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Published by: GYANENDRA KUMAR MISHRA on May 16, 2011
Copyright:Attribution Non-commercial


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Q.1 How does advertising persuade buyers? Explain the role of persuasion in advertising.
Ans.: Effect of Advertising in Marketing:
It will be useful to refer to direct or perceived benefits of advertising which include the following:
1) Information
Consumers need information about various goods and services. Due to ignorance, a consumer may purchase an inferior product and pay higher prices or even may not know that a particular product exists.Information given in an advertisement may be about the company and its products or service. Theadvertisement for Zenith refrigerator, introduced in the year 1980, for example, incorporated detailsregarding the product feature. The inclusion of a water cooler in the refrigerator was emphasized. It washighlighted that this facility was available only in this brand of refrigerator, considering the need for coldwater in a tropical country like India.
2) Brand Image Building
Very often, advertising is used to build a brand image. Images are mental pictures of brands that mayappeal to different segments of the target audience in varying degrees. These may have their origin in realor assumed features. The images projected are geared to match the needs and expectations of the targetaudience. Favourable images will help in generating brand loyally and a disposition to buy that brand in preference to another. Certain advertisements of toilet soaps in India aim at image building through opinionleaders. A well-known campaign of longstanding for Lux toilet soap uses film stars (Exhibits 1.4). Thecampaign for VIP travel luggage seeks to achieve the objective of attributing a superior image through theassociation of the product with affluent foreign nationals in a series of ‘VIP’ interviews.
3) Innovations
Advertising is seen to perform this task most effectively for new products. In a way, it reduces the risk of innovation. The cost of innovation can be more than the profit recovered by the sales which advertisingmay generate and this encourages manufactures to undertake research and development. New brandlaunches seem to abound in the toiletry, cosmetic pharmaceutical, confectionery and tobacco marketsadvertising. At the same time, it must be pointed out that advertising does not guarantee the success of allnew products.
4) New Product Launch
Various strategies, including advertising, are employed to make potential buyers aware of new products.The term ‘new product’ may include modifications of existing products, imitations of competitive productsand product line acquisitions. Advertising can be used to promote new products and call attention tochanges in old products. Advertising for the soft drink concentrate under the brand name Rasna aimed atenhancing the awareness of the product and creating a favourable disposition towards it.
5) Growth of Media
The acceptance of advertising enhances the potential for raising revenues. This in turn helps the launchingof new publications and expanding the media. This development has been a characteristic of the Indianmedia scene in recent years. A number of periodicals and newspapers have been launched during theseventies and this trend continued through the early eighties.
6) Long-term and Indirect Benefits
Advertising is a feature of free competitive enterprise and can be a contributory factor towards greater availability of goods. It increases distribution not only of the advertised products, but of other products aswell. Advertising helps to reduce the cost sold to the consumer. The costs of production and selling arelower when goods are produced and sold in larger quantities. It is also an important factor in productimprovement. Advertising helps to make the purchase of commonplace products emotionally moresatisfying. This may apply, for instance, to the consumers of Lijat Papad who may derive satisfaction out of  buying advertised product, or for that matter, users of perfumes and lipsticks where association withadvertising may be instrumental in reducing dissonance.
7) Limitations of Advertising
Advertising has several limitations. There is a view that advertising increases the cost of goods sold to theconsumer. Advertising can be wasteful considering that only a small section of the audience covered by themedia used may relate to the product advertising. The qualitative aspect of advertising is its strength. It canalso be a major weakness when stereotyping an innovation. Advertising may encourage unsound or falsevalues especially through its effect on children and youth. It creates an emotional appeal. Critics point outthat any emotional appeal, in contrast to a rational appeal, is misleading. Finally, advertising can endanger competition. Big advertisers can monopolize the market.
Role of Advertising in Marketing:
Advertising is an all-pervasive facet of most growing communities. Ithas important consequences for the advertisers who use it and for individuals who are exposed to it.However, its economic and social impact is a subject of continuous controversy. The following aspectsillustrate the basic purpose of advertising:
1) Communication with Consumer
There is an increasing need for information about a wide variety of products as the economy expands andgrows more complex. Advertising is a major way of establishing communications between manufacturesand other Organisations providing services or trying to put across ideas and concepts, on the one hand, andcustomers, buyers and potential acceptors, on the other. Advertising is a reminder to the existing consumersand it aims at cultivating new prospects as well. Advertising has, therefore, been described as ‘effectivecommunication’ with the target audience.
2) Persuasion
Advertising attempts to persuade prospective buyers to buy a product/service. According to Clyde Miller,all success in business, industry and similar activities depends upon the process of planned persuasion. Inmodern markets, the producer who is content with advertising that merely identifies or informs may soonfind himself in a vulnerable position. The consumer should be aware of the advertiser’s persuasive interest,no matter how restrained or informative the message may be.
3) Contribution to Economic Growth
Advertising contributes to economic growth by helping to expand the market, particularly for new products, and by helping to develop new market segment. A company, which invests in research anddevelopment in order to develop new products, has to depend on advertising for establishing the market for these products. In the board social context, advertising can be motivating factor for the less privileged for increasing their purchasing power. Advertising is also a potent vehicle for achieving acceptance of desirable and useful concepts and ideas where the profit motive is minimal or missing altogether. This may be seen in the case of non-profit objectives, such as preventive aspects of public health, developing thesmall family norm especially in over-populated countries, dissuading drunken driving, and so forth.
4) Catalyst for Change

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