Project Report on Advertising Effectiveness The objectives of all business are to makes profits and a merchandising concern can

do that by increasing its sales at remunerative prices. This is possible, if the product is widely polished to be audience the final consumers, channel members and industrial users and through convincing arguments it is persuaded to buy it. Publicity makes a thing or an idea known to people. It is a general term indicating efforts at mass appeal. As personal stimulation of demand for a product service or business unit by planting commercially significant news about it in a published medium or obtaining favourable presentation of it upon video television or stage that is not paid for by the sponsor. On the other hand, advertising denotes a specific attempt to popularize a specific product or service at a certain cost. It is a method of publicity. It always intentional openly sponsored by the sponsor and involves certain cost and hence is paid for. It is a common form of non- personal communication about an organisation and or its products idea service etc. that is transmitted to a target audiences through a mass medium. In common parlance the term publicity and advertising are used synonymously. What is Advertising : The word advertising is derived from the Latin word viz, "advertero" "ad" meaning towards and "verto" meeting towards and "verto" meaning. "I turn" literally specific thing". Simply stated advertising is the art "says green." Advertising is a general term for and all forms of publicity, from the cry of the street boy selling newspapers to the most celebrate attention attracts device. The object always is to bring to public notice some articles or service, to create a demand to stimulate buying and in general to

bring logethel the man with something to sell and the man who has means or desires to buy". Advertising has been defined by different experts. Some of the quoted definition are : American marketing association has defined advertising as "any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor. The medium used are print broad cast and direct. Stanton deserves that "Advertising consists of all the activities involved in presenting to a group a non- personal, oral or visual openly, sponsored message regarding a product, service, or idea. This message called an advertisement is disseminated through one or more media and is paid for by the identified sponsor. Advertising is any paid form of non personal paid of presentation of ideas goods or services by an identified sponsor. Advertising is a "non- personal paid message of commercial significance about a product, service or company made to a market by an identified sponsor. In developing an advertising programme, one must always start by identifying the market needs and buyer motives and must make five major decisions commonly referred as 5M (mission, money message, media and measurement) of advertising. Basic Features of Advertising On the basis of various definitions it has certain basic features such as : 1. It is a mass non-personal communication. 2. It is a matter of record.

3. It persuades buyers to purchase the goods advertised. 4. It is a mass paid communication. 5. The communication media is diverse such as print (newspapers and magazines) 6. It is also called printed salesmanship because information is spread by means of the written and printed work and pictures so that people may be induced to act upon it. Functions of Advertising For many firms advertising is the dominant element of the promotional mix particulars for those manufacturers who produce convenience goods such as detergent, non prescription drugs, cosmetics, soft drinks and grocery products. Advertising is also used extensively by maters of automobiles, home appliances, etc, to introduce new product and new product features its uses its attributes, pt availability etc.

Advertising can also help to convince potential buyers that a firms product or service is superior to competitors product in make in quality, in price etc. it can create brand image and reduce the likelihood of brand switching even when competitors lower their prices or offer some attractive incentives. Advertising is particularly effective in certain other spheres too such as : i) When consumer awareness of products or service is at a minimum. ii) When sales are increasing for all terms in an industry. iii) When a product is new and incorporates technological advance not strong and.

iv) When primary buying motive exists. It performance the following functions : i) Promotion of sales ii) Introduction of new product awareness. iii) Mass production facilitation iv) Carry out research v) Education of people. TYPES OF ADVERTISING Broadly speaking, advertising may be classified into two categories viz., product and institutional advertising.

a)Product Advertising The main purpose of such advertising is to inform and stimulate the market about the advertisers products of services and to sell these. Thus type of advertising usually promote specific, trended products in such a manner as to make the brands seam more desirable. It is used by business government organization and private non-business organizations to promote the uses features, images and benefits of their services and products. Product advertising is sub-divided into direct action and indirect action advertising, Direct action product advertising wages the buyer to take action at once, ice he seeks a quick response to the advertisement which may be to order the product by mail, or mailing a coupon, or he may promptly purchase in a retail store in response to prince reduction during clearance sale.

Product advertising is sub-divided into direct & indirect action advertising & product advertising aims at informing persons about what a products is what it does, how it is used and where it can be purchased. On the other hand selective advertising is made to meet the selective demand for a particular brand or type is product. b)Institutional Advertising : It is designed to create a proper attitude towards the sellers to build company image or goodwill rather than to sell specific product or service. Its purpose is to create a frame of mind and to implant feeling favourable to the advertisers company. Its assignment is to make friends for the institution or organization. It is sub-divided into three categories : patronage, public, relations and public service institutional advertising. i) In patronage institutional advertising the manufacturer tells his prospects and customer about himself his policies and lives personnel. The appeals to the patronage motivation of buyers. If successful, he convince buyers that his operation entitles him to the money spent by them. ii) Public relations institutional advertising is used to create a favourable image of the firm among employees, stock-holders or the general public. iii) Public service institutional advertising wages public support. c)Other Types : The other types are as follows : i) Consumer advertising ii) Comparative advertising

iii) Reminder advertising iv) Reinforcement advertising ADVERTISING OBJECTIVES The long term objectives of advertising are broad and general, and concern the contribution advertising should make to the achievement of overall company objectives. Most companies regard advertisingly main objective as hat of proving support to personal selling and other forms of promotion. But advertising is a highly versatile communications tools and may therefore by used for achieving various short and long term objectives. Among these objectives are the following : 1. To do the entire selling job (as in mail order marketing). 2. To introduce a new product (by building brand awareness among potential buyers). 3. To force middlemen to handle the product (pull strategy). 4. To build brand preference 9by making it more difficult for middleman to sell substitutes). 5. To remind users to buy the product (retentive strategy). 6. To publicize some change in marketing strategy (e.g., a price change, a new model or an improvement in the product). 7. To provide rationalization (i.e. Socially acceptable excuses). 8. To combat or neutralize competitors advertising. 9. To improve the moral of dealers and/or sales people (by showing that the company is doing its share of promotion).

10. To acquaint buyers and prospects with the new uses of the product (to extend the PLC). BENEFITS The functions of advertisement, and that purpose its ethics, may be discussion below : 1. It leads to cheaper prices. "No advertiser could live in the highly competitive arena of modern business if his methods of selling were more costly than those of his rivals." 2. It acquaints the public with the features of the goods and advantages which buyers will enjoy. 3. It increases demand for commodities and this results in increased production. Advertising : a) Creates and stimulates demand opens and expands the markets; b) Creates goodwill which loads to an increase in sales volume; c) Reduces marketing costs, particularly product selling costs. d) Satisfied consumer demands by placing in the market what he needs. 4. It reduces distribution expenses in as much as it plays the part of thousands of salesman at a home. Information on a mass scale relieves the necessity of expenditure on sales promotion staff, and quicker and wider distribution leads to diminishing of the distribution costs.

5. It ensures the consumers better quality of goods. A good name is the breath of the life to an advertiser. 6. By paying the way for large scale production and increased industrialization, advertising contributes its quota to the profit of the companies the prosperity of the shareholder the uplifts of the wage earners and the solution of he unemployment problem. 7. It raises the standard of living of the general public by impelling it to use to articles of modern types which may add to his material well being. "Modern advertising has made the luxuries of yesterday the necessities of today ..................... It is a positive creative force in business. It makes two blades of grass grow in the business world where one grew before. 8. It establishes the goodwill of the concern for the test articles produced by it and in course of time they sell like not cakes consumer search for satisfaction of their needs when they purchase goods what they want from its beauty, superiority, economy, comfort, approval, popularity, power, safety, convenience, sexual gratification and so on. The manufactures therefore tries to improve this goodwill and reputation by knowing the buyer behaviour. To sum up it may be said that advertising aims at committing the producers, educating the consumer, supplementing the salesman converting the producer and the dealer to eliminate the competitor, but above all it is a link between the produce and the consumer. WHY & WHEN TO ADVERTISE Advertising as a tool to marketing not only reaches those who buy , but also those whose opinions or authority is counted for example a manufacturer of marble tiles and

building boards advertises not only to people who intend to build houses but also to architect and engineers. While the manufacturers of pharmaceuticals products advertise to doctors as well as to the general public. At time it is necessary for a manufacturer or a concern to advertise things which it does not sell but which when sold stimulates the sales of its own product. There are concerns like electric heaters, iron etc. because the use of these increases the demand for their products. Advertising should be used only when it promises to bring good result more economically and efficiently as compared to other means of selling. There are goods for which much time and efforts are required in creating a demand by sending salesman to prospective buyers than by simply advertising them. In the early days of the cash register in America it was sold by specially trained salesman who called on the prospective users and had the difficult task of convincing them that they could no longer carry on with the old methods, and that they urgently needed a cash register. In our country certain publishers have found it less costly to sell their books by sending salesman from house to house among prospective buyers than to advertise them. In these two examples the cost of creating demand would be too high if attempted by advertising alone under such circumstances advertising is used to make the salesman acceptable to the people they call upon to increase the confidence of the public in the house. Naturals when there are good profits competitors will be attracted and they should be kicked out as and when sufficient capital is available by advertising on a large scale. Immediate result may not justify the increased expenditure but it will no doubt secure future sales. DESIGNING ADVERTISING CAMPAIGN : An advertising is an organized series of advertising messages. It has been defined as "a planned, co-ordinate series of promotional efforts built around a central theme and designed to reach a specified goals." In other words, it is an orderly planned effort

consisting of related but self contained and independent advertisements. The campaign may appear in one more media . it has single theme or keynote idea and a single objective or goal. Thus, "a unified theme of content provides psychological continuity throughout the campaign while visual and oral similarity provide physical continuity. In short run, all campaign want pre-determined psychological reaction in the long run, practically all campaigns have sales goal. The series of advertisements used in the campaign must be integrated with the sales promotional efforts and with the activities of the sales force. Campaign vary in length some may run only for a few days, other for weeks, yet other for a season or the entire year. Usually a range of 3 to 6 months includes many campaigns. Many factors influences campaign length such as competitors advertising media, policies, seasonal falls curves of the product involved, the size of the advertising funds, campaign objectives and the nature of the advertisers marketing programme. OBJECTIVES OF CAMPAIGN The advertising campaign, especially those connected with the consumers aims at achieving these objectives : i) To announce a new product or improve product. ii) To hold consumers patronage against intensified campaign use. iii) To inform consumers about a new product use. iv) To teach consumers how to use product. v) To promote a contest or a premium offer.

vi) To establish a new trade regional, and vii) To help solve a coca regional problem.

The institutional advertising campaign on the other hand, have these objectives. i) To create a corporate personality or image. ii) To build a company prestige. iii) To keep the company name before the public. iv) To emphasize company services and facilities. v) To enable company salesman to see top executive consistently when making sales calls, and vi) To increase friendliness and goodwill towards the company. Developing the campaign programmes. The advertising campaigns are prepared by the advertising agencies, which work an behalf of their clients who manufacture product or service enterprises, which have services to sell. The word campaign is used because advertising agencies approach their task with a sum Blanca of military fanfare in which one frequently hears words like target audience logistics, zero in and tactics and strategy etc. The account executive co-ordinates the work in a campaign. The creation of an advertising campaign starts with an exploration of consumers habits and psychology in relation to the product. This requires the services of statistical trained in survey techniques and of others trained in social psychology. Statisticians select samples for survey which are done by trained interviewers who visits individuals, included in the sample and ask question to find out about their taste and habits.

This enquiry often leads to a change in a familiar product. For instance bathing soap may come in several new colours or cigarette in a new packet or talcum powder in another size. Such interviews are often quite essential to find out the appeal of advertising message for a product that would be most effective with consumers. David Ogilvy describes a consumers survey to find out the most meaningful benefit in which women are interested when they buy a face cream. The largest preference as given to "Cleans deep into pores" followed in order of importance by prevent dryness, "is a complete beauty treatment, recommended by skin doctors" makes skin look younger' contains estrogenic hormones, pasteurized for purity, prevent skin form aging, smooth our wrinkles ogilvy concludes, form this voting come one of Helena Rubinstein's most successful face creams. We christened it deep cleanser, thus, building the winning form into name of the product. After getting the data the account executive puts together the essential elements of his clients brief, interprets the research findings and draws up what he calls the "advertising strategy". STAGE IN ADVERTISING CAMPAIGN Several steps are required to developed an advertising campaign the number of stages and exact order in which they are carried out may vary according to an organisations resources, the nature of its product and the types of audiences to be reached. The major stages/step are : 1. Identifying and analyzing the advertising. 2. Defining advertising objects.

3. Creating the advertising platform. 4. Determining the advertising appropriation. 5. Selection media plan. 6. Creating the advertising message. 7. Evaluating the effectiveness of advertising. 8. Organizing of advertising campaign.

1.Identifying & Analyzing the Advertising target : Under this step it is to decided as to whom is the firm trying to reach with the message. The advertising target is the group of people towards which advertisements are aimed at four this purpose complete information about the market target i.e. the location and geographical location of the people, the distribution of age, income, sex, educational level, and consumers attitudes regarding purchase and use both of the advertising product and competing products is needed with better knowledge of market target, effective advertising campaign can be developed on the other hand, if the advertising target is not properly identified and analyzed the campaign is does likely to be effective. 2.Determining the advertising objectives : The objectives of advertisement must be specifically and clearly defined in measurable terms such as "to communicate specific qualities about a particulars product to gain a certain degree of penetration in a definite audience of a given size during a given period of time", increase sales by a certain percentage or increase the firms market shares."

The goals of advertising may be to : i) Create a favourable company image by acquainting the public with the services offered available to the employees and its achievements. ii) Create consumers or distributor awareness by encouraging requests providing information about the types of products sold; providing information about the benefits to be gained from use of the company's products or services; and indicating how product (or services) can be used; iii) Encourage immediate sales by encouraging potential purchasers through special sales contests, getting recommendation of professional people about company's products etc. iv) It secures action by the reader through associating ideas, repetition of the same name in different contexts, immediate action appeal. 3.Creating the Advertising platform : An advertising platform consists of the basic issues or selling points that an advertiser wishes to include in the advertising campaign. A single advertisement in an advertising campaign may contain one or more issues in the platform. A motorcycle producers advertising platform should contain issues which are of importance to consumers filling and such issues also be those which the competitive product do not posses. 4. Determining the Advertising Appropriation: The advertising appropriation is the total amount of money which marketer allocates. For advertising for a specific time period. Determining the campaign budget

involves estimating now much it will cost to achieve the campaigns objectives. If the campaign objectives are profit relating and stated quantitatively, then the amount of the campaign budget is determined by estimating the proposed campaigns effectiveness in attaining them. If campaigns object is to build a particular type of company image, then there is little basis for predicting either the campaigns effectiveness or determining the budget required. 5.Selecting the Media : Media selection is an important since it costs time space and money various factors influence this selection, the most fundamental being the nature of the target market segment, the type of the product and the cost involved. The distinctive characteristics of various media are also important. Therefore management should focus its attention on media compatibility with advertising objectives. Media 1. i) Press Advertising or Print Newspapers City, Small town, Sundays, Daily, weekly, Fortnightly, and Form

quarterlies,

financial

annuals, English, vernacular or regional languages. ii) Magazines General or special, illustrated or otherwise, English, Hindi, Regional language. iii) Trade & Technical Journals, Industrial Circulated all over the country year books, commercial, directories, and among the industrialist telephone, Directories, references and business magnates.

books & annuals. 2. Direct Mail Circulars, catalogues, leaflets, brochures, booklets, folders, colanders, blotters, diaries & other printed material. 3. Outdoor or Traffic Poster and bills on walls, railways stations platforms

outside public buildings trains, buses. 4. Broadcast or radio and T.V. Spot, Sectional or national trade cost 5. Publicity Movie Slides and films non theatrical and documentary

films metal plates and signs attaches to trees. 6. House to house Sampling , couponing, free gifts, rations. 7. Dealer aids Counter and widows display demonstration given by retailer or the advertises goods. 8. Internet Today, Internet is a big spot for advertising. novelties, demonst-

So these are the media of the advertising campaign of the selecting of the media. 6.Creating the Advertising Messages :

This is an important stage of advertising campaign. The contents of the message has to be very carefully drafted in the advertisement. Characteristics of person in the advertising target influence the message content and form. An advertisers must use words, symbols and illustration that are meaningful, familiar and attractive to those persons. The type of media also influence the content and form of the message. 7.Evaluating the Effectiveness of Advertising : The effectiveness of advertising is measured for a variety of reasons : a) To determine whether a campaign accomplished its advertising objects. b) To evaluate the relative effectiveness of several advertisements to ascertain which copy, illustrations or layout is best. c) To determine the strengths and weaknesses of various media and media plans. In other words, measuring advertising effectiveness is needed to determine whether proposed advertisement should be used and if they will be now they might be improved; and whether going campaign should be stopped, continued or changed. In accomplishing these purposes, pretests and post test are conducted. The former tests before exposing target consumers to advertisements and the letter after consumers have been exposed to advertisements and the letter after consumers have been exposed to advertisements. For an effective advertising programme, the advertising manager requires a basic understanding of the medium that is going to carry it.

For effectively using advertising the management must test advertising to know which of the advertisement to know which of the advertisement have proved profitable and why as compared to others.

Sales Promotion Schemes Project Report MBA topic 2

One of the most difficult marketing decisions facing companies is how much to spend on promotional John Wanamaker, the departmental - store magazine, said, "I know that half of my advertising is wasted but I don't know which half." Thus it is not surprising that industries and companies vary considerably in how much they spend on promotion. Promotional expenditures might amount to 30-50% of sales in case in cosmetics industry and only 10-20% in the industrial equipment industry. Within a industry, a low and high spending companies can be found. How do companies decide on their promotion budget? There are mainly four methods of sales promotion : Affordable Method : Many companies set the promotion budget at what they think the company can afford. One executive explained this method as follows : "Why, its simple. First I go upstairs to the controller and how much they can afford to give us this year. He says a million and half. Later, the boss comes to me and asks how much
Advertising Effectiveness Project Report Internal Customer Satisfaction Project Report

we should spend and I say Oh about a million and half." It is a method which is uncertain one and makes long term planning difficult. Percentage of Sales Method : Many companies set their promotion expenditures at a specified percentage of sales. Accordingly the sales is set on the basis of sales. In this a specified sales percentage is decided for the promotional budget Advantages of this method : First, its use means that promotional budget vary with what a company can afford. Second, it encourages the management to think in terms of the relationship among promotion costs, selling price, and profit per unit, Third, it encourages the competitive stability to the extent that competing firms spend approximately the same % of their sales on promotion. Inspite of the advantages, the % sales method has little to justify it. Its reasoning is circular : It views sales as the determiner of the promotion rather than as a result. It leads to budget setting by availability of funds rather than by marketing opportunities. Competitive Parity Method :

Some companies set their promotional budget to achieve share-of-voice parity with other competitors. Two arguments are made in support of competitive parity method. One is that the competitors expenditure represents the collective wisdom of the industry. The other is that maintaining a competitive parity helps prevent promotional wars. Neither argument is valid. There are no grounds for believing that competition knows better what should be spent on promotion. Objective and Task Method : The objective & task method calls upon marketers to develop their promotion budgets by defining their specific objectives, determining the task that must be performed to achieve these objectives, and estimating the cost of performing these tasks. Deciding on the promotion mix : Companies face the task of distributing the total promotion budget over the five promotional tools : Advertising Sales Promotion Public Relations and Publicity Sales Force Direct Marketing. Whatever method a company adopt for promoting its product it must be from above mentioned method.

What is Sales Promotion ?

Promotion is the final element in the marketing mix. After the nature of product is decided, its price fixed and the methods of distribution decided, the manufactures has to take effective steps in meeting the consumers in the markets. In the present consumer oriented markets it is the duty of manufacturers to know what is required by the consumer. It is also their duty to make the customers know where, when how and at what prices. The products would be available.

Meaning of Promotion

The term promotion is the term and includes mainly three type of sales activity : 1. Mass impersonal selling methods (Advertising). 2. Face to face personal selling (Salesman ship). 3. Activities other than personal selling and advertising such as point of purchase display (P.O.P.) show and exhibitions, demonstrations and other non securing selling efforts. This form of activity is called Sales Promotion. There are two type of promotion blends :1. Pull Blend. 2. Push Blend. Both of these are closely related to the channel of Distribution. 1. A pull blend is one in which mass impersonal, sales efforts are given the greatest emphasis. The purpose of pull blend to pre-sell to the final consumers. So that they demand the product at the retail level of distribution. The firm adopting this strategy

would spend more on advertising and sales promotion rather than in personal selling. These efforts pull down the product from the manufacturer. 2. A push blend emphasizes personal selling. Naturally firms adopting this method develop a strong sales force at both the distributor and the dealer level. This method would tends to push the product through the channel of distribution.

Promotion and Selling

The term promotion is very often used as a synonym for selling. But selling is a narrow term which includes only transfer of title or personal selling. Promotion on the other hand is broader in its outlook and includes a variety of activities used ultimately for increasing sales volume.

Promotion and Sales Promotion

Similarly the terms sales promotion can not be taken to mean what is commonly does. Sales promotion, is only a part of the promotion. Basically promotion is an "exercise" in information persecution and influence. Promotion has come to mean the over all co-ordination of advertising selling, publicity and public relations. Promotion is a helping function designed to make all other marketing activities more effective and efficient. But sales promotion as such helps only the selling activity still, there exit same difference of opinion on the real connection of the term sales promotion.

Acc. to A.H.R. Delons :"Sales promotion means any step that are taken for the purpose of obtaining or increasing sales".

Acc. to W.Q. Kelly Opines :"Muddled misused misunderstood that is sales promotion Acc. to him the field of sales promotion as a marketing activity is still vaguely defined and organized.

Sales Promotion and Advertising

There is no universally accepted distribution between these two terms. To same advertising includes all forms of mass media communication directed towards influencing the end consumer. Sales promotion on the other hand, includes the form of mass communication directed towards information and influencing the channel of distribution (e.g. distributors, retailers etc.). Hence a price of product literature distributed by retailers in sales promotion. These sales promotion merges on one side in to advertising and on the other in to personal salesman ship. It is concerned with the dissemination of information to whole salers, retailers, customers (both actual and potential, and to the salesman). Sales promotion is concerned with the creation. Application and dissemination of material and techniques that supplement advertising and personal selling. Sales promotion makes use of direct mail, catalogues, trade shows, sales contests, premiums, samples, windows displays and other aids. Its purpose is to increase the desire of salesman, distributors and dealers to sell a certain brand to make consumers more eager to buy that brand. Personal selling and advertising do include prospects to make these decisions. Sale promotion provides an extra stimulus.

Objective of Sales Promotion

1. To increase sales directly by publicity through media which are complementary to press and poster advertising. 2. To disseminate information through sales man dealers etc. So as to insure the product getting in to satisfactory use by the ultimate consumer. 3. To attract new consumer.

4. To face the competition effectively. 5. To help salesman in selling more to the retailers and consumers. 6. To check seasonal decline in sales. Generally speaking sales promotion involves rendering the following services:(a) Services to dealers. (b) Services to own salesman. (c) Special publicity.

Sales Promotional at different levels 1. Sales promotion at Dealers Level :It may include various schemes some of which are discussed here. (i) Advertising Materials :The advertising material prepared by the company such as store signs, banners, shelf signs, board etc. are distributed to sub dealer for display purposes this is in fact a method of advertising. (ii) Store Demonstration :In the promises of the whole saler or the retailer the products sales personnel will conduct special demonstration for the companies product. A personal demonstration is good to introduce a new product at its peculiar advantage can be high lightened and the consumers doubt clear. It can be used to restimulate an old product. A good demonstration with a great dealer of action will draw heavy crowds in to the store and will attract attention to the product. (iii) Special Display and Shows :-

These are in seasonal in character but could be arranged in an elaborate manner and for all the products of an company. Usually these are arranged along with trade fair and exhibition. Besides effecting sales these shows impress the companys name generally on the public.

Sales promotion at consumers level The various schemes of sale promotion at Consumers Level may include. 1. Coupons (A Chit of Stated Value) :These are given directly to the consumer these coupons are in most cases kept inside the package. The consumers many receive a price reduction of the stated values of the coupon at the time of purchase. The retailer receives reimbursement for the value of the coupon form the manufacturer. Coupons act as a short run stimulus to the sale of the product, since they are directly tied with the purchase of the item. They encourage the retailer to stock the product. What is important is that a coupon offer does not spoil the named price of the brand nor does it un pair the margin of the dealers. But it is not easy to measure the effectiveness of a coupon offer. One over knows how many customer would have bought the product without the incentive. It is also difficult to find out how many customers were held after the coupon offer expired. 2. Price-off-offer (Also known as bargain offer price packs) :This offer is intended to stimulate the sales during a slump season. In this method the customer is offered a reduction from the printed price list. It is also used when a substitute for competing product enters the market. Many experts on sales promotion fed that Off Schemes are among the weaker and less desirable methods of promotion. These can be trade resentment particularly when

the retailer raises the price to retain his margin. Secondly that is not conductive to building up brand loyalty. Consumers may simply shift to the products that offer this scheme. 3. Samples :In the hope of converting a prospect into a customer a sample (Some quantity of the product) may be given. This helps the consumer to verify the real quality of the product. Various pair manufacturing companies offer this method. For developing brand loyalty this method is quite useful. Sampling is a fast method of demand creation because one knows the result as soon as the consumer has had time to use the sample and buy the brand. Disadvantage of Sampler :Offering sample in quit expensive. There is the cost of producing samples. The distribution costs are also high. Sample have to be mailed to potential customers or to be distributed through retail shops. There are also problems when the real product does not resemble the sample supplied. 4. Money Refund Offer :An offer usually stated on the package is that manufacturers will return with in a stated period part or all of the purchasers money if he is not completely satisfied with the product. 5. Trading Stamps :A premium in the form of stamps is given by the sellers to consumers while selling goods. The number and value of stamp that the buyer receives depends on the values

of the purchase. These stamps are redeemable through premium catalogues at the stamp redemption centres. 6. Buy-Back Allowance : This an allowance following a previous trade deal not offer a certain amount of money for new purchases based on the quantity of purchases on the first trade deal. It extends the life of a trade deal and helps to prevent part deal sales decline. It greatly strengthens the buyers motivation to co-operate on the first deal. 7. Premium :There are various forms of premiums provided by the manufacturer as sales promotional devices :(a) Coupons are supplied for effecting price reductions. (b) Factory in pack premium these are popular in the case of Body food and Tin food items, Spoons, Cups, Measuring, Glass etc. and such other items are packed with the product in the box itself. Factory in pack premium are particularly goods for product meant for children. The Binaca Toothpaste packs contain animal shape toys. These are very attractive and qutie popular among the children. (c) Self Liquidating Premiums :The cost of the premium is collected from the buyer himself. But when the buyers pays for it he has to pay only a considerably low price for the premium. This is possible for the manufacturer purchases the items in bulk at a premium and his cost per unit as is substantially low.

Other Steps by Manufacturer for Promoting Sales Dealers can be helps in different ways :1. Communicating Market News :Often this service is reciprocal the manufacturer may acquaint his dealer with the fact relating to his production and prices while the dealer may familiarize him in return with the information bearing on charges in the consumer's demand, their like and dislike complaints and criticism, substitutes etc. 2. Inviting to Sales Conference and Convention :The gestures of regard and respect pave the way for better relation and co-operation. 3. Offering Reasonable Terms of Sale :Of all the forms of encouragement, the monetary incentive evokes immediate response. Hence every producer must offer the most responsible terms of sale such as longer periods of credit and higher rates of descants. 4. Supplying suitable packages and useful things. 5. By taking the return back. 6. By furnishing them with sales literature and display materials.

Aggressive Selling Meaning :-

Goods are produced for market. Manufacturers have to make efforts to sell all they produce. When the manufacturers uses various sales efforts to obtain increased sales volume for his product it is called aggressive selling or offensive selling. The sales efforts which a manufacturer makes to retain his customers i.e. to protect his already established market against against his competitors is termed as defensive selling. In contrast to this aggressive selling is concerned with the sales efforts made with the express objective of selling more by expanding the market for the product of the selling firm. Aggressive Selling and Defensive Selling :Aggressive selling is based on the answer to the question how much does the firm gain (in term of sales with profit) by using this method defensive selling is based on consideration as to how much the firm will lose if it does not use this method increase of sales can be obtained from two sources:1. New customers if the market is expending. 2. From the competitors i.e. those consumers who were purchasing similar product of competiting firms, if the market for the product is static. Acc. to H. Whitehead :"In case of an expanding market all the firm may stand to gain by following the methods of aggressive selling but if the market is static manufacturer of a new market will have to be much more aggressive to capture the established market of competitors". When Aggressive selling is resorted ? Usually manufacturer of a new product has to do aggressive selling :-

1. When the product has been improved. 2. When the manufacturers product is supervisor in quality to the product of the established competitor. 3. When the total market for the product or line of product to expanding. 4. If the manufacturers share of the market is comparatively small. 5. If the manufacturer has unused production capacity with heavy investment in plant and equipment he will like to develop the demand for his product rapidly so that demand for his product is equal to the optimum production capacity of his plant ; and 6. When primary demand for a product must be created and provision must be made in the channel of distribution to educate consumers regarding the new product and to instruct them in its use. Method of Aggressive Selling :Sales promotion efforts use for aggressive selling may be divided in two classes. 1. Trade Promotion. 2. Consumer Promotion. 1. Trade Promotion :Under trade promotion methods special incentives are offered to the trader to buy products of the firm. Such incentive may take one or more of the following firm :(a) Cash Allowance :-

A definite percentage of discount is allowed on the purchase of given unit of a product. (b) Extra Product :Instead of giving any cash allowance extra product is given with each unit of product ordered. For instance if a box normally contains 20 Cakes of Soap, special box contains 25 cakes may be made and sold at the same price as that of the box of 20 cakes. (c) Gifts :Various gifts are awarded in return for an order of a particular magnitude.

2. Consumer Promotion :Under consumer promotion method special incentives are offered to the consumers to buy the firms product. The more prominent amongst such incentives are as following. (a) Coupons :A coupon of a giving value is sent to the consumer. By presenting this coupon to the retailer consumers can purchase a particular product mentioned on the coupon at a reduced price. The retailer sells the products mentioned. In the coupon to such consumer (consumers presenting the coupons) under and agreement with the manufacturer at a price lower than the user retail price. Thus the consumer get the benefit of reduced price to the extent of the value of the coupons. (b) Self Liquidating Offers :-

Under this system, the firm offers an article at an attracting price if the consumer send a given sum of money accompanied by a given number of box tops from the packages of a particular product the benefit to the consumer is that he receives the articles at a bargain price. (c) Bargain Packs :Under this system a product is sold at a reduced price for a short period Bargain pack method encourages new consumers to try the product. It is also helpful in obtaining large displays in the shops. (d) Sampling :The method involves giving the product or a small quantity of the product to a consumer free with the hope that the customer will be favourable impressed with its actual use and will eventually become a regular purchaser of the product. A firm selling new product or an extensively improved product finds this methods useful. Also a firm whose market is hold by competitors whose free sampling almost expensive. The above mentioned methods may be reinforced by adopting. (i) Direct method of selling through. (ii) Offer of door to door selling. (iii) Hire purchase and installment payment methods of selling and by forming combination. Other Methods of Aggressive Selling:-

(i) Employment of Missionary Salesman also known as Promotional Salesman. These salesman call upon retailers and aggressively promote a product. (ii) Instead of using wholesalers, the firm may develop its own sales force to call directly on retailers. (iii) The firm may follow a compromise method by employing a manufacturers agent and giving him a large enough commission to encourage him to sell product intensively and aggressively. (iv) New territory exploitation sales promotion has a particularly important role in developing the companys product in new territories. (v) Increment and promotions. (vi) Letters to dealer and Customer. In fact, an ingenious sales manager can devise any number of incentives schemes for promoting the sales volume.

Project Report on Internal Customer Satisfaction

INTRODUCTION Customer is the king, this is all the more apt for today's business environment where, all other factors remaining more or less constant, it is the value addition to the customer that is making all the difference. Customer satisfaction depends on the performance relative to a expectations. A key premise in customer satisfaction is understanding the needs and meeting or exceeding the expectations of customers. Further more, this is done while optimally using resources. While most companies have developed strategies to improve quality and external customer service, internal customer satisfaction is a much neglected component of quality improvement. To this end, it is important to emphasize that total customer satisfaction can be attained only if all employees devoted to external customer satisfaction can work together and assist each other to achieve the common objective, when the internal customer isn't satisfied, Relationships with the external customer suffer. So, it is suggested to adopt customer oriented approach to keep the internal customer satisfied and motivated, who in turn will focus their attention and energy upon meeting the requirements of their customers, thereby maximizing the customer, thereby maximizing the customer satisfaction. Customer satisfaction survey is the process to monitor the satisfaction quotient of their people. In internal satisfaction surveys therefore tracks the return on your investments in keeping your people happy, high salaries, a quality culture, a healthy work environment.

Last, but not the least internal customer satisfaction survey helps in finding the critical areas, which need further improvement. NEED OF INTERNAL CUSTOMER SATISFACTION SURVEY ARISES DUE TO FOLLOWING REASONS. Rapidly growing organization. High or growing turnover rate. Excessive rumor's Highly competitive industry. Planned and recent organizational changes.

BENEFITS OF A INTERNAL CUSTOMER SATISFACTION SURVEY It creates better teamwork and much improved work process. It leads to higher output and superior quality product. It decreases the turnover.

Reduced overheads, and increase customer satisfaction level's inter departmental.

It enhance communication and hence helped in team building, hence there is less wasted effort caused by lack of common purpose and poor communication.

A good employee feedback survey improves employee attitude and boosts morals.

INTERNAL CUSTOMER-SUPPLIER RELATIONSHIP In an organization, from procuring an order to delivering the final product, a series of activities takes place. There are different deptts. To which these activities are assigned eg. Raw material for production is purchased by one deptt. And supplied to other deptt. Where the production initiates. Thus every deptt. play an important role of a customer and supplier as well. The importance of a customer is well known from the maxim, Customer is the king. Earlier, organizational administrators concentrated only on the satisfaction of external customers i.e. the target market. But now it is being realized that if the internal customer is satisfied the quality as well as the quantity is also appreciable. Higher the customer satisfaction index, higher will be the quality of the production.

This results in the satisfaction of external customers and ultimately brings profits & prosperity to the organization. It can benefit the organization in following ways:1) 2) 3) 4) 5) 6) There will be less employee turnover. Optimum utilization of available resources will take place. High job satisfaction and feeling of belongingness in employees. Qualitative product. Least conflicts in the departments. Good reputation in the market and many more benefits can be accrued.

Thus, every deptt. should ensure that the customer deptt. is satisfied with the product and services provided by it as it will result into an overall improvement of the organization.

To serve a final customer first of all a company has to satisfy his employees. If employees are satisfied then they will ultimately satisfy the final customer. Three types of marketing arises. These are a follows:1) Internal marketing: It is defined as when company communicates its policies to the employees. In this understands their employees & provides good working condition,

compensation and incentives so as to satisfy their employees. Company satisfy their employees because they are the person in touch with the final users. 2) External marketing: When company communicates with its final end user regarding the product complaints & suggestions so as to satisfy them. 3) Interactive marketing: In this employees communicate company product to its final end users.

INTRODUCTION TO CUSTOMER SATISFACTION Todays companies are facing their toughest competition ever. These companies can outdo their competition if they can move from product and sales

philosophy to a marketing philosophy. We spell out in detail how companies can go about winning customers and outperforming competitors. The answer lies in doing a better job of meeting and satisfying customers needs. Only customer-centered companies are adept at building customers, not just building product. They are skilled in market engineering, not just product engineering. Too many companies think that it is the marketing/sales departments job to procure customers. If that department cannot, the company draws the conclusion that its marketing people arent very good . but in fact, marketing is only one factor in attracting and keeping customers. The best marketing department in the world cannot spell products that are poorly made or fail to meet anyones need. The marketing department can be effective only in companies whose various departments and employees have designed and implemented a competitively superior customer value-delivery system. Although the customer oriented firms seek to create high customer satisfaction, its main goal is to maximize customer satisfaction ,first the company can increase customer satisfaction by lowering its prices, but results may be lower profits second the company might be able to increase prices. Third the company has many stake-holders including employees, dealers, suppliers and stock holders spending more to increase customer satisfaction might divert funds from increasing the

satisfaction of other partner. Estimate the company must operate on the philosophy that it is trying to deliver a high level of satisfaction to the other stake-holder within the constrains of its resources. From the past studies of last three decades we observed that the companys first task is to create and satisfy customers. But todays customers face a vast array of product and brand choice prices and suppliers. It is generally believed that customers estimate which offer will deliver the most value customers are like value maximizes, within the bounds of search costs and limited knowledge, mobility income, they form an expectation of value and act on it, whether or not the offer lives up to the value expectations affects customers satisfaction and their repurchase probability. CUSTOMER VALUE Customer delivered value is the difference between the total customer value and total consumer cost. Consumer value is the bundle of benefits customers expect from a given product or service. Total consumer cost it the bundle of costs consumer expect to incur in evaluating, obtaining and using the product. That two customers can report being highly satisfied for different reasons. one may be easily satisfied most of the time and other might be hard to please but was pleased on this occasion. Companies should also note that managers and salespeople can manipulate their ratings on customer satisfaction. They can be

especially nice just before the survey. They can also try to exclude unhappy customers from the survey. Another danger is that if customers will know that the company will go out of its way to please customers, some customers may express high dissatisfaction (even if satisfied) in order to receive more concession. DELIVERING CUSTOMER VALUE AND SATISFACTION: The value chain is a tool for identifying ways to create more customer value. every firm is a collection of activities that are performed to design, produce, market, deliver and support its product. The value chain identifies nine strategically relevant activities that create value and cost in a specific business. These nine value-creating activities consist of five primary activities and four support activities. INTERNAL RECORD SYSTEM Marketing managers rely on internal reports on orders, sales, prices, cost, inventory levels, receivables, payables, and so on. By analyzing this information, they can spot important opportunities and problems.

THE MARKETING INTELLIGENCE SYSTEM A marketing intelligence system is a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment. Marketing managers collect marketing intelligence by reading books,

newspapers and trade publications; talking to customers, suppliers and distributors; meeting with other company mangers. First, it can train and motivate the sales force to spot and report new developments. Sales representatives are positioned to pick up information missed by other means. Second, the company can motivate the distributors, retailers, and other intermediaries to pass along important intelligence. Third, companies can collect competitive intelligence by purchasing competitors products; attending open houses and trade shows; reading competitors publishing reports; attending stockholders meeting; talking to employees, dealers, distributors, suppliers, and freight agents; collecting competitors ads; and looking up news stories about competitors on the internet.

SOURCES OF INTERNAL DATA Sources of internal data are of two types: 1. 2. Internal or primary data External or secondary data.

Internal Sources

Company profit-loss statements, balance sheets, sales figures, sales call reports, invoices, inventory reports and prior research reports.
External Sources

A) Government publications B) Periodicals and books C) Commercial data