Advertising is an important tool of promotion..
Advertisement is a non-personal presentation of an idea or a product 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.
Modern Advertising Essay Example
In the modern age of large scale production, producers cannot think of pushing sale of their products without advertising them. 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 arm of non-persona: presentation and promotion of ideas, goods or services of an identified sponsor. The message which is presented or disseminated is known as ‘advertisement” Commercial advertisers often seek to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers.
Non-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. Mass media can be defined as any media meant to reach a mass amount of people.Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, radio, outdoor or direct mail; or new media such as websites and text messages. In 201 0, spending on advertising was estimated at more than $300 billion in the United States and $500 billion worldwide. Internationally, the largest (“big four”) advertising conglomerates are Interruptible, HISTORY OF ADVERTISING Modern Advertising is Largely a product of 21 SST century.
However, Communication has been a part of selling process for almost as long as there have been the new exchange goods for one person to another. Development of technology has led to increased sophistication in the vast in the advertising in the recent decades. The recorded history of advertising covers a period of about 5000 years including the modern satellite and Internet age. The urge to advertise has been a part of human nature since ancient times.Before the invention of printing from movable type (about 1438 AD) by John Gutenberg, there were three forms of advertising : * Trademarks Craftsmen in early times wanted to be identified for there skills and it placed their individual marks on the goods they crafted. This led to reputation building of particular artisans by word of mouth. Buyers learnt well look for distinctive mark just as we look today for brand names and trademarks on projects.
* Signs : Archaeologists have revealed from excavations that little shops had inscriptions on walls near the entrance to inform the passers by about the type of goods sold.These messages highly praised the product that were for sale. This is an example of outdoor advertising. * Town criers : This system Of town criers was present in all developed civilizations Of ancient world. These town criers will pay to go around spreading news and making announcements in the streets. Epics and history books about ancient India reveal that system of town criers was used by the rulers in India to inform the public of various public interest matters. In rural India, town criers were used till 1 9505.
TYPES OF ADVERTISING Introduction 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 pops,skywriting, bus Stop benches, human billboards, magazines, newspapers, town criers, sides of buses, banners attached to or sides of airplanes (“logiest”), in-flight advertisements on setback 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 tails,stickers on apples in supermarkets, shopping cart handles (exaggerating)r the opening section of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an “identified” sponsor pays to deliver their message through a medium is advertising The different forms of advertising are : Digital advertising * TV Advertising The TV commercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events.Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience An infomercial is a long-format television commercial, typically five minutes or longer. The word “infomercial” combining the words “information” & “commercial * Radio advertising Radio advertising is a form of advertising via the medium of 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.While radio has the obvious limitation of being restricted to sound, proponents of radio advertising Often cite this as an advantage. * Online advertising Online 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. Examples of online advertising include contextual ads that appear on search engine results pages, banner ads, in text ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing including e-mail spam. Physical advertising * Press advertising Press advertising describes advertising in a printed medium such as a newspaper, magazine, or trade journal.This encompasses everything from media with a very broad readership base, such as a major national newspaper or magazine, to more narrowly targeted media such as local newspapers and trade journals on very specialized topics. A form of press advertising is classified advertising, which allows private individuals or companies to purchase a small, narrowly targeted ad for a low fee advertising product or service.
Another form of press advertising is the Display Ad, which is a larger ad (can include art) that typically run in an article section of a newspaper * Mobile billboard advertising Mobile billboards are generally vehicle mounted billboards or digital screens.These can be on dedicated vehicles built solely for carrying advertisements along routes presented by clients, they can also be specially equipped cargo trucks or, in some cases, large banners strewn from planes. The billboards are often lighted; some being backbit, and others employing spotlights * Street advertising This type of advertising first came to prominence in the UK by Street Advertising Services to create outdoor advertising on street furniture and pavements. Working with products such as Reverse Graffiti and ad pavement advertising, the media became an affordable and effective tool for getting brand messages out into public spaces.NON PRODUCT ADVERTISING Ideas or civvies are advertised in non-product advertising. * Idea Advertising : As advertising is a powerful communication tool, it is often used to info;ounce special interests groups and away public opinion. Human rights, environmental issues, child labor, dowry, AIDS awareness and other issues are example for which mass media advertising is used has increased tremendously in recent years.
These advertisements are for the welfare of the society. Idea advertising often generates controversies because many if the issues trigger heated discussions laden with emotions. For example, the Government of India broadcasts different social messages on the radio and television. Service Advertising In service advertising, various services are advertised. Service advertising is trying to sell expertise in some field. The companies providing services keep n using a distinctive mark, theme or slogan for years to develop a distinct identity and increase awareness and instant recognition by consumers. For example, ICC bank uses the stylish I in its advertising, Air India uses the Maharaja as a logo in its advertisement.
THE 5 MS of OVEREATING The organizations handle their advertising in different ways. In small companies, advertising is handled by someone in the sales or marketing department, who works with an ad agene.A large company will often set up its own advertising department or else hire an ad agency to do the job of preparing advertising programmers. In developing a program, marketing managers must always start by identifying the target market and the buyer’s motives. Then they can make the five major decisions in developing an advertising program, known as the five M’s, biz. * Mission: what are the advertising objectives? * Money: how much can be spent? * Message: what message can be sent? * Media: what media should be used * Measurement: how should the results is evaluated? OBJECTIVE OF ADVERTISING In the primary objective of advertising is to increase sales. In modern times, Advertising has become the soul, mind, heart and body of modern business economy.
The advertising objective must flow from prior decisions on target market, market positioning, and marketing mix, Many specific communication and sales objectives can be assigned to advertising. Besides increasing the sales, the following are the important objectives of advertising. : To build up and maintain a good image. * To build up and maintain a brand loyalty * To make the people aware of their needs * To introduce a new offering in the market. * To inform the people about availability of different types of products and * To create goodwill for the manufacturer, company or a firm. Revises To counteract competition. * Encourages the maintenance and the improvement of quality of products Creates new uses Of the product.
* Holds customers when salesman transfers to a competitor. Gains goodwill or stored buying habits * Stabilized the company business. * Establishes value which can not been destroyed or dissipated. * Overcomes consumer’s customs and prejudices. The advertising objectives should emerge from a through analysis of the current marketing situation. If the product class is mature, the company is the market leader, and the brand usage is low, the company is not the market deader, but the brand is superior to the leader, than the objective of advertising is to convince the market of the brands superiority. BENEFITS OF ADVERTISING Advertising is the most important tool in the marketing of products and services.
Companies all over the world universally accepted this fact. The expenses on advertising are considered to be a profitable investment that reaps profits both in the long and short run. Businesses that keep on advertising regardless of rise or fall in the economic times get a competitive advantage over those that cut their ad budgets. There are many benefits of advertising which include: l. Limitation to the Customer. Advertisement about new products keeps the customer informed about the new developments in the industry’. They help to provide them information regarding the newly launched products.
2. Takes care of customers. Advertising takes care of customers.It helps in holding on to the loyal customer, decreasing the number of lost customers and enlisting new customers. Thus the overall effect of advertising is increase in the number of customers that will gradually become loyal to the product. 3. Improves the sale of product.
Advertising facilitates a noticeable increase in the sale of the product. It thus helps reduces per unit cost Of the product and help the businesses to earn profits. 4. Alters the attitudes of people. An effectual advertisement results in a swift change in the attitudes and habits of the people. 5. Direct communication.
In earlier days customers believed on the opinions of retailers, when making the purchases of products.With the rapid spread of media and advertising to every nook and corner of the world, people have become aware of the various products that are available in the same category and the freebies ND benefits of purchasing them. So the companies or manufacturers are able to communicate their message directly to the customers. 6. Increase employment. Advertising is a complicated task and a Ii of people are involved in the making of an advertisement. Research team, design team and many other people are required to make and deliver it.
So, advertisements generate employment for a lot of people. 7. Economic progress. Advertising increases sales, employment and profits.The overall effect of all this is economic progress for the nation, or more broadly for the world as a whole. 8. Religious and moral benefits.
Social and religious institutions use advertising for communicating their messages like messages of patriotism, faith, compassion tolerance, and charity toward needy, messages related to health and education. These educate people and guide better behavior. Advertising through every medium offers some or the other benefits. But nowadays the most popular medium of advertisement is through television. Although the cost of advertising is quite high but the benefits in the long run balance the high Cost associate to it. So, companies should concentrate on advertising as an important medium toSix Elements of a Successful Advertising Six Elements of a Successful Advertising Campaign If you are new to advertising or if you’re using media or publications you haven ‘t tried before, it’s important to assign your ads to outside specialists rather than try to create them yourself. These specialists may be the creative group at an advertising agency, a freelance writer and designer, or the ad department of the newspaper, magazine, TV channel, or radio station where you plan to advertise.
Such people are experienced in translating information about a product or service, target market, U. S. P. And goals into advertising that suits each medium and conveys an effective image and sales message.Moreover, it’s extremely helpful to work with and learn from specialists for several years before you consider doing advertising in-house. Whether you work with specialists or create advertising on your own, here are six guidelines to follow in developing an ad program: * Do your homework. Start compiling your own ad file.
Collect ads you like as well as competitors’ ads to give you ideas. Read books on advertising, including anthologies of the best ads of the year and how-tot’s by advertising great “Sell the sizzle, not the steak. ” The old rule about selling products based on the benefits and excitement they provide has proved true time and time again, so focus on your U. S. P. ND on those intangibles that motivate human behavior and generate sales. * Stick to your own image and personality.
Stay with the basics of who you are. Make sure that the personality and image projected in your advertising ring true. * Work as a team with your ad rep or ad agency. The best advertising results from a synergy of your expertise in your business and your ad specialists’ expertise in advertising. Carefully explain your product, market, and goals, and let the ad people go from there to develop their ideas. Advertising is a give-and-take process, and both sides need to communicate and work together without dictating until the outcome feels right. * Give each advertising medium you choose a fair test.
Advertising rarely brings sales overnight. Run your ad at least five times-or at least two months in weekly publications-to test the market properly. Often, consumers need to get used to seeing your ad before they’ll act on it. Results take time. * Don’t overlook current customers. Nobody sells you better than a satisfied customer, so in your efforts to gain sales from new prospects, remember that you can build sales equally well through customer referrals and repeat purchases of existing clientele. Maintain a mailing list and, at your earliest opportunity, start producing sale notices, newsletters, catalogs, or other goodwill and sales-generating materials for current customers.
Some of these items lend themselves to a direct mail campaign targeted at new prospects as well. * Slogans, Logo Type And Signature – most companies have used slogans for several years and the slogans have become a symbol of identification for the company. He display of the company name, seal or trademark is called a logotype and is a common part of most advertisements. For example, Monika uses connection people. The next time element of advertising it illustration. Illustration means a picture used to increase the effect of a copy of an advertising. Sometimes a picture or pictures are used in place of copy.
A picture is worth a thousand words. N illustration, therefore, means a picture are used in an advertisement to tell the prospects the message of an advertisement. The presence or absence of a picture is an advertisement can cause marked difference in its effectiveness tit the help of Illustration over-emphasis in the can be avoided and display appeal can be made clear and direct. The inadequacy of language is compensated for with the use of an illustration. For example, the latest ad of Maul, which uses an illustration. MARKETING ROLE OF ADVERTISING The systematic planning, implementation and control Of a mix Of business activities intended to bring together buyers and sellers for the mutually advantageous exchange or transfer of products.After reading both of the definitions it is easy to understand how the difference can be confusing to the mint that people think of them as one-in-the same, so lets break it down a bit.
Advertising is a single component of the marketing process. It’s the part that involves getting the word out concerning your business, product, or the services you are offering. It involves the process of developing strategies such as ad placement, frequency, etc. Advertising includes the placement of an ad in such mediums as newspapers, direct mail, billboards, television, radio, and of course the Internet. Advertising is the largest expense of most marketing plans, with public relations following in a close second and market research to falling far behind.The best way to distinguish between advertising and marketing is to think of marketing as a pie, inside that pie you have slices of advertising, market research, media planning, public relations, product pricing, distribution, customer support, sales strategy, and community involvement. Advertising only equals one piece of the pie in the strategy.
All of these elements must not only work independently but they also must work together towards the bigger goal. Marketing is a process that takes time and can involve hours of research for a marketing plan to be effective. Think Of marketing as everything that an organ action does to facilitate an exchange between company and consumer. IMPORTANCE OF ADVERTISEMENT Advertising is an important aspect of promoting almost any product, service or brand.Most of the dictionaries also refer to advertising as, * an activity that involves the public promotion of goods and services, or a brand or a company or an establishment * a business of drawing public attention to goods and services and their merits * a process that calls attention to a pa reticular good or service * a process that makes publicity for a said subject such as a good, service, product, brand, person, establishment, company or firm) Thus, from the above definition it can be concluded that advertising is a task that involves making the public aware and conscious about the subject that is being advertised. Neo-classical economists and modern economists often criticize advertising by calling in a profession that creates awareness about a product in the consumer’s brain, which eventually leads to a craving to own that product. This continual process that is bought about by advertising eventually leads to increasing demand and eventual scarcity of resources.
Moving on to importance of advertising… Why is Advertising Important? The aim of any business is to maximize the sales of that business. This minimization results into a lot of revenue and profits for the company. Advertising ensures that the sales of the business increase.The second importance is that the product which is sold under the banner of a specific brand also becomes a household name.
For example, Coke or coca- cola is a house hold brand name. Same is the case of Pepsi. Such popular brand names have huge customer base that is loyal to the brand and continues to purchase the product for a prolonged time period. Such a customer base also introduces the product and brand to many other people. Creation of awareness is the primary objective of any advertisement. Thus, when any product is advertised, people become aware about its existence and as mentioned above, a need and craving to purchase and own the commodity.Importance of Advertising in Business From the business point of view, advertising not just optimizes sales and product promotion but the goodwill of the specific brand that is earned is an important asset.
A well known brand not only has a good customer base but it is a great ground to introduce new products under the same banner. In such a case, there is a very high probability that people are going to purchase the new product out of curiosity. It is often said that reputation gained and maintained due to advertising helps out the business through out the life time. The logic behind that is simple. When advertising creates awareness, people know about the product and when they known about the product, they pay attention to its newer advertisements and the probability that the person will buy the product will increase.