Back to: Marketing SS1
MEANING OF ADVERTISING
Advertising is any paid form of non-personal pre sentation and promotion of ideas, goods or ser vice by an identified sponsor. OR It is the dis- E semination of messages through different media that are paid for in order to build brand prefer ence and educate target audience.
Advertising is any form of non-personal communication through the mass media that is paid for by an identified sponsor. It is a kind of media used to inform people about an idea, products, or service.
Advertising can also be defined as “any form of paid non-personal presentation of ideas, goods or services for the purpose of inducing people to buy.”
Advertising messages are usually paid for by sponsors and viewed via various traditional media; including mass media such as newspaper, magazines, television, radio advertisement, outdoor advertising or direct
ERTISING
mail; or new media such as blogs, websites or text messages.
The message which is presented or disseminated is called advertisement. In the present-day marketing activities, hardly is there any business in the modern world which does not advertise. Advertising has become an essential element of the corporate world and hence, companies allot a considerable amount of resources towards their advertising budget.
The main features of advertisement include the following:
1. It is directed towards increasing the sales
2. Advertising is a paid form of publicity.
3. It is non-personal. They are directed at a mass audience and not at the individual as in the case of personal selling.
4. Advertisements are identifiable with their sponsors or originators which is not always the case with publicity or propaganda.
OBJECTIVES/FUNCTIONS OF ADVERTISING
The purpose of advertising is nothing but to sell something-a product, a service or an idea. The real objective of advertising is effective communication between producers and consumers. The following are the main objectives of advertising:
1. Preparing ground for new product: A new product needs because potential customers have never used such product before and the advertisement prepare a ground for that new product.
2. Creation of demand: The main objective of the advertisement is to create a favourable climate for 6. maintaining and improving sales. Customers are to be reminded about the product and the brand. It may induce new customers to buy the product by informing them about its qualities, since it is possible that some of the customers may change their brands.
3. Facing the competition: Another important objective of the advertisement is to face the competition. Under competitive conditions, advertisement helps to build up brand image and brand loyalty and when customers have Bb developed brand loyalty, it becomes difficult for the middlemen to change it.
4. Creating or enhancing good will: Large-scale advertising is often Sundertaken with the objective of creating ovitost or enhancing the goodwill of the bas advertising company. This, in turn, viso increases the market receptiveness of the company’s product and helps the salesman to win customers easily.
5. Informing the changes to the Customers: Whenever changes are made in the prices, channels Of distribution or in the product by way of any improvement in quality, size, weight brand, packaging, etc., they must be passed to the public by the producer through advertisement.
6. Neutralising competitor’s adver tising: Advertising is unavoidable to compete with or neutralise competitor’s advertising. When competitors are (vi adopting intensive advertising as their promotional strategy, it is reasonable to follow similar practices to neutralise their effects. In such cases, it is essential for the manufacturer to create a different image for his product.
7. Barring New Entrants: From the advertiser’s point of view, a strongly built image through long advertising helps to keep new entrants away. The advertisement builds up a certain A – monopoly for the product in which new entrants find it difficult to enter.
In short, advertising aims at benefiting g producer, educating the consumer and supplementing the salesman. Above all, all it is a link between the producer and the consumer.
Summary of Objectives of Advertising
(1) To inform potential customers of a new or existing product or service or an idea.
(ii) To educate new uses of an existing product.
(iii) To give information on current prices and special discounts. (iii)
(iv) To remind customers of an existing product in order to maintain brand loy alty against competing product.
(v) ou To give information about the desirabl qualities of a product.
(vi) To give reasons why dealers shoul stock the products.
(vii) To provide technical information abo a particular product mobbin
(viii) To persuade customers to buy the pro uct offered as the best quality of oth product options.
BENEFITS OR IMPORTANC OR ADVANTAGES ADVERTISEMENT
Advertising broadens the knowledge of the consumers. With the aid of advertising, consumers find and buy necessary products without much waste of time. This speeds up the sales of commodities, increases the efficiency of labour in distribution, and diminishes the costs of selling. It is an accepted fact that without market stimulus of heavy advertising, consumers might have waited another 60years for the product evaluation that took place in less than 10years. It took over 60 years from the invention of the safety razor before the first acceptable Stainless steel blades appeared in the market. These words are more than enough to testify the potentialities of advertising in the field of modern marketing system. The main benefits of advertising are as follows:
Benefits to Manufacturers
1. It increases sales volume by creating attraction towards the product.
2. It helps easy introduction of new products into the markets by the same manufacturer.
3. It helps to create an image and reputation not only of the products but also of the producer or advertiser. In this way, it creates goodwill for the manufacturer.
4. In retail price, maintenance is also possible by advertising where price appeal is the promotional strategy.
5. It helps to establish a direct contact between manufacturers and consumers.
6. It helps to smoothen the demand for the product. It saves the product from seasonal fluctuations by discovering new and new usage of the product.
7. It creates a highly responsive market and thereby quickens the turnover that results in lower inventory.
8. Selling cost per unit is reduced because of increased sale volume. Consequently, product overheads are also reduced due to mass production and sale.
9. Advertising gives the employees a feeling of pride in their jobs and to be in the service of such a concerned organisation. It thus inspires the executives and workers to improve their efficiency.
10. Advertising is necessary to meet up with the competition in the market and to survive it.
Benefits to Wholesalers and Retailers
1. Easy sale of the products is possible since consumers are aware of the product and its quality.
2. It increases the rate of the turn-over of the stock because demand is already created by advertisement.
3. It supplements the selling activities.
4. The reputation created is shared by the wholesalers and retailers alike because they do not need to spend anything since advertisement has already advertised the product.
5. It ensures more economical selling because selling overheads are reduced.
6. It enables them to have product information.
Benefits to Consumers
1. Advertising stresses quality and very often prices. This forms an indirect guarantee to the consumers of the quality and price. Further large-scale production assumed by advertising enables the seller to sell the product at a lower cost.
2. Advertising helps in eliminating the middlemen by establishing direct contacts between producers and consumers. It results in cheaper goods.
3. It helps them to know where and when the products are available. This reduces the time they spent in shopping.
4. It provides an opportunity for the customers to compare the merits and demerits of various substitutes.
5. This is perhaps the only medium through which consumers could know the varied and new uses of the product.
6. Modern advertisings are highly informative.
School Owner? Looking for ready-made content and tools to save time and grow easily? Book a free demo session nowGet more class notes, videos, homework help, exam practice on Android [DOWNLOAD]
Get more class notes, videos, homework help, exam practice on iPhone [DOWNLOAD]