The success of advertisement depends very much upon the copy of advertisement. The main aim of the advertisement is to attract the customer and create an urge to possess that product. If the advertisement does not fulfill this objective, the expensive advertisements are useless. Hence, the advertisement copy should be drafted very carefully.
The person who drafts the advertisement copy must be thoroughly acquainted with the mental process. He should be imaginative enough to think of words and patterns which would produce the desired effect on the prospective customer.An effective copy of advertisement should posses the following characteristics, qualities or values:
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- Attention Value: An Advertisement copy must attract the attention of the potential consumers. If it fails in this mission, the money and efforts go waste, for everything else follows this. The copy should be drafted, planned and displayed so ingeniously that it may compel even the most casual reader to notice it and read it with interest. It should be designed in such an attractive manner that it catches the eye.
The advertising medium refers to the means through which the advertiser can convey his message to audience. Proper selection of the media enables the advertiser to achieve the desired results. Hence, it is vital for the success of an advertising campaign.
An advertising medium is any object or device that carries the advertising message. It should be capable of accomplishing following three objectives:
- To reach the largest number of people possible.
- To gain their attention.
- To be less expensive.
The character of the medium is largely determined on the objective and factual basis such as whether the coverage of the medium should be national, regional or only local.
Factors Governing the Selection of Advertising Media
Selection of a suitable medium is really a complex problem to the advertiser. There are a number of kinds and classes of media in the modern advertising. Hence, the selection of advertising media means not only the choice of the right classes of media out also the individual medium within the class or classes.…
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Geographical pricing refers to the location at which the price is applicable. Geographical pricing strategy is influenced by a number of factors such as the location of the company’s plant, the location of the competitors’ plants and their pricing strategies, dispersion of customers, extent of transport costs, demand and supply conditions and competitive environment. In geographical pricing, there are generally two methods of price basis which are stated in the offers or quotations submitted by a seller to a buyer. These are:
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- Ex-Factory: “Ex-factory” means the prices prevailing at the factory gate. When a seller quotes to a buyer “ex-factory price’, it means that the freight and transit insurance costs are to the buyer’s account. In other words, the seller will charge the costs of freight and insurance to the buyer. The more distant customers landed costs are higher because of freight cost.
- FOR Destination or FOB Destination: When a seller quotes to a buyer “FOR destination or FOB destination” (free on road/free on board destination), it means the freight costs are absorbed by the seller or included in the quoted prices.
The market price is the price determined by the free play of demand and supply. The market price of a product affects the price paid to the factors of production – rent for land, wages for labor, interest for capital and profit for enterprise. In fact, price becomes a basic regulator of the entire economic system because it influences the allocation of these resources.
The pricing decisions must take into account all factors affecting both demand price and supply price. The price determination process involves the following steps:
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- Market Segmentation : On the basis of market opportunity analysis and assessment of firms strengths and weaknesses marketers will find out specific marketing targets in the form of appropriate market segments. Marketers will have firm decision on : (a) the type of products to be produced or sold, (b) the kind of service to be rendered, (c) the costs of operations to be estimated, and (d) the types of customers or market segments sought.
Pricing the product is one of the important element in marketing mix. Until recently it has been one of the most neglected areas. Even today, pricing in some firms is simply based on the concepts of cost, market position, competition and necessary profits.
Factors Affecting Pricing Decisions
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- Objectives of the Business : There may be various objectives of the firm such as getting a reasonable rate of return, to capture the market, maintenance of control over sales and profits etc. A pricing policy thus, should be established only after proper consideration of the objectives of the firm.
- Cost of the Product: Cost and price of a product are closely related. Normally, the price cannot or shall not fixed below its cost (including the product, administrative and selling costs). Price also determines the cost.
- Market Position. The prices of the products of different producers are different either because of difference in quality because of the goodwill of the firm. A reputed concern may fix may fix higher prices for its products on the other hand, a new producer may fix lower prices for its products.
The marketing environment is dynamic it is always changing. Whether the forces of the marketing environment fluctuate slowly or rapidly, they create uncertainty, obstacles, and opportunities. Marketers must constantly monitor the marketing environment to be prepared to capitalize on opportunities and minimize adverse conditions. To monitor changes in the marketing environment effectively, marketing managers must engage in environmental scanning and analysis.
Environmental analysis is the process of assessing and interpreting the information gathered through environmental scanning. A manager reviews the information for accuracy, ties to reconcile inconsistencies in the data, and interprets the findings. Analysis allows a marketing manager to discern changes in the environment and, if possible, or predict future changes. By evaluating these changes, a marketing manager should be able to determine possible threats and opportunities associated with environmental fluctuations. Knowledge of current and predicted environmental changes aids a marketing manager in assessing the performance of current marketing efforts and in developing marketing strategies for the future.…
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