Chapter 5
Advertising
Why advertising is essential to any kind of business
• The global marketplace is continuously changing, and companies
should always strive to adapt to changes and advancements to remain
relevant and competitive.
• Having said that, when running a business, it is crucial to effectively
manage its different areas, such as customer service, finance, and
operations.
• Several factors are known to contribute to business success, like
effective communications, strategic business plans and decisions,
great leadership, and continuous quality enhancement. However, an
element of business that should never be neglected and be put at the
forefront is advertising.
Cont…
• Advertising is an element of business that attempts to shape or
persuade the purchase decision of customers and potential clients.
Companies must establish their target market before embarking on
any advertising campaign.
• Defining the target market is crucial because it not only helps make
advertising efforts more effective, but it also lets you identify
opportunities to improve your products and help your business
succeed
How Is Advertising Different From Marketing?
• Advertising and marketing both play essential roles in business.
However, many people utilize the terms “advertising” and
“marketing” interchangeably. Although the two may seem
synonymous, there is a big difference between them.
Cont…
• Marketing is an umbrella term for all advertising and promotional
efforts of the company.
• Businesses utilize marketing as a process or system to share their
products, services, and ideas.
• While advertising provides exposure to a company’s brand, marketing
is about letting the target market experience the brand.
• Advertising is typically done with signs, brochures, commercials,
direct mailings or e-mail messages, personal contact, etc.
Cont…
• Advertising falls under the marketing process, the same way that
public relations, market research, social media, content marketing,
selling, and brand management are also considered subsets of
marketing.
• Advertising is the what, where, and how the company shares its story
to its audience. It supports marketing by creating interest and evoking
awareness in the minds of a company’s target audience.
Different Types of Advertising
• Man has used advertising since the 1900s. It is an essential element in business
marketing.
• There are different types of advertising, but this article will sort out these types into
two categories: traditional and modern advertising.
• Traditional Advertising
• Traditional advertising delivers commercial messages and promotional information to
mass audiences.
• Before there was web-based advertising, businesses promoted their products and
services through:
•Billboards
•Print advertising (newspaper, magazine)
•Broadcast media (television, radio)
•In-store displays
•Custom Direct mai
Modern Advertising
• Modern technology has changed how companies do business. Customers
now rely on the Internet to make buying decisions, thus businesses have
become more ingenious when it comes to promoting their brand.
• Also, advertising methods have changed how enterprises promote their
products and services.
• Nowadays, companies utilize both traditional advertising and new media
to get ahead of the competition.
•Online advertising (digital platforms, like email, blogs, social media)
•Mobile advertising
•Advertising kiosks (interactive ad screens, digital signs and billboards)
•Other forms of advertising, such as restroom advertising, irregular
advertising, public relations advertising
Conclusion
• Why advertising is essential to all businesses?
•Boosts awareness of your brand
•Helps you go against the competition
•Allows you to penetrate new markets
•Influences consumer behavior
•Increases the company’s revenue
•Keeps your business relevant
•Improves the company’s reputation
Chapter six
• Apply trade retail sales promotions, retail merchandise and computer
assisted record keeping
• Retail sales are the purchases of finished goods and services by
consumers and businesses.
• These goods and services have made it to the end of the supply chain.
The chain starts with the goods producer or provider and ends with
the retailer
Cont…
• The beginning of the supply chain includes commodities and other
raw materials.
• Manufacturers create the product. The middle of the supply chain is
wholesale sales.
• They distribute the goods and services to retailers. The retailers sell
them to the consumer.
• In business and marketing, “trade” refers to the relationship between
manufactures and retailers
1. Trade Promotion
Definition:
• Trade promotion refers to marketing activities and incentives directed
at wholesalers, distributors, or retailers, not directly at the final
consumer.
Purpose:
• To encourage intermediaries to stock, promote, or sell a product.
Examples:
• Discounts or special pricing for retailer
Cont…
• free merchandise (buy 10, get 1 free)
• Display allowances (money for better shelf space)
• Trade shows and events
• Sales contests for retailers
Focus Audience:
• Middlemen in the distribution chain (e.g., retailers, wholesalers)
2. Advertising
Definition:
• Advertising is any paid form of non-personal communication about a
product, service, or idea by an identified sponsor, directed at the end
consumer.
Purpose:
• To build brand awareness, generate interest, and influence consumer
buying decisions.
Examples:
• TV commercials
• Online ads (Google, Facebook, YouTube)
• Newspaper or magazine ads
• Billboards
• Radio spots
Focus Audience:
• The final consumer (en
