InterviewSolution
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Maruti Nero, a product of the Maruti group has created a very good reputation in the automobile market. It has nearly 180 outlets and operates in nearly 100 cities. The company provides genuine spare parts and 24/7 roadside assistance with longest warranty coverage. It has collaboration with Tata Motors regarding its sale, service and spares. There are many dealers of Tata motors in Delhi and outskirts, so this has rapidly increased the sale of the car. The company normally goes for institutional advertising in most of the cases. It is indeed a reality that Maruti with minimum advertising has become a popular brand. With reference to the above: (a) What is Institutional advertising? State and explain the other types of advertising. (b) What is a brand promotion? Explain the methods used for brand promotion.(c) Suggest and explain any two suitable media to be used by the company to advertise its product. |
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Answer» (a) Institutional Advertising: The aim of this type of advertising is to build a favourable image of the organisation rather than to promote the sale of a product or service. Other types of Advertising: Advertising can be classified in the following categories: 1. Product Advertising: The main objective of product advertising is to promote the sale or reputation of a particular product, brand or service. It is sponsored by manufactures, traders and other organisations to promote the uses, features, benefits and image of their products and services. 2. Informative Advertising: This type of advertising contains information about a product/service or institution. It makes consumers aware of the existence, features, uses of goods and services. For example, advertisements suggesting how to save petrol or avoid accidents are informative advertising. 3. Persuasive advertising: This type of advertising is designed to persuade the consumers to buy a product or service or to support an idea. 4. Reminder Advertising: It attempts to remained people about the product/service or idea. 5. Concept Advertising: This is also known as ‘primary demand advertising’ or ‘pioneering advertising’. Its purpose is to stimulate demand for a new type of product. Advertisements designed to change life style of people is concept advertising. For example, ‘a diamond is forever’ seeks to promote diamond jewellery as a concept. (b) Brand promotion: Brand promotion comprises all the activities which a business performs to persuade and motivate people to buy the brands of the company. It is done by the manufacturer but sometimes wholesalers and retailers may also undertake brand promotion. The main purpose is to build a market for a brand and to meet competition. For example, several brands are advertised on TV like Pepsodent toothpaste, Lux soap, Titan watches, and so on. In short, brand promotion means making a brand popular. Methods used for brand promotion: 1. Advertising: It is a widely used medium for brand promotion. Advertisements on TV, radio, newspapers and magazines reach a large number of people. It is due to repeated advertisements that Pepsodent toothpaste, Rin detergent powder, Surf Excel, Hero Honda bike, Maruti car, Nokia mobile, Maggi noodles, Horlicks and other brands have become popular in the market. 2. Sales Promotion: These are the short-term incentives to promote the sale of a brand. It induces buyers to purchase a brand through various incentives like discount coupons, prize contents, money refund. It provides the buyers incentives to purchase the brand ‘now’—immediately and without any delay. In fact, available only for a specified short period. It temporarily raises the demand and when incentives are withdrawn, the demand falls down. Now-adays mobile companies are using sales promotion techniques which induces consumers to buy a connection from-a particular company. 3. Maintaining and Improving Quality: In order to promote their brands, business firms are continuously maintaining and improving the quality of their brands. Brands continue to enjoy confidence of consumers only when their quality is maintained and improved. (c) Company should use Television and Newspapers for advertising its product: 1. Television: Television is comparatively a new but fast growing medium of advertising. It has become very popular and effective due to the combined force of picture and sound. It has a dramatic impact on the minds of viewers. On television, products can be demonstrated and their use can be explained. Therefore, advertisement has to be repeated frequently. 2. Newspapers: Educated and civilised people all over the world read newspapers as a matter of habit. Newspapers reach all places and are read by all types of people. Therefore, newspaper advertising has a general and wide appeal. The choice of a particular newspaper for advertising depends upon the circulation of the paper, the type of readers it serves, the geographical region in which it is popular, the cost of space and general reputation of the paper. A daily newspaper &as a wide circulation so that the message can quickly reach a large number of people. The advertisement can be repeated daily to remind customers and to create a lasting impression. Because of its repetition value, newspaper advertising is very useful in the introduction of a new product or brand name. There is the benefit of selectivity. Desired markets or regions can be approached through local or regional news¬papers. There is greater flexibility as the advertisement can be changed daily and presented in a new form for greater impact. |
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