IMPACT OF ADVERTISING ON

SALES OF NEW PRODUCT

Riya. R. Panchal
HPGD/OC16/1484

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Introduction
Advertising is one of the four promotional
tools companies use to direct persuasive
communications to consumers or buyers and
the general public. 
Advertisements can also be seen on the seats
of grocery carts, on the wall of airport
walkways, on the sides of buses, airplane and
train. Advertisements are usually placed
anywhere an audience can easily and/or
frequently a access visual and/or video.
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 MEANING OF ADVERTSING

Advertising is an audio or visual form

of marketing communication that employs an openly
sponsored, non-personal message to promote or sell a
product, service or idea.
Sponsors of advertising are typically businesses wishing to
promote their products or services.
It differs from personal selling in that the message is non-
personal, i.e., not directed to a particular
individual. Advertising is communicated through various
mass media, including traditional media such as
newspapers, magazines, television, radio, outdoor
advertising or direct mail and new media such as search
results, blogs, social media, websites or text messages.

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 DEFINITION ANDMEANING
OF PRODUCT ADVERTISING
Definition: A product is the item offered for sale. A product can
be a service or an item. It can be physical or in virtual or cyber
form. Every product is made at a cost and each is sold at a price.

Meaning: Product advertising is any method of communication

about the promotion of a product in an attempt to induce
potential customers to purchase the product. Advertisement
usually requires payment to a communication channel. The
general objective is to increase brand awareness or to
demonstrate the differences between product and competing
products in order to sell them.

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TYPES OF ADVERTISEMENT AND IT’S IMPACTS

 NEWSPAPER
 MAGAZINE
 RADIO
 TELEVISION
 DIRECTORIES
 OUTDOOR AND TRANSIT
 DIRECT MAIL, CATALOGUES AND LEAFLETS
 ONLINE

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TYPES OF ADVERTISEMENT
1) NEWSPAPER
Newspaper advertising can promote your business to a wide range
of customers. Display advertisements are placed throughout the
paper, while classified listings are under subject headings in a
specific section.

Impact on sales of new products :

Each advertisement type works depending on the target users.
Newspapers are read by most of the people and its main aim is to
provide latest news and not focus more on advertisements. Hence,
we find one or two pages dedicated to advertisements such as
classifieds and some specific sections like property, business news
etc.

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 2) MAGAZINE
 Advertising in a specialist magazine can reach your target
market quickly and easily. Readers (your potential customers)
tend to read magazines at their leisure and keep them for longer,
giving your advertisement multiple chances to attract attention.
Magazines generally serve consumers (by interest group e.g.
women) and trade (industry/business type e.g. hospitality).
Impact on sales of new products :
 Magazines have very limited audiences. Magazines are mostly
read by youngsters and contains advertisements related to
lifestyle. Right from food, travel, cosmetics, clothing we get to
see every content related to lifestyle. For example famous
cosmetic company such as L'Oréal always think of targeting
ladies by employing models for their advertisements.

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 3) RADIO
 Advertising on the radio is a great way to reach your target
audience. If your target market listens to a particular station,
then regular advertising can attract new customers.
Impact on sales of new products :
 If we think radios are outdated then it might not be true.
Advertisements that do not require pictorial representations are
posted on radios. This helps companies to save money and
reach their target audiences. thinking little out of box we see
that in metropolitan city like Mumbai traffic issues are rising.
This affects positively to radio companies as more the traffic
more the vehicles and more chances of people listening to
radio.

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 4)TELEVISION
Television has an extensive reach and advertising this way is
ideal if you cater to a large market in a large area. Television
advertisements have the advantage of sight, sound, movement
and color to persuade a customer to buy from you. They are
particularly useful if you need to demonstrate how your
product or service works.
Impact on sales of new products :
 Television has been a staple in advertising since its inception.
Audiences tune in and engage with televised content while
attracting advertisers. During major televised events like the
Super Bowl, the advertisements are also a major event. The
medium has influenced the world of advertising heavily, and
although other media are competing for those ad dollars,
television remains a viable and effective outlet.
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 5)ONLINE
Being on the internet can be a cost-effective way to attract new customers.
You can reach a global audience at a low cost. Many customers research
businesses online before deciding whom to buy from.
Impact on sales of new products :
his study examines the effect of online reviews on new product sales for
consumer electronics and video games. Analyses of panel data of 332 new
products from
Amazon.com over nine months reveal that the valence of reviews and the
volume of page
views have a stronger effect on search products, whereas the volume of
reviews is more
important for experience products. The results also show that the volume of
reviews has
A significant effect on new product sales in the early period and such effect
decreases
over time.

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How to Promote a New Product or Service
 Offer Customers an Exclusive Preview
 Social Media Contests
 Email Marketing
 Face book Ads
 In-Store Promotions
 Host an Event
 Offer an Upgrade or Trade-In
 Share Customer Reviews
 Share on Social Media

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 SIGNIFICANCE OF THE STUDY
 As stated earlier in this study, product advertising is one of the
vital tools used by companies to promote the sale of their
products. Its importance in creating immediate impact on the
attitude of the consumers, as well as in generating demand
cannot be over emphasized.
 Again this background, therefore, this study will be of some
immense significance to companies, especially breweries,
advertising agents, consumers and academicians.
 The information contained in this study will disclose some
intrinsic functions of advertising to companies. It will further
unveil some unique qualities of advertising, its  types and
objectives to companies. These vital issues on advertising  will
help companies design or articulate an effective product
advertising policy which can achieve their target sales volume.
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THE FUTURE OF ADVERTISING INDUSTRY IN INDIA

Indian advertising industry has a bright future in the

years to come as is evident from what it has done and
what it has as a potentiality to do for India in socio-
economic, cultural, ethical and educational spheres.
However, A host of issues related to the future of the
advertising business over time (e.g., network television)
and others flourish (e.g., database marketing
communication). Such ebb and flow in terms of the
advertising business is predictable and healthy just as the
evolution of a species is in the natural world. Four critical
arenas of change are briefly examined: (1) media; (2)
legal; (3) consumer and, (4) Creative.
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OBJECTIVE OF THE STUDY
The broad objective of this study is to examine the major
effects and the role of product advertising on sales
volume. Other operational objectives of the study
includes the following;
To identify the common form of advertising being used
in the industry.
To identify the common media of advertising being
used in the industry.
To examine the impact of product advertising on the
buying attitude of buyers.
To examine the effect of product advertising on growth
and profitability of companies.
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THANK YOU

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