Showing posts with label BBA. Show all posts
Showing posts with label BBA. Show all posts

Friday, September 4, 2015

Market Survey Tools and Techniques of Data Collection

Market survey is a valuable tool to help minimize risks and increase the probability of success. However, that doesn’t mean it is a sure-shot way to eliminate risk and guarantee complete success. You should undertake market assessment with a survey before you finalize marketing plans for your product or service. This chapter aims to explain what a market survey is and how to conduct it.
Markets are changing rapidly, becoming complex and competitive. It is difficult to keep pace with the rapidly changing demand and supply patterns as an entrepreneur is unable to respond quickly to a new environment. He needs better market understanding and a market survey puts him in contact with the market. A systematic use of this tool can reduce risks in decision-making.
WHAT IS A MARKET SURVEY?
A market survey is an objective and systematic collection, recording, analysis and interpretation of data about existing or potential markets for a product/service. This definition will be better understood by looking at the objectives of a market survey. During a market survey, one needs to focus on:
# Size of the market and the anticipated market share in terms of volume and value
# Pattern of demand—seasonal or fluctuating in time (in a month, day, etc)
# Market structure
# Buying habits and motives of buyers#Unique selling proposition of certain products/services
#Past and present trends affecting the selected product or similar product
PROCESS OF CONDUCTING A MARKET SURVEY
A systematic 5-point process is involved in a market survey:
1. Defining objectives and specific information needed:
#Identifying source to obtain information
# Assessing time and cost for the study
#Working methodology and action plan
2. Selecting a sample size by determining whom to contact and when
3. Preparing questionnaires for the survey
4. Collecting data and analysing it
5. Preparing a report, based on analysed data
 PRIMARY AND SECONDARY SOURCES OF INFORMATION
Conducting a market survey does not always mean contacting people directly. There may be information in the form of reports, published material or documents of trade/industry associations. Data may be collected from two sources:
# Primary data sources: Information coming straight from those in the specified market, e.g. in the toy market, information obtained from toy manufacturers and traders.
#Secondary data sources: Data existing in reports or in a published form and may not have been collected for specific purpose. Such information can also be had from census office, banks, traders and manufacturers’ association or published anywhere.
SCHEDULE FOR MARKET SURVEY
A market survey is not restricted to collecting information on the market for a product, but also about marketing infrastructure and existing market conditions. Designing a market survey schedule could fetch a lot of data. Questions may be designed on these areas:
#Existence of competitors, their products and marketing strategies
#Information on all consumer groups
# Information on competing products/ similar products
#Attitude of existing/potential consumers, including buying preferences,behaviour etc.
MARKET RESEARCH: 10 TIPS TO BE MORE EFFECTIVE
1. Clearly identify the issue/problem that needs to be investigated. See
if any published/secondary sources of information are available for
this problem.
 2. Based on existing information, check if the problem can be definedor narrowed down. Further, with this as your basis, write down“terms of reference” for any subsequent study.
3. Try to look at the problems from different angles:
.. your own point of view as producer or seller
.. customers/consumers’ viewpoint as buyer and end users of products/services
.. competitors’ viewpoint for they may have addressed similar problems
4. Try to remain objective throughout the market research process and
check impulses/gut feeling from totally influencing the research.
5. Prepare schedule in as simple and clear a form as possible.
6. Maintain a tight control on the subject. If other subjects surface during
the research, give them the attention they deserve.
7. Complete the research promptly and maintain confidentiality lest the
competitors hear of it and forge ahead in the market.
8. Be prepared to take necessary action, which the research identifies.
9. Use the research immediately for the good of the enterprise.
10. Review all market research exercise and processes—the lessons learnt and areas to improve next time.
MODEL QUESTIONNAIRE FOR MARKET SURVEY
For Market Potential Collect data about sources of market information like consumers, suppliers and  manufacturers.                                                                      
A. Consumers
.. What is their annual consumption and requirement?
.. What is their present source of supply?
.. What is the customer’s brand loyalty and preferences about price, quality, payment terms, etc?
.. Are they satisfied with the present product and supply?
.. What is their purchasing criteria and purchasing power?
.. What is the consumption pattern? (basis to calculate their requirements)
.. What could be the future consumption pattern, in quantity and quality due to technological changes, etc?
.. What is the size of the average order, specifications and time and frequency of their placement?
.. Will any government institutions/departments or any company/industry buy the products? Is it possible to establish linkages with them, and how?
.. What is the life of your potential buyer?
.. Their age group, sex?
.. What geographical area they live in? Urban, village and which part of the country?
B. Suppliers (Traders)
.. Who are the principal traders in the item, their range of products and business terms/commissions, etc?
.. What are the possibility to trade with them and on what business terms?
.. What is the normal stock level maintained and problems in stocking?
.. What are future predictions on business conditions?
C. Manufacturers and Competitors
.. What are their products range, installed capacity, selling price?
.. What are their normal business terms about payment, price, etc?
.. What are their salient features, like technical skill, finance, other resources, etc.?
.. What are their strengths and weaknesses? (Try to do their SWOT analysis) 
.. Where do they get information regarding market and consumer profiles from? For Information on Raw Materials 
..Who are the major manufacturers/suppliers? 
 ..What is the time required to get raw material after order placement? Supply terms (tax structure, price, packing, payment, etc)? Cost of transportation? 
 .. What is the standard or minimum order quantity?
 ..Is raw material freely available or is there a quota system?
 ..Will any decision/policy affect its availability or price?
For Information on Machinery and Equipment
1.Who are the manufacturers/suppliers
2. What capacity, specifications and brands are available in market?
 3. What is the price of the machine? (Consider all costs—taxes, transport, accessories, etc.) 
4. Which electrical equipments, like motors, starters, switches, are needed? 
5. What performance guarantees/warranties are given? Is the supplier/ manufacturer reputed and reliable? 
6. What is the normal repair/maintenance cost per year? 
7. What spare parts would be frequently required? 
8. What quality and maximum output (production) a machine can give?
 9.Does the supplier train you/staff to acquire skills to operate machinery?

 
What is MARKET RESEARCH?
Market Research is a systematic, objective collection and analysis of data about a particular target market, competition, and/or environment. It always incorporates some form of data collection whether it be secondary research (often referred to as desk research) or primary market research which is collected direct from a respondent. The purpose of any market research project is to achieve an increased understanding of the subject matter. With markets throughout the world becoming increasingly more competitive, market research is now on the agenda of many organisations, whether they be large or small.
Market Research Is either quantitative, qualitative, or a combination of both. Qualitative and quantitative market research methods each provide different insights into customer behaviour. Normally, research results are more useful when the two methods are combined.
Qualitative Market Research
Qualitative market research provides an understanding of how or why things are as they are. For example, a Market Researcher may stop a consumer who has purchased a particular type of bread and ask him or her why that type of bread was chosen. Unlike quantitative research there are no fixed set of questions but, instead, a topic guide (or discussion guide) is used to explore various issues in-depth. The discussion between the interviewer (or moderator) and the respondent is largely determined by the respondents' own thoughts and feelings.
There are various types of qualitative market research methodologies. Research of this sort is mostly done face-to-face. One of the best-known techniques is the market research group discussion (or focus group). These are usually made up of 6 to 8 targeted respondents, a research moderator whose role is to ask the required questions, draw out answers, and encourage discussion, and an observation area usually behind one way mirrors, and video and/or audio taping facilities.
In addition, qualitative market research can also be conducted on a ‘one on one’ basis i.e. an in-depth market research interview with a trained executive interviewer and one respondent, a paired depth (two respondents), a triad (three respondents) and a mini group discussion (4-5 respondents).

The various types of qualitative market research methodologies are summarised below:
  • Market Research Depth Interviews
    a single respondent is interviewed based on various themes and topics (can be conducted either face to face or via the phone).
  • Market Research Paired Depths
    the same as a depth interview but there are two respondents. Particularly useful when ideas need to be 'bounced off' one another
  • Triads
    conducted with three respondents.
  • Market Research Mini-Groups
    contain 4-5 respondents.
  • Focus Groups or Group Discussions
    normally contain 8 respondents. With groups you benefit from the interaction between the different personalities.
  • Market Research Observation
    observing a respondent in their 'natural' environment.
  • Workshops
    to elicit new ideas and to evaluate ideas
Quantitative Market Research
Quantitative market research is numerically oriented, requires significant attention to the measurement of market phenomena and often involves statistical analysis. For example, a bank might ask its customers to rate its overall service as either excellent, good, poor or very poor. This will provide quantitative information that can be analysed statistically. The main rule with quantitative market research is that every respondent is asked the same series of questions. The approach is very structured and normally involves large numbers of interviews/questionnaires.

Perhaps the most common quantitative technique is the ‘market research survey’. These are basically projects that involve the collection of data from multiple cases – such as consumers or a set of products. Quantitative market research surveys can be conducted by using post (self-completion), face-to-face (in-street or in-home), telephone, email or web techniques. The questionnaire is one of the more common tools for collecting data from a survey, but it is only one of a wide ranging set of data collection aids.
The various types of quantitative market research methodologies are summarised below:

  • Face-to-Face Interviewing
    either in the street or, for more complex projects, in people's homes.
  • Telephone Interviewing
    a quick and cost effective way of achieving data.
  • Postal and Self-Completion Market Research
    cheap but takes a relatively long time to collect data.
  • Omnibus Market Research Surveys
    useful when only a few questions need to be asked. Questions are attached to other larger surveys. Data is obtained at a low cost.                                     

Thursday, July 16, 2015

Management Concepts Part-I for BBA D-I


             An Introduction to Management Concept

Definition or Meaning of Management

Management, or business management, is the art and science of getting things done through people to accomplish planned goals and objectives efficiently and effectively, with the optimum use of limited resources. Entrepreneurs who start and run businesses by themselves do not have to manage other people. They have to manage themselves. However, if the firm has employees, then some type of management plan is necessary. Management includes the processes or functions of planning, organizing, leading, and controlling.

Management helps businesses focus on setting and meeting goals efficiently and effectively so that a profit can be made. The word management also refers to the people who are in charge of running a business. Managers need a thorough understanding of business operations, which involve all the activities of a company. They develop the objectives for a firm or a department and then figure out how to meet those objectives through people, work processes, and equipment.

Functions of Management

Most managers carry out four different functions of management: planning, organizing, leading, and controlling. Some managers may primarily focus on one or two of them. These functions are indicated in the order in which they occur. Planning must be completed first, then organizing can take place. Organizing allows managers to lead and control employees and activities to get work done. Leading involves providing guidance to employees so they can fulfill their responsibilities effectively. Controlling involves measuring how the business performs to ensure that financial and operational goals are met.

Functions of Manager

Managers are usually task-oriented. This means that they can handle many tasks at the same time. They have to plan their time and decide which tasks are most important. They also must keep accurate business records. A manager often has to work under pressure and solve many small problems. Good problem-solving and time-management skills are a must. Every manager must communicate well. Most of a manager’s day is spent interacting with other people. This involves listening, an important part of communication. Managers need human relations skills, or skills in dealing with people. All managers must have some knowledge about the technical aspects of their business.
Meaning of Management
There is no universally accepted definition for management, therefore it is difficult to define what management is. The term Management is very broad in nature.

A simple traditional definition of management is "art of getting things done by others". This definition brings in two elements namely accomplishment of goals and objectives, and direction of group activities towards the desired goal. The weaknesses of this definition is that firstly it uses the word "art", whereas management is not merely an art, but it is both art and science. Secondly, the definition does not state the various functions of a management clearly.

A more elaborate definition given by George R. Terry, defines management as a "continuous process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources." Firstly, it considers management as a "continuous process" i.e. a systematic way of doing things. Secondly, it states four basic management activities: Planning, organizing, actuating, and controlling.
Planning is thinking of actions in advance.
Organizing is coordination of the human and material resources of an organization.
Actuating is motivation and direction of subordinates.
Controlling means the attempt to ensure no deviation from the norm or plan. 
Thirdly, it states that manager uses people and other resources that are limited. For example a manager who wants to increase the sales, might try not only to increase the sales force, but also to increase advertising budget. And fourthly, it states that management involves the act of achieving the organization's objectives.

Broadly, management can be considered as a process, activity, discipline, group, science, art or profession. Good management practices includes both being effective and efficient. Being effective means doing the appropriate task (doing right things) i.e, fitting the square pegs in square holes and round pegs in round holes. Being efficient means doing the task correctly (doing right things rightly), at least possible cost with minimum wastage of resources.

 

Features or Characteristics of Management

Management is Goal-Oriented

The success of any management activity is assessed by its achievement of the predetermined goals or objective. Management is a purposeful activity. It is a tool which helps use of human & physical resources to fulfill the pre-determined goals.

Management integrates Human, Physical and Financial Resources

In an organization, human beings work with non-human resources like machines, materials, financial assets, buildings, etc. Management integrates human efforts with those resources. It brings harmony among the human, physical and financial resources.

Management is Continuous Process

Management is an ongoing process. It involves continuous handling of problems and issues. It is concerned with identifying the problem and taking appropriate steps to solve it. And further improving the results. This is also called Continuous Improvement Process.

Management is all Pervasive

Management is required in all types of organizations at all levels whether it is political, social, cultural or business because it helps and directs various efforts towards a definite purpose. Thus clubs, hospitals, political parties, colleges, hospitals, business firms all require management. Whenever more than one person is engaged in working for a common goal, management is necessary. Whether it is a small business firm which may be engaged in trading or a large firm, management is required everywhere irrespective of size or type of activity.

Management is a Group Activity

Management is very much less concerned with individual’s efforts. It is more concerned with groups and team work. It involves the use of group effort to achieve predetermined goal of management.

Management is about Optimizing

Optimizing means maximizing the outputs with minimum possible efforts and resources. Management is basically concerned with thinking & utilizing human, material & financial resources in such a manner that would result in best combination. This combination results in reduction of various costs.

Management - Art and Science

Management involves characteristics of both art and science.
While certain aspects of management make it a science, certain others which involve application of skills make it an art. Every discipline of art is always backed by science which is basic knowledge of that art. Similarly, every discipline of science is complete only when it is used in practice for solving various kind of problems.  In the area of management, science and art are tho sides of the same coin.
In the beginning of development of management knowledge, it was considered as an art (Traditional Theory). There was a jungle of management knowledge. Any one used it to get things done in his own way. But later by codifying and systemizing the management, it became a science as well as being an art (Modern Theory).

Management as an Art

Management as an art has the following characteristics:
  • Just like other arts it has practical application. The knowledge of management should be learned and practiced by managers, just as medical or legal practitioners practice their respective sciences. In this sense, management is an art.
  • The manager gains experience by continuous application of management knowledge. This experience helps them to develop more skills and abilities for translating management knowledge into practice.
  • Application of management knowledge calls for innovativeness and creativity.
  • The fourth reason to consider management as an art is that in many situations, theoretical knowledge of management may not be adequate or relevant for solving the problem. It may be because of complexity or unique nature of the problem.

Management as a Science

Management as a science has the following characteristics:
  • Its principles, generalizations and concepts are systematically . In this case the manager can manage the situation or organization in a systematic and scientific manner.
  • Its principles, generalizations and concepts are formulated on the basis of observation, research, analysis and experimentation, as is the case with the principles of other sciences.
  • Like other sciences, management principles are also based on relationship of cause and effect. It states that same cause under similar circumstance will produce same effect. Suppose if workers are paid more (cause), the produce more (effect).
  • Management principles are codified and systematic, and can be transferred from one to another and can be taught.
  • Management principles are universally applicable to all types of organizations.

History of Management

The verb manage comes from the Italian maneggiare (to handle), which in turn derives from the Latin manus (hand). The French word mesnagement influenced the development in meaning of the English word management in the 17th and 18th centuries.
The concept of management emerges from the Industrial Revolution.

 

Four Functions of Management


Management has been described as a social process involving responsibility for economical and effective planning & regulation of operation of an enterprise in the fulfillment of given purposes. It is a dynamic process consisting of various elements and activities. These activities are different from operative functions like marketing, finance, hr, purchase, etc. Rather these activities are common to each and every manger irrespective of level or status.
There are four fundamental functions of management - Planning, Organizing, Leading and controlling.
According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to control”. Luther Gullick has given a keyword ’POSDCORB’ where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting.

Thsese four fuctions of mangement are separated for theoretical purpose only but in practice these functions are overlapping in nature and are highly inseparable. Each function blends into the other & each affects the performance of others.

Planning

It is the most basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals. Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is continuous process of systematic thinking about ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages, etc.

Organizing

It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel”. To organize a business involves determining & providing human and non-human resources to the organizational structure. Organizing as a process involves:
  • Identification of activities or tasks.
  • Classification or grouping of activities.
  • Assignment of duties and roles.
  • Delegation of authority and creation of responsibility.
Staffing:
It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior, etc. The main purpose of staffing is to put right man on right job (popularly known as Job Fit). Staffing also includes recruitment, selection & placement, training & development, remuneration, performance appraisal, etc.

Leading

It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Leading is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating for the achievement of organizational goals.

Controlling

It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation. Controlling has following steps:
  • Establishment of standard performance.
  • Measurement of actual performance.
  • Comparison of actual performance with the standards and finding out deviation (if any).
  • Taking corrective action.

 

Three Levels of Management


Levels of Management refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increases as the size of the organization and work force increases. The level of management determines a chain of command, the amount of authority and level of status enjoyed by any managerial position. Most organizations have three management levels:
  1. Top level or Administrative
  2. Middle level or Executory
  3. Low level or First-line managers
These managers are classified in a hierarchy of authority, and perform different tasks. In many organizations, the number of managers in every level resembles a pyramid.

Top Level of Management

It consists of board of directors, chief executive officers, managing director, president and vice president. The top management is the ultimate source of authority and it manages long-term objectives, goals and policies for an enterprise. It devotes more time on planning and co-ordinating functions. 
They are responsible for controlling and overseeing the entire organization. They develop goals, strategic plans, company policies, and make decisions on the direction of the business. In addition, top-level managers play a significant role in the mobilization of outside resources and are accountable to the shareholders and general public.

Middle Level of Management

It consists of general managers, branch managers and department managers. They are accountable to the top management for their department's function. They devote more time to organizational and directional functions. Their roles can be emphasized as executing organizational plans in conformance with the company's policies and the objectives of the top management, they define and discuss information and policies from top management to lower management, and most importantly they inspire and provide guidance to lower level managers towards better performance. Some of their functions are as follows:
  • Designing and implementing effective group and intergroup work and information systems.
  • Defining and monitoring group-level performance indicators.
  • Diagnosing and resolving problems within and among work groups.
  • Designing and implementing reward systems supporting cooperative behavior.

Lower Level of Management

It consists of supervisors, section leads, foremen, etc. They focus on controlling and directing. They usually have the responsibility of assigning employees tasks, guiding and supervising employees on day-to-day activities, ensuring quality and quantity production, making recommendations, suggestions, and upchanneling employee problems, etc. First-level managers are role models for employees that provide:
  • Basic supervision
  • Motivation
  • Career planning
  • Performance feedback
  • supervising the staffs

Leadership versus Management

Although sometimes used synonymously, leadership and management can be quite different. Leaders may be managers, but not all managers are leaders. So just what are the differences? While managers tend to have their eyes on the bottom line, leaders are more often looking toward the horizon, trying to find new opportunities for growth and development. A manager is usually satisfied with the status quo, whereas the leader is often challenging it.
Leadership often involves reinventing the job; strong leaders create their role in an organization or in the world system. Managers are often responsible for executing the task at hand, not thinking of future goals. Managers are responsible for maintaining, but leaders look to innovate. Managers may involve employees in their activities, but often on a need to know basis. Leaders, in contrast, work to inspire those around them by trying to help others gain personal growth and development from their activities and by turning weaknesses into strengths.
Companies that have “leader-managers” throughout the corporate hierarchy are the most successful.

Roles of Manager

Management is often expressed as the process of achieving an organization’s objectives through guiding development, maintenance, and allocating resources. The primary roles of managers are planning, organizing, leading, and controlling.

Planning

Planning is the process of determining a course of action for future conditions and events with the goal of achieving the company’s objectives. Effective planning is necessary for any business or organization that wants to avoid costly mistakes. There are four different types of planning that are associated with management: strategic, tactical, operational, and contingency planning.
Strategic planning involves creating long-range goals and determining the resources required for achieving these goals. Strategic planning is the most far-reaching level of planning and involves plans with time frames from one to five years. Essential to the notion of strategic planning is that it involves an assessment and consideration of the organization’s external environment, and that the organization is adaptive to these outside, uncontrollable variables, adjusting and possibly redirecting its strategy to account for this changing environment.
Tactical planning denotes the implementation of the activities defined by the strategic plans. Generally, tactical planning involves shorter-range plans with time frames of less than one year.
Operational planning involves the creation of specific methods, standards, and procedures for different functional areas of an organization. In addition, the organization chooses specific work targets and assigns employees to teams to carry out plans.
Contingency planning involves the creation of alternative courses of action for unusual or crisis situations. In today’s society, companies are placing greater importance on contingency planning in order to respond to crisis situations.

Organizing

This management role involves blending human and capital resources in a formal structure. The manager will divide and classify work by determining which specific tasks need to be carried out in order to accomplish a set of objectives.

Leading

Managers also have the role of leading or directing employees and plans. Some managers may be more successful at leadership than others. The goal of leading is to guide and motivate employees in order to accomplish organizational objectives. This role involves explaining procedures, issuing directives, and ensuring that any mistakes are corrected.

Controlling

Controlling allows a manager to measure how closely an organization is adhering to its set goals. It is also a process that provides feedback for future planning.
  1. Setting performance standards. A company needs to set the standards by which performance will be measured. In a sales organization it may be sales growth or quarterly sales figures. Perhaps the manager will set the dollar amount for sales that are to be made that quarter.
  2. Measuring performance. Using the previous example, measuring performance for sales will require tallying up the number of sales made during the quarter.
  3. Comparing actual performance to the set performance standards. Now the difference between the set performance sales and the dollar amount of actual sales made during the quarter must be determined.
  4. Taking the necessary corrective action steps. If the sales were much below the set level, it is important to analyze what went wrong and try to correct it.
  5. Using information from the process to set future performance standards.

Leadership Styles

Individual managers have their own styles of managing, and within organizations there is often a predominant style of leadership. The predominant leadership styles - autocratic, democratic, and laissez-faire - have many variations. We can compare and contrast the effectiveness of each of these styles as it affects employee performance.

Autocratic Leadership

This style of leadership is both directive and controlling. The leader will make all decisions without consulting employees and will also dictate employee roles. Micromanaging is a form of autocratic leadership in which upper management controls even the smallest tasks undertaken by subordinates. The autocratic style of leadership limits employee freedom of expression and participation in the decision-making process. It may result in alienating employees from leadership and will not serve to create trust between managers and subordinates. Further, creative minds cannot flourish under autocratic leadership.
Autocratic leadership may best be used when companies are managing less experienced employees. U.S. companies operating in less developed countries often use autocratic leadership. It allows the parent corporation more control over its overseas investment. In countries where the government controls the economy, U.S. corporations often use autocratic leadership because the employees are used to making decisions to satisfy the goals of the government, not the parent corporation.
Managers should not use the autocratic leadership style in operations where employees expect to voice their opinions. It also should not be used if employees begin expecting managers to make all the decisions for them, or if employees become fearful or resentful.

Democratic Leadership

This style of management is centered on employee participation and involves decision making by consensus and consultation. The leader will involve employees in the decision-making process and they will be encouraged to give input and delegate assignments. Democratic leadership often leads to empowerment of employees because it gives them a sense of responsibility for the decisions made by management. This can also be a very effective form of management when employees offer different perspective than the manager, due to their daily involvement with work. A successful leader will know when to be a teacher and when to be a student.
Democratic leadership may best be used when working with highly skilled and experienced employees. It is most useful for implementing organizational changes, for resolving group problems, and when the leader is uncertain about which direction to take and therefore requires input from knowledgeable employees. One of the downsides of democratic leadership is that it may lead to endless meetings and therefore create frustration among employees if used for every decision made by a company. Democratic leadership is not a good idea in situations when the business cannot afford to make mistakes - for instance, when a company is facing a crisis situation such as bankruptcy.

Laissez-Faire Leadership

This free-rein form of leadership, if it is to be successful, requires extensive communication by management with employees. It is the style of leadership that makes employees responsible for most of the decisions that are made, and in which they are minimally supervised. Employees are responsible for motivating and managing themselves on a daily basis under this leadership style.
Laissez-faire leadership may best be used when employees are educated, knowledgeable, and self-motivated. Employees must have the drive and ambition to achieve goals on their own for this style to be most effective. Laissez-faire leadership is not a good idea in situations where employees feel insecure about the manager’s lack of availability or the manager is using the employees to cover for his or her inability to carry out his or her own work. This type of situation can create resentment and result in an unhealthy work environment.

Transformational and Transactional Leadership

 Two additional styles of leadership are transformational and transactional. Both have strong ethical components and philosophical underpinnings.

Transformational Leadership

Leaders who have a clear vision and are able to articulate it effectively to others often characterize this style of leadership. Transformational leaders look beyond themselves in order to work for the greater good of everyone. This type of leader will bring others into the decision-making process and will allow those around them opportunity to learn and grow as individuals. They seek out different perspectives when trying to solve a problem and are able to instil pride into those who work under them. Transformational leaders spend time coaching their employees and learning from them as well.

Transactional Leadership

This leadership style is characterized by centralized control over employees. The transactional leader will control outcomes and strive for behavioural compliance. Employees under a transactional leader are motivated by the transactional leader’s praise, reward, and promise. They may also be corrected by the leader’s negative feedback, threats, or disciplinary action.

The most effective leadership style is using a combination of styles. Leaders should know when it is best to be autocratic and when to be democratic. They can also be transformational and transactional at the same time; these are not mutually exclusive styles and in fact can complement one another extremely well.

Sunday, March 2, 2014

Planning An Advertising Campaign Part -4 for BBA D-III Paper 7


Advertising campaign can be defined as a series of advertisements with an identical or similar message, place in one or more of the advertising media over a particular period of time.

An advertising campaign must be co-ordinate with other marketing efforts and activities. This means the campaign must be correlated with the personal selling activities of the sales force, those of the distributors of the product and with the various other promotional efforts, which may be a part of marketing mix.

PROCESS OF PLANNING THE ADVERTISING CAMPAIGN

The campaign planning is the joint effort of both the advertiser and his ad Agency. The advertiser supplies much information about the product, the channel of distribution, competition the product, and the firm. The agency may collect other information from the market, in respect of target audience etc.

Advertising campaign planning simply means planning the advertising campaign. Advertising campaign planning concerns many people in the advertising agency, but mainly concerns the advertising manager (for the client), account executive, marketing manager, creative director, media planner, and PR manager. They design and plan advertising campaign for the client.

Steps in Advertising Campaign Planning : The main steps in advertising campaign planning are as follows :

1. Prototype Stage : Let us assume that a manufacturer has the prototype of a new product. The basic product has been thoroughly tested, but the packaging has not been determined, it has no name, no price, and perhaps no defined market. In some respects this seems to contradict modern marketing principles. This situation is not uncommon. The company now wish to advertise its new product and appoints an advertising agency and calls it to explore the possibilities to promote the sales.

2. Initial Briefing by Client : The most likely procedure is for the managing director to ask his advertising manager to fix up a meeting with the account executive of the advertising agency. This first meeting may be held at the factory, at the companys head office, or at the advertising agency. Probably the best venue will be where the account executive can see the product and meet the people who have been involved in its development. The factory might be the best place, but much depends on how the company is organized.

For this initial discussion, the right choice of venue can be important to the account executives clear understanding of the proposition. It can be dangerous for the advertising agency to start off on the wrong foot because of inadequate or faulty interpretation of policy and problems. The need then is for best possible understanding at the beginning. This is the joint responsibility of the advertising manager and the account executive.

3. Contact Report : Whenever a meeting has been held with a client a contact report should be written at once and circulated to all those present at the meeting, with additional copies for others not in attendance who should be informed, both inside the company and inside the agency. The importance of a contact report lies in its confirmation of agreed action, so that nothing depends on peoples memories, and if it is submitted directly after the event it serves to remind of necessary action that must be taken by people present at the meeting. Agreed contact reports, when placed in a file or binder as instructions to proceed, may be referred to as the facts book. Should a dispute occur, reference can be made to the respective contact report: at the end of the year these reports from the basis of a report to the client on the years work.

4. Account Executives Report to Agency Management : The account executive will also give his superiors - the account director and perhaps the agency managing director - a verbal report. If new business is coming into the agency it may be necessary to make changes in the deployment of staff, engage extra staff, and consider the use or expansion of equipment and premises.

5. Account Executives Briefing to Agency Department Heads : The account executive now writes up a detailed, factual but as far as possible unbiased report on the assignment, setting out his understanding of the product and the clients requirements. In this report he should try to avoid expressing any personal observations because the object is to inform others whose ideas and opinions are being sought. Each department head is asked to study the report and to attend a plans board meeting.

6. Proposition : At this stage, the account executive invites the managing director of the client company to attend a meeting at which the scheme is presented in report form with a presentation of ideas in rough visual form. At this meeting the client party may consist of the managing director, marketing manager, sales manager and advertising manager and the members of the agency party may include the account director, account executive and the marketing director. Once the scheme is approved and adopted in principle the agency will be instructed to prepare a full visual presentation at the clients expense.
Now, the agency will engage in actual copywriting, photography and drawing. Detailed media scheduling will now be done by the media buyer.

7. Presentation to Client : At this stage the complete campaign is demonstrated to the client. The campaign is presented visually. Advertising campaign planning must be flexible. Moreover, at such a meeting with the client there will be a number of company directors and executives present who disagree with one another as well as with the agency over what makes an advertising campaign.

Everyone likes to argue about advertising! The account executive, supported by the advertising manager in deal circumstances, must sell his campaign on the basis of sales and readership figures of publications, show the results of copy testing, and offer alternative media plans with evidence of the reasoning behind them. Much of the comment and criticism from the client side will often represent arguments which were considered and rejected in the agency much earlier. This has to be expected, accepted courteously and gently dismissed by means by persuasive reasoning and statistics which reveal that the agency has really taken pains to produce not just a clever scheme but one based on businesslike thinking.

Once the scheme has been approved, the account executive and his companions will return to the agency, ready to execute the campaign. At this stage when the media start buyers, creative staff, print buying production and traffic takeover, working under the direction of the account executive.

Factors Influencing the Planning of an Advertising Campaign :

1. The Organisation its reputation, position in the market.

2. The product e.g. Consumer (Perishable, durable or speciality) goods, or industrial goods etc.

3. The market the nature of customers, their income, their buying behavior, and their location.

4. The competition.

5. The absolute price of the product, Competitors price etc.

6. The channels of distribution.

7. The budget, the advertising theme, etc.

8. The media, the advertising schedule etc.

9. The Govt. regulations and controls, restriction on certain products, restriction on certain media to carry out certain ads. Etc.

Market Segmentation

Market Segmentation is a technique of dividing the market of a product into several homogenous groups. Under this technique, customers of a product are divided according to such common characteristics as age, sex, income level rural urban composition.

The concept of market segmentation is based on the assumption that markets of all commodities are heterogeneous. For every product, there is a group of customers having different nature, buying habits, and attitudes. Two customers are not alike. They differ each other. On the basis of their characteristics, customers may be divided into several groups. These groups are formed on the basis of some similar qualities and such division is called Market Segmentation.

Definition of Marketing Segmentation : The term „Market Segmentation has been defined by several authors as follows :

Philip Kotler, „Market Segmentation is the sub-dividing of a market into homogeneous subsets customers, where any subsets may conceivably be selected on a market target to be reached with a distinct marketing mix.

William J. Stanton, „Market Segmentation consists of taking the total heterogeneous market for a product and dividing it into several sub-markets or segments, each of which, tends to be homogeneous in all significant aspects.

Market segmentation are grouping of consumers according to such characteristic as income, age, sex, urban rural, etc. This helps forming the market into a meaningful buyer group.

Bases of Market Segmentation:

Market segmentation divides the whole market of a product into several different groups. Segmentation is the process of partitioning a large heterogeneous market into smaller groups of people or businesses which show similar needs and/or characteristics thus resulting into similar purchase behaviour.

Techniques of Market Segmentation: Markets can be segmented on the basis of the total demand for the product, the desire and the interests of a group of buyers which exhibits certain characteristics. They can be based on geographical, demographic, psychographic, status, volume entities. The entire market of a country is subdivided into marketing zones. The most commonly used bases for segmenting consumer goods markets are as follows

1. Geographic Segmentation : Many organisation segment their market into different geographic units such as nation, states, districts, regions, cities and taluka places. Geographic segmentation is based on the assumption that consumer needs and responses vary geographically. National newspapers, for example, are published from different cities and also in different languages to meet the readers spread all over the country. Different market locations have different costs, demand and other features which are considered while formulating an appropriate marketing strategy. In geographic base, regional differences in terms of geography, climate, population and its density are used as base for market segmentation. Most of the national manufacturers split up their sales areas into sales territories either state wise or district wise.

2. Demographic Segmentation : Demography is the study of dynamics of population change. The markets are segmented according to demographic characteristics such as age, sex, income, occupation, education, language, religion, race, nationality and rural urban base. Demographic variables are used commonly and extensively by large number of producers for market segmentation. Demographic segmentation is comparatively easy as required data are available in census and other published reports.

Demographic data on population distribution by sex help segmenting market for male and female population. Titan have segmented their market on the basis of sex and are manufacturing wrist watches for male and female buyers separately. Watches of different price in both the categories are brought in the market. Producers of confectioneries segment their markets on the basis of age. The same is the case with toys. In the case of certain products like bicycles, women demand special styles and manufactures adjust their production to suit male as well as female. This gives more turnover and satisfaction to buyers. Demographic segmentation is important as the nature of demand is closely related to the size and composition of population by age, sex, rural and urban base.

3. Socio-Economic Segmentation : The segmentation, here is done on the basis of income group, consumption levels, and other cultural aspects. The population is differentiated for marketing efforts on these considerations. In a country like India, such type of segmentation is necessary as the society is divided into different groups on socio-economic cultural factors. In India, people follow different cultural background. Naturally, suitable segmentation for the purpose of marketing is useful. Socio-economic segmentation is used extensively as information in this regard is more easily available. The lower class, middle class, working class is one example of economic classification. Since market potential is intimately connected with the ability to buy, this segmentation is meaningful in deciding buying patterns of a particular class.

4. Psychographic Segmentation : Psychographics attempts to segment according to psychographical profiles of people in terms of their life style and attributes. Psychographics attempt to segment according to psychological profiles of people in terms of their life style and attitudes. In this type of segmentation, certain psychological variables such as social class, life-styles or personality characteristics are used for segmentation.

Manufacturers of cars, textiles and home furnishings divide buyers on the basis of social class and life styles. Such segmentation is also possible on the basis of reading habits and leisure activities. Marketing efforts are adjusted according to such variables. It may be pointed out that in the case of geographic, demographic and socio-economic bases, the required data for segmentation are either readily available in census and other reports or can be collected through survey. However, in the case of psychological variables, relevant information is not readily available and has to be collected through behavioural research. Moreover, market segmentation on psychological variables is complicated as it is always difficult to expose individuals to a battery of psychological test and to find out their specific personality traits. Moreover, consumers behave or react differently from what they say, if new benefits or bundles of benefits are offered to them. Psychographic segmentation can be made on the basis of (a) Social class (Upper class, upper middle, lower middle class, etc.) (b) Personality (Selfconfidence, ambitious, aggressive, sociable, etc.) and (c) Life-style (Liberal, conservative, religious, health and fitness-oriented, etc.)

5. Behaviouristic Segmentation : Here, the buyers are grouped or separated on the basis of their knowledge, attitudes, views, or response to the product. This is useful in order to find out what role price or package or colour or service can play in influencing buying decisions. This segmentation is also called product related segmentation as the response of consumers dividing into different convenient groups for the purpose of marketing. In India, the supply of consumer items, electronic goods, two-wheelers, cosmetics etc. is fast increasing. The supply is more as compared to demand. The income of people of all categories are also increasing. People are also willing to spend more. They get information about new products from different media. This creates proper background for behaviouristic segmentation is similar to but slightly different from psychographic segmentation.

6. Product Segmentation : When the segmentation of markets is done on the basis of product characteristics that are capable of satisfying certain special needs of customers, such a method is known as product segmentation. The products, on this basis, are classified into (1) Prestige products, (Automobiles and jewellery (2) Maturity products. (Cigarettes and Blades), (3) Status products, (Most Luxuries), (4) Anxiety products, (Medicines, Soaps and Perfumes) and (5) Functional products, (Fruits and Vegetables). This type of product segmentation is directed towards differences among the products which comprise markets.

7. Benefit Segmentation : Under this method the potential buyersform the basis of segmentation. They are interviewed to learn the importance of different benefits they may be expecting from a product. These benefits or utilities may be classified into primary utilities and secondary or evolved utilities. Toothpaste has primary utility of cleaning and secondary utility of good tasted breath freshening and rightness. Likewise, Shampoo has primary utility of cleaning and secondary utility of shiny hair and thickening hair.

8. Volume Segmentation : Markets can be segmented into bulk users, medium users and unit users. This method is based on the volume of purchases. The heavy users may constitute a small percentage of the numerical size of the market but forms a major percentage of the unit volume consumed. This analyse is also capable of showing the buying behaviour of different groups.

9. Status Segmentation : Markets can be differentiated into nonex- users, users, potential users, first-time users and regular users of a product. High market share companies like the DCM generally look for potential users, whereas small competitive companies are contended to concentrate on regular users who always patronise their products and tend to remain to their brands.

Importance of Market Segmentation :

Market segmentation is a technique of dividing the market of a product into several homogeneous groups on the basis of their common characteristics. The concept of market segmentation is based on the fact that markets of all the commodities are heterogeneous. On the basis of their characteristics, customers may be divided into several groups. These groups are formed on the basis of some similar qualities and such division is called market segmentation. Following points explains the importance of Market Segmentation :

1) Market segmentation are grouping of consumers according to such characteristics as income, age, sex, urban, rural, etc. This helps forming the market into a meaningful buyer group.

2) Market segmentation ensures certain advantages. Infact market segmentation is the most important factor in media planning because the decision of the media selection would depend mostly upon the people who comprise the market. However, it is not a very

difficult task to provide precisely the necessary facts. Where the market is restricted and clearly demarcated, as a particular section of the community such as doctors, architects, engineers, hoteliers or even telephone or car owners, the media strategy can be simple and straight forward, making use of the selective media like direct mail, etc., depending of course, on the budget available.

It is only when a wider mass market is to be reached that the problem of selection of media becomes complex. Here the problem arises because a mass market does not permit its definition as precisely as is required to make corresponding media selection predictable.

3) Markets for a new product or the existing products may be divided into segments on the basis of geographic, demographic and psychographic variables. Good segmentation involves the division of a market by a succession of variables. The market manager must always be open to the possibility of finding new segmentation variables and combinations that will reveal fresh marketing potentialities.

4) The market may also be divided into different locations such as nations, states, districts, talukas, etc. It could be recognised that market potentialities and cost vary with market location. Thus, it determines the geographical markets which could serve best.

5) Marketing manager may also segment a market on such criterion as the age, sex and marital status of the population. A product for use of infants will have high sales potentiality in suburbs or extended suburbs where the level of fertility is expected to be high as compared to the city. Likewise toothpaste will have better market in urban rather than rural areas. As such market will be segmented on the basis of urbanisation.

Markets are segmented due to following reasons :

1. It would be in a better position to spot and compare marketing opportunities. It can examine the needs of each and every segment against the current competitive offerings and determine the extent of current satisfaction. The segment with lower levels of satisfaction from current offerings represents good opportunities.

2. It can make finer adjustments of its product and marketing appeals. The seller can evolve a separate marketing programme to meet the needs of different buyers.

3. Marketing programmes and budgets could be chalked out on the basis of response characteristics of specific market segments. Funds may be allocated efficiently to bring out the desired effects in different parts of the market.

4. Market segmentation is undertaken with the purpose of locating the tastes, temperaments and buying habits of different groups or segments. The behavioural scientists feel that all buyers are different. They are keenly interested in segmenting the market as the significant differences in market behaviour between the various segments of society rarely exists. In this background, the formulation of marketing policies or programmes or tactics for all segments becomes urgent.

5. Market segmentation is done with the purpose of locating new markets. The group wise or segment wise study of buyers tastes, temperaments, living habits and so on help a marketer, while searching for new market.

DAGMAR MODEL

DAGMAR model for arousing consumer interests was developed by Russen Colley in his study entitled “Defining Advertising Goals for Measured Advertising Results.” The name

DAGMAR model is derived from the studys title. The study begins from a point where the prospect is not aware about the existence of the product. From this point of non-awareness the prospect advances ahead towards awareness. He will have to go through the following steps :

1. Awareness : When the prospect is asked to mention the name of a brand of product, perhaps he is in a position to recollect the name of a specific brand only.

2. Comprehension : The prospect is conscious about the main sales theme of a brand of product. When asked upon, he is able to associate a brand with the sales theme, which is already known to him.

3. Conviction : At the stage of conviction, the prospect is able to foresee how the benefits of the brand of goods will serve his need. He is convinced that if he purchases this brand of goods it would be a right decision.

4. Motivation : Having been convinced, the prospect is motivated to buy a specific brand of goods. DAGMAR model suggests that all consumers will not be at the same stage but they would be at different stages. The advertising efforts required to move on person from non awareness to awareness could be very taxing as compared to the efforts involved in moving persons from conviction to motivation. DAGMAR model also illustrates the success of means of communication. After advertisements have been carried out, how people associate themselves with a specific brand of product.

Questions

1) Explain the following terms,

a) DAGMAR

b) Market Segmentation

c) Benefit Segmentation

d) Behaviouristic Segmentation

e) Psychographic Segmentation

f) Advertising Campaign

g) Advertising campaign Planning

2) “The advertising Campaign Planning is the process of collective efforts made by the advertiser and the Advertising agency.” Explain.

AIDA

AIDA is a functional formula devised by E.K. Strong. It is the acronym for Attention (A), Interest (I) Desire (D), and Action (A).Strong postulated that before becoming a user of a product to an Interest in it. Form this stage he develops a Desire for the product and this then result in.

1. Attention : The main function of an advertisement is to attract attention of the consumers. It is because of this fact that the advertiser will use various devices like the use of attractive colour, headlines display and overall layout.

2. Interest : An advertisement is designed to create interest for the goods or services of the advertiser, interest is closely related to attention. An advertiser has to take note of these two aspects while developing an advertisement. A good advertisement starts with a point of interest to the reader and proceeds to a point of interest to the advertiser.

Advertising aims at stimulating primary demands for a new product. It is used for existing product to bring a greater bit of the marketing share. It is also used to remind the consumers about their needs. A good advertisement should arouse interest of the prospects in the advertised product.

3. Desire : A good advertisement should be able to create desire in the minds of the readers about the product. It is not enough for a good advertisement to attract attention create interest but also arouse desire in the heart of the prospect to have the product. The advertiser should make use of proper appeals and selling points while creating desire for the product. Making use of proper appeal will depend on the seasonal consumption of the product. For example, the sale of rain-coats in monsoon will emphasise self protection against rains. It is through the sales appeal that the advertiser creates a desire for the product.

4. Action : This is an important stage where the advertiser can study the impact of his advertisement. If the advertisement has attracted attention, aroused interest, created desire, then the advertisement should appeal the prospect to act i.e., to come forward for making purchases. The advertiser should tell the prospect about the product, their main features, how they can be consumed and where they are available. For example, the prospect who wants to book new scooter should get such information in the advertisement as: place

of display, place and date of booking. Every advertisement normally carries such basic information to guide the prospective buyers. It is this stage which plays a decisive role in generating the sale of the advertisers product.

UNIQUE SELLING PROPOSITION (USP)

Unique Selling Proposition (USP) is an offer an advertiser makes to his target customers which is unique in relation to competing offers and promises to deliver a certain distinctive benefit or satisfaction. Unique selling proposition is a creative approach and style which was originated at the Ted Bates Advertising Agency in the early 1940s. Its originator, author and copy-writer was Rosser Reeves. He developed this central idea of Unique Selling Proposition (USP). This concept has been adopted by many agencies all over the world. It is the combination of three words - (i) Unique, (ii) Selling, and (iii) Proposition. In order to make the concept clear, the meaning of these three words is given below

(i) Unique : The word unique describes an attribute or feature which the product or brand only possesses or no claim of the attribute or feature is currently being made by any other competing brand.

(ii) Selling : Selling refers to sales value. The claim whatever it is -
must be strong enough, important enough, believable enough to convince consumers that it is absolutely in their interest to purchase the product or brand in question.

 (iii) Proposition : Proposition is a promise made by the advertiser that the product, if purchased, will satisfy the needs of the consumers. The proposition should be strong enough to move the mass millions, i.e., pull in new and old customers to your product or brand.

ADVERTISING APPEAL

Meaning : An advertising appeal is a statement designed to motivate a person to act. The appeals which the advertiser makes usually focus the buying motives of the consumers. Pleasing total quality of a radio becomes basis to motivate the music and the vitamin ontents of a drug form an appeal to motivate public and listen to people to preserve their health. However, numerous appeals may be made for any product.

Essentials of a Good Advertising Appeal : The following are the essentials of a good advertising appeal :

1. It must be Communicative : An advertising appeal must successfully tell what it wishes to convey. As far as possible, the message must be communicated in a simple language.

2. It must have a Good Theme : A good theme means there must be something which has to be told to the prospects. Only meaningful words become effective in conveying the story.

3. It must be Distinctive : An advertising appeal must be distinctive. It should present a product in a distinctive way. If it is a new product, then „new alone makes it distinctive.

4. It must be Interesting : A good advertising appeal must be interesting. An advertisement must provide interest to the readers or the listeners or viewers and this can be done by telling the story of an advertisement in an interesting manner.

5. It must be Believable : The theme of an effective advertising appeal must be believable. The message which is doubted can never be effective. Only facts are presented in an interesting manner.

6. It must be Complete : An advertising appeal should be complete and must not be superfluous. Such information which is likely to confuse the prospects in making buying decision should be avoided.

Types of Appeals Used in Advertising : The following are the appeals widely used in advertising :

1. Emotional Appeals : Emotional appeals are used in advertising the consumer product. They are used for inducing initial interests and arousing interest in the advertised product. Goods like toys for children and baby food are sold on emotional appeals.

2. Intellectual Appeals : These appeals are free from emotional touch and are based on intelligence. Intellectual appeal are used for selling high priced industrial goods. They are based on rational thinking. Emotional appeals work fast to create interest and desire but it is intellectual appeal of the Bombay Dyeing advertisement where a young and beautiful girl is shown wearing eye-catching prints. The picture of the girl and prints provide emotional appeal but the headline „icy summer prints provide and atmosphere of coolness and appeals to the intellect.

3. Human Instincts Appeal : Human beings are guided by such instincts as: self-preservation, parental care, food, clothing, curiosity and so on. When a copy makes proper appeal to the appropriate instinct, it will create a desire in the minds of the reader to buy the article. For an appeal to the self-preservation instinct health, food, woollen clothes and physical fitness courses are appropriate articles. Baby food can be sold more easily by making an appeal to the parental instinct and the natural affection of the parents for their children.

4. Physical Sense Appeal: Appeals to physical senses evolve greater response. For example, food and beverage products are sold by inciting taste appeal. During summer, cold drinks can be effectively advertised with pictures of cool, refreshing summer drinks but during winter this advertisement would be a misfit if appeal is made to the sense of taste alone, a more viable approach would be to appeal to the instinct of self-preservation.

5. Positive Appeal: Appeals that follow positive approach are called positive appeal. They create situations under which prospects are likely to attain happiness and peace of mind with the possession of advertised goods. With a view to arouse product interest, the following positive emotional appeals are used e.g., appeals to comfort, healthy, living, family affection, pleasure, personal appearance, sympathy, love, pride etc. These appeals are positive because they create awareness under which prospects are likely to attain happiness and the mental satisfaction of possession of materials.

6. Negative Appeal : Negative appeals are those which follow negative approach. They normally include feelings like jealousy,anger, pain and fear. These are the unpleasant feelings and no prospect would desire to associate himself with frustration

It would be unwise to assume that negative appeals are ineffective. Sometimes they work very fast. We shall present a few negative appeals from illustrative advertisements. For example, Motwane Manufacturing Co., in its advertisement for Motwane Digital Millimeters used the negative appeal which gave striking impact.
Advertising campaign planning concerns many people in the advertising agency, but mainly concerns the advertising manager, account executive, marketing manager, creative director, media planner, and PR manager. They design and plan advertising campaign for the client. Planning is a process it includes various steps like, Prototype Stage, Initial Briefing by Client, Contact Report, Account Executive‟s Report to Agency Management, Account Executive‟s Briefing to Agency Department Heads, Proposition, Presentation to Client etc.

The reputation of Organisation, product, nature of customers, competition, price of the product, Competitor‟s price, channels of distribution, budget, Govt. regulations and controls etc are the various factors which affects on the Planning of an Advertising Campaign.Market Segmentation is a technique of dividing the market of a product into several homogenous groups. Under this technique, customers of a product are divided according to such common characteristics as age, sex, income level rural urban composition. The concept of market segmentation is based on the assumption that markets of all commodities are heterogeneous. For every product, there is a group of customers having different nature,buying habits, and attitudes. Two customers are not alike. They differ each other. On the basis of their characteristics, customers may be divided into several groups. These groups are formed on the basis of some similar qualities and such division is called Market Segmentation.
Segmentation is the process of partitioning a large heterogeneous market into smaller groups of people or businesses which show similar needs and/or characteristics. Markets can be segmented on the basis of different geographic units, demographic characteristics, Socio-Economic aspects, psychographical profiles of people, behaviou, product characteristics, different benefits that the consumers are expecting from a product, volume of purchases

etc.

QUESTIONS :

1. What is Advertising Campaign? Explain the importance of planing of an Advertising Campaign.

2. Explain the Process of Planning the Advertising Campaign

3. What are the steps in Advertising Campaign Planning?

4. What are factors influencing the Planning of an Advertising Campaign?

5. What are the bases of Market Segmentation?

6. Explain the importance of Market Segmentation.

7. Write short note on the following : a) DAGMAR Model b) AIDA c) Unique Selling Proposition (USP)

8. What are the essentials of a good advertising appeal? Explain the different types of appeals used in advertising.