Advertising and Sales Promotion

Jul 20 • General • 1432 Views • No Comments on Advertising and Sales Promotion

Advertising is the process of promotion of the goods and services or ideas by paying a specific amount to the identified sponsor. Once the manager decide the target market and the needs of the buyer, they can make decision on the following factors:

  • The mission or objective behind the advertisement
  • What should be the budget of the advertisement
  • What message should be delivered
  • Through which media will the advertisement be delivered
  • How would the result of advertisement be evaluated                  Advertising and Sales Promotion

There are different types of advertisements which are :

  • Informative advertisement- these advertisements give some specific information about the product or service being advertised.
  • Persuasive advertisement – this type of advertising persuade the customers to buy a particular product or service.
  • Reminder advertising- Such type of advertisements are used to remind the customers about a particular event or happening.
  • Reinforcement advertising- this type of advertisement are mainly for those products who have been newly modified.

How to set the budget of the advertisement

  1. Budget can be set based on the stages of the product life cycle
  2. Based on the consumer base and share in the market
  3. Based on the budget of the competitor
  4. Number of times the advertisement needs to be showcased
  5. Depending on any available substitute of the product

Steps required to design an effective advertising campaign

Three steps can be followed to design an ad campaign:

  • Generating a message and then evaluating it
  • Development and execution of the ad, which would include television, radio, print, film ads
  • Review on the basis of social responsibility of that ad

What type of media should be selected

The selection of an appropriate media depends on the following variables :

  • Media habit of the target audience
  • Characteristics of the product
  • Characteristics of the message
  • Cost that need to be incurred

Major tools for consumer promotion

  • Free samples of product given to the consumers
  • Coupons on bulk purchases that can be enclosed with the product itself.
  • Refund of cash offers
  • Discounts on bundled products
  • Gifts on every repeat purchases.
  • Consumer loyalty programs
  • Patronage Awards – Values in cash or in other forms that are proportional to patronage of a certain vendor or group of vendors.
  • Trials for free
  • 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.
  • Free home delivery and after sales services.


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