You are on page 1of 18

https://sites.google.com/site/sitebyumna/handouts-and-notes PURPOSES OF AD ER!

"S"#$
!o in %o&m 1. Advertising serves to inform the public of the availability of a new product or service which is being sold in the market, e.g. advertising a new brand of toilet soap or announcing the opening of a new hairdressing salon. 2. This is aimed at creating a demand for the new product. The new product has to be made known to the public before the goods are actually available for sale. The advertisement also serves to induce the wholesalers and the retailers to stock up the new goods. 3. This type of advertising is called informative advertising. It is not only restricted to new products but is also used to inform people of new uses of a product, of how a product works, of new price changes, of names and addresses of retailers selling a certain product, or even of a new bus timetable. . !hat is important is that it makes no attempt to persuade but merely informs the public of the availability of the product, its uses and advantages, price, "uality, terms of sale, etc. #. $nder informative advertising the following goods and services are advertised% & Advertising in Trade and Technical 'ournals% These advertisements contain technical information about goods. & Advertising of (articular )vents% Trade fairs, e*hibitions, concerts and sporting activities are e*amples of such advertising. In this type people are informed about such events and are persuaded to attend such events. & Advertising of )mployment +pportunities% In this type people come to know about the various employment opportunities available. !o pe&suade 1. Advertising also serves to persuade the public to buy some goods or services, e.g. a company seeks to induce the public to buy its particular brand of detergent in preference to others or a travel agency advertises the better "uality of service it can provide to its customers. 2. This type of advertising is called persuasive advertising. It not only informs but also persuades the public into purchasing the advertised product by using subtle techni"ues. It
Page

aims at e*tending the demand for the good or service advertised. In other words, an advertiser aims to increase the sale of its product. ,y selling more, a firm increases its revenue and might pay a lower unit cost as goods are produced on a larger scale. The net profit of the firm would then increase if these benefits are greater than the costs of advertising. !o &emind 1. Advertising also serves to remind consumers of e*isting products- that the product may be needed in the near future and where the product can be bought. 2. It is necessary for the advertiser to draw the attention of consumers to his product constantly and to keep away from other competitive brands which may be heavily advertised. 3. It aims to keep the name of the product before the public. .or e*ample, a newspaper advertisement may carry a picture of a bottle drink or a bus may carry the name of a firm. They say nothing but serve a useful purpose in reminding the public of the name of the product or service. /any products are branded to distinguish them from similar products. ,rand names are registered so other competitors cannot copy them. 0ome brand names are so well known that advertisements often show only the brand name and the product itself is not mentioned. . This type of advertising is called reminder advertising. A related form of advertising is reinforcement advertising which seeks to assure current purchasers that they made the right choice. #. 1eminder advertising aims at sustaining the demand for the good or service advertised.

'E#EF"!S OF AD ER!"S"#$
1. Advertising increases profits and therefore the producer can lower the price of his goods. 2. Advertising helps in providing information to the customer of a particular product. 3. Advertising helps in launching new products. . Advertising helps to introduce new products, thus improving the standard of living. #. It is believed that advertised goods are of better "uality than other goods. 2. Advertising maintains the price of newspapers at a reasonable level. 3. It helps to increase sales. 4. It provides employment opportunities. 5. It helps to create goodwill for the firm. 16. It gives wide choice to customer. 11. It helps the salesman in their efforts of promoting sale. 12. 7ew product can find market only through advertising 2

Advertising 13. Advertising provides employment opportunities

SO("A) ASPE(! OF AD ER!"S"#$


Positi*e: 1. It generates employment. 2. It yields revenue for the public media which is indirectly an income for the government. 3. It educates the society. #egati*e: 1. Ads can mislead the customers to try out the lice goods. 2. Ads can turn the society towards flair for se*, and violence. 3. Ads can lead to waste of resources.

DA#$ERS OF AD ER!"S"#$:
!o consume&: 1. 8onsumers are misled by advertisements. 2. 8ustomers may have difficulty in choosing a brand. 3. 8ustomers may make unnecessary purchase. . 8ustomers may be irrational in buying. !o p&oduce&: 1. (roduction costs increase. 2. The e*penditure may not be 9ustifiable. 3. The manufacturer may incur financial loss, if he engages in competitive advertising. Reasons +hy consume&s need p&otection against some %o&ms o% ad*e&tising: Advertisements may be misleading. Advertisements may contain false information. :oods may be incorrectly labeled. 0ome advertisements may be dirty and unsuitable. 0ome adult advertisements may be shown at inappropriate timings.

!,PES OF AD ER!"SE-E#!S
Pe&suasi*e Ad*e&tising In this type the advertiser tries to persuade the public to buy his product, by e*plaining the various good "ualities that the product possesses over other products. (ompetiti*e Ad*e&tising This is carried out by different producers of different brands of the same product. )ach producer tries to compete with other producers in trying to capture the market. The advertiser uses techni"ues that are persuasive and aggressive to achieve his target. )*ample, the advertiser claims that his product is best in terms of "uality;performance;durability.
E.ample: ,iggs ,utter is best.

"n%o&mati*e Ad*e&tising In this type information is passed on to the consumers about availability of products, changes in fashion and how to use the products. $nder informative advertising the following goods and services are advertised% Advertising in Trade and Technical 'ournals% These advertisements contain technical information about goods. Advertising of (articular )vents% Trade fairs, e*hibitions, concerts and sporting activities are e*amples of such advertising. In this type people are informed about such events and are persuaded to attend such events. Advertising of )mployment +pportunities% In this type people come to know about the various employment opportunities available. $ene&ic Ad*e&tising /(ollecti*e0 !hen all the producers in one industry combine to advertise their product, it is called generic advertising. These advertisements are usually sponsored by trade associations. The producers group together to share the costs and to promote the product hoping to increase the overall sales of the product. )*ample% <rink more tea.

Advertising

AD ER!"S"#$ -ED"A:
!ype o% medium =a> 7ewspaper Ad*antage 1. There is a wide target audience. It is read by many people. 2. 8irculation cost per e*posure is low. It is one of the cheapest media of reaching a large number of prospective buyers. 3. It is suitable for products or services in general demand, e.g. films, electrical appliances. . It enables the advertiser to present the products in some details, e.g. technical details about a car. #. The advertiser can have the choice of national or regional coverage. 2. $nlike advertisement in the maga?ine which must be submitted weeks ahead, advertisements in the newspaper can be inserted or cancelled at shorter notice. 3. The advertiser can obtain response from the readers by providing telephone numbers or by means of coupons or contest. 4. 7ewspapers have the capacity to accept a large number of advertisements compared with the =b> /aga?ine limited time on television. 1. The paper "uality is better compared with that used for the newspaper. 2. An advertisement in the maga?ine en9oys a longer life span than that in the newspaper. 1. It is infle*ible, as advertisements must be placed weeks before the date of the publication. 2. There is limited readership as the readers are specific. 3. It is infre"uent as the maga?ine is Disad*antage 1. It has a short life span 2. The advertisements have to compete with other advertisements for the readers attentions. 3. The written advertisement message can reach only the literates. . Advertisements are many and varied such that it takes effort to find advertisement one is looking for. #. The paper "uality is low compared with those used for maga?ine. 2. As an advertising medium the newspaper doesn@t have the same impact as the television.

3. The targeted audience of the advertisement can be reached mare easily. ).g. a firm selling computer software could advertise in a computer maga?ine or a firm selling cash register can advertise in a trade 9ournal. . As the advertising message is directed at the intended audience there will be less wasteful circulation. #. It is suitable for advertising messages which are long and have to =c> 1adio be read in a leisurely manner. 1. The advertising message can be reached large number of people even in remote areas. 2. It is much cheaper to produce advertisements of this medium than a television commercial. 3. The use of sound such as music and oral makes radio a more lively advertising medium than static medium such as newspaper and maga?ine. . The advertising message can reach the target market effectively through special interest programme such as children@s or women@s programmes. #. !ith radio sets that are portable or fitted in motor vehicles, radio =d> Television message can be received widely. 1. The advertiser can demonstrate the product with realistic sound s, colors and movements because of effects. The television is one of those media that have high persuasive impact i.e. the ability to stimulate consumers. 2. The television commercials can 6

published only periodically. . As an advertising medium, it doesn@t have same impact as television.

1. There is lack of visual elements and as such, they are less effective when visual impact is needed. 2. It@s life span is very short compared with the newspaper and the maga?ine. 3. Audience attention is low when broadcasting is being used to provide a background for other activities.

1. It is not suitable when detail information is re"uired. The newspaper and the maga?ine are better advertising media if more information is re"uired by the prospective buyers. 2. It is not suitable if the target audience is small due to high cost.

Advertising reach a large number of viewers as they have wide e*posure. 3. Advertisements can be repeated to the point where a large number of viewers have seen the advertisements to create an effective and lasting impact. . The advertisement can be directed at national or regional audience. #. The time chosen for airing an advertisement can suite the target audience, e.g. Toys can be advertised during children@s programme. 2. There is high audience attention and personal impact. 3. The use of the product can be demonstrated and e*plained. 4. The viewers can be invited to respond immediately by dialing a telephone number. =e> 8inema 1. Bigh audience attention is received as there are fewer distractions compared with house viewing of television. 2. Its wide screen gives e*tra scope for more dramatic and realistic impact compared to television. 3. Advertisements on films make full use of the audiovisual effects with =f> <irect mail movements and colors. 1. Audience selectively is practiced as the advertising message will be mailed only to selected target groups. 2. .le*ibility can be e*ercised. 3. There is no competition with the same medium. . !asteful circulation is kept to a 1. There is limited coverage as it is limited to film goers. 2. It is less popular with the event of videotapes, which are used to demonstrate and advertise the use of household products at shopping centers. 3. It is a non&interactive medium, as the audience cannot respond immediately. 1. It is limited only to the literate. 2. It is limited to the mailing list the firm can secure. 3. 8ost of direct mail per prospective client is relatively high. It suffers from the stigma of being classified as C9unk mail@. 3. There is high absolute cost A the cost in producing an airing television commercial is very high and re"uires big budget. . The life span of a given advertising message is short unless it is recorded. #. There is less audience selectively as television commercials tend to reach mass audience, whereas the maga?ine can be more selective.

minimum as it reaches only the =g> +utdoor hoarding and sign e.g. signboard, neon lights, poster market it is intended for. 1. There is an impact of large si?e and colors. 2. .le*ibility can be e*ercised. 3. There is high repeat e*posure. . It is a low cost medium. #. Dow competition is e*pected. 2. The advertising message can reach =h> (amphlet and sample a large number of people. 1. There is intensity of market coverage within a certain area. 2. There is an advantage of personal impact. 3. Advise and e*planation can be =i> Traveling salesman given when necessary. 1. It is effective because it brings products to the homes of consumers. 2. 0alesmen can demonstrate the uses of the product to the consumers. 1. The coverage is limited to certain areas. 2. 0alesman may not be welcome in by home owners. 3. Bigh cost of employing sales =9> !indow display and e*hibition 1. It is attractive to shoppers and e*hibition visitors. 2. $ses and advantages of product can be e*plained and demonstrated. 3. (roducts can be shown to targeted audience . can give further information #. (roducts can actually be seen and e*amined =k> The internet 1. It is an interactive medium where the user can key in input and obtain response immediately. 2. The medium uses multimedia to create realism in advertisements. 3. The advertiser can place the 1. The coverage is limited only to those who surf the internet and visit the website. 2. The advertising message placed has to compete with many other messages for attentions. personal can be incurred. 1. It can reach only shoppers and e*hibition visitors. 2. The fre"uency of holding an e*hibition is not high. 1. There is no audience selectivity. 2. There are creative limitations as messages are limited to simple, short and clear statements. 3. 7o audio& kinetic impact can be made. . It is open to vandalism, especially the posters. 1. It may fall into the hands of those not interested in the product. 2. There is limited circulation as they have to be handed to person to person.

Advertising advertisements in a popular website or he can create his own home page. . The advertising message has longer life span than a television commercial or a radio message as the user can always go back to the website previously visited. #. The advertising message can reach selected target groups. 2. The cost of advertising in this medium is relatively low compared 8atalogues with the television. 1. can give full details 2. can be shown in colors catalogue . can be referred to repeatedly 1. maybe e*pensive to produce;circulate 3. limited to the literate

3. can show all the products in one 2. may reach only a selected group

FA(!ORS AFFE(!"#$ !1E (1O"(E OF -ED"A


The choice of advertising media depends on the following factors% #atu&e o% the p&oduct o& se&*ice 1. The medium chosen must fit the product or the service to be advertised. :oods, especially new ones that re"uire e*planations and demonstrations are best advertised at trade fairs and e*hibitions. Alternatively, salesmen can visit homes to demonstrate the use of household appliances, etc. !omenEs clothes are best shown in fashion shows or womenEs maga?ines. 0ervices such as self&service petrol kiosks and Automated Teller machine =AT/> services are best demonstrated over the television network as television commercials combine sight, sound and movement which can create a more dramatic impact than the other media. ,esides, television commercials can reach a large number of viewers. !a&get ma&2et 1. Target market refers to the group of people that the advertisement is aimed at. :roups of people may differ in terms of income, age or se*. The medium chosen must fit the target group, i.e. the group of people who will likely buy the product or service. .or e*ample, if you are trying to reach the female market, then womenEs maga?ines may be appropriate. If you

are trying to reach to children, then you may select television as the medium especially during childrenEs programmes. E.tent o% ma&2et: )ocal3 national3 inte&national 1. If wide coverage is needed for a certain advertisement, the national newspaper will be a more appropriate medium than the local newspaper. Bowever, the local newspaper will be useful for tapping the local market, e.g. selling used car or renting a room or a house. Television is probably the most popular medium for disseminating any advertising message to the mass market which includes both the literate and the illiterate. .or e*ample, advertisers can reach the world market through live telecast of football or bo*ing which has international appeal. (ost 1. The cost of using the medium should be considered in relation to the budget or the amount of funds available and the circulation of the medium. .or e*ample, a small firm intends to advertise the sale of used cars but it has allocated a small budget for this purpose. As such, we can rule out television as a choice as the cost of advertising on television is very high. Instead, the firm may put a small advertisement in the newspaper. 2. The advertiser should also weigh the relative benefits of the media with their relative costs when making a choice. Although the cost of advertising on television may be high, the si?e of the audience it will reach is great, resulting in lower cost per e*posure. 3. The standard criterion for comparing media is cost per thousand, i.e. the cost of reaching 1666 members of the target audience. 8ost per thousand enables the advertiser to compare the cost of different media, such as television versus radio or maga?ine versus newspaper. Fle.ibility 1. .le*ibility refers to the ease with which the advertiser can change the advertisement so as to adapt to different conditions and circumstances. As a medium, the maga?ine generally has less fle*ibility than the newspaper. As the former re"uires the finali?ed layout weeks before publication, the advertisement in the maga?ine cannot be changed easily, whereas the advertisement in a newspaper can be changed days before its publication. 1adio provides greater fle*ibility as the advertiser can change the advertisement more easily, even on the day the advertisement is aired. #oise 1. The Enoise levelE refers to the level of distraction for the targeted audience. The noise level for an advertisement in the newspaper is great, meaning that other advertisements in the newspaper as well as news reports distract the readerEs attention from the advertising 10

Advertising message. +n the other hand, television commercials encounter a lower level of distraction because the commercials are aired one at a time and can capture the viewersE attention. 8ompared with the newspaper and the television, the cinema encounters the lowest level of distraction as a medium & an advertising message can capture the full attention of the audience in a cinema. )i%espan The lifespan of an advertisement refers to the length of time an advertisement will be on display. <ifferent media have different life spans. .or e*ample, a radio or a television commercial has short lifespan & it will last only for a few seconds. Disteners cannot replay the commercial unless they record the programme. +n the other hand, an advertisement in the newspaper or the maga?ine has a longer lifespan as the advertisement can be read and re& read several times. It can also be filed and passed on to other people.

A#A),S"S OF $" E# S"!UA!"O#S "# !1E (1O"(E OF AD ER!"S"#$ -ED"A


1. Natro is an established company. It intends to market a new brand of instant noodle, Ramee, to people of all walks of life and at national level. The company has found out that a significant proportion of the target group consists of the illiterate and that watching television is more popular than listening to radio among the target audience. The company has allocated a big budget for this purpose. State, with reasons, which advertising medium you would recommend. 7atro could use the television as the advertising medium. Reasons %o& choice =a> 0ince the target audience consists of people of all walks of life, the medium chosen should be able to reach mass target group. !ith this point in mind, we can rule out the maga?ine, the direct mail and the other media that can reach only a small number of people. =b> Bowever, it has been pointed out that a significant proportion of the target group consists of the illiterate. As such, an advertising message in the newspaper may not reach this group of audience. =c> It has been found that watching television is a more popular pastime than listening to radio. !e can assume that television commercials will be able to reach a bigger target audience than radio commercials. =d> 7atro is an established company and it has allocated a big budget for the purpose of marketing this new brand of instant noodle. Assuming that the company can bear the cost of advertising Ramee on television, the following are the advantages of advertising on television

11

over the other media% =i> Instant noodle is a product of general demand as it is likely to be consumed by most people. Television represents the best choice as it can reach a large number of audience including children, the illiterate and those who do not read the newspaper. =ii> Television commercials combine sight, sound and movements which can create a more dramatic impact than the other media. =iii> Advertisements of Ramee on television can be repeated to the point where a sufficient number of viewers have seen the advertisements to create an effective and lasting impact. =iv> The advertisements can be aired at the national level. =v> There is high audience attention. =vi>The time chosen for airing the advertisement for Ramee can suit the target audience, e.g. during snack or meal times. . !n established company intends to market an e"pensive camera. The prospective buyers are likely to be photograph enthusiasts. The general public is probably not interested in this product due to its high price and the use of this camera re#uires high level of competency. The camera has several new features which need to be e"plained to the prospective buyers. State, with reasons, which advertising medium you would recommend. The company could use an up$market maga%ine, a popular photography maga%ine or a &ournal'maga%ine subscribed by photography enthusiasts as the advertising medium. Reasons %o& choice =a> 0ince the target group is e*clusively limited to those who are rich and are very interested in photography, radio, television and other media that can reach mass audience can be ruled out, or it will be a waste. =b> As the new features need to be e*plained to the prospective buyers, radio and television can be ruled out. +n the other hand, print media such as the newspaper or the maga?ine may be more suitable as the media allow the features to be e*plained in great detail. Advertisement in a maga?ine can be directed more specifically to the target audience, i.e. photography enthusiasts who can afford to buy the e*pensive camera whereas advertisement in a newspaper is directed to mass audience. As the advertising message is directed at the intended audience, there will be less waste. =c> The up&market maga?ine will be able to address to those people who have sophisticated and e*pensive tastes. =d> The high "uality of production in the maga?ine will enable the advertisement to bring out the outstanding features of the camera. =e> An advertisement in the maga?ine en9oys a longer life span than the newspaper. =f> The advertising message in the maga?ine can be read in a leisurely manner. It can be 12

Advertising read and re&read. It can also be filed for future reference. (. )iss *ong )eilin intends to advertise for the sale of her used car a three$year old +onda ,ivic. She thinks the prospective buyers will probably be those in the same town that she is staying now. She does not intend to spend a lot of money on the advertisement ,an you advise her on the medium she should choose to place the advertisement- State the reasons for your choice of the medium. )iss *ong )eilin could use the .,lassified !d. column in a local newspaper as the advertising medium. Reasons %o& choice =a> The cost of advertising in a local E8lassified AdE column is very low compared with other media. =b> The target market is focused as those who are interested to buy used cars will look up the E8lassified AdE column. =c> The advertisement in a newspaper can reach a large number of target audiences. =d> Advertising in a local newspaper is generally cheaper than in a national newspaper. =e> The target audience is likely to be those living in the same town as /iss !ong. /. )r Ramasamy intends to sell Indian shawls at a special price by post. ! shawl is a large piece of woollen cloth which is worn by women over their shoulders or head, or which is wrapped around a baby to keep it warm. )r Ramasamy thinks that the prospective buyers are largely Indian women and he has obtained a list of names and addresses of those Indian women who will likely buy this product. If you were )r Ramasamy, which medium will you choose to market your special offer Indian shawls- State your reasons for the choice. )r Ramasamy could use the direct mail as the advertising medium. Reasons %o& choice =a> As the product is demanded only by a specific group of people, the media chosen must address only an e*clusive group. 0o, media such as radio and television which address mass audience will be a waste. +n the other hand, as direct mail reaches selectively, i.e. the prospective buyers and not the general public, this medium will have minimum waste. =b> As /r 1amasamy has already obtained the list of names and addresses of those who will likely buy the product, this list will facilitate in the use of the direct mail, i.e. information about the product can be sent to those on the list and order can be obtained by post, phone or facsimile transmission. =c> There is no competition for the same medium.

13

=d> As the product is a special offer item, /r 1amasamy is not prepared to spend a lot of money on advertising through other more e*pensive media.

-E!1ODS OF APPEA)
<evices and methods of appeal e.g. music, colours, famous people and emotions. 4SEAR(1E5 Social acceptance% A consumer could make more friends if a particular brand of deodorant is used. Economy% ,ike manufacturers advertise their products highlighting the less fuel consumption and more milage. Ambition and success% T he customer can be persuaded that if he buys a particular brand of cloths he could get a better 9ob. Romance% If a woman buys a particular cream she could become more beautiful and attractive. (omedy% If an advertisement is amusing the product shown will be remembered by the consumers and therefore they might buy it. 1ero worship% A well& known personality can be used to advertise the product. It is hoped that consumer will buy the product because of the appeal of the personality. Easy life% ,uying a new brand of washing machine will give the consumer more leisure.

SA)ES PRO-OR!"O# 0ales (romrtion, element of the marketing process that can close the sale of good or services to a potential customer by providing the incentive to buy. 0ales promotion, advertising, and salesmanship are the ma9or techni"ues used in merchandising products to the public. 0alesmanship often takes the form of a face&to&face encounter between the buyer and seller- the presentation is set up to convince customers that the product on sales is essential to their satisfaction. The lack of personal feedback between buyer and seller is 14

Advertising sometimes considered a drawback of the advertising approach. 0elling by telephone, although it is significantly less effective than selling, is still considered an important method of merchandising. 0ince the 1546s, a growing promotional techni"ue has been use in&home shopping programs on cable television channels and computer networks.

D"S!"#(!"O# 'E!6EE# AD ER!"S"#$ A#D SA)ES PRO-O!"O# Advertising aims at persuading customers whereas sales promotion aims at promoting sales. Advertising is done through indoor and outdoor advertising media whereas sales promotion is done through gifts, price reductions, special offers, point of sale, offers, sponsorship and trade fairs and e*hibitions. 0ales promotion might be carried out for a specific period whereas advertising needs to be carried out through out the life of the product.

-E!1ODS OF SA)ES PRO-O!"O# F&ee samples This is the best way of introducing a product. It is very e*pensive as samples are given to every household. P&ice &eduction 8ustomers often e*pect household articles to be offered at reduced prices. 0ome producers distribute coupons to customers. The customer can use these coupons for part payments. (ompetition 0ometimes competitions are held. 8ustomers have to purchase several packets of the producer@s goods to enter the competition. F&ee gi%ts :ifts such as glasses, caps or cups may be given to customers if they buy the producer@s goods. Point o% sales In a trade fair or e*hibitions, the producer of a product has a stall where the salesmen do a free product demonstration and at the spot, sale is done with offers and gifts.

)oss leade&s: In this method the retailers advertise that they are selling a well&known product at a low price. The other products will be charged at a higher price. The consumers visiting the shops buy all the goods. 0o the retailer can increase sales without losing any money.

15

Sponso&ship The manufacturer or a wholesaler or a large scale retailer come forward to sponsor a musical programme, or a film, or a drama, or a sport event on a public media like TF, 1adio, 7ational daily etc., by incurring all the e*penditure to conduct the programmes. The manufacturer or a wholesaler or a large scale retailer advertise their product;service while a film, or a drama, or a sport event on a public media like TF, 1adio, are either telecast or broadcast so that they can draw public attention. Special o%%e&s <uring festivals many traders announce special offers. These offers carry a special discount or a free service during a specific period of time. 8ustomers tend to buy more when there are offers. )*ample, during 7ew Gear eve, manufacturers announce 26 A 36H special offers on certain range of consumer goods like home appliances, consumer durables and fabric items.
!RE#DS "# AD ER!"S"#$

D"$"!A) '"))'OARDS This is an advertising media. In this media, very large screens are used to display the advertisement. <igital billboards are placed in busy streets so that the advertised messages can be reached to large number of people. The information about the product is given orally to passersby.

"nte&net This is the recent development in communication. Through !orld !ide !eb, information can be browsed. 7owadays, advertisers wish do advertise through Internet as ads can be seen by millions through out the world. The internet 1. It is an interactive medium where the user can key in input and obtain response immediately. 2. The medium uses multimedia to create realism in advertisements. 3. The advertiser can place the advertisements in a popular 1. The coverage is limited only to those who surf the internet and visit the website. 2. The advertising message placed has to compete with many other messages for attentions.

16

Advertising website or he can create his own home page. . The advertising message has longer life span than a television commercial or a radio message as the user can always go back to the website previously visited. #. The advertising message can reach selected target groups. 2. The cost of advertising in this medium is relatively low compared with the television.

E-(O--ER(E
)&8ommerce, abbreviation for electronic commerce, usually defined as the conduct of business online, via the internet. $ntil recently, e&commerce was limited mainly to large companies and their suppliers, who connected their computer together to speed up ordering and payment system. Today, millions of people are involved in e&commerce on the internet when, for e*ample, they visit !orld !ide !eb sites to buy books or 8<s, order flowers or pi??as, or check their bank accounts. In the narrow definition of e&commerce, the term covers the buying and selling of goods and services using computer communications. 0uccessful e&commerce ultimately leads to some form of payment, and ideally this will involve Ielectronic fund transferJ =).T>% in other word, the payment will be made via an electronic message, not in physical form such as cash or a che"ue. Ad*antages o% E-comme&ce to the custome&s 1. +nline catalogues can be viewed 2. Their is much bigger choice for products 3. (roducts review can be obtained before we buy the goods . +rders can be placed 2 hours a day #. :oods or services are usually cheaper on internet as the middlemen are cut 2. +nce the customer has placed an initial order, the customer details are stored and makes shopping online very fast

17

3. Gou can buy goods and services from anywhere in the world Ad*antages to the t&ade&s 1. :lobal marketing is easy 2. 8an offer goods at highly competitive price 3. (ayments can be collected easily and fast through online . /iddlemen are not re"uired so the selling cost can be cut down #. Traders can provide or demonstrate any product information through online Disad*antages to the custome&s 1. The product seen on online may not be matching with the product specification 2. 7o customer and trader direct dealing Disad*antages to t&ade&s 1. Increase through sales is too difficult as the accessibility to internet for the customer is too narrow 2. Absence of customer personal service can discourage online shopping 3. The sales cost through online shopping can be more when compared to direct . selling

18