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BASIC PRINCIPLES OF ADVERTISING AND
SALES PROMOTION
by
Charles Owusu
T937-Copy
ISBN 1.86083 049 8
British Library Cataloguing in Publication Data .
A catalogue record for this book is available from
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© Charles Owusu
Published by First & Best in Education Ltd, 34 Nene Valley Business Park. Oundle, Peterborough. PES 4HL.
BASIC PRINCIPLES OF ADVERTISING AND SALES PROMOTION
(INTRODUCTORY TEXT)
Introduction
Advertising and sales promotion constitute a significant component of the broad
discipline of Marketing, which may be pictured as the bridge between the Producer
and the Consumer or User.
The objective of marketing may be stated as: Getting the right product for the
customer, at the right place, right time and at the right price.
The Marketing Mix
The Marketing Mix refers to the range of activities involved in directing the flow of
goods and services from the Producer to the Consumer or User. These activities have
been conveniently grouped under what is referred to as the Four ‘P's of Marketing.
They are:i.
ii.
iii.
iv.
Product
Price
Place
Promotion
Product:
In Marketing, a product is anything which possesses utility, i.e. anything which satisfies a
need or a want. 'Product' in the marketing mix embraces all activities directed at packaging
goods into convenient and attractive packs or sizes and offering services in an efficient and
user-friendly way.
Price:
Price is the money value of a product. In the marketing mix, 'price' embraces all activities
directed at determining the money value of a product which the market will bear and
which will secure a reasonable level of profit.
Place:
'Place' in the marketing mix involves all the activities necessary to get products where they
are wanted and when they are wanted.
Promotion:
'Promotion' in the marketing mix involves all activities aimed at stimulating demand for a
product. In this text, we shall focus our attention on 'Promotion'.
The Promotional Mix
The range of techniques or strategies which a firm can apply to stimulate demand for its
products is referred to as the Promotional Mix. The Promotional Mix consists of:
I
ii.
iii.
iv.
v.
vi.
Advertising
Sales Promotion Techniques
Personal Selling
Point-of-Sale Promotion
Trade Fairs or Exhibitions
Public Relations
Advertising
Advertising may be defined as any communication about an organisation, a product, a person
or an idea, aimed at a mass audience and which is paid for by a sponsor. From the definition
we can derive the main features of advertising.
*
It is a form of communication
*
It is directed at a mass audience and not at individuals
*
*
It is paid for, i.e. it is not free publicity
*
It is sponsored, i.e. a person or organisation presents the advertising
message and pays for its publication or broadcasting.
The Objects of Advertising
The objects of advertising may be summarised as:a.
To Inform
b.
To Persuade
c.
To Remind
2
a.
To Inform
*
To inform people about a firm's range of products
*
To inform people about the firm itself
*
To inform people about the introduction of a new product
*
To inform people about the characteristics or features of a product
*
To inform people about the uses of a product
*
To inform people about the prices or changes in the prices of a
firm's products
*
To inform people about the stores or shops where they can obtain a
firm's products
To inform people about a special sales effort, e.g. clearance sales.
J.
To Persuade
To persuade people to buy a product or more of a product
To persuade people to change their preferences
To persuade people to change their opinions about a product or the
firm which supplies it
*
To persuade Wholesalers and Retailers to stock a firm's products.
c.
To Remind
*
To remind people about anything that advertising informs them
about.
3
Major Types of Advertising
Primary Demand Advertising
Primary demand advertising is advertising with the objective of stimulating demand for a
product without reference to any particular brand. Such advertising is usually undertaken by
Trade Associations embracing firms in a particular industry.
Selective Demand Advertising
Selective Demand Advertising is advertising with the objective of stimulating demand for a
particular brand of a product.
Consumer Advertising
Consumer Advertising is advertising aimed at the ultimate or final consumer.
Industrial Advertising
Industrial Advertising is advertising aimed at manufacturers, wholesalers, retailers,
schools, hospitals and other institutions.
Product Advertising
Product Advertising is advertising directed towards promoting a positive image of a
product.
Institutional Corporate/Prestige Advertising
This refers to advertising directed towards promoting the reputation or goodwill of an
organisation.
Emotional Appeal Advertising
Emotional Appeal Advertising refers to any advertising which seeks to achieve its
objectives by appealing to the emotions of people, e.g. love, fear, desire for success, etc.
Factual Appeal Advertising
Factual Appeal Advertising refers to any advertising which seeks to achieve its
objective by using objective data, Le. facts and figures.
4
Testimonial Appeal Advertising
L
The Print Media
The Print Media refers to newspapers, magazines and other publications like telephone
directories and year books which are used for the communication of advertising messages.
Since the main channels of communication under the print media are newspapers and
magazines, it is worthwhile identifying the factors which need to be taken into
consideration in deciding on the type of newspaper or magazine to use. They are:-
*
The circulation of the publication, i.e. the average number of copies sold
in a given period
*
The readership, i.e. the number and sort of people who read the
publication
*
The frequency of publication, whether daily, weekly, monthly, etc.
*
The physical characteristics of the publication, e.g. quality of paper
used, quality of pictures and illustrations, the use of colour,
attractiveness of the layout, etc.
*
The cost of placing an advertisement in the publication.
Other Relevant Points to Note about Newspapers & Magazines
Newspapers
There is a wide range of local and national newspapers to choose from. They reach a vast
number of people but have a rather short life. Advertisements in newspapers suffer greatly
from waste circulation, Le. the probability that the reader may not notice or read an
advertisement. However, newspaper advertisements can take advantage of current events
relevant to the product being advertised, e.g. one may use a major sporting event to advertise
sports goods.
Magazines
Magazines tend to have a selective readership and thus may be used to reach particular target
markets. For example, a gardeners' magazine may be used to advertise garden tools.
Magazines tend to lie about in the house or office for a relatively long time and are read by
people during leisure hours. Thus the probability of an advertisement being noticed and read
is greater. The use of quality paper and colour in magazines tends to make advertisements
placed in them appear more attractive. However, it is more expensive to advertise in
magazines than in newspapers and the relatively long interval
7
between publications means that they cannot always carry advertisements which would want
to take advantage of current events.
ii.
The Broadcast Media
The Broadcast Media refers to the use of radio, television, films and videos for the
communication of advertising messages.
With the increase in the number of 'specialised commercial radio stations, radio can be used
to target particular audiences with significant effect. For example, dealers in jazz music can
advertise their products on the radio station targeted largely at jazz music lovers. The listener
can be doing other things while listening to the radio. However, radio messages tend to be
rather short and when listeners are not paying attention they may not achieve their desired
effect.
I
Television
Since television like films and videos combine speed, vision, mobility and sound, it is a very
effective medium for advertising. A product can be shown on the move, all in a split second.
However, television advertising is very expensive and the viewer has to make a deliberate
effort to watch it.
Films and Videos
Advertising messages can be made into films or videos and shown at commercial cinemas.
Where the audience level is high, the advertiser has a good captive audience. Note that a
captive audience refers to any group of people who because of their confinement in a
particular area cannot avoid seeing or reading an advertisement. Films and videos are rather
expensive to make.
iii.
Outdoor Media
The outdoor media refers to the use of hoardings or billboards and tablets as well as the use of
the interior and exterior of different modes of transportation (buses, coaches, vans, taxis,
trains, etc) for .the communication of advertising messages.
Hoardings tend to be located in public places like markets, sports-stadia, transport
terminals, as well as on major transport routes. Advertising messages carried on posters
displayed on hoardings tend to be short as the audience are normally 'on the move', either
on foot or in vehicles or are watching a spectacle, e.g. a football game. However, it is a
relatively cheap medium of advertising. Most hoardings are owned and maintained by
advertising agencies.
8
Ethical Aspects of Advertising (Arguments For and Against Advertising)
Arguments in Favour of Advertising
*
Advertising stimulates demand. The increase in demand for goods and
services as a result of advertising leads to an increase in the production
of goods and services which in turn may lead to an increase in
employment.
*
Increases in the level of production as a result of increases in
demand arising out of advertising enables firms to benefit from
economies of scale. This results in lower cost of production and thus
lower prices for products.
*
Advertising encourages competition. Such competition ensures that firms
produce more efficiently in order to survive. It may also lead
to improvements in the quality of goods and services produced.
*
Advertising encourages the introduction of new and better products
because of the information it provides about new products to stimulate
their demand.
*
Advertising enables people to make informed choices because of the
data it provides about different brands of products.
*
Revenue from advertising is the main source of revenue for the mass
media: newspapers magazines, radios, television. Such revenue helps to
maintain the independence of the mass media which is
necessary for the development of stable democratic structures, essential for
sustained economic development.
*
The advertising industry directly and indirectly offers employment to a
significant number of people in the economy.
ii
.
Arguments Against Advertising
*
Advertising tends to increase the debt problems of society by
encouraging people to buy products they cannot afford.
*
The cost of advertising in some cases is so high that it wipes out
any cost savings arising from economies of scale.
*
The use of the sex appeal in some advertisements tends to be
offensive.
9
*
Advertising which makes misleading claims, induces people to
buy products which are either useless or harmful to their health.
Even though the regulatory authorities may step in to prosecute such advertisers,
some harm may be caused to the general public by the time the misrepresentation
is detected.
Sales Promotion Techniques
The major types of sales promotion techniques are as follows:a.
Free Samples
b.
Coupons
c.
Promotional Vouchers
d.
Trading Stamps
e.
Multi-packs or Banded Packs
f.
Premium Offers
g.
Competitions or Prize Promotions
h.
Loss Leaders
i.
Direct Mail
j.
Product Differentiation
10
a.
Free Samples
Free Samples are small packs of a product given freely to customers of selected retail
outlets or distributed door to door to potential consumers or users. It is a technique used
mainly for the promotion of new products.
b.
Coupons
A coupon is a detachable part of an advertisement in a print media or a detachable part of a
product package which entitles the holder to a price discount on the subsequent purchase of
the product. Coupons are also referred to as off-price slips and are used mainly to promote
brand loyalty.
c.
Promotional Vouchers
A promotional voucher is a slip of paper bearing a stated sum of money which the holder
can use to buy any of the products of a particular firm or to buy products in a particular
store. This technique may be used to promote brand loyalty or to increase store traffic.
d.
Trading Stamps
Trading stamps are small sized slips of paper (usually in the shape of postage stamps) given
by a retailer to customers to encourage them to shop regularly at the store. A stated number
of the stamps collected entitles the customer to a particular gift or a choice of gifts. Trading
stamps are used mainly to increase store traffic.
e.
Multi-Packs or Banded Packs
Multi-packs or banded packs involve the wrapping or binding together of two or more
products. There are two variations of this technique.
i.
Buy Two. Get One Free Type of Offer
This type of multi-pace offer involves the binding together of three similar or identical
products, e.g. soap, toothpaste, or toilet rolls. By paying for the price of two, you get one
free.
ii.
Complementary Products
This type of multi-pack offer involves the binding together of two products which are
usually used together, e.g. writing pad and pen, coffee and coffee whitener, shampoo and
conditioner. The price you pay for the two will be less than the price you will pay if you
were to buy the two products separately.
II
f.
Premium Offers
A premium offer is any product which is offered as a gift or at a
discounted price to induce consumers to buy another product. There
are three main variations o' the premium offer:Outright Gift
The gift offered may take anyone of the following forms:-
*
Items like toys, clothing pegs, face towels, etc. which are
packed with the product being promoted.
The container of the product itself, e.g. storage jars made of
ceramics.
*
An amount of the product in excess of the normal quantity
contained in a package (often used for liquid and powdered products).
*
Proof of Purchase Premium
A proof of purchase premium refers to any gift offered in exchange
for proof of purchase of the product being promoted. The proof of
purchase required might be a label, a cap, a cork or a detachable part
of the package.
A Discounted Price Premium
A discounted price premium is any product which is offered at a
discount, e.g, a cut price holiday, in return for proof of purchase of
the product being promoted.
g.
Competitions or Prize Promotions
A competition or prize promotion refers to the type of sales promotion
technique which combine the exercise of some mental skill, proof of
purchase of a product, and luck, in order to win a prize. The mental skill
aspect of the competition may take various forms:-
*
Slogan Writing
Completion of a Crossword
*
Unscrambling Anagrams
Spotting the Difference in pictures or illustrations
Spotting the location of the ball in a picture depicting a ball game
*
Answering general knowledge questions
Writing an essay
*
Solving a puzzle
Completing a sentence(s)
*
Making a number of words out of a long word
In each case the accepted or correct entries qualify for participation in a
lottery. The holders of the numbers drawn in the lottery are awarded
prizes. Note that the object is to promote the sale of a product and thus
proof of purchase is usually required for entry into the competition.
h.
Loss Leaders
Loss leaders are products which are deliberately priced below cost to
induce people to patronise a particular store. It is hoped that the
increase in store traffic as a result of the attraction caused by the loss
leader would lead to an increase in demand for other products sold at
the store at normal prices.
1.
Direct Mail
Direct mail refers to the use of the postal service and the distribution
service of newspapers for the distribution of promotional items, like
sales letters, leaflets, handbills, catalogues, etc. to potential
customers. Sales promotion by direct mail is cost effective for the
small local firm because the promotional message is targeted at
people living within the locality in which the firm is based.
J.
Product Differentiation
Product differentiation refers to the techniques applied by a firm to
distinguish its range of products from that of other firms. The major
techniques used which are of relevance to sales promotion are:-
*
Trademark
*
Brand Name
*
Packaging
*
Product Design
Trademark: A trademark refers to the name, symbol, emblem or distinctive mark used by a
firm to distinguish its range of products from that of other firms. A trademark can be
registered giving the owner the exclusive use of it. Trademarks of non-commercial
organisations, e.g. a charity, are referred to as their logo. A trademark which stands out can be
an effective promotional tool.
Brand Name: A brand name or trade name or commercial name refers to the name given to a
particular product among the range of products of a firm. A brand name like a trademark can
be registered, and like a trademark a brand name which is catchy can be an effective
promotional tool.
Packaging: Packaging may refer to the wrapping of a product or the putting of a product into
containers: cans, bottles, tubes, boxes, cartons, etc. Attractive packaging coupled with glossy
labelling can promote the sale of a product. But always remember that no amount of glossy
packaging can promote the sale of a shoddy product.
Product Design: Product design refers to the particular structure, size, shape, or style of a
product. The aesthetic features of the design may make a product visually appealing and
induce consumers to buy it.
Some Interesting Developments in Sales Promotion
*
Reciprocal sales arrangements with suppliers. Under this arrangement, a firm
undertakes to purchase products from a particular supplier in return for the supplier
agreeing to buy some of its requirements from the firm.
*
Skywriting of promotional messages using helicopters.
*
The use of airships with promotional messages inscribed on them.
*
Electronic motion display of promotional messages on screens at
major public places like post offices, supermarkets, and transport terminals.
*
Gymnastic displays spelling the name of a firm or a product or
depicting a promotional message.
*
Fireworks displaying a promotional message.
*
Planted flower arrangements on a firm's premises spelling the name of
the firm or a product or depicting a promotional message.
*
Tattooing of promotional messages or inscriptions on the human body!!
14
111.
Personal Selling
Personal selling in the promotional mix refers to the direct contact made with potential
customers either face to face or over the telephone, to persuade them to buy a product. This is
carried out by sales persons. A sales person might be a sales representative of a
manufacturing firm, a telesales person of a newspaper or magazine, a financial adviser of a
financial services firm, a sales negotiator of a real estate agency, or a sales assistant in a shop.
The techniques, practices or skills applied by sales persons in the process of persuading
people to buy a product are referred to as Salesmanship.
a.
The Goals of a Sales Person
The goals of a sales person might be summarised by what is referred to as the A.I.D.A,
concept, Le.
*
Arouse the ATTENTION of the potential customer.
*
Generate the INTEREST of the customer in the product
*
Create a DESIRE for the product in the customer
*
Obtain a definite ACTION from the customer, Le. successfully
persuade the customer to buy the product.
In short, the ultimate goal of a sales person is to convert a potential customer to an
actual customer.
b.
The Functions of a Sales Person
A sales person might perform all or some of the following functions:-
*
Contacting potential customers to persuade them to buy a product
*
Contacting and taking orders from existing customers
*
Delivering products to customers
*
Advising customers on the types of products which will best meet
their needs
*
Explaining or demonstrating the use of a product to a customer
*
Negotiating the terms of a sales contract
*
Completing a sale by collecting payment and issuing a receipt 15
*
Dealing carefully and promptly with customer complaints
*
Building goodwill by making regular calls on existing customers and
helping them deal with any problems arising out of the use of the
product
*
Assisting channel members (wholesalers, retailers, etc.) by
providing them with promotional materials and general advice on
the sale of the product
*
Obtaining marketing information which will enable the supplier of the
product to better satisfy the needs of customers
c.
Forms of Remuneration of Sales Persons
There are three ways in which sales persons can be paid for their services.
Straight Salary: A straight salary is usually offered in the case of full time sales assistants
in shops and stores and sales representatives of firms which sell products in wide demand.
Commission Only: Commission only is the form of remuneration offered to independent
sales persons. The commission is usually a given percentage of sales.
Salary Plus Commission
This is the form of remuneration used by many firms. The salary provides a basic income,
whilst the commission provides the motivation to work hard and earn extra money.
d.
Some Essential Qualities of a Good Sales Person
*
Good Communication Skills
*
Good Human Relations or Inter-Personal Skills
*
Enthusiasm or Zeal
*
Integrity
*
Adequate knowledge of the product(s)
*
Adequate knowledge of major distributors and institutional buyers of the
product(s)
1
6
*
Smart Appearance
*
Good Judgement
*
Initiative
*
Perseverance
Point of Sale Promotion
iv
.
Point of sale promotion in the promotional mix refers to all marketing activities aimed at
promoting the sale of products at the point of sale, i.e. at the store, shop or stall in which the
products are sold. It embraces:a.
Point of Sale Promotional Materials
b.
Store Display
a.
Point of Sale Promotional Materials
Point of Sale Promotional Materials refer to such items as:-
*
Posters displayed outside or inside a shop
*
Cards, stickers and leaflets on the counters and shelves
*
A banner in front of a store conveying a promotional message
*
Dummies for the display of products
*
Videos for product information and demonstrations
b.
Store Display
Store display refers to all activities directed towards making a store and the products sold in
it visually appealing, as well as measures to make the store a comfortable place in which to
shop. It involves the following activities and measures:-
*
The bold and attractive display of the store's name .
*
The bold and attractive display of relevant information, e.g. prices
of items, location of departments/sections, lifts, toilets, etc.
17
*
A layout which ensures the efficient allocation of floor space
among various departments, and the efficient arrangement of
shelves, counters, display racks, cabinets, check out points, etc.
*
The attractive and efficient display of products in window dressing as
well as shelves, racks, ledges, etc.
*
The smart appearance of sales assistants and other store personnel
*
The maintenance of an appropriate thermal environment, i.e.
appropriate conditions of heat and cold
*
The right choice of interior decor, wall paint, wall paper, curtains,
carpeting, etc.
*
A suitable choice of music where relevant.
v,
Trade Fairs or Exhibitors
A Trade Fair or Trade Exhibition refers to the public display of the products of several rims,
either in a particular industry or across a range of industries. The object is to create an
opportunity for participating firms to establish contact with potential customers and receive
sales orders where possible. Trade Fairs may also be used as a venue for disclosing a firm's
plans in terms of new product development. It is worth mentioning that products displayed at
a Trade Fair are usually not for sale.
vi.
Public Relations
Public Relations practitioners deal with the relationship between an organisation and the
various strands of the public. Their goal is to enhance a positive image of the organisation in
the eyes of the public. Major public relations practices which stimulate sales are:-
a.
Sponsorship
b.
Celebrity Appearances
c.
Distribution of Novelty Products
18
a.
Sponsorship
Sponsorship refers to the public relations practice in which a firm fully or jointly bears the
cost of staging an event in return for some promotional benefits. The events commonly
sponsored by firms, area sporting events, arts festivals and musical shows.
The promotional benefits may include:-
*
Publicising the firm's name as sponsor of the event
*
Publicising the firm's name, trademark or promotional message in the publicity
materials of the event: press advertisements, leaflets, programmes, etc. and even
on tickets.
*
Where legal, allowing the firm exclusive selling rights for its
brands of products at the venue of the event.
*
Placing the firm's trademark or promotional message on uniforms and other
items worn by participants and organisers as well as on stationery used by the
organisers and officials.
*
Using some of the firm's products in the award of prizes
*
Including senior or senior personnel of the firm in the team of
award presenters
*
Granting a photo opportunity to a senior personnel of the firm
standing alongside outstanding participants in the event. This is particularly
significant where the photograph would form part of a press coverage of the
event.
A firm may also sponsor an arts organisation, a sports club, or an outstanding sports
person in return for promotional benefits.
b.
Celebrity Appearances
A celebrity appearance refers to the public relations practice in which a famous person, e.g.
the author of a popular book, or the singer of a popular song, is invited to a store to promote
the sale of the product. It usually takes the form of the famous person autographing copies
of the product sold while he or she is in the store. It is hoped that a celebrity appearance
would increase store traffic, so as to boost the sales not only of the product in question but
also of other products.
19
c.
Distribution of Novelty Products
Novelty products include such items as diaries, writing pads, rulers, pens, pencils, calendars,
key-holders, etc. which bear the trademark of a fir, pictures of the firm's products or a
promotional message, and which are distributed freely to regular and potential customers. The
main object is to obtain repeat orders from existing customers and to induce potential
customers to buy the firm's products.
Conclusion
There is a saying that "if a person builds a better mousetrap, the whole world would beat a
path to his door". However, people would beat a path to his door only when:i.
They know that he has built a better mousetrap
ii.
They know the directions to his door.
Advertising and sales promotion seek to achieve those objectives for builders of better
mousetraps and other products.
20
BASIC PRINCIPLES OF ADVERTISING AND SALES PROMOTION
INTRODUCTORY TEXT, REVIEW QUESTIONS AND ANSWERS
(GNVQ - LEVEL III
A. MULTIPLE CHOICE QUESTIONS
1
.
There are __ main techniques or strategies in the Promotional Mix:(a)
4
(b)
5
(c)
2.
Which of these descriptions is not true of
advertising?
(a)
It is a form of communication
(b)
It is a form of promotion
( c)
It is sponsored
(d)
It is free publicity
3.
Which of these statements is not an objective of
advertising?
(a)
To inform
(b)
To entertain
(c)
To persuade
(d)
To remind
4.
There are
advertising:
(a)
2
5
.
6
(d)
7
main channels of communication in the broadcast media of
(b)
3
(c)
A client of an Advertising Agency is referred to as:(a)
A Customer
(b)
An Account
(c)
An Agent
(d)
A Presenter
21
4
(d)
5
6 - 10. Choose from the following list of types of advertising the term which best fits each of the
definitions given over:(a)
(b)
( c)
(d)
(e)
(f)
(g)
(h)
Classified Advertisement
Factual Appeal Advertising
Primary Demand Advertising
Industrial Advertising
Selective Demand Advertising
Display Advertising
Testimonial Appeal Advertising
Institutional Advertising
6
.
Advertising with the objective of stimulating demand for a particular brand of a
product.
7.
Newspaper and Magazine advertisements which cover several columns and may
include a picture or an illustration.
8
.
Advertising with the objective of promoting the reputation or goodwill of an
organisation
9
.
Advertising which seeks to achieve its objective by using objective
data.
10
.
Advertising aimed at manufacturers, wholesalers, retailers, schools and other
institutions.
11
.
'The Circulation' of a Magazine refers to:(a)
(b)
( c)
(d)
12
.
The sort of people who read it
The number of people who read it
The number of copies issued in a given period
The number of copies sold in a given period
'Waste Circulation' in advertising refers to:(a)
The number of copies of a Newspaper unsold
(b)
The number of unsold copies of a Newspaper recycled
(c)
Unnoticed or unread advertisements in a Newspaper
(d)
Advertisements which do not stimulate sales
22
13
.
Which of these is not part of the broadcast media of advertising?
(a)
(b)
(c)
(d)
14
.
Which of these is not a function of a Sales Person?
(a)
(b)
(c)
(d)
15
.
Taking orders from customers
Dealing with customer complaints
Entertaining customers
Negotiating the terms of a sales contract
'Trademarks' are used mainly for:(a)
(b)
(c)
(d)
16 - 20
Radio
Telephone
Television
Film
Product Pricing
Product Packaging
Product Research
Product Differentiation
Choose from the following list of types of sales promotion techniques the term
which best fits each of the definitions given below(a)
(b)
(c)
(d)
(e)
(t)
(g)
(h)
Loss Leader
Premium Offer
Promotional Voucher
Coupon
Trading Stamp
Multi-Packs
Free Samples
Product Differentiation
16.
Any product which is offered as a gift or at a discounted price to induce consumers
to buy another product.
17
.
A product which is deliberately priced below cost to induce people to patronise a
particular store.
18
.
The techniques applied by a firm to distinguish its range of products from that of
other firms.
23
19.
A slip of paper bearing a stated sum of money which a holder can use to buy any of
the products in a particular store.
20
.
Small packs of a product given as gifts to potential consumers to induce them to buy
the product.
21.
The 4 'P's of the Marketing Mix are:(a)
(b)
(c)
(d)
22.
A 'Prize Promotion' is:(a)
(b)
(c)
(d)
23.
Advertising
Personal Selling
Transportation
Trade Fairs
Which of these groups of advertising media combine 'Sound', 'Vision' and 'Movement'
.
(a)
(b)
(c)
(d)
25.
An Advertising Strategy
A Sales Promotion technique
A Pricing Strategy
None of the above
Which of these activities is not part of the Promotional Mix?
(a)
(b)
(c)
(d)
24.
People, Price, Product, Promotion
Promotion, People, Place, Product
Price, Place, Product, People
Product, Place, Promotion, Price
Radio, Television, Film, Video
Television, Film, Video
Television, Film, Radio
Television, Radio
'Advertising copy' refers to:(a)
The text of an advertising message
The illustrations of an advertising message
(b)
The text and illustrations of an advertising message
(c)
The draft copy of the text of an advertisement
(d)
24
26.
An Advertiser may be described as:(a)
(b)
(c)
(d)
27.
A Newspaper or Magazine Proprietor
A Radio or Television Proprietor or
A Cinema Proprietor
A Sponsor of an advertising message
Which of these groups of people do not usually constitute 'a captive audience' in
advertising?
(a)
(b)
(c)
(d)
Spectators at a football match
Passengers in a train
An audience at a cinema
A crowd at a wedding reception
28.
Which of these is not a 'Point of Sale' promotional
material?
(a)
Posters displayed outside or inside a shop
(b)
Posters displayed on major transport routes
(c)
Cards and stickers on shop counters and shelves
(d)
Dummies for the display of products
29.
Which of these items is not part of 'direct mail' sent to potential customers?
(a)
(b)
(c)
(d)
30.
Catalogue
Sales letter
Trade invoice
Leaflet
'Buy Two, Get One Free' type of offer is an example of a:(a)
(b)
(c)
(d)
Premium Offer
Free Sample
Multi-Pack Offer
Promotional Voucher
25
31 - 40 Choose from the following list of basic terms relating to sales promotion and advertising the
term which best matches each of the definitions given over:(a)
(b)
( c)
(d)
(e)
(f)
(g)
(h)
(i)
Promotional Mix
Consumer Advertising
Advertising
Advertising Campaign
Advertising Media
Brand Name
Salesmanship
Sponsorship
Celebrity Appearance
G)
Marketing Mix
(k)
(I)
(m)
(n)
(0)
Novelty Products
Corporate Advertising
Trademark
Trade Fair
Spot Advertising
31.
A co-ordinated and sustained effort aimed at promoting the sale of a product using
different advertising media.
32.
The various channels of communication which may be used to convey an advertising
message.
33.
The name, symbol, emblem or distinctive mark used by a firm to distinguish its range
of products from those of other firms.
34.
The techniques, practices or skills applied by sales persons in the process of
persuading people to buy a product.
35.
The range of activities involved in directing the flow of goods and services from the
producer to the consumer or user.
36.
The name given to a particular product of a firm.
37.
A public display of the products of several firms either in a particular industry or
across a range of industries.
26
38.
The Public Relations practice in which a firm fully or jointly bears the cost of staging
an event in return for some promotional benefits.
39.
Radio and Television advertising in which the advertiser buys several time slots
during which the advertiser's message is transmitted.
40.
Any communication about an organisation, a product, a person or an idea, aimed at a
mass audience and which is paid for by a sponsor.
27
B. 'TRUE' OR 'FALSE' QUESTIONS
INDICATE WHICH OF THESE STATEMENTS ARE TRUE AND WHICH ARE FALSE
1
.
Primary demand advertising stimulates demand for a particular brand of a product.
2.
An alternative term for institutional advertising is prestige advertising.
3.
An advertising agency receives no commission from the media used to convey a
client's message.
4
.
There are 3 main classes of advertising media.
5
.
Newspapers and Magazines are the main channels of communication under the print
media.
6
.
Magazines tend to have a selective readership.
7
.
Magazines unlike Newspapers have a rather short span of life.
8
.
Most hoardings or billboards are owned and maintained by local councils.
9.
Revenue from advertising is the main source of revenue for Newspapers and
Magazines.
10
.
Revenue from the sale of the publications is the main source of revenue for
Newspapers and Magazines
11
.
An alternative name for a coupon is off-price slip
12.
Brand names like Trademarks have to be registered for exclusive use
13
.
'Logo' refers to the trademark of a commercial organisation
28
14
.
A premium offer is any product which is offered as a gift to induce potential
consumers to buy it
15
.
There are 3 main ways in which sales persons can be paid for their services
16
.
Lineage advertising is also referred to as classified advertising
17
.
Lineage advertising is also referred to as spot advertising
18
.
A free sample is a premium offer
19
.
The use of videos in a store for product information and demonstrations is an example
of point-of-sale promotion
20.
Advertising is usually directed at individuals
29
C. SHORT ANSWER QUESTIONS
Briefly state the objective of marketing
Question 1
Answer:
The Objective of marketing may be stated as: Getting the right product for
the customer, at the right place, right time and at the right price.
Question 2
Identify any 3 of the range of techniques in the promotional Mix
Answer:
Any 3 of the following(i)
(i)
(iii)
(iv)
(v)
(vi)
Question 3
Answer:
Question 4
Answer:
Advertising
Sales Promotion Techniques
Personal Selling
Point of Sale Promotion
Trade Fairs or Exhibitions
Public Relations
Identify the 5 main factors which need to be taken into consideration in deciding
on the type of Newspaper or Magazine in which to place an advertisement
(ii)
The circulation of the
publication
The readership of the publication
(iii)
The frequency of publication
(iv)
The physical characteristics of the publication
(v)
The cost of placing an advertisement in the publication
(i)
Identify the 4 main techniques of Product Differentiation which may be used to
promote the sales of a product
(i)
(ii)
(iii)
(iv)
Trademark
Brand Name
Packaging
Product
Design
30
Question 5
Answer
Question 6
Answer:
Question 7
Answer:
Question 8
Answer:
Identify any 3 things that advertising may persuade the public about
Any 3 of the following:(i)
To persuade the public to buy a product
(ii)
To persuade the public to buy more of a product
(iii)
To persuade the public to change their preferences
(iv)
To persuade the public to change their opinions about a
product
(v)
To persuade the public to change their opinions about a firm
What is the significance of advertising to wholesalers and retailers?
Advertising is significant to Wholesalers and Retailers in two main ways:(i)
It informs Wholesalers and Retailers about the sort of
products offered by particular firms.
(ii)
It helps to promote the sales of the products which
Wholesalers and Retailers deal in.
Briefly explain the expression 'Reciprocal Sales Arrangement'
A 'Reciprocal Sales Arrangement' refers to an agreement between a firm and a
supplier under which the firm undertakes to purchase products from the
supplier in return for the supplier buying some of its requirements from the
firm.
Using the 'AID' concept, briefly explain how a sales person converts a potential
customer to an actual customer.
The sales person uses his or her sales talk to arouse the ATTENTION of the
potential customer, to generate the INTEREST of the customer in the product,
to create a DESIRE for the product in the customer and finally to obtain
definite ACTION from the customer, i.e. successfully persuade the customer
to buy the product.
31
Question 9
Answer:
Question 10
Answer:
Question 11
Answer:
Identify the 3 types of Premium Offers
(i)
(ii)
(iii)
Outright Gift
Proof-of-Purchase Premium
Discounted Price Premium
Identify any 5 essential qualities of a Sales Person
Any 5 of the following(i)
Good Communication Skills
(ii)
Good Human Relations or Inter-Personal Skills
(iii)
Enthusiasm or Zeal
(iv)
Integrity
(v)
Adequate knowledge of the product(s)
(vi)
Adequate knowledge of major distributors and institutional
buyers of the product(s)
(vii)
Smart Appearance
(viii)
Good Judgement
(ix)
Initiative
(x)
Perseverance
Define 'Point-of-Sale Promotion'. Give any 3 examples of 'Point-of-Sale' promotional
materials
(a)
Definition: Point-of-Sale Promotion' refers to all marketing activities
aimed at promoting the sale of products at the store, shop or stall in
which the products are sold
(b)
Examples: Any 3 of the following(i)
Posters displayed inside or outside the shop
(ii)
Cards and stickers on the counters and shelves
(iii)
Informational leaflets on counters and shelves
32
(iv)
Banner in front of the store
(v)
Dummies for the display of products
(vi)
Videos for product information and
demonstrations
(vii)
Electronic motion display of promotional messages
inside the shop
Question 12
Identify the 2 main types of advertising which appear in Newspapers and
Magazines
Answer:
(i)
Classified or Lineage Advertising
(ii)
Display Advertising
Question 13
Answer:
Question 14
Answer:
Question 15
Answer:
Identify any 2 types of advertising according to the type of appeal used
Any 2 of the following:(i)
Testimonial Appeal Advertising
(ii)
Factual Appeal Advertising
(iii)
Emotional Appeal Advertising
What is meant by the 'outdoor media of advertising'?
The outdoor media of advertising refers to the use of hoardings or
billboards and tablets as well as the use of the interior and exterior of the
different modes of transportation for the communication of advertising
messages
Briefly state the objects of advertising
The objects of advertising may be stated as:
(i)
(ii)
(iii)
To inform
To persuade
To remind
33
Question 16
Answer:
Question 17
Answer:
Question 18
Answer:
Question 19
Answer:
Identify the 2 main types of Radio and Television advertising
(i)
(ii)
Sponsorship Advertising
Spot Advertising
State briefly any 3 reasons why advertising needs to be regulated
(i)
To guard against misleading claims
(ii)
To guard against the use of pornographic material
(iii)
To ensure healthy competition
Outline the functions of an Advertising Agency.
(i)
Undertake advertising research for clients
(ii)
Advise clients on the most effective type of advertising for
their products
(iii)
Create and design advertising copies for clients
(iv)
Acquire and maintain hoardings or billboards for renting to
clients
(v)
Plan and execute an advertising campaign on behalf of a
client
(vi)
Evaluate the effectiveness of an advertising campaign
Identify the 3 main parties or organisations involved in advertising
(i)
(ii)
(iii)
The Advertiser or Sponsor
The Advertising Agency
The Advertising Media
34
Question 20
Answer:
Identify any 5 of the Sales Promotion techniques
Any 5 of the following:(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
Question
21
Answer
:
Question 22
Answer
:
Question 23
Answer:
Free Samples
Coupons
Promotional Vouchers
Trading Stamps
Multi-packs or banded packs
Premium Offers
Competitions or prize promotions
Loss Leaders
Direct Mail
Product Differentiation
Identify the 3 main Public Relations practices which stimulate demand for a firm's
products
(i)
(ii)
(iii)
Sponsorship
Celebrity Appearances
Novelty Products
What is a 'product' in marketing?
In marketing, a 'product' is anything which possesses utility, i.e. anything
which satisfies a need or a want. Thus both goods and services are
regarded as products in marketing because they satisfy needs and wants.
Identify any 5 innovations in Sales Promotion
Any 5 of the following:(i)
Reciprocal Sales Arrangements
(ii)
Skywriting of promotional messages using
helicopters
(iii)
The use of airships with promotional messages inscribed on
them
(iv)
Electronic motion display of promotional messages on
screens at major public places
(v)
Gymnastic displays spelling the name of a firm or a
product or depicting a promotional message
35
Question 24
Answer:
Question 25
Answer:
(vi)
Fireworks displaying a promotional message
(vii)
Planted flower arrangements on a firm's premises spelling
the name of the firm or a product or depicting a
promotional message
(viii)
Tattooing of promotional messages or inscriptions on the
human body.
Outline any 5 functions of a Sales Person
Any 5 of the following:(i)
Contacting potential customers to persuade them to buy a
product
(ii)
Contacting and taking orders from existing customers
(iii)
Delivering products to customers
(iv)
Advising customers on the types of products which will
best meet their needs
(v)
Explaining or demonstrating the use of a product to a
customer
(vi)
Negotiating the terms of a sales contract
(vii)
Completing a sale by collecting payment and issuing a
receipt
(viii)
Dealing carefully and promptly with customer complaints
(ix)
Building goodwill of existing customers
(x)
Assisting channel members
(xi)
Obtaining marketing information
State any 5 reasons why advertising is significant to the economy
Any 5 of the following reasons:-
36
(i)
The advertising industry directly offers employment to a
significant number of people in the economy
(ii)
Advertising by stimulating demand indirectly creates
employment
(iii)
Advertising by promoting sales and thus production enables
firms to reap the benefits of economies of scale which in turn
leads to affordable prices for products
(iv)
Advertising encourages competition which leads to
improvements in the quality of goods and services produced
in the economy
(v)
By providing an independent source of revenue for the mass
media, advertising assists in the development of a strong
mass media necessary for the maintenance of stable
democratic structures essential for sustained economic
development.
(vi)
Advertising encourages innovation in the economy by
stimulating the introduction of new and better products
37
BASIC PRINCIPLES OF ADVERTISING AND SALES PROMOTION
INTRODUCTORY TEXT, REVIEW QUESTIONS AND ANSWERS
(GNVQ - LEVEL Ill)
A. ANSWERS TQ MULTIPLE CHQICE QUESTIONS
1.
c
11.
d
21.
d
31.
d
2.
d
12.
c
22.
b
32.
e
3.
b
13.
b
23.
c
33.
m
4.
c
14.
c
24.
b
34.
g
5.
b
15.
d
25.
c
35.
J
6.
e
16.
b
26.
d
36.
f
7.
f
17.
a
27.
d
37.
n
8.
h
18.
h
28.
b
38.
h
9.
b
19.
c
29.
c
39.
0
10.
d
20.
g
30.
c
40.
c
B. ANSWERS TO 'TRUE' OR 'FALSE' QUESTIONS
1.
False
6.
True
11.
True
16.
True
2.
True
7.
False
12.
True
17.
False
3.
False
8.
False
13.
False
·18.
False
4.
True
9.
True
14.
False
19.
True
5.
True
10.
False
15.
True
20.
False
38