DJM 003 –

FUNDERMENTALS
OF ADVERTISING
LESSON 1:
UNDERSTANDING THE CONCEPT OF ADVERTISING
Defi nition of Advertising
The re ar e diff e ren t de fi n iti ons :

The word ad ver ti sin g c om es f or m t he L a ti n word "a dve r t ere m e an in g ” t o tu rn t he m in ds of

towar ds .“

One of th e ea rl ies t defi n iti ons of adve r t is in g was : ‘ Th e dis se m ina ti on of i nf or m at ion c on ce rn ing
a n i de a, s er v i ce or produ ct to com p el ac t ion i n a cc or da nc e with t he in te re st of t he a dver ti se r ’.

A ccor din g to A m er ic an M a rket in g A ss oci at ion "a dve r ti si ng is a ny pa id form of n on- pe rs on al

pr ese nt at ion an d prom oti on of id ea s, g oods a nd se r v ic es by a n i den ti fi ed spon sor“

A dve r t is ing c an a lso be defi n ed a s a p ai d d iss em i na ti on of in form a ti on th roug h a var ie ty of

ma ss com m u ni ca ti on m e dia t o m oti vat e a d esi re d a c tion .

Thu s, Adve r t is i ng ca n be b es t de fi ne d a s: ‘a ny pa i d for non-pe rs ona l c om m unic a ti on

us ed w it h p e r s uas i ve int e nt by i de nti fi ed s p ons or s t hr oug h va ri ous m e di a t o pr om ot e
go od s , s e r vi ce s a nd i de a s , et c .’

.
Key Elements of Advertising
C ommuni ca t io n - A d ver ti sin g i s m ea ns of
ma s s com m un ic at ion re ac hi ng th e m a s ses
Informa t ion - A dve r t is ing e nde avors t o
d is pens e a spe c ifi c c ust om m a de m es sa g e to
t he in te nde d au die nce .
Any fo r m - A dver ti sin g ca n ta ke a ny of t he
f ollowi ng form s of pr ese nt at ion th at be st
conve y s the m e ss ag e : A sig n, s y m bol,
i ll us tra tion , ver ba l m ess ag e, e tc
N on-p e rs o nal - A d ver ti sin g i s an
i ndi re ct f or m of c onvey i ng m es sa g es
a dd res si ng the m a ss es a s op posed t o
p er sona l sel li ng .
G ood s , se r vi c es o r id e a s - A dve r ti si ng
pr om ot es g oods , se r v ic es an d ide as a s well
a s par ti es , pl ac es , ev ent s an d i ns tit ut ions .
For Act i on – A dve r ti si ng se ek s to t ri g g e r a
c er ta in a ct ion an d /or rea c tion f rom t he
in te nd ed au die nc e.
Pa id for - A d ver ti sin g i s al way s pa id for, a n
e lem e nt t ha t d is tin g ui sh es i t f rom f re e
pu bli ci t y.
By a n Id en ti fi e d Spo ns or – Wh oever i s
a dver ti si ng is a lway s k n own .
NOT E:

Ad ver t i si ng i s us ed for c om m uni c at i ng

bus i nes s infor ma t io n t o t he p r es e nt an d
pr os p e ct ive c us to me r s .

It usua l ly p rov id e s in for ma t i on a b out

the a d ve r ti s ing fi r m, i t s pr o duc t
qua l it i es , p l ac e of ava il a bi l it y o f i ts
pr od ucts et c .

Ad ve r ti s em e nt is ind i sp ens a b le for

b ot h t he s el l er s a nd t he buye r s .
H ow e ver, it i s m or e im p or t ant for
t he s el le r s . In t he mod e r n a ge o f
l ar g e s ca l e p r oduc t ion , pr od uc er s
c an not thi nk o f pus hi ng s a le of the i r
p r oduc t s a nd s er v ic es wi tho ut
a d ver t i si ng t hem .
Objectives of Advertising

The 3 ke y obj ect ive s of a dve r t is ing a re: c ) To Re m ind

Rei nf orc e t he bra nd m es sa g e a nd to r ea ss ure

a) To Infor m
t he exi sti ng a nd pote nt ia l c us tom er s ab out
A dver ti se m en ts ar e use d t o i ncr ea s e t he
t he bra nd v i sion .
b ran d awar ene ss a nd bra nd exposu re in
t he Ot he r ob je c ti ves i nc lu de :
t a rge t m a r ket b y In form i ng th e p oten ti a l
B ra nd B ui ldi ng
cu stom e rs a bout th e bran d an d i ts
Pro tec t Im a g e
p rodu ct s
In cr ea si ng Sal es
b) To Per s ua de Ret ai n L oya lty
Per sua di ng cu st om e rs t o pe r f or m a C r ea tin g De m an d
p ar ti cu la r ta sk s uc h as bu y i ng o r t r y ing In cr ea se Sup por t
t he pr oduc ts a nd se r v ic es off ere d, a nd /or E ng ag e m en t
d e ve l o p a f a v o ra b l e a t t i tu d e t o wa rd s t h e E xpan di ng Cu st om er B as e
brand. C h an g in g C u stom e rs ’ a tt it ude s
Importance /Functions of Advertising
Pr omo t ion of Sa le s : A g o od ad ver ti sin g
campa ig n h el ps in win ni ng new cu st om ers
both i n the na t iona l a s we ll a s i nte rn at ion al
ma rket s b y i nfor m ing a nd pe rsu ad in g t hem .
Ma s s P rod uc ti on : A d ver ti sin g e nc oura g es
pr od uc ti on of g oods in l ar g e- s ca le be ca us e
th e bus ine ss fi rm k nows th at it wil l be a ble
to sel l on l a rg e- s ca l e wi th th e hel p of
a dver ti si ng . M a ss pr oduc ti on r edu c es th e
cos t of p roduc t ion per u nit by t he ec onom ic a l
us e of va riou s f a ctor s of p rodu cti on.
C r e a t i o n o f G o o d Pub l i c Im a g e : I t b u i l d s u p
t h e r e p u t a t i o n o f t h e a d v e r t i s e r. A d v e r t i s i n g
e n a b l e s a b u s i n e s s fi r m t o co m m u n i ca t e i t s
a ch i e ve m en t s i n a n e ff o r t t o s a t i s fy t h e
cu s t o m e r s ' n e e d s . T h i s i n cr e a s e s t h e go o d w i l l
a n d r e p u t a t i o n o f t h e fi r m w h i ch i s n e ce s s a r y
t o fi g h t a g a i n s t co m p et i t i o n i n t h e m a r k et .
In t r o d uc t i o n o f Ne w Pr o d uc t : A b u s i n e s s
e n t e r p r i s e ca n i nt r o d u ce i t s e l f a n d i t s p r o d uc t
t o t h e p u b l i c t h r o u gh a d v e r t i s i n g . A n e w
e n t e r p r i s e ca n 't m a ke a n i m p a ct o n t h e
p r o s p e c t i ve cu s t o m e r s w i t h o u t t h e h e l p o f
a d ve r t i s i n g.
 Importance /Functions of Advertising
Res ea r ch : A d ver ti sin g s ti m ula te s re se ar ch a nd
de ve lopm e nt a ct iv i ti es . Eve r y fi rm tri es to
diff e re nti at e it s p roduc t fr om t he su bst itu te s
Sup p or t t o Pr e s s : A d ver ti sin g prov id es
avai la bl e i n th e m a rket t hr ou g h a dver ti sin g . I f a
an im p or t an t s our ce of re venu e to t he
fi rm d oe s not en g a g e in re se ar ch a nd dev elopm e nt
publ is he rs a nd m ag a z ine s. It e na bl es to
acti v it ie s, i t wi ll be out of t he m ar ke t in th e ne ar
inc re a se th e ci rc ula ti on of t he ir
fu tu re.
publ ic a ti on by se ll ing t he m at l owe r

Ed uca t i on of Pe op le : A dve r t is ing e duc at es th e rat es . A dve r t isi ng is a ls o a sou rc e of

pe op le abou t new produ c ts an d the ir u ses . re ve nu e for TV n etwork . Su ch i nc om e

A dve r ti si ng m es sa g e ab ou t th e u ti li ty of a pr odu ct cou ld be us ed for inc re a sin g th e qu a lit y

en ab les t he peopl e to wi den t hei r k nowled g e. It of p rog ra m s an d e xt en din g covera g e .

ha s al so h el ped pe op le in a dopti ng ne w way s of li fe

an d giv i ng - u p ol d h ab its .
Attributes of good /successful advertising

6 . H av i n g a p p e t i t e a p p e a l
1 . B e ing li ke ab le
7 . O ff e r i n g g o o d d e a l s
2 . B e ing be lie vabl e
8 . M o t i va t i n g p u r c h a s e i n t e r e s t
3 . B e ing ea sy to und er sta nd
9 . I m p r ov i n g t h e c h a i n ' s i m a g e
4 . B e ing un iqu e & d ist in ct ive
1 0 . O v e ra l l b a s i s

5 . Pr ov i din g n ew i nf orm a tion

What is included in advertising?

( i ) Th e i nf orm a tion i n a n ad ver ti sem e nt sh oul d be ne fi t the bu yer s. It s houl d g ive th em

m ore sa ti sf ac t or y expen di tur e of t he ir ru pe es.

(ii ) It sh oul d s ug g e s t be tt er sol ut ions t o th eir p roble m s.

(ii i) Th e c on te nt of t he a dve r ti se m ent i s wi th in t he con trol of th e a dve r tis er, n ot t he

m ed iu m .

(iv ) A dve r t isi n g wit hout p ers ua si on i s ine ff ec ti ve. A dv er tis em e nt th a t f a ils t o in fl uen ce

anyon e, e ith er i m m edi at el y or in t he fu tu re is a was te of m one y.

(v ) Th e fu nct ion of ad ver ti sin g i s to inc re as e th e p rofi ta ble s al es volu m e. Th at is ,

a dver ti si ng expe nse s sh ou ld not in c rea se d ispr opor t ion at ely.