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MODULE 1

Advertisement: AN INTRODUCTION

INTRODUCTION
Advertising is a powerful communication force, highly visible, and one of
the most important tools of marketing communications that helps to sell
products, services, ideas and images, etc. Many believe that advertising
reflects the needs of the times. One may like it or not but play
advertisements are everywhere. Advertisements are seen in newspapers,
magazines, on television and internet and are heard on radio. The average
consumer is exposed to a very large number of advertisements every day,
particularly the urban and semi-urban population.
Advertising is an indicator of the growth, betterment and perfection of
civilization. It is part of our social, cultural and business environment. It is not
at all surprising that advertising is one of the most closely scrutinized of all
business institutions. In today’s environment, not only are advertisers
closely examined by the target audience for whose that advertisements
are meant, but by society in general.

OBJECTIVES

At the end of this module, the students are expected to:

1. Identify the four basic elements of promotion mix.


2. Understand the different features of advertising.
3. Define and understand the concept of advertising.
4. Rationalize the importance of advertising in business.
5. Understand the origin and development of advertising.

A. Marketing Mix and Promotion

Advertising is only one element of the promotion mix, but it often


considered prominent in the overall marketing mix design. Promotion may be
defined as “the o- rdination of all seller initiated efforts to set up channels of

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information and persuasion to facilitate the scale of a good or service.”
Promotion is most often intended to be a supporting component in a marketing
mix.

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The promotion mix consists of four basic elements. They are:

1. Advertising is the dissemination of information by non-personal means


through paid media where the source is the sponsoring organization.
2. Personal selling is the dissemination of information by non-personal
methods, like face-to-face, contacts between audience and
employees of the sponsoring organization. The source of
information is the sponsoring organization.
3. Sales promotion is the dissemination of information through a wide
variety of activities other than personal selling, advertising and
publicity which stimulate consumer purchasing and dealer
effectiveness.
4. Publicity is the disseminating of information by personal or non-
personal means and is not directly paid by the organization and the
organization is not the source.
5. Direct marketing is a promotional method that involves presenting
information about your company, product, or service to your target
customer without the use of an advertising middleman. It is a targeted
form of marketing that presents information of potential interest to
a consumer that has been determined to be a likely buyer.

B. Advertising: The Definition and Its Concept

The word advertising originates from a Latin word advertise, which


means to turn to. The dictionary meaning of the term is “to give public notice
or to announce publicly.”
“Advertising is any paid form of non-personal presentation and promotion of
ideas, goods and services by an identified sponsor.” – American Marketing
Association.
“Advertising is the non-personal communication of marketing-related information
to a target audience, usually paid for by the advertiser, and delivered through mass
media in order to reach the specific objectives of the sponsor.” – John J Burnett.
“Advertising is a message paid for by an identified sponsor and delivered through
mass medium of mass communication. Advertising is persuasive communication. It is
not neutral; it is not unbiased; it says; „I am going to sell you a product or an idea.” - J
Thomas Russell and W. Ronald Lane

1. What Advertisement Is?


Advertisement is a mass communicating of information intended to
persuade buyers to buy products with a view to maximizing a company’s
profits. The elements of advertising are:
1. It is a mass communication reaching a large group of consumers.
2. It makes mass production possible.
3. It is non-personal communication, for it is not delivered by an
actual person, nor is it addressed to a specific person.
4. It is a commercial communication because it is used to help
assure the advertiser of a long business life with profitable sales.

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5. Advertising can be economical, for it reaches large groups of
people. This keeps the cost per message low.

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6. The communication is speedy, permitting an advertiser to
speak to millions of buyers in a matter of a few hours.
7. Advertising is identified communication. The advertiser signs his
name to his advertisement for the purpose of publicizing his
identity.

2. Specific Reasons for Advertising


 To announce a new product or service: To promote new products,
advertising becomes bold and dramatic. It should also convince us
about the novelty. For new products, we need an initial splash of
advertising but it has to be followed by sustained efforts.
 To expand, to new buyers: Here what has been successfully sold to one
segment of the market is advertised to a new segment, Soft drinks are
the craze for teenagers. But they are now promoted for children.
 To announce a modification: Many consumer’s products time and again
are given a new 1ease 6f life by a certain product modification, e.g.,
salt becomes iodized salt.
 To announce a price change: Price is used as key variable at times to
boost sales. Reduced prices or discounts available on products become
a matter of advertisement.
 To announce a new pack: Advertisement in illustrations and photos
identify a pack when a pack design is changed the whole personality of
the product changes. So this is announced through advertising.
 To make a special offer: There are gifts and premiums that go with the
product. There are introductory offers. There is a special offer in slack
season.
 To invite inquiries: Most industrial advertisements and many consumer
product advertisements (especially of services) bring forth inquiries
from potential customers. Coupons are generally employed to bring
the enquiries.
 To sell direct: Mail order selling of books, sports goods, textiles, gift
items, transistors etc. is conducted through pamphlets called direct
mailings.
 To test a medium: Couponed advertisement placed in an untried media
tests the effectiveness-of that media.
 To educate’ customers: We come across both informative and
persuasive advertising. The informative variety is more acceptable
such a copy is educative it gives explanation about & product or
service. People need education about air travel, foreign jaunts,
packaged tours and tourist places.
 To maintain sales: Advertising continues for the whole life of a product.
Introductory advertising is of course heavy. But then to maintain sales,
moderate advertising is necessary. Absence of total advertising may lead
to extinction, of a product.
 To remind: though it sounds like sales maintenance, it is somewhat
distinct. Small items like milk, bread toffees, chocolates, éclairs,
blades, tea etc. are purchased repeatedly in small units. Reminder
advertising asks the buyers to stick to the same brand; it also
encourages the re-purchases of the brand. Slogans and jingles are a
great help here. Sometimes this genre makes up our mind or a
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particular brand whose need may arise in future. Mentally, we say I will
buy such and such brand of TV. Reminder advertisement makes one stick
to this decision.
 To get back lost sales: Sometimes a company reduces advertising
abruptly and suffers a loss in terms of sales. Again we will have to
arrange a special campaign to get back the lost sales. Mail advertising
is used for trade.

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 To please the sales force: Effective advertisement improves the moral of
the sales force. Advertising support also supplements their selling
efforts.
 To recruit staff: Advertising is a source of recruitment. It may be a small
classified advertisement or a prominent display advertisement.
 To attract investors: Financial advertising has come of age. There are
special agencies who handle this. It makes you favorable towards an
investment or a donation. It gives the details of returns on this
investment or the social benefits of the donation. Share and securities
issues are floated with sound advertisement support
 To export: Media abroad are quite different. There are trade fairs etc.
International advertising requires expert guidance. Export advertising
without market research and media research can be a costly failure.

3. Active Participants in Advertising


The following are the group of people who are actively involved in
advertising;
 Advertiser
 Target Audience
 Advertising Agencies
 Advertising Production People (Artists)
 Mass Media
 Government Authorities
 Advertising Production Firms

4. Features of Advertising
The following are the salient features of advertising:

 Paid Form: .An advertising message is paid for by the advertiser and this
distinguishes it from publicity which is not paid, for. When an advertiser
makes payment, he exercises control over its contents, form schedule,
and media selection.
 Any Form: Advertising can take several forms. It could be a sign, a
symbol, and an illustration. It could be a message which is either written
in words or shown on TV or aired on radio. It could be a mailer received
in post it could be a handbill distributed at a “street corner. Advertising
could be outdoor advertising such as posters or billboards or neon signs.
Any form of presentation, which fulfils the functions of an
advertisement, can be employed.
 Non-Personal: Advertisement does not include any personal selling done
on person-to-person basis or people to-people basis. It is a substitute for
a personal salesman. It uses mass media to deliver the message.
Advertisement is meant for a larger „target audience and is not directed to
an individual.
 Goods, Services, Ideas: Advertising can promote a wide range of products.
It can also promote services such as mobile telephony, internet and
banking. Besides, this advertising is used to propagate socially relevant
causes such as family welfare, fuel, economy, adult literacy etc.
 Identified Sponsor: An advertisement is put by an advertiser. The
advertiser could be a company or corporation or society or an
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individual. The sponsoring organization puts either its name or the name
of the brand or both on the advertisement.
 Information: An advertising message informs the consumers about
the

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features of the products and their availability.

 Persuasion: Advertising goes beyond information. It persuades the


potential consumers about the suitability of the product.
 Target Audience: An advertising message is meant for a specific group of
people who are the potential or actual users of the product. A lipstick is
meant for young college girls. A luxury car is meant for, high income
business and professional people. An advertiser directs his message to
a selected group called its target audience.

 Creativity: Advertising has to sell. But beyond that- it is also an art,


which employs creativity to create an ad message. Advertising as a
profession employs both creative and on creative - people. Those who
write advertisements are called copywriters and work in the creative
section. Those who visualize the written words are also create the
message so generated is produced to be put across through different
media. Production and media are the two other important departments
of advertising business.

5. What is Included in Advertising?


 The information in an advertisement should benefit the
buyers. It should give them a more satisfactory expenditure of
their rupees.
 It should suggest better solutions to their problems.
 The content of the advertisement is within the control of the
advertiser, not the medium.
 Advertising without persuasion is ineffective. The advertisement
that fails to influence anyone, either immediately or in the
future, is a waste of money.
 The function of advertising is to increase the profitable sales
volume. That is, advertising expenses should not increase
disproportionately.

6. What is excluded from Advertising?


Advertising is not an exact science. An advertiser’s circumstances are
never identical with those of another; he cannot predict with accuracy what
results his future advertising efforts will produce.
1. Advertising is not a game, because if advertising is done
properly, both the buyer and the seller benefit from it.
2. Advertising is not a toy. Advertiser cannot afford to play with
advertising. Advertising funds come from sales revenue and
must be used to increase sales revenue.
3. Advertisements are not designed to deceive. The desire and
hope for repeat sales insures a high degree of honesty in
advertising.

C. Origin and Development of Advertising

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It has been wrongly assumed that the advertising function is of recent
origin. Evidences suggest that the Romans practiced advertising; but the
earliest indication of its use in this country dates back to the Middle Ages,
when the use of the surname indicated a man‟s occupation. The next stage in
the evolution of advertising was the use of signs as a visual expression of the
tradesman‟s function and a means of locating the source of goods. This method
is still in common use.

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The seller in primitive times relied upon his loud voice to attract attention
and inform consumers of the availability of his services. If there were many
competitors, he relied upon his own personal magnetism to attract attention to
his merchandise. Often it became necessary for him to resort to persuasion to
pinpoint the advantages of his products. Thus, the seller was doing the
complete promotion job himself.

Before the invention of printing from movable type by Johann


Gutenberg there were three forms of advertising.

 Trademarks: Craftsman, in early times, wanted to be identifies for


their skills and places their individual marks on goods that they
crafted. This led to reputation building of particular artisans by
word of mouth..
 Signs: Phoenicians, and other traders, painted commercial messages
on prominent tucks along trade routes that they frequented. These
messages highly praised the products that were for sale.
 Town Criers: This system of town criers was perhaps, present in all
developed civilizations of the ancient world. In Greece, during the
golden age, town criers were paid to go around town spreading news
and making announcements in the streets of Athens.
When customers were finally attracted to the store and satisfied with
the service at least once, they were still subjected to competitive influences;
therefore, the merchant‟s signs and advertisements reminded customers of
the continuing availability of his services. Sometimes traders would talk to
present and former customers in the streets, or join social organizations in order
to have continuing contacts with present and potential customers.
As the markets grew larger and the number of customers increased,
the importance of attracting them also grew. Increasing reliance was placed
on advertising methods of informing about the availability of the products.
The invention of hand press increased the potentialities of advertising. By
Shakespeare‟s times, posters had made their appearance, and assumed the
function of fostering demand for existing products. Another important event
was the emergence of the pamphlet as an advertising medium. The early
examples of these pamphlets disclose their sponsorship by companies want
to generate goodwill for their activities. The low cost of posters and handbills
encouraged a number of publishers to experiment with other methods.

Advertising in the 21st Century:

The past decade has witnessed a remarkable impact on advertising


due to rapid strides in technology. It is difficult to determine exactly what
the coming decades in this new century will bring, however, what
looks certain is that there will be much greater consumer involvement and
control and some degree of two-way communication. With the opening up of
economies, mass marketers will continue to increase their operations on
a worldwide basis. More and more global players will increasingly adjust
their strategies to a local market; country- based or region-based; and
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advertising will increasingly acquire a local color.
Further progress in artificial intelligence will add a totally new
dimension to advertising and its planning. There will be major career
opportunities for talented people in the electronic media. There will be
a number of challenges

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unique to the coming generations and with these challenges there will be
opportunities, responsibilities, and rewards that advertises of the past could
not have imagined.

D. Importance of Advertising
Generally, advertising is a relatively low-cost method of conveying
selling messages to numerous prospective customers. It can secure leads for
salesmen and middlemen by convincing readers to request more information
and by identifying outlets handling the product. It can force middlemen to
stock the product by building consumer interest. It can help train dealers
salesmen in product uses and applications. It can build dealer and consumer
confidence in the company and its products by building familiarity.
Advertising is to stimulate market demand.
Non-business enterprises have also recognized the importance of
advertising. The attempt by army recruitment is bases on a substantial
advertising campaign, stressing the advantages of a military career. The
health department popularizes family planning through advertising Labor
organizations have also used advertising to make their viewpoints known to
the public at large. Advertising assumes real economic importance too.
Advertising strategies that increase the number of units sold stimulate
economies in the production process. The production cost per unit of output is
lowered. It in turn leads to lower prices. Lower consumer prices then allow
these products to become available to more people. Similarly, the price of
newspapers, professional sports, radio and TV programs, and the like might
be prohibitive without advertising. In short, advertising pays for many of the
enjoyable entertainment and educational aspects of contemporary life.
Advertising has become an important factor in the campaigns to
achieve such societal-oriented objectives such as the discontinuance of
smoking, family planning, physical fitness, and the elimination of drug abuse.

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Advertising is only one element of the promotion mix, but it often considered
prominent in the overall marketing mix design. Promotion may be defined as “the co-
ordination of all seller-initiated efforts to set up channels of information and
persuasion to facilitate the scale of a good or service.” Promotion is most often
intended to be a supporting component in a marketing mix.

The promotion mix consists of basic elements. 4


They are:

Advertising - is the dissemination of information by non - personal means through paid


media where the source is the sponsoring organization.

Personal selling - is the dissemination of information by non-personal methods, like face-


to-face, contacts between audience and employees of the sponsoring organization. The
source of information is also the sponsoring organization.

The promotion mix consists of four basic elements.


They are:

Sales promotion - is the dissemination of information through a wide variety of


activities other than personal selling, advertising and publicity which stimulate
consumers purchasing and dealer effectiveness.

Publicity is the disseminating of information by personal or non-personal means and


is not directly paid by the organization and the organization is not the source.

Advertising: The Definition and Its Concept

The word advertising originates from a Latin word advertise, which means to turn to. The
dictionary meaning of the term is “to give public notice or to announce publicly.”

What advertising is?

Advertisement is a mass communicating of information intended to persuade buyers


to buy products with a view to maximizing a company’s profits.

The elements of advertising are:


1. It is a mass communication reaching a large group of consumers.
2. It makes mass production possible.
3. It is non-personal communication, for it is not delivered by an actual person, nor is it
addressed to a specific person.
4. It is a commercial communication because it is used to help assure the advertiser of
along business life with profitable sales.
5. Advertising can be economical, for it reaches large groups of people. This keeps
the cost per message low.
6. The communication is speedy, permitting an advertiser to speak to millions of
buyers in a
7. matter of a few hours.
8. Advertising is identified communication. The advertiser signs his name to his
advertisement for the purpose of publicizing his identity.

What is Included in Advertising?

 The information in an advertisement should benefit the buyers. It should give them
a more satisfactory expenditure of their money.
 It should suggest better solutions to their problems.

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 The content of the advertisement is within the control of the advertiser, not the
medium.

 Advertising without persuasion is ineffective. The advertisement that fails to


influence anyone, either immediately or in the future, is a waste of money.

 The function of advertising is to increase the profitable sales volume. That is,
advertising expenses should not increase disproportionately.

What is excluded from Advertising?

Advertising is not an exact science. An advertiser’s circumstances are never identical


with those of another; he cannot predict with accuracy what results his future advertising
efforts will produce.

Advertising is not a game, because if advertising is done properly, both the buyer and
the seller benefit from it.
Advertising is not a toy. Advertiser cannot afford to play with advertising. Advertising
funds come from sales revenue and must be used to increase sales revenue.
Advertisements are not designed to deceive. The desire and hope for repeat sales
insures a high degree of honesty in advertising.

The activities excluded from advertising are:

1. The offering of premiums to stimulate the sale of products.


2. The use of exhibitions and demonstration at fairs, show and convention:
3. The use of samples and activities, involving news releases and the activities of
personal selling forces,
4. The payment of advertising allowance which are not used for advertising:
5. The entertainment od customers.

Advertising Objectives

Each advertisement is a specific communication that must be effective, not just for one
customer, but for many targets buyers. This means that specific objectives should be set
for each advertisement campaign. Advertising is a form of promotion; the objectives of
advertising should be specific. This requires that the target consumers should be
specifically identified and that the effect which advertising is intended to have upon the
consumer should be clearly indicated.

The basic objectives of an advertising program may be listed below:

1. To stimulate sale amongst present, former and future consumers. It involves a


decision regarding the media, e.g., TV rather than print;

2. To communicate with consumers. This involves decision regarding copy;

3. To retain the loyalty of present and former consumers. Advertising may be used to
reassure buyers that they have made the best purchase, thus building loyalty to the
brand name or the firm.

4. to increase support. Advertising implied bolsters the morale of the sale force and
distributors, wholesalers and retailers; it thus contributes to enthusiasts and
confidence attitude in the organizational.

5. To project an image. Advertising is used to promote an overall image of respect and


trust for an organization. This message is aimed not only at consumers, but also the
at the government, shareholders, and the general public.

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Importance of Advertising

Generally, advertising is a relatively low-cost method of conveying selling messages


to numerous prospective customers. It can secure leads for salesmen and
middlemen by convincing readers to request more information and by identifying
outlets handling the product.

- Advertising has become increasingly important to business enterprises - both large and
small. Outlaid on advertising certainly is the voucher. Non business enterprises have also
recognized the importance of advertising. The attempt by army recruitment is bases on a
substantial advertising campaign.

Advertising strategies that increase the number of units sold stimulate economies in
the production process. The production cost per unit of output is lowered. It in turn
leads to lower prices.

Advertising has become an important factor in the campaigns to achieve such societal-
oriented objectives such as the discontinuance of smoking, family planning,
physical fitness, and the elimination of drug abuse. Advertising helps to increase mass
marketing while helping the customer to choose from amongst the variety of products
offered for his selection.

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