Distribution Channel

CHANNELS OF DISTRIBUTION
“Channels of distribution refer to the different businesses or
intermediaries lined up in a chain. Through this pipeline, various goods
and services of the company will pass before reaching the customer.
These channels are retailers, distributors, wholesalers, and many more.”
A distribution channel is a path or route decided by the company to
deliver its good or service to the customers. The route can be as short as
a direct interaction between the company and the customer or can
include several interconnected intermediaries like wholesalers,
distributors, retailers, etc.
A distribution channel is a path by which all goods and services travel to
arrive at the intended consumer. Distribution channels can be short or
long, and depend on the number of intermediaries required to deliver a
product or service.
Components of a Distribution Channel
• Producer: Producers combine labor and capital to create goods and
services for consumers.
• Agent: Agents commonly act on behalf of the producer to accept
payments and transfer the title of the goods and services as it moves
through distribution.
• Wholesaler: A person or company that sells large quantities of goods,
often at low prices, to retailers.
• Retailer: A person or business that sells goods to the public in small
quantities for immediate use or consumption.
• End Consumer: A person who buys a product or service.
Functions Of Distribution Channel
•Assembling, storing, bulk breaking, and sorting of products
•Moving goods from warehouses to customers
•Managing payment flow pre-sales or post-purchases
•Providing market information to producers
•Promoting the brand and its benefits to end-customers
•Maintaining price stability by absorbing any price increase
•Sharing the market risk with manufacturers
•Getting a chance to promote themselves through the distribution of products
Types of Distribution Channels
Channels of distribution can be divided into direct channel and indirect channels.
Indirect channels can further be divided into one-level, two-level, and three-level
channels based on the number of intermediaries between manufacturers and
customers.
Types of Distribution Channels
Channels of distribution can be divided into direct channel and indirect channels.
Indirect channels can further be divided into one-level, two-level, and three-level
channels based on the number of intermediaries between manufacturers and
customers.
Direct Channel Or Zero-level Channel (Manufacturer to Customer)
A direct channel allows the consumer to make purchases from the manufacturer.
This direct, or short channel, may mean lower costs for consumers because they
are buying directly from the manufacturer.
• Brick-and-mortar retail stores
• Your own e-commerce site
• Direct mail/catalog sales
• Pop-up shops
Types of Distribution Channels
Indirect Channels (Selling Through Intermediaries)
An indirect channel allows the consumer to buy the goods from a wholesaler or retailer. Indirect channels
are typical for goods that are sold in traditional brick-and-mortar stores.
When a manufacturer involves a middleman/intermediary to sell its product to the end customer, it is said
to be using an indirect channel. Indirect channels can be classified into three types:
One-level Channel (Manufacturer to Retailer to Customer)
Retailers buy the product from the manufacturer and then sell it to the customers. One level channel of
distribution works best for manufacturers dealing in shopping goods like clothes, shoes, furniture, toys, etc.
Two-Level Channel (Manufacturer to Wholesaler to Retailer to Customer)
Wholesalers buy the bulk from the manufacturers, break it down into small packages and sell them to
retailers who eventually sell them to the end customers. Goods that are durable, standardised and
somewhat inexpensive and whose target audience isn’t limited to a confined area use two-level channel of
distribution.
Three-Level Channel (Manufacturer to Agent to Wholesaler to Retailer to Customer)
Three-level channel of distribution involves an agent besides the wholesaler and retailer who assists in
selling goods. These agents come in handy when goods need to move quickly into the market soon after the
order is placed. They are given the duty to handle the product distribution of a specified area or district in
return for a certain percentage of commission.
Types of Distribution Channels
Indirect Channels (Selling Through Intermediaries)
• Selling to wholesalers who then sell to retailers
• Using Amazon Fulfillment to store and ship products
• Partnering with retailers to get your products to the customers
Types of Distribution Channels
Hybrid
Hybrid distribution channels use both direct channels and indirect
channels. A product or service manufacturer may use both a retailer to
distribute a product or service and may also make sales directly with
the consumer.
Trends in Distribution Channels
Distribution channels continue to evolve rapidly thanks to technology and changing consumer
behavior. Let’s look at some current trends shaping the future of getting products to customers:
• Direct-to-consumer – More brands are exploring direct sales channels, from opening their stores
to branded e-commerce. Nike and Warby Parker show how powerful owning the customer
experience can be.
• Omnichannel commerce – Retailers are pursuing true omnichannel strategies with seamless
sales across in-store, online, mobile, etc. Walmart and Target are leaders here.
• Online marketplaces – Platforms like Amazon, eBay, and Etsy remain go-to online sales channels,
especially for small sellers. Their massive reach expands distribution.
• Social commerce – Social media platforms are launching integrated shopping. Instagram
Checkout and livestream selling open new direct sales channels.
• Subscription models – Subscription commerce startups like Dollar Shave Club ship products
directly on a schedule. This guarantees recurring sales.
• Pop-up shops – Temporary retail spaces allow flexible physical footprints to drive awareness and
sales. They can easily tie into broader direct-to-consumer strategies.
• Delivery innovations – New ultra-fast shipping options from Amazon and startup delivery
services raise consumer expectations of speed and convenience.
Channel Management
The term Channel Management is widely used in sales marketing parlance. It is
defined as a process where the company develops various marketing techniques
as well as sales strategies to reach the widest possible customer base. The
channels are nothing but ways or outlets to market and sell products.
Gartner sales glossary defines channel management as a company's engagement
activities related to selecting, enabling and compensating indirect channel
partners
Channel Management is a term which is very rigorously used in sales marketing.
It is a concept wherein several techniques are used to develop various
marketing and sales techniques.
Channel management decisions are crucial for firms to spread their goods or
services. These decisions define how goods will reach buyers and play a vital
role in earning firm goals.
Importance of Channel Management
A well-crafted channel management strategy is vital for myriad reasons:
Market Expansion: Proficient channel management facilitates business expansion
into new customer segments and geographical territories.
Customer Satisfaction: Ensuring product availability per customer expectations
significantly boosts satisfaction and loyalty.
Competitive Edge: A sound channel management strategy can give companies a
competitive advantage, distinguishing them through superior channel
partnerships and customer service.
Operational Efficiency: Optimising channel operations can lead to heightened
efficiency and cost savings, courtesy of better inventory management and
streamlined distribution.
Brand Consistency: Effective channel management guarantees consistent brand
messaging and customer experience across all touchpoints, reinforcing brand
identity and values.
Types of Channel Management
Delving into the channel management definition, we find it can manifest in several forms,
each with distinct characteristics and strategic imperatives:
Direct Channel Management: This model involves selling products directly to consumers
sans intermediaries. Examples include company-owned stores, e-commerce websites,
and direct mail campaigns.
Indirect Channel Management: Here, products are sold through intermediaries like
wholesalers, distributors, and retailers. This approach aids in broadening market reach
and capitalising on the expertise of channel partners.
Hybrid Channel Management: A blend of direct and indirect channels, this approach is
adopted by companies aiming to maximise market penetration and cater to diverse
customer preferences.
Multi-Channel Management: This involves managing multiple, distinct channels that
target different market segments or offer varied purchasing experiences.
Omnichannel Management: An evolved form of multi-channel management,
omnichannel focuses on delivering a cohesive customer experience across all channels,
whether online or offline
Channel Management Process
The channel management process encompasses several critical steps:
Channel Selection: Identifying and selecting the most suitable channels based on the
target market, product attributes, and company goals.
Partner Recruitment and Selection: Choosing the right channel partners who resonate
with the company's ethos and can effectively reach the target customers.
Contract Negotiation: Establishing clear terms delineating all parties' responsibilities,
expectations, and incentives.
Training and Support: Equipping channel partners with the requisite training and support
to market and sell the products proficiently.
Performance Monitoring: Continuously assess channel performance against predefined
metrics and make necessary adjustments to optimise outcomes.
Conflict Resolution: Addressing any disputes or issues with channel partners promptly
and constructively.
Continuous Improvement: Seeking perpetual enhancements in channel operations and
relationships for sustained success.
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Channel Management Decisions Process
Selecting Channel Members:
Selecting the channel members would be the most crucial decision the manufacturer will take.
The channel management decision will be taken keeping the following things in mind:
a) if the firm's values will be taken to the end consumer by the channel members and thus form
the face of the organization itself?
b) Any backlash the company might incur can be because of a small mistake done by the final
channel member, and this would mean loss of reputation
c) Characteristics that should be kept in mind while selecting the channel members
 Number Of Years In Business- gives an idea of intermediaries' consistence performance.
 Financial Record- gives an idea of their creditworthiness.
 Service Reputation gives a picture of their credibility to carry the brand forward.
 Location-gives an idea of whether they can meet the sales targets.
 Growth Potential- the growth of intermediary, gives an idea of potential growth on that
particular channel.
 Cooperativeness-given an idea of how easy or difficult it would be to perform business with
the intermediary.
Channel Management Decisions Process
 Selecting Channel Members
 Training of Channel Members
 Evaluating Channel Members
 Channel Evolution
 Channel Modification decision
 Global Channel Consideration
Channel Management Decisions Process
II) Training of Channel Members: This part of the channel management decision can be
looked at it an HR ft. The marketing aspect of Marketing Channel Strategies. Training the
channel members to perpetuate the company's values among the intermediaries
effectively will improve performance.
A few methods by which a behavioural change can be brought about among the
intermediaries. These are classical influence techniques seen in the HR domain which
showcase how higher-ups can use power to bring about change. Types of power are:
Coercive Power: Can be used to ascertain authority via force of severe repercussions if
not cooperating
Reward Power: performance-linked bonuses can be given. If the stick in the above
situation didn't work, the carrot here would be bringing about the change.
Legitimate Power: source of power from legal provisions. One difference between
coercive power and legitimate power would be that in coercive power, one uses forces,
but in legitimate power, one reiterates the positions of legal avenues
Expert Power: the technical know-how of the product lies with the manufacturer, which
can be leveraged to pass on the knowledge to the channel intermediaries.
Channel Management Decisions Process
III) Evaluating Channel Members: It Speaks about how X
responsibilities given to the intermediaries have Z financial
implications on the firm. Every channel member should be
periodically evaluated to see if the channel of sale is still profitable
after the expenses. The parameters to assess the members would be
Sales Attainment Quota: if the sales targets are met
Average Inventory Levels: will give us an estimation of movement of
goods on one particular channel via that specific channel member
Customer Delivery Time And Costs associated with the return of
damaged products on the channel.
Channel Management Decisions Process
IV) Channel Evolution: Channels evolve that adaptability of the channel
should be a prime consideration in channel design decisions. This
adaptability is not just due to external factors but also due to internal
concerns.
During the channel life cycle, the products reach keeps increasing till the
maturity phase is reached. This growth should be predicted to keep the
channel delivery load optimal for each stage.
V) Channel Modification decision: While channel evolution is
accommodating the natural progression of the product life cycle, channel
modification decisions would be to accommodate any unseen changes
which might necessitate the robustness in the channel.
VI) Global Channel Consideration: Future chance of expansion will also be
in the back of the mind when deciding the channel and further while
maintaining the channel
Retailing and Wholesaling
Retailing and Wholesaling consists of all the activities which includes the selling
of goods and services directly to the end consumers for their personal use or
for non professional use. A retail market is an enterprise where all the goods
are available under one room serving for the purpose of convenience to the
customers and whose large sales volume comes from the process of retailing
Wholesaling
Wholesalers act as an intermediary between the manufacturer and the retailer.
They buy products at a large scale from select manufacturers. Wholesalers
then distribute these goods to their customers - retailers or smaller
businesses. Wholesalers operate in business-to-business (B2B) industries.
Wholesaling is the process of acquiring products from manufacturers at a large
scale and distributing them at a smaller scale to retailers or other businesses.
Retailing and Wholesaling
Retailers
Retailers buy products at a smaller scale than wholesalers, but they can
offer many more varieties of products than wholesalers. This is
because retailers buy from different wholesalers, and as retailing is a
business-to-customer (B2C) business, their customers will likely
purchase in smaller quantities.
Retailing is the process of purchasing products from wholesalers and
distributing them to end-users.
Retailing and Wholesaling
Wholesalers
Wholesalers can be broadly classified into three types - merchant wholesalers, brokers and agents, and
manufacturers' and retailers' branches and offices
Merchant Wholesalers
Merchant wholesalers can be divided into two types:
1. Full-Service wholesalers provide many services - they maintain stock and a sales force, offer credit, deliver,
and provide management aid. They can be further divided into:
 Wholesale merchants - primarily sell to retailers.
 Industrial distributors - primarily sell to manufacturers.

2. Limited-Service Wholesalers provide fewer services and can be categorised as:

 Cash-and-carry wholesalers - sell a limited line of fast-moving products sold to small retailers for cash.
 Truck wholesalers or Truck jobbers - deliver and sell semi-perishable merchandise to supermarkets,
grocers, restaurants, etc., for cash.
 Mail-order or Web-wholesalers - maintain websites/catalogues for retailers to order online.
 Drop shippers - set up a website where buyers can order products, but the seller does not stock these
products. On receiving an order, they select a manufacturer, who then ships the merchandise directly to
the customer.
Retailing and Wholesaling
Brokers and Agents
Brokers facilitate buying and selling for a particular customer type and
specialise in a product line. They enable the sale of a product to the
customer, from which they earn a commission.
Agents represent buyers or sellers for long periods. They can be classified into:
Manufacturers' agents - Often represent furniture or apparel manufacturers.
Helps small manufacturers with field sales and larger manufacturers with
entering new territories.
Selling agents - sell a manufacturer's entire production under a contractual
agreement.
Purchasing agents - make purchases for the representing buyer.
Commission merchants - often seen in agricultural marketing. Commission
merchants bring the product to the market, sell it for the highest price
possible, and deduct a commission.
Retailing and Wholesaling
Manufacturers' And Retailers' Branches And Offices
These are offices operated by manufacturers where they sell their
products that have been manufactured at their plant.
Sales branches and offices - set up to improve stock control, sales
and promotion.
Purchasing offices - part of an organisation responsible for procuring
goods.
Retailing and Wholesaling
Retailers
We can see a wide variety of retail stores around. Some may be local; others may be
international or global stores. Listed below are the various types of retail stores.
Speciality stores - offer a narrow range of product lines such as clothing or furniture -
e.g. Freddie's flowers.
Department stores - offer various product lines - e.g. Marks & Spencer.
Supermarkets - offer a wide variety of items, usually at low prices and high volumes.
They aim to meet customers' household needs - e.g. Tesco.
Convenience stores - small stores open for longer hours, often charging higher prices
near residential areas - e.g. 7-Eleven.
Superstores - stores that meet all customer needs - food and non-food items. E.g.
Costco.
Discount stores - sell standard products at a discounted price - e.g. Lidl.
Off-price retailers - buy from wholesalers at a lower price than usual and sell at a
lower price than seen in the market - e.g. TJX stores.
Promotion Mix
A promotion mix is a set of different marketing approaches marketers
develop to optimize promotional efforts and reach a broader audience.
Promotion mix is a combination of different marketing communication tools
or tactics that a company uses to promote its products or services to its
target audience.
The promotion mix for a business includes elements such as:
• Advertising
• Sales promotions
• Public relations
• Personal selling
• Direct marketing
• Digital marketing, etc. https://www.google.com/search?
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Purpose and Importance of Promotion
1. Increase Brand Awareness: Promotion makes potential consumers aware of what is
available on the market. Businesses may convey their brand message, values, etc., to
a vast number of people through several promotional activities increasing their
brand awareness, loyalty, and trust among the customers.
2. Recall Brand Value: Businesses may improve the image of their brands and survive
competition in the market by promoting their products regularly. Promotions can
draw attention to a brand’s distinct qualities, such as superior quality, reliability, or
outstanding customer service.
3. Increase Customer Traffic: Promotions can attract more customers and increase
customer traffic. Time-limited promotional activities like contests, giveaways, or
samples can generate interest among customers and create opportunities for sale.
This also acts as a platform for building long-term relations with the customers.
4. Increase Sales and Profits: One of the main purposes of marketing is to increase the
sales of the business. Once the customers are properly made aware of the product
or service, they buy those products that they find worthy of purchase. This helps the
seller to sell more products and draw more customers.
Characteristics of Promotion
1. Providing Information: One of the main characteristics of promotion is to persuade
potential consumers to purchase their products or services. This can be done by providing
information about the qualities, advantages, and values of the product or services known
to the customers. This creates a subconscious desire among the buyers to purchase that
product.
2. Limited Time: Promotions are often time-limited.
For example, advertisements on TV, contests, or giveaways are all promotional activities
that are limited up to a specific time. As a result, both customers and sellers have to act in
that limited time frame. Also, doing these promotional activities regularly keeps the
customers interested.
3. Different Channels of Approach: There are several ways through which the seller can
promote its brand product or services. Some of these platforms include media, such as
television, radio, print ads, and direct mail, as well as electronic media, such as websites,
emails, social media, and search engine marketing. These channels make it easier to reach
more customers and increase sales.
Characteristics of Promotion
4. Adapt to Changes: Promotional activities must be by the changes in the economic as well
as technological world. Earlier, the companies would advertise their brand’s product, or
services through mediums like newspapers or posters, etc. But now, with the technological
change, the interest of a large number of audiences has shifted to electronic media.
Therefore, promotions can also be done through online platforms such as social media.
5. Building Awareness: Promotion helps to create awareness about a product service or brand
among the target audience. This allows the customers to know about the existence and the
usage of the product. Promotional activities such as advertisements, public relations, and
social media campaigns play a significant role in building awareness.
6. Creating Interest: The main purpose of promotion is to generate positive interest and
impression among the buyers. This encourages the customers to further explore the products.
Promotional activities like engaging in campaigns or brand messages can catch the attention
of people and generate curiosity.
7. Reinforcing: Promotion does not only include creating customers but also has the role of
reinforcing the loyalty of existing customers. This can be done by keeping the existing
customers informed and updated about their products with the help of promotional
campaigns. This builds trust and loyalty among the customers and they are encouraged to
repeat their purchases.
What is advertising?
Advertising is the techniques and practices used to bring products,
services, opinions, or causes to public notice to persuade the public to
respond in a certain way toward what is advertised.
Advertising is the action of calling public attention to an idea, good, or
service through paid announcements by an identified sponsor.
Advertisement
Advertisement means a written, oral, or electronic communication that
an ordinary person would perceive is designed to influence, directly
or indirectly, a decision regarding goods or services.
Any paid form of non- personal presentation and promotion of ideas,
goods or services through mass media such as newspapers,
magazines, television or radio by an identified sponso
OBJECTIVES OF ADVERTISEMENT
To increase support: advertising increases the morale of the sales
force and of distributors, wholesalers and retailers.
To stimulate sales amongst present, former and future customers. It
involves decision regarding the media.
To retain loyalty: to retain loyalty of present and former consumers.
To protect an image: advertising is used to promote an overall image
of respect and trust for an organization.
To communicate with consumers: this involves regarding copy.
OBJECTIVES OF ADVERTISING
There are 3 main objectives of advertising. These are:
To Inform Advertisements are used to increase the brand awareness and brand exposure in the target market.
Informing the potential customers about the brand and its products is the first step towards attaining business
goals.
To Persuade Persuading customers to perform a particular task is a prominent objective of advertising. The
tasks may involve buying or trying the products and services offered, to from a brand image, develop a
favourable attitude towards the brand etc.
To Remind Another objective of advertising is to reinforce the brand message and to reassure the existing and
potential customers about the brand vision. Advertising helps the brand to maintain top of mind awareness
and to avoid competitors stealing the customers. This also helps in the word of mouth marketing.
Other objectives of advertising are subsets of these three objectives.
These subsets are:
 Brand Building
 Increasing Sales
 Creating Demand
 Engagement
 Expanding Customer Base
 Changing Customers’ attitudes, etc
ADVERTISING BUDGET
An advertising budget is an estimate of a company's promotional expenditures over a
certain time period. More importantly, it is the money a company is willing to set aside to
accomplish its marketing objectives.
An advertising budget is an amount set aside by a company planned for the promotion of its
goods and services. Promotional activities include conducting a market survey, getting
advertisement creatives made and printed, promotion by way of print media, digital
media, and social media, running ad campaigns, etc.
Advertising Budget Basis
The advertising budget of a company is based on the following factors:
Type of advertising campaign that it intends to run
Selection of target audience
Type of advertising media
Company’s objective of advertising
Process of Creating Advertising Budget
The following steps are followed to set up this budget –
• Setting advertising goals based on the company’s objectives.
• Determine the activities that are required to be done.
• Preparing the components of the advertising budget;
• Getting the budget approved by management;
• Allocation of funds for activities proposed under the advertisement plan;
• Periodically monitoring the expenses being incurred during the advertising process;
Advertising Budget Methods
Advertising Budget Methods
The most common methods are discussed as follows:
• Percentage of Sales: Under this method, the advertising budget is set as a percentage of either
the past sale or expected future sales. Small businesses usually use this method.
• Competitive Parity: This method advocates that a company sets an advertising budget similar to
the one set up by its competitor to yield similar results.
• Objective and Task: This method is based on the advertising objectives of this method. Once the
objectives are decided, the cost is estimated to complete those objectives, and accordingly, a
marketing budget is set.
• Market Share: In this method, the advertising budget is based on a company’s market share. For
a higher market share, less marketing budget is set.
• All available Funds: This is a very aggressive method under which all available profits are
allocated towards advertising activities. This method can be used by start-up businesses that need
advertisements to attract customers.
• Unit Sales: Under this method, the advertisement cost per article is calculated and based on the
total number of articles, it is set.
• Affordable: As the name suggests, the company sets its budget based on how much it can afford.
Advertising Strategies
• Social Media Marketing: One can start by making profiles of the businesses on social media
platforms like Facebook and Instagram, which can help reach out to larger audiences cost-
effectively.
• Referral Benefits: In this strategy, you ask your customers to refer your business pages to their
friends and family. This way, your customers do the marketing for you. You provide referral
benefits and points when such referrals are buying the products.
• Content Marketing: Start a blog and update interesting content that attracts your audiences. This
strategy, combined with other strategies, will benefit the business.
• Email Marketing: This strategy will depend on your database’s strength and relevance.
• Pay per click ad: In this strategy, you pay per ad you run on social media platforms. Based on your
selected target audience, the ad is run and reaches the audience.

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Copy Designing And Its Testing
Advertising copy can be said as text of a print, radio, or television advertising message that aims at
catching and holding the interest of the prospective buyer, and at persuading him or her to make a
purchase all within a few short seconds. A copy in essence describes the advertisement in words
irrespective of the medium of advertising. A copy employes the use of words to promote a product,
business, idea or person.
Components Of Advertising Copy
1. Headline. headlines may be a label, may be informative, provocative, selective, direct command
or question.
2. Sub headline. smaller to headline but effective several times.
3. Slogans.
4. Illustrations.
5. Text or body of the copy.
6. Closing of the copy.
7. Logo or identification mark.

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Advertising Copy Designing
Advertising copy designing means arrangement of various components to make effective
advertisement. The right place of headline, sub headline, slogans, text, illustrations, closure and
logo are important here. In the audio visual commercials, advertisement design is also known as
story board or timeline which is a series of pictures with audio to run on the screen in a coordinated
manner to make the full video feel.
Selecting theme is very important for any advertisement copy. Themes can be humour, tragedy, pity,
pride, beauty, sex, ethnocentrism etc..
Advertising Copy Designing
Copy testing
The set of nine principles, called PACT (Positioning Advertising Copy Testing), defines copy testing as
research which is undertaken when a decision is to be made about whether advertising should run in
the marketplace. Whether this stage utilizes a single test or a combination of tests, its purpose is to aid
in the judgment of specific advertising executions.
Positioning Advertising Copy Testing (PACT) principles.
 Provide measurements that are relevant to the objectives of the advertising.
 Require agreement about how the results will be used in advance of each specific test.
 Provide multiple measurements (because single measurements are not adequate to assess ad
performance).
 Be based on a model of human response to communications—the reception of a stimulus, the
comprehension of the stimulus, and the response to the stimulus.
 Allow for consideration of whether the advertising stimulus should be exposed more than once.
 Require that the more finished a piece of copy is, the more soundly it can be evaluated and, as a
minimum, that alternative executions be tested in the same degree of finish.
 Provide controls to avoid the biasing effects of the exposure context.
 Take into account basic considerations of sample definition.
 Demonstrate reliability and validity.
The Copy Testing Process
Testing may occur at various points throughout the development of an ad or a campaign: (1)
concept generation research, (2) rough, prefinished art, copy, and/or commercial testing, (3)
finished art or commercial pretesting, and (4) market testing of ads or commercials (post testing).
1. Concept Generation Research.
The concept generation research is conducted very early in the campaign development process in
order to explore the targeted consumer’s response to a potential ad or campaign or have the
consumer evaluate advertising alternatives
2. Rough Art, Copy, and Commercial Testing.
Advertisers are increasingly spending more monies testing a rendering of the final advertisement at
early stages because creating an advertisement is a costly process. Tests of rough art, copy and
commercials include comprehension and reaction tests and consumer juries. Again, the Internet
allows field settings to be employed.
 Comprehension and reaction tests:-
How consumers comprehend and react to the advertisements are measured here.
 Consumer juries.
This method uses consumer’s representative known as consumer jury of the target market to
evaluate the probable success of an advertisement.
Media Selection
Media selection refers to the process of choosing the right type of media to advertise your product. This includes
traditional media such as television, radio, and print, as well as digital media such as social media, websites, and
mobile apps. The goal of media selection is to reach your target audience in the most effective and efficient way
possible.
Media selection involves choosing appropriate media channels to effectively reach the target audience and
communicate advertising messages.
Key decisions in media selection include selecting media that can reach the target audience, choosing an optimal
mix of media within the advertising budget, and determining suitable scheduling. Media planning aims to control
wastage and ensure resources are used efficiently to help achieve marketing and advertising objectives.
Choosing a right media, to convey message and persuade target audience to buy product or services, is a difficult
task.
Media selection decisions should be based on
(I) Communication Requirements
(Ii) Advertising Budget
(iii) Nature Of The Product
(iv) Extent Of Competition
(V) Geographical Area Coverage Requirements
(Vi) Literacy Level Of Target Group
(Vii) Cost Of Media And Services Provided.
What are the factors to consider while selecting media?
• Target audience: Understanding your target audience is key in determining which media they are
most likely to use and consume.
• Message: Consider the message you want to convey and how best to deliver it through the
chosen media.
• Budget: Determine the budget for your advertising campaign and allocate it accordingly to
various media.
• Timing: The timing of your advertisements is important for maximum impact and relevance.
• Reach and frequency: The reach of the media refers to the number of people who can see or
hear your advertisement. The frequency refers to the number of times people are exposed to
your advertisement.
What is advertising effectiveness?
Advertising is a major source of revenue for businesses. Advertising effectiveness measures how
well a marketing or advertising campaign did and how well it met the company’s goals. It is very
important if the company wants to get a good return on investment (ROI).
An effective advertising campaign can increase sales, attract new customers, and enhance
brand perception. Measuring ad effectiveness allows you to understand the impact and reach of
your campaign, allowing you to determine the ideal amount of exposure and what is and is not
working with your advertising strategies.
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of-measuring-advertising-effectiveness/
Sales Promotion
A sales promotion is a marketing strategy where a business will use short-term campaigns to spark
interest and create demand for a product, service or other offers.
Sales promotions can have many objectives and ideal outcomes, which we will explore in detail
throughout this article.
A sales promotion is a marketing strategy in which a business uses a temporary campaign or offer to
increase interest or demand in its product or service.

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Sales Promotion
Various tools of sales promotion, also known as methods of sales promotion may be divided
into two parts –
(i) Consumers Pro­motion Methods
(ii) Dealer Promotion Methods.
The tools of sales promotion are employed primarily by two of the principals of marketing
– the manufacturer and the retailer. Although a few of the elements are used in common by
each, for the most part the needs of the retailer differ from those of the manufacturer.

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Tools And Techniques Of Sales Promotion
1. Coupons
2. Free Samples
3. Price-Off Offer
4. Fairs and Exhibition
5. Free Gifts
6. Competitions or Contests
7. Free Services
8. Special Rebate
9. Full Finance @ 0%
10. Scratch and Win Offer
11. Money-Back Offer
12. Exchange Schemes.
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