ADVERTISING

• Definition
• Features
• Objectives/functions
• Evolution of advertising
• Growth of advertising in India
• Active participants in advertising
• Benefits of advertising
• Classification of advertising
Definition
• Advertising is creative process, which involves among other
things, planning, preparing and placing advertisements in the
media to achieve desired objectives.
• “Any paid form of non-personal presentation and promotion of
ideas, good or services by an identified sponsor.”
-by AMA
“Advertising is the structured and composed non-personal
communication of information, usually paid for and usually
persuasive in nature, about products(goods, services and ideas)
by identified sponsors through various media”.
-by William F. Arens
Features of Advertising
Process

Paid/Controlled Form

Non-personal Presentation

Ideas, Goods and Services

Identified Sponsor

Art, Science and Profession

Element of Promotion -Mix

Features of Advertising Contd…
Influences Diverse Groups

Objectives of Advertising

Universal Usage

Consumer Choice

Builds Image

Target Audience

Creativity
Objectives/Functions of Advertising
• Brand awareness is vital, especially at the introduction stage.
To Create Awareness • TOM awareness may facilitate the purchase decision , especially in the case of
impulse purchases.

To Develop and Reinforce • Reinforcement may lead to brand loyalty.

Attitude • Reinforcement fortifies or strengthens the consumer behaviour.

• Brand image is the perception of the brand in the minds of target customers and
To Develop Brand Image others.

To Differentiate the Product • The ads highlight the special features of the product vis-à-vis competing brands.

To Persuade Customers • Advertiser needs to persuade customers to buy the products.

To Support Other Elements • Sales promotion offers would be considered as genuine and customers may buy
of Promotion-Mix the products.
Objectives/Functions of Advertising
Contd……
To Promote Social • Social advertising by the government agencies and by business
Welfare firm make people aware of the social issues or social evils.

To Stimulate • The generic ads may help to increase the demand for generic
Demand products such as milk, eggs, tea, and so on.

• To repetition of ads, a business firm reminds its customers to

To Act as Reminder continue buying its brands.

To Enhance • The advertisers through corporate image(institutional)

Corporate Image advertising may highlight special features of the company.

To Gain
• Advertising may enable a firm to gain competitive advantage in
Competitive the market.
Advantage
Evolution of Advertising
 The idea of advertising emerged when
people started to trade.

 People advertised to make their products

known by larger groups of people.

8
Early Forms of Advertising
1. Trade Marks
In olden days, artisans used to inscribe on the goods
such as pots, wooden tools, etc. certain marks or
symbols such as stars, moon, tiger, etc. such marks
came to be regarded as trade marks.
 FIRST EXAMPLE
2.Signs Boards
 Some traders like the Phoenicians, painted
commercial messages on rocks along the trade
lanes.
 Excavations at Pompeii reveal that each
little shop had an inscription on the wall next
to the entrance.
 The gladiator contests announcement on
papyrus or wall are regarded as the first
examples of advertising.
Advertisement on a wall in
Pompeii, prompting a gladiator contest

11
3.Town criers
• Men were paid to circulate through the streets of
the city to inform people about a product or
service.
• The Greeks were among those who relied on
town criers. They used them to announce the
arrival of the ships with
 Later they became the first medium for public
announcements in many European countries

13
 Invention of the press is the base of modern
advertising.

 It gave rise to mass media in the form of

newspapers and magazines.

 It is easy to produce and cheaper than

handcoppied messages.

14
Johannes Gutenberg Printing press
15
 The first printed advertisement was a
handbill written by William Caxton in 1477 and
hanged on the wall of a church.

 It was the of his book ‘The Pyes of

Salisbury Use’

16
 The first continuously published newspaper in America
was the Boston News-Letter

 The first issue was distributed by John Campbell on April

24, 1704.

 The first paid newspaper advertisement was an

announcement selling real estate on Oyster Bay, Long
island on May 8, 1704.

17
18
 The first advertising agency was founded in this
era by Volney B. Palmer.(1840)


Palmer bought large amounts of space in
various newspapers at a discounted rate then
resold the space at higher rates to advertisers.

19
Volney B. Palmer An advertisement of
Palmer’s Agency
2
 The invention of radio has a great role in the
historical development of advertising

 Radio is the first broadcasting medium that

became universally popular.


Radio advertisements reach to mass
more easily

21
 First wireless message was transmitted in 1906.
First radio station was founded in 1920 in United
States.

22
 WEAF of New York is credited with airing the first
paid radio commercial in 1922, advertising an
apartment complex.

 Radio programming and advertising peaked during the

1930s and 1940s.

23
• In the early days, the commercials were read live
on the air.
• In1940s,big companies started to make the
sponsorships of whole programs.
 The TV is the greatest step in the history of
advertising;

 It is the first audio-visual medium.

 People were already familiar with radio

and it was the radio with pictures.

25
• The first public TV demonstration in the USA
occurred in New York in 1939.
• The first advertisement broadcasted in 1941.
 It was an advertisement of Bulova
watch company.

27
 The internet brought a new dimension to
advertising.

 Immediate publishing of information

 Immediate reaction to advertisement(online

shopping)

 It is easy to reach anytime.

28
 The first examples of online
advertisements were in form of
banner.

29
 The pioneer of online advertising
is HOTWIRED.

3
 The first web banner sold by
HotWired and paid by AT&T,
It was put online on October 27,
1994

31
 Today, via internet, it is possible to reach
large groups of people easily.

 Social networks
 E-mails
 News portals
 Mobile

32
33
 Mehmet Sinan ERGÜVEN
34
ACTIVE PARTICIPANTS IN ADVERTISING
• Advertisers
• Advertising Agencies
• Audience
• Advertising Media
• Advertising Production Firm
• Government Authorities
• Research Firms
• Self-Regulatory Bodies
BENEFITS OF ADVERTISING
• Benefits To Manufacturer
• Benefits To Consumers
• Benefits To Retailers
• Benefits To The Salesmen
• Benefits To The Society
Benefits To Manufacturer

• Introduction of product
• Modifies Attitude
• Builds Image
• Builds Loyalty
• Market Expansion
• Corporate Image
• Economies of Scale
• Improvement in Quality
• Avoid Seasonal Sales Fluctuation
• Facilitates Distribution
• Facilitates Promotion
• Facing Competition
Benefits To Consumers
• Information
• Acts as Reminder
• Lowers Product Prices
• Better Quality Products
• Higher Standard of Living
• Guard against Substitute
• Education to Consumers
• Modifying Attitudes
• Consumer Satisfaction
• Saves Time in Shopping
Benefits To Retailers
• Quick Sales Turnover
• Store Image
• Disposal of Old Stock
• Develops loyalty
• Helps to Face Competition
• Makes Selling Job Easier
• Good Appearance of the Store
• Increase Profits
• Information about changes
• Fixed Prices
Benefits To The Salesmen

• Makes Selling Easy

• Helps to Book More Orders
• Sale of Non-advertised Brands
• Sense of Pride
• Respect
• Buyer’s Feedback
Benefits To The Society

• Higher Standard of Living

• Economic Development
• Finances Mass Media
• Provides Entertainment
• Public Service Advertising
• Provides Employment