DEFINITION “Any paid form of non personal presentation or promotion of ideas , goods or services, by an identified sponsor”.
MEANING OF ADVERTISING The word ‘advertising’ has originated from the Latin word ‘adver’ which means ‘to turn the mind toward’. The dictionary meaning of the term is ‘to give public notice or to announce publicly’.
FEATURES OF ADVERTISING PAID FORM OF COMMUNICATION NON-PERSONAL PRESENTATION OF MESSAGE PROMOTION OF PRODUCT SPONSORED BY IDENTIFIED PERSON
OBJECTIVES OF ADVERTISING PROMOTION OF SALES EDUCATE PEOPLE ABOUT PRODUCT INTRODUCTION OF NEW PRODUCT OVERCOME COMPETITION MASS PRODUCTION RESEACH & DEVELOPMENT
ADVERTISING CAN …….. Introduce new product Create demand Increase prospectus Stimulate the trade Test various type of appeals Open doors to salesman Helps in making product competitive Reach mass market
Give information Develop inquiries Helps in determining buyers preference Reduce selling expenses Builds customer relations Support & supplement sales programmes etc.
ADVERTISING CAN’T….. Sell a bad product twice Sell an overpriced Sell a poorly distributed product Sell a seasonal product out of season Works overnight Do the selling job alone Sell products to those persons having no use for them
Types of advertising
Advertising media The term ‘media’ refers to the means through which the advertising information is communicated by the advertiser to the prospective customers. It is a medium of delivering sales message with a view to know and decide about the product or service advertised.
Types of advertising
The Principal of media that are commonly used Press Media: Newspapers Magazines And Journals Outdoor Media Postal Or Direct Mail Other Media: Films Radio Television Window Display etc.
Press media It refers to publication of advertisements in newspapers, magazines and journals. It is the most suitable media who undertakes large number of national, state, and local newspapers; trade, business, industrial, technical journals and a wide variety of magazines types of advertising sources. Small businessmen as well as big business houses prefer the press as the medium of approaching people situated in wide area.
Types of press media newspapers Magazines and journals
newspapers It is the back bone of all advertising program. It is an excellent media of advertising for those who desire to reach the general public quickly and at short intervals. There are daily, weekly, biweekly where one could advertise suiting his own requirements.
advantages Advertisements through newspapers reach the public at the lower cost to the advertiser as compared to other mediums of advertising. It reaches the widest audience as newspapers cover wide range of interest. It makes possible frequent and regular advertising and, hence, is very effective.
disadvantages Newspapers advertisements are usually unattractive because of poor quality of its paper and printing. Life of newspapers is very short. It has been rightly said, “nothing is as dead as yesterday’s newspapers.” The average reading time of newspaper is confined to fifteen to twenty minutes only and as such readers may ignore the advertisements. The media of newspapers advertising is limited to enlightened and literate people only. Newspaper advertisements become less effective when several advertisements for the same product appear in the same newspaper.
Magazines and Journals Magazines are the periodicals published weekly, fortnightly, monthly, quarterly or yearly to be read normally in leisure hours. Magazines are of various types: ordinary magazines which are read by all classes of people, special magazines such as women’s magazines, children magazines etc. Journals devoted to varied subjects such as Commerce, Management, Financial Analysis And Industry, etc.
Advantages of magazines and journals They have long life and are more effective because they remain before reader’s eyes for a longer time as compared to newspapers. Their scope is wider as compared to newspapers because they are generally national or international in character. They are usually more attractive because of better quality of paper and colored printing.
Limitations of magazines and journals The cost of advertisement per reader is higher as compared to newspapers. Advertising for introducing of new products in magazines and journals is ineffective as compared to newspapers which are circulated daily. The utility of this media of advertising is limited to literate people too high income class. It is an inflexible media of advertising as time of publication of magazines or journals is fixed and the advertiser has to send the advertisement message much in advance.
Outdoor media It refers to the display of advertisements in open places wherefrom people generally pass through such as railway stations, bus stands, streets corners, road-sides etc. It is meant for moving audience without any cost on their part. The appeal of such advertisements takes a mass form as nearly 97% of adult population moves out of doors every week. Various types of outdoor media are as follows: Posters Painted display Travelling displays Sandwich men Electrical arrangements
Advantages of outdoor advertising It is a mass medium with widest appeal to all classes of society. It reaches without cost so far as the consumer is concerned. It is durable and economical. It is best suited for local advertising. It helps to cover the ugly walls, etc. and beautifies them. It can be made effective by deep colors, good designs of artistic work and interestingly slogans.
Limitations of outdoor media It is expensive as compared to some other media of advertising. It creates a public nuisance and spoils the walls, public sites, etc.
Postal or direct mail advertising Direct mail advertising is a way of transmitting information or a message direct to potential customers through the medium of post. Such advertising reaches the public free of cost for them and generally read indoors as it is sent to their personal or official address. The important direct mailing media are as follows: Cards Circular Catalogues, booklets and brochures calendars
Advantages of direct mail advertising It is direct, made to order appeal that can give a personal touch. It is flexible and may be adopted to suit the specific needs and desires. It maintains privacy. It is highly selective and thus saves in cost. It can be made attractive as paper, printing, etc. are all in the control of advertiser.
Limitations It is costlier than other media in the sense that cost per reader to the advertiser is high. It has only a limited reach that does not serve as a mass media. It is too much selective and preparing the mailing list is a difficult task. It is quite common that much of the direct mail advertising is thrown into the trash baskets and ignored.
FILMS radio Other media television Window display
films Advantages: These have the demonstration effect and catch the psychology of audience who are prompted to imitate in the near future. These are more attractive and appealing. Such advertisements can reach the mind of even illiterate people. Limitations: It is a costlier media of advertising. It has a limited coverage.
radio It is alive, animated and quite dramatic as compared to printed advertisements. It affects the mind and therefore, is more receptive. It requires little effort on the part of the listener and reaches him at home. It is flexible and can be made to reach the public at the desired time.
limitations It is an expensive media of advertising. It generally has a temporary effect. It does not provide pictorial presentation. It is not suitable for advertising all types of products. Its message is brief and sometimes is not clear.
television It provides enough scope for variety and appeals both to the eyes and ears. It combines the all features of a good advertisement, i.e. sound, sight, demonstration. It offers considerable flexibility in terms of coverage, audience and the time. It has overcome the major limitation of pictorial presentation of radio advertising. However it is a very expensive medium of advertising that can be adopted by only big business houses.
Window display Windows are the face of the shop that constitute the first impression of the establishment. They are used to attract the persons into the shop by arousing their interest. Advantages: It appeals at the ‘point of purchase’ and has immediate effect. It provides actual life size presentation of demonstration. It saves time of the shopkeeper. It adds to the beauty of the shop. It can be made appealing and effective by giving light and color touch.
Interior display and show rooms Success depends upon the suitable location and proper layout of the showrooms. This help the customers to inspect the goods and buy them immediately.
Fairs and exhibitions They are organized on a large scale in the central places where masses can reach easily. They offer an opportunity to the manufacturers or sellers to display their goods and provide them a ready market. The customers are also provided opportunity to study various products available, judge their relative strength and have the knowledge of the market.
Advantages And Disadvantages of Advertisement
ADVANTAGES: To manufacturers To Consumers To Salesman To Society
To Manufacturers:It creates demand for new product by informing people about the availability and use of such goods. It promotes increased demand by maintaining the present demand and expanding the markets by attracting more people to buy. It creates goodwill by making the name of the manufacturer and his product famous. It creates steady demand for products by smoothening out the seasonal fluctuations in demand.
It facilitates quick turnover of goods by promoting highly responsive markets which helps in reducing many expenses of the manufacturer and losses.It reduces the cost of production by making large scale production possible through creation of demand. The large scale production reduces the total cost per unit.It reduces cost of production by popularizing the product.
It increases the profits by increasing sales, promoting large scale production, reducing cost of production and cost of distribution. As the cost per unit is reduced, selling price may also be reduced which in turn will increase sales and get more profits.It increases labour productivity by encouraging employees to produce better quality goods andachieve better performance.
To Consumers:It facilitates purchasing by educating consumers to select correct brands of commodities which increase their personal satisfactionIt paves way for better standard of living as consumers come to know about the new and latest products available in the market..
It makes goods available at reduced prices.It increases the utility of commodities as the consumers come to know about the proper and diverse use of commodities through advertising.It saves consumers time as they do not have to waste their time in selecting commodities.
It ensures good quality of products as advertising encourages manufacturers to produce better quality products which also boosts consumer’s confidence.It reduces the possibility of being cheated as consumers are aware about the prices and composition of the goods through advertisement.It prompts the consumers to work hard and earn more. Advertisement attracts customer’s to buy even costlier products.
To Salesman:It creates proper base for the salesman by acquainting more people, in shorter time, with the merits of the product, its uses, new varieties and so on.It educates even salesman and increase their confidence, capacity and initiative.It reinforces the sales points and simplifies work of the salesman as they cannot reach all places and at all times.It reduces the effort of the salesman as they can reach the right prospects with the least effort.It increases the remuneration of salesman by supplementing their efforts to increase sales and thereby increase remuneration.
To the Society: It uplifts the standard of living of the people. It generates gainful employment opportunities. It provides new horizons of knowledge. It provides a regular source of income to the newspaper. It transforms culture of a nation. It acts as barometer of nation’s economic growth.
DISADVANTAGESIt increases the prices of the commodities or services: The cost of advertisement forms the part of the cost alongwith other costs and thus increases the costs of goods sold or services rendered.
It creates and breeds monopolies:Advertisements creates stress on brand preferences which makes the consumers sheer slaves of such brands.This further enables the manufacturers to exploit the consumers. Further advertising kills free competition it becomes difficult for new firms to sell their products. Creation of monopolies leads to concentration of wealth in few hands.
It is a sheer waste of resources: Advertising is also criticized on the grounds that it is a sheer waste of economic resources as most of the advertisements are either ignored or escape the attention of the consumers. Moreover it does not creates new demand but shifts demand from one product to another.It multiplies the needs of the people, encourage extravagance and creates dissatisfaction: Advertising tempts people to buy luxury goods which they cannot afford and this leads to dissatisfaction and frustration.
It misleads people and acts as an instrument of cheating: Most of the advertisements are misleading which conceal or exaggerate the facts and induce people to buy inferior or even worthless goods.
It encourages vulgarity, cupidity, indecency and bad taste:Advertisements exploit the sentiments and emotions and many of them are vulgar and stupid.Others appeal to shame, fear and envy while some others are offensive to public decency or insulting to consumers' intelligence.It works to produce a society composed of greedy, self centered individuals:who worship materialism. People forget social and moral values and brings down the character of the nation.
Advertising and marketing
In primitive stages of human kind only that much was produced which was needed for consumption. Marketing came into existence when excess production took place Marketing refer to an exchange process which is facilitated by adequate information of an exchangeable products. Advertising is the media for carrying information about products and services to those who need them.
Relationship between advertising and marketing Marketing mix Marketing mix refers to product, price, promotion and distribution of goods and services. The producers try to reach large no of customers in the market. Advertising is the media for reaching customers sitting at large near and far off places. Other marketing variables such as product price distribution will succeed when advertising has been utilised successfully. Advertising not only aims at sale of products but it educates the consumers and their want satisfying quality.
Communication concept Advertising aims to reach the customers and the medium used is communication . communication focuses on the process by which messages are transferred from the communicator to the target audience. The message flow in words, pictures gestures and in some silent forms. The message is coded by the sender and is decoded by the receiver. The message and the manner of communication are decided according to the nature of the audience. the communication mix, communicator, media, message and audience is effectively utilised for advertising purposes.
Primacy of product The quality and the price of the product determines its market advertising is an instrument for promoting the product and creating its acceptance by the consumers. Only a good product, when coupled with effective advertisement can survive in the market. Advertising can help in the initial stage but sustaining the demand will depend upon the utility of the product. The product and advertising are interrelated.
Packaging Packaging play an important role in advertising. Earlier packaging was used for protecting the product but now it is used for identifying and showing name and trademark of the manufacture.it also carries information about the advantages and methods of use. Medicines and health products mention the ingredients used in manufacturing, date of manufacture and date of expiry, precautions for storing etc.
Trade marks Trade marks are designed to identify products. They help in building the brand image of the products. A brand is a name, term , sign, symbols or a combination to identify the goods or products. Trade marks may be in the form of birds, animals, objects etc. while advertising a product the trade marks are used so that consumer starts remembering the product along with them. For example dalda was associated with vegetable ghee, quick was used in place of ink, nirma symbolised detergent powders. The popularity of symbols or other objects associate a product with a particular use.
Channels of distribution The channels of distribution involve physical distribution of goods and services from producers to consumers and the flow of information from one to the other. There are middlemen between the producer and the consumer, these may be known as wholesalers, retailers etc. there is a need for flow of information for facilitating distribution of goods and services. Advertising provides required information to various middlemen and the consumers about the availability, quality, price, modes of exchange etc. of goods and services. This information helps in undertaking exchange at various levels.
Advertising agency An advertising agency is an independent organization or firm set up to render specialized professional services in advertising in particular and marketing in general. Advertising agencies came into existence as space brokers for the handling of advertisements in newspapers. But, through the years the function of these agencies has undergone a wide change. Their main job today is not only to aid media but also to serve advertisers. Advertising agencies perform a number of functions with expertise such as providing counsel relating to advertising and other allied operations, preparing advertisements, selecting media, buying space and time in the selected media , conducting market research, preparing sales promotion materials, selecting target consumers, developing channel of distribution strategies, designing products and packages, preparing and distribution messages and public relations.
Advantages of employing an advertising agency Provides expert and specialized service Provides better quality of advertising and guarantees timely presentation Frees the advertisers from the cumbersome job and gives him the benefit of economy and experience Helps the firm in selecting the most suitable medias of advertising and thus enables it to allocate the available funds efficiently Makes available to advertisers the discounts offered by various mediums of advertising Performs other functions such as conducting market research, developing marketing marketing strategies, design products and packages etc., and is thus of immense help to the advertiser.
```````````````````````````````````````````````` Preparation and features of effective advertisement Creating an effective advertisement involves the following Writing the copy Selecting illustrations and coining slogans to be used Repairing the layout Reproducing the messages through the selected media Of all the above elements copy is of utmost importance. The success of an advertisement lies in the preparation of advertisement copy . its main aim is to influence the attitude and action of buyers so that it resulted in increased sales. It refers to all the written or spoken material in it including the main body, headlines, subheads, and all other printed elements such as picture captions, slogans, brand names, trade marks, prices.
Features of an effective advertisements Must make people look or see it Must make people read it Must make people understand it Must make people believe and influence their attitudes Must make people to act in the desired manner
An advertisement should be Simple Informative Easy to understand Enthusiastic Concise and complete Truthful Penetrating and convincing unique
Sales promotion Sales promotion refers to ‘those marketing activities, other than personal selling, advertising and publicity, that stimulate consumer purchasing and dealer effectiveness , such as displays, shows and expositions, demonstrations and various non- recurrent selling efforts, not in the ordinary routine’
Objectives of sales promotion Supplement and co-ordinate the efforts of advertising and personal selling Stimulate customers to make purchase at the point of purchase Attract new customers Prompt existing customers to buy more Meet competition Sell in off seasons
Elements of sales promotion l.W rodger has identified six basic elements Determine and creating the specific advertising messages to be directed at the audience Selecting the utmost effective and most economical media to reach this audience Scheduling the chosen media to provide the best timing, frequency and impact Determining the budget Measuring the results
Methods of sales promotions Consumer promotions Sales promotion activities desired to reach consumers may take any of the following forms Samples Coupons Contests Demonstrations Bonus offers
Trader or dealer promotions *Sales promotions efforts are also required to attract the retailers and wholesalers to keep a large stock with them. These includes Cash and trade transactions Display and advertising allowance Premiums Bonus Count and recount allowance
Sales forces promotions Following activities may be taken for sales force promotion Bonus Commission Sales force contests Meetings, conventions and conferences of salesmen Sales force contests