Function and Effects of Advertisement

Information
Advertisement supplies consumers with information about products and services. This information is
broadcast for the open market, and discusses specials, sales, and new lines of products and
services. A consumer also learns about the comparisons between features, benefits and options of
different products and services through advertisement.

Brand Identity
Brand identity is one of the biggest functions and effects of advertisement. By selling products and
services through advertisements, businesses differentiate themselves from one another. The right
advertising campaign defines a company’s unique brand, which helps consumers build emotional
relationships with that brand. This increases the likelihood that consumers will buy from that
company.

Promoting Action
Advertising’s purpose is to attract buyers through a call-to-action statement, which encourages the
customer to visit a store or website, or to contact the advertiser for more information. Advertising is
essentially an action catalyst that brings customers and products or services together.

Improving Customer Base

A business requires a constant customer base in order to remain successful. The business needs to
target its products and services toward this customer base and consistently create new products that
attract current and new customers. Advertising helps reinforce the purchasing behaviors of
customers for a particular brand, and it establishes long-term relationships with existing customers,
potential customers, vendors and stockholders.

Product Creation
Advertising, according to “The Social and Cultural Effects of Advertising” by Jeremiah O’Sullivan R.,
stimulates the development of better products, and allows consumers to have a wider variety of
products, competitive pricing, and competition entering the marketplace.

Purchase Persuasion
Powerful and captivating advertisements persuade consumers to purchase a new product, try out
services, and fulfill voids they feel are present in their lives. In fact, persuasion is one of the main
functions of advertising, which is why many firms strive to create powerful impacts that reach
customers on emotional and physical levels.

Education
Advertising serves as a form of consumer education. Not all advertisements sell a product or
service; sometimes they sell a concept. Government agencies use advertisement as a way to
educate and compel consumers to act a specific way. “The Social and Cultural Effects of
Advertising” notes that advertising is geared toward the ideas of art, religion, sexual attraction and
myth. Advertising also educates consumers on what products and services out are there, how much
they should pay, and what they can expect with certain purchases.

Previewing New Trends

Previews about the virtues of new products, services and ideas motivate consumers to obtain them because they
don't want to be left out. Advertising lets consumers in on up-and-coming trends and new markets. They offer
coupons, rebates and trial offers on new products, services or ideas to recruit new customers and induce existing
customers to try things. Advertisers preview new or improved products, services and ideas to consumers in order to
appeal to their sense of wanting to be in the know about leading edge trends. Previewing new trends is a technique
employed by advertisers that capitalizes on consumers' desires to "keep up with the Jones" by owning the latest and
greatest product, service or idea.

Demand
The demand generated by advertising, public relations, and sales promotion "pulls" the goods or services through
channels of distribution, notes "Reference for Business." One of the powerful functions of advertising is to generate
consumer demand for specific products, services and ideas through ad campaigns that target the audiences that are
most likely to buy them." Products, services and concepts are sold in volume, according to the consumer demand for
them.

Customer Base
Consistent quality advertising increases consumer loyalty for a product, service or idea. Advertising seeks to
maintain the current customer base by reinforcing purchasing behavior with additional information about the
benefits of brands. The goal of advertising is to build and reinforce relationships with customers, prospects, retailers
and important stakeholders.

Pricing
Advertising displays consumer goods with competitive prices relative to the current market, thus educating
consumers about what things should cost. Advertising lets you know what the competition is doing, when the next
sale is, and how you can receive the latest coupon or rebate and seeks to assure you that you are receiving the best
value for your money.
Characteristics of an
Effective Advertising
Posted on August 28, 2013

Advertising is important tool used by the manufacturer for launching the product or service in the
market. Similarly it is also aimed at customer’s education as regards the safe mode of handling the
products. It also declares the various distinctive, added features to the product making it more
consumer friendly.

Advertising is done through various medias like Newspapers, TV Programs, Magazines, Display of
Hoardings or Banners on Streets and National Highways. In present world even it is done with
various films, videos posted on various marketing sites or other popular websites on internet.

However the effective advertisement should possess following features.

1. Maximum Reach – Advertisement should be done in such a way and through such a medium that
it reaches the maximum number of people who may be probable customers at one time. Therefore
Hoarding on National Highways, or publicity on Railway trains or Public Transport Buses is good
media for this purpose.
2. It should be economical – The concern of economy is present in every kind of expenditure in the
business and advertisement is also also no exception to the rule. TheBudget spent on
advertisements should prove economical with its wide spread message generating good results in the
form of more and more demand and sales. Optimum promotion is possible only by economical use of
the resources meant for it.
3. Attract the Customers – The wording, phrases used, ideas displaying the product or service must
be able to catch the attention of public and attract as many customers as possible at every
time. Unless this requirement is fulfilled it may not be getting translated into enquiry from people
resulting in actual sales.
4. It should be able to persuade people– One of the important aim of advertising is to make people
believe in what you say or convey through advertisement. It must have persuasive effect, generating
anxiousness in the mind of customer to view, try the use of the product displayed by you through
advertisement. It must successfully convince the prospects about its fine features and utility. It
should be capable of convince the peoplethrough statistics, or experiences narrated by satisfied
customers or getting recognition in the form of some award for its best features.
5. It must remind the customers about its constant use for better life style or healthy life style etc. It
must emphasize the concern for customers well being all the time.
6. It must be trust worthy– The advertisement must speak only about the truth of the product . It
should not create wrong, irrelevant or totally different picture of the product that it is in reality. It
would amount to cheating or deceiving customers. The aggrieved customers who do not find the
goods up to the mark as displayed in advertisement may even drag the company to court of law for
losses sustained and also for act of deceiving.
7. It must follow the standard advertising practices – While advertisement care must be taken to
see that it is decent in every respect. It does not cause any kind of social harm or results in outburst
of sentiments against the product or the company or the way of its publicity. Ethical Standards
established in the line should be followed.

7 Types of Ad Strategies Every

Copywriter Should Know
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image: http://1.gravatar.com/avatar/7aa9d120768cac8f0f04f99c5f4e8cad?s=48&d=mm&r=g

Ray Wang

NOVEMBER 4, 2014 CONTENT MARKETING 0

Advertisers use various advertising strategies to deliver unique product proposition and increase
brand awareness and sales.
Here are seven common ad strategies advertisers use that every copywriter should know:

1. “Before and After” Strategy. Use this strategy to show life without the product and then life with
the product. Generally, you’d show a negative visual image of life before the product and then a
positive one after. This technique helps you show the value and importance of your product.

image: http://www.business2community.com/wp-content/uploads/2014/11/before-and-afte-rad-
300x195.png

(Advertisement by Laubach Literacy of Canada)

Recommended for YouWebcast: Relationship Marketing: How to Build a Relationship that Converts to Sales

2. “Advice” Strategy. This is a lateral, “we can help you” ad strategy. Use it to express the benefit
of your product or service. For example, you can emphasize that everyone needs to consume
protein everyday so you can sell more milk. (E.g Got Milk?)

image: http://www.business2community.com/wp-content/uploads/2014/11/Wolverine-got-milk-
ad_large-232x300.jpg
(Advertisement by Got Milk?)

3. “Empathy” Strategy. Use this strategy to develop the audience’s empathy towards a targeted
audience. For example, a non-profit organization can show images of ill children to make people feel
sympathetic towards the kids. This approach can help the non-profit organization raise funds.

image: http://www.business2community.com/wp-content/uploads/2014/11/empathy-strategy.png

(Advertisement by charity:water)

4. “Testimonial” Strategy. This approach leverages a famous or non-famous consumer to support

the quality or benefits of a brand’s product. For example, a professional basketball player can wear a
pair of Nike basketball shoes to support the quality of Nike basketball shoes.
image: http://www.business2community.com/wp-content/uploads/2014/11/testimonial-ad-
300x225.jpg

(Advertisement by Nike featuring Kobe Bryant)

5. “Demonstration” Strategy. This type of ad strategy focuses solely on ways to explicitly show the
product benefit via a “demonstration.” For example, when Jean-Claude Van Damme performed a
split on two reversing Volvo trucks, he was demonstrating the stability and reliability of Volvo trucks.

image: http://www.business2community.com/wp-content/uploads/2014/11/Jean-Claude-Van-
Damme-300x199.jpg

(Jean-Claude Van Damme doing a split for a Volvo commercial)

6. “Competitive” or “Comparison” Strategy. Use this strategy to make either an overt or subtle
reference to any differences between your product and a competitor’s product. The classic example
is the Mac vs PC commercial where Apple directly compared Mac’s features against PC’s to
explicitly show the superiority of Mac computers.

image: http://www.business2community.com/wp-content/uploads/2014/11/PCvsMacA01-
300x266.jpg
(Mac VS PC advertisement)

7. “Negative to Positive” Strategy. Use this strategy to turn a boring or negative perception about
a product, brand, or market into a positive one by adding an extra or clever argument. For example,
VW’s famous “Think Small” ad turned the common American belief that bigger is better, by showing
positive reasons for owning a small car, such as smaller bills and parking spaces.

Evaluation of Advertisement

Monitoring Sales Figures

This strategy involves tracking sales from a period before the current
advertising was used, and then comparing those figures to sales made during
the time the advertising is active. One pitfall of this strategy is not choosing a
representative time period. One month's worth of sales figures may not be
enough to fully gauge the effectiveness of an ad. Ideally, the business owner
could compare figures from long periods of sales to exclude changes due to
factors other than advertising, such as seasonal fluctuations and holiday
sales.

Running a Coupon

One satisfyingly concrete way of tracking how many customers were exposed
to advertising is to use coupons. These coupons, which will typically provide a
discount of some kind or some other incentive to customers to use them, can
be easily tabulated, providing businesses with tangible evidence of the
advertising campaign's level of effectiveness. Such measurements, however,
are limited to print campaigns. Another coupon-type offer, effective across
 media types, is to encourage customers to mention their exposure to an ad in
return for a bonus. For example, a radio ad might include the sentence,
"Mention this ad for an additional 5 percent off your purchase!"

Surveying Customers

Perhaps the most accurate and easiest method of tracking the effectiveness
of a media campaign is simply asking customers how they were directed to
you. You can ask if a customer saw a particular ad, or more generally ask how
they came to know about the shop or service. Consumers are generally
pleased to be asked for their input, and they can give you firsthand accounts
of how advertising is affecting your business.

Internet Ad Tracking

One of the unique aspects to using the Internet for advertising is the fact that it
is easier to track the number of people who actually see and register the ad.
Because of the interactive nature of the Internet and the methods used to
advertise online, a company can actually track the number of people who both
see their ad and take some resulting action, like clicking on a hypertext link.
However, knowing how many people have seen an ad does not automatically
translate to knowing what percentage of new sales are the result of this
exposure. Assessing the value of this Internet exposure must be done in the
same ways that advertising generally is assessed, through careful tracking
and monitoring.

How to Manage an Ad Agency

1
Develop a strong mission statement.
 Manage an advertising agency using a strong mission statement that stresses the
importance of excellence and meeting client goals according to industry standards and
trends. Emphasize this mission to employees so it influences every task they complete.

2
Focus on client satisfaction.
 An advertising agency can't be successful without satisfied clients, so maintain this as
your primary management goal. Meeting the needs of individual clients requires you
and your staff to pay attention to client concerns and give each project individual
attention according to the size and nature of the project.

3
Educate employees continuously.
 Manage ad agency staff successfully by encouraging them to continuously expand their
skill set within the industry by taking courses and completing further advertising
education.
 Sign up for regular seminar sessions, like the ones offered by Fortune and Forbes, that
offer news and education about advertising industry trends and changes.

 4
 Recruit new talent.

6
Consider freelancers.
 Freelance advertising designers can bring new talent to your agency for specific
projects. Working with freelance staff can open your agency up to dealing with new
markets and clients.

7
Stay informed about the industry.
 Sign up for regular newsletters that contain information about news and trends related
to the advertising industry and ad agency management. Educating yourself will equip
you with the knowledge you need to effectively manage your team.

8
Establish budget guidelines.
 Keep ad agency projects within a budget that is practical for you and still meets the
needs of your client. Meet with agency accounting staff regularly to assess the firm's
spending and correct any overspending.
 9
Meet with staff regularly.
 Hold meetings as a group or meet with individual departments within the agency on a
regular basis. This will allow you to brief the staff on news, discuss any interoffice issues
or problems and help you establish your position as a manager.

10
Focus on your clients.
 Choose one market or niche group of clients to focus on. Establishing a successful
reputation for your agency in 1 or 2 key markets will allow you to expand into larger
markets and attract clients with bigger advertising projects.

Ethics of Ad
Truth in Advertising
The Federal Trade Commission Act set forth requirements for truth in advertising and created the FTC to enforce
the provisions of the act. The Bureau of Consumer Protection's Business Bureau notes that advertisements in the
U.S. must by truthful, not deceptive and not unfair. Advertisers must also have evidence available to back up claims
they make.

The FTC defines deceitful statements as those that are likely to mislead consumers who act reasonably under normal
circumstances and that are likely to affect consumers' purchase decisions. The FTC defines unfair advertisements as
those that are likely to cause substantial, unavoidable injury when using a product, unless the injury is outweighed
by the provable benefits.

Advertising to Children
Although the FTC places special emphasis on truth-in-advertising laws when applied to children, the law allows for
a great deal of unethical behavior here. Former FTC commissioner Roscoe B. Starek states that children are not
likely to understand exaggerated statements or images, citing the example that children may believe a toy helicopter
to come fully assembled when in fact assembly is required.

This interpretation of the law completely ignores the unethical ramifications of purely legal advertising, such as
building brand loyalty in children before they even understand what a brand is, encouraging children to develop
negative self images or getting children hooked on products that can impede social development. The best way to act
ethically in this area is to advertise to parents, not children.

Related Reading: Legal & Ethical Issues With Manufacturing Companies

Advertising Harmful Products
Different countries look differently on the advertising of vice products and services, striking a balance between
placing personal responsibility on citizens and regulating what citizens are allowed to indulge in. The United States
 highly regulates some forms of vice, prohibits others and gives still others a free hand. For example, cigarette
advertising is only permitted on specific media, excluding television and radio, while alcohol advertising is allowed
on all media.

Sales Promotion Strategies

by Thomas Ferraioli, Demand Media

A good sales strategy translates into income growth.

Related Articles
 Sales Promotion Programs
 Components of Sales Promotion Stratgies Used by Retailers
 The Methodology of Sales Promotion
 How to Design a Sales Promotion Strategy
 Direct Sales Vs. Promotion
 The Impact of Advertising & Sales Promotion in Revenue

Promoting your business is an important part of your daily activities. After all, if customers are not showing up, then
you can't make a sale. To promote your business in an effective way, consider using the tried and true sales
strategies of "Push" and "Pull." Whether you use coupons, giveaways or incentives for your best salesperson, you
will see your bottom line increase.

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Push Sales Strategy
The push sales strategy emanates from manufacturers who "push" their product through the supply chain to the
consumer. Incentives are offered that give each middle-carrier motivation to convince the next person to buy the
product. Traditionally, this technique includes premiums, wholesale discounts and buy-back guarantees.
This technique is not only for the big players who vie to get their product carried by other retailers. If you have a
small retail outlet or own a service-providing company, you can still benefit from this strategy. Offering a bonus to
your staff for selling the product or service of-the-week is a "push" technique. Give customers a free item for
referring a friend to your business.

Pull Sales Strategy

The "pull" strategy works by getting the end consumer interested in the product to create a demand. When the
demand is there, the supply chain pulls it through, as retailers ask suppliers and distributors, who in turn ask the
manufacturer about the product. If your business has the resources, you can launch a campaign to get end consumers
excited about your products. Television, print and electronic advertising options lend themselves to the pull strategy.

Related Reading: The Methodology of Sales Promotion

Combining Push and Pull
To bolster sales, try combining the two systems. For instance, offer your customers coupons, free gifts or a frequent
customer loyalty incentive to drive traffic to your business. These activities fall under the "pull" strategy.
At the same time, offer your sales team an incentive such as a vacation contest, extra commission or a better parking
space for selling a particular product or moving a certain volume of merchandise. This falls under the "push"
strategy.

Role and imp of ad in our life

Nowadays, advertisement is the tool which many companies and enterprises use to inform
prospective customers about their products and services. Tough advertisement agencies often
present only the best side of product; I think that advertisement tells us about new items that
may be good for our lives.
First, advertisement educates 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 adopting new ways of life and giving-up old habits. It has contributed to the
betterment of the standard of living of the society. As an example, pharmaceutical companies
use advertisement to present their new drugs. Those drugs which are the result of new
researches are more effective to cure diseases like malaria and so on.
Second, advertisement facilitates consumer choice because of the wide information he has
about products. It enables consumers to purchase goods as per their budget requirement and
choice. For example to choose between the wide ranges of communication network available,
customers refer to the price and quality given in advertisements.
Finally, advertisement informs the buyer about the benefits they would get when they purchase
a particular product. The benefit can be a discount on the price of goods. It helps buyers save
money for other uses. The benefit can also be the more effectiveness of a product compare to
others. In short, advertisement is a good way to present new devices and items from which
buyers can benefit. It also helps us in making responsible choices. Therefore buyers obtain
good quality products and save money.