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Definition

Any paid form of non-personal presentation and promotion of ideas, goods and services of an identified sponsor. Advertising consists of all the activities involved in presenting to a group a nonpersonal, oral or visual, openly sponsored message regarding a product, service or idea. This message called an advertisement is disseminated through one or more media and is paid for the identified sponsor-WILLIAM J STANTON

Features

Objectives

Importance

Creating awareness Increase sales Brand identity & Brand image Communicate a change Increase the buzz value

Benefits To Manufacturers

HELPS FORECAST DEMAND

Creates curiosity-desire-demand Cultivate response-probable demand Seeks to impress prospective buyers Affect preference & priorities Ensure regular and continuous demand Reminder ads Production planned as per demand

DEMAND STIMULATION

DEMAND SUSTENANCE

PLANNING PRODUCT

Benefits To Manufacturers

HELPS DECIDING SCALE OF PRODUCTION

Creates inquisitiveness among the prospective buyers. Quantum of demand expected Attracts several intermediaries Example- C&F agents, retailers,etc Customer information as well as feedback Eliminate wasteful expenditure Impressive ads

AUGMENTS DISTRIBUTION

COST REDUCTION

HELPS COUNTER COMPETITION

-

- Positive impact

GOODWILL

Benefits To Customers

Benefits To Society

Limitations Of Advertising

Role/Functions Of Advertising

Facilitates introduction of new products Improves sales by educating customers Facilitates to build up reputation for the product and advertiser Helps to communicate the public at large as to the product and organizational achievement. Provides employment Provides source of revenue to media, press Helps to plan production and develop products Tries to improve product through regular feedback

Advertising Techniques

NEWSPAPER

Provides large coverage BENEFITS

Large circulation-secure coverage-one time expenditure Repetition possible at marginal extra cost Cheaper compared to other media Limited to educated people Less effective Life is short

LIMITATIONS

MAGAZINES & PERIODICALS

Advertised based on the product type EXAMPLE- India today, OutlookGeneral consumer goods Vogue, Femina- Fashion products Sports star- sports products BENEFITS

More attractive- column advertising Comparatively longer life Detailed description of features and quality Covers various sections of society

LIMITATIONS

DIRECT MAILING

Communicate directly with customers Prepares list and send letters or literature Greatest advantage direct contact with customers and control on it Display of products through specially created windows Provides cost effectiveness, space utility and control of

WINDOW DISPLAY

SLIDES OR FILM

Slides are still films showing the product Films or small documentary which exhibit the product

MUTURAL OR OUTDOOR ADVERTISING

Posters, bill boards, wall writings, etc. Posters- important public places Bill boards- near signals, main roads, streets

VEHICLES DISPLAY

Uses method of transport Buses, inside trains, etc Mass communication and special appeal Effective for both educated and uneducated Limits to only listeners and non visual Relatively less cost

RADIO

TELEVISION

Visual electronic medium covering large section of society Done in form of short commercials and sponsored programmes Takes product visually to the homes of customer without actual approach Provides better demonstration of product and its features, utility, etc. Limitations include cost

Selection Of Media

Requirements Of Good Advertising

Advertising Agency

An advertising agency is: An independent business organisation Composed of creative and business people Who develop, prepare and place advertising on advertising media For sellers seeking to find customers for their goods and services

Functions Of An Advertising CLIENT SERVICING Agency

Also called account executives. Acts as the link between the agency and the client. He suggests what the client exactly wants to his ad agency. He is the person who carries the client brief and is also responsible for the approvals. CREATIVE DEPARTMENT Under the creative director are a team of copywriters and visualisers who arrive at the big idea. Accordingly the storyboard is prepared and script work is done. The final layout is sent for approval to the client. PRODUCTION DEPARTMENT The production department is responsible to convert the storyboard into a finished layout if its for print medium or Outdoor. However

Functions Of An Advertising Agency

MEDIA DEPARTMENT

The Media Planner along with Media manager and brand manager of the client prepares the final media budget and purchases insertions for print media (space buying) or purchases radio spots or purchases TV time if its on television. Appropriate media mix is developed.

RESEARCH DEPARTMENT

In fact research department functions before and after a commercial is made for pre-testing and post-testing of media respectively. Consumer insights and brand usages are also tested at times, according to client in many instances.

FINANCE DEPARTMENT This department looks after the accounts (financial records) for the agency.