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INTRODUCTION
Advertising is an important tool of promotion. . Advertisement is a non-personal presentation of an idea
or a product (where as personal selling or salesmanship help in personal promotional.) Advertisement
supplements personal selling to a great extent. Advertising has, acquired great importance in the modern
India characterized by tough competition in the market and fast changes in technology, and fashion and
taste customers. In this chapter, we shall study the nature, functions and media of advertisement used by
modern business firms.
Advertising is used for communicating business information to the present and prospective customers. It
usually provides information about the advertising firm, its product qualities, place of availability of its
products, etc. Advertisement is indispensable for both the sellers and the buyers. However, it is more
important for the sellers. In the modern age of large scale production, producers cannot think of pushing
sale of their products without advertising them.
What is advertising
Advertising is the dissemination of information concerning an idea, product. or service to induce action
in accordance with the intent of the advertiser. 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.”
Advertising is any paid form of non-persona: presentation and promotion of ideas, goods or services of
an identified spocsor. The message which is presented or disseminated is known as ‘advertisement'.
Features of Advertising
American Marketing Association has defined advertising as "any paid form of non-personal presentation
and promotion of ideas goods and services of an identified sponsor". This definition reveals the following
features of advertising:
3. The purpose of advertising is to promote idea about the products and service, of a business. It
is directed towards increasing the sale of the products and services of a business unit.
4. Advertisement a issued by an identified sponsor Non disclosure of the name of the sponsor in
propaganda may lead to distortion, deception and manipulation. Advertisement should disclose or
identify the sources of opinions and ideas it presents.
Achieving goal.
Public relations is an important marketing functions in the present-day business environment. The total
process of building goodwill and securing a bright public image of the company a called public relations.
It creates a favorable atmosphere for conducting business. There are four groups of public : (I) customer,
(2) shareholders (3) employees (4) the community. The marketers should have the best possible
relations with these groups.Public relation, complement advertising by creating product and service
credibility. Effective marketing communication is not without establishing and maintaining mutual
understanding between the company and its customers. The lubricant making the wheel of marketing
run smoothly is public relations. Bright image is created and maintained only by public relations. That is
why, modern business houses attach great significance to the public relations activities.
Functions of Advertising
Advertising has become an essential marketing activity in the modern era of large scale production and
serve competition in the market. It performs the following functions:
1. 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.
2. 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.
3. 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.
4. 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.
5: 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.
6. 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.
7 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.
SIGNIFICANCE OF ADVERTISING
Advertising helps in spreading information about the advertising firm, its products, qualities and place of
availability of its products, and so on. It helps to create a non-personal link between the advertiser and
the receiver of the message. The significance of advertising has increased in the modern era of large scale
production and tough competition in the market. Advertising is needed not only by the manufacturers
and traders but also for the customers and the society. The benefits of advertising to different parties are
discussed in the following paragraphs.
Benefits to Manufacturers and Traders
It pays to advertise. Advertising has become indispensable for the manufacturers and distributors
because of the following advantages:
(i) Advertising helps in introducing new products. A business enterprise can introduce itself and its
products to the public through advertising.
(ii) It can create new taste among the public and stimulate them to I purchase the new product through
effective advertisement.
(iii) Advertising assists to increase the sale of existing products by entering into new markets and
attracting new customers.
(iv) Advertising helps create steady demand of the products. For in-stance, a drink may be advertised
'during summer as a product necessary to fight tiredness caused by heat and during winter as an
essential thing to resist cold.
(v) Advertising help in meeting the forces of competition in the market-place. If a product is not
advertised continuously, the competitors may snatch its market through increased advertisement
ments. Therefore, in certain cases, advertising is a necessity to remain in the market and remind the
customer as done by soft drink companies.
(vi)Advertising is used to increase the goodwill of firm by promising good quality to the customers.
(uii) Advertisements increase the morale of the employees of the firm. The salesmen feel happier because
their task becomes easier if the product is advertised and known to the public
(viii). Advertising facilitates direct distribution of the product through the retailers. Retailers are
encouraged to purchase and sell the advertised products.
Benefits to Customers
Advertising offers the following advantages to customers
(i)Advertising helps the customers to know the the existence of various products and their prices. They
can choose from the various brands to satisfy their wants. Thus they cannot be exploited by the sellers.
(ii) Advertising educates the people about new products and their diverse uses.
(iii) Advertising increased the utility of products for many people adds to the amount of satisfaction
which they are already enjoying.
(iv) Advertising induces the manufacturers to improve the quality of their products through research and
development This ensures supply of the products of better quality to the consumers
Benefits to Society
The society at large is also benefited because of advertisement:
(i) Advertising provides employment to persons engaged in writing, designing and issuing
advertisements. Increase in employment brings additional income with the people which stimulates
more demand. Employment is further generated to meet the increased demand.
(ii) Advertising promotes the standard of living of the people by increasing the variety and quality in
consumption as a result of sustained research and development activities by the manufacturers.
Advertising educates the people about the various uses of different products and this increases their
knowledge. Advertising also helps in finding customers in the international market which is essential for
earning foreign exchange.
Advertising sustains the press, and other media. It provides, all important source of income to the press,
radio and television network. The customers are also benefited because they get newspapers and
magazines at cheaper rate. The publishers of newspapers and magazine; are benefited because of
increased circulation of their publication;. Lastly advertising also encourages commercial art.
2. Informative Advertising, Purchases of durable products are made once in s life-time. These are
often expensive, so the potential buyer requires detailed information about them e.g., TV sets,
refrigerators, air-conditioners and washing machines The manufacturers spend a lot on informative
advertising.
3. Institutional or Corporate Advertising. The main objective of this type of advertising is building
a corporate image. Corporate advertising highlights, therefore, the objectives and achievements of a
company. Big companies such as Godrej, TELCO, Reliance, JK Cement, Bomaby Dyeing, etc. resort to
this type of advertising.
The institutional advertising campaigns have the following objectives :
(i)To create a corporate personality of image.
(ii) To build a company prestige.
(iii)To emphasize company services and facilities.
(iv) To enable company salesman to see top executives of various organizations when making sales calls.
(v) To increase consumer friendliness and goodwill towards the company.
4. Financial Advertising. Financial advertising refers to advertisements issued by financial
institutions like banks, UTI, GIC. LIC and company's/corporation's sale of shares. These advertisements
provide information about investment opportunities, with its attendant risks and benefits.
5. Classified Advertising. Classified advertisement refers to the messages which are placed under
specific or particular headings and columns in newspapers and magazines e.g.,. Situations Vacant, For
Sale and Matrimonial.
6. Govt Advertising. It is conducted by Govt. DepartmentslUndertakings to promote public awareness
with a view to overcome social problems like dowry, drinking, AIDS, environmental pollution and
overpopulation. Since such advertising has a social purpose, it is also known as social advertising.
MEDIA OF ADVERTISEMENT
A manufacturer or a trader can make use of the following advertising media to spread his message to the
people : (i) Press advertising, (ii) Outdoor advertising, (iii) Film advertising, (iv) Radio advertising, (v)
Television advertising, (vi) Direct mail advertising, (vii) Display advertising, and (viii) Speciality
advertising: The merits and demerits of these media are discussed below.
Press Advertising or Print Media
Press advertising, i.e„ advertising through newspapers, magazines, journals, etc. is commonly used by
modern businessmen- It may be noted that advertising is an important source of finance for the press or
print media. Because of advertisements, the subscribers get newspapers and periodicals at subsidized
rates.
Newspaper Advertising. Newspaper reading is a common habit among most of the educated people.
Besides daily newspapers, there are bi-weekly and weekly newspapers also Newspapers reach almost
every place and are read by all kinds of people. Therefore, newspaper can be used as a medium of
advertisement with great advantage. While selecting a newspaper for this purpose, an advertiser has to
take into consideration the strength of circulation, the class of readers it serves, the geographical region
over which it is popular, and the cost of space.
Advertising through newspapers has the following merits :
(i) A newspaper has large circulation and a single advertisement in a newspaper can reach a large number
of people-
(ii) Continuous advertisement is possible because newspaper is published daily. Art advertiser can repeat
his advertisement either daily or weekly,
(iii) Newspapers provide flexibility in advertising in the sense that advertisement campaign can be
initiated and stopped quickly One day's notice is sufficient for this purpose- Similarly, advertising
message can be changed promptly whenever needed.
2. Outdoor Advertising
Outdoor advertising has gained wide popularity these days. Its purpose is to attract the attention of the
people at busy roads and markets. It includes the use of poster displays, bill board displays and electric
or electronic displays.
Poster Displays. Posters are fixed on walls of buildings, bridges, and other public places. It is also quite
common to write slogans and other message about the products in bold letters on the walls to arrange
the attention of the people even from a long distance. That is why, it is also known as `Mural Advertising'
. Mural advertising is frequently used to advertise fans, fertilizers, tonics, beauty aids and other
consumer items
Bill Board Displays. Painted or bill board displays involve the advertisements directly painted on
the boards meant for this purpose. They are quite big in size and are fixed at outstanding locations like
busy markets and crossings. They are also erected on tops of bridges and important buildings.
Electrical Displays. Electrical display involves the use of electric electronic lights or neon tubes to
attract the attention of people, particularly during night. Generally, a short message is illuminated in
tubes of different colours so that it is conspicuous and attractive. Electrical displays are fixed at heavy
traffic consumer centres.
Vehicular Displays. It has become a fashion these days to use modes of public transport for
advertising. Outdoor advertising has the following merits ,
(i) Outdoor advertising is highly flexible and is a low cost medium.
(ii) It is very useful for advertising consumer products because posters, etc. can be displayed at various
crowded centres.
(iii) Outdoor advertisement attracts quick attention and requires very less time and effort on the part of
the readers. A complete picture of the product can be shown through outdoor displays.
Out door adverting is criticized on the following grounds :
(i) It can't carry long messages as posters, hoardings, etc. are read bv the people at a glance,
(ii; It has a low retention value because people don't devote special time to read the message
(iii) It distracts the attention of the passers-by and may even c accidents on busy roads.
3. Film Advertising
Films are an important medium of advertisement. Business concerns usually get a short motion picture
prepared and distribute it to different cinema houses for displaying it before the commencement of the
regular shows or during the periods of intermission. Such films are accompanied by running
commentary to explain the features, uses and superiority of the product But film advertisement, can be
adopted only by the well-established firms. Since it involves high cost, small business firms can get
cinema slides prepared for display in the cinema halls.
The merits of film advertising are as under :
(i) Film advertisement is very effective since it combines spoken words and visual presentation of picture.
(iii It helps in selective advertisement A trader can advertise his products in the areas from where he
wants to attract the customers.
The demerits of film advertising are as under :
(i) It is usually ignored by people when they are busy in talking.
(ii)Its effectiveness is limited as only a few people are present in the hall before the start of the feature
film and during the interval
4. Radio Advertising
Radio advertisements are gaining greater popularity these days. Advertisements are broadcast from the
transmitting stations of the commercial service of All India Radio and FM Radio and picked-up by the
receiving sets owned by the public. Radio advertisements are normally broadcast along with popular
programmes of music. Even the sponsored programmes of music, interviews and plays can be broadcast
over the radio.
5. Television Advertising
Television is the fast growing medium of advertisement because Of huge expansion of electronic media
and cable network. It makes its appeal through both the eye and the ear. Products can be demonstrated
as well as explained as in film advertisement. Advertising may take the form of short commercials and
sponsored programmes.
T.V. advertising has all the merits of film advertising. It has greater effectiveness as the message is
conveyed at their homes to the people Selectivity of message can also be achieved. Commercials may be
given during that time period when the prospective buyers are supposed to watch television programmes.
T.V advertising has got all the demerits of film advertising. Television is a very costly medium of
advertisement and can be made use of by -he well established companies only. Another limitation of
television advertisement is that once it is presented, its back reference is not possible.
7. Window Display
Window display is an on sight method of advertising. Goods can be exhibited in artistically laid out.
windows at the shop fronts or at important busy centres like railway stations and bus stops. Large show
rooms are organized by big manufacturers and wholesalers in the main markets to advertise their
product; and attend to the queries of the prospective customers. The retailers also organize attractive
display of goods in the windows of their shops. Window displays are very popular with the retailers since
it helps in informing the customer. about the types of goods available with them.
The main objective of window display is to draw the attention of the public and arouse their interest in
the. products displayed. Almost all the manufacturers insist that their products should be displayed at
the retail shops. If a product is displayed properly at the point-of-purchase (FOP) by the customers, it
can attract many customers. Many people having no preference for a particular brand may discover a
particular brand quite appealing and attractive and may purchase it. Thus, window display creates the
demand for the product. Window display acts as silent salesman. In order to achieve the purpose of
window display, cleanliness and a well-furnished appearance for the window are essential. Articles
should be arranged in a systematic way and if possible price tags should also be attached with the
articles. It is better if window displays are changed regularly to make the customers look at the displays
every time they visit the shop.
8. Speciality Advertising
Many business firms (like Jiyaji Suitings, Vimal, etc.) offer speciality articles to the present and
prospective customers. These articles may be diaries, pen holders, desk trays, key chains, purses, paper
weights, cigarette cases and calendars. The name and address of the advertiser is printed in or inscribed
on the speciality items. They also bear the brand name of the firm. Since these articles are of daily use,
they have greater capacity to remind their users about the brand name of the firm offering such articles.