Basic Concepts of Product Advertisement and Distributions PDF

BASIC CONCEPTS OF PRODUCT ADVERTISEMENT AND DISTRIBUTIONS POSTH ARVEST H AN DL IN G OF DUR ABL E A N D P L A N TAT I O N C R O P S P H T- 6 3 1 Product Advertisement Overview Product advertisements are everywhere. In general, advertising is important because it is the...

BASIC CONCEPTS OF PRODUCT ADVERTISEMENT AND DISTRIBUTIONS POSTH ARVEST H AN DL IN G OF DUR ABL E A N D P L A N TAT I O N C R O P S P H T- 6 3 1 Product Advertisement Overview Product advertisements are everywhere. In general, advertising is important because it is the primary method by which companies and brands who produce goods or services for sale communicate to potential buyers about their features and availability. Product advertising uses a variety of methods and channels to promote a company's products and create branding awareness. Advertising is the most common and popular way to promote a product or service to generate income/revenue for a business, company, or venture. Product advertising is a paid form of communication where a company will use a communication channel to send a message to consumers in an attempt to persuade Product Advertising Creative Process In general, the result of a product advertising planning and execution process is called an product advertising campaign. The steps this campaign takes after setting the product goal are as follows. Determine the target audience Determine the best channel(s) to reach the target audience Determine and create the elements of the selected channel(s) (such as graphics, print collateral, audio, video, etc.) Purchase advertising space in the selected channel(s) Analyze return on investment for each advertisement, if possible Different Ways to Advertise a Product There are a variety of channels where product advertising happens. These include what is often known as "traditional" advertising, such as: Television - through commercials or infomercials Radio - through audio ads or "radio spots" Print (newspapers and magazines) through visual advertising designed specifically for print Direct Mail - sent via the postal service in the form of a flyer, postcard, letter, or circular Website - referring to a website for the specific product or the product's brand/company Social media - placed on specific social networks using their advertising rules and best practices, which change frequently Billboards - outdoor advertising, typically meant to be viewed while driving Digital Placement - through insertion in digital content such as Methods of Product Advertisement There are many ways to advertise a product, including: Comparative Advertising Comparative advertising is a method of advertising whose goal is to demonstrate to the customer the differences between the advertiser's product from the competition's similar product. In our burger bundle ad, we might find a similar promotion or burger from a competitor, using comparisons like "never frozen" or "twice as much bacon as the other place," either spoken on a radio or video ad or displayed on a visual ad. In an infomercial, there might be a taste test where testers choose the advertiser's product over the competition. Cooperative Advertising is when an advertiser partners with another company, most frequently a wholesaler or manufacturer, to promote a product or brand. In our burger bundle ad, the restaurant could have placed any can of soda in the ad but partnered with the SuperSoda company, which paid for a percentage of the advertising costs to promote their new soft drink. Informational advertising is used to increase the recognition of a product or brand. In video advertising, this is often done through infomercials. In print advertising, this is frequently done via advertorials. Advertorials are paid advertisements designed to look like informational articles and frequently have the word "Advertisement" or "Advertorial" in small print above them. Some famous advertorials include: Snuggle, Head On!, Sham Wow, Slap Chop, Shake Weight, Ninja Foodie Direct Mail is an advertising strategy of sending mail to potential consumers based on demographic information. Direct mail advertising includes consumer catalogs, coupon circulars, postcards, etc. Direct mail advertisers must determine their target demographics and obtain mailing lists of addresses that represent that demographic. They then build or obtain mailing lists to fit that target. List companies sell addresses within a specific geographic area that can often be segmented into age, gender, marital status, occupation, household income, and other groups. In the United States, the Postal Service offers a fee-based direct mail service called "Every Door Direct Mail" or EDDM. This service allows an advertiser to choose a starting point and then have mail delivered to all residential or business addresses within a certain distance Outdoor advertising relies on outside signage such as lawn signs, building placards, and billboards to promote a brand or product. Many billboards are found along highways, and high-traffic streets and are used for brand development. The price of outdoor advertising is typically directly proportional to the number of impressions it will likely get. Impressions are the total number of potential viewers that have a clear view of the board for enough time to view it in a given period. This could be the average number of vehicles that drive by it daily or the number of individuals that walk past in a day. A good example of pedestrian-targeted billboards in New York City's Times Square. Point-of-Purchase advertising is found in brick-and-mortar retail stores and on e- commerce websites to encourage an immediate purchase by communicating a product's value or desirability right where it is possible to purchase. A good example of this is displayed in the following image. The image depicts a cooler by Pepsi-cola company and promotes purchasing a second item at a fixed rate of $1. Lesson Summary Product advertising is an area of general advertising - a paid form of communication where a company will use a communication channel to persuade them to purchase a product. This is done by determining the target audience's demographics and identifying the best channel to reach them. Elements are then created to fit that channel. Advertising space is purchased in a specific channel. There are a variety of channels to advertise a product, including television, radio, print, direct mail, website, social media, outdoor/billboards, and digital placement. Some primary methods of product advertisement include: Comparative Advertising: Showing the benefits of your product over a competing product Cooperative Advertising: Partnering with a manufacturer brand, wholesaler, or supplier to promote their product for sale at your company. Informational Advertising: Using video infomercials or print/web advertorials to teach consumers about your products Direct Mail: Using catalogs, circulars, postcards, etc. to reach potential customers via postal mail Outdoor/Billboard: Placing signage or billboards in specific areas based on the number of views it typically receives in a a given time (or impressoins) Point of Purchase: Placing signage, special displays, etc., at a product's point of purchase, such as in a retail store or e-commerce website. Product advertising combines the science of determining how best to position a product based on demographic information and an artistic, creative element to best communicate a lasting brand impression. By combining the primary methods of advertising along relevant channels, companies and brands create a desire in the Definition of Distribution is defined as the act of spreading the product throughout the market, as large and wide as possible so that many people can buy it. A company needs distribution so that it can sell its products in the market. A proper Distribution channel can become a huge competitive advantage for the company. There are two kinds of distribution channels that are functional – Direct Distribution and Indirect Distribution. Indirect Distribution, the manufacturer sells products directly to the end-users while in in-direct Distribution, products reach the users through different hands such as wholesaler, distributor, dealer, retailer, consultant, 1) Direct Distribution Direct channels are when the consumer can directly purchase from the manufacturer. For instance, service provider like car-wash and barber services usually use direct channels, as there is no inclusion of middlemen, and the customer can directly avail the assistance from the producer. Products and services distributed by these channels usually have lower costs because mediators and intermediaries are eliminated. 2) Indirect Distribution Indirect channels involve mediators for the Distribution centers of products and services from the manufacturer to the customer. The more distribution channels involved, the higher the cost of the product or service. This type is further divided Role of Distribution distribution channel is also called placement and can refer to a company’s marketing strategy as well, which includes price, promotion, and product. These channels also describe the pathway formed for the payment made from the customer to reach the manufacturer. When the number of ways a consumer can access a product is increased, there is an increase in profits, but more distribution channels can lead to difficulty in the management of these channels. If there are more extended distribution channels, it can lead to a reduction in profits because the intermediaries also have to be paid. So, it is crucial to strike a balance between the reach of the product and earning profits. Components of Distribution There must be geographical diversity while setting up your distribution channel so that the product has a broad reach. An effective tracking system must be in place, especially if the company is involved in e-commerce so that the company can check if the goods have been delivered in the right place with the correct specifications. The packaging of the product must be done well so that there is no damage to the goods while transporting and storage. Distribution involves tracking of places so that the placement can be done in such a manner that includes maximum profits. If the product faces a slump in the market, the distribution channel must also allow taking back Distribution of FMCG (Fast Moving Consumer Goods) In the Indian FMCG industry, companies distribute their products that are usually of low value, high volume products to nearly one million retail outlets. Some of the most successful companies in this category have large quantities and sophisticated networks of distributors, including factories, stock points, wholesalers, retailers, andApproaches Different carrying andtoforwarding agents. Distribution 1) Mass distribution approach (also known as an intensive distribution) For mass-market Distribution, businesses opt for those intermediaries who can cover the whole market base. You may understand this with the examples of cold drinks that are distributed by using a different variety of outlets such as vending machines, supermarkets, shopping stores, and so on. Here those distribution channels come in play that can serve the purpose of mass-market Distribution affordably. 2) Selective distribution approach There are some of the specific kinds of products that need special handling and for this, selective distribution approach is followed. For instance, if you talk about some of the electronic goods, they must be handled by expert hands, and for them, businesses opt for their trained employees to take part in the Distribution. 3) Exclusive distribution approach In this kind of distribution approach, a business or manufacturer would prefer to deal directly with one specific type of intermediary. For having better control in the distribution process, this kind of distribution approach is considered quite useful. In an exclusive distribution approach, the distributor would be working quite closely with the manufacturer by offering a more personalized service. The distributor is responsible for paying heed upon specific requirements and instructions of the manufacturer.  How to Choose the Right Distribution Channel? there is no one specific distribution that will work for all kinds of every kind of business, so it is essential to analyze the type of products or services that a company offers before choosing the distribution channel. The channel must be chosen in such a way that it aligns with the company’s goals and achieving its sales targets. While choosing the channel of Distribution, businesses or manufacturers need to pay attention upon the specific requirements of their products, the kind of branding company enjoys in the market, their market share, customer demands, supply chain and demand gaps, sorts of features, and then accordingly they need to choose the right distributor for them.  Let us have a look upon some of the tips that will you about the right ways of choosing the best distribution channel for your business- -There must be value-added to the consumer. If the company decides to use telephone marketing, for instance, it should determine whether the customer will want to talk to a salesperson or if there is value addition in choosing this channel. If not, a different channel must be used. Another factor that companies must consider is how quickly they want the customer to access their products. There are some products like meat, vegetables, and fruits which do not have a long shelf life and can perish quickly. For such products, a shorter product distribution channel with minimal mediators must be preferred.  Finally, if a company chooses to distribute its products through multiple distribution channels, it must ensure that one channel does not affect the efficiency of the other. Proper strategizing can assist the companies in avoiding clashes between the different channels. For instance, if a company sells its products in retail markets and online shopping, it should ensure that there is no difference in the quality of the products sold in both these channels and there is ample stock in both the places.  Distribution Wrap Up! Before deciding on a distribution channel, it is crucial to study the market and understand its nuances so that the company can earn profits. Even if the product or service is innovative and one of its kind, it is essential to have the right type of distribution channel so that it can reach the right target audience. The selection of the distribution channel is as important as the product itself. So, how important do you consider the distribution channels in optimizing the market presence and sustainable existence of a business? Do you have any other relevant criteria while choosing the distribution channel for your business? Enlighten us with your thoughts about the significance of distribution THANKS AND GOOD LUCK ON THE FINALS PREPARED BY P.J REAL (COURSE FACILITATOR PHT-631)