Tag: Advanced Accounting Notes

The selection tests aim at measuring such skills and abilities in a worker that are decided by job analysis to be essential for successful job performance. A test is an instrument designed to measure selected psychological factors.

The basic assumption underlies the use of tests in personnel selection is that the individuals are different in their job-related abilities and skills and that these skills can be adequately and accurately measured for comparison. A great number of human abilities are complex and interrelated. Hence, these have to be understood in association with each other.

Types

(a) Ability or Intelligence tests:

These tests are conducted to judge the mental capacity (intelligence), sensory capacity (vision and hearing), mechanical and clerical abilities of the candidates. “Tests of verbal and numerical ability, with questions on vocabulary, similarities, opposites, arithmetical calculations, etc. are referred to as intelligence tests.” A questionnaire is prepared with objective type questions evaluated through computers.

Knowledge and proficiency in language (English or Hindi) can also be tested through ability tests. People who score high on these tests have the ability to absorb, interpret and analyse business information quickly and perform well at work.

(b) Aptitude tests:

These tests judge the aptitude of a person to accept future jobs. They explore a person’s potential to perform present and potential organisational tasks. People differ in their ability to do certain tasks and aptitude tests measure this ability to explore their potential to work.

“Aptitude tests can measure specific abilities or aptitudes (for example, spatial ability, manual dexterity, numerical ability, verbal ability) and are used to gauge the person’s potential.” Every individual differs in his ability to perform organisational tasks and, therefore, these tests enable the manager to know the skills and competence of the candidates to work on the job.

(c) Personality tests:

Personality reflects emotional stability and competence to perform effectively at work. Personality tests judge personal traits of a person (their feelings, thought about work, risk taking, confidence etc.) and test his ability to perform the job.

Personality tests assume direct relationship between one or more of the personality factors and ability of a person to do certain jobs. After assessing personality, his personality profile is compared with standard profile relevant for the job.

(d) Performance tests:

These are on-the-job tests. The candidates perform the job for which they are being considered. They are also known as “in-tray” tests as candidates work on a representative sample of the work. The data entry operator, for example, may be asked to type a page to judge his proficiency in typing. Though these tests are costly, they help in selecting the most suitable candidate for the job.

Advantages of Test:

(i) Objective Assessment:

Tests provide better objective criteria than any other method. Subjectivity of every type is almost eliminated.

(ii) Proper Assessment:

Tests provide a basis for finding out the suitability of candidates for various jobs.

The mental capability, aptitude, liking and interests of the candidates enable the selectors to find out whether a person is suitable for the job for which he is a candidate.

(iii) Selection of Better Persons:

The aptitude, temperament and adjustability of candidates are determined with the help of tests. This enables their placement on the jobs where they will be most suitable. It will also improve their efficiency and job satisfaction.

(iv) Uniform Basis:

Tests provide a uniform basis for comparing the performance of applicants. Same tests are given to the candidates and their score will enable selectors to see their performance.

(v) Labour Turnover Reduced:

Proper selection of persons will also reduce labour turnover. If suitable persons are not selected, they may leave their job sooner or later. Tests are helpful in finding out the suitability of persons for the jobs. Interest tests will help in knowing the liking of applicants for different jobs. When a person gets a job according to his temperament and interest he would not leave it.

Limitations

(A) Tests cannot fully understand a candidate’s personality. At best, they can only differentiate between those who have scored above and below the cut off point. This limitation is, however, overcome by the proceedings of the further selection process.

(B) Some tests like lie detection tests are not advisable as they demoralize the candidates.

(C) Fear of Exposure:

Some persons may not submit to the tests for fear of exposure. They may be competent but may not like to be assessed through the tests. The enterprise may be deprived of the services of such personnel who are not willing to appear for the tests but are otherwise suitable for the concern.

(D) Tests are not always suitable measures of selection. A candidate may spoil his test but may still be suitable for the job.

(E) Wrong Use: The tests may not be properly used by the employees. Those persons who are conducting these tests may be biased towards certain persons. This will falsify the results of tests. Tests may also give unreliable results if used by incompetent persons.

Posting a job ad for a position that does not exist. There are a few reasons this may be done: to see what talent might be available in a potential new location; to attract passive candidates to build up a talent pipeline; to use up remaining postings in an expiring contract with an online jobs board, if only to collect resumes; to see if current employees will respond to a blind ad, indicating they are ready to jump ship; or to foster the idea that the company is growing and stable, rather than the opposite.

If, for any of these reasons, a job ad is posted when no open position actually exists, applicants, employees, clients and customers may be led to distrust the company or recruiter due to unethical practices. Reputations can be ruined quickly with a simple social media post; allowing only actual openings to be advertised will alleviate this risk.

Some ethical ways of researching talent availability in a new location include:

• Gathering demographic data. Do your research to find out about the education level, cost of living and unemployment rates in the area. The Bureau of Labor Statistics, local unemployment agencies and other government groups have this information available and will provide it at no cost.
• Talking to local business groups. The Chamber of Commerce, Rotary Club or other local business groups can provide information on the employment climate in the area you are considering.
• Reading local publications. These newspapers or journals can be a wealth of information, as they may discuss the local labor market or highlight growth or shrinkage among local industries. Review the sections in which the hiring and promotions of local employees are announced, to see where people are being hired and what types of positions are highlighted. Most of these sections also have listings of job openings in the area.
• Data mining resume databases. Sites like Monster or LinkedIn, where people can post resumes, will give you a good idea of talent availability in the local market. Use these resources not only to assess availability, but also to target top candidates if you choose to move forward.

Misrepresenting the duties or requirements of an open position. This generally occurs when a position is difficult to fill, or a recruiting quota needs to be met and desperation sets in. Promising more autonomy or authority than a position has can lead to an unhappy hire and even more cost to the employer when the new hire quickly leaves. The same holds true for hiring someone who is overqualified, or hiring someone who is underqualified and becomes overwhelmed and unproductive. To maintain ethical practices and integrity as a recruiter and for your company, be completely transparent with applicants about what the job they are applying for entails.

Unethical employee referral practices. While a popular and successful tool to hire quality candidates, employee referral programs can create ethical issues of which HR should be aware. These issues can arise when senior-level employees make a referral and expect a hire, regardless of merit; a referred candidate is hired, and there is a sense that the referring employee is indebted to the hiring manager for “doing him or her a favor”; and special interests, such as a client referral, carry weight over merit.

Unethical use of social media. There are certainly legal risks in discovering and using protected-status information (e.g., age, ethnicity or religion) against an applicant; there are also ethical concerns.

At its most flagrant, unethical behaviors include recruiters’ creating fake social media accounts to gain access to applicant profiles to mine private information about them and access their friends. Even when candidates are notified that you will be looking at their accounts and thus require them to provide social media passwords (not legal in some states), you’ve crossed a line into their private lives and accessed information that is not job-related and therefore should not be used against them. But what is seen cannot be unseen, so ethically and legally there are limits to using such information.

Some essential factors for businesses to consider for ethical recruiting:

• Never place misleading job advertisements: This includes misrepresenting the requirements of a particular position. It also refers to working conditions and the current or projected state of the organisation.
• Interview correctly to ensure proper matching: It is vital for agencies to interview candidates thoroughly to match them with the right job. This includes giving guidance to candidates and helping them understand the offer and its associated career implications.
• Treat all candidates equally: An important ethical factor, it is essential not to discriminate on the basis of gender, race, origin, religion or political views. Always review candidates based on their merits. It is critical for HR professionals to be honest, consistent and objective throughout the recruiting process.
• Solicit only information that is necessary: For instance, information like the city a candidate was born does not matter or have an impact when it comes to their ability to perform a certain role. Where they currently reside, however, does have implications of where they are able to commute to on a daily basis.
• Maintain confidentiality on the use and storage of candidate information: Confidentiality is essential. This includes obtaining the candidate’s consent to release their details to a specific client or for a specific position. Conduct yourself in a transparent fashion, ensuring that a candidate fully understands the possible risks involved if going to work for a competitor to their current employer.
• Never practice redirection: This is when a recruiter takes feedback from a hiring manager after a candidate’s interview and sends it to the candidate. If the candidate can address the hiring manager’s worries, it increases the likelihood that they’ll be chosen for the job and the recruiter will secure their fee. It may be effective, but it’s highly unethical.
• Inform candidates appropriately of the selection decision: Always let a candidate know within a specified and communicated time-frame whether they got the job or not. Do not leave them hanging.

Job redesign tailor’s employee positions to an organization’s current functions and needs.  During times of change, job redesign ensures that organizational needs are filled by proficient employees.  Job redesign can involve something as simple as adding a single job function, or it can be as complex as completely overhauling the position.

Job redesign can also involve the addition of new tasks to provide employees with variety and challenges.  This can contribute to increased employee satisfaction in workplace experience.  The process can also be purposed to holistically balance the tasks and abilities of a group of employees.

Restructuring the elements including tasks, duties and responsibilities of a specific job in order to make it more encouraging and inspiring for the employees or workers is known as job redesigning. The process includes revising, analyzing, altering, reforming and reshuffling the job-related content and dimensions to increase the variety of assignments and functions to motivate employees and make them feel as an important asset of the organization. The main objective of conducting job redesigning is to place the right person at the right job and get the maximum output while increasing their level of satisfaction.

Process

• Revising the Job Content: Job redesigning process involves recollecting and revising job-related information to determine the inconsistency between person and the job.
• Analyzing Job-related Information: Once the job analyst is through with recollecting and revising the job content, analyzing the discrepancies is the next step. It is done to determine the hindrances in performing job-related tasks and duties and investigate why an employee is not able to deliver the expected output.
• Altering the Job Elements: The next step is to amend the job elements. It may include cut back on extra responsibilities or addition of more functions and a higher degree of accountability. The basic aim of altering the job content is to design a job in such a manner that encourages employees to work harder and perform better.
• Reformation of Job Description and Specification: After altering the job elements, a job analyst needs to reform the job description and specification in order to make sure that the worker placed at a particular place is able to deliver what is expected of him.
• Reshuffling the Job-related Tasks and Duties: Next is to reallocation of new or altered tasks and functions to employees. It may be done by rotating, enriching, enlarging and engineering the job. The idea is to motivate the performers while increasing their satisfaction level.

Advantages

• Creates the best match between an employee’s abilities/experience and a position
• Establishes lean organizational efficiency
• Increases employee productivity and workplace satisfaction
• Increases employee retention
• Enhances the Quality of Work-Life: Job redesigning motivates the employees and enhances the quality of their work life. It increases their on-the-job productivity and encourages them to perform better.
• Increases Organization’s and Employees’ Productivity: Altering their job functions and duties makes employees much comfortable and adds to their satisfaction level. The unambiguous job responsibilities and tasks motivate them to work harder and give their best output. Not only this, it also results in increased productivity of an organization.
• Brings the Sense of Belongingness in Employees: Redesigning job and allowing employees to do what they are good at creates a sense of belongingness in them towards the organization. It is an effective strategy to retain the talent in the organization and encouraging them to carry out their responsibilities in a better fashion.
• Creates a Right Person-Job Fit: Job Redesigning plays an important role in creating a right person-job fit while harnessing the full potential of employees. It helps organization as well as employees in achieving their targets or goals.

Job redesign is an important part of optimizing an organization’s workforce, especially if:

• There has been a major shift in an organization’s use of technology.
• Employees are being transferred from one department to another.
• Employees are taking on additional job functions after organizational or departmental right-sizing.

In situations like those described above, the following process is most effective:

• Competency mapping of current employee functions
• Functional analysis of new employee functions
• Gap analysis of current and new employee functions
• Reassign job functions elsewhere, as necessary
• Identification of custom training to bridge the employee’s transition

As opposed to direct marketing, where advertisers send the same message to everyone and expect a large portion of those people to reject the message behavioral marketing takes online information and uses it to tailor the message to the user.

Behavioral targeting uses web analytics, computer applications and cookies, browsing and search history, and IP addresses, to create user profiles of individual consumers. With that information, the website’s ad server will then generate relevant and targeted content or advertisements that appeals to their interests.

Response rate is a measurement of the amount of people who respond to a certain call-to-action. When marketers want to solicit a response from consumers, they will distribute an offer to the consumers. The consumers who respond to the offer are calculated into the metric.

Measuring response rate has multiple applications in marketing, depending on the marketer’s need. The measurement could be based on the amount of people who responded to a marketing survey, the amount of people who filled out a contact form asking for information, or any other action that requires a response.

Marketers should actively encourage recipients to respond to the offers. Response rates that are too low can result in a sample bias, thus skewing the results and producing inaccurate results for marketers. Careful attention should be paid to eliminating any additional factors that might produce biased results.

Keep in mind that although response rate is a helpful metric to know, it can be misleading as well. Rates can vary dramatically depending on the demographics of an area, the relevance of the offer to the target market, and how compelling the offer is. In some cases, a high response rate can be related to unsatisfactory results, whereas a low rate could produce results that are very positive.

The rate of sales within a retail market is calculated by taking the value sales of the product, dividing by the average number of stores selling, multiplied with the numeric distribution, divided by the weighted distribution.

The calculation looks like this:

(Value Sales / average # of stores selling) * (numerical distribution / weighted distribution).

So, what does the rate of sales actually tell us? It tells us, as the name implies, the sales rotation of any given product(s), in a retailer, in a defined period of time such as moving annual total.

Manufacturers of FMCG products can for example use this fact to gauge whether or not a certain product is given the right amount of priority by a retailer.

It’s one thing to look at value sales on any given period and comparing this to the previous year or previous period to see if sales go up or down, but if we would like to know how a particular SKU is performing, irrespective of the distribution of the product within the retailer(s) (to a certain extent), we would also need to look at the sales rotation, i.e., how fast is this product actually selling when it’s on the shelf at a given retailer in a defined period of time. This can then in turn be used by the manufacturers to show which products should be prioritized from the retailer side, as a product with a higher rate of sales will all else being equal equate to higher sales and thus drive more value to the category.

It can also be used to measure the effectiveness of each retailer compared with each other to see who’s performing best and thus who should be given priority by the manufacturer.

Most of the largest online retailers and social-media sites already use behavioral marketing technique as do the companies that purchase ads from those sites. However, behavioral marketing isn’t only used purely to “sell you stuff.” By targeting ads to specific needs, companies can also provide goods and services that will not only fill consumer closets, but improve their quality of life. For example, a pharmaceutical company can create and implement advertising that encourages people to use and continue taking a new cancer or hyperactivity drug.

Because behavioral marketing is extremely targeted, this strategy doesn’t work as well with products that appeal to a more general audience. Additionally, because of the data being used, privacy issues and legislation to address those issues will affect the approaches used by marketers going forward. However, when used properly, behavioral targeting can be a very effective way to reach the right customers with the right products and services.

Marketing communications must do more than just promote your company, products or services. Advertising messages, promotions, social media and public relations efforts should support your overall marketing strategy, including your brand-management strategy. Understanding how you can evaluate the effectiveness of your efforts can help you spend your marketing budget more efficiently.

The final stage of the promotional planning process is monitoring, evaluating, and controlling the promotional program. It is important to determine how well the promotional program is meeting communications objectives and helping the firm accomplish its overall marketing goals and objectives. The promotional planner wants to know not only how well the promotional program is doing but also why. For example, problems with the advertising program may lie in the nature of the message or in a media plan that does not reach the target market effectively. The manager must know the reasons for the results in order to take the right steps to correct the program.

This final stage of the process is designed to provide managers with continual feedback concerning the effectiveness of the promotional program, which in turn can be used as input into the planning process. Information on the results achieved by the promotional program is used in subsequent promotional planning and strategy development.

Perspective and Organization Traditional approaches to teaching advertising, promotional strategy, or marketing communications of This Text courses have often treated the various elements of the promotional mix as separate functions. As a result, many people who work in advertising, sales promotion, direct marketing, or public relations tend to approach marketing communications problems from the perspective of their particular specialty. An advertising person may believe marketing communications objectives are best met through the use of media advertising; a promotional specialist argues for a sales promotion program to motivate consumer response; a public relations person advocates a PR campaign to tackle the problem. These orientations are not surprising, since each person has been trained to view marketing communications problems primarily from one perspective.

In the contemporary business world, however, individuals working in marketing, advertising, and other promotional areas are expected to understand and use a variety of marketing communications tools, not just the one in which they specialize. Ad agencies no longer confine their services to the advertising area. Many are involved in sales promotion, public relations, direct marketing, event sponsorship, and other marketing communications areas. Individuals working on the client or advertiser side of the business, such as brand, product, or promotional managers, are developing marketing programs that use a variety of marketing communications methods.

This text views advertising and promotion from an integrated marketing communications perspective. Shall examine all the promotional-mix elements and their roles in an organization’s integrated marketing communications efforts. Although media advertising may be the most visible part of the communications program, understanding its role in contemporary marketing requires attention to other promotional areas such as the Internet and interactive marketing, direct marketing, sales promotion, public relations, and personal selling. Not all the promotional-mix areas are under the direct control of the advertising or marketing communications manager. For example, personal selling is typically a specialized marketing function outside the control of the advertising or promotional department. Likewise, publicity/public relations is often assigned to a separate department. All these departments should, however, communicate to coordinate all the organization’s marketing communications tools.

The purpose of this book is to provide you with a thorough understanding of the field of advertising and other elements of a firm’s promotional mix and show how they are combined to form an integrated marketing communications program. To plan, develop, and implement an effective IMC program, those involved must understand marketing, consumer behavior, and the communications process. The first part of this book is designed to provide this foundation by examining the roles of advertising and other forms of promotion in the marketing process. Examine the process of market segmentation and positioning and consider their part in developing an IMC strategy. They also discuss how firms organize for IMC and make decisions regarding ad agencies and other firms that provide marketing and promotional services.

Then focus on consumer behavior considerations and analyze the communications process. Discuss various communications models of value to promotional planners in developing strategies and establishing goals and objectives for advertising and other forms of promotion. Also consider how firms determine and allocate their marketing communications budget.

After laying the foundation for the development of a promotional program, this text will follow the integrated marketing communications planning model presented. Examine each of the promotional-mix variables, beginning with advertising. Our detailed examination of advertising includes a discussion of creative strategy and the process of developing the advertising message, an overview of media strategy, and an evaluation of the various media (print, broadcast, and support media). The discussion then turns to the other areas of the promotional mix: direct marketing, interactive/Internet marketing, sales promotion, public relations/publicity, and personal selling. Our examination of the IMC planning process concludes with a discussion of how the promotional program is monitored, evaluated, and controlled. Particular attention is given to measuring the effectiveness of advertising and other forms of promotion.

Internet marketing is the marketing of products and services using the Internet as its medium. Lower costs of dissemination of information and a global audience are its main advantages. Internet marketing also encompasses digital customer data management and electronic customer relationship management (ECRM), which are widely used in businesses today.

The importance of Internet marketing strategies has increased with the growth and importance of the Internet. Most established companies are vying online space today and seek to adopt web marketing strategies to increase traffic to their company’s homepage. Internet marketing helps add potential customers and the number of quality leads to your website as well. In fact, most organizations can adopt Internet marketing and advertising strategies to generate better business.

According to the findings of the 2010 Digital Influence Index, by Fleishman-Hillard International Communications with Harris Interactive, when it comes to driving consumer decisions about a range of products and services, the Internet is by far the most influential media channel.

Internet technology has significantly influenced people’s living and the way business is done. It has opened every business available for the whole world

With the use of Internet and websites, customers can easily find a service or product by the use of search engine like MSN, Yahoo or Google since these search engines give Web Page results. Hence, people find convenience in using the internet through search engines because they don’t have to personally go to the office to inquire about a product or business.

By the use of internet as a marketing tool potential client are reached. Most corporates have websites to promote their products and services. As a result of this, sales and profits are increased.

Through the use of websites, corporate may present their works and achievements to prove that their firm has a reputable tract record. In this way a prospect client can now see what the companies have to offer to them and how it is compared to competitors ‘brands. Many companies use websites to have that marketing edge by other competitors in their category. This is the very reason why they keep growing.

Internet marketing & internet advertising has never been better. It requires customers to use newer technologies rather than traditional media. It differs from magazine advertisements, where the goal is to appeal to the projected demographic of the periodical, but rather the advertiser has knowledge of the target audience people who engage in certain activities (e. Internet marketing, also referred to as i-marketing, web-marketing, online-marketing, Search Engine Marketing (SEM) or e-Marketing, is the marketing of products or services over the Internet.

When more than one company offers the same kind of product, each company only receives a percentage of all sales of that kind of product. This percentage is called a “market share,” and any effort to take some of the market share away from one company and bring it to another is called an offensive marketing plan.

Any organization that is in direct competition with another organization is likely to use offensive marketing strategies.

In the business sector, offensive marketing attempts to reach customers who either already prefer a competing company or customers who are undecided about which business they will support in future purchases.

Political campaigns can be viewed as a competition between two or more “businesses” where votes stand in for profit. If there are two candidates running for the same office, the candidate who captures the majority of the market share of voters will win.

Political campaigns are well known for using “attack ads” designed to compare one candidate or issue to an opposing candidate or issue to create a stark contrast and influence the way people vote. For example, political election, numerous political action committees created attack ads disparaging both presidential candidates.

Strategies

The first step in creating an effective offensive marketing campaign is to identify the competitor’s advantages and disadvantages. For a focused campaign, the competitor’s product’s strengths must be downplayed or ignored while emphasizing weakness.

Businesses should closely monitor the effects of offensive marketing campaigns, and survey consumers for their views on the campaign. A business should also closely follow any change in its own market share during the campaign to determine if the specific materials used in the campaign have had the intended effect.

Education and Skills

Market research analysts should have a bachelor’s degree in marketing, business, or statistical analysis. This job requires high computer literacy and the ability to communicate technical data in a simple, easy-to-understand way. It can also be helpful to have previous experience in analytics or information technology

Legal issues

The council’s objectives are:

• To ensure the truthfulness and honesty of representations and claims made by advertisements
• To ensure that advertisements are not offensive to generally accepted standards of public decency
• To safeguard against the indiscriminate use of advertising for the promotion of products regarded as hazardous to society or to individuals.
• To ensure that advertisements observe fairness in competition so as to inform the consumer on choices in the marketplace while observing the canons of generally accepted competitive behavior in business

Laws Governing Media

• The Press Council Act 1978
• Cable Television Network Rules, 1994
• Code for Commercial Advertising on Doordarshan and All India Radio
• Electronic Media Monitoring Centre (EMMC)
• Norms for Journalist Conduct issued by the Press Council of India
• Code of Conduct of the News Broadcasters Association

Laws Protecting Society and the Consumer

• Emblems and Names (Prevention of Improper Use) Act, 1950
• Young Persons (Harmful Publications) Act, 1956
• Companies Act, 1956
• Standards of Weight & Measures Act, 1976
• Indecent Representation of Women (Prohibition) Act, 1986
• Consumer Protection Act, 1986
• Laws related to intellectual property rights

Industry-Specific Laws

• The Drugs and Cosmetic Act, 1940
• The Transplantation of Human Organs Act, 1994
• The Drugs and Magical Remedies (Objectionable Advertisements) Act, 1954
• The Prenatal Diagnostic Techniques (Regulation and Prevention of Misuse) Act, 1994
• Advocates Act, 1961
• Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992
• Securities and Exchange Board of India Act, 1992
• The Prize Chits and Money Circulation Schemes (Banning) Act, 1978
• Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003
• Public Gambling Act, 1867, the Lotteries (Regulation) Act, 1998 and the Prize Competitions Act, 1955
• Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002
• The Food Safety & Standards Act, 2006

Commercial free Speech

In law, commercial speech is speech or writing on behalf of a business with the intent of earning revenue or a profit. It is economic in nature and usually attempts to persuade consumers to purchase the business’s product or service.

Digital display advertising is graphic advertising on Internet websites, apps or social media through banners or other advertising formats made of text, images, flash, video, and audio. The main purpose of display advertising is to deliver general advertisements and brand messages to site visitors.

According to eMarketer, Facebook and Twitter will take 33 percent of display ad spending market share by 2017. Google’s display campaigns reach 80 percent of global internet users. Desktop display advertising eclipsed search ad buying in 2014, with mobile ad spending overtaking display in 2015.

Digital display advertising is an online form of advertising in which the company’s promotional messages appear on third-party sites or search engine results pages such as publishers or social networks. There is an evidence showing that this advertising can increase the number of website page view of a company from most types of customers except from the non-authenticated visitors who visited the website before. The main purpose of display advertising is to support brand awareness (Robinson et al., 2007 and it also helps to increase the purchase intention of consumers.

Social media is used by many organizations. One example is, in 2014, ASOS and Nike collaborated with Google Hangouts to create the first shoppable video web chat on Google+. The video is an example of display advertising used for commemorating 27 years of Nike’s Air Max shoes. The video advertising aimed at creating brand awareness among users and convincing them to watch the Hangout and purchase products from the display advertising itself. Consumers were able to shop by clicking the display advertising. According to an ASOS statement, display advertising has contributed to an increase in both the number of users visiting its website and downloads of the ASOS App by 28 percent, with users having then visited the website eight times a month, on average.

Importance of formats of display ads

Two students of the “Amsterdam school of Communication Research ASCor” have run studies about the audience reactions to different display advertising formats. In particular, they took into consideration two different types of format (sponsored content and banner advertising) to demonstrate that people react and perceive formats in different ways, positive and negative. For this reason, it is important to choose the right format because it will help to make the most of the medium. It is also possible to add:

• Video;
• Rich Media Ads (Expandables): flash files that may expand when the user interacts on mouseover (polite), or auto- initiated (non-polite);
• Overlays: ads that appear above content and that are possible to remove by clicking on a close button;
• Interstitials: Ads that are displayed on web pages before expected content (before the target page is displayed on the user’s screen);
• Sponsorship: including a logo or adding a brand to the design of a website. This can also can fall under Native advertising, which is an ad that can seem like Editorial, or “In-Feed”, but has really been paid for by the advertiser

Sales Promotion on Internet

Websites.

These days if you are going to be successful you will need a website to promote your brand and all of its offerings. That’s not to say you will fail without one: many smaller small retailers uses sites like ebay and Amazon to sell their goods, they provide a wider reach. Ideally you will have your own site (you could use both).

The website provides you with an ideal platform to inform customers what is going on.

E-mail Marketing.

E-mail Marketing, a form of direct marketing is another good way of informing customers of a sales promotion. As mentioned above, you will need to encourage users to ‘sign-up’ to receive updates. You can do this via your website or even social media sites.

Web Adverts.

If you have a retail website then you will also want to engage in web advertising. There are many formats, you can create banner (horizontal), Skyscraper ads (vertical) or pop-up ads (they appear in the middle of the screen). There is also the option of using one of the ad facilities of the many social media platforms that are out there.

Search Engine Optimisation.

Search Engine Optimisation (SEO) is a process that enhances your standing on the search engine page ranking. This is a difficult process, but a key driver for success. A few years ago, but it needs updating. Needless to say if you are not on page one you should consider a ‘Pay Per Clicks’ (PPC) process (another form of web advertising).

Digital Market Places & Affiliate Marketing.

As mentioned earlier, platforms like ebay and Amazon (digital market places) can be used to supplement your retail process (particularly if you are a small organisation).

There is also the option of using the affiliate marketing process to support you promotional campaign. The likes of Groupon and Living Social are a particular type of affiliate marketing platform: they will focus on special deals. The example below is from Living Social.

Direct Marketing on Internet

Targeting Specific Customers with Specific Offers

Direct marketing allows you to mail advertisements or broadcast commercials directly to the customers who are most likely to want what you’re selling. Marketing professional Dave Dolak points out that direct marketing appeals to a customer’s desire not to search extensively for the goods and services they want. If you own a sushi restaurant, for example, you may benefit by only mailing your menus to locals who have eaten at your restaurant before or have expressed an interest in spending an evening in a sushi restaurant.

Building Personal Relationships

Traditional online marketing is usually impersonal because it is done over a large scale. Direct marketing techniques encourage you to be much more personal with your prospective customers. Gary Elwood, a writer for the real estate agent advice website Real Estate Growth, reminds you that direct marketing allows you to add personal touches to your advertisements. Instead of sending countless metered letters bearing address labels, this targeted approach means you can hand-write the customer’s addresses and demonstrate to the customer that they are being contacted by an actual human instead of a computerized mail service.

Quick Response

If you cast a very wide net with your advertising, you may have to wait to see results or engage in contact with customers. Give to Get Marketing, a firm that helps businesses reach out to consumers, asserts that direct marketing garners a faster response. Instead of simply hoping to build awareness with a new customer base, direct marketing puts you in contact with people who already want what you have to provide.

Eliminating Unlikely Customers

The privacy laws that govern direct marketing may seem like an obstacle. The Federal Trade Commission maintains a “Do Not Call” list of citizens who have expressed a desire not to receive any telemarketing calls. This restriction can be a drawback because you’re prohibited from cold-calling these people. There is, however, a great benefit. Instead of wasting time trying to sell to consumers who don’t wish to speak on the phone, you can concentrate your efforts on people who are interested.

Internet Sales Techniques to implement in your online business to generate and even increase your sales.

1. Use Content Marketing

A company today cannot survive without a proper content marketing strategy. No matter your content strategy goal (lead generation, brand awareness, website traffic, increased sales, etc.) the end goal should be the same increase the amount of revenue coming in and to increase business. Take the time to look at your content marketing strategy, review and revise it as it is necessary. Remember, content is king, and those with the best content and most current content will rule their market.

2. Create Coupons (or Deals) To Promote

Coupons are a great way to attract visitors to your website and shopping area online. Plus everyone wants to get a deal, so by having a coupon people feel they are indeed getting a deal or savings. You can promote your coupons online on social sharing networks or simply email to a list of clients and/or prospects.

3. Up-Sell

Online there are many opportunities to up-sell your customer without being pushy or feeling awkward like you may on the phone. Strategically placing upsell options during the point-of-sale process can increase your sales two-folds. Give bulk purchasing incentives to save money, discounts based on their payment method or plan, or offer an extra item or future discount based on them purchasing more, pair or show additional items based on what is in their cart, etc.

4. Create a Sense of Urgency

While promoting your deal, create a sense of urgency to complete the purchase. You can do this by putting a deadline on your promotion or offer and make it stand out. Even think about throwing in an additional deal if they complete the order by a certain time.

5. Make Checkout or Signup Area User Friendly

Take the time to properly research and study user preferences and needs. Have your IT team conduct a lengthy amount of user testing to ensure an ease of doing business with your company. Also, be sure to have any forms on your site tested as well. Keep them simple and only ask for the amount of information you absolutely need and nothing more.

Also, be sure to have a customer service team available for any and all questions that may arise during the purchase period, 24-hr online chat features are a great way to do this if you can sustain it.

6. Include Something for Free

A great way to retain a customer is by making their purchasing experience the best it can be. You can simply include an extra item when delivered or if you feel you need to encourage purchases you can offer an extra FREE item while your customer is shopping on your online store. Who doesn’t like something for FREE?

7. Highlight Special Features or Products

You see a lot of companies doing this now, but it does seem to work. Highlight your top selling products, products on sale or any special (or New) features you are trying to promote. This is a great way to move people through your website and make it easier for them to search for particular items. Someone may choose a different (more expensive or better) product if they feel other people use it more often.

8. Use a Clear and Prominent Call-to-Action
9. Add Images or Product Demos

Videos can dramatically affect the number of visitors on your website and the number of conversions you will get. In fact:

• 46% of people say that they would be more likely to make a purchase if they have seen a video or demo of the product first (Eloqua).
• The average user spends 88% more time on a website that uses video (Eloqua).
• Video and email marketing can increase click-through rates by more than 90% (Mist Media).
• Having video on your landing page or homepage makes it 53% more likely that Google will rank you on page 1 (Mist Media).
• Of 80% of video users, 46% of them took some sort of action after viewing the video (Video Brewery).

10. Include Customer Reviews or Testimonials

It is no secret that people who can build trust in their market are the ones who will get repeat buyers and people promoting and sharing their information. A great way to build trust is by including customer reviews and testimonials, even better include a video testimonial.

A test market, in the field of business and marketing, is a geographic region or demographic group used to gauge the viability of a product or service in the mass market prior to a wide scale roll-out.

Simulated test markets (STMs) provide sales estimates of new products prior to launch. They are used by management to make the “go/no-go” decision prior to the launch of the new product.

The following information is obtained at both the concept and after-use stages, for forecasting trial and repeat volume:

• Purchase intention: This is gauged through statements that describe how respondents feel about buying the product (See example in Exhibit 11.8).
• Share of preference: Respondents select one or more products from a competitive set displayed on a simulated shelf.
• Claimed units: Respondents are asked how much of the product, if any, they will buy.
• Claimed frequency: Respondents are asked how often, if ever, they would buy the product if it became available.

The criteria used to judge the acceptability of a test market region or group include:

• A population that is demographically similar to the proposed target market; and
• Relative isolation from densely populated media markets so that advertising to the test audience can be efficient and economical.

The test market ideally aims to duplicate “everything” promotion and distribution as well as “product” on a smaller scale. The technique replicates, typically in one area, what is planned to occur in a national launch; and the results are very carefully monitored, so that they can be extrapolated to projected national results. The area may be any one of the following:

• Television area
• Internet online test
• Test town
• Residential neighbourhood
• Test site

A number of decisions have to be taken about any test market:

• Which test market?
• What is to be tested?
• How long a test?
• What are the success criteria?

Disadvantages:

• Replicability: Even the largest test market is not totally representative of the national market, and the smaller ones may introduce gross distortions. Test market results therefore have to be treated with reservations, in exactly the same way as other market research.
• Effectiveness: In many cases the major part of the investment has already been made (in development and in plant, for example) before the `product’ is ready to be test marketed. Therefore, the reduction in risk may be minimal; and not worth the delays involved.
• Competitor warning: Test markets can give competitors advance warning of a company’s intentions and time to react. They may even be able to go national with their own product before the test is complete. They may also interfere with a test, by changing their promotional activities (usually by massively increasing them) to the extent that results are meaningless.
• Cost: Although the main objective of test markets is to reduce the amount of investment put at risk, they may still involve significant costs.

They evaluate the strength of the mix on underlying factors that make new products appealing to consumers, such as the following:

• Novelty: Rating product on uniqueness.
• Likeability (and Relevance): Overall liking of the product.
• Credibility: Believability of the statements made about the product.
• Affordability: Price/Value perception.

Steps to Implement a Test Market

• Set the Marketing Objectives: Objectives can be based on the following quantitative measures: Market Share, Sales Volume, proportion of the target market who try the product or make repeat purchase, length of the purchase cycle, levels of consumer satisfaction, distribution levels achieved, etc.
• Select the Test Market type: Standard, Controlled, or Simulated Test Market
• Establish a budget: The budget must include the cost to produce the product for the test market, all research costs, and all marketing costs, including the production of promotional materials and the cost to distribute promotional messages.
• Develop detail test plans: These plans cover manufacturing, target market definition, product formulation, distribution, pricing, and promotion.
• Select the Test Markets: Marketer typically will require two test markets and a control market. Test markets should be geographically dispersed are provide a good representation of the national target market. The test market should run for 6 to 12 months, or longer for products with a long purchase cycle. The test markets should have a wide variety of media outlets.
• Execute the Test Plan
• Analyze the Results

Competitive responses

Even companies that do analyze their competitors usually fail to consider that a rival might choose not to respond to a strategic move. In ignoring that possibility, the strategist lowers his estimate of the expected value of his company’s move: the higher the perceived probability of counteraction by competitors, the lower the expected payoff. And with a lower expected payoff, the company is less likely to take bold action.

The probability of a competitor’s response to a competitive action is based on four factors:

• The type of action
• The reputation of the competitor taking the action
• The competitor’s dependence on the market
• Competitor resource availability

Companies that are highly concentrated in or dependent on an industry (or market) in which a competitive action has been taken are more likely to respond than are companies who do business in multiple industries and markets. This implies that single and dominant-business companies (classifications that will be described fully later) will be more likely to respond to competitive actions initiated in their primary industry than would a diversified company (a company that does business in multiple industries). If the action has a major (negative) effect on these market- or industry-dependent companies, a competitive response is likely regardless of whether the action taken was strategic or tactical.

Scanner Data

Suppliers monitor the checkout scanner data to measure initial and repeat purchases as well as the sales of competitive products. Distribution of the marketer’s brand is “forced” into these stores. This has an advantage and disadvantage. The advantage is that distribution is guaranteed. The disadvantage is that the marketer cannot gauge retailer’s reactions to the new product. Other disadvantages of controlled test markets are that competitors can look at the new product before its national launch. Another concern is that even though the Scantrack and BehaviorScan propriety models are very sophisticated, it is questionable whether the shoppers at the test stores actually represent “average” targeted consumers for the brand being test marketed.

Purchase Simulation Test

Like controlled test markets, simulated test markets were designed to overcome the drawbacks of standard test markets. Simulated test markets are not conducted in real-world markets; they are laboratory tests. A simulated test market is a staged or artificial marketplace where researchers expose subjects to advertising and other marketing mix variable to gauge the subjects’ purchase intent. Simulated test markets are significantly faster and cheaper than standard test markets because the marketer does not have to execute the entire marketing plan.

The companies that run simulated test marketing ACNielsen’s Bases, Harris Interactive’s Litmus, and Synovate’s MarkeTest use a variety of mathematical models to estimate the effects of the tested variables.

Here is how a simulated test market works:

• Consumers are selected for the experiment based on the definition of the brand’s target market
• Consumers are invited to a central location were they are exposed to advertising or other stimuli for the test brand and its competitors
• Consumers are given an opportunity to buy the test brand in a real or simulated store
• Consumers are contacted after they had time to use the product, so researchers can gauge their satisfaction and interest in repurchasing the brand
• The data collected is then used as input for the simulated test market’s proprietary model.
• After the model has been run, estimates of market share, sales volume, and other metrics are presented to the client.