INTRODUCTION TO

ADVERTISING
A. Definition and importance of
advertising
Advertising
-is the action of calling public attention to an idea, good, or service
through paid announcements by an identified sponsor.

Advertising includes the following forms of medium: the messages carried in-
➢Newspapers and magazines
➢Radio and television broadcasts
➢Circular of all kinds, (whether distributed by mail, by person, thorough tradesmen,
or by inserts in packages)
➢Dealer help materials
➢Window display and counter – display materials and efforts
➢Store signs, motion pictures used for advertising
➢Novelties bearing advertising messages and Signature of the advertiser
➢Label stags and other literature accompanying the merchandise.
OBJECTIVES OF ADVERTISING
The 3 main objectives of advertising are:
1. To Inform
Advertisements are used to increase the brand awareness and
brand exposure in the target market. Informing the potential
customers about the brand and its products is the first step
towards attaining business goals.
2. To Persuade
Persuading customers to perform a particular task is a prominent
objective of advertising. The tasks may involve buying or trying
the products and services offered, to from a brand image,
develop a favourable attitude towards the brand etc.
3. To Remind
Another objective of advertising is to reinforce the brand message and
to reassure the existing and potential customers about the brand
vision. Advertising helps the brand to maintain top of mind awareness
and to avoid competitors stealing the customers. This also helps in the
word-of-mouth marketing.
Other objectives of advertising are subsets of these three objectives:
1. Brand Building
2. Increasing Sales
3. Creating Demand
4. Engagement
5. Expanding Customer Base
6. Changing Customers’ attitudes
TYPES OF ADVERTISING

Advertising

Print Broadcast Outdoor

Covert Public Service

1. Print Advertising
The print media has been used for advertising since long. The
newspapers and magazines are quite popular modes of
advertising for different companies all over the world.
2. Broadcast Advertising
This type of advertising is very popular all around the world. It
consists of television, radio, or Internet advertising.
3. Outdoor Advertising
Outdoor advertising makes use of different tools to gain
customer’s attention. The billboards, kiosks, and events and
tradeshows are an effective way to convey the message of the
company.
4. Covert Advertising
This is a unique way of advertising in which the product or the
message is subtly included in a movie or TV serial.
5. Public Service Advertising
As evident from the title itself, such advertising is for the public
causes. There are a host of important matters such as AIDS, political
integrity, energy conservation, illiteracy, poverty and so on all of which
need more awareness as far as general public is concerned.

Print Advertising: Newspaper, magazines, & brochure advertisements, etc.

Broadcast Advertising :Television and radio advertisements.
Outdoor Advertising: Hoardings, banners, flags, wraps, etc.
Covert Advertising: Advertisements displayed over the internet and digital devices.
Public Service Advertising: Product placements in entertainment media like TV show,
YouTube video, etc
IMPORTANCE OF ADVERTISING
(i) To the Customers
Convenience: Targeted informative advertisements make the
customer’s decision-making process easier as they get to know
what suits their requirements and budget.
Awareness: Advertising educates the customers about different
products available in the market and their features. This
knowledge helps the customers compare different products and
choose the best product for them.
Better Quality: Only brands advertise themselves and their
products. There are no advertisements of unbranded products.
This ensures better quality to the customers as no brand wants to
waste money on false advertising.
(ii) To the Business
Awareness: Advertising increases the brand and product
awareness among the people belonging to the target market.
Brand Image: Clever advertising helps the business to form the
desired brand image and brand personality in the minds of the
customers.
Product Differentiation: Advertising helps the business to
differentiate its product from those of competitors’ and
communicate its features and advantages to the target audience.
Increases Goodwill: Advertising reiterates brand vision and
increases the goodwill of the brand among its customers.
Value for Money: Advertising delivers the message to a wide
audience and tends to be value for money when compared to
other elements of promotion mix.
ADVANTAGES OF ADVERTISING
1. Reduces Per Unit Cost: The wide appeal of advertisements
increases the demand of the product which benefits the
organization as it capitalizes on the economies of scale.
2. Helps in Brand Building: Advertisements work effectively in
brand building. Brands who advertise are preferred over those
which don’t.
3. Helps in Launching New Product: Launching a new product
is easy when it is backed by an advertisement.
4. Boosts up Existing Customers’ Confidence in the Brand:
Advertisements boosts up existing customers’ confidence in
the brand as they get a feeling of pride when they see an
advertisement of the product or the brand they use.
5. Helps in Reducing Customer Turnover: A strategic
advertisement of new offers and better service helps reduce
customer turnover.
6. Attracts New Customers: An attractive advertisement helps
the brand in gaining new customers and expanding business.
7. Educates The Customers: Advertisements inform the
customers about different products existing in the market and
also educates them in what they should look for in an apt product
DISADVANTAGES OF ADVERTISING
1. Increases the Costs: Advertising is an expense to the business
and is added to the cost of the product. This cost is eventually
borne by the end consumer.
2. Confuses the Buyer: Too many advertisements with similar
claims often confuses the buyer in what to buy and should he buy
the product or not.
3. Is Sometimes Misleading: Some advertisements use smart
strategies to mislead the customers.
4. Only For Big Businesses: Advertising is a costly affair and only
big businesses can afford it. This makes small businesses out of
competition with big businesses who gets to enjoy a monopoly in
the market.
5. Encourages The Sale Of Inferior Products: Effective
advertisements even lead to the sale of inferior products which
aren’t good for the consumers.
FUNCTIONS OF ADVERTISING
• To identify products and differentiate them from others. (Branding)
• To communicate information.
• To induce consumers to try new products and to suggest reuse. (new
and repeated
consumers)
• To stimulate the distribution.
• To build brand awareness, preference and loyalty.
• To lower the cost of sales. (For the cost of reaching just one prospect
through
personal selling, companies can reach thousands of people through
media advertising.)
CLASSIFICATION AND TYPES OF ADVERTISING
1.Product – Related Advertising
A. Pioneering Advertising
B. Competitive Advertising
C. Retentive Advertising
2. Public Service Advertising
3. Functional Classification
A. Advertising Based on Demand Influence Level.
a. Primary Demand (Stimulation)
b. Selective Demand (Stimulation)
CLASSIFICATION AND TYPES OF ADVERTISING
3. Functional Classification
B. Institutional Advertising
C. Product Advertising
a. Informative Product Advertising
b. Persuasive Product Advertising
c. Reminder-Oriented Product Advertising
4. Advertising based on Product Life Cycle
A. Consumer Advertising
B. Industrial Advertising
CLASSIFICATION AND TYPES OF ADVERTISING
5. Trade Advertising
A. Retail Advertising
B. Wholesale Advertising
6. Advertising Based on Area of operation
A. National advertising
B. Local advertising
C. Regional advertising
7. Advertising according to Medium Utilized
B.Historical evolution of advertising
The evolution of advertising: the very beginning

The first print ad was published in 1472 when William Caxton

printed ads for a book and tacked them to church doors in
England.
Fast forward to 1704, the first newspaper ad was published in th U.S.
Then, in 1835, the first U.S. billboards displayed circus posters
measuring over 50 sq. ft.
The “Golden Age of Advertising”
• Advertising became a whole movement when it came to radio
and television in the early 1900s. Since it was speaking to
people directly through their radios and TVs, it felt more
personalized.
• Advertising first hit the radio in 1922. Radio host H.M. Blackwell
created his own “indirect direct” method -- a 10-minute talk
about the virtues of living a carefree life at the Hawthorne Court
Apartments in Jackson Heights, Queens. The cost for a 10-
minute time slot was $50.
• Personalization took another big leap in 1930 when Rosser
Reeves introduced the idea of a unique selling proposition.
A unique selling proposition, more commonly referred to as a USP, is
the one thing that makes your business better than the competition.
It’s a specific benefit that makes your business stand out when
compared to other businesses in your market.

• In 1935, George Gallup introduced market research -- gathering

information about consumers to better relate and advertise to them.
• The next major milestone in the evolution of advertising timeline
came on July 1, 1941, when the first legal and continental
commercial popped up on TV screens on WNBT. Although this
Bulova Watch Company ad was brief (only a 10-second spot for a
simple graphic and voiceover):
Companies began building characters around their products to
establish more of a connection between viewers and brands. Tony the
Tiger for Frosted Flakes, or the Snap, Crackle, and Pop gnomes for
Rice Krispies -- both of which are still seen on cereal boxes today:
Famous faces, like the Marlboro Man from the 1960s to 1990s,
were also often used to sell products:
Among all the different characters that emerged, the ads at this time
had one main purpose: to sell. While the characters played a major
part in creating an ad culture for consumers, the product was always
at the forefront.

Online advertising
This next period was known for introducing new channels and
mediums and a drastic shift in motive. Rather than selling, the
evolution of ads lead to a focus on brand awareness and problem-
solving. What is the consumer’s problem, and how can the product
solve it? Now the product was no longer the centerpiece of the ad --
the consumer was.
In 1995, Yahoo transformed itself from a web directory to a
commercial business. The company announced an advertising
deal for their own primitive banner ads, with five sponsor
company logos rotating daily across the top of the site:
The evolution of mobile advertising
The first mobile ad showed up in 2000 when a Finnish news
provider sent free news headlines via SMS. This led to more
experimental mobile ads and mobile marketing initiatives down
the road.
When the original iPhone was released in 2007, mobile advertising
came to smartphones. However, still new to the medium, advertisers
would simply reformat their desktop ads for mobile, meaning they
weren’t well-designed and didn’t provide an ideal user experience.

The launch of the App Store in 2008 with the iPhone 3G allowed
advertisers to take advantage of mobile app ads instead of mobile
web browser ads. Then, as capabilities grew to include things like
interactive gaming and GPS technology, mobile ads started
incorporating these features for a more personalized and engaging
user experience.
Assignment:
1. Define advertising in your own words.
2. Discuss the three main objectives of advertising.
3. Summarize the importance of advertising to the customers.
4. What is the most effective type of advertising? Explain.

Notes:
• Please submit this in a one (1) whole sheet of paper on Friday before
we’ll start the class.
• Each number is equivalent to 25 points, so a total of 100 points for
this assignment.