Advertising

1. ADVERTISING

2. MEANING
Advertising is a means of
communication with the users of a
product or service. Advertisements are
messages paid for by those who send
them and are intended to inform or
influence people who receive them, as
defined by the Advertising Association
of the UK.

3. DEFINITION
According to Philip Kotler define as
“Advertising is any paid form of non-
personal presentation and promotion of
goods, services, or ideas by an identified
sponsor.”

4. IMPORTANCE OF ADVERTISING
Advertising plays a very important role in today’s
age of competition. Advertising is one thing
which has become a necessity for everybody in
today’s day to day life, be it the producer, the
traders, or the customer. Advertising is an
important part. Lets have a look on how and
where is advertising important:

5. Advertising is important for the
customers
Just imagine television or a
newspaper or a radio channel
without an advertisement! No, no
one can any day imagine this.
Advertising plays a very important
role in customers life.

6. •If the product is not advertised, no customer will come to know what products
are available and will not buy the product even if the product was for their
benefit.
• One more thing is that advertising helps people find the
best products for themselves, their kids, and their family.
•When they come to know about the range of products,
they are able to compare the products and buy so that
they get what they desire after spending their valuable
money.
•Thus, advertising is important for the customers.
•Customers are the people who buy the product only after they
are made aware of the products available in the market.

7. Advertising is important for the seller and companies
producing the products
• If any company wants to introduce or launch a new product in the market,
advertising will make a ground for the product.
•Advertising helps producers or the companies to know
their competitors and plan accordingly to meet up the level
of competition.
•Advertising helps increasing sales.

8. •Advertising helps creating goodwill for the company and
gains customer loyalty after reaching a mature age.
•The demand for the product keeps on coming with
the help of advertising and demand and supply
become a never ending process.
•Advertising helps making people aware of the new
product so that the consumers come and try the product.

9. Advertising is important for the society
 Advertising helps educating people .
 There are Some social issues also which advertising deals with like child
labour,liquor consumption,girl child killing ,somking, family planning education
etc..
 Thus, advertising palys a very important role in society.

10. Objectives of Advertising
 Four main Objectives of advertising are:
 Trial
 Continuity
 Brand switch
 Switching back

11. Let’s take a look on these various types of objectives
TRIAL:
•The companies which are in their introduction stage generally work for this objective.
•The trial objective is the one which involves convincing the
customers to buy the new product introduced in the market.
•Here, the advertisers use flashy and attractive ads to make
customers take a look on the products and purchase for
trials.

12. Continuity
•This objective is concerned about keeping the existing
customers to stick on to the product.
•The advertisers here generally keep on bringing
something new in the product and the advertisement so
that the existing customers keep buying their products.

13. Brand switch
•This objective is basically for those companies who want
to attract the customers of the competitors.
•Here, the advertisers try to convince the customers to
switch from the existing brand they are using to their
product.
Switching back:
•This objective is for the companies who want their
previous customers back, who have switched to their
competitors.

14. •The advertisers use different ways to attract the
customers back like discount sale, new advertise, some
reworking done on packaging, etc.
•Basically, advertising is a very artistic way of
communicating with the customers.
•The main characteristics one should have to get on their
objectives are great communication skills and very good
convincing power.

15. Steps in Advertising Process
The following are the steps involved in the process of
advertising:
Step 1 - Briefing:
•The advertiser needs to brief about the product or the
service which has to be advertised and doing the SWOT
analysis of the company and the product.
Step 2 - Knowing the Objective:
•One should first know the objective or the purpose of
advertising. i.e. what message is to be delivered to the
audience?

16. Step 3 – Research:
•This step involves finding out the market behavior,
knowing the competitors, what type of advertising they are
using, what is the response of the consumers, availability
of the resources needed in the process, etc.
Step 4 - Target Audience:
•The next step is to identify the target consumers most
likely to buy the product.
•The target should be appropriately identified without any
confusion.
•For e.g. if the product is a health drink for growing kids,
then the target customers will be the parents who are
going to buy it and not the kids who are going to drink it.

17. Step 5 - Media Selection:
•Now that the target audience is identified, one should
select an appropriate media for advertising so that the
customers who are to be informed about the product and
are willing to buy are successfully reached.
Step 6 - Setting the Budget:
•Then the advertising budget has to be planned so that
there is no short of funds or excess of funds during the
process of advertising and also there are no losses to the
company.
Step 7 - Designing and Creating the Ad:
•First the design that is the outline of ad on papers is
made by the copywriters of the agency, then the actual
creation of ad is done with help of the art directors and the
creative personnel of the agency.

18. Step 8 - Perfection:
•Then the created ad is re-examined and the ad is
redefined to make it perfect to enter the market
Step 9 – Place and Time of Ad:
•The next step is to decide where and when the ad will be
shown.
•The place will be decided according to the target
customers where the ad is most visible clearly to them.
• The finalization of time on which the ad will be telecasted
or shown on the selected media will be done by the traffic
department of the agency.
Step 10 - Execution:
•Finally the advertise is released with perfect creation,
perfect placement and perfect timing in the market.

19. Step 11 - Performance:
• The last step is to judge the performance of the ad in
terms of the response from the customers, whether they
are satisfied with the ad and the product, did the ad
reached all the targeted people, was the advertise
capable enough to compete with the other players, etc.
• Every point is studied properly and changes are made, if
any.
• If these steps are followed properly then there has to be
a successful beginning for the product in the market.

20. BENEFITS OF ADVERTISING
 Advertising is a huge industry. It has created opportunities for various domains. ​The​ benefits of
advertising ​include:
 Launch of a new product:
Advertising plays very significant role in the introduction of a new product in the market.
It stimulates the people to buy or know about a product.
 Increases markets:
It helps the manufacturers to expand their markets.
It opens the horizons for new markets for the product or service.

21. •Mass sales:
•Advertising facilitates mass production to goods that
ultimately results in a raised volume of sales.
•Keeps the competitive spirit alive:
•Advertising helps in keeping the competition and the
competitors at bay.
•It keeps a regular check on the performance of your
brand or product.
•Creates goodwill:
•Advertising builds goodwill of a brand.
•Advertising is a crucial source through which the
audience gets to know about a brand or product.
• If a company is spending on advertisement, it means
they care to make their consumers aware.
• This increases the goodwill of a brand.

22. •Creative minds:
•Every place has a rich pool of strategic and creative
minds, media and professionals.
• And every advertising organization possesses such
talents.
•Consumer awareness:
•Advertising is educational and dynamic in nature.
•It educates the customers about the new products and
their diversifications.
•Direct link:
•Advertising aims at establishing a direct link between the
manufacturer and the consumer.
• This rules out the possibility for a middlemen to be
involved in between.

23. •Creates employment:
•Advertising provides and creates more employment
opportunitie for many talented people in the industry.
•The experience of the advanced nations shows that
advertising is greatly responsible for raising the living
standards of the people.
• In the words of Winston Churchill “advertising
nourishes the consuming power of men and creates
wants for​ a better ​​standard of living.”
•By bringing to the knowledge of the consumers, ​the
choices available to them, advertising has transformed the
world.

24. DISADVANTAGES OF ADVERTISING
Adds to Costs:
•An organisation has to spend large amount on
advertising. It increases the cost of the products.
•To meet this expenditure, price of the product is raised.
•No manufacturer pays for the advertising expenses out
of his pocket.
•Advertising, therefore, leads to unnecessary rise in prices.
•In this reference it is said that advertising costs are
passed on to the consumers in the form of high prices.

25. Undermines Social Values:
 Advertisement is a sort of day-dreaming for the people.
 These days it is taking the people away from reality and into the realm of
artificiality.
 Through its medium people get information about new products.
 Only very few products are of any use for them.
 The brilliance of new products really gets on their nerves.
 They want to buy them but have no resources at their command.
 Consequently, they start feeling upset with their present status.
 Taking it as a social evil, it can be said that advertisement undermines social
values.

26. Confuses the Buyers:
 Many a time distorted version of reality is shown in the advertising.
 Believing in advertising, consumers buy the product.
 On its use, they feel cheated.
 They come to realise later that the information given in the advertisement was
something else whereas the actual product was quite different from it.
 Thus, people lose confidence in advertising because of wrong presentation.
 In this reference it is said that advertising confuses rather than helps.

27. Encourages Sale of Inferior
Products:
 Every manufacturer projects his product as superior one in the advertisement.
 Therefore, the buyer is unable to decide as to which product is really good.
 Consequently, it is difficult to get good quality product even after paying a
handsome price for it.
 If a seller gets good price for some inferior product, it becomes a habit with him.
 It affects other sellers also.
 Therefore, it is said that advertisement encourages the sale of inferior products.

28. Some Advertisement is in Bad Taste:
 Many times, foul language and objectionable pictures are used in advertising in
order to attract a particular class.
 They may be insulting to a particular class.
 It causes decay of social values.
 Such kinds of advertising are generally opposed by the people as it hurts their
feelings.
 nI this reference it is said that some advertisements are in bad tastes.

29. ADVERTISING TOOLS OF
COMMUNICATION:
 Advertising has evolved since the a industrial revolution as a tools of marketing
communication.
 It transmit the marketing message from the markets to a group of individuals.
 The markets pay for sponsoring the advertising the activity.
 Also advertising is directed as a mass audience.
 Though markets use advertising to promote a product and services it is a
communication tool.
 The advertiser is the source
 The message is cubed through the media .
 The message is decoded by the target audience who received it.
 Inthis sense an Advertising is the Marketing Communication.As it is received by longer
number of audience through mass media it is called Mass Communication.

30. Types of advertising
 NEWSPAPER
 MAGAZINE
 RADIO
 TELEVISION
 DIRECTORIES
 OUTDOOR AND TRANSIT
 DIRECT MAIL, CATALOGUES AND LEAFLETS.
 ONLINE

31. NEWSPAPER
 Newspaper advertising can promote your business to a wide range of customers.
 Display advertisements are placed throughout the paper, while classified listings
are under subject headings in a specific section.
 You may find that a combination of advertising in your state/metropolitan
newspaper and your local paper gives you the best results.

32. Magazine
 Advertising in a specialist magazine can reach your target market quickly and
easily.
 Readers (your potential customers) tend to read magazines at their leisure and
keep them for longer, giving your advertisement multiple chances to attract
attention.
 Magazines generally serve consumers (by interest group e.g. women) and trade
(industry/business type e.g. hospitality).
 If your products need to be displayed in colour then glossy advertisements in a
magazine can be ideal — although they are generally more expensive than
newspaper advertisements.
 Magazines do not usually serve a small area such as a specific town.
 If your target market is only a small percentage of the circulation, then advertising
may not be cost-effective.

33. Radio
 Advertising on the radio is a great way to reach your target audience.
 If your target market listens to a particular station, then regular advertising can attract new customers.
 Howeverr, sound has its limitations.
 Listeners can find it difficult to remember what they have heard and sometimes the impact of radio
advertising is lost.
 The best way to overcome this is to repeat your message regularly — which increases your costs
significantly.
 If you cannot afford to play your advertisement regularly, you may find that radio advertising does not
generate strong results.

34. Television
 Television has an extensive reach and advertising this way is ideal if you cater to a large market in
a large area.
 Television advertisements have the advantage of sight, sound, movement and colour to persuade a
customer to buy from you.
 They are particularly useful if you need to demonstrate how your product or service works.
 Producing a television advertisement and then buying an advertising slot is generally expensive.
 Advertising is sold in units (e.g. 20, 30, 60 seconds) and costs vary according to:
 the time slot
 the television program
 whether it is metro or regional
 if you want to buy spots on multiple networks.

35. Directories
 Directories list businesses by name or category (e.g. Yellow Pages phone
directories).
 Customers who refer to directories have often already made up their mind to buy -
they just need to decide who to buy from.
 The major advantage of online directories over print directories is that if you
change your business name, address or phone number, you can easily keep it up
to date in the directory.
 You can also add new services or information about your business.
 If your target market uses print and online directories, it may be useful to advertise
in both, although print directories are being used less.

36. Outdoor and transit
 There are many ways to advertise outside and on-the-go.
 Outdoor billboards can be signs by the road or hoardings at sport stadiums.
 Transit advertising can be posters on buses, taxis and bicycles.
 Large billboards can get your message across with a big impact.
 If the same customers pass your billboard every day as they travel to work, you are
likely to be the first business they think of when they want to buy a product.
 Even the largest of billboards usually contain a limited amount of information;
 otherwise, they can be difficult to read.
 Including your website address makes it easy for customers to follow up and find out
more about your business.
 Outdoor advertising can be very expensive especially for prime locations and supersite
billboards.

37. Direct mail, catalogues and leaflets
 Direct mail means writing to customers directly.
 The more precise your mailing list or distribution area, the more of your target
market you will reach.
 A direct mail approach is more personal, as you can select your audience and plan
the timing to suit your business.
 A cost effective form of direct mail is to send your newsletters or flyers
electronically to an email database. Find out more about direct mail.
 Catalogues, brochures and leaflets can also be distributed to your target area.
 Including a brochure with your direct mail is a great way to give an interested
customer more information about your products and services. l

38. Online
 Being on the internet can be a cost-effective way to attract new customers.
 You can reach a global audience at a low cost.
 Many customers research businesses online before deciding whom to buy from.
 A well-designed website can entice customers to buy from you.
 There are a number of ways you can promote your business online via paid
advertising or to improve your search engine rankings.
 Other ways to advertise your business online include promoting your products or
services on social media sites, blogs and search engines and other websites that
your target audience visits