Advertising & Sales Promotion

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Advertising & Sales Promotion

  1. 1. Page 1 Q1 (a) Advertising is considered as the backbone of the business, define advertising, explain how the process functions? Advertising falls under the Promotion of 4P‟s in marketing. Advertising is a form of communication through mass media. Hence, advertising is mass communication. We begin to separate advertising from the many other forms of communication when we add the terms „commercial‟ or „paid‟. It is paid for by a sponsor who expects to induce some kind of action on the part of the reader or viewer or listener that will be beneficial to the advertiser. Hence the definition can be summed up as Advertising is mass, paid communication, the ultimate purpose of which is to impart information, develop attitude and induce action beneficial to the advertiser – which generally has the nth usage of enabling sale of a product or service. An ad in a daily newspaper, in a television channel, in a radio channel, in an internet site, road side banners etc. are all forms of communication. They convey a frame of mind. By whatever the means, somehow these formats make contact and thereby transmit „good‟ message from one human mind to another. They are mass communications, paid by a sponsor who wishes to achieve some end for example a paid political announcement ad is to announce the name of the candidate and his election symbol, with the end objective of election of a candidate, a recruitment ad is to announce that a certain company is looking for candidates for a certain position, with the end objective of hiring a personnel. How does the advertising process functions? The ultimate purpose of most advertising is to help bring about the sale of a product or service. The purpose of advertising is two simple obvious questions  When? (the pace of reaction):- when is advertising expected to bring about a sale? For example, A textile store may run an ad announcing a sensational price sale of an item, till stocks last. Close to couple of hours of the sale opening, the clerks are saying “sorry we are sold out” – here the objective met is immediacy of the sale. A reputed institution runs an ad for distance learning courses, with the key feature being, non-graduates with 10 years of work experience are considered at par with graduates with 6 years of work experience. A reader may store the ad copy and enroll in the course, as and when he decides to A furniture store offering after sales services for products sold from his store or just a service at an attractive cost for similar products sold by any other store. This furniture store places an ad communicating this unique feature. The reader, may store the ad in order to make use of the unique service whenever it is required The time objective of most advertising falls somewhere in between these extremes. The advertiser of automobile, insurance, farm equipment or machine tools does not expect people to rush out and buy his product. Except for in specific seasons, for ex a car company may come with a festival bonanza during key festivals. An insurance company will have high turn outs during the financial year end seasons. A farm
  2. 2. Page 2 equipment company may find more buyers post key harvesting seasons. Except for such seasonal events, advertising‟s primary role is to reach out the communication of the brand/product/service to the end user, to increase the propensity to buy, to move the prospect inch by inch towards closer of a purchase.  How much of the sales-making load is to be carried by advertising? While a ecommerce portal depends heavily on advertising communicating of 100% delivery and Cash on Delivery services, because advertising is the only commercial communication force available. At the other end an industrial company will depend upon personal key selling as the key sale making force. Advertising assists by carrying part of the communicating work load. A recent analysis by adage.com*, a popular website catering to the advertising industry has come up with a global advertising to sale ratio covering over 300 industries. While the individual industry wise AtoS ratio differs, the global average is apprx. 3.12% *Source: http://adage.com/article/datacenter-advertising-spending/advertising-sales- ratios-industry/106575/ As far as Advertising to Sale ratio is concerned, in advertising, there is a school of thought that, “advertising doesn‟t sell” except for exceptions like thematic, scheme based offer campaigns. Advertising helps in reaching out the communication about the brand/product/service to the consumer, in such a way that it registers in the consumer mind, induces an action beneficial to the advertiser to experience/buy the service. Q1 (b) „Appeal‟ plays an important role in the field of advertisement, be it in any type of media. Bring out importance and effects of appeal in advertising; support your answer with examples. Advertising appeal gives a reason to buy a product. An advertising campaign may have one or more advertising appeal. One appeal can be used and it can have sub themes in an advertising campaign. Appeal needs to be unique and needs to give positive impression about the product to the target audience. Every appeal that is used by the companies in the advertising is as per their competitors. Another important aspect of appeal is that it needs to be believable by the audience. Audience gets attentive when the advertisement there is attractive, they try to comprehend it and then finally their purchase behavior is inclined towards the brand. When audience behavior is molded by the advertiser towards the brand then only their purpose of advertisement is achieved. In order to do so advertisers understand the psychological aspects of the audience and then they try to develop the advertising appeal which can change their attitude towards the brand. In today‟s scenario, everyday consumers are bombarded with different advertising campaigns but they do not respond as they need something other than tangibles. There is need to explore something more than tangibles that can attract their attention. This can be done by using appropriate advertising appeal in the advertising campaign. If advertising appeal is interesting then it grabs the attention of the customers. For advertiser it is very important to understand how the diffusion of the message that takes place in the target audience and in order to have a positive diffusion advertiser creates a
  3. 3. Page 3 favorable environment. Words play an important role in the advertising message as it directly affects the mind of the target audience. Consumers may have different types of needs like physiological, physical or latent. An individual who has a specific need always look for the information from the marketing world. When there is cue which is as per the need of the consumer then an individual responds for the product. Drivers that are present in an individual vary at the different levels. Consumer may be inclined towards the product because of the aura of prestige which is associated with the advertising appeals. Advertising appeal is the main central message in the advertising message. It arouses the desires and addresses the human need that can be satisfied by the product which is advertised. Appeal is the underlying content in the advertising. Advertising appeal and execution are usually interdependent but advertising appeal can be used in all types of media but the execution style is different for different type of media. Advertising appeal is that something which attracts the consumers and develops interest in them. Some common consumer appeals are esteem, sex, fear, security and sensorypleasure. Advertiser uses the word appeal to emphasis on the creativity. Advertising create desire for the product and appeals persuade the consumer to invest in the product. Appeals not always have all the product attributes but they create an atmosphere where the target audience desires are evoked towards the product. For example, if there is a product for the housewives then the appeal would be related to family. There are mainly two types of appeals rational and emotional appeals. Rational appeal addresses the consumer‟s functional needs of the product, are informative in nature and it focuses on the suitability of the product. This appeal is used by consumer durables and in competitive advertising (high involvement product) Emotional appeals are known as transformational appeals as they transform the feelings of the consumers towards the product. It gives positive mood to the consumers as it is related to the psychological attribute of the consumer. Emotional appeals are more effective for the older market then the newer or the younger market. For example, For Insurance & savings products a family appeal is used. Since investments in insurance or savings schemes is looked at as a security for the family. Sex appeal is used in the advertisement of soaps. Audience is attracted as the desire is evoked and then it helps in selling the product. For the perfumes and cosmetics love appeal is used. These appeals are used more younger generation. Q2 (a) Enumerate the basic principles and factors for effective and good advertising? In order to achieve the objective of advertising, which is to compel preference in the consumers mind in favor of the brand and thereby induce trial and continual usage, following principles are to be adopted  Advertising should be motivated solely by fundamental consumer needs, attitudes and interests. It should concentrate exclusively on the consumer‟s point of view and interest. It should guard itself against being influenced by the point of view of the manufacturer or the dealer because this will dilute or deflect the impact on the consumer, who alone makes the choice to buy the brand in the market place
  4. 4. Page 4  A good advertising should be based on a single selling idea. It is important that this idea should be most powerful and persuasive appeal that is available to influence the customer‟s mind and choice  The idea selected should be unique and distinctive to the brand. This will give the brand a clear identity in the consumer‟s mind in preference to competitive brands  Advertising to be effective, must have a highly personal appeal for consumers, who need both rational and emotional justification to motivate their choice of the brand  The advertising should be phrased in the consumers language and be credible and comprehensible in the appeal that it makes  As the purpose of advertising is to sell your brand, it should clearly impress the brand name of the consumers mind and associate it with the single selling idea chosen as the platform of the theme  Finally, the advertising in its creative aspect should take full advantage of the medium in its presentation. The physical possibilities of the press, cinema, outdoor advertising, point of sale material etc. differ markedly and the creative treatment of advertising should exploit the advantages of each and guard against any inherent disadvantages The principles outlined above only provide a guide to advertising. In addition the following factors are essential for their application  Creative talents of a high order  The proper briefing of the creative team on the right appeals to address to consumers for the purpose of selling the brand  Experience is not sufficient by itself to guide the creative team  Disciplined procedures supported by research in all aspects affecting consumers choice and motivation The unique selling point (USP) selected to form the platform of the advertising theme should be distinctive to the brand and based on customer research. It should not be general to the product group. On an ideal case, the brand and the agency should work together in deciding the basic consumer benefit which should form the platform for the theme. Q2 (b) Before a businessman proceeds for advertising his product, market research is considered essential. Explain as to why research is required and how a judgement on it will be based. A regular program of consumer research, product testing and advertisement effectiveness measurement helps to provide a basis of facts for decision making process. Research is needed for the following purposes
  5. 5. Page 5  To guide the decisions determining the brand marketing strategy and brand advertising strategy  Pre-test proposed advertising  Post-test advertising The pre testing of advertising is essential to ensure that this expensive investment is having the desired effect in influencing consumer motivations to purchase your brand. In this connection, it is important to remember that simple recall of advertising content does not necessarily motivate consumer to purchase. The following questions about every advertisement will provide a useful cross-check of its effectiveness  Does it promise a basic consumer benefit? A product must fulfill a real or imaginary need of consumers and hence its advertising must be presented in terms of the consumers interest  Does it offer a convincing reason why? Good advertising must persuade consumer that the brand will fulfill the basic promise by offering a convincing reason „why‟ with supporting evidence  Is it unique? Good advertisement must convince the consumer that your brand and yours alone can satisfy his needs. This requires strong individuality in presentation  Does it clearly identify the brand? Good advertising must impress the brand name clearly on the consumers mind  Does it interest the consumer? Good advertising must present the brands benefit and proof in a manner that interests and attracts consumer personality  Is it credible & clear? Good advertising must be easily understood by the consumer and credible in the claims it makes Good advertising is the responsibility of both the company and the agency. This is a serious responsibility which should be entrusted to senior personnel who have the ability and experience to exercise judgement about the crucial aspect of the marketing strategy of their brands. Q3 (a) Sir William Crawford emphasized basically on Three-word concept for advertising, what are these, explain? Sir William Crawford propounded the most concise yet complete recipe for good advertising in a three word percept Concentration – Domination – Repetition The consideration of this entire context is limited to the media plan within the campaign plan, but there is no better way to outline the principles of media planning than to examine Sir William Crawford‟s three factors
  6. 6. Page 6 Concentration is the most important among the three elements. Excessive dispersal of resources is the greatest mistake in advertising. A product may have several good selling points but it is wise nevertheless to concentrate its advertising campaign on making a thorough conquest of the market with one that is chosen for its maximum effectiveness in the particular marketing and competitive circumstances of the time. The public does not readily understand two equally good points put to it simultaneously, though it can focus on or accept two points successively. It is the advertiser‟s job to make it easy for the public to understand the one point which makes his product especially good for a type of a customer or a type of purpose. There are various methods of concentrating an advertising budget and where concentration is necessary, the following possibilities may be reviewed  Numerical concentration is about choosing the most economic media of a certain type OR arriving at an efficient media mix by maximum utilization of available efficient medias  By choice of continuity of position within a type of media pre selecting an even more limited section of the whole audience which has particular interest in the product  Seasonal concentration relates to limiting advertising to a part of the selling season  Geographical concentration is about proceeding by intensive coverage of a selected area or a sequence areas  Economic class is about not attempting to cover all classes equally. Such a form of media concentration must be linked with parallel concentration of marketing and creative effort  Age relates to limiting the advertising objective to a special age group with all the consequent narrowing of the media field  Interest groups relates to choosing within the general scope of the product appeal, some more limited group of interests which can be reached with a more restricted list of media. The creative appeal would be limited in parallel In summary, therefore, the need for concentration in media planning lies in, the need to focus the media as far as possible on the section of the public prescribed by the marketing and advertising objective. And in the need to concentrate on the best media for the purpose until a pre-defined strength has been achieved in each and not proceed to widen the media list until it has Domination may be achieved by scores of different methods of media planning. The most obvious way is to use large spaces and even this cannot be afforded throughout the whole campaign, it will probably be possible for a short period, enough to make its mark on relevant public for a time. For example, using a medium that is new for the product or in an unusual shape or space; or using color pages where the competition has used B&W;
  7. 7. Page 7 In a competitive market, domination is particularly necessary, wherein advertisers have to compete not only with others making similar products but also with manufacturer in other fields who are bidding for the same money with different kind of interests. In media planning terms, it is referred to as Share of Voice (SoV), particularly FMCG brands adapt to a SoV style of planning, wherein one of the objective will be to be at par or improve beyond the categories and competition share of advertising space Repetition process requires neither bigness nor dominance but it entails spending advertising resources continuously over a period and allowance for this continuous outlay must be made in deciding what media the budget can afford to use In a competitive market like India, which has a huge buyer base for the brands, where international brands are focusing their activities, since the huge buying power helps them to gain in additional revenues/profits. Multiple brands offering the same product/service are targeting the same consumer, in order to convert them as their customers. Added to this, India as a market witnessing stupendous economic growth is also witnessing the growth of media over the past few years. Just for a comparison, a decade back, there were 300+ satellite channels in India, today it has crossed 680+ in numbers, a growth of almost 100% in a decades time. So much so that, today there are niche channels catering to specialties like travel, food etc. Added to that there has been an overwhelming growth of local cable channels in the country too. Parallels are the growth of other mediums like print, where today there are specialty magazines covering topics like wedding the whole year, similarly the last decade has also witnessed the high caliber growth of Radio as a medium, with close to 6 national networks having presence across the country. All these factors have added on to increase clutter levels in the advertising spectrum. The average advertiser first aims at creating brand awareness for the product, from then on it aims to make the consumer come back again for a repeat sale. With the above mentioned factors that have led to the bifurcation on the media, there are other interests that are crowding upon the customer with new ideas and projects. This scenario has led the advertiser to dominate the market and take control of the consumer‟s interest at least in order to get his own idea or product noticed and tried; hence he must keep the impression so created alive for ever afterwards. The most important point here is the basic factor that because the only kind of buying that can reward the average advertiser for his outlay involves repetition, therefore it becomes necessary to the selling process with advertising represents. While at the same time the process of repetition cannot go on indefinitely. After a certain stage, which must be judged from the tactical circumstances, it will be necessary to create new impact, this is because repetition by its very description the repeating of something and with each repeat it gets a little fainter. Q3 (b) For a good advertising campaign, there are some important methods which make the register ring “Eleven” Commandments, explain the methods of successful campaigns for any advertisement agency? The eleven commandments for a successful advertising campaign are 1) What you say is more important that how you say it
  8. 8. Page 8 What really decides consumer to buy or not buy is the content of your advertising, not its form. The most important job is to decide what you are going to say about your product & its benefit The selection of the right promise is so vitally important that you should never rely of guess work to decide it For example, “YehHainHamaraSurakshaChakrah” byline from Colgate worked well for the brand so much so that, it created a belief among the customers that “colgate will protect the dental health of the family” 2) Unless the campaign is built around a great idea or a big idea, it will flop Having a big idea and amplifying the big idea across the strategically selected media‟s will add more meaningful value for the brand among the consumer, rather than the conventional way of running a 30 sec on TV or a 100 cc ad in print For example, Pepsi, although the brand looks like to be very active brand on air (ie on TV) only, the brands big idea is sports, the big idea gets amplified across different available medias. They latch up with cricket, football on air, as an extension the idea is replicated in the form of interschool or inter- corporate cricket or football tournament which is again publicized effectively using various media like direct marketing, activation, radio, internet etc 3) Give the facts The consumer is not a moron; she is your wife. You insult her intelligence if you assume that a mere slogan and a few rapid adjectives will persuade her to buy anything. She wants all the information you can give. 4) You cannot bore people into buying Going by the humongous growth in the media spectrum on one hand and the growth of new brands on the other hand; the consumer is in for a cluttered media pie. If you want your voice to be heard above this clutter, your voice must be unique. 5) Be well-mannered but don‟t clown You should try to charm the consumer into buying your products. It is easier to sell people with friendly handshake than by hitting them over the head with a hammer. 6) Make your advertising contemporary Make your communication contemporary, in current scenario you are talking to a new age consumer, who is also well informed 7) Committees can criticize advertisements but cannot write them Advertising seems to sell most when it is written basis the study of the product, the research and the precedents
  9. 9. Page 9 8) If you are lucky enough to write a good advertisement, repeat it until it stops pulling While in most cases the sponsors tends to get sick of repeating good advertisements, fact remains that the Sherwin Cody School of English ran the same advertisement for forty two years, changing only the type face and the color of Mr Cody‟s beard 9) Never write an advertisement which you wouldn‟t want your own family to read Good products can be sold by honest advertising. If you don‟t think the product is good, you have no business in advertising it. 10) The image and the brand Every advertisement should be thought of as a contribution to the complex symbol, which is the brand image, which on a long view may solve the day-to- day problems themselves 11) Don‟t be a copycat Imitation may be the sincerest form of plagiarism, but it is also the mark of an inferior person. Being a copycat also can back fire the brand by negative TOMR value, if the idea has been brilliant enough and used in the right way by the predecessor Q4 (a) Media Planning is an important aspect of advertising, what are their problems and also mention the changing role of a media planner. Given the decision on the message content, form and the size of the advertisement, a media planner‟s job is to decide what channels or media should be chosen for carrying the message to the potential customers. For example, in case of a multi media campaign, following questions have to be answered; a detailed brief from the client will help to construct the strategy accordingly  What should be the media mix?  What should be the ideal SOE per media? Assuming that the decision is to go with Print, Television & Radio, then  What is the share of reach and frequency?  Which are the media will be used for reach and how & which ones for frequency and how? A deep dive into the individual media  In print, o Should it be Dailies ONLY or Magazines ONLY or a combo? o Should it be Regionals ONLY or English ONLY or a combo? o What is the consumption and schedule strategy between the selected print vehicles?  In Television, o Which genre to be used? o Within a genre, what is the weightage for reach platform and frequency platforms?
  10. 10. Page 10 o Along with Satellite channels, is local cable required? If yes for which markets? o What is the consumption and schedule strategy between the selected TV vehicles?  In Radio, o Which are the markets to be covered? o How effectively can radio be used at a local level to increase participation? o What is the consumption and schedule strategy between the selected radio vehicles?  Not stopping with the schedule strategy within the respective medium/vehicles, the media planner also has to apply science to the overall scheduling strategy across mediums. The problem is quiet complex, because the number of alternative media plans available to a media planner is very large. Secondly, there are certain issues in terms of the measurement techniques available today. Wherein, a people meter data of an approximate 8300 households is extrapolated to the TV owning household universe in India. Hence the measurement data that is available today is pretty much on the lines of a guide ONLY and not perfect to the nth extent. Adding to that, the consumer preference is very dynamic in nature. For example, in case of radio, out of 8 radio stations in Chennai, there might not be a clear leadership and that there have been scenarios where each of the channels have held leadership on alternate weeks. This is primarily due to the fact that on the respective weeks the channels would mostly have done some specials which would have attracted a higher listenership. Similar issues crop up in television also. In print medium the concern may arise mostly in terms of geographical coverage of the newspaper. For example, while Vijay Karnataka is the leading paper of Karnataka state, comparatively smaller newspaper called Udayavani leads the Manipal-Udipi area, similarly Samyukta Karnataka leads Hubli-Dharwad regions. While working on the media/vehicle mix strategy, the media planner has to have a clear eye for such misleading scenarios/concerns. The changing role of a media planner Talking about the current trend in India, the days of vanilla advertising campaign are not any more the order of the day. The dynamism of the consumers consumption habits have led to creating more meaningful and result yielding campaigns. Adding to all, in order to make sure that value for money advertised is derived, most brands today work on an ROI method, wherein the agency and the client sit together to understand how effective the monies have worked for the brand at regional market level, which will be done by mapping the advertising spends with the walk in and sales data supplied by the consumer. Today, a media planner has to think beyond conventional media planning. It is no more churning out numbers and arriving at a media plan for individual mediums, It is more about, creating a integrated & contemporary multi media campaign, which works in tandem to reach out the brand communication to the consumer in an effective and efficient manner. Today media planners are included in creative discussions, so that, from a media angle the media planner can come up with a center thought in line with the creative thought and not falling out from it, and accordingly construct an integrated campaign. In short, today the role of a media planner has been widened to the role of marketing communication planner
  11. 11. Page 11 Q4 (b) Define Market, bring out the factors to be considered while defining the market. Market is a geographic area where the group of people (the target audience) lives and is likely to buy the product. Indian Readership Survey (IRS) defines markets as key metros and rest of the markets. For example a Karnataka will be defined as Bangalore, Mangalore, Mysore, Rest of Karnataka. While on the other hand, Television Audience Measurement (TAM) defines a market as the key metro and the rest in terms of population size. For example a Tamil Nadu market will be defined as Chennai, Tamil Nadu 1Mn+ & Tamil Nadu .1-1Mn Factors to be considered while defining the markets The clients brief which will specify:- Distribution patterns – where the product is available Clients marketing objectives Competition activity Market potential Media related markets Sales pattern observed If the sales are good, then a defensive strategy will be ideal to protect. Also need to check whether the market has been fully exploited, which will help to minimize the risks and maximize the potential On the other hand, if the sales are low and require advertising focus, then an offensive strategy will be of help. An offensive strategy will be done basis understanding how competition is faring and not ours, can the situation be corrected. Entering a virgin markets may give the brand a first mover advantage, while at the same time, the brand needs to clearly analyze why the market has been virgin for such a long time. On the whole, the weightage on the media SOE on a market level will be assigned basis the client sales strategy. Q6 (a) “Charactor” in Advertising – short notes Charactor is a matter of objective characteristics varying from type and geography of coverage to the advertising facilities offered by the method, mechanics or materials of the presentation of the medium.The catalogue which follows ten different aspects of charactor of advertising media is part of the sub conscious equipment of every experienced person engaged in advertising. The knowledge acquired by observation or by the acceptance of recognized assessment made by experienced people. The catalogues probably note complete because the variations of the possible forms of charactor are legion. The ten aspects of charactor are I. Geography II. Class III. Age
  12. 12. Page 12 IV. Power to reach special groups V. Physical characteristics of the medium VI. Assistance to selling VII. Duration of interest VIII. Timing IX. Impact or repetition X. Indirect effects on influential groups Q6 (b) Communication Spectrum – short notes The concept of the marketing communication spectrum offers a starting approach to the solution of the problem. This concept is applied common sense. It breaks the subject up into logical and comprehensible steps. It beings with the obvious assumption that advertising is a communication force. Advertising does not physically impel the consumer towards the purchase of goods; its purpose is to create a state of mind conducive to purchase. Advertising therefore is one of several communication forces which acting singly or in combination move the consumer through successive levels of what we have terms the communication spectrum. These levels are Unawareness, Awareness, Comprehension, Conviction and Action The lowest level of communication spectrum is Unawareness. At this level are the people who have never heard of the product or the company. The messages about the product have not penetrated to the point where consumer recognizes or recalls the brand or company name. now it is conceivable that people buy products or vote for candidates who names are unknown to them. The chances are however that such a product makes few sales and such a candidate few votes. Q6 (c) “Creativity needs direction” – short notes Creativity with lack of direction, lack of strategy, lack of thinking the problem though first is created in limbo rather than as a specific answer to a specific question. The creative strategy should be an outcome of the marketing data and research that has been agreed upon by the client, with a direction, with an objective that the advertising campaign has to accomplish, the ground it has to cover. Q6 (d) Brand marketing strategy – short notes The first step is for the company to decide on the marketing strategy that it intends to follow in developing sales of the brand in all its aspects like product policy, packaging, distribution policy, pricing policy and promotion policy The brand marketing strategy should define The Market its size, the growth rate, its distribution by region, the scope for sale & competition activity The Target Consumer in the form of their age, socio economic class (includes education levels, income levels), the consumers psychograph (like product usage, ownership etc)
  13. 13. Page 13 Competition brands, their names, what they are offering at what price, why is the product being preferred, advertising expenditure and strategy Marketing objectives including the short and long term brand marketing strategy in terms of  The target share  The period of achievement  The target consumer  Distribution policy  Market research plans  Product development policy  Budget for all aspects of marketing activity in general & advertising in particular Q6 (e) The Heart of Creativity – short notes The heart of creativity is discipline. MrEernbach says, and the never riding purpose is to sell. Selling discipline is about how to convey memorably the advantage and essential message of the product. Aesthetic discipline is like it‟s never been said before. Management disciplinewhich is, knowing how to guide and sharpen the skills of talented creative people. Social discipline is about fulfilling our role in seeking another rebirth of western civilization.

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