Unit 2:
Advertising Business
By – Akriti Bhattarai
Advertising
It is paid form of non personal presentation of ideas, products or services by
an identified sponsor.
• Print media
• Visual or Audio media
*Features of Advertising:
a. Mass communication
b. Non personal (No face to face communication)
c. Provide education
d. Speedy communication (fastest mode)
e. Sponsored (By identified person or organization)
f. Communicated through words, signs symbols or illustration
g. Can be local, national or international
Objectives of advertising:
i. Informing: Provide information about quality, features, size, style,
price utility and place where it is available.
ii. Persuading: Customer should be made confident
iii. Reminding: Customer cannot remember the name of the company
or products. Thus company always should be effortful to remind
customers about its products.
iv. Reassuring: Customer may worry about their buying decision. Thus
seller should reassure the customers.
v. Image building: Builds brand image in target market.
vi. Educating the customer
Elements of Advertising
1. Mission
• Information
• Persuasion
• Reminder
• Reinforcement
• Sales goals & so on
2. Money
• Developing cost
• Media cost
• Advertising frequency
• Market share
• Stages in product life cycle and so on
3. Message
• Message generation
• Message evaluation and selection
• Message execution
• Social responsibility review
4. Media
• Reach, Frequency, impact
• Major media types
• Media timing
• Geographical media allocation
5. Measurement
• Communication impact
• Sales impact
• Cost
Role of advertising
Benefits to manufacturer: Benefits to middlemen:
a. Communication a. Increased sales and profit
b. Image building b. Product assortment (range and varieties
c. Brand loyalty of product)
d. Market share c. Customer pull
e. New segments
f. Counter rumors
Benefits to customers: Benefits to society:
a. Better buying decision a. Education
b. Incentive for action b. Employment
c. Reminder c. Economic impact
d. Impact on attitude and behavior
Types of Advertisements
1. Based on geography:
• Local
• National
• International/ Global
2. Based on medium
• Newspaper
• Radio
• Television
• Hoarding boards
• Internet/ Social Media
3. Based on audience
• Consumer Advertising
• Trade Advertising (stimulate middlemen, to resell. Eg franchising)
• Industrial Advertising (Industrial product by electric marketing)
4. Based on product
4. Product (tangible)
5. Service (hotel, airlines, network, etc)
6. Idea (visit Nepal 2020, save water, save tiger)
7. Experience (rafting,
5. Others
• Political advertisement (Ab ki baar Modi sarkaar, Fir ek baar Modi sarkaar, etc)
• Financial Advertisements
Social ethics of Advertising
• Advertising should be truthful
• Advertising should treat consumers fairly based on nature of the
audience to whom ads are directed
• Advertising should follow legal procedure
• Advertising should mention disclaimer if necessary
Some social ethical issues:
o Creating misleading advertisements
o Advertising makes people to buy more than they can afford
o Advertising increases the cost of goods and services
o Advertising to children is unethical
Advertising Business
• It is a marketing activity that can help you to reach out to potential
customer and encourage them to buy your product
• It is a business dedicated to create, plan and handle advertising and
sometimes other forms of communication for its client
• Organization of advertising business can be:
Centralized organization system (advertising department is created)
Decentralized organization system (Organized according to product line and
brand)
In-house advertising agency system (created in the organization structure)
Key players in advertising business
1. Advertiser:
Marketing firms, Resellers, Governments, Social institution and individual
2. Advertising agencies:
Creative, Production, Media Planning and scheduling, financial and support services
3. Media
Newspaper, magazine, radio, Television, Cinema, Billboards, Posters, direct mail, sales
promotion, brochures, Internet/ Social Media
4. Facilitating institution
Marketing research agencies, modelling agencies, painters and artists, printing press and
movie companies
5. Reactive role
Awareness, feedback, review, attitude change, brand loyalty
Role and Function of Advertising Manager
1. Advertising function
a. Administering advertising department
b. Preparing the advertising budget
c. Determining advertising efforts
d. Hiring the advertising agency
e. Evaluating the advertisement results
f. Engaging in creative thinking
2. Managerial function
a. Administering advertisement department
b. Setting goals for advertisement
c. Making advertising understandable
d. Participation in company management
e. Representing the organization
f. Control of advertising expenditure
