UNIT 5 TECHNICAL MANAGEMENT IN AI32B

AN IMAGE CONSULTING COMPANY

INTRODUCTION
If you are an image consulting entrepreneur and would like to start your own
company, you may choose between a variety of business models.
One thing most companies have in common is paperwork.
There are dozens of forms that each company needs to fill our and keep on file for
several years: tax forms, client files, anual reports…
Keeping your company’s records can be tedious, but it’s absolutely necessary if you
want to operate a compliant business.
You shouldn’t overlook this crucial component of running a company.
UNIT OUTLINE
Documentation.
Data protection.
Documentation archiving systems and methods.
Sector-specific computer applications.
Users of the management programme.
Database creation and processing of the information.
DOCUMENTS AT AN IMAGE CONSULTING COMPANY

The processes involved in the management

of a personal image centre require
documentation, as well as knowing how to
locate and organise it quickly and
efficiently.
DOCUMENTS
The information needed is varied:
It ranges from product leaflets or equipment manuals to the centre's health and safety
rules.
In a personal image company there are many types of paperwork:
1. Information related to economic and labour management (bills, invoices, contracts…)
2. Information specific to the artistic or technical side
3. Client files
4. Training, demonstration and advice materials
5. Information about sales
KEEPING RECORDS. REASONS TO KEEP THEM
1. Many documents have to be kept because they are legally required.
2. Also, keeping your company’s documents and records has practical value for your
business:
 Your records help you track your business’s progress over the years
 Your tax data (IRPF, IVA…) from previous years will help you complete future tax reports.

3. These records prove that your business is compliant, and without that compliance,
your personal assets could be in jeopardy.
4. Essentially, proper records protect you and your business during any lawsuits and
audits.
5. Finally, good records could increase the value of your company by proving its
worth. If you ever wish to sell your business, the buyer will want to see your
records to back up the price you set.
DOCUMENTS
In some cases, this information comes from the professional's own personal archive, which has been
accumulated over the course of his or her career.
You may choose to use file cabinets and paper files for each client, or you may decide to go with
something a bit more high tech and keep all your client information in a computer database
ECONOMIC AND LABOUR MANAGEMENT
Invoices, lists of products available in stock, cosmetic cards, supplier data or quality
questionnaires are documents related to the management of a personal image centre.
An important characteristic of this type of documents is that they must be up to date at all
times and always within the reach of the professional.
A logical and easily accessible system should be created for all members of the team.
It is advisable to have a document detailing the different company’s files and how to manage
them.
To manage much of this data, there are computer programmes on the market that can be very
useful.
ECONOMIC AND LABOUR MANAGEMENT
Minutes from management and employee meetings
Income tax returns (and proof documents for any deductions you make)
Employment tax records
Copies of your annual reports
Accounting records
Bank statements and credit card statements
Human resources files (hires, terminations, applicants, etc)
CLIENT FILES
Advisory questionnaires, customer files and client reports on image consulting
proposals are customer service documents and should be prepared in advance.
For this documentation to be accessible, it must be easy to use. All employees should
be able to use it without any problems.
It is therefore recommended that everyone who is going to use it should be involved in
its preparation.
In addition, with everyone's collaboration, it will be easier to avoid possible errors in
its writing.
CLIENT FILES
In order to collect the personal data of the clients, it is convenient to create different
fields, in which some basic data must appear, such as the name and surname of the
client, the date of their first visit, the services they usually perform, etc.
 The subsequent use of this information allows us to know the preferences of our customers in order to
offer them a more complete service, adapted to their demands.

These forms contain information about our customers, so we must have a security
system that guarantees their confidentiality.
DATA PROTECTION
Personal data are protected in Spain by Organic
Law 3/2018 (LOPD) which aims to guarantee and
protect the citizens’ and fundamental rights and
concerning their honour and personal and family
privacy.
This means that citizens have power over the use of
their data, thus preventing their fundamental rights
concerning privacy from being affected.
Furthermore, this law determines that clients must
always be aware of the use that is made of their
personal data.
CONFIDENTIALITY
Hairdressing, beauty and image consultancy salons that own and handle personal data are obliged
to comply with a series of conditions that protect them, such as:
1. To register the data files with the Spanish Data Protection Agency.
2. The data should be obtained in a lawful manner and with the consent of the owners.
3. The data should only be used for the purpose for which they were collected.
4. To comply with the duties of secrecy and data security.
5. To Guarantee the holder's right to use, access, rectify and cancel them.
6. To make sure that when third parties are involved in the service provided, they also comply
with the LOPD.

The person responsible for the file and the documents containing the data is the entity or
administrative body that has decided on the purpose, content, treatment and use of the personal
data.
SECURITY SYSTEMS
In the computer environment, the word security can cover various aspects:
1. Theft of equipment
2. Breakage of equipment
3. Operation of computer applications
4. Access to information contained in the computer
5. Fraudulent use of information.
SECURITY SYSTEMS
It is the data contained in the computer equipment that can be of real concern and it
is therefore necessary to establish access controls for the different users.
SECURITY SYSTEMS
It is important to have an anti-virus programme to prevent the loss of information and
an external professional who can access it via the Internet.
The antivirus must be updated to guarantee security and neutralise possible attacks
on the system.
SECURITY SYSTEMS
All computer equipment and software should also be insured in case they need to be
replaced and the possible consequences of legal liability for conflicts or misuse of
information should be taken into account.
HOW CAN YOU KEEP YOUR DOCUMENTS?
While the law dictates that you keep records, it does not explicitly say how to
keep them, so you have the liberty to choose your method for record-keeping.
Whatever method you choose, you should ensure that your records will be:
 Organized
 Thorough
 Protected.
 HOW CAN YOU KEEP
YOUR DOCUMENTS?
Traditionally, company’s records have been
kept as printed, hard-copy files in
a physical kit.
Some companies still use this method, but
many opt for more environmentally
friendly electronic files.
With either method, your records should
be backed up in case of loss, because
paper files would be susceptible to fire
and water damage, and online files could
get deleted or lost on accident.
DOCUMENT CREATION
Documents may be created by several members of the company.
The company manager creates resolutions and annual reports.
Secretaries and team members create the minutes during each meeting.
Accountants are often tasked with creating and maintaining financial records, tax
returns, bank statements, and other financial documents.
All of these documents, once created, need to be maintained in your corporate
records.
FOR HOW LONG DO YOU KEEP YOUR DOCUMENTS?
Many documents do not have to be kept permanently, however.
The length of time you need to keep a record depends on the document in question
and the country or community laws.
Company’s record-keeping can be confusing and difficult, even if you operate a
small company.
The biggest challenge with record-keeping is simply making sure you have all the
documents you need.
If you’re ever audited, or if your business is sued, you could be in serious trouble if
you don’t have all the necessary forms.
COMPUTER AND SOFTWARE
The first thing on the tech list is a computer, you probably have one.
Make sure you have the latest antivirus software.
Consider business versions of programs you currently use, as well as the following:
• Accounting software
• Desktop publishing software: Microsoft Publisher or other desktop publishing
programs you can use to make brochures and other business materials.
• Database management software: programs that you may use for tracking contacts,
clients, and projects.
MARKETING INTRODUCTION
Unit 6 AI32B
We are going to consider marketing evolution in history according to
Philip Kotler.
He is an American marketing author, consultant, and professor
emeritus at Northwestern University
He is known for popularizing the definition of marketing mix.
He is the author of over 80 marketing books.
Each marketing step brings in different marketing concepts.
MARKETING EVOLUTION
• Marketing 1.0 is product-oriented marketing.
• Marketing 2.0 is customer-oriented marketing.
• Marketing 3.0 is human-oriented marketing.
• Marketing 4.0 is taking place with a shift towards digital.
• Marketing 5.0 has arrived. It is materialising against the backdrop of
three major challenges:
• The generation gap
• The polarisation of prosperity
• The digital divide
• Marketing 3.0 is the last stage of traditional marketing as it completes
the intellectual, emotional and spiritual needs of customers.
• It took almost 70 years for marketing to evolve from product
orientation to human centrality.
• During those decades several concepts stood the test of time despite
their traditional nature:
• The notion of segmentation and targeting
• The notion of market positioning
• The 4 Ps model (product-price-place-promotion)
 Product-focused. The main Strategies are developed to get
goal is to sell the product. to know customers by taking
The brand is made known into account their emotions and
without taking customers needs. The aim is to be able to
into account offer the products and services

• Decisions made must be environmentally responsible, making the they demand

world a less polluted place. Green Marketing kicks off

It uses the Internet of

Decisions made must
Things and Artificial
be environmentally
Intelligence algorithms
responsible, making the
to determine precisely
world a less polluted
what we would like to
place. Green Marketing
consume at certain
kicks off
times

It includes the digital

channels that have been
emerged which have merged
with traditional marketing
channels
EVOLUTION OF MARKETING: 1.0 PRODUCT-
CENTRIC MARKETING
• The beginnings of marketing took place in the
1950s in the United States.
• This was product-focused marketing.
• It was developed to cater to wealthy baby-boomers
and their parents.
• The aim was to produce perfect products and
services that would produce value in the minds of
customers.
• Products and services that outperformed their
competitors in terms of their characteristics
prevailed.
• The marketing concepts were based on:
• The life cycle of products.
• The 4 Ps (Product, Price, Distribution/Place,
Promotion/Communication)
• In this context, companies pushed to create
consumer needs. The era of consumerism began.
 2.0 CUSTOMER-CENTRIC
• Counter-cultural and anti-consumerist movements of
the 1960s-70s.
• In the economic recession of the 1980s there was a
general decline in purchasing power.
• Baby boomers and generation X are here.
• Marketing changes its formula and focuses on the
customer.
• The new concepts emerging are segmentation,
positioning and target market.
• Companies no longer create perfect products and
services for everyone. They select the features that are
important to meet the needs and wants of a particular
audience and tailor prices for that audience.
• The focus is on the customer relationship to retain
customers and prevent them from going to competitors.
• The objective is customer satisfaction.
3.0 HUMAN-CENTRED
• The global financial crisis in the late 2000s
triggers another marketing evolution.
• Generation Y arrives, empowered by free
access to information and disturbed by
scandals in the financial industry.
• This generation develops a low level of trust
towards purely for-profit companies.
• Generation Y demanded that companies
create products, services and cultures that
have a positive social and environmental
impact.
• A new era of marketing is emerging in
which companies are beginning to
incorporate ethical and socially responsible
practices into their business model.
4.0 FROM TRADITIONAL TO DIGITAL
• Digitalisation complements the
trend towards human centrality.
• Generation Y, and to some extent
Generation Z, are moving towards a
digital economy.
• The rise of mobile internet, social
media and e-commerce is changing
the customer's path to purchase.
• Marketers are adapting to this
change by communicating and
offering products and services
through an omni-channel presence.
• There is a shift from a traditional to
a digital approach.
5.0 Technology for humanity. One to one
marketing
• With the rise of generation Z and generation alpha, the interests of these younger
generations are:
• Bringing positive change to humanity
• Improving the quality of human lives
• To promote the advancement of technology in all aspects of humanity.

• Marketers must now bring together the goals of human-centred marketing and
digital marketing.
• Marketing is evolving to adapt to a constantly changing market.
• Each customer is unique and with the support of technology, marketing can be
done on a one-to-one basis, driven by personalisation at the individual level.
• In the present and future, marketers will serve one-to-one, through a unique set
of preferences and behaviours.
5.0 Marketing instruments
• Marketing 5.0 is based on the application of technologies that mimic
humans to create, communicate, deliver and enhance value throughout
the customer journey:
• It is based on so-called next tech that facilitates human marketing activities
• Artificial intelligence
• PLN
• Sensors
• Robotics
• Augmented reality
• Virtual reality
• Internet of Things
MARKETING CHALLENGES TODAY
• Generation gap
• Polarisation of prosperity
• Digital divide
Todays generations
THE GENERATION GAP AND THE EVOLUTION
OF MARKETING
• It is useful to see the general direction of marketing's evolution by
looking at the core market that companies will serve today and in the
future.
• Understanding the collective demographic shift in the market is the
fundamental way to predict where marketing is headed.
• The generational approach is one of the most popular forms of mass
market segmentation. The premise is that those born and raised in
the same period have experienced the same significant events and
therefore share socio-cultural experiences and are likely to possess
similar sets of values, attitudes and behaviours.
The generation gap
Five generations coexist today:
1. Baby boomers: The ageing of the economic powerhouse.
2. Generation X: Leaders and middle siblings
3. Generation Y: Millennial questioners.
4. Generation Z: First digital natives
5. Generation alpha: Children of the millennials.
 Baby boomers
• They were born between 1946-1964.
• They are so named because they were born
during a baby boom that took place after the
Second World War in Europe and after the
Spanish Civil War.
• The baby boomers are a major economic force.
• For many years they have been the focus of most
marketing strategies, before Generation Y
overtook them in numbers.
• Today, as they live longer and healthier lives,
more and more baby boomers are delaying their
retirement and extending their careers beyond
the age of 65.
• They are mainly in executive functions.
• They are often unwilling to adopt new
technologies and prefer conventional purchasing
methods.
 Generation X
• Generation X is the demographic group of people born between 1965 and
1980.
• Among marketers, it has been overshadowed by the popularity of the baby
boomers and Generation Y, the millennials.
• This generation entered the workforce well off.They have often grown up in
dual-earner or divorced families, have spent less time with their families and
have become more connected to their friends.The strong relationship with
their peers within Generation X gave rise to various depictions of friendship
in hit TV shows of the 1990s such as Beverly Hills or Friends.
• In their middle age they have experienced major changes in consumer
technology which has given them a great capacity to adapt: from Walkman
tapes to CDs and mp3s.
• Their entry into the workplace has been marked by the rise of the Internet
and they have been quick to embrace connectivity.
• Generation X is one of the most influential in today's workforce. They have
an average work experience of over 20 years and a strong work ethics.
• They occupy the majority of leadership positions in companies. They have
found it difficult to move up the corporate ladder due to the extended
retirement of the baby-boomers and so many members of this generation
left their companies in their forties to set up their own businesses.
 Generation Y
• The millennial generation was born between 1981 and 1996.
• The most talked about in recent decades, they are called millennials because
they have come of age in the new millennium.They are the children of the
baby boomers and have therefore represented another peak in the birth rate.
• They have received more and better education than previous generations.
They are more culturally diverse.
• They are the first generation strongly associated with the use of social
networks. Unlike Generation X who used the internet at work for professional
reasons, Generation Y were introduced to the internet at a much younger age
and have integrated social networking and other technological media into
their personal goals. They are very open on social media in terms of
expressing themselves and often compare themselves to their peers from
whom they feel the need for validation and approval.
• They are easily influenced by the speeches and purchases of other
millennials. They trust them more than they trust established brands.
• This generation researches and buys a lot online, often from their mobile
phones. Their purchasing needs are lower than in other generations as they
are characterised by a preference for experience over ownership. They are
more focused on accumulating life stories than wealth and assets. It is a more
open-minded and idealistic generation.
• They question everything which makes them prone to develop conflicts in the
workplace with older generations, who expect them to follow the rules.
 Generation Z
• This generation is also known as the centennials, born
between 1997 and 2009.
• Many of them have witnessed the financial hardship of
their parents and older siblings, so they are more
financially aware than Generation Y.
• They have a penchant for saving money and consider
financial stability an essential factor in their career choices.
• They are the first digital natives, as they were born when
the Internet was already widespread.
• They understand digital technologies as an essential part of
everyday life. They consume content continuously across
multiple screens. They record their daily lives on social
media through photos and videos that show more
authentic and honest versions of themselves than
Generation Y.
Generation Z
• They don't trust brands that disseminate retouched, too-good-to-be-true images.
• They are more willing to share personal information than previous generations, so they
want brands to be able to deliver personalized content, offers and customer experiences.
• Like Generation Y, Generation Z is very concerned about social change and environmental
sustainability and they trust brands that put an emphasis on solving these issues. They
believe their brand choices compel companies to improve their sustainability practices.
• They seek ongoing engagement throughout their relationship with brands. They expect
them to be as stimulating as their mobile and gaming devices, renewing their offerings
and providing new interactive experiences for customers.
• Companies that want to keep Generation Z as customers have to deal with a very short
product and service lifecycle.
• Generation Z has already outnumbered Generation Y globally. By 2025 they will make up
the majority of the workforce and become the most important market for products and
services.
 Generation alpha
• It is made up of those born between 2010 and
2025.
• The name comes from the Greek alphabet and
describes an entirely new generation that will be
shaped by technological convergence.
• Not only are they digital natives, but they are
shaped by the digital behaviours of their parents,
Generation Y and older Generation Z siblings.
• The launch of the first iPad, a device to which
most children are attached, marked the
emergence of the generation in 2010.
• Their parents have married later in life and have
placed more emphasis on raising and educating
their children. They talk to them about money
and finances from a very early age and raise
them in diverse and fast-paced urban
environments.
• It is a well-educated, tech-savvy, inclusive and
social generation.
Generation alpha
• They have had longer screen time than previous generations, watch online videos and play games
on their mobile devices on a daily basis.
• They have their own YouTube channels and Instagram accounts created by their parents.
• They are a generation more open to branded content, such as toy review channels on YouTube,
their learning style is hands-on and experiential.
• They are comfortable with tech and smart devices and wearables because they see technology as
an integral part of themselves.
• As they grow up they continue to adopt and use technologies that mimic humans, such as AI,
voice commands and robots.
• Currently they do not have great purchasing power but they do have a strong influence on the
spending of others.
• Statistics show that 74% of parents of this generation involve their children in household
decisions.
• Some of these children have become influencers on social media as role models for other
children. It is only a matter of time before they become the focus of global commercial attention.
 1.UNIT 6 AI32B
BASIC MARKETING CONCEPTS
INTRODUCTION
Marketing is a complex planning process with a fundamental role in a highly
competitive business world that offers consumers lots of similar products and services.
In fact, it helps producers to find out what their opportunities on the market are and
to clearly identify and understand their potential customers' requirements before
investing capital and bringing a new product or service to market.
The marketing process aims, at creating an appealing, innovative, but also profitable
product for the right target customer, at the right price he is willing to pay, at the
right time, through the right distribution channel and using the most appropriate
advertising means.
1. Basic concepts of marketing management.
2. Types of marketing.
3. Marketing plan.
MARKETING CONCEPT
Marketing is usually confused with advertising and promoting, which are only some steps of this ongoing
business process made up of four distinct stages:
1. Researching and analysing: collecting data about products, potential consumers and competitors on
the market, to determine whether or not there are any opportunities.
2. Planning: identifying strategies to use to achieve results in your target market.
3. Implementing: creation of the right product according to what has been planned in the previous
stage. Success or failure depend almost entirely on the work done in the analysis and planning
stages. If plans are realistic and based on reasonable analysis, the end will be achieved, i.e.
consumers will buy the product
4. Monitoring and controlling: checking the performance of the product on the market, customers'
changing habits and competitors to adjust marketing strategies accordingly.
MARKETING
There are various standard definitions of marketing.
All marketing activity is about the clients, focused at acquiring them and retaining
them.
Marketing is a business function and set of processes involved in creating, delivering
and communicating value to customers, followed by managing customer relationships,
resulting in mutual benefit for the business and its stakeholders.
Marketing is also the science of selecting target markets via market analysis and
segmentation, with a comprehensive knowledge of buying behaviour, aiming to
provide the best customer value.
Needs, wants
and demands
are three
important
terms in
marketing.
NEEDS
Needs are the basic human requirements like shelter, clothes, food, water, etc. which
are essential for human beings to survive.
If we extend this further, other needs are education, healthcare or even a social
acceptance or the feeling of belonging to a group.
Needs can be real or not, i.e. the customer can create needs and the satisfaction of
these needs depends on his perceptions, it is subjective.
MASLOW’S PYRAMID

Maslow's hierarchy of needs is a

motivational theory in psychology
comprising a five-tier model of
human needs, often depicted as
hierarchical levels within a pyramid.
Needs lower down in the hierarchy
must be satisfied before individuals
can attend to needs higher up.
WANTS
Wants come after the needs of people are met.
It is a desire for a product or service the people wish for, that isn’t essential for a
proper life.
Wants aren’t essential for survival but correlate to human needs (i.e. a good-smelling
soap).
Human wants tend to be more temporary and can evolve over a period.
Social and emotional factors and the background you come from have an influence
on human wants.
DEMANDS

Demand is when there is a want for specific products, coupled with the ability to
purchase them.
The ability to buy plays a huge factor in demands.
Primary demand refers to a want backed by a buying ability.
PRODUCT
A product is an item offered for sale.
It can be physical or in virtual form.
Every product is produced at a cost and each
is sold at a price.
The price that can be charged depends on
the market, the quality, the marketing and the
segment that is targeted.
Each product and service has a useful life
after which it needs replacement, and a life
cycle after which it has to be re-invented.
SERVICE

A service is any activity or

benefit that one party can offer
to another, which is essentially
intangible and does not result in
the ownership of anything.
Its production may or may not be
tied to a physical product.
VALUE
Also known as customer-perceived
value, value is the difference
between a potential client's
evaluation of the benefits and
cost of your products or services
when compared to others in the
market.
MARKET
A market is defined as the sum total of all the buyers and sellers in the area or
region under consideration. The area may be the earth, or countries, regions, states,
or cities.

The value, cost and price of items traded are as per forces of supply and demand in
a market.
TARGET GROUP, TARGET MARKET
A target market is a group of
customers with shared
demographics who have been
identified as the most likely buyers
of a company's product or service.
Identifying the target market is
important in the development and
implementation of a successful
marketing plan for any new
product or service.
 SEGMENTATION
Market segmentation is the process of dividing a broad
consumer market, normally consisting of existing and
potential customers, into sub-groups of consumers (known
as segments) based on some type of shared characteristics.
In dividing or segmenting markets, researchers typically look
for common characteristics such as shared needs, common
interests, similar lifestyles, or even similar demographic
profiles.
The overall aim of segmentation is to identify those segments
that are likely to be the most profitable or that have growth
potential. This segments are selected for special attention and
become target markets.
Many different ways to segment a market have been
identified (demography, geography, behavior…)
MARKETING DEFINITION
1. Marketing is based on the analysis of the customer's needs and desires, trying to anticipate them, preparing in advance
what they will ask for in some time.

2. It is oriented towards the target public that has been segmented and to satisfy their needs.

3. Knowing the customer is the basis of marketing.

4. It affects all areas and everyone who works in a business. It influences what services are offered, how they are offered,
how they are advertised, how the customer is spoken to.

5. It includes the sale of the good or service that a customer demands (you don't sell them what they don't need).

6. It aims to satisfy the customer, doing better than the competition and increasing sales and therefore profit.

7. A company created with a marketing approach fosters a business culture focused on delivering value to the customer, will
differentiate its products from those of its competitors, and will anticipate future customer needs by constantly innovating.
STRATEGIC VERSUS OPERATIONAL MARKETING
When carrying out a marketing plan, there are two levels: operational and strategic,
which directly influence the business management model:
1. Strategic marketing takes into account the values and objectives of the companies
(data, market analysis…). It focuses on the future of the company, expanding a business
plan to last for three to five years.

2. Operational marketing focuses on more short-term ideas and implementation tactics.

Decisions are taken for specific actions (promotion, mailing…). Leaders managing
operational marketing may create plans that consider up to a year in the company's
future.
TRADITIONAL (1.0, 2.0, 3.0) VERSUS ONLINE
MARKETING (4.0 AND 5.0)
Traditional marketing includes conventional print, radio, and television advertising
and attendance at trade exhibits, fairs and conferences, word-of-mouth or direct
mail.
Online marketing includes a growing collection of tools such as content marketing,
search engine optimization, use of social media, event marketing, influencer
marketing or database marketing.
 MARKETING MIX
It is the set of marketing tools that a company uses to pursue
its marketing objectives in the target market.
The marketing-mix concept emerged in the eighties.
The contemporary marketing mix which has become the
dominant framework for marketing management decisions
considered 4 aspects (the four Ps): product, place, price and
promotion.
In services marketing, an extended marketing mix is used,
typically comprising 7 Ps, made up of the original 4 Ps
extended by process, people and physical evidence.
THE FOUR PS IN MARKETING MIX
The four Ps are the four essential factors involved in marketing a product or service to the public.

1. Product: the first marketing decision is understanding of the product or service itself. Who needs it, and why? What does it provide that is
different to your competitiors? You should define the product or service and its qualities to introduce it to the consumer.

2. Place: This means placing a product only in certain stores and getting it displayed to the best advantage. Regarding services marketing, it
may also refer to advertising the them in the right media to get the attention of target consumers.

3. Price: this is the amount that consumers will be willing to pay for a service. You must link the price to the service's real and perceived value,
while also considering supply costs, seasonal discounts, competitors' prices, and retail markup.

4. Promotion: the goal of promotion is to communicate to consumers that they need this service and that it is priced appropriately. Promotion
encompasses advertising, public relations, and the overall media strategy for introducing your service.

Often when taking this decisions, you may tie together promotion and placement elements to reach your core audiences.
THE SEVEN Ps

Physical
Evidence
CHOOSE YOUR TARGET MARKETS
Before you start trying to sell your services to client prospects, you should decide
which types of clients you want for your professional activity.
These are your “target” markets.
Novice higher technicians in image and corporate consulting are often tempted to say
they want any client who is willing to pay. Avoid the temptation.
The needs of clients are as diverse and idiosyncratic as human nature itself.
That makes it costly and time-consuming to market your services to “everyone.”
Indeed, client prospects, especially at the lucrative corporate level, are more likely to
respond positively to you if you position yourself as a specialist who connects with
their needs.
STARTING YOUR BUSINESS
When you’re just starting out, of course, you may not be in a position to sell a specialty,
since profitable specialists trade on track record, and you have to start somewhere.
You might have individual or corporate clients.
Nevertheless, as soon as you can, focus your business-building efforts on the target
markets that are most suited to your interests and expertise.
As you get more business you will be able to be more selective about the projects you
undertake.
Getting to that point requires you to be aware of the characteristics of various target
markets and of the implications of those characteristics for your marketing strategy.
MARKETING PLAN

A marketing plan is a document that

lays out the marketing efforts of a
company in an upcoming period,
which is usually a year.
It outlines the marketing strategy,
promotional, and advertising activities
planned for the period.
ELEMENTS OF A MARKETING PLAN
A marketing plan will typically include the following elements:
1. Marketing objectives of the business: The objectives should be attainable and measurable – two goals
associated with SMART, which stands for Specific, Measurable, Attainable, Relevant, and Time-bound.
2. Current business marketing positioning: An analysis of the current state of the organization concerning its
marketing positioning.
3. Market research: Detailed research about current market trends, customer needs, industry sales volumes,
and expected direction.
4. Outline of the business target market: Business target market demographics.
5. Marketing activities: A list of any actions concerning marketing goals that are scheduled for the period
and the indicated timelines.
6. Key performance indicators (KPIs) to be tracked
ELEMENTS OF A MARKETING PLAN
7. Marketing mix: A combination of factors that may influence customers to purchase products. It should be
appropriate for the organization and will largely be centered on the 4Ps of marketing – i.e., product, price,
promotion, and place.
8. Competition: Identify the organization’s competitors and their strategies, along with ways to counter competition
and gain market share.
9. Marketing strategies: The development of marketing strategies to be employed in the coming period. These
strategies will include promotional strategies, advertising, and other marketing tools at the disposal of the
organization.
10. Marketing budget: A detailed outline of the organization’s allocation of financial resources to marketing
activities. The activities will need to be carried out within the marketing budget.
11. Monitoring and performance mechanism: A plan should be in place to identify if the marketing tools in place
are bearing fruit or need to be revised based on the past, current, and expected future state of the
organization, industry, and the overall business environment.
80:20 RULE, THE PARETO RULE
In 1906, an Italian economist named Vilfredo Pareto created a mathematical formula to describe the unequal division of wealth in his country. The Pareto
principle (also known as the 80/20 rule or the law of the vital few) states that in many cases, roughly 80% of the effects of action comes from 20% of the
causes.

A marketing plan should observe the 80:20 rule: for maximum impact, it should focus on the 20% of products and services that account for 80% of volumes and
the 20% of customers that bring in 80% of revenue.

Other examples of the Pareto rule:

80% of your sales volume is generated by 20% of your customers

80% of your revenues are generated by 20% of your products

80% of your complaints come from 20% of your customers

80% of your quality control issues involve 20% of your products

 2 UNIT 5 AI32B
THE CLIENT
CUSTOMER, CLIENT AND CONSUMER
Is it the same?
CUSTOMER
Collins dictionnary:
A customer is someone who buys something, especially from a shop.
So, the word is mainly used for products, but it could also be used for services.
CLIENT
Collins dictionnary:
A client is a person or company that receives a service from a professional person or
organization in return for payment.
So this is a concept related to services
CONSUMER
A consumer is a person who buys things and uses them or uses services.
CUSTOMER, CLIENT AND CONSUMER
So:
You can use “customer” and “consumer” both for products and services
But, “client” is used specifically for services.
So as image consultants you can always talk about your clients.
TYPES OF CLIENTS
There are many ways to classify clients. We will use the following one. There is a Word file
with this clients’ characteristics and suggestions about how to deal with them.
1. Uncertain clients
2. Urgent clients
3. Unresponsive clients
4. Unrealistic clients
5. Empathetic clients
6. Clients concerned with costs
7. Clients who monitor your work closely
8. Clients who request changes after delivery
TYPES OF CLIENTS
9. Indecisive clients
10. Efficient clients
11. Traditional clients
12. Clients who work overtime
13. Trendy clients
14. Clients with negative experiences
15. Clients concerned about security
16. Clients with personal connections
 SALES PROCESS
UNIT 6 AI32B
SALES PROCESS
• Any business needs to earn revenue for success.
• This can only be achieved by:
◦ Obtaining new customers
◦ Satisfying the needs of existing customers
◦ Trying to win back old customers
SALES PROCESS
• A salesperson or a professional who serves his customers with a forward-looking approach, is
not the one who supplies the customer just with what he asks for, nor the one who sells any
product just for profit.
• Remember that the ultimate goal of any sales technique must be to satisfy the customer's
needs.
• In order to sell, it is necessary to follow some steps in the sales process that on the long run:
• Will achieve greater customer satisfaction
• Promote professional credibility and trust
• Will translate into greater profitability.
• Those steps provide a good outline for what you should be doing to
• Find potential customers and close the sale
• Retain your clients for repeat business and referrals in the future.
SALES STEPS
1. Prospecting
2. Preparation
3. Approach/make contact
4. Questioning
5. Presentation
6. Handling objections
7. Closing
8. Follow-up
1. PROSPECTING
Sales prospecting definition: the
process of identifying potential
customers in order to generate
new business.
In this stage, you find potential
customers and determine
whether they have a need for
your service and whether they
can afford what you offer.
Evaluating whether the
customers need your product or
service and can afford it is
known as qualifying.
 2. PREPARATION
• Sales need recommendation, advice
and counselling.
• To sell, a professional must be
trained and informed.
• Sales also need some planning.
• Professionals must respond to their
clients' needs, provide solutions and
back up their arguments with facts,
judgment and credibility.
2. PREPARATION
• In order to gather all the information and what we know about each service or product, it is
interesting to prepare sales sheets or sales pitches.
• Before setting the first contact with a potential customer, you must:
• Perform some market research
• Collect all relevant information regarding your product or service.

• Develop your sales presentation and tailor it to your potential client’s particular needs.
• Preparation is key to setting you up for success.
• The better you understand your potential client and their needs, the better you can address their
objections and reinforce the differences and advantages as compared with your competitors.
 3. APPROACH: MAKE CONTACT
• Next, make first contact with
your client. This is called the
approach. Sometimes this is a
face-to-face meeting,
sometimes it’s over the phone
or through email…
• You will need to introduce
yourself, to build some initial
trust, and ultimately start a
conversation.
• The sale comes later.
 4. PROBING/QUESTIONNING
• Sales is about helping people get what they want. So
the first step is to know:
• What they want
• And why they want it.
• For that purpose you will have to ask them some
questions.
• Be careful: There’s an art to probing and questioning.
• Too fast, too much and you’ll push people away.
• Too slow, too little and you won’t be helpful.
• There’s a saying that people don’t care what you know
until they know how much you care. Asking the right
questions at the right time lets them know you care.
 5. PRESENTATION
• In the presentation phase, you actively demonstrate how
your product or service meets the needs of your potential
customer.
• The word presentation implies
• Having a deep knowledge of the product or service that you
are selling
• Think about creative ways you can present and package your
offer.
• Actively listen to your customer’s needs
• Act and respond accordingly
• Keep your offer relevant, targeted, and personalized to the
needs you previously discussed.
• Connect your offer to their challenges, budget, and long-
term ambitions.
6. HANDLING OBJECTIONS/CHALLENGES
• This is where you listen to your client’s concerns and
address them.
• It’s also where many unsuccessful salespeople drop out
of the process:
• 44% of salespeople abandoning pursuit after one
rejection
• 22% after two rejections
• 14% after three
• 12% after four

• 80% of sales require at least five follow-ups to convert.

• Ability for handling objections and alleviating concerns
is essential for successful sales
7. CLOSING
• In the closing stage, you get the
decision from the client to move
forward.
• You’ll need to develop purposeful
skills that help you determine that the
client is ready to buy, and then take
steps to connect him/her to the
purchase.
• You will lead the customer to accept
the solution that you have co-created
and make it his or her own.
8. FOLLOW-UP
• Once you have closed the sale, your
job is not done.
• The follow-up stage keeps you in
contact with clients you have closed,
not only for potential repeat business
but for referrals as well.
• And since retaining current customers
is six to seven times less costly than
acquiring new ones, maintaining
relationships is key.
SALES FUNNEL
 QUESTIONING. TYPES OF QUESTIONS
• Sales questions help you:
• Find out what’s going on in your client’s world.
• Connect with your clients.
• Understand your client’s needs and what’s important
to them.

• Sales questions help you disrupt client’s thinking

and change his/her perception of what’s true and
what’s possible.
• Sales questions help you drive the sale forward
and avoid pitfalls that can derail the sale along the
way.
TYPES OF QUESTIONS

• Open ended questions:

• Broad open-ended questions
• Specific open-ended questions

• Closed ended questions

• Alternate questions
 OPEN-ENDED QUESTIONS
• An open-ended sales question is a question with no
definitive answer, aimed at prompting a longer or more
insightful response from a client.
• They are difficult to answer in less than a sentence.
• They are useful to relax the customer, and encourage
him/her to talk to you about his/her needs, wants, and
desires.
• They may be used at the beginning of the questioning
phase.
• Open-ended questions can be further divided into broad
and specific questions.
BROAD OPEN-ENDED QUESTIONS
• Broad open-ended sales questions get people to open up
and start talking.
• They’re great for helping you find out what's going on in
your buyers’ world and are essential to sales success.
SPECIFIC OPEN-ENDED QUESTIONS
• Specific open-ended sales questions are more
exploratory. Some buyers might not share much
information when you ask broad open-ended
questions, or they might not know the answers.
• They begin typically by “what”, “why”, “how”,
“when”, “where”…
CLOSED-ENDED QUESTIONS
• A closed-ended question is answered with a
single word: yes, no, with a number, an
adjective…
• Closed-ended sales questions are great to
confirm needs.
• Whether you get a “yes” or a “no” answer,
it’s easy to follow up and get the buyer to
elaborate.
ALTERNATIVE QUESTIONS
• Alternative questions give you precise
detail down to the smallest level.
Red or Blue?
• There are useful at the end of the sales
process Spring or Summer for your wedding date?

• As you get the answers to your Celebrate your jubilee party this month or
alternative questions you should be next month?
putting the final detail to your sales
follow up document.
 SIGNS BEFORE YOU CAN CLOSE A SALE
• Selling face-to-face is a hands-on, interactive process.
• When your client is ready, that’s when you want to close
the sale.
• But if push too early you’re likely to encounter resistance.
• If you attempt to close a sale before the client is ready to
buy, you may be spoil the sale process.
• Clients may actually give many cues that they're ready to
buy what you're selling.
SIGNS BEFORE YOU CAN CLOSE A SALE
When clients are ready to buy they often send this cues:
1. They ask clarifying questions
2. They ask about the price
3. They make eye contact
4. They’re in the right mood
5. They filter out distractions
6. They are responsive to your questions
7. They mirror you
8. They use a possessive tone
 CLOSING TECHNIQUES
• Timing is critical when it comes to closing a sale.
• When you see a few of the previous signs during your sales
pitch, this may be your cue that you can indeed close a
sale.
• Ask if they’re ready to proceed, and make this deal into a
reality.
• Some closing techniques are:
• The assumptive close
• The time-limit close
• The custom close
 THE ASSUMPTIVE CLOSE
• It is the most generic and the one to use if you haven't
been able to fit the prospect to a more customized close.
• After making the presentation and answering the
prospect's questions, ask a question that assumes your
prospect is about to buy the product.
• Would you prefer red or blue?
• Our standard delivery can have this to you by Tuesday, or will
you need our rush delivery option?
• Will ten units do for a start?
• I can get you a 10% discount if you pay in advance, would that
work for you?
 THE TIME-LIMIT CLOSE

• This is a good one to use if your client utters the fatal

phrase “I'd like to think it over first.”
• Pause for a beat, then:
• Mention a discount that will expire in two days or a promotion
such as a gift with purchase that's about to end.
• Of course, this only works if such a limitation exists
• You may be able to work with your sales manager to come up
with limited-time offers to use if you don't have company-
wide ones.
THE CUSTOM CLOSE
• If you've qualified the customer well, you've
probably gathered a lot of information about
their preferences
• When you're ready to close, look at your notes
about the prospect's needs and if possible, offer
exactly what they are asking.
 CUSTOMER
COMPLAINTS
AI32B
 SOME FACTS ABOUT CUSTOMER SATISFACTION

• A customer satisfied with our services will only talk about us when asked
directly.
 SOME FACTS ABOUT CUSTOMER SATISFACTION

• A dissatisfied customer will tell on average 8-16 people (about 10% will tell
more than 20 people).
 SOME FACTS ABOUT CUSTOMER SATISFACTION

• Only 4% of dissatisfied customers complain.

SOME FACTS ABOUT CUSTOMER SATISFACTION

• 91 % of the dissatisfied clients

will never come back to us.
SOME FACTS ABOUT CUSTOMER SATISFACTION
SOME FACTS ABOUT CUSTOMER SATISFACTION
 SOME FACTS ABOUT CUSTOMER SATISFACTION

• If an effort is made to remedy customer complaints, approximately 82-95%

will be recoverable. If we manage to transform customer dissatisfaction into
customer satisfaction, they will become a loyal customers.
 SOME FACTS ABOUT CUSTOMER SATISFACTION

• It costs 5 times more to attract a customer than to keep an old one.

Customer satisfaction means business survival, future and optimism.
 CUSTOMER COMPLAINTS
• Unhappy customers are inevitable.
• Complaints are chances to put things right, to improve and renew.
• The worst kind of customer dissatisfaction is the hidden kind: Complaints
that are never raised by unhappy customers who leave without telling you
why.
HOW TO DEAL WITH AN UNHAPPY CLIENT

• The key to stopping the rapid spread of dissatisfaction is speed of response.

• To ensure the best chance of recovering the relationship following a service failure,
the critical priorities are:
1. Catch the problem early
2. Act quickly
3. Understand what’s gone wrong
4. Make sure you take action
 1. CATCH THE PROBLEM EARLY
• Giving your customers the opportunity to provide feedback is vital to finding out
whether they’re happy. And if they’re not, feedback should tell you why not.
• It’s good to encourage people to bring you their complaints.
• If you don’t know what the problems are, you can’t solve them.
• Bringing them to light like this reduces the risk of unhappy customers broadcasting
their dissatisfaction.
• Regular, timely customer feedback surveys ensure that you find out about problems
before it’s too late to do anything about them.
 2. ACT QUICKLY
• It’s vital that you react as quickly as possible. Any delay will only increase the
customer’s annoyance, and trigger them to start spreading the word.
• Contact the customer quickly, and apologize.
• Even if you don’t have a solution for them just yet, it’s important they know that
you’re aware of the problem. And that you’re going to do everything possible to put
things right.
• If you’re notified as soon as negative feedback is received, you’ll avoid unnecessary
delays. That’s crucial for preventing customers feeling like their feedback has been
ignored.
 3. UNDERSTAND WHAT’S GONE WRONG

• Find out exactly what’s happened, and why the customer is unhappy.
• Try to understand the issue from the customer’s perspective. This will give you the
best chance of solving the problem and saving the customer relationship.
• If the feedback or complaint doesn’t give you enough detail, then actively seek more
information.
• If possible, pick up the phone and talk to the customer.
• Depending on the problem, you might even be able to solve the issue for them right
away.
 4. MAKE SURE YOU TAKE ACTION
• Once you understand what’s gone wrong, take action to put things right.
• If the customer feels that you’re just going through the motions of
acknowledging their complaint then this will only anger them further.
• If you can make things right for the customer, then do quickly.
• It’s also important to take steps to ensure that the problem won’t occur again
in the future, both for this customer and others.
 RESPONDING TO AN UNHAPPY CUSTOMER

• An unhappy customer has the potential to be very damaging to your

business.
• But if you have an efficient system in place for receiving feedback and acting
on it quickly, you can turn the situation around.
• You might even convert that unhappy customer into an advocate.
TURN UNHAPPY CUSTOMERS INTO PROMOTERS

• Just because they are unhappy at the time, doesn’t mean they will stay that
way.
• You need to give them an outlet to voice their opinion AND you need to
listen to them.
• Once you resolve their issue you will have a loyal customer for life.
THE POWERFUL POTENTIAL OF AN UNHAPPY CUSTOMER

• Every other study says much the same – unhappy customers tell 9, 10, 11, 15
or 20 other people. Why?
• Human nature makes bad news travel farthest and fastest.
• People like to warn others, particularly those they care about.
• Our collective instinct is to acknowledge that the only good outcome of a negative
experience is to prevent others from having to go through the same pain.
 SOCIAL MEDIA GIVES UNHAPPY CUSTOMERS A
MEGAPHONE

• Social media has evolved this

phenomenon out of all proportion.
• Posting content pertaining to a bad
experience can instantly reach hundreds, if
not thousands of people.
• And if it goes viral, your business can have
an out-of-control damage situation on its
hands.
 BOTTOM LINES
• You need to embrace the clients’
hate instead of trying to avoid it.
• Give your customers a voice and
they can tell you how they feel.
• Once you have overcome their issue
they are more motivated than ever
to spread the word about your
business
CUSTOMER LOYALTY AI32B
CUSTOMER LOYALTY
Customer loyalty is a measure of a customer’s
likeliness to do repeated business with a
company or brand.
It is the result of:
1. Customer satisfaction
2. Positive customer experiences
3. The value of the services a customer receives
from a business
A LOYAL CLIENT

When a customer is loyal to a specific

brand, they are not easily influenced by
availability or pricing.
They are willing to pay more as long as
they get the same quality product or
service they are familiar with and love.
A LOYAL CUSTOMER
Other characteristics of a loyal customer include the following:
1. They are not actively searching for different suppliers
2. They are more willing to refer a brand to their family and friends
3. They are not open to pitches from competing companies
4. They are open to other goods or services provided by a particular business
5. They are more understanding when issues occur and trust a business to fix them
6. They offer feedback on how a brand can improve its products or services
7. As long as there is a need, they will keep purchasing from a business
WHY CUSTOMER LOYALTY IS IMPORTANT
Repeat customers spend more than first-time customers
Loyal customers produce higher conversion rates
It boosts profits
Retaining an existing customer is cheaper than acquiring a new one
Customer loyalty helps in effective planning
Loyal customers shop regularly
Repeat customers spend more during the holidays
CUSTOMER RETENTION FACTS
Statistics show that adults say they are loyal to
companies
Despite this data, most businesses focus on acquiring new
customers.
Few companies implement strategies aimed at boosting
retention

One of the things brands can focus on to build customer

loyalty is meeting and even exceeding the expectations
of their customers
For most businesses customer experience is critical for
driving customer loyalty and improving retention
HOW TO BUILD CUSTOMER LOYALTY

Reward loyal customers with a loyalty program

Make customer care a priority for the brand
Boost customer experience by introducing VIP tiers
Segment your clients
Send event-based emails
Optimize the businesses’ referral program
Encourage customers to give feedback and act on it
 LOYALTY PROGRAMS
They are reward systems for the most loyal customers design
to keep them coming back
The simplest loyalty programs use a point system:
 Customers earn loyalty points every time they buy from the brand. Then,
these points, when accumulated, earn them a reward, e.g., discounts,
special client treatment, freebies, etc.

Another type of loyalty program is a card-based system:

 Customers get rewarded for loading up and spending money through the
card
 With a loyalty program that rewards customers with monetary or non-
monetary gifts, people will feel compelled to keep coming back
 CUSTOMER CARE AS A PRIORITY FOR THE BRAND
A vital part of any business is customer service.
Aim to provide more focused solutions for specific customer
needs.
Steps:
1. First, learn all you can about the brand’s different
customer segments, including their buying habits, favorites,
feedback about products, or the brand as a whole.
2. Use this information to improve the service.
3. Make sure employees dealing with customers directly have
the information that they need to serve customers
effectively.
INTRODUCE VIP TIERS
A VIP program is a fantastic way to incentivize spending and activity on your
business.
By adding VIP tiers for the most loyal customers, a company can boost loyalty among
existing customers and entice new and less engaged customers to interact more with
the brand.
Start with smaller rewards for all customers who are in the program, then encourage
repeat purchases by increasing the rewards for each step up the loyalty ladder.
SEGMENT YOUR CLIENTS
Any customer loyalty program should have a
personalized approach.
It allows every client to feel special and cared for.
To be at the right time with the right message, make use
of segmentation. It will enable you to divide their mailing
list into segments according to age, gender, geographic
location, occupation, preferences, interests, engagement,
and so on.
Then, you may craft different email campaigns with
relevant offers to each group.
This way, every subscriber receives what they want.
EVENT-BASED EMAILS
This is the best way to personalize communication with
your customers.
Instead of sending the same email to the entire
mailing list, choose event-based marketing.
This means that every time a user performs a specific
action interacting with your brand, you respond to
their efforts with the relevant email automatically.
 A new user subscribes
 An abandoned shopping cart
 An order placement…
BUSINESSES’ REFERRAL PROGRAM
Consumers trust recommendations from a friend or family member over other forms of markets
when buying a product or service.
Creating a program where customers can get rewarded for recommending the brand to other
people is important.
Boost the referral program by offering rewards for both the senders and receivers,
encouraging customers to spread a word about the brand on different channels, and creating
motivating and shareable referral messages.
ENCOURAGE FEEDBACK. ACT ON IT.
Make it easy for customers to reach the brand
and encourage them to provide feedback.
Ask them why they prefer to buy from the brand as
opposed to competitors and areas they think the
business could improve.
Also, set up a dedicated line of contact for customers
who have an issue to get assistance with.
Always thank customers after they give feedback and
use it to identify problem areas in the business.
SALES PROMOTION
AI32B
◦ A sales promotion is a marketing strategy in which a business uses a temporary campaign or
offer to increase interest or demand in its product or service.
◦ “Sales Promotion is the diverse collection of incentive tools, mostly short-term, designed to
stimulate quicker and/or greater purchase of particular product/services by consumers or
the trade.” - Philip Kotler
◦ Sales promotion is defined as a sequence of sales activities that gain the attention of
potential customers and give them incentive to buy or stimulate demand for a product.

◦
STEPS FOR A SALES PROMOTION
1. Define objectives
2. Select the target audience for the promotion
3. Define the supporting elements: gifts...
4. Establish a budget
5. Define the communication slogan
6. Select the means by which the promotion is to be communicated
7. Distribute tasks
8. Design systems to measure results
SOME MATHS
Campaign sales difference in euros = Sales with promotion - Sales without promotion

Sales with promotion - Sales without promotion

Campaign sales difference in percentage =
Sales without promotion

Campaign final benefit in euros = Campaign benefit in euros – Campaign costs

SOME SALE PROMOTION STRATEGIES
1. Google My Business offer posts 11. Joint promotions
2. Free samples 12. Social media contests or giveaways
3. Buy one, get one free deals 13. Shopping sprees
4. Cashback promotions 14. Branded gifts or bundles
5. Lifestyle discounts 15. Referral discounts
6. Flash sales and discounts
7. Vouchers and coupons
8. Charitable cause promotions ◦ https://www.wordstream.com/blog/ws/20
20/10/13/sales-promotion-examples
9. Free shipping and returns
10. Loyalty program promotions
 Type of promotion Students

1. Google My Business offer posts

2. Free samples
3. Buy one, get one free deals
4. Cashback promotions
5. Lifestyle discounts
6. Flash sales and discounts
7. Vouchers and coupons

8. Charitable cause promotions

9. Free shipping and returns
10. Loyalty program promotions
11. Joint promotions
12. Social media contests or giveaways
13. Shopping sprees
14. Branded gifts or bundles
15. Referral discounts
ADVERTISING
UNIT 7 AI32B
 INTRODUCTION
Advertising is a powerful communication force and vital
marketing tool helping to sell products and services
through a channel of information and persuasion.
It is a highly visible force in society.
It is essential to the success of any type of business and
industry.
It is one of the parts of the marketing and
communication process.
Advertising convinces people to buy products and
services.
All advertising contains both information and
persuasion.
 ADVERTISING
Advertising is a form of communication used to persuade an audience to take some action, usually with respect
to a commercial offering, such as an item for sale or a service.

The word advertising came from the Latin word’ advertere’ means “to turn the mind toward”.
Today we can say advertising is a communication, marketing, public-relation, information and persuasion process.
Advertising reaches us through a channel of communication referred to as a medium.
It is usually aimed at a particular segment of the population the target audience.
It is also done to build a brand image and communicate changes in old products or introduce new
products/services to the customers. Advertising has become an essential element of the corporate world and
hence companies allot a considerable amount of resources towards their advertising budget.
ADVERTISING OBJECTIVES
What do companies advertise for?
Increasing the sales of the product/service
Creating and maintaining a brand identity or brand image.
Communicating a change in the existing product line.
Introduction of a new product or service.
STEPS TO CREATE AN ADVERTISING CAMPAIGN
Step 1: Determine your objective
Step 2: Determine your budget
Step 3: Identify your target audience
Step 4: Create your message
Step 5: Develop your media strategy
Step 6: Implement your advertising campaign
Step 7: Measure & analyze your results
ADVERTISING MEDIA

There exist various media which

can be effectively used for
advertising.
They are classified into two main
categories:
 Traditional media
 Digital media
TRADITIONAL MEDIA
Traditional marketing encompasses the marketing methods that can be used without the
internet.
These are the methods that have been around for decades and are typically used less often now.
Still, they have some strengths.
Some traditional media:
◦ Directly mailed postcards, coupons, and informational packets
◦ Television or radio commercials
◦ Newspaper or magazine ads
◦ Billboards and fliers
◦ Telephone calls and text notifications
TELEVISION COMMERCIALS

One method of traditional marketing

is broadcasting advertisements using
TV commercials.
There are millions of ads that benefit
due to this form of marketing.
RADIO COMMERCIALS

Radios played a vital role in the late 20th

century.
People who could not afford television
opted for radios and CD cassettes those
days.
There are many different varieties of
advertisements that could be
broadcasted with the assistance of
radios.
FLYERS

Many companies and businesses

are still printing flyers to promote
their services.
Flyers are also called handouts.
BILLBOARDS

Billboards contain pictures of the

advertisement.
They are usually found on the
highways.
Mostly, billboards are placed by top
companies and businesses to promote
their services.
MAGAZINE AND NEWSPAPER ADS

Newspaper magazines acted as one of

the finest sources of obtaining
information regarding anything.
There are tons and tons of ads posted
every day.
TELEPHONE AND SMS MARKETING

These mostly include phone calls

and text messages of
advertisements for various
businesses and their services.
REFERRAL

Referral is when the

organization asks its employers
and customers to recommend
their products and services to
their friends and family or
neighbors.
DIRECT MAIL

Many businesses mail their ads in

postcards or notices to the people in the
company's target area or city.
DIGITAL MEDIA
Digital media evolve quickly because of trends and new technology.
These media include those that require the use of the internet or smartphones.
They haven’t been around as long as traditional methods, but they certainly have a great effect.
Some digital media:
◦ Website content
◦ Email campaigns
◦ Social media posts
◦ Clickable ads
◦ Affiliate marketing
◦ Search engine optimization (SEO)
WEBSITE CONTENT

A website may contain

your services’
advertisements
EMAIL CAMPAIGNS

It is one type of digital market where

businesses send electronic mail to
the target audience.
SOCIAL MEDIA POSTS

Social media marketing is getting widely

popular among young people.
Many businesses and startups advertise
their work in the form of posts, videos,
and stories on all social media
platforms.
 CLICKABLE ADS

You may use PPC (Pay-per-Click) advertising:

These are paid advertisements.
They only stay on the web for a shorter period.
Once you stop paying, it will be gone.
 AFFILIATE ADVERTISING

Includes advertising a product or a

service with the help of a well-known
influencer or a celebrity. The major
reason companies do it is to improve
their brand name.
SEARCH ENGINE OPTIMIZATION (SEO)

SEO is the most common type of digital

marketing used in many organizations.
Its main objective is to show the
business on the top while searching it on
the web.
However, it also needs customers'
support to get high ranks.
MERCHANDISING
at the point of sale
UNIT 7
AI32B
What’s visual merchandising?
Merchandising is the practice of
organizing and displaying products in a
retail space.
It is used to highlight products and
their features, gain customers'
attention, make customers feel
comfortable, and promote sales.
Visual merchandising began in physical
retail stores, but companies are now
using the same techniques for digital
storefronts.
Merchandising
Merchandising is the arrangement of products
in a physical or online store to maximize sales.
Direct sales require strong verbal presentation
skills to persuade customers to make a
purchase, as well as customer service skills.
Merchandising typically requires more creative
skills, such as the ability to come up with ideas
for interesting displays and to make
merchandise appear as attractive as possible.

Good merchandising frees up time, makes the

selling process simpler, enhances the buying
experience for consumers, and drives sales
growth.
The Golden Rule of Merchandising
The golden rule of merchandising:

Replace passive presentation with active product presentation

It is not enough to stock products on a shelf.

The product should not just wait for the buyer, but go out and meet her or him.
 Types of purchases
Planned: The store is a destination
point; you are going there specifically to
purchase something that will satisfy a Impulse
need.
Unplanned: No intentions prior to
entering the store but purely
situational, you see an item and
remember that you need it.
Impulse: Similar to an unplanned
purchase because you had no intentions
of buying the item. The difference
between the two however is this
purchase is the result of being exposed
to a stimulus that made you respond,
and you decide on the spot to buy.
Impulse purchases
The sudden and immediate purchase of a product without any pre-shopping intention.
It occurs after shoppers experience an urge to buy, and is often spontaneous without any
hesitation.
Merchandising particularly affects impulse buys.
Many of the merchandising actions in a store encourage impulse buying.
Impulse purchases are not consciously planned.
Impulse buying happens in the spur of the moment, it’s hard to control, and it’s affected by
emotional states.
“He saw it, he liked it, he bought it.”
Merchandising may also have an effect on planned purchases.
Britain consumer’s habits (2017)
Merchandising tools
Where merchandise is located and how retailers arrange items in a store can affect shoppers'
buying decisions.
The best visual merchandising methods involve displaying products so that they're easy to see
and reach.
The proper placement of merchandise may even prompt shoppers to make multiple purchases
throughout a store.
The main merchandising tools are:
◦ Spaces
◦ Furniture, shop fittings
◦ Prices
Space
The key elements of merchandising
in a business are the window
display and the design of the spaces
of the retail store.
Studies indicate that when a
customer enters a store, she or he
naturally tends to move towards the
center of the store , to the right and
turn counter-clockwise.
This makes it possible to divide
retail stores into hot and cold areas.
Hot/Cold areas
Hot areas, as a rule, are those zones that get the greatest client traffic and are often located at
the entrance or exit.
Therefore, the products we are interested in selling will be displayed there.
The cold area is out of the natural circulation of customers and therefore frequently purchased
products or promoted products will be placed there, in order to direct customers to this less
visited area.
Within these zones you can find hot spots and cold spots.
Hot spots
Hot spots are the most accessible and
visible points of the store.
This is where customers tend to
circulate and this spots get easily
crowded.
Therefore, the hot spots’ image must
be impeccable.
Here, you should place: new products,
seasonal products, or those whose
sale we want to promote for some
reason.
Cold spots
They are the most inaccessible and least
visible parts of the premises.
They are usually the polygonal vertices of the
surface of the premises, which are the most
hidden angles or corners.
These points can be enhanced by displaying
eye-catching and frequently sold products or
products that are on promotion or heavily
advertised by the manufacturer.
In this way, the customer can reach an area
that would not otherwise be accessible.
 HOT SPOTS COLD SPOTS
Entrance on the right Entrance on the left

Front of columns Back of columns

Waiting areas Corners

More illuminated areas Areas with poor lighting

Cash register area Dead-end corridors

Points near mirrors Points with a difficult access

Places where there are samples

Next to TV monitors
Shop fittings
These are the elements that serve as the physical support for the products.
They bring products into contact with customers.
The most commonly used are counters, showcases, shelves and displays.
Counter
The most visited counters, where impulse sales can
be triggered, are the ones located in the reception
and checkout areas.
All customers in the shop stop at these counters both
at the entrance and exit.
This is a perfect place for products:
Small in size
Relatively low priced
High frequency of consumption
Big commercial margin
Showcases/display cases
They can be placed in different parts of the
business and even change their location
periodically.
They should be placed in clearly visible places,
without obstructing the passage and they
should be at the right height and well
illuminated.
 Shelves

They can be used to display a

large number of products, even
large ones, and are easy to
integrate into the décor of any
shop.
Displays

These are stands made of different

materials and sizes that are used to
display products in an attractive way.
Manufacturers often design specific
displays for their products which
they supply to businesses for
merchandising purposes.
Merchandising and product
height location
There are also merchandising rules regarding
the height at which items should be placed on
shelves and vertical displays.
In areas where customers are standing, there
are usually four shelf levels for adults:
Stretch level
Eye level
Hand touch level
Stoop level
Stretch level
This is one of the least valuable display zones.
Products placed above this height get little
attention from shoppers.
Only lightweight products should be displayed
in this zone.
Signs and graphics work well above this height
because they can draw shoppers from a
distance to look at product displayed below.
Access to the products is difficult so do not
place the products you want to highlight here.
Eye level
Products placed at eye level sell best,
so this is where to place your highest
margin, most popular styles.
Many studies have found that eye level
merchandise receives 35% more
attention than products on lower
shelves.
Hand level
This level is approximately at a shopper's
waist height, below eye level but within
easy reach.
This zone is second in terms of shopper
attention, still a good place for high margin
merchandise.
Stoop level
Most shoppers don't like to bend down, so this
zone is relegated to low-margin products.
Keep all your merchandise above the 60 cm
level.
Many business use the space below two feet for
cabinets to store back fill inventory.
Some more rules
1. The display should be an active element: you should change the product arrangement
periodically providing dynamism
◦ The clients’ feeling is that the products are being sold.
◦ This also allows all products to have a preferential place at a certain time.

2. Attention should also be paid to the quantity of a given product that is placed on the display:
the amount of units of a product should be enough to be seen, but not so much that it gives
the impression that the store contains an excessive stock of that product.
◦ The general rule of thumb is that three packs should be presented frontally on the shelf.

3. A shelf can never be empty or with such a small amount of product that it gives the
impression of being empty or out of stock. In the case of having few units of a particular
product, it is preferable to replace it with another product for merchandising to be
effective, and try to sell that product through other techniques.
Some more rules
4. There should be a balance between the quantities of all products on display so that there are
not too high quantities of some products and too low quantities of others.
5. It is recommended that for each product there should be some empty space on the shelf. In
general, customers avoid taking products from untouched shelves as they give the
impression that they are not sold. One or two gaps are sufficient and most effective if they
are in the corners.
6. Displays need to be checked on a daily basis for timely replenishment and, if necessary,
repositioning of products.
Some other display possibilities
Although shelves and displays are the most commonly used way to present products, there are
other resources available for merchandising that can be used, especially for product promotions:
Bulk basket
Geometric pile
Bulk basket

This consists of placing a messy pile of a certain product

or several of them within reach of customers so that they
can handle them.
Psychologically, it influences the customer's purchasing
decision because it gives the impression of low price and
breaks with the formal display structure of the shop.
The most suitable place for these forms of display is the
checkout counter.
Geometric pile
The product is placed in a
specific geometrical
arrangement: pyramids, cubes...
to attract the attention of
customers. As it is a relatively
large mass, it provokes
compulsive purchases.
They should be placed at
strategic points, without
hindering the passage and
without reaching an exaggerated
height.
 Pricing
From a merchandising point of view, the
important thing about price is the way it is
physically marked on the product and the
influence this will have on the customer's
impulse to buy.
Pricing merchandising rules
There are basic merchandising rules regarding pricing to encourage sales:
1. The price must be clear on the product: any doubts the customer has about the price may
discourage him/her from buying it.
2. The price marking should be large: large numbers are associated with cheap products.
3. It is better if it looks improvised: this also motivates to buy.
4. It should be a psychological price: numbers ending in 9 or 5 are more attractive than those
ending in 0.
5. The presence of a crossed-out price on the same sign or label confirms to the customer that
the product has been discounted.
Clear pricing
Large pricing
Ending in 9 0r 5
Crossed price
Shop Window Design
UNIT 7 AI32B
The shop window is the place where
customers often make their first contact with
the company.
It is the business card and the presentation
of the professionals who work in it.
What the customer sees in the shop window
is what she/he will expect to find inside and
will form part of her/his expectations.
 “The shop window can be a great salesperson”

A silent salesperson who is constantly on the move.

That is why it is important to take a great care of its expression and provide it with the means to
work effectively.
Window dressing

Window dressing is considered a

specialization within the
merchandising profession.
There are professionals dedicated
exclusively to this activity, called
window dressers.
Window dressing
Ideally, the person in charge of preparing the window display should be a specialist, a window
dresser.
These professionals apply:
◦ Artistic knowledge (art, drawing, signage, decoration, painting, etc.)
◦ Technical knowledge (materials, electricity, carpentry, etc.)
◦ And Commercial knowledge (sales techniques, knowledge of customers, competitors, advertising, etc.)

to the design of the shop window.

But without being a window dresser, it is possible to create effective shop windows by taking
into account certain principles and applying decorative skills that are usually developed in image
consulting students
Shop window design
Therefore, before designing a shop window, a few considerations must be taken into account:
The environment
The premises
The environment
The company's image must be
coherent with its surroundings:
1. The neighborhood
2. The the street
3. The the nearby businesses.
The characteristics of the premises

1. Width of the pavement

2. In which direction people
walk most frequently
3. At what time of day the sun
shines
4. If it is a corner
The building

The shop window must be coherent

with the building in which the
business is located.
The overall image

The window display must

convey the same commercial
image that has been
projected for the
establishment, as it must all
form part of a single
communication strategy.
What to take into account:
The shop window must also comply with
certain characteristics:
1. Be commercial: the ultimate aim of a
window display is to provoke sales.
2. Be coherent with the business's
commercial policy.
3. Be original, creative and have its own
style.
4. Be organized, offering a unified image.
5. Be timely.
Shop window functions
A shop window has two fundamental functions:
1. An aesthetic function: to show the products or services attracting the customer's attention,
transmitting the company's philosophy, and inspiring and suggesting pleasant sensations in
the customer.
2. A commercial function: to increase sales, to show the articles in their own right, and to show
them as they are so as not to disappoint customers.
Attention points
Not all areas of the shop window have the same attention power for the customer who is
looking in.
If the customer is standing in front of the shop window, the areas that attract the most attention
are the central area and the lower area.
Therefore, the order of attractiveness of the different areas of a shop window for the still
customer is as follows:
 High zone

Central zone

Lower zone

Walking direction
Shop window’s structure
Shop windows cover a space that may be enclosed in whole or in part.
The rear boundary may or may not exist.
They are therefore distinguished:
1. Shop windows with a back: closed shop window
2. Shop windows without a backdrop: open shop window
3. Mixed shop windows
Closed shop window

The window is bound, not

revealing the shop behind
it, and all the elements of
the composition can be
used regardless of the
interior.
Open shop window
A window display without a backdrop allows the
interior of the shop to be seen.
This can make customers inside the shop feel
uncomfortable, so try to have them stand with
their backs or sides to the shop window and not
facing it.
Similarly, passers-by may be influenced by the
number of customers seen in the shop.
The presence of customers is an attraction for
other customers. An empty shop is not attractive.
Mixed showcase

It is considered a mixed showcase if

the backdrops are movable or if
one part is open and one part is
closed.
SETTING UP THE SHOP WINDOW
The first step is to find the idea that you want to transmit:
 This idea should arise from the basic characteristics of the products you want to display, their
usefulness, their differential aspects, their seasonality... For example, you can choose to
transmit an idea of freshness, relaxation, innovation...
 This idea must be materialised in the shop window by fulfilling two aspects:
 An imaginative one: The shop window must be creative in order to captivate customers.
 Another realistic: It must be clear and easy to understand.
Lighting
Lighting is one of the most important aspects of a shop window.
Through light we can intensify an image, bring it to life and increase its attractiveness.
A shop window with a dim light or with lighting that does not shine on the products can hardly
be attractive.
A shop window must have good lighting to create the right atmosphere for the products on
display. This does not mean intense or expensive lighting, but lighting that helps to effectively
convey the basic idea of the shop window and enhances the items on display.
It is best to use a more or less diffused general light and several points of light directed towards
the elements that we want to highlight.
Lighting aspects to be considered
The factors to consider when choosing the light are
1. Its efficacy
2. The possibility of concentrating the light on the points of interest
3. The colour of the light
4. The cost
5. The duration and consumption of the lamps.
Other aspects to take into account
1. How many times will the furniture in the window change over the course of the year?
2. How much space is there in the display?
3. What are the measures of the shop windows?
4. How many windows does the store have?
5. Is the store located on a street in the historic city centre or inside a shopping centre?
 In the last case, does the lighting have to be subject to a specific regulation?
Some more considerations
1. The colors and materials of the products that will be exhibited. The lighting of the windows
could in fact change depending on whether you are in front of dark or brightly colored
objects or, again, made of materials that absorb light or reflect it, annoying anyone who
approaches the window to observe them.
2. The type of goods to be illuminated: in the case of precious accessories such as jewels,
lights will be necessary to highlight the details. In the case of a food & wine shop, however,
the lighting must help to emphasize the quality and attract potential customers.
3. The size of the space to be illuminated
4. The required level of lighting
Some possibilities
1. If the space in the false ceiling allows it, you can use recessed spotlights to ensure a cleaner
aesthetic.
2. If there is insufficient space, it is better to prefer, depending on the depth of the window,
the installation of one or more parallel tracks on the front side.
1. This second option is more visible than spotlights for shop windows
2. But it is more versatile, since the tracks can be easily reconfigured every time the furniture in the
window is changed.
Track lights
How many products on display?
The space in the shop window is limited, so the products to be displayed must be selected
appropriately, without overloading the shop window.
The window display must be representative of the products and services offered to customers.
This does not mean that they all have to be displayed at the same time.
A small number of products should be selected so that attention is focused on a specific idea
and not dispersed in multiple messages.

Shop windows should not be saturated with products: If you want to highlight everything,
nothing stands out.
The shop window is not a mini-shop

Haven't you sometimes come across shop windows that look more like a warehouse than a
sales tool?
The shop window should be dynamic
A shop window should be renewed from time to time, at most every 15 to 20 days.
A window display that does not change loses its function of attracting customers.
The products should change, so that during the course of a season the most important products
or services of the business are displayed at some point in the season.
Select brands on display
If your business works with many brands, it is not necessary to display all of them in the shop
window.
It is better to select those that are most attractive to your company’s potential customers.
Window display for services
When the window display is used to show services or treatments, it is advisable to do so
respecting the weight that each one has in the business.
If wedding planning represents 35% of the company’s business, the window display should be
given a similar percentage of occupancy.
Colour in the shop window
Colour gives the elements of the point of sale the psychological shock necessary to attract the
consumer's attention to what we want.
Colours provoke reactions, sensations and evocations that have a considerable influence on
people's moods.
When designing shop windows, it is necessary to know and apply some basic rules
Basic rules for colour use in shop windows
1. Do use colour: A colour image generates up to 80% more attention than a black and white
image.
2. Don’t use too many colours: The monochromatic range in the shop window produces a
sensation of distinction, elegance and sobriety. When more than three colours are used, it is
easier to fall into unsuccessful combinations.
3. Consider that not all colours can be seen from a distance: those that are best perceived from
a distance are yellow and blue.
4. Use contrasts: This can be achieved with two shades of the same colour placed in close
proximity or with different colours.
5. Take into account that artificial lighting can modify colours.