1 what is an advertizing media ? explain in detail the factors determine media selection?

Advertising media refers to the channels or platforms used to deliver promotional messages to a target
audience. These platforms help businesses communicate their products, services, or ideas to potential
customers. Common advertising media include traditional methods like newspapers, magazines, radio,
and television, as well as modern digital options such as social media, websites, email, and online ads.

Factors Determining Media Selection

Selecting the right advertising media is essential for reaching the target audience effectively and
achieving campaign goals. Below are the key factors that influence media selection:

1. Target Audience

Understanding the audience is crucial for media selection. This includes:

 Demographics: Age, gender, income, and education.

 Geographics: Location and regional preferences.
 Psychographics: Interests, behaviors, and lifestyle.

The media chosen should align with where the target audience spends their time. For instance,
younger audiences may prefer social media, while older ones might favor TV or newspapers.

2. Budget

The cost of advertising varies across media:

 Television and print ads can be expensive but offer high visibility.
 Digital platforms like social media or email marketing are often more affordable and
allow for precise targeting.

A balance between cost and reach is necessary.

3. Nature of the Product

The type of product determines the most suitable medium:

 Visual Products: Items like clothing or food benefit from visual platforms like TV,
YouTube, or Instagram.
  Complex Products: Services requiring detailed information (e.g., financial products) are
better suited for print media or email.

4. Reach

The size of the audience a medium can cover is important:

 Mass media like TV or radio offer broad reach.

 Digital platforms allow for narrower, targeted reach based on user data.

5. Frequency

Frequency refers to how often the audience sees the ad:

 Products with high competition may need frequent exposure on cost-effective platforms
like radio or social media.
 Durable goods may not require frequent reminders.

6. Credibility of the Medium

Some platforms are seen as more trustworthy:

 Traditional media like newspapers or TV often have high credibility.

 Digital platforms may require careful placement to build trust.

7. Timing

The timing of the campaign affects media choice:

 Radio works well during commuting hours.

 Social media and digital ads allow for precise scheduling to target users when they are
most active.

8. Geographic Coverage

The campaign's geographic focus matters:

  Local media like community radio or regional newspapers are effective for specific areas.
 National or international campaigns are better suited for TV, global digital platforms, or
large publications.

Conclusion

By considering these factors, businesses can select the most effective media to deliver their
message, ensuring it reaches the right audience while staying within budget and campaign
objectives.

2 what is sales promotion? Discuss various tools used in sales promotion?

What is Sales Promotion?

Sales promotion refers to short-term marketing strategies designed to stimulate immediate sales
and attract customers. These activities aim to provide additional value or incentives to
consumers, encouraging them to purchase a product or service. Sales promotions are often used
to boost sales during specific periods, introduce new products, or counter competitors.

Tools Used in Sales Promotion

Various tools are used to implement sales promotion strategies effectively. These tools can target
both consumers and businesses:

1. Discounts

Offering products at reduced prices attracts cost-sensitive customers and encourages quick
purchases. For example, “20% off” or “Buy One, Get One Free” deals are popular.

2. Coupons

Coupons provide a specific discount on a product or service. They can be distributed through
newspapers, websites, or email campaigns, helping to attract new customers or reward loyal
ones.
3. Free Samples

Providing free samples allows customers to try a product before purchasing. This is particularly
effective for new or unfamiliar products, such as food or beauty items.

4. Contests and Sweepstakes

Engaging customers through contests or sweepstakes creates excitement and encourages

participation. Winners may receive prizes, discounts, or free products, building brand loyalty.

5. Loyalty Programs

Rewarding repeat customers with points, discounts, or exclusive offers fosters long-term
relationships. Examples include airline mileage programs or store-specific rewards cards.

6. Trade Promotions

These are aimed at retailers or wholesalers, offering incentives such as bulk purchase discounts,
promotional allowances, or display allowances to encourage product stocking and promotion.

7. Bundling

Combining products into a package at a lower price than buying them separately encourages
customers to purchase more. For instance, tech companies often bundle gadgets with accessories.

8. Point-of-Purchase (POP) Displays

Strategically placed displays in stores grab customer attention and promote impulse buying.
These are often found near checkout counters.

9. Cashback Offers

Providing customers with a percentage of their purchase as cashback increases the perceived
value of a product and boosts sales.
Conclusion

Sales promotion is a powerful tool for increasing sales, building brand awareness, and attracting
customers. By utilizing tools like discounts, loyalty programs, and contests, businesses can
achieve short-term sales goals while fostering long-term customer relationships.

3 Explain in brief the elements of promotion?

Elements of Promotion

Promotion is a key component of the marketing mix, focusing on communicating a product or

service to the target audience. It consists of various elements that work together to create
awareness, stimulate interest, and encourage purchases. The main elements of promotion are:

1. Advertising

Advertising is a paid form of non-personal communication used to promote products or services.

It is delivered through various channels such as:

 Television
 Radio
 Newspapers
 Magazines
 Digital platforms (social media, websites).

Advertising aims to reach a large audience and build brand awareness.

2. Sales Promotion

Sales promotion involves short-term strategies to boost sales or attract customers. These include:

 Discounts
 Coupons
 Free samples
 Loyalty programs.

Sales promotion creates urgency and encourages immediate purchases.

3. Personal Selling

Personal selling is a direct form of communication where sales representatives interact with
potential customers to explain the product, answer questions, and close sales. It is highly
effective for complex or high-value products but can be time-consuming and expensive.

4. Public Relations (PR)

PR focuses on building a positive image of the brand or company through unpaid

communication. Activities include:

 Press releases
 Public events
 Sponsorships.

PR helps establish trust and credibility with the audience.

5. Direct Marketing

Direct marketing involves reaching out to customers directly through:

 Emails
 SMS
 Catalogs
 Telemarketing.

It allows businesses to target specific customers with personalized messages.

6. Digital and Online Marketing

This includes promotion through digital platforms such as:

 Social media ads

 Search engine marketing
 Content marketing.

Digital marketing is cost-effective and offers precise targeting and measurable results.
Conclusion

The elements of promotion work together to inform, persuade, and remind customers about
products or services. By integrating these elements strategically, businesses can effectively
communicate with their audience and achieve their marketing objectives.

4 explain in detail the INCOTERMS pricing?

INCOTERMS Pricing in International Marketing

INCOTERMS (International Commercial Terms) are standardized trade terms established by the
International Chamber of Commerce (ICC). They define the responsibilities, costs, and risks for
buyers and sellers in international transactions. These terms ensure clarity in global trade and
help avoid misunderstandings about pricing and obligations.

Key Components of INCOTERMS Pricing

When pricing under INCOTERMS, the following elements are specified:

1. Responsibility for Costs:

o Determines which party bears costs such as transportation, insurance, export
duties, and import duties.
o Helps in calculating the total cost for both the buyer and seller.
2. Risk Transfer:
o Defines the point at which the risk of loss or damage to goods shifts from the
seller to the buyer.
3. Delivery Point:
o Specifies the location where the seller fulfills their obligation to deliver goods.

Common INCOTERMS and Their Impact on Pricing

1. EXW (Ex Works)

 Seller’s Responsibility: Makes goods available at their premises.

 Buyer’s Responsibility: Covers all costs and risks from the seller’s location onward.
 Pricing: Lowest price since the seller only provides goods without handling logistics.

2. FCA (Free Carrier)

 Seller’s Responsibility: Delivers goods to a specified location or carrier chosen by the

buyer.
 Buyer’s Responsibility: Covers transport and insurance from the delivery point.
  Pricing: Includes local delivery costs.

3. FOB (Free on Board)

 Seller’s Responsibility: Delivers goods onto the shipping vessel at the port of origin.
 Buyer’s Responsibility: Covers costs and risks from the port onward.
 Pricing: Includes loading onto the vessel.

4. CFR (Cost and Freight)

 Seller’s Responsibility: Covers transport to the destination port but not insurance.
 Buyer’s Responsibility: Covers insurance and risks after goods are loaded onto the
vessel.
 Pricing: Includes freight but excludes insurance.

5. CIF (Cost, Insurance, and Freight)

 Seller’s Responsibility: Covers transport and insurance to the destination port.

 Buyer’s Responsibility: Covers risks after goods reach the port.
 Pricing: Higher than CFR due to added insurance costs.

6. DAP (Delivered at Place)

 Seller’s Responsibility: Delivers goods to the buyer’s specified location, excluding

import duties.
 Buyer’s Responsibility: Covers import clearance and duties.
 Pricing: Reflects door-to-door delivery minus import formalities.

7. DDP (Delivered Duty Paid)

 Seller’s Responsibility: Covers all costs, including delivery, insurance, and import
duties.
 Buyer’s Responsibility: None.
 Pricing: Highest price as it includes full service to the buyer.

Conclusion

INCOTERMS pricing depends on the agreed responsibilities between the buyer and seller.
Understanding these terms ensures accurate cost estimation and smooth international
transactions. Businesses should choose the appropriate INCOTERM based on the nature of the
goods, trade agreement, and customer preferences.
5 discuss in detail the methods of financing?

Methods of Financing in International Marketing

Financing is a critical aspect of international marketing as it enables businesses to manage cash

flow, fulfill export orders, and mitigate risks associated with cross-border trade. The right
financing method ensures that both buyers and sellers have the necessary funds to complete
transactions while minimizing financial risks.

Common Methods of Financing

1. Payment in Advance

 Definition: The buyer pays the seller before goods are shipped.
 Advantages for Sellers:
o Eliminates the risk of non-payment.
o Provides upfront cash flow.
 Disadvantages for Buyers:
o High risk if goods are not delivered as expected.
 Common Use: Trusted relationships or when buyers have low bargaining power.

2. Letters of Credit (LC)

 Definition: A guarantee issued by the buyer's bank to pay the seller once specific
conditions are met, such as shipment of goods.
 Types of LCs:
o Revocable/Irrevocable: Whether terms can be changed without consent.
o Confirmed/Unconfirmed: Additional guarantees from another bank.
 Advantages:
o Provides security for both parties.
o Facilitates transactions in unfamiliar markets.
 Disadvantages:
o Costly and time-consuming to set up.
 Common Use: High-value transactions or when parties are unfamiliar with each other.

3. Open Account

 Definition: The seller ships goods and allows the buyer to pay later, typically within 30–
90 days.
 Advantages for Buyers:
 o No upfront payment required.
o Eases cash flow management.
 Disadvantages for Sellers:
o High risk of non-payment.
o Requires strong trust or credit checks.
 Common Use: Established trade relationships or competitive markets.

4. Documentary Collections

 Definition: The seller’s bank acts as an intermediary to collect payment from the buyer
in exchange for shipping documents.
 Types:
o Documents Against Payment (D/P): Buyer pays to receive documents.
o Documents Against Acceptance (D/A): Buyer accepts a bill of exchange and
agrees to pay at a later date.
 Advantages:
o Lower cost than LCs.
o Reduces risk for sellers compared to open accounts.
 Disadvantages:
o Does not provide full payment security.
 Common Use: Moderate trust levels between buyer and seller.

5. Trade Credit

 Definition: The seller offers credit terms, allowing the buyer to defer payment.
 Advantages:
o Increases sales by accommodating buyers’ cash flow constraints.
 Disadvantages:
o Involves a risk of delayed or non-payment.
 Common Use: B2B transactions in established relationships.

6. Factoring

 Definition: The seller sells their accounts receivable to a third party (factor) at a discount
for immediate cash.
 Advantages:
o Improves cash flow for exporters.
o Shifts the risk of non-payment to the factor.
 Disadvantages:
o Costly due to service fees and discounted receivables.
  Common Use: When sellers require immediate funds.

7. Export Financing Programs

 Definition: Government or bank-supported programs providing loans or guarantees to

exporters.
 Examples:
o Export Credit Agencies (ECAs): Provide insurance or guarantees.
o EXIM Banks: Offer loans and credit to exporters.
 Advantages:
o Reduces risk for exporters and supports international growth.
 Disadvantages:
o May involve lengthy application processes.
 Common Use: High-risk markets or large export projects.

8. Forfaiting

 Definition: The seller sells long-term receivables to a forfaiter (a financial institution) in

exchange for immediate cash.
 Advantages:
o Eliminates credit risk for the seller.
o Suitable for capital goods transactions.
 Disadvantages:
o Higher cost due to forfaiter fees.
 Common Use: Long-term export contracts.

Conclusion

Choosing the right financing method in international marketing depends on factors like the trust
level between parties, the value of the transaction, and market conditions. Methods like payment
in advance and letters of credit prioritize seller security, while open accounts and trade credit
benefit buyers. Businesses must assess their risk tolerance and financial needs to determine the
most suitable approach.