NAME- SIDHARTH KUMAR

ROLL - 2314106770

PROGRAM-BACHELOR OF BUSINESS ADMINISTRATION (BBA)

COURSE CODE & NAME -DBB2105 ADVERTISING AND SALES

SET-1

Q.1 Define Advertising along with the history of the Advertising. In extension to the same
write five basic components of Advertising.

Ans. Advertising is a form of communication used to persuade an audience to take or

continue some action, usually to promote products, services, or ideas. It involves creating
messages and disseminating them through various media channels to reach a targeted
audience with the goal of influencing their purchasing decisions, shaping their perceptions, or
encouraging specific behaviors.

History of Advertising:

Ancient Advertising:

Early Forms: The roots of advertising can be traced back to ancient civilizations. Egyptians
used papyrus to make sales messages and wall posters. Greeks and Romans also employed
various methods to promote goods, such as public announcements and inscriptions on
buildings.

Middle Ages:

Town Criers: During the medieval period, town criers were a common method for spreading
news and advertising products or services. They would announce news and promote goods to
the public in town squares.

16th-17th Centuries:

Print Advertising: The invention of the printing press by Johannes Gutenberg in the 15th
century revolutionized advertising. The first printed advertisements appeared in the 16th
century, and newspapers began to include ads by the late 17th century.

19th Century:

Industrial Revolution: The rise of mass production and consumerism led to the growth of
advertising agencies. The use of billboards, magazines, and radio became prominent. Iconic
advertising campaigns and slogans started to emerge.

20th Century:

Radio and Television: The advent of radio in the 1920s and television in the 1940s introduced
new ways to reach consumers. Advertising became more sophisticated, with a focus on
branding and emotional appeals.

21st Century:
Digital Era: The internet, social media, and mobile technology transformed advertising.
Digital platforms allow for targeted advertising, interactive content, and real-time analytics.
Influencer marketing and data-driven strategies have become central to modern advertising.

Five Basic Components of Advertising:

Objective:

The goal or purpose of the advertisement. This could range from increasing brand awareness,
driving sales, launching a new product, or promoting a specific event. Clear objectives guide
the overall strategy and design of the advertising campaign.

Target Audience:

The specific group of consumers that the advertisement is aimed at. Understanding the
demographics, interests, and behaviors of the target audience helps tailor the message to
effectively reach and engage them.

Message:

The core idea or theme of the advertisement. This includes the content and information that
the ad seeks to communicate, often crafted to resonate with the target audience and align with
the overall objective.

Media Channels:

The platforms or outlets used to deliver the advertisement to the audience. This can include
traditional media like television, radio, and print, as well as digital media such as social
media, websites, and email.

Call to Action (CTA):

The specific action the advertiser wants the audience to take in response to the ad. Examples
include visiting a website, making a purchase, signing up for a newsletter, or calling a phone
number. A strong CTA helps drive the effectiveness of the ad by providing clear instructions
on what the audience should do next.

Q.2 Discuss Hierarchy-of-Effects Model of advertising in detail.

Ans. The Hierarchy-of-Effects Model is a framework used to understand and describe the
process by which advertising influences consumer behavior. It outlines the stages a consumer
typically goes through, from becoming aware of a product to making a purchase. The model
suggests that advertising must move consumers through a series of psychological and
behavioral steps to achieve its objectives.
Detailed Explanation of the Hierarchy-of-Effects Model:

Awareness:

Objective: To make the target audience aware of the product or brand.

Description: At this initial stage, the goal is to introduce the consumer to the product or
brand. This could be through exposure to advertisements, promotions, or other marketing
activities. The key is to ensure that the consumer knows the product exists and has some
basic information about it.

Interest:

Objective: To generate interest and curiosity about the product or brand.

Description: Once the consumer is aware of the product, the next step is to stimulate interest.
This involves creating engaging and compelling content that highlights the features, benefits,
or unique selling propositions of the product. The aim is to make the consumer want to learn
more about it.

Evaluation:

Objective: To encourage the consumer to consider the product as a viable option.

Description: At this stage, the consumer evaluates the product based on their needs,
preferences, and the information provided. They compare it with other options available in
the market. Advertising should provide persuasive arguments, testimonials, and comparisons
to facilitate this evaluation process and make the product stand out.

Trial:

Objective: To persuade the consumer to try or test the product.

Description: The goal here is to get the consumer to experience the product firsthand. This
might involve offering free samples, trials, or demonstrations. The objective is to lower the
perceived risk and encourage the consumer to take the next step towards purchase.

Adoption:

Objective: To convert the trial into a regular purchase and build brand loyalty.

Description: If the consumer is satisfied with the trial experience, they move to the adoption
stage, where they begin to make regular purchases. Advertising at this stage focuses on
reinforcing the positive aspects of the product, maintaining customer satisfaction, and
encouraging repeat purchases.
Loyalty:

Objective: To retain customers and build long-term loyalty.

Description: Once the consumer adopts the product, the goal is to nurture and maintain their
loyalty. This involves continuous engagement through personalized offers, loyalty programs,
and ongoing communication to keep the brand top-of-mind and ensure long-term customer
retention.

Key Points About the Hierarchy-of-Effects Model:

Sequential Process: The model assumes a sequential progression where each stage must be
completed before moving to the next. However, in reality, consumers may skip stages or
move back and forth between stages.

Consumer-Centric: The model focuses on understanding consumer behavior and designing

advertising strategies that align with how consumers make purchasing decisions.

Application in Advertising: Advertisers use this model to structure their campaigns, ensuring
that they address each stage of the consumer journey effectively. For example, awareness ads
might be broad and informative, while ads aimed at the trial stage may offer incentives or
demonstrations.

Variations: Different variations of the Hierarchy-of-Effects Model exist, including the AIDA
model (Attention, Interest, Desire, Action), which simplifies the stages but follows a similar
logic in understanding consumer behavior.

Q.3 Detail Print Advertising. Explain the various Characteristics of the Print Media, also to
include suitable examples to support your answer.

Ans. Print advertising refers to promotional messages delivered through tangible print media.
This form of advertising involves creating and distributing printed materials to reach a target
audience, with the goal of promoting products, services, or ideas. Print advertising is a
traditional yet enduring medium, which includes newspapers, magazines, brochures, flyers,
posters, and direct mail.

Characteristics of Print Media:

Tangibility:

Description: Print media provides a physical product that readers can hold, touch, and keep.
This tangibility can create a more lasting impression compared to digital media.
Example: A glossy magazine ad for a luxury car can be kept and referred back to, whereas a
digital ad might be quickly forgotten or lost among other online content.

Credibility and Trustworthiness:

Description: Print media often enjoys higher credibility and trustworthiness compared to
some digital formats. Established newspapers and magazines are considered reliable sources
of information.

Example: An ad in The New York Times or Vogue benefits from the newspaper's or
magazine's established reputation and perceived authority.

Targeted Audience:

Description: Print media allows for precise targeting based on the publication's audience.
Specific magazines or newspapers cater to niche markets or demographics.

Example: An ad for high-end fashion may be placed in Vogue, targeting fashion-conscious

readers, while a local home improvement store might use a regional newspaper.

Visual Impact:

Description: Print advertising allows for high-quality visuals, with options for full-color ads,
creative layouts, and high-resolution images that can grab attention.

Example: A full-page color ad in National Geographic showcasing exotic travel destinations

uses vivid imagery to entice potential travelers.

Longevity:

Description: Print materials can have a long shelf life. Magazines and brochures can be kept
for extended periods, allowing ads to be seen multiple times.

Example: A brochure detailing a luxury resort can remain on a potential customer's coffee
table or in their travel files for several months, keeping the brand top-of-mind.

Geographic and Demographic Reach:

Description: Print media can be localized to specific geographic areas, making it effective for
regional promotions. It can also target specific demographic groups based on the publication's
readership.

Example: Local newspapers or community magazines are ideal for advertising local events,
businesses, or services tailored to the community.

High Production Quality:

Description: Print media often involves high production values, including premium paper
quality, professional printing techniques, and meticulous design work.
Example: Luxury brands often use high-quality paper and printing methods in their brochures
and catalogs to reflect their premium positioning.

Limited Interactivity:

Description: Unlike digital media, print advertising lacks interactive elements. Readers
cannot click on a print ad to get more information or interact with the ad directly.

Example: A print ad in a magazine will provide information through text and images but will
not include interactive elements like clickable links or videos.

Cost:

Description: Print advertising can be expensive due to production costs, including printing
and distribution. However, it may offer good value depending on the target audience and
objectives.

Example: Placing a full-page ad in a national magazine like Time can be costly but can
provide significant exposure if the target market aligns well with the magazine's readership.

Examples of Print Advertising:

Newspapers:

Example: A local grocery store might run weekly ads in the community newspaper,
promoting special discounts and sales events. The newspaper's wide local distribution ensures
the ad reaches residents in the area.

Magazines:

Example: A new fashion brand might place a full-page ad in Vogue, showcasing its latest
collection with high-quality images and detailed descriptions aimed at fashion enthusiasts.

Brochures:

Example: A travel agency might produce a glossy brochure highlighting vacation packages,
complete with beautiful photos and detailed itineraries, distributed at travel fairs or sent via
direct mail.

Posters:

Example: A concert promoter might use posters placed in strategic locations like music
stores, cafes, and community boards to advertise an upcoming music festival.

Direct Mail:

Example: A real estate agency could send personalized postcards to households in a specific
area, offering information about new property listings and inviting recipients to open houses.
Print advertising continues to play a vital role in marketing strategies, offering a unique set of
benefits that complement digital advertising efforts. Its ability to deliver high-quality,
tangible, and targeted content makes it an effective choice for various advertising objectives.

SET-2

Q.4 Define Sales Management along with various Strategies of the same in detail, also to add
suitable examples to support your

Ans. Sales management is the process of planning, implementing, and controlling sales
strategies and activities to achieve organizational sales goals. It involves overseeing a sales
team, developing sales plans, setting objectives, managing performance, and optimizing the
sales process to maximize revenue and customer satisfaction. The aim of sales management is
to ensure that the sales force is effectively aligned with the company’s strategic objectives
and is operating efficiently to drive business growth.

Various Strategies of Sales Management:

Sales Planning and Strategy Development:

Description: Developing a comprehensive sales plan that outlines the sales targets, strategies,
and tactics for achieving organizational goals. This involves market research, setting sales
objectives, and creating a roadmap for the sales team.

Example: A technology company might develop a sales strategy to target enterprise clients by
offering customized solutions and establishing strategic partnerships. The plan would include
market analysis, competitive positioning, and specific sales tactics to engage potential clients.

Sales Force Training and Development:

Description: Investing in the training and development of sales personnel to enhance their
skills, knowledge, and effectiveness. This includes onboarding new sales staff, providing
ongoing training, and developing leadership skills within the sales team.

Example: A pharmaceutical company might implement a training program that educates sales
representatives on new drug products, compliance regulations, and effective sales techniques
to better engage healthcare professionals.

Sales Performance Management:

Description: Monitoring and evaluating the performance of the sales team to ensure they
meet or exceed sales targets. This includes setting performance metrics, conducting
performance reviews, and providing feedback and incentives.

Example: A retail chain could use performance metrics such as sales volume, conversion
rates, and customer satisfaction scores to assess individual sales associates. High performers
might receive bonuses or promotions, while those needing improvement may receive
additional training.

Customer Relationship Management (CRM):

Description: Implementing CRM systems to manage customer interactions, track sales

activities, and analyze customer data. CRM tools help sales teams understand customer
needs, improve communication, and enhance the customer experience.

Example: A B2B service provider might use a CRM system to track interactions with
potential clients, schedule follow-ups, and analyze sales pipeline data to identify
opportunities for upselling or cross-selling.

Sales Forecasting:

Description: Predicting future sales based on historical data, market trends, and economic
conditions. Accurate sales forecasting helps in setting realistic targets, managing inventory,
and planning marketing efforts.

Example: An automotive manufacturer might use historical sales data and market analysis to
forecast demand for new car models. This forecasting will inform production schedules,
marketing campaigns, and dealership inventory levels.

Sales Incentives and Compensation:

Description: Designing and implementing incentive programs to motivate and reward the
sales team. Compensation plans may include base salaries, commissions, bonuses, and other
performance-based rewards.

Example: A software company might offer a commission structure where sales

representatives earn a percentage of the revenue from each software license sold, with
additional bonuses for exceeding sales targets or securing large accounts.

Sales Process Optimization:

Description: Continuously improving the sales process to enhance efficiency and

effectiveness. This involves streamlining workflows, adopting best practices, and removing
bottlenecks in the sales cycle.

Example: An e-commerce company might implement an automated lead generation system

that captures and qualifies leads, allowing sales representatives to focus on high-value
prospects and reducing the time spent on manual lead management.

Market Segmentation and Targeting:

Description: Dividing the market into distinct segments based on factors such as
demographics, geography, and buying behavior, and targeting these segments with tailored
sales strategies.

Example: A fitness equipment company might segment the market into categories like home
gym users, commercial gyms, and wellness centers, and develop specific sales approaches for
each segment, such as special offers for home users and bulk discounts for commercial
buyers.

Sales Channel Management:

Description: Managing and optimizing the various sales channels through which products or
services are sold, including direct sales, online platforms, distributors, and retail partners.

Example: A consumer electronics brand might use a multi-channel approach, selling directly
through its website, through major electronics retailers, and via online marketplaces like
Amazon. Each channel is managed with specific strategies to maximize reach and sales.

Customer Feedback and Market Research:

Description: Gathering and analyzing customer feedback and market research to understand
customer needs, preferences, and trends. This information helps in refining sales strategies
and improving products or services.

Example: A restaurant chain might conduct customer satisfaction surveys and analyze market
trends to identify popular menu items and areas for improvement. Insights gained from this
research can be used to adjust sales strategies and enhance the dining experience.

Examples to Support the Strategies:

Sales Planning and Strategy Development: Apple’s strategic focus on innovation and
premium branding drives its sales strategies, including product launches and targeted
marketing campaigns.

Sales Force Training and Development: Salesforce provides comprehensive training

programs for its sales representatives, focusing on CRM product knowledge, sales
techniques, and customer engagement strategies.

Sales Performance Management: Coca-Cola uses sales performance metrics to evaluate the
effectiveness of its sales teams and drive performance improvements across its distribution
network.

Customer Relationship Management (CRM): HubSpot offers a CRM platform that helps
businesses manage customer interactions, track sales activities, and analyze data to improve
sales outcomes.

Sales Forecasting: Procter & Gamble uses advanced forecasting models to predict demand for
its consumer products, ensuring optimal inventory levels and effective marketing campaigns.
Sales Incentives and Compensation: IBM’s sales compensation plans include performance-
based bonuses and commissions, motivating sales teams to achieve and exceed targets.

Sales Process Optimization: Amazon’s use of data-driven insights and automation in its sales
process helps streamline order fulfillment, improve customer satisfaction, and boost sales
efficiency.

Market Segmentation and Targeting: Nike segments its market into categories such as
athletes, casual wearers, and sports enthusiasts, tailoring its marketing and sales strategies to
each group.

Sales Channel Management: Dell’s direct-to-consumer sales model allows customers to

configure and purchase computers online, while its retail partners and distributors help reach
broader markets.

Customer Feedback and Market Research: Starbucks uses customer feedback and market
research to develop new products, improve existing offerings, and enhance the overall
customer experience in its stores.

Sales management is a multifaceted discipline that requires strategic planning, effective team
management, and ongoing optimization to drive successful outcomes and achieve business
objectives.

Q.5 Detail the concept of Personal Selling. Also, to discuss the various objectives of Personal
Selling.

Ans. Personal selling is a direct, face-to-face communication process where a sales

representative engages with potential customers to promote and sell products or services.
Unlike mass marketing, which targets large audiences through media and advertising,
personal selling focuses on building relationships with individual customers or business
clients. This approach allows sales representatives to tailor their pitch, address specific needs,
and provide personalized solutions.

Key Features of Personal Selling:

Interpersonal Interaction:

Personal selling involves direct interaction between the salesperson and the customer,
allowing for a more personalized and responsive approach compared to other forms of
marketing.

Customizable Communication:

Sales representatives can adapt their message based on the customer’s needs, preferences, and
responses, making the selling process more relevant and engaging.
Relationship Building:

Personal selling aims to build long-term relationships with customers by understanding their
needs, providing solutions, and maintaining ongoing communication and support.

Feedback and Adaptation:

Sales representatives receive immediate feedback from customers, which can be used to
adjust their approach, address objections, and refine their sales techniques.

Persuasion and Negotiation:

Personal selling often involves persuasive communication and negotiation skills to influence
customers' purchasing decisions and close sales effectively.

Various Objectives of Personal Selling:

Generate Leads:

Objective: To identify and attract potential customers who may be interested in the product or
service.

Explanation: Sales representatives engage in activities such as networking, prospecting, and

attending industry events to generate leads. Effective lead generation helps build a pipeline of
potential customers.

Example: A real estate agent might attend local community events and use referrals to
generate leads for new homebuyers.

Build Relationships:

Objective: To establish and maintain strong relationships with customers.

Explanation: Building trust and rapport with customers is crucial for fostering long-term
relationships. Sales representatives focus on understanding customer needs, providing value,
and maintaining regular communication.

Example: A financial advisor meets regularly with clients to discuss their investment
portfolios and provide personalized financial advice.

Educate Customers:

Objective: To inform customers about the features, benefits, and value of the product or
service.

Explanation: Sales representatives provide detailed information and demonstrations to help

customers understand how the product or service meets their needs and solves their problems.
Example: A technology salesperson conducts a product demo to show how a new software
solution can improve a company's operational efficiency.

Close Sales:

Objective: To convert potential leads into actual sales by persuading customers to make a
purchase.

Explanation: Sales representatives use various techniques to address objections, negotiate

terms, and finalize transactions. The goal is to secure a commitment from the customer and
complete the sale.

Example: A car salesperson negotiates the final price, trade-in value, and financing options to
close a deal with a prospective buyer.

Increase Customer Satisfaction:

Objective: To ensure that customers are satisfied with their purchase and the overall buying
experience.

Explanation: Providing excellent customer service, addressing concerns, and offering post-
sale support contribute to higher customer satisfaction and encourage repeat business and
referrals.

Example: A salesperson at a furniture store follows up with customers after delivery to ensure
they are happy with their purchase and address any issues that may arise.

Enhance Brand Image:

Objective: To positively represent and enhance the company’s brand image through
professional and effective personal interactions.

Explanation: Sales representatives play a crucial role in shaping the brand's perception by
demonstrating professionalism, expertise, and customer-centric attitudes.

Example: A luxury brand’s sales associate delivers exceptional service, reinforcing the
brand's reputation for quality and exclusivity.

Gather Market Intelligence:

Objective: To collect valuable information about market trends, customer preferences, and
competitive dynamics.

Explanation: Sales representatives gather insights through customer interactions and

feedback, which can be used to inform marketing strategies, product development, and
competitive positioning.

Example: A B2B salesperson notes that customers are increasingly interested in eco-friendly
products and reports this trend back to the product development team.
Cross-Sell and Upsell:

Objective: To increase the overall value of the sale by offering additional or complementary
products and services.

Explanation: Sales representatives identify opportunities to suggest additional products or

upgrades that enhance the customer’s original purchase.

Example: An electronics salesperson suggests a premium warranty plan or related accessories

when a customer buys a new smartphone.

Conclusion:

Personal selling is a dynamic and interactive process that plays a crucial role in achieving
sales objectives and fostering customer relationships. By focusing on lead generation,
relationship building, customer education, sales closure, satisfaction, brand enhancement,
market intelligence, and cross-selling, personal selling enables businesses to tailor their
approach to individual customers, address specific needs, and drive revenue growth. The
effectiveness of personal selling relies on the salesperson’s ability to connect with customers,
provide value, and deliver a positive buying experience.

Q.6 Explain various types of Sales Organization Structures, also to include suitable examples
to support your answer.

Ans. Sales organization structures define how a company organizes its sales teams and
activities to achieve its sales objectives. The structure can significantly impact the efficiency,
effectiveness, and overall success of the sales function. Various types of sales organization
structures cater to different business models, product types, and market conditions. Here are
the key types of sales organization structures along with suitable examples:

1. Geographical Sales Structure

Description:

In a geographical sales structure, the sales force is divided based on geographical regions or
territories. Each sales representative or team is responsible for sales activities within a
specific area.

Advantages:
Localized approach helps in understanding regional market conditions and customer
preferences.

Efficient for companies with a wide geographical footprint.

Reduces travel time and expenses for sales representatives.

Example:

Procter & Gamble (P&G): P&G uses a geographical structure to manage its extensive global
operations. Sales teams are organized by regions such as North America, Europe, and Asia-
Pacific, allowing them to address regional market needs and adapt strategies accordingly.

2. Product-Based Sales Structure

Description:

In a product-based sales structure, the sales force is organized based on the product lines or
categories. Each sales team specializes in a specific product or product group.

Advantages:

Sales teams can develop deep expertise in their specific product areas.

Effective for companies with a diverse product range or complex products.

Facilitates focused marketing and sales strategies for each product line.

Example:

IBM: IBM organizes its sales teams around its various product lines such as hardware,
software, and cloud services. Each team is specialized in its product area, allowing for more
effective sales and support.

3. Customer-Based Sales Structure

Description:

In a customer-based sales structure, the sales force is organized according to different

customer segments or types, such as major accounts, small businesses, or specific industries.
Advantages:

Tailors sales approaches and strategies to specific customer needs and preferences.

Builds stronger relationships with different types of customers.

Enhances customer service and support.

Example:

Cisco Systems: Cisco organizes its sales teams based on customer segments, such as
enterprise customers, service providers, and small-to-medium businesses (SMBs). This
allows Cisco to tailor its sales efforts to the unique needs of each segment.

4. Functional Sales Structure

Description:

In a functional sales structure, the sales force is organized by different sales functions or
roles, such as lead generation, account management, and sales support. Each function is
handled by specialized teams.

Advantages:

Specialization in specific functions can increase efficiency and effectiveness.

Clear division of labor and expertise.

Allows for detailed focus on different aspects of the sales process.

Example:

Salesforce: Salesforce uses a functional sales structure where there are specialized teams for
lead generation, sales operations, and customer success. Each team focuses on a specific
aspect of the sales process, contributing to overall sales effectiveness.

5. Hybrid Sales Structure

Description:
A hybrid sales structure combines elements of the above structures. It integrates various
organizational approaches to address the complexities of the market and product offerings.

Advantages:

Flexible and adaptable to different market needs and business models.

Can leverage the benefits of multiple structures.

Provides a balanced approach to managing sales teams and activities.

Example:

General Electric (GE): GE uses a hybrid structure where sales teams are organized by product
lines, customer segments, and geographical regions. This allows GE to address diverse
customer needs and market conditions effectively.

6. Matrix Sales Structure

Description:

In a matrix sales structure, sales teams are organized by both product lines and geographical
regions or customer segments. This structure creates a grid where sales representatives report
to both product and regional or segment managers.

Advantages:

Facilitates coordination between different functions and regions.

Provides a comprehensive view of sales activities and performance.

Enhances flexibility and responsiveness to market changes.

Example:

Microsoft: Microsoft employs a matrix sales structure where sales teams operate across
different product divisions (e.g., Windows, Office, Azure) and customer segments (e.g.,
enterprise, education). This structure allows Microsoft to align its sales efforts with both
product and customer needs.

7. Channel-Based Sales Structure

Description:

In a channel-based sales structure, the sales force is organized according to different sales
channels, such as direct sales, distributors, or partners.

Advantages:

Optimizes sales strategies for each channel.

Enhances focus on channel-specific goals and performance.

Allows for effective channel management and support.

Example:

Sony: Sony manages its sales through multiple channels, including direct sales through its
own stores and online platforms, as well as indirect sales through distributors and retail
partners. This channel-based structure helps Sony cater to various customer preferences and
distribution needs.

Conclusion

Each sales organization structure offers distinct advantages and is suited to different business
models, product types, and market conditions. Choosing the right structure depends on
factors such as the company's size, product range, target markets, and strategic goals. By
selecting and implementing an appropriate sales organization structure, companies can
enhance their sales effectiveness, improve customer satisfaction, and drive business growth.