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Advertising is a form of communication that typically attempts to persuade potential customers to
purchase or to consume more of a particular brand of product or service.
Aims of Advertisement
Higher sales.
Introducing new products.
Information on improvement or change in product.
Spreading brand name.
Improve company’s image.
Purpose of Advertising
To Inform
When a new product is introduced.
Aimed to create demand of new product.
To Persuade
To persuade people to buy a product of a particular brand.
To Remind
To remind people of existing products.
To draw attraction of customers.
Types of Advertising
Informative Advertisement
Informing the public of a new products.
For example a new car launch.
Persuasive Advertisement
Telling people that a particular brand is superior to all other brands.
Reminder Advertisement
Adds repeated again and again.
Product Advertisement
Is the promotion of a particular product or service.
For example “Our mineral water is purified by the latest technology”.
Institutional Advertisement
Concerned with the promotion of overall image of the company.
For example “Our company contributes to keeping the country clean”
Collective/Generic Advertisement
Advertisement of a product not a particular brand.
For example “Drinking Milk is essential for children”
Financed by all the producers of the product.
Competitive Advertisement
Carried out by different producers encouraging public to buy their brand.
For example Pepsi.
Direct Advertisement
Advertisement without involvement of any third party.
For example through Direct Mail, Door-to-Door canvassing and person-to-person basis.
Indirect Advertisement
Done with the involvement of third party.
Used when advertiser do not wish to appeal to a particular group of people buy to masses.
For example though Television and Radio.
Advantages and Disadvantages of Advertising
Of Direct Advertising
Pros:
Personal contact. Results in better communication of the message.
Suitable for product requiring lot of advise and explanation.
Cheap of smaller market.
Demonstration of product is possible.
No wasteful circulation. Limited to only target customers.
Cons:
Limited coverage. Lack of man power.
People do not take this type of advertisement seriously.
Of Indirect Advertising
Pros:
Wide coverage through mass media.
Low unit cost.
Different tools of appeals can be used
Cons:
Impersonal.
High absolute cost.
Wasteful circulation.
To Producer
Pros:
Increases sales.
Economies of scale through increased sales.
High profits.
Bigger market share.
Brand image is created.
Cons:
Increase in cost.
May result in price war among advertisers.
Loss in case of unsuccessful advertisement.
Imitation brand.
To Customer
Pros:
Introduction to new products.
Awareness of different brands in the market.
Lower prices due to economies of scale.
Better quality goods at cheap rates due to competition.
Certain goods and services are made available to the public at very low prices because of their income form
advertisement for example newspaper and magazines.
Cons:
Higher prices of goods. Price of advertisement is added to the product.
Misleading claims.
Imitation brands.
Customers become confused.
Unnecessary purchases.
Advertising Tools/Devices
Techniques used by the advertiser in his promotion to appeal their target market, develop their interest, activate their desire and
induce action.
1. Gender
2. Noise
3. Music
4. Suspense
5. Economy
6. Adventure
7. Manliness
8. Motherly love
9. Family Love
10. Offers
11. Comic/Animation
12. Contract
13. Safety
14. Endorsement of famous personalities
Advertising Media
Newspaper
Advantages Disadvantages
Wide coverage Wasteful circulation
Daily circulation Reach only literate people
Short life
Different rates depending on
size and location of ads
Poor quality advertisement
Low cost per exposure No audio/visual impact
Magazines
Advantages Disadvantages
Long life Inflexible
Better quality Infrequent
Targeted No audio/visual impact
Still cheap Suitable only for literate people
Low cost per exposure
Radio
Advantages Disadvantages
Wide coverage No visual impact
Audio impact Exposure life is very short
Can reach illiterate people Ads fail to get attention
Targeted. (Ads between programs) Becoming less popular
Low cost
Television
Advantages Disadvantages
Audio and Visual impact High absolute cost
Lost cost per exposure Wasteful circulation
Wide coverage Fail to get attention
Factors affecting choice of Advertisement Media
1. Cost Budget
2. Type of message Includes detail or not
3. Type of product Requires demonstration/Requires Audio and visual impact
4. Target Teenagers/Housewives/Professionals
5. Market Local/National/International
6. Government policy Does government allow such types of ads
Advertising Agencies
Account Service Department
Account in advertising means business or customer.
Creates advertising plan by taking basic information about client’s business, marketing strategies, budget and target market.
Creative Department
Responsible for thinking the theme and writing the dialogues/jingles.
Media Department
Makes sure that the message reaches the required market.
Responsible for displaying the ad via suitable media.
Production Department
Responsible for set designing and shooting of ad.
Controlling Advertisement
1. Government Legislation
2. Advertising Standard Authority: Independent body which makes it sure that any advertisement which is publicized should not hurt audience.
