21OEL236 Advertising

S4 ASAS
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Advertising introduction
• The word advertising comes form the latin word "adverter" which
means to turn the minds of towards.
• According to William J. Stanton, "Advertising consists of all the
activities involved in presenting to an audience a non-personal,
sponsor-identified, paid-for message about a product or
organization.“
• According to American Marketing Association "advertising is any paid
form of non-personal presentation and promotion of ideas, goods
and services by an identified sponsor"
Definition
• American Marketing Association has defined advertising as “any paid
form of non-personal presentation of ideas, goods and services by an
indentified sponsor”.
• According to Webstar, “Advertising is to give public notice or to
announce publicity”.
• According to Gardner, “Advertising is the means of mass selling that
has grown up parallel with and has been made necessary to mass
production”.
FEATURES OF ADVERTISING
• Communication : Advertising is means of mass communication
reaching the masses. It is a non-personal communication because it is
addressed to masses.
• Information : Advertising informs the buyers about the benefits they
would get when they purchase a particular product. However, the
information given should be complete and true.
• Persuasion : The advertiser expects to create a favourable attitude
which will lead to favourable actions. Any advertising process
attempts at converting the prospects into customers. It is thus an
indirect salesmanship and essentially a persuasion technique
• Profit Maximisation : True advertising does not attempt at maximising
profits by increasing the cost but by promoting the sales. This way It
won‟t lead to increase the price of the product. Thus, it has a higher
sales approach rather than the higher-cost approach.
• Non-Personal Presentation : Salesmanship is personal selling whereas
advertising is non-personal in character. Advertising is not meant for
anyone individual but for all. There is absence of personal appeal in
advertising.
• Identified Sponsor : A sponsor may be an individual or a firm who
pays for the advertisement. The name of reputed company may
increase sale or products. The product gets good market because of
its identity with the reputed corporate body.
• Consumer Choice : Advertising facilitates consumer choice. It enables
consumers to purchase goods as per their budget requirement and
choice. Right choice makes consumer happy and satisfied.
• Art, Science and Profession : Advertising is an art because it
represents a field of creativity. Advertising is a science because it has
a body of organised knowledge. Advertising is profession is now
treated as a profession with its professional bodies and code of
conduct for members.
• Element of Marking Mix : Advertising is an important element of
promotion mix. Advertising has proved to be of great utility to sell
goods and services. Large manufactures spend crores of rupees on
advertising
• Element of Creativity : A good advertising campaign involves lot of
creativity and imagination. When the message of the advertiser
matches the expectations of consumers, such creativity makes way
for successful campaign.
OBJECTIVES OF ADVERTISING
• To introduce a new product by creating interest for it among the
prospective customers
• To support personal selling programme. Advertising maybe used to
open customers' doors for salesman.
• To reach people inaccessible to salesman.
• To enter a new market or attract a new group of customers.
• To enhance the goodwill of the enterprise by promising better quality
products and services.
• To improve dealer relations. Advertising supports the dealers in
selling he product. Dealers are attracted towards a product which is
advertised effectively.
• To warn the public against imitation of an enterprise's products
Importance of advertising
• Promotion of Sales : It promotes the sale of goods and services by
informing and persuading the people to buy them. A good advertising
campaign helps in winning new customers both in the national as wet
as in the international markets.
• Introduction of New Product : It helps the introduction of new
products in the market. A business enterprise can introduce itself and
its product to the public through advertising. A new enterprise can't
make an impact on the prospective customers without the help of
advertising. Advertising enables quick publicity in the market.
• Creation of Good Public Image : It builds up the reputation of the
advertiser. Advertising enables a business firm to communicate its
achievements in an effort to satisfy the customers' needs. This
increases the goodwill and reputation of the firm which is necessary
to fight against competition in the market.
• Mass Production : Advertising facilitates large-scale production.
Advertising encourages production of goods in large-scale because
the business firm knows that it will be able to sell on large-scale with
the help of advertising. Mass production reduces the cost of
production per unit by the economical use of various factors of
production
• Research : Advertising stimulates research and development
activities. Advertising has become a competitive marketing activity.
Every firm tries to differentiate its product from the substitutes
available in the market through advertising. This compels every
business firm to do more and more research to find new products
and their new uses. If a firm does not engage in research and
development activities, it will be out of the market in the near future.
• Education of People : Advertising educate the people about new
products and their uses. Advertising message about the utility of a
product enables the people to widen their knowledge. It is advertising
which has helped people in adopting new ways of life and giving-up
old habits. It has contributed a lot towards the betterment of the
standard of living of the society.
• Support to Press : Advertising provides an important source of
revenue to the publishers and magazines. It enables to increase the
circulation of their publication by selling them at lower rates. People
are also benefited because they get publications at cheaper rates.
Advertising is also a source of revenue for TV network. For instance,
Doordarshan and ZeeTV insert ads before, in between and after
various programmes and earn millions of rupees through ads. Such
income could be used for increasing the quality of programmes and
extending coverage
Types of advertising
• Social Advertising : Social Advertising is undertaken by non
commercial organisations such as Trust, Societies, Associations etc.
The main objective of Social Advertising is to work for social cause.
Advertisements for collecting donations for war victims or for victims
of natural calamities, sales of tickets for a show etc. are examples of
Social Advertising.
• Political Advertising : Political advertising is undertaken by political parties
to motivate the general public in favour of the ideology of the party in
question. Political advertising are intensively made during election times to
gain favour of the voters. Such advertising promote plans and policies of
the concerned party. It also try to expose weaknesses of the opposition
with a view to convince the voters to vote for their party candidates. Some
political advertisement are also made to assist the Government to
implement its schemes for rehabilitation and national reconstruction.
Mumbai Regional Congress Committee children affected by communal
riots in Mumbai under the scheme of National Foundation for Communal
Harmony. Advertisements issued by a political party is essentially a political
advertising.
• Retail Advertising : Retail advertising is the advertising by retailers
who usually sell goods direct to the customers. Retail advertising has
such objectives as : (i) to sell the stock; (ii) to establish the identify of
business; (iii) to attract personal, telephone or mail order shoppers.
Retail advertising is done through window display, neon signs,
posters, leaflets etc. It is usually local in character
• Corporate Image Advertising : Corporate Image advertising designed or
aimed to create a proper attitude towards the seller and to build goodwill
or image for the advertiser (manufacturing concern or the selling concern)
rather than to sell a specific product or service. Institutional advertising is
done to build good public relations‟ image in the market for the marketer
and a patronage for its product or products. Institutional advertising can
therefore be patronage advertising and public relations service advertising.
Public relations institutional advertising is aimed to create a favourable
image of the company (advertiser) among employees, investors or general
public. Public service institutional advertising aims at changing the
attitudes or behaviour of the people to the good of the community or
public at large.
• Public Relations Advertising : It is a part of institutional advertising.
The basic objective of public relations advertising is to establish co-
ordial and healthy relations with the customers, bankers, suppliers,
Government. Patrons and the general public. Through public relations
advertising company announces the changes in its policies, its
developmental activities its position and stand when the employees
are on strike. It helps the company to remove mis concepts about the
company created by interested groups.