Evolution Of Advertising
Advertising
— Advertising may be defined as the process of buying sponsor identified media space or time to promote a product or an idea.
— The word advertising originates from a Latin word advertire, which means to turn to.
— The dictionary meaning of the term is “to give public notice or to announce publicly”.
Main Idea
— Advertising is a Paid form.
— 2. Advertising is Non-Personal.
— 3. Advertisments are identifiable.
To understand Adverting better we will have to learn Promotion mix first.
First we will start with Definition of Promotion.
Introduction
— Promotion: Definition: -
— Promotion may be defined as “the co-ordination of all seller-initiated efforts to set up channels of information and persuasion to facilitate the sale of a goods or service.”
Promotion Mix
— Promotion Mix consists of four basic elements.
— 1. Advertising
— 2. Personal Selling
— 3. Sales Promotion
4. Publicity
Examples
— Advertising - Newspaper Advertisement.
— 2. Personal Selling- Door to door selling, Insurance agent.
— 3. Sales Promotion- Free samples, Gifts etc.
— 4. Publicity- Publicity in News or News article.
Objectives of Advertising
— To increase Sales directly by: -
1. Encouraging potential purchasers to visit dealers or distributors.
2. Announcing special sales or other promotions.
3. Securing new dealers or distributors.
4. Inducing professional persons to recommend a product.
Distributing coupons to be redeemed on purchases
To create awareness & interest in the company’s products by: -
1. Informing potential buyer about product features.
2. Announcing the availability of new products.
3. Demonstrating the benefits from a product’s use.
4. Comparing a product with competing products.
5. Showing how a product should be used.
6. Informing potential buyers about the company’s technical skills, production facilities, technical services.
7. 7. Informing purchasers about the places where products may be obtained.
8. 8. Announcing changes in prices, packages, labels.
9. 9. Publicising a new brand name or symbol.
— The objectives of a company’s Institutional advertising may be: -
1. To depict the company as a good employer & citizen.
2. To acquaint people with company’s public service.
3. To inform people about company’s industry & its role in the economy.
4. To describe its specific research & development activities and achievements.
5. To identify the company with its overall goals.
— The objectives of a company’s Institutional advertising may be: -
1. To depict the company as a good employer & citizen.
2. To acquaint people with company’s public service.
3. To inform people about company’s industry & its role in the economy.
4. To describe its specific research & development activities and achievements.
5. To identify the company with its overall goals.
6. To improve the investor’s evaluation of the company.
7. To improve the prospective employee’s appraisals of the company as a place of work.
8. To refuse derogatory publicity.
9. To explain the company’s position in a labour dispute or on legal issues.
Merits and Demerits of Advertising
Merits of Advertising
1. Mass Reach
2. Enhancing customer satisfaction & Confidence.
3. Expressiveness.
4. Economy.
De-Merits of Advertising
1. Adds to Cost.
2. Undermines Social Values.
3. Confuses the Buyers.
4. Encourages sale of inferior Products.
5. Some Advertisements are in Bad Taste.
6. Wastage of Resources.
7. Creates Artificial Needs.
8. Transfer of Demand.
9. Immoral & Vicious Advertisements.
10. Unbalanced Growth.
11. Creates Monolithic Monopolies.
Ethics in Advertising
Ethics in Advertising
— Ethics is choice between good and bad, between right and wrong.
— Advertisements should not be indecent and obscene.
— Gambling is against ethical code.
Guidelines: -
1. Truthfulness & honesty of representations.
2. Advertisement is not offensive.
3. Safeguard against indiscriminate use of Advertising.
4. Advertisement observe fairness in competition.
— The Sachar committee has recommended that following acts of sellers should be declared as Unfair Trade Practices: -
1) Misleading advertisement & false representation.
2) Offering of gifts & prizes with the intention of not providing them.
Importance of Advertising
— 1. Crucial for a launch and announcement.
— 2. Source of Revenue for Publishers.
— 3. Promotes Goods, Services, Ideas & Events.
— 4. Helps in Increasing the Sales.
— 5. Maximizes the profit of an Advertiser.
— 6. Creates Consumer Awareness.
— 7. Educates Society.
— 8. Advertising is target oriented.
— 9. Builds Brand Image.
— 10. Generates Employment.
— 11. Advertising demands Creativity and Innovation.
Importance for Manufacturer
1. Helpful in Competition.
2. Guide for the consumers.
3. Development of Business.
4. Higher Profit.
5. Helps Economy.
6. Greater and faster sales.
7. Elimination of Seasonal fluctuations in Demand.
8. Lowers Cost.
9. Assistance to Dealers.
10. Supplementing Salesmanship.
11. Building up Image.
12. Better Employee Performance.
Importance for Consumers
1) Facility in making Purchase.
2) Consumer Education.
3) Advertising Eliminates Unnecessary Middlemen.
4) Greater Consumer’s Surplus
5) Improvement in Quality
6) Time saving.
7) Increases Convenience.
8) Improvement in Standard of living.
Importance for Middlemen
I. Contact with the producers.
II. Help in Making sales.
III. Reduces Risk.
IV. Increase in Profit.
V. End of Unhealthy Competition.
VI. Motivation for Salesman.
Importance for Society
i. Barometer of Economic Development.
ii. Increases Employment opportunity.
iii. Quality goods at cheap prices.
iv. Fight against Social Evils.
v. Promotes Education.
vi. Changed Motivation
vii. Better Standard of living.
viii. Existence of Press
ix. Advertising Encourages Creative Arts.
x. 10. Advertising Encourages Research.
xi. 11. Advertising helps in Freedom of Political thought.
xii. 12. Advertising projects image of National Life.
Kinds of Advertising
1. Product Advertising
2. Institutional Advertising.
3. Primary demand advertising.
4. Selective or competitive advertising
5. Comparative advertising.
6. Shortage advertising.
7. Co-operative advertising.
8. Commercial advertising.
9. Non-commercial advertising.
10. Direct action advertising.
Limitations of Advertising
1. Less forceful.
2. Lack of feedback.
3. Inflexibility.
4. Low effectiveness.
Scientific Advertising
1) Targeted Advertising.
2) Proper Time of Campaign.
3) Right Media.
4) Correct Message.
5) Planned Campaign according to funds.
6) Campaign handled by experts. (Advertising Firm)
True or False
• Advertising is Paid Form. _______
• Advertising is Personal. _______
• Advertising is identifiable. _______
• Contests, samples etc. are examples of Publicity. _______
• Publicity is Paid form of Promotion. _______
Questions
• List 4 basic elements of Promotions Mix.
Answerà
• Give examples of Advertising.
Answerà
• What are Main features of Advertising?
Answerà
This Article was created for the of Education Guidance