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MARKETING MANAGEMENT
PRESENTATION
COURSE INSTRUCTOR
MAM SHUMAILA DELAWAR
GROUP MEMBERS
MUHAMMAD NASIR KHAN
QAMAR SAJID
WAQAR AMJAD
MUHAMMAD RAMZAN
MUHSIN FAYAZ
Topic:
Advertisement and cost of
product
MAJOR COVERING AREAS
• Advertisement
• Advertisement and cost of Products
ADVERTISEMENT
1.Introduction
2.History
3.Classification
4.Purposes
5.Theory
INTRODUCTION TO ADVERTISING
Advertising
It is a marketing communication that employs
an openly sponsored, non-personal message to
promote or sell a product, service or idea.
THE ACTIVITIES EXCLUDED FROM ADVERTISING ARE
THE OFFERING OF PREMIUMS TO STIMULATE THE S
ALE OF PRODUCTS;
THE USE OF EXHIBITIONS AND DEMONSTRATIONS A
T FAIRS, SHOW AND CONVENTION
THE USE OF SAMPLES AND ACTIVITIES, INVOLVING N
EWS RELEASES AND THE ACTIVITIES OF PERSONAL
SELLING FORCES;
THE PAYMENT OF ADVERTISING ALLOWANCES WHIC
H ARE NOT USED FOR ADVERTISING;
THE ENTERTAINMENT OF CUSTOM
EXCEPTION
Advertising is differentiated from public relations
in that an advertiser pays for and has control
over the message.
It differs from personal selling in that the
message is non-personal, i.e., not directed to a
particular individual.
TYPES
1. Commercial
Often seek to generate increased consumption of their products or
services through “branding”, which associates a product name or image
with certain qualities in the minds of consumers.
2 Direct response
Ads that intend to elicit an immediate sale are known as direct-response
advertising.
3 Non-commercial entities
That advertise more than consumer products or services include political
parties, interest groups, religious organizations and governmental
agencies.
4 Non-profitt organization
It may use free modes of persuasion, such as a public service
announcement.
HISTORY
Early Stages
• Egyptians used papyrus to make sales messages and wall posters.
• Commercial messages and political campaign displays have been found in the ruins
of Pompeii and ancient Arabia.
• Lost and found advertising on papyrus was common in ancient Greece and ancient Rome.
• Wall or rock painting for commercial advertising is another manifestation of an ancient
advertising form, which is present to this day in many parts of Asia, Africa, and South America.
• The tradition of wall painting can be traced back to Indian rock art paintings that date back to
4000 BC.
• In ancient China, the earliest advertising known was oral, as
recorded in the Classic of Poetry (11th to 7th centuries BC) of
bamboo flutes played to sell confectionery.
• Advertisement usually takes in the form of calligraphic signboards
and inked papers.
• A copper printing plate dated back to the Song dynasty used to print
posters in the form of a square sheet of paper with a rabbit logo with
"Jinan Liu's Fine Needle Shop" and "We buy high-quality steel rods
and make fine-quality needles, to be ready for use at home in no
time" written above is considered the world's earliest identified
printed advertising medium.
18th century
In the 18th century advertisements started to appear in weekly
newspapers in England. These early print advertisements were used
mainly to promote books and newspapers, which became increasingly
affordable with advances in the printing press; and medicines, which
were increasingly sought after. However, false advertising and so-called
"quack" advertisements became a problem, which ushered in the
regulation of advertising content.
19th Century
Thomas J. Barratt of London has been called "the father of modern
advertising“ Working for the Pears Soap company, Barratt created an
effective advertising campaign for the company products, which
involved the use of targeted slogans, images and phrases. One of his
slogans, "Good morning. Have you used Pears' soap?" was famous in
20th Century
Advertising increased dramatically in the United States as industrialization expanded the supply of manufactured products. In
1919 it was 2.5 percent of gross domestic product (GDP) in the US, and it averaged 2.2 percent of GDP between then and at
least 2007, though it may have declined dramatically since the Great Recession.
Some Areas of 20th
• Radio Advertisement In 1920
In the early 1920s, the first radio stations were established by radio equipment manufacturers, followed by non-profit
organizations such as schools, clubs and civic groups who also set up their own stations.
• Commercial television in the 1950s
In the early 1950s, the DuMont Television Network began the modern practice of selling advertisement time to multiple
sponsors. Previously, DuMont had trouble finding sponsors for many of their programs and compensated by selling smaller
blocks of advertising time to several businesses.
• Cable television from the 1980s
The late 1980s and early 1990s saw the introduction of cable television and particularly MTV. Pioneering the concept of the
music video, MTV ushered in a new type of advertising: the consumer tunes in for the advertising message, rather than it being
a by-product or afterthought.
• On the Internet from the 1990s
With the advent of the ad server, online advertising grew, contributing to the "dot-com" boom of the 1990s.[43] Entire
corporations operated solely on advertising revenue, offering everything from coupons to free Internet access. At the turn of the
21st century, some websites, including the search engine Google, changed online advertising by personalizing ads based on
web browsing behavior. This has led to other similar efforts and an increase in interactive advertising
CLASSIFICATIONS
1. Traditional Media
Virtually any medium can be used for advertising. Commercial advertising media can include wall
paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and
television adverts, web banners, mobile telephone screens, shopping carts, web popups, skywriting, bus
stop benches, human billboards and forehead advertising, magazines, newspapers, town criers, sides of
buses, banners attached to or sides of airplanes ("logojets"), in-flight advertisements on seatback tray
tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, musical stage
shows, subway platforms and trains, elastic bands on disposable diapers, doors of bathroom stalls,
stickers on apples in supermarkets, shopping cart handles (grabertising), the opening section
of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any
situation in which an "identified" sponsor pays to deliver their message through a medium is advertising
2 . Television
Television advertising is one of the most expensive types of advertising; networks charge large amounts for
commercial airtime during popular events.
3 .Radio
Radio advertisements are broadcast as radio waves to the air from a transmitter to an antenna and a thus to a
receiving device. Airtime is purchased from a station or network in exchange for airing the commercials.
4.Online
Onlinee advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering
marketing messages to attract customers. Online ads are delivered by an ad server.
5 . Domain names
Domain name advertising is most commonly done through pay per click web search engines, however, advertisers often lease space
directly on domain names that generically describe their products.
6 . Print
Print advertising describes advertising in a printed medium such as a newspaper, magazine, or trade journal
7 Outdoor
Billboards, also known as hoardings in some parts of the world, are large structures located in public places which display
advertisements to passing pedestrians and motorists.
8 Point-of sale
In-store advertising is any advertisement placed in a retail store
9 Novelties
Advertising printed on small tangible items such as coffee mugs, T-shirts, pens, bags, and such is known as novelty advertising.
10 Celebrity endorsements
Advertising in which a celebrity endorses a product or brand leverages celebrity power, fame, money, popularity to gain recognition for
their products or to promote specific stores' or products.
PURPOSES
To Customer
Advertising is at the front of delivering the proper message to customers and prospective
customers. The purpose of advertising is to inform the consumers about their product and
convince customers that a company's services or products are the best, enhance the image of the
company, point out and create a need for products or services, demonstrate new uses for
established products, announce new products and programs, reinforce the salespeople's
individual messages, draw customers to the business, and to hold existing customers.
Sales promotions and brand loyalty
Sales promotions are another way to advertise. Sales promotions are double purposed because
they are used to gather information about what type of customers one draws in and where they
are, and to jump start sales. Sales promotions include things like contests and games,
sweepstakes, product giveaways, samples coupons, loyalty programs, and discounts. The
ultimate goal of sales promotions is to stimulate potential customers to action.
THEORY
Hierarchy-of-effects models
Various competing models of hierarchies of effects attempt to provide a theoretical underpinning to
advertising practice.[clarification needed][117]
The model of Clow and Baack[118] clarifies the objectives of an advertising campaign and for each
individual advertisement. The model postulates six steps a buyer moves through when making a
purchase:
• Awareness
• Knowledge
• Liking
• Preference
• Conviction
• Purchase
ADVERTISEMENT EFFECT ON COST OF GOODS
1.Traditional Media Cost
• Newspaper
• Billboard
• Pomphilit
• Pena Flexes
• Strcker cost
2 Television
3 Radio cost
4 Online
• Facebook
• Websites
• Social Blogs
• Goolgle Add
• Search Engin
5 Domain name
• Pay per click
6 Print
7 Outdoor
8 point of sales
9 Novelties
10 Celebrities endorse
Effects
• Increase per unit Cost
• Resource Reduction
PAY PER CLICK
POSITIVE AND NEGATIVE EFFECTS OF ADVERTISEMENT
1. Positive
• Public Services
• Social Benefits
• Public Health
• Comparative advertising
• Economic Benefits
• Free Entertainment
• Capital Investment
• Company Image
2 Negative
• Misrepresentation
• False Image
• Unrealistic expectations
• Promotion of Harmful Product
• Political Influence
• Environmental Issues
• Final Thoughts
TIPS FOR EFFECTIVE ADVERTISEMENT
1. Identifying Brand and Product
2. Providing Information to Consumers
3. Persuading Consumers to Purchase
4. Previewing New Trends
5. Generating Product Demand
6. Build a customer Base
7. Providing Competitive Prices
THANKS ALL OF
YOU
PLEASE ASK IF YOU HAVE
ANY QUESTION

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Advertisement effet on the c;ost of goods

  • 2. COURSE INSTRUCTOR MAM SHUMAILA DELAWAR GROUP MEMBERS MUHAMMAD NASIR KHAN QAMAR SAJID WAQAR AMJAD MUHAMMAD RAMZAN MUHSIN FAYAZ
  • 4. MAJOR COVERING AREAS • Advertisement • Advertisement and cost of Products
  • 6. INTRODUCTION TO ADVERTISING Advertising It is a marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea.
  • 7.
  • 8. THE ACTIVITIES EXCLUDED FROM ADVERTISING ARE THE OFFERING OF PREMIUMS TO STIMULATE THE S ALE OF PRODUCTS; THE USE OF EXHIBITIONS AND DEMONSTRATIONS A T FAIRS, SHOW AND CONVENTION THE USE OF SAMPLES AND ACTIVITIES, INVOLVING N EWS RELEASES AND THE ACTIVITIES OF PERSONAL SELLING FORCES; THE PAYMENT OF ADVERTISING ALLOWANCES WHIC H ARE NOT USED FOR ADVERTISING; THE ENTERTAINMENT OF CUSTOM
  • 9. EXCEPTION Advertising is differentiated from public relations in that an advertiser pays for and has control over the message. It differs from personal selling in that the message is non-personal, i.e., not directed to a particular individual.
  • 10. TYPES 1. Commercial Often seek to generate increased consumption of their products or services through “branding”, which associates a product name or image with certain qualities in the minds of consumers. 2 Direct response Ads that intend to elicit an immediate sale are known as direct-response advertising. 3 Non-commercial entities That advertise more than consumer products or services include political parties, interest groups, religious organizations and governmental agencies. 4 Non-profitt organization It may use free modes of persuasion, such as a public service announcement.
  • 11. HISTORY Early Stages • Egyptians used papyrus to make sales messages and wall posters. • Commercial messages and political campaign displays have been found in the ruins of Pompeii and ancient Arabia. • Lost and found advertising on papyrus was common in ancient Greece and ancient Rome. • Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this day in many parts of Asia, Africa, and South America. • The tradition of wall painting can be traced back to Indian rock art paintings that date back to 4000 BC.
  • 12. • In ancient China, the earliest advertising known was oral, as recorded in the Classic of Poetry (11th to 7th centuries BC) of bamboo flutes played to sell confectionery. • Advertisement usually takes in the form of calligraphic signboards and inked papers. • A copper printing plate dated back to the Song dynasty used to print posters in the form of a square sheet of paper with a rabbit logo with "Jinan Liu's Fine Needle Shop" and "We buy high-quality steel rods and make fine-quality needles, to be ready for use at home in no time" written above is considered the world's earliest identified printed advertising medium.
  • 13. 18th century In the 18th century advertisements started to appear in weekly newspapers in England. These early print advertisements were used mainly to promote books and newspapers, which became increasingly affordable with advances in the printing press; and medicines, which were increasingly sought after. However, false advertising and so-called "quack" advertisements became a problem, which ushered in the regulation of advertising content. 19th Century Thomas J. Barratt of London has been called "the father of modern advertising“ Working for the Pears Soap company, Barratt created an effective advertising campaign for the company products, which involved the use of targeted slogans, images and phrases. One of his slogans, "Good morning. Have you used Pears' soap?" was famous in
  • 14. 20th Century Advertising increased dramatically in the United States as industrialization expanded the supply of manufactured products. In 1919 it was 2.5 percent of gross domestic product (GDP) in the US, and it averaged 2.2 percent of GDP between then and at least 2007, though it may have declined dramatically since the Great Recession. Some Areas of 20th • Radio Advertisement In 1920 In the early 1920s, the first radio stations were established by radio equipment manufacturers, followed by non-profit organizations such as schools, clubs and civic groups who also set up their own stations. • Commercial television in the 1950s In the early 1950s, the DuMont Television Network began the modern practice of selling advertisement time to multiple sponsors. Previously, DuMont had trouble finding sponsors for many of their programs and compensated by selling smaller blocks of advertising time to several businesses. • Cable television from the 1980s The late 1980s and early 1990s saw the introduction of cable television and particularly MTV. Pioneering the concept of the music video, MTV ushered in a new type of advertising: the consumer tunes in for the advertising message, rather than it being a by-product or afterthought. • On the Internet from the 1990s With the advent of the ad server, online advertising grew, contributing to the "dot-com" boom of the 1990s.[43] Entire corporations operated solely on advertising revenue, offering everything from coupons to free Internet access. At the turn of the 21st century, some websites, including the search engine Google, changed online advertising by personalizing ads based on web browsing behavior. This has led to other similar efforts and an increase in interactive advertising
  • 15. CLASSIFICATIONS 1. Traditional Media Virtually any medium can be used for advertising. Commercial advertising media can include wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, web popups, skywriting, bus stop benches, human billboards and forehead advertising, magazines, newspapers, town criers, sides of buses, banners attached to or sides of airplanes ("logojets"), in-flight advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, doors of bathroom stalls, stickers on apples in supermarkets, shopping cart handles (grabertising), the opening section of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any situation in which an "identified" sponsor pays to deliver their message through a medium is advertising 2 . Television Television advertising is one of the most expensive types of advertising; networks charge large amounts for commercial airtime during popular events. 3 .Radio Radio advertisements are broadcast as radio waves to the air from a transmitter to an antenna and a thus to a receiving device. Airtime is purchased from a station or network in exchange for airing the commercials.
  • 16. 4.Online Onlinee advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Online ads are delivered by an ad server. 5 . Domain names Domain name advertising is most commonly done through pay per click web search engines, however, advertisers often lease space directly on domain names that generically describe their products. 6 . Print Print advertising describes advertising in a printed medium such as a newspaper, magazine, or trade journal 7 Outdoor Billboards, also known as hoardings in some parts of the world, are large structures located in public places which display advertisements to passing pedestrians and motorists. 8 Point-of sale In-store advertising is any advertisement placed in a retail store 9 Novelties Advertising printed on small tangible items such as coffee mugs, T-shirts, pens, bags, and such is known as novelty advertising. 10 Celebrity endorsements Advertising in which a celebrity endorses a product or brand leverages celebrity power, fame, money, popularity to gain recognition for their products or to promote specific stores' or products.
  • 17. PURPOSES To Customer Advertising is at the front of delivering the proper message to customers and prospective customers. The purpose of advertising is to inform the consumers about their product and convince customers that a company's services or products are the best, enhance the image of the company, point out and create a need for products or services, demonstrate new uses for established products, announce new products and programs, reinforce the salespeople's individual messages, draw customers to the business, and to hold existing customers. Sales promotions and brand loyalty Sales promotions are another way to advertise. Sales promotions are double purposed because they are used to gather information about what type of customers one draws in and where they are, and to jump start sales. Sales promotions include things like contests and games, sweepstakes, product giveaways, samples coupons, loyalty programs, and discounts. The ultimate goal of sales promotions is to stimulate potential customers to action.
  • 18. THEORY Hierarchy-of-effects models Various competing models of hierarchies of effects attempt to provide a theoretical underpinning to advertising practice.[clarification needed][117] The model of Clow and Baack[118] clarifies the objectives of an advertising campaign and for each individual advertisement. The model postulates six steps a buyer moves through when making a purchase: • Awareness • Knowledge • Liking • Preference • Conviction • Purchase
  • 19. ADVERTISEMENT EFFECT ON COST OF GOODS 1.Traditional Media Cost • Newspaper • Billboard • Pomphilit • Pena Flexes • Strcker cost
  • 20. 2 Television 3 Radio cost 4 Online • Facebook • Websites • Social Blogs • Goolgle Add • Search Engin 5 Domain name • Pay per click 6 Print 7 Outdoor 8 point of sales 9 Novelties 10 Celebrities endorse
  • 21. Effects • Increase per unit Cost • Resource Reduction
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  • 32. POSITIVE AND NEGATIVE EFFECTS OF ADVERTISEMENT 1. Positive • Public Services • Social Benefits • Public Health • Comparative advertising • Economic Benefits • Free Entertainment • Capital Investment • Company Image
  • 33. 2 Negative • Misrepresentation • False Image • Unrealistic expectations • Promotion of Harmful Product • Political Influence • Environmental Issues • Final Thoughts
  • 34. TIPS FOR EFFECTIVE ADVERTISEMENT 1. Identifying Brand and Product 2. Providing Information to Consumers 3. Persuading Consumers to Purchase 4. Previewing New Trends 5. Generating Product Demand 6. Build a customer Base 7. Providing Competitive Prices
  • 36. PLEASE ASK IF YOU HAVE ANY QUESTION