Question

Ryan Ltd. Took the following steps in the beginning of this year to widen its consumer base. It expanded the business operations to cover international markets and within India. It focused on Delhi. It repositioned itself as a FMCG company, offering a wide range of Modern Electronic items, and moved away from traditional marketing to non-traditional marketing. The company focused on quality control and publicity. It also introduced new advertisements featuring film stars and sports personalities. It undertook various brand promotion methods.

1. Explain any two advantages of advertising to manufacturers.
2. Explain any two elements of promotion mix.
3. Explain any five Non-traditional markets.

Answer 1

1. Advantages of advertising to manufacturers:
   1. It creates goodwill by making the manufacturers and his products famous and known in public.
   2. It helps to maintain steady demand by smoothening out seasonal fluctuations in demand.
2. Two elements of promotion mix:
   1. Advertising: Advertising is defined as any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor. It is a way of mass communication. It is the most popular and widely practiced tool of market promotion. Major part of promotional budget is consumed for advertising alone. Various advertising media-television, radio, newspapers, magazines, outdoor means and so forth, are used for advertising the product.
   2. Sales promotion: Sales promotion covers those marketing activities other than advertising, publicity and personal selling that stimulate consumer purchasing and dealer effectiveness. Sales promotion mainly involves short-term and non-routine incentives, offered to dealers as well consumers. The popular methods used for sales promotion are demonstration, trade show, exhibition, exchange offer, seasonal discount, free service, gifts, contests, etc.
3. Five Non-traditional markets:
   1. In house market: In this type of market, sales persons visit door-to-door in the locality and offer products to the people at their houses. This is an effective method and offers good discounts to the customers. Dictionaries. visual books are sold in this manner.
   2. Automatic vending machines: These machines are installed in the premises of malls, workplaces, schools and public places. Customer puts the coins/cash in the machine and collects the product.
   3. Catalogue market: The seller prepares catalogues of products and sells directly to the customer. Samples of the products are also kept at the selling place of the seller which can be seen, tested or examined by the customers. Avon is a good example of a company successfully using this channel to sell its range of cosmetics.
   4. Mail-order market: In this type of market, the seller mails the catalogue of the products and other publictiy material to the prospective buyers. Customers place orders after reading the publicity material. Goods are despatched through courier or V.P.P. This market is, however, being replaced by online shopping firms like Flipkart and Amazon.
   5. Tele-markets: The product is advertised and demonstrated on television channels and in the newspapers. Toll-free numbers are mentioned in the advertisement for placing the orders. Orders are executed through couriers.