Question

1-differentiate briefly between advertising and publicity.Take Mcb bank and use it as example

2-when de marketting occurs .Give two examples from government sector and 1 example from private sector.

Answer 1

1)Advertising means  to advertise a product or a service for commercial purposes.Publicizing a product,service or company to provide information is regarded as publicity.Publicity refers to public opinion about a product ie what is the view of the people about the product . Advertising is the company's view about its own product .Huge investment is required in advertising a product , but publicity does not require investment. Advertising focuses on attracting more customers but publicity does not take such things in consideration.In order to lure people to purchase the product,only good about the product is highlighted but publicity is not biased and points the reality. Advertising is brand promotion while publicity is not.Eg Mcb bank advertises to attract customers .

2)Demarketing is to reduce demand without separating loyal customers.It implies reducing demand by stopping consumption from the marketing sectors which are either not profitable or which might hurt buyers who are loyal.There are many reasons for demarketing like shortage of resources which might be preserved ,supply cannot meet demand,cost of selling is high,promotional cost is high, distribution channel is poor.

Eg Demarketing happened in the private sector when Tata Nano's supply was less compared to its demand and so Tata Nano started promoting other products and totally stopped promoting Tata Nano.

Eg of demarketing in public sector is Cigarette which is a vice product. In order to reduce the demand demarketing may be used . Strategies may be increasing the price and increasing the consumption of nicorette gum and nicorette lozenges .Another example of demarketing in publtc sector is water conservation . State of California has been restricting water usage by providing tax rebates for the installation of synthetic turf.