marketing
Direct Marketing involves the use of mail, telephone, fax, e-mail, or internet to
communicate directly with or solicit response or dialogue from specific customers or
prospects. Shoppers have started relying on credit cards and online purchasing more than
ever which makes it essential for marketers to approach the consumers directly thus
helping them in the purchase process. Companies have a database of contact details of
consumers through which they send catalogues and other marketing material making it
easier for the consumer to purchase online. The relevance of direct marketing has
increased in recent years.

6. Events and Experiences

These are company sponsored activities and programs designed to create brand-related
interactions with customers. Sponsorships improve the visibility of the company.
Companies provide customers with an experience of using the product which ends up
leading to a higher brand recall than competitors. These events prove to be engaging with
the audience.

7. Social Media Marketing

The concept of social media marketing basically refers to the process of promoting
business or websites through social media channels. Companies manage to get massive
attention on such channels and can interact with consumers as and when they are
browsing the internet.
New and modern ways of communications are developing on these social media platforms
and are proving to be the future of promotions. They have the ability to be highly

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 interactive and up to date with the customers
8. Mobile Marketing
Mobile marketing involves communicating with the consumer via a mobile device, either
to send a simple marketing message, to introduce them to a new participation-based
campaign or to allow them to visit a mobile website. It is Cheaper than traditional means
for both the consumer and the marketer, mobile marketing really is a streamlined version
of online marketing the use of which is increasing as time progresses. Examples are
advertisements that we see on mobile applications.

ADVERTISING

Meaning of Advertising - Advertising is an activity of attracting public attention to a

product, service, or business as by paid announcements in the print, broadcast, or
electronic media.

Definition of Advertising - "Advertising is the non-personal communication of

information usually paid for and usually persuasive in nature about products, services or
ideas by identified sponsors through the various media."- Philip Kotler

―Advertising consists of all activities involved in presenting to a group a non-personal,

oral or visual, openly sponsored identified message regarding a product, service, or idea.
The message, called an advertisement, is disseminated through one or more media and is
paid for by the identified sponsor‖- William Stanton.

CHARACTERISTICS OF ADVERTISING
 Tool for Market Promotion: Advertising is a powerful, expensive, and popular element
of promotion mix.
 Non-personal: Advertising is a type of non-personal or mass communication with the
target audience. A large number of people are addressed at time. It is called as non-
personal salesmanship.
 Paid Form: Advertising is not free of costs. Advertiser, called as sponsor, has to spend
money for preparing message, buying media, and monitoring advertising efforts. It is the

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 costliest option of market promotion. Company has to prepare its advertising budget to
appropriate advertising costs.
 Wide Applicability: Advertising is a popular and widely used means for communicating
with the target market Varied Objectives: Advertising is aimed at achieving various
objectives such as increase sales, create and improv brand image, face competition, build
relations with publics, or to educate people.
 Forms of Advertising: Advertising message can be expressed in written, oral, audible, or
visua l forms. Mostly, message is expressed in a joint form, such as oral-visual, audio-
visual, etc.
 Use of Media: Advertiser can use any of the several advertising media to convey the
message. Widely used media are print media (newspapers, magazines, pamphlets,
booklets, letters, etc.), outdoor media (hoardings, sign boards, wall-printing, vehicle,
banners, etc.), audio-visual media (radio, television, film, Internet, etc.), or any other to
address the target audience.
 Advertising as an Art: Message creation and presentation require a good deal of
knowledge, creativity, skills, and experience. So, advertising can be said as an art. It is an
artful activity.

 One-way Communication: Advertising involves the one-way communication. Message

moves from company to customers, from sponsor to audience. Message from consumers
to marketer is not possible. Marketer cannot know how far the advertisement has influenced the
audience.

ADVERTISING PURPOSES / OBJECTIVES / FUNCTIONS

 Preparing Ground for New Products: New product needs introduction because
potential customers have never used such product earlier and the advertisements prepare
a ground for that new product.
 Creation of Demand: 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.
 Facing the Competition: Another important objective of the advertisement is to face to

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 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.
 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.
 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.
 Neutralizing Competitor’s Advertising: Advertising is unavoidable to complete with or
neutralize competitor‘s advertising. When competitors are adopting intensive advertising
as their promotional strategy, it is reasonable to follow similar practices to neutralize their
effects. In such cases, it is essential for the manufacturer to create a different image of his
product.
 Barring New Entrants: From the advertiser‘s point of view, a strongly built image
through long advertising helps to keep new entrants away. The advertisement builds up a
certain monopoly are for the product in which new entrants find it difficult to enter.
 Creates a link between the parties involved in business: Advertising aims at benefiting
the producer, educating the consumer and supplementing the salesmen. Above all it is a
link between the producer and the consumer

Benefits or Importance of Advertisement

The following parties involved in business get the benefits of advertising

Manufacturers

 It increases sales volume by creating attraction towards the product.

 It helps easy introduction of new products into the markets by the same manufacturer.
 It helps to create an image and reputation not only of the products but also of the producer
or advertiser. In this way, it creates goodwill for the manufacturer.

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  Retail price, maintenance is also possible by advertising where price appeal is the
promotional strategy.
 It helps to establish a direct contact between manufacturers and consumers.
 It leads to smoothen the demand of the product. It saves the product from seasonal
fluctuations by discovering new and new usage of the product.
 It creates a highly responsive market and thereby quickens the turnover that results in
lower inventory.
 Selling cost per unit is reduced because of increased sale volume. Consequently, product
overheads are also reduced due to mass production and sale.
 Advertising gives the employees a feeling of pride in their jobs and to be in the service of
such a concern of repute. It, thus inspires the executives and worker to improve their
efficiency.
 Advertising is necessary to meet the competition in the market and to survive.

Wholesalers and Retailers

 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.
 Ensures more economical selling because selling overheads are reduced.
 It enables them to have product information.

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

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 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.
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.

 The contact established with the customer by a salesman is made permanent through
effective advertising because a customer is assumed of the quality and price of the
product.

 The salesman can weigh the effectiveness of advertising when he makes direct
contact with the consumers.
Community or Society
 Advertising, in general, is educative in nature. In the words of the late President
Roosevelt of the U.S.A., ―Advertising brings to the greatest number of people actual
knowledge concerning useful things: it is essentially a form of education and the progress
of civilization depends on education.‖
 Advertising leads to a large-scale production creating more employment opportunities to
the public in various jobs directly or indirectly.

 It initiates a process of creating more wants and their satisfaction higher standard of
living. For example, advertising has made more popular and universal the uses of such
inventions as the automobiles, radios, and various household appliances.
 Newspapers would not have become so popular and so cheap if there had been no
advertisements. The cheap production of newspapers is possible only through the
publication of advertisements in them. It sustains the press.

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  It assures employment opportunities for the professional men and artist.
 Advertising does provide a glimpse of a country‘s way of life. It is, in fact, a running
commentary on the way of living and the behavior of the people and is also an indicator
of some of the future in this regard.

DEVELOPING AND MANAGING AN ADVERTISING PROGRAM

1. Setting the advertising objectives
2. Deciding on the advertising budget
3. Choosing the advertising message
4. Developing media and measuring effectiveness
5. Evaluating advertising effectiveness

Setting the advertising objectives

The advertising objective should emerge from a thorough analysis of the current marketing
situation. If the product class is mature, the company is the market leader, and brand usage is
low, the proper objective should be to stimulate more usage. If the product class is new, the
company is not the market leader, but the brand is superior to the leader, then the proper
objective is to convince the market of the brand‘s superiority Advertising objectives can be
classified according to whether their aim is to inform, persuade, or remind.

 Informative advertising figures heavily in the pioneering stage of a product category,

where the objective is to build primary demand.
 Persuasive advertising becomes important in the competitive stage, where the objective is
to build selective demand for a particular brand.
 Reminder advertising is important with mature products.
 Reinforcement advertising, aims to convince the purchasers that they have made the right
choice.
Deciding on the advertising budget
 Advertising is treated as a current expense, part of it is really an investment in the
building brand equity and customer loyalty. Management should consider these five
factors when setting the advertising budget Product life cycle stage: New products
typically receive large budgets to build awareness and to gain consumer trial. Established
brands usually are supported with lower budgets as a ratio to sales.

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  Market share and consumer base: High-market-share brands usually require less
advertising expenditure as a percentage of sales to maintain their share. To build share by
increasing market size requires larger advertising expenditures. On a cost-per-impression
basis, it is less expensive to reach consumers of a widely used brand than to reach
consumers of low-share brands
 Competition and clutter: In a market with a large number of competitors and high
advertising spending, a brand must advertise more heavily to be heard. Even simple
clutter from advertisements that are not directly competitive to the brand creates a need for
heavier advertising.
 Advertising frequency: The number of repetitions needed to put across the brand‘s
message to consumers has an important impact on the advertising budget.
 Product substitutability: Brands in a commodity class (cigarettes, beer, soft drinks) require
heavy advertising to establish a differential image. Advertising is also important when a
brand offers unique benefits or features.

Choosing the advertising message

 Advertising campaigns vary in their creativity. In developing a creative strategy,
advertisers follow four steps: message generation, message evaluation and selection,
message execution, and social responsibility review.
 Message Generation: Good ad normally focuses on one or two core selling propositions.
As part of refining the brand positioning, the advertiser should conduct market research
to determine which appeal works best with its target audience and then prepare a creative
message.
 Message Evaluation: The ad‘s impact depends not only on what it says, but often more
important, on how it says it. Execution can be decisive. Any message can be presented in
a number of execution styles: slice of life, lifestyle, fantasy, mood or image, musical,
personality symbol, technical expertise, scientific evidence, and testimonial.
 Reach (R): The number of different persons or households that are exposed to a particular
media schedule at least once during a specified time period.
 Frequency (F): The number of times within the specified time period that an average
person or household is exposed to the message.

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  Impact (I): The qualitative value of an exposure through a given medium (thus a food ad
in Good Housekeeping would have a higher impact than the same ad in the Police
Gazette).

Evaluating advertising effectiveness:

Good planning and control of advertising depend on measures of advertising
effectiveness. Communication-effect research seeks to determine whether an ad is
communicating effectively. Called copy testing, it can be done before an ad is placed
(pretesting) and after it is placed (post testing). Advertisers also need to posttest the
overall impact of a completed campaign. Sales-effect research is complex because sales
are influenced by many factors beyond advertising, such as product features, price, and
availability, as well as competitors‘ actions. The sales impact is easiest to measure in
direct- marketing situations and hardest to measure in brand or corporate-image-building
advertising.
ADVERTISING MEDIA
Medium is through which the advertising message is conveyed to the consumers. The proper
selection of the medium by which the message is to be conveyed must achieve the pre-
determined goals.

Types of Advertising Indoor Advertising:

 Press advertising: Newspaper, Magazine
 Radio advertising.
 Television advertising.
 Film advertising.
Outdoor advertising:
 Posters.
 Advertising board / Hoarding
 Vehicular
 Painted display
 Traveling display
 Electric display.

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  Sky advertising
 Sandwich – man.
 Handbills (leaflets)

Direct Advertising:
 Sales letters.
 Circular letters.
 Booklets & Catalogues.
 Folders.
 Package inserts.

Promotional Advertising:
 Window display
 Interior display.
 Show-rooms.
 Exhibitions.

MEDIA PLANNING
Media planning is a science designed to generate maximum sales from all the
advertising your company invests in

Media planning is the process by which marketers determine where, when, and how often
they will run an advertisement in order to maximize engagements and ROI. The media
plan might split advertising spend and resources between various online and offline
channels such as broadcast, print, paid ads, video ads or native content.

Creating a Media Plan

The goal when creating a media plan is to reach target customers - those who are most
likely to buy from you, at the exact moment that they have decided to buy. Using
advertising, you can educate and inform those likely customers, to make them aware of
your business and to persuade them to buy a particular product from you rather than
another business.

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To make that happen as efficiently and cost-effectively as possible, it is important to
weigh the following when developing your media plan:
 Reach. One of the two most important factors to consider, reach is the number of
people you want to get in front of during a particular timeframe, such as a week or
a month.
 Frequency. The second most important factor is frequency, which is the number
of times your target customers will see your ad. Obviously, the higher the number,
the better, but cost is also a factor. For example, you may want to run an ad daily
in your local newspaper, but the cost for such a purchase may exceed your annual
budget.
 Cost-per-thousand. One way to measure the cost of advertising is to divide the
total cost of advertising in a particular outlet by the media‘s thousands of
customers, to get the cost-per-thousand value. For newspapers and magazines,
you‘d divide the cost by total subscribers. For blogs, you‘d divide by subscribers.
 Selectivity. Depending on how targeted your product is, you may want a measure
of how well the media outlet reaches your particular prospect. For example,
advertising Rolls Royce‘s through the local newspaper will attract attention, but
what percent of the newspaper‘s subscribers fall into the target market of prospects
likely to buy? It might be too low a number to make sense.
 Impact. How many senses can the media outlet being considered reach?
Magazines can appeal to sight,
 and perhaps smell (with those perfume inserts), while websites can appeal to sight
and sound. The same is true with TV. You should consider what senses will make
the biggest impact on a customer‘s purchase decision.

ADVERTISING COPY
An advertising copy, or ad copy, or just copy, is the text form of an advertising
message aimed at catching the attention, and persuading the prospective buyer to
make purchase, all within a short span of few seconds. A copy in essence describes
the ad (irrespective of the medium of advertising) in words. A copy employs the
use of words to promote a product, business, person, or an idea. Practically, an

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 advertising copy includes one or more of the following parts:

Headlines:
Headlines are crucial for print advertisements. They include attractive description
written in colorful bold letters at the top or anywhere in the advertisement.
Attractive fonts are used to make the headline eye- catching. Headlines may
contain slogans. For example, More Smile per Mile by TVS Victor, Japanese
quality, at Chinese price, available in India by Orpat Home Appliances, Elora
Times Ltd. Mostly, headlines are written in bold letters. Headlines suggest major
benefits, offers, or time limit. For example, special offers open only for two days.
Slogans:
Slogans are made of words and sentences. They are expressed in a rhythmic
manner. Slogans are used for every type of advertisement such as TV, radio,
outdoor, and print media. Slogans are presented or written at the beginning, at the
middle, or at the end of advertisement.
In audio-visual media, a slogan is presented with musical effect by using persons or
cartoon characters. For example, Hero Honda, Des Ki Dhadkan; TVS Victor, More
Smile Per Mile; Raymond, The Complete Man; Sansui, Better than the best; Onida
Television, Change the World; Coca-Cola, Life Ho To Asi, and Thanda Matalab
Coca-Cola; Tata Namak, Desh Ka Namak, etc., slogans have popularized some
brands and companies. Sometimes, songs are used. For example, Nirma
Chemicals, MDS masala, etc., used songs in their advertisement. Slogans are
indicative of key themes the advertiser insists to appeal the audience.
Text:
The text is the central part of ad copy. It contains a description. It is prepared with
reference to advertising objectives. For example, a company gives more description
if company‘s objective is to provide more information. Text should neither be too
lengthy nor be too short. Text includes theme or appeal to the customers.
It describes major benefits of products. The claim must suggest an absolute or a
comparative superiority of the products. Most text shows product benefits, special
offers, time, availability, quality, etc. Text is prepared differently for different
media. For example, space is important for print media; time is important for audio-

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 visual media; size is important for outdoor media.
Illustration:
Illustrations are used to make the advertising claim clear and attractive. Here picture,
character, cartoons, charts, etc., are used to illustrate an use of the product. In the
illustration, claims are made through celebrities. In many cases, they are shown
using the products. TV advertisement uses film stars, artists, or cricketers to
illustrate the use of the product. For example, Film stars Sharukh Khan and Priti
Jinta are shown driving Santro Car. Children are used for illustrating different
brands of toothpastes, chocolates, bicycles, and biscuits. Similarly, Coca-Cola
illustrates its product through film stars and cricketers.
Pictures:
Use of pictures is more or less similar to illustration. However, pictures are more
relevant to print media. Pictures include products, brands, persons, etc., presented in
systematic manner. Here, also, products and brands are associated with film stars,
cricketers, and well-known cartoon characters.
Sponsor and logotype:
Ad copy also includes name of company, sponsor, brand or logotype to assist
customers recognize the name of producers and/or marketers. Name of producer
or logotype is kept either at the beginning or at the end of advertisement. Some
advertisements include full name and address of company, including registered
office, regional offices, its website, e-mail, phone, fax, etc. Use of sponsor or
logotype popularizes name of a company along with products and brands. In audio-
visual advertisements, the name of company is shown and/or spoken.

Advertising Agency

An Advertising agency is a service organization which provides specialized services in

the field of advertising. It is a specialized service organization which plans, design and
executes advertising campaigns for its clients in return for the payment of a fee by the
client, or commission by the advertising media or both.

Advertising agencies also perform a number of other marketing services including

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 market research and consulting on various marketing problems. Advertising agency is
composed of creative people and experts of various phases of marketing, who conceive,
develop, prepare and place advertisement in advertising media on behalf of their clients.
The task of an advertising agency:
In order to achieve complete advertising services for its clients, the advertising agency has
to look after the following task:

 Copy writing.
 Art – pictures, photographs.
 Media planning and buying of space.
 Radio and Television – Producing commercial spots.
 Market research.
 Production – Film or tape.
 Public relations.
 Merchandising.
 Sales promotion device.

Forwarding the advertising materials to the media owners and the clients in time.

Remuneration of Agency:
The agency works for the advertiser either on commission basis or on fees basis. Under
commission basis generally the agency receives 15% of the cost media. The commission
is paid to the media owner by the advertiser. In other case the agency is paid by the
owner at 15% of the cost, which is collected from the advertiser. In certain cases the ad
agency collects the amount from the client deducts 15% and the balance is given to the
media owner. Under fees a lump sum is charged by the agency.

Famous Ad – Agencies in India:

 Hindustan Thompson Associate, Bombay.
 Lintas India, Bombay.
 Mudra Communications, Ahmedabad.

 Oglivy & Marther, Bombay.

 Ulka Advertising.

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  R.K.Swamy Advertising associates.
 Leo Burnett Advertising, Bombay.
 Rediffussion Advertising, Bombay.
 Saatchi & Saatchi.
 McCann Erickson.
 Grey Worldwide.
 Rubecon.

DAGMAR APPROACH

The DAGMAR approach of advertising was devised by Mr Russell Colley. DAGMAR is a

concept used in advertising to set advertising objectives and goals. DAGMAR is an abbreviation
for ―Defining advertising goals to measure advertising results‖.

The DAGMAR approach is used by many promotional planners to set plans of advertising and
marketing. This approach is also used to set advertising objectives and to measured the results
against the plan. Russell coley‘s work has led to the improvement of the advertising world,
because these communication tasks were not only sales driven, they achieved various goals of
the organization only through Advertising.

The 2 core things on which the DAGMAR Model stood were

 Creation of a communication task to achieve goals

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  Defining the objective of the communication tasks in a manner that the results can be
measured

The communication tasks involved in the DAGMAR approach.

A marketing task is a combination of an advertising activity, a branding activity and
possibly a customer service activity. The work of marketing is holistic and hence it has to
look at the whole organization. The work of Advertising is more individualistic and hence
the organization is not considered. To measure that a task assigned to advertising, is later
on measured only in advertising terms, Russell colley designed the communication tasks.
Creating a communication task, which involves communications between the company
and the consumer, was solely the responsibility of the Advertising department.
The goal of the communication tasks in DAGMAR was as follows
 Awareness – Communication tasks involved making the consumer aware of the
brand or the product.
 Comprehension – These tasks also helped the consumer in understanding the attributes
and the features of the product and what the product will do for the consumer.
 Conviction – The communication task convinced the customer that this product was
meant for them
 Action – Ultimately, after conviction, the customer was to be enticed to take action.

Defining objectives in the DAGMAR approach.

The second most important task of DAGMAR was defining the objectives of advertising
or of the communication tasks which were to be created. Once you defined the
objectives, then the measuring of advertising results was comparatively easier. With this
move, Russell colley also gave more responsibilities to the advertising department. Not
only were they responsible for the ads made, they were also responsible for how well they
understood the objective of advertising, and how they incorporated these objectives in
their communication tasks.
In this modern age, we know that advertising is used for introducing a product, building
brand equity, for sales promotions or for plain old brand recall. However, all these are the
objectives of advertising and form the 2nd part of DAGMAR.
The objectives of advertising in DAGMAR (which are used to create communication
tasks) are as follows

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 Concrete and measurable tasks – The tasks need to be a precise statement of what the
advertiser wants to achieve through the communication. Does he want to strengthen the
brand image, maximise the brand presence, penetrate new markets or increase overall
sales?
 Define the target audience – Before the communication task commences, the target
audience needs to be defined as precisely as possible. Are you targeting youngsters,
adults, elderly? Any of the various forms of segmentation can be used to define the target
audience. Degree of change sought – What level of perception, attitude or awareness of
the customer do you want to change? If a customer is aware of the product, do you want
his negative attitude to change to positive? Or if the market is completely unaware, do
you want the whole market to be aware or only partially the target group itself? These
degrees of change which are going to be the objective of the communication task need to
be defined in advance.
 Time period – To achieve the objectives of the communication tasks, how much time are
you ready to allot. If you think that in a month, the product can create awareness in the
complete market, then you are very wrong. That‘s why major advertisers try to introduce
the product for 3 months, and then communicate the features and benefits in the next 3
months so that the brand recall is high and the brand acceptance is high as well. A defined
time period gives better measurability.
SALES PROMOTION
Definition:

Sales promotions are a diverse collection of incentive tools designed to stimulate

faster and/or larger purchases of products or services by consumers or the trade
(Kotler 1997)

Sales promotion includes tools for consumer promotion (samples, coupons, cash refund
offers, prices off, premiums, prizes, patronage rewards, free trials, warranties, tie-in
promotions, cross- promotions, point- of-purchase displays, and demonstrations); trade
promotion (prices off, advertising and display allowances, and free goods); and business-
and sales force promotion (trade shows and conventions, contests for sales reps, and
specialty advertising).

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Objectives of sales promotion

 To increase buying response by ultimate consumer.

 To increase the selling efforts of dealers and sales personnel.

 Calling attention to new product improvement.
 Informing buyer new brand or new package.
 Improve market share.
 Increase usage rate of the present customers.
 Maintain brand loyality.
 Securing additional shelf- spare and added display.

Sales promotion is effective when:

 A new brand a introduced.

 We have to communicate a major improvement or attraction in product.

 Enlarging the result of advertising.

 Increasing the number of retail stores in order to sell out products.

 Engaging or embarking upon aggressive sales campaign.

Types of sales promotion
 Consumer-Promotion Tools
 Sales Force Promotion Tools
 Trade promotional tools

1. Consumer-Promotion Tools
o Samples: Offer of a free amount of a product or service.
o Coupons: Certificates offering a stated saving on the purchase of a specific
product.
o Cash Refund Offers (rebates): Provide a price reduction after purchase:
Consumer sends a specified ―proof of purchase‖ to the manufacturer who
―refunds‖ part of the purchase price by mail.

o Price Packs (cents-off deals): Promoted on the package or label, these offer
savings off the product‘s regular price.

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 o Premiums (gifts): Merchandise offered at low or no cost as an incentive to
buy a particular product.
o Prizes (contests, sweepstakes, games): Prizes offer consumers the chance to win
cash, trips, or merchandise as a result of purchasing something. A contest calls for
consumers to submit an entry to be examined by judges who will select the best
entries. A sweepstakes asks consumers to submit their names for a drawing. A
game presents consumers with something every time they buy— bingo numbers,
missing letters—that might help them win a prize.
o Patronage Awards: Values in cash or points given to reward patronage of a
certain seller.
o Free Trials: Inviting prospects to try the product free in the hope that they will
buy the product.
o Product Warranties: Explicit or implicit promises by sellers that the product will
perform as specified or that the seller will fix it or refund the customer‘s money
during a specified period.
o Tie-in Promotions: Two or more brands or companies team up on coupons,
refunds, and contests to increase pulling power.
o Cross-Promotions: Using one brand to advertise another noncompeting brand.
o Point-of-Purchase (POP) Displays and Demonstrations: Displays and
demonstrations that take place at the point of purchase or sale.

2. Sales Force Promotion Tools

 Trade Shows and Conventions: Industry associations organize annual trade shows and
conventions where firms selling products and services to this industry buy space and set
up booths and displays to demonstrate their products. Participating vendors expect several
benefits, including generating new sales leads, maintaining customer contacts, introducing
new products, meeting new customers, selling more to present customers, and educating
customers with publications, videos, and other audiovisual materials.
 Sales Contests: A sales contest aims at inducing the sales force or dealers to increase
sales over a stated period, with prizes going to those who succeed. Incentives work best
when they are tied to measurable and achievable sales objectives (such as finding new
accounts or reviving old accounts) for which employees feel they have an equal chance.

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  Specialty Advertising: Specialty advertising consists of useful, low-cost items (such as
calendars) bearing the company‘s name and address, and sometimes an advertising
message, that salespeople give to prospects and customers.

3. Trade-Promotion Tools

 Price-Off (off-invoice or off-list): A straight discount off the list price on each case
purchased during a stated time period. The offer encourages dealers to buy a quantity or
carry a new item that they might not ordinarily buy. The dealers can use the buying
allowance for immediate profit, advertising, or price reductions.

 Allowance: An amount offered in return for the retailer‘s agreeing to feature the
manufacturer‘s products in some way. An advertising allowance compensates retailers
for advertising the manufacturer‘s product. A display allowance compensates them for
carrying a special product display.

 Free Goods: Offers of extra cases of merchandise to intermediaries who buy a certain
quantity or who feature a certain flavor or size. Manufacturers might offer push money or
free specialty advertising items to retailers that carry the company‘s name.

Benefits of sales promotion techniques

 It stimulates in the consumers an attitude towards the product.

 It creates a better incentive in the consumers to make a purchase. It is a demand creator.

 It gives direct inducement to the consumers to take immediate action.

 It is flexible. It can be used at any stage of a new product introduction.

 Sales promotion leads to low unit-cost, due to large-scale production and large-scale
selling.

 It is an effective supporter of sales. It helps the salesman and makes his effort more
productive.

 The promotional tools are the most effective to be used in increasing the sales volume.

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Limitations of Sales Promotion:

 Sales promotions are only supplementary devices to supplement selling efforts of other
promotion tools.

 Sales promotion activities are having temporary and short life.

 The benefits are also short-lived for three or four months. Then the demand will fall
down.

 They are non-recurring in their use.

 Brand image is affected by too many sales promotion activities. Consumers are of the
opinion that due to the lack of popularity and overstocking of products of a company,
these sales promotional activities are conducted.

 There is a feeling in the minds of the customers that sales promotional activity tools are
used to sell inadequate or second grade products.

 Discounts or rebates are allowed by boosting the prices of the goods, with a view to sell at a
gain, which is not real.

 Immediate increase in demand is stimulated by this. Hence it is a short-lived tool.

 It is expensive and leads to a rise in the price of products.

PUBLIC RELATIONS
Public relations (PR) involves a variety of programs designed to promote or protect
company‘s Image or its individual products.
Public relations are a strategic communication process companies, individuals, and
organizations use to build mutually beneficial relationships with the public.
Functions
 Press relations: Presenting news and information about the organization in the most
positive light.

 Product publicity: Sponsoring efforts to publicize specific products.

 Corporate communication: Promoting understanding of the organization through
internal and external communications.

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  Lobbying: Dealing with legislators and government officials to promote or defeat
legislation and regulation.
 Counseling: Advising management about public issues and company positions and
image. This includes advising in the event of a product mishap.
Marketing Public Relations plays an important role in the following tasks:

 Assisting in the launch of new products: The amazing commercial success of toys such
as Teenage Mutant Ninja Turtles, Mighty Morphin‘ Power Rangers, and Beanie Babies
owes a great deal to clever publicity.
 Assisting in repositioning a mature product: New York City had extremely bad press
in the 1970s until the ―I Love New York‖ campaign began.
 Building interest in a product category: Companies and trade associations have used
MPR to rebuild interest in declining commodities such as eggs, milk, beef, and potatoes
and to expand consumption of such products as tea, pork, and orange juice.
 Influencing specific target groups: McDonald‘s sponsors special neighborhood events
in Latino and African American communities to build goodwill.
 Defending products that have encountered public problems: Johnson & Johnson‘s
masterly use of MPR was a major factor in saving Tylenol from extinction following two
incidents in
which poison-tainted Tylenol capsules were found.
 Building the corporate image in a way that reflects favorably on its products: Iacocca‘s
speeches and his autobiography created a whole new winning image for the Chrysler
Corporation.

Objectives of PR
 Build marketplace excitement before media advertising breaks: For example, the
announcement of a new product offers a unique opportunity for obtaining publicity and
for dramatizing the product.
 Build a core consumer base: Marketers are increasingly recognizing the value of
maintaining consumer loyalty, because it costs far less to keep a consumer than to get a new
one.
 Build a one-to-one relationship with consumers: Marketers can use telephone hot lines

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 and 800 numbers, plus the Internet, to build and maintain relationships with individual
consumers.
 Turn satisfied customers into advocates: Customer databases and profiles can yield
satisfied customers who can become role models and spokespeople for the product.
 Influence the influential: The influencer may be an authority figure like a teacher, doctor,
or pharmacist, but it also can be someone who has a different kind of oneto- one
relationship with the consumer, such as a hair stylist or personal trainer.

Major Tools in Marketing PR

 Publications: Companies rely extensively on published materials to reach and influence

target markets, including annual reports, brochures, articles, printed and on-line
newsletters and magazines, and audiovisual materials.

 Events: Companies can draw attention to new products or other company activities by
arranging special events like news conferences, on-line chats, seminars, exhibits, contests
and competitions, and sport and cultural sponsorships that will reach the target publics.
 News: One of the major tasks of PR professionals is to find or create favorable news about
the company, its products, and its people. The next step—getting the media to accept
press releases and attend press conferences—calls for marketing and interpersonal skills.
 Speeches: Speeches are another tool for creating product and company publicity and
building the company‘s image.
 Public-Service Activities: Companies can build goodwill by contributing money and time
to good causes.
 Identity Media: To attract attention and spark recognition, the firm‘s visual identity is
carried by its logos, stationery, brochures, signs, business forms, business cards, Web site,
buildings, uniforms, and dress codes.

PERSONAL SELLING
Personal selling is the personal presentation by the firm‘s sales force for the purpose of
making sales and building customer relationships Face-to-face selling in which a seller
attempts to persuade a buyer to make a purchase.

Salespeople perform one or more of the following tasks:

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  Prospecting: Searching for prospects, or leads,
 Targeting: Deciding how to allocate their time among prospects and customers,
 Communicating: Communicating information about the company‘s products and
services,
 Selling: Approaching, presenting, answering objections, and closing sales,
 Servicing: Providing various services to customers—consulting on problems, rendering
technical assistance, arranging financing, expediting delivery
 Information gathering: Conducting market research and doing intelligence work, and

 Allocating: Deciding which customers will get scarce products during shortages.

Qualities of a successful sales person:

 Personality: The term personality comprises several attributes like physical appearance,
way of speaking, voice, posture, health, habits etc., if any of these attributes is lacking a
salesman may not be able to do his job effectively. A pleasing and charming personality
always creates good impression on the customers.
 Mental Qualities: An effective salesman must possess certain mental qualities like
imagination, fore sightedness, presence of mind, strong memory power and initiative. A
salesman who is intelligent enough to understand the nature of prospectus and perceive
their requirements is most likely to be successful
 Sociability: A salesman should be social and have the ability to mix with people. He
should be shy & reserved. He should be patient and listen to the customer. He should be
polite and humble in taking to the customer
 Vocational Skills: A salesman should have sound general education and have the
specialized knowledge of selling techniques. A good salesman should know the features,
benefits and other particulars of the products he is to sell.
 Communication ability: Communication skill is the asset for the salesman. He should be
able to speak freely, clearly, and in a well-pitched voice
 Patience: The salesman should not get provoked even under worst circumstances. He
should have sufficient patient to listen to customers and clear their doubt
 Determination: The salesman should have the sense of determination to secure the
customer. He should not lose confidence and give up the customer so easily.

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Merits of Personal Selling:
The strength of personal selling is measured in terms of the merits to its credit as a distinct form
of promotion.
These are:

 Flexibility and adaptability: Personal selling by its very nature is capable of providing
more flexibility, being adaptable. A salesman can adjust‘ himself to the varying needs,
moods, motives, impulses, attitudes and other behavioral variables of the prospects with a
view to communicate effectively and effect the sales for the unit.
 Minimum waste: The efforts put in by the salesman are highly focused on a single
customer or a small group of customers. The message is likely to reach them without
distortion and diffusion.
 Acts as a feed-back: The salesman is, in effect, a researcher. Being in direct contact with
the consumers, he has the advantage of collecting and transmitting the relevant market
information affecting his company. Such timely, authentic and verifiable data is the basis
of vital decisions, strategies, and tactical adjustments. Thus, he feels the pulse of the
market that is ever changing.
 Creates lasting impression: The personal selling process is so direct and penetrating that
lasting business relation can be developed between the selling house and the clientele. In
case of advertising, it acts like a flash of a thunder-bolt from the blue. The light though
very powerful, lasts only for a few seconds. The light of salesmanship is like an electric
current that lasts longer.
 Pulls through logical sequence: The personal selling follows a logical selling process
which matches to the reasoning of one and all. A salesman pulls through the customer in
the step-by-step selling process starting with attention and ending with satisfaction with
interest, desire, conviction and action juxtaposed between. Further, he detects loss of
consumer attention and interest and brings the consumer back to the track by repetitions
and reinforcements.

Limitations:

 It is expensive: Personal selling as a method of promotion is quite expensive. Getting

salesman is one thing and retaining him for long is another. Further, there are no

32
 definite correlations between his stay and cost of retaining and the contributions of
his, in return, to the firm, for such costs.\

 Difficulty of getting right kind of salesmen: Though, theoretically certain

guidelines are prescribed for getting right kind of salesmen from the potential
candidates, it is really very difficult to get suitable salesmen from company‘s point of
view. The potential salesmen so selected, trained and placed, do not guarantee loyal
service to the company
 Stake in consumer loyalty: Personal selling is such a process-direct and close
between the customer and salesman that the consumer loyalty depends on the presence
of such a salesman. The firm‘s fortunes are tied to the loyalty of consumers which, in
turn, depends on the very presence of salesman. The moment the salesman moves out,
the clientele drops down to the detriment of the firm.

 More administrative problems: Personal selling involves more of administrative

problems than impersonal selling. Since, the firm is to deal with manpower a driving
force behind sales the company has to meet the challenges in the areas of manpower-
planning, organizing, directing, coordinating, motivating and controlling. The
solutions to these problems, even if found out, are not everlasting because, human
content in management is unique.

SALES FORCE MANAGEMENT

Sales force management consists of analysis, planning, implementation and control of sales
force activities.

Steps in Sales Force Management:

1. Setting objectives:
The first step involved in sales force management is to decide what a firm intends to
achieve through personal selling. Personal selling may have any one or more objectives
given below:
a. Serving the existing customers.
b. Developing new customers.
c. Improving company‘s image.
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 d. Increasing company‘s market share and profit.
e. Enhancing customer satisfaction, etc.
2. Designing Strategy:
The next step of sales force management is to decide on one or more strategies to contact the
prospective customers. Prospective customers are met in their respective places in the
foreign countries. Prospective customers may be contacted personally or through mail or
over telephone. Now the company should decide whether it should use company sales
force or contractual sales force to contact the prospects.
3. Structure of Sales force:
After finalizing sales strategy, the next step to be taken by the company is to plan the
structure of the sales force. Following options are available to a company for planning
sales force structure:
a. Territorial Structure: In this structure each salesperson is assigned an
exclusive geographical territory.
b. Product Structure: In this structure, each salesperson is assigned a product or
product line.
c. Customer Structure: In this structure sales force is organized along customer
lines.

4. Size of the Sales force:

Next step is the determination of the number of salespersons that the company needs over
a specific period of time (say a year). The size of the sales force depends on the
compensation methods used, salesman‘s morale, sales forecasts, and the overall
management of the sales force. It must be adjustedperiodically with the variation in the
company‘s marketing plans and changes in markets and forces in the marketing
environment.
5. Recruitment and Selection of Salespersons:
The next step is to seek applicants who have required qualifications, and matching them
to the duties of salesman. The salesman may be chosen from inside the organization or
Outside, through advertisement, introductions, educational institutions, small customers,
etc., or the sales forces. Of other firms in the trade. The sales manager should judge the
ability of the persons concerned before actually selecting them as salesmen.

34
Since salesman directly comes into contact with customers as a representative and he
reflects the character of the employer, therefore, utmost care need be taken in selecting a
salesman. Unwise selection will bring slow turnover, inefficient blocks of capital in
stocks, loss of goodwill, increased selling expenses, certain qualities are deemed
necessary for successful selling.

6. Training of Salespersons:
Salespersons should be properly trained. It is not only the newly recruited salesmen who
need training but the existing sales then also need it as the product, market and the
competition are in a continued process of change. Sales training programs can be directed
at the entire sales force or at a few individuals.
They can be conducted by sales managers, other salespeople, or technical specialists from
within the organization. There are also individuals and organizations that sell special sales
training program. Regardless of who manages the training programme, several issues
should be addressed, including type, location and timing, and methods and materials of
training. The emphasis in all these issues should be on developing the necessary skills
among salespersons so that they can prove to be assets for the firm.
7. Compensating salespeople:
One of the goals in developing a personal selling programme is to attract, motivate, and
retain a highly productive sales force. To accomplish that goal, the business must
develop and implement a plan for compensating the sales force. The compensation plan
should provide salespeople with an adequate degree of income and incentive.
8. Supervision:
Effective supervision of salespersons plays a crucial role in improving their performance.
Salespersons operate in the field and are often located thousands of kilometers away from
the company office. This makes their supervision more difficult, There should be proper
communication channel between supervisor and salespersons. Effective supervision
motivates salespersons. Salespersons should be motivated through monetary incentives,
sales contests, honors, promotion, personal growth, etc.
9. Evaluation:
Management of sales force will not be complete without evaluation of their performance.

35
For sound evaluation, these should be a feedback mechanism. This requires regular sales
reports of the salespeople, personal observation, customer surveys, communication from
the customers, discussions with others in the company. Meeting sales targets is one of the
several criteria for evaluation. The purpose of evaluation is to take corrective measures, if
needed, to achieve the objectives.

Functions of Sales force

1. Lead Generation: The Sales Representatives generate the sales lead and then track the
potential user by gathering the data and customer related info like phone numbers, tastes,
and buying patterns.
2. Sales Forecasting: Predicting the company future sales based upon the previous sales
for a particular period of time; is sales forecasting process. The Sales Forecasting is done
for the next tax year or the fiscal year (or for a period of a time in the near future). This
enables the company to take important business decisions regarding production,
distribution, advertising budgets.
3. Order Management: The sales Force Manages and streamlines the product orders
efficiently. A well- executed Order Management System or OMS results in Sales Boost,
Improved Customer retention and Better Consumer Relations. Order Management
System is quite a hefty term for a simple concept; delivering Goods and products without
or minimum delay is order management.
4. Knowledge: The basic element for closing a deal or making a successful sale is having
the complete knowledge of the product. To win the customer trust is of outmost
important for the Sales representative. In order to convince the buyer to spend the money
on the product the Sale team must have the complete know how of the Product and its
benefits.Sales Force Management is also responsible selecting, recruiting, training,
supervising, controlling and managing the sales teams or Sales personnel.

Recruitment and selection of sales force

Sales Force Management: Recruitment, Training, Supervision and Sales Performance

Evaluation

Sales Force Management and Evaluation of Sales Performance

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 Salesman is the important corner-stone upon which sales organisation is built. Success or
failure of the firm depends upon the type of salesman selected. Therefore, selection must
be made carefully. It is the duty of the Sales Manager to select salesmen.
Recruitment
Recruitment involves searching for prospective candidates and encouraging them
to apply for the job. Vacancies are finalized, advertised and applications are
collected from interested candidates. Selection Selection is concerned with
choosing most suitable candidates out of many available or interested. Available
candidates are scrutinized, tests and interviews are conducted to find out most
suitable candidates.
Selection of Salesperson – Stages involved in selection process
1. Receiving applications from Salesperson
Applications are received from eligible candidates for the salesperson job. The candidates
might have been asked to send their applications in a plain paper along with their bio-data.
Some organizations make available what are called ‗Application Blanks‘, which may be
obtained on payment of the prescribed fee. The application blank made available by the
employer contains fixed data pertaining to the name of the candidate, his qualification,
address, etc., and the candidate has to just fill it up. It ensures uniformity. Application
blanks facilitates quick processing of applications. The employer gets all the necessary
information, he wants, from the candidates without bias.

2. Scrutinizing Applications of Salespersons

The applications received from all the candidates for the salesperson job will then have to
be processed. Incomplete applications will be set aside. Applications of those candidates
who fail to fulfill the eligibility criteria will be not be accepted for the salesperson job.
3. Written test for Salespersons
All the eligible candidates for the salesperson job may then be called for a written test.
The test paper usually contains two parts, objective and descriptive questions. The
objective questions may test the candidate‘s knowledge of English, mathematics and also
his level of general knowledge. The descriptive part will test the candidate‘s ability to
draft a letter and prepare a general essay. Interview of Salesperson
4. Interview

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 The candidates who have been successful in the written test during the salesperson
selection process will then be called for an interview. Interview is a face-to-face oral
examination of the candidate. The objective of interview is to test the candidate‘s ability
to face a panel of experts and communicate his ideas. The interview will help the
employer to know whether the candidate is a shy person or is bold enough to undertake
any assignment. The candidates, who are going to be selected as salesperson, shall
possess good communication ability.
5. Checking references of Salespersons
Applicants for jobs of salesperson are usually asked to give the names of a couple of
eminent persons in their applications. Such persons, who are called referees, may be
contacted by the employer to know the conduct and character of the candidate.

6. Medical examination for Salespersons

Successful candidates for the salesperson job shall be medically examined to find out
whether they are physically fit. The candidate‘s height, weight, eyesight, etc., are
checked. Physical fitness is important for any kind of job. It is even more important for
a salesperson as he has to undertake lot of traveling.

7. Appointment of Salespersons
Candidates found to be medically fit may be appointed on probation for the salesperson job.
Probation is the initial training period during which the salesperson has to learn his work
and also perform to the satisfaction of the employer. The period of probation may vary
from six months to two years. Only those salespersons, who have lived up to the
expectations of the employer, during the period of probation, will be retained. During
probation, the salesperson usually gets a consolidated salary. He will be put on scale of
pay only on confirmation of his service.

Challenges in the selection of a salesman:

 Selling jobs becoming more difficult to perform because of the greater complexity of
the products and services, the multiplicity of channels of distribution, etc.
 Markets today are highly competitive.
 Selling as a career or profession has not been fully accepted and hence, there is only

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 limited number of salesmen who would qualify.
 There is a noted absence of institutions where salesmanship is taught.
Recruitment of salesmen involves the following processes:
1. Deciding the Quantity of Sales force:
Before the selection is undertaken, the Sales Manager should assess the need for sales
force in quantitative terms, e.g., how many sales men are required, based on expansion of
business and attrition due to retirement and resignation.
2. Determination of Characteristics and Qualities to Be Possessed by the Salesforce:
Job Description/Analysis:
It is concerned with the determination of nature of duties and responsibilities involved in
performing effectively a particular job. Job description is concerned with a job and not
the individuals. It gives details of the job to be performed and the qualities and
qualifications required. The man specification indicates the exact requirements needed
for a particular job. On the basis of nature of duties, the requirements also may change.
The following qualities are required of a salesman:
 General Qualities- Good personality, sound health, intelligence, honesty and integrity of
character, sociability, consistency, and power of observation.
 Particular Qualities- Educational qualifications, past experience, knowledge of the
product, customers and market, languages known.
 Technical Knowledge- Knowledge about the chemical or mechanical aspects of the
product to be sold, knowledge of legal implications involved in the sales activities, etc.

3. Source of Recruitment of Salesforce: After job analysis and man-specification, every

possible source should be tapped to select the most efficient salesman.
The various sources are as follows:
a. Company‘s own staff (promotion)
b. Competing firms (not ethical — higher salary)
c. Employment exchanges
d. Educational institutions
e. Situation Wanted‘ columns of newspapers
f. ‗Situation Vacant‘ advertisements
g. Casual applicants

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 h. Recommended candidates.
i. Placement agencies.
4. Selection of Sales force:
From these sources, applications are received and screening of the applications is made.
Applications which satisfy the job descriptions and man-specifications are only
considered for selection. The selected applicants are called for psychological test. If
they fare well in the above two, they will be referred from the referees mentioned by the
applicants.

If a good report is given by the references, the candidates will be called from medical
examination. If the candidates are physically fit, they will be called for final interview
and appointment order is issued. The appointment order should be clear, at least in the
following aspects: designation, salary and allowances and mode of appointment, i.e.,
temporary or permanent.
5. Training sales force
There is an old belief that ―Salesmen are born and not made.‖ Once in a while, we may
come across a salesman who is capable of selling a refrigerator to an Eskimo, but this is
rare. The salesman has to educate the customers about products, sell the same with
benefit to the customer and profit for the company. Therefore, he should have excellent
knowledge about products, competition, market dynamics, buying motives, and selling
skills.

Training of sales force

Need for Training of Sales force:

 The need of training salesman arises from the fact that a newly appointed
salesman does not have the knowledge about the product he has to sell. He may
not have knowledge about customers and buying motives. He may not know how
to sell the product or how to present them to the prospective buyers.
 Even old salesman need training to acquaint them with the new products of the
firm or those of the competitors, to explain to them the improved sales technique
or simply as a refresher course.
The extent of training will depend upon following:

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 1. How difficult and complicated is the selling job concern?
2. The level of education and previous training the salesman possesses.
3. Previous selling experience of the salesmen.
4. The type of buyer to be approached. In case of an expert buyer, more knowledge of the
product to be sold is the absolute necessity.
Methods of Training:
A. Individual Methods:
 Initial or Break-In Training: The trainee is asked to work in different departments
and study for himself. He may be guided but often left free. After a specific period, he
would be asked to work in his field.
 Special Assignments: Slightly easier assignments are given and his capacity in
handling problems is watched. Shortcomings, if any, are brought to his notice for future
guidance e.g., senior and junior lawyers.
 Field Coaching: The newly recruited salesman is asked to work along with an
experienced salesman in the field. This method creates self-confidence, enthusiasm in
the newly recruited salesman.
 Sales Manuals: These are tailored books where a number of problems are stated
together with suggested answers. This is prepared out of company‘s past experience
and might contain valuable information. These are given to salesman for self-study.
B. Group Methods:
1. Lecture Method: This is the easiest and quickest method of imparting information to
the trainees. Most of the training methods are based on this principle, simply because of
its assured success. It is theoretically-oriented and the practical aspects are ignored. In
spite of these defects, lecture method forms the cornerstone of various training methods.
2. Audio-Visual Methods: It is a ‗telling and showing‘ method. This method is often used
as a supplementary to the lecture method. The visual aids such as filmstrips, slides,
charts, posters, etc., are capable of providing more exposition to the lectures and making
it more interesting. Demonstration is possible under this method.
3. Conference Method: Sales conference and seminars are usual nowadays with most
organizations. Such methods are useful in sharing the experiences of the experienced
people. However, it is not a good method of training for the newly recruited salesmen.

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 4. Discussion and Case Method: For those who have basic knowledge on the subject this
method is quite good. A particular problem is given to various groups and each group is
asked to discuss it and put forward its suggestions. Later on, all these suggestions are
analyzed by all the groups together. This enables to have a correct idea of the problem,
and a better solution.
5. Role-Playing: Under this method, each participant is asked to play a role. A situation is
suggested and each one will have to act just like what he is expected to do in real-life
situation. This method is a lively one and uses co incidence in taking independent
decisions. Later on, the role played by the participants is analyzed and the shortcomings
are pointed out.
C. On-the-Job Methods:
This method stresses practice-oriented training.
1. Field Training: The new representative works in the field meeting various categories of
customers.
2. Job Rotation: The salesman is trained in all departments and he would be asked to work
in all sections of each department. This would give him a clear idea of inter-departmental
relationship, which would give him an idea about the company. Further, he may also be
asked to work in the factory to know how products are processed. All these would give
him enough tools to overcome the resistance of the customers in the sales field.

3. Off-the-Job Method: Many associations generally issue journals, bulletins and other
publications to enable their members to perform their duties more promptly and
efficiently. The salesperson can become a member of such associations to upgrade his
knowledge and skills.
4. Follow-Up Training: Training is not temporary but should be continuous. Even the
trained salesmen require periodic training termed as ‗refresher training‘ or ‗follow-up
training.‘ Periodic training is essential as frequent changes are always encountered in the
marketing scene. Change in consumer preferences, changes in Government policy,
change in product, etc. in order to make the salesman abreast of all these developments,
constant training is essential.

Pre-requisites of a good training scheme for sales force:

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1. Basic Principle of Salesmanship:
Salesmen, to be effective in their sales efforts, should know fully the buying motives of
customers and the selling points of the products. They should be well-versed with the
methods of approaching the customers. They should know the effective way of arousing
the interest in the product and the art of creating desire for it.
They should be able to meet the objections raised by the customers. The training
programmed should stress on the AIDA formula to explain and build the sales
presentation.
A – Attention – How to get it? I – Interest – How to arouse it?
D – Desire – How to develop it?
A – Action – How to bring about decision to buy?
2. Knowledge of the Firm:
The salesman should be well informed about the company i.e., history of the company,
its organizational set up, the name it has earned, achievement records, sales policies,
distribution policies, customer‘s service provided by the company, selling outlets,
(channels) and so on. Knowledge about the firm‘s goodwill and its selling policies goes a
long way to inject a sense of pride in the salesmen and enable them to do their job as per
the firm‘s policy.
3. Knowledge of the Product:
To be successful in increasing the sales volume of a product, salesmen should possess the
requisite knowledge of the product. Good physical appearance alone will not help him to
sell the product. Therefore, a salesman must have a detailed knowledge regarding- nature
of the product, methods of production, materials used, method of packing, uses of the
product, etc. This knowledge could be gained only out of properly organized training by
the company.
4. Knowledge about the Customers:
A salesman must have a perfect knowledge of customers to whom the products are to be
sold. Furthermore, consumers are human beings and their behaviour would be different
from one another. Their buying motives would be different from one another. Each
customer would be different as to the nature and type. Buying motives include
considerations of health, comfort and convenience, such as sense of fear, fashion,

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 recreation, affection, hobbies, and habits. All these necessitate the salesman to acquire
the knowledge of ‗customer psychology.‘ The training is required to study at least three
factors- What motivates the buyer to buy? What is the nature and requirement of the
customer? How to deal with different types of customers?
5. Knowledge of Competitors:
Apart from the knowledge regarding the firm represented by the salesman and its
products, they must possess the knowledge relating to their products and policies of the
competing firm.
6. Matters Pertaining to the Day to Day Work:
Salesman should also be given training to know the following:

1.To draft periodical reports to the firm

2.Receipt of and replying letters
3.Preparation of orders and bills
4.Maintenance of accounts
5.Arrangements of display and demonstration of products.
7. Knowledge of self-

In order to become an effective salesperson, one should seek knowledge in all relevant
subjects and apply the same in day-to-day work. This can be achieved by developing
regular reading habits, upgrade technical knowledge, managerial and selling skills. He has
to improve skills in communication, public-speaking and presentations. Salesmanship is not
a matter of personality alone, but a systematic utilization of one‘s personality. It is realized
that no product could be sold unless ‗the presentation‘ is made in an efficient and
convincing manner.
Advantages of Training the Salesforce:
1. Greater Sales Volume: A scientifically designed training programme helps to
increase the sales volume.
2. Reduces Cost of Production: Increased selling helps to reduce cost of production.
3. Early Selling Maturity: Training reduces the time to be spent by the salesman with
each customer in convincing him about the product.
4. Lowers Supervision Cost: In the case of untrained salesmen, sales manager and
the other supervisory staff have to pay more visits than those needed in the case of

44
 trained salesmen to keep a check on their work.
5. Lowers Turnover of Salesforce: Proper training makes the salesman well-
prepared for the field work. This results in reduced number of salesmen leaving
their job. This lower rate of turnover gives the advantage of reduced costs of
recruitment, selection and training of salesmen.
6. Better Customer Relations: A scientifically trained salesman knows how to deal
with a particular sales situation. He does not oversell, e.g., he does not sell the
wrong quality or type of goods. The salesman advises the customers in business also.
Therefore, a cordial pleasant personal relationship with the customer is established.
This makes frequent visits to book repeat orders possible.

Compensation of sales force

Need for a good compensation system in organization

1. To Attract Best Salesmen:

Gifted and talented salesmen can be attracted only when a firm is prepared to reward
amply the services rendered. There is no harm in paying a little more than others, as it
pays in terms of improved level of performance.
2. To Keep Sales force Contended:
There is a direct link between payment made to them and the satisfaction. Man performs
his duties, looks after well and then he is happy and contended or satisfied. A satisfied
employee puts heart and soul together to maximize the work performance.
3. To Build Up Loyalty:
The aim of sound sales organization is to build not only competent sales force but to
have people who are prepared to serve for a long time. Loyal staff makes the
organization rich. Good pay- masters have this advantage ―pay well and keep the
employee‖ is the watch-word. A loyal staff avoids problems of recruitment, selection,
and training and, therefore, the dilemmas of labor turnover.
4. To Guarantee Sound Employer-Employee Relation:
Misunderstandings normally arise due to many matters and disparity in treatment. Sales
force of one selling house compares the pay with that of others in the sales line. If there
is disparity, the morale of salesmen is affected. Handsomely paid, well-treated salesmen

45
 have no scope for grudges or grumbling and as such relations would be sound, with the
utmost harmonized effort.

Elements of a good remuneration plan:

A good remuneration plan should fulfill the following requirements. Fulfillment of these
requirements will make it a sound plan, which will help in developing a loyal sales force.
Loyalty will ensure long service with the firm. Thus, salesmen turnover will be reduced.
1. Adequate salary: Should provide adequate income to maintain a decent standard of
living compared to that enjoyed by others in the same line
2. Simplicity: It should be easily understood by salesmen of average intelligence without
any training in accountancy or statistics. Salesmen are suspicious of any plan that they
do not understand completely and, as such, it weakens the confidence and lowers the
morale.
3. Flexibility: The plan so designed must be capable of being adapted to various selling
conditions. For instance, the firm introducing a new product, commission schemes will
work out more profitable. On the contrary, in the case of a regular product, salary system
can be relied upon. Thus, the variable makes it flexible to ensure satisfactory results.
4. Incentive Oriented: Monetary reward for extra effort is really a nice and wise stimulus
to many of the salesmen who exceed the normal performance level. Such additional
amount results in increased volume of sales. It may be in the form of bonus or
commission. It is to give an impression that the salesmen are compensated for extra
ordinary performance.
5. Low Administration Cost: The cost of administration of the plan, i.e., the need of help
from accountants and clerks, etc. for computing salesmen‘s earnings should be as low as
possible.
6. Fairness: It must be fair to both the firm and salesmen. Also, there should not be any
room for discrimination against or favor for any individual salesman.
7. It Is Prompt in Payment: It is already said that the remuneration should be incentive-
oriented. The incentives that are added must be given to the workers earlier, to have
deep- rooted effects upon the minds of the workers. Many times, bonus earnings are
declared but are held up to a quarter, semi- annual and year end. This delay in paying
weakens the desire on the part of employees. By the time he receives the payment, he

46
 might have lost his interest and enthusiasm. At times, delayed payments of such
incentives will induce labor turnover. Therefore, as soon as entitled and earned, they
must be paid.
8. Promotion: Provisions should be made for increase in salary when a person promotes
and also reward employees for a long service.

References:

 Kotler - Marketing Management – A South Asian Perspective, Pearson, 16th

Edition, 2018
 Etzel, M.J.Bruce,J.W.Stanton – Marketing, Tata McGraw Hill, 14th Edition, 2018
 Francis Cherunilam, Industrial Marketing, Himalaya Publishing House, 2014
 Thomas T.Nagle and Reed K.Holden, The strategy and tactics of pricing, Printice
Hall, 2001

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 QUESTIONS:

S.NO PART – A ( 6 MARKS) CO Level

1. Demonstrate the elements of a promotion mix with suitable example. CO1 L2

2. Illustrate the role of promotion mix in marketing. CO 2 L5

3. Discriminate between advertising and sales promotion. CO 2 L4
4. Evaluate the role of sales promotion in selling a FMCG product CO 2 L3
5. Differentiate between pull and push strategies. CO 3 L4
6. Comments on the benefits of advertising to the customers and companies. CO 3 L4

7. Elucidate on media planning proceedures. CO1 L4

8. Summarize the role of public relations in promoting product and services CO2 L5

9. Design the Qualities of a sales person to sell an insurance product. CO3 L4

10. Explain the pre requisites of a good training scheme. CO1 L4
S.NO PART-B (10 MARKS) CO Level
1. Describe promotion mix. Comment on the factors influencing promotion CO1 L2
mix decisions in a firm.
2. Illustrate the tools of integrated marketing communication IMC. CO2 L4
3. Summarize the functions of advertising. CO2 L4
4. Write detailed notes on indoor advertising and outdoor advertising CO1 L3
5. Write short notes on the Dagmar approach to marketing CO2 L5
6. Illustrate the benefits of advertisement to the various beneficiaries involved CO2 L4
in the buying process.
7. Criticize the procedure in the recruitment of sales force. CO2 L4
8. Describe the methods of training for sales personnel. CO3 L4
9. Examine the prerequisites of good compensation system CO3 L4

10. Design and develop a advertising campaign to promote a coffee shop near a CO1 L6
college.

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