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 Advertising
is a message designed to
promote a product, a service, or an
idea.
 The purpose of advertising is to sell
products or services.
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 “Any
paid form of non personal
presentation and promotion of ideas,
goods, or services by an identified
sponsor.”
 “A marketing communications element
that is persuasive, non-personal, paid
for by an identified sponsor, and
disseminated through mass channels of
communication to promote the
adoption of goods, services, persons, or
ideas.”
 Advertising
reaches people through
various forms of mass communication.
 These media include newspapers,
magazines, television, radio, the Internet,
direct mail, outdoor signs, transit signs,
window displays, point-of-purchase
displays, telephone directories, novelties.
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Television
Magazines
Newspapers
Radio
Outdoor
Transit
Direct Mail
•Builds
awareness of products and
brands
•Creates a brand image
•Provides product and brand
information
•Persuades people
•Provides incentives to take action
•Provides brand reminders
•Reinforces past purchases and brand
experiences
 To
increase support:Advertising increases the morale of
the sales force and of distributors,
wholesalers and retailers.
 To stimulate sales amongst present,
former and future customers. It
involves decision regarding the
media.
 To
retain loyalty:To retain loyalty of present and former
consumers.
 To
protect an image:Advertising is used to promote an
overall image of respect and trust for
an organization.
 To
communicate with consumers.
 ADVETISING
and PROMOTION – ARE
AIMED AT Making potential customers
aware of existence of your business, your
product and services and to encourage
them to buy from you.
 Sales
promotion is any initiative
undertaken by an organization to
promote an increase in sales, usage or
trial of a product or service
 Sales
promotion activities includes –
any initiative undertaken by an
organization to promote an increase in
sales, usage or trial of a product or
service.
 In
other words, Sales Promotion
activities are incentives offered by
manufacturers or dealers to increase
the sale of their goods.
 These
incentives may be in the form
of:
 Free
samples,
 Gifts,
 Discount coupons,
 Demonstrations,
 Shows,
 Contests, etc.
i. To increase sales.
ii. To introduce new products (free
sample distribution).
iii. To attract new customers and retain
the existing ones.
iv. To maintain sales of seasonal
products.
v. To meet the challenge of competition.
 Free
samples: medicines to doctors,
books to teacher etc
 Premium or Bonus offer: buy one get
one, 30% extra, free tooth brush with
paste etc
 Exchange schemes:
 Price-off offer: Under this offer,
products are sold at a price lower than
the original price.
 Coupons:
 Fairs
and Exhibitions:
 Trading
 Scratch
 Money
stamps:
and win offer:
Back offer:
From the point of view of manufacturers:
 Sales
promotion is important for
manufacturers because
 It helps to increase sales in a competitive
market and thus, increases profits;
 It helps to introduce new products in the
market by drawing the attention of
potential customers;
 Contd…..
 when
a new product is introduced or
there is a change of fashion or taste of
consumers, existing stocks can be
quickly disposed off;
 it stabilizes sales volume by keeping
its customers with them
From the point of view of consumers
 The
consumer gets the product at a
cheaper rate;
 It gives financial benefit to the customers
by way of providing prizes and sending
them to visit different places;
 The consumer gets all information about
the quality, features and uses of different
products;
 Contd…
 Certain
schemes like money back
offer creates confidence in the mind of
customers about the quality of goods;
and
 It helps to raise the standard of living
of people. By exchanging their old
items they can use latest items
available in the market. Use of such
goods improves their image in society.
A
buying motive is the reason why the
customer purchases the goods.
 Knowledge
of buying motive of
customers is important for the
producers and suppliers.

Theory in psychology proposed by Abraham Maslow in
his 1943.
According to Malvin S. Hatrick, there
are two motives.
 Primary
buying motives:
Related to the basic needs of human
being.
 Secondary
buying motives:
Are influenced by the society where
he is born and lives.
1. Emotional
a. love and affection
b. Curiosity
c. Fashion
d. Pride and Prestige
e. Fear
2. Rational
a. Economy
b. Utility
c. Comfort and convenience
d. Durability
e. Security
3. Patronage
a. Service Motive
b. Quality
c. Location
d. Store loyalty
e. Friendly behaviour