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Published by: emmanuel on Sep 16, 2009
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 Advertising is an important tool of promotion. . Advertisement is a non-personal presentation of an ideaor a product (where as personal selling or salesmanship help in personal promotional.) Advertisementsupplements personal selling to a great extent. Advertising has, acquired great importance in the modernIndia characterized by tough competition in the market and fast changes in technology, and fashion andtaste 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. Itusually provides information about the advertising firm, its product qualities, place of availability of itsproducts, etc. Advertisement is indispensable for both the sellers and the buyers. However, it is moreimportant for the sellers. In the modern age of large scale production, producers cannot think of pushingsale of their products without advertising them.
 What is advertising
 Advertising is the dissemination of information concerning an idea, product. or service to induce actionin 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-formessage 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 presentationand promotion of ideas goods and services of an identified sponsor". This definition reveals the followingfeatures of advertising:
1. It is a paid foam of communication
. Advertisements appear in newspapers, magazines, televisionor cinema screens because the advertiser has purchased some space or time to communicate informationto the prospective customers.
2. It is non-personal presentation of message
. There is no face-to-face direct contact with thecustomers. That is why, it is described as non-personal salesmanship. It; is a non-personal form of presenting products and promoting ideas and is complementary to personal selling. It simplifies the task of sales-force by creating awareness in the minds of potential customers
3. The purpose of advertising is to promote idea
about the products and service, of a business. Itis 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 inpropaganda may lead to distortion, deception and manipulation. Advertisement should disclose oridentify the sources of opinions and ideas it presents.
Publicity and Public Relations
Publicity is a part of marketing and customer relations.. Publicity comes from news reporters, columnistsand journalists. It comes to the receiver as the truth rather than as a commercial. Public relations andpublicity taken together are one of the four major ingredients of promotion-mix. These activities are,however, not controllable by the firm. Every from tries to create a good public relations so as to get goodpublicity through press and electronic media. Publicity has a peculiar feature that it is not a paid form of communication. Publicity refers to the mention of company/product in any published or non-publishedmedia. For example, a new product is launched, and due to its unique feature, the product may become apoint of discussion among various groups. This mention adds to the promotion and hence, the productgets publicized.This publicity is mainly due to good response of customers, or due to quality or can beeven due to some controversies. Any way, such public exposure of a product forms a crucial part of promotion mix. If a product is able to draw a lot of attention by the media, the firm will have to spendless on advertisement and sales promotion activities.
 Achieving goal.
Public relations is an important marketing functions in the present-day business environment. The totalprocess 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 possiblerelations with these groups.Public relation, complement advertising by creating product and service
credibility. Effective marketing communication is not without establishing and maintaining mutualunderstanding between the company and its customers. The lubricant making the wheel of marketingrun 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.
Difference between Advertising and Publicity 
 Advertising differs from publicity in regard to the following points :(
1) Paid/non-paid from
. Advertisement is a paid form of communication. Its cost is borne by the advertiser But publicity is any non-paid mention of an organization or its ideas or products in the news Media. Publicity cannot bepurchased in the usual sense of the term. Any institution can come to the attention of the public by beingnewsworthy. It has not to pay anything for the publicity, but has to supply the necessary information tothe news media.(
2) Identification of sponsorer
. Advertisement is issued by an identified sponsor. Publicity does not need an identified sponsor
(3) Control over message
. In advertising, the advertiser exercises control over the type, size,duration, and frequency of the message But in case of publicity, the control lies with the publicity media.
Difference between Advertisement and Personal Selling
The points of distinction between advertisement and salesmanship are listed below;(1
) Personal/Non-personal form
. Advertising is a non-personal form of communication. There is nocontact between the advertiser and the buyer. But salesmanship means personal selling. The salesmanhas face-to-face contact with the buyer.(
2) Mass vs. Individual communication
. Advertising is mass communication. It is addressed to alarge number of people. But salesmanship is individual communication. The impact of salesmanship is visible on the buyer who come into contact with the salesman.
(3) Purpose.
 Advertisement may aim at enhancing the goodwill of the advertiser. It may have no immediate purposeto sell the goods or services. But salesmanship always aims at effecting sales.
Objectives of Advertising
The fundamental purpose of advertising is to sell something - a product, a service or an idea. In additionto this general objective, advertising is also used by the modern business enterprises for certain specificobjectives which are listed below :1.
To introduce a new product by
creating interest for it among the prospective customers.2.
To support personal selling programme
. Advertising maybe used to open customers' doors forsalesman ..3.To reach people
to salesman.4.
To enter a new market 
or attract a new group of customers.5.
To light competition
in the market and to increase the sales as seen in the fierce competition between Coke and Pepsi.6.
To enhance the goodwill 
of the enterprise by promising better quality products and services.7.
To improve dealer relations
. Advertising supports the dealers in selling he product. Dealers areattracted towards a product which is advertised effectively.8.To warn the public
against imitation
of an enterprise's products.
Functions of Advertising
 Advertising has become an essential marketing activity in the modern era of large scale production andserve 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 thepeople 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 businessenterprise can introduce itself and its product to the public through advertising. A new enterprise can'tmake 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 enablesa business firm to communicate its achievements in an effort to satisfy the customers' needs. Thisincreases the goodwill and reputation of the firm which is necessary to fight against competition in themarket.
4. Mass Production
. Advertising facilitates large-scale production. Advertising encourages productionof goods in large-scale because the business firm knows that it will be able to sell on large-scale with thehelp 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 acompetitive marketing activity. Every firm tries to differentiate its product from the substitutes availablein the market through advertising. This compels every business firm to do more and more research tofind 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 isadvertising which has helped people in adopting new ways of life and giving-up old habits. It hascontributed 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 andmagazines. 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 increasingthe quality of programmes and extending coverage.
 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 andthe receiver of the message. The significance of advertising has increased in the modern era of large scaleproduction and tough competition in the market. Advertising is needed not only by the manufacturersand traders but also for the customers and the society. The benefits of advertising to different parties arediscussed 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 itsproducts to the public through advertising.(ii)
 It can create new taste among the public
and stimulate them to I purchase the new product througheffective advertisement.(iii) Advertising assists to
increase the sale
of existing products by entering into new markets andattracting 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 anessential thing to resist cold.(v) Advertising help in
meeting the forces of competition in
the market-place. If a product is notadvertised continuously, the competitors may snatch its market through increased advertisementments. Therefore, in certain cases, advertising is a necessity to remain in the market and remind thecustomer 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 becausetheir 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 areencouraged 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 anddevelopment 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 issuingadvertisements. Increase in employment brings additional income with the people which stimulatesmore 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 inconsumption 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 theirknowledge. Advertising also helps in finding customers in the international market which is essential forearning 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

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