Commercial & Non-commercial (b) Product & Consumer (c) Classified & Display (d) Retail & Wholesale (e) Regional, National & Co-operative (f) Govt.Advertising is nothing but a paid form of non-personal presentation or promotion of ideas, goods or services by an identified sponsor with a view to disseminate information concerning an idea, product or service The message which is presented or disseminated is called advertisement In the present day marketing activities hardly is there any business in the modern world which does not advertise However, the form of advertisement differs from business to business Advertisement has been defined differently by different persons A few definitions are being reproduced below: According to Wood, "Advertising is causing to know to remember, to do." According to Wheeler, "Advertising is any form of paid non-personal presentation of ideas, goods or services for the purpose of inducting people to buy." According to Richard Buskirk, "Advertising is a paid form of non-personal presentation of ideas, goods or services by an identified sponsor." According to William J Stanton, "Advertising consists of all the activities involves in presenting to a group, a non-personal, oral or visual, openly sponsored message regarding disseminated through one or more media and is paid for by an identified sponsor." The above definitions clearly reveal the nature of advertisement This is a powerful element of the promotion mix Essentially advertising means spreading of information about the characteristics of the product to the prospective customers with a view to sell the product or increase the sale volume • • (g) ComparativeThe main features of advertise are as under: It is directed towards increasing the sales of business Advertising is a paid form of publicity • It is non-personal They are directed at a mass audience and nor at the individual as is in the case of personal selling • Advertisement are identifiable with their sponsor of originator which is not always the case with publicity or propaganda Objective / Functions of advertising The purpose of advertising is nothing but to sell something -a product, a service or an idea The real objective of advertising is effective communication between producers and consumers The following are the main objectives of advertising: Preparing Ground for New Product New product needs introduction because potential customers have never used such product earlier and the advertisement prepare a ground for that new product Creation of Demand The main objective of the advertisement is to create a favorable climate for maintaining of improving sales Customers are to be reminded about the product and the brand It may inducenew customers to buy the product by informing them its qualities since it is possible that some of the customers may change their brands Facing the Competition Another important objective of the advertisement is to face to competition Under competitive conditions, advertisement helps to build up brand image and brand loyalty and when customers have developed brand loyalty, becomes difficult for the middlemen to change it Creating or Enhancing Goodwill: Large scale advertising is often undertaken with the objective of creating or enhancing the goodwill of the advertising company This, in turn, increases the market receptiveness of the company's product and helps the salesmen to win customers easily Informing the Changes to the Customers Whenever changes are made in the prices, channels of distribution or in the product by way of any improvement in quality, size, weight, brand, packing, etc., they must be informed to the public by the producer through advertisement Neutralizing Competitor's Advertising Advertising is unavoidable to complete with or neutralize competitor's advertising When competitors are adopting intensive advertising as their promotional strategy, it is reasonable to follow similar practices to neutralize their effects In such cases, it is essential for the manufacturer to create a different image of his product Barring New Entrants From the advertiser's point of view, a strongly built image through long advertising helps to keep new entrants away The advertisement builds up a certain monopoly are for the product in which new entrants find it difficult to enter In short, advertising aims at benefiting the producer, educating the consumer and supplementing the salesmen Above all it is a link between the producer and the consumer Primary Functions of Advertising • • Details Written by Kannan Hits: 2130 Primary functions of advertising includes: 1) To various sales: The main function of advertising is to increase the sales of the product of the company by securing greater consumption, by attracting new buyers and by introducing new uses for a commodity 2) Persuading dealers to stock: Advertising persuades dealers to stock more advertised goods It ensures wider distribution of goods, even to remote place Where a product is not in demand, the advertisers directly contact their dealers to stock the goods and persuade the customers to buy their goods through advertisements 3) Assisting dealers to liquidate stock: Advertising not only assists the producer (or) advertiser, but also helps dealers (wholesalers and retails) to sell the advertised goods Thus, wholesalers and retails are able to clear their shelves speedily resulting in higher profits This is all possible due to effective advertising 4) Increase in per-capita use: Advertising may used to increase the per-capita use of commodity by repeating the product feature and its uses constantly Advertising is effectively used to increase the per-capita consumption by describing new uses of articles that never have been thought of by the general user 5) Recognition for quality: Advertising brings goodwill for the producer If a producer has been recongnised for bringing out quality products, his new product in the same line (or) new model will be will receiving by the public 6) Protecting manufacturers interests: The next function of advertising is secure manufacturer’s business interests Through the advertising of trademarks (or) brand names, (or) the general appearance of the products and their package, public recongnition and acceptance are secured and accordingly goodwill of the manufacturer is established over time and a kind of insurance is given This makes the manufacturer feel more confident and be independent of wholesalers and retailers It also protects the manufacturers from acute competition Competitors will find it difficult to develop the substitute for the nationally (or) internationally advertised products advertising cultivates brandand company image It creates goodwill which is a very valuable asset It insures the manufacturer against all business risks 7) To eliminate seasonal fluctuations: One of the primary functions of the advertisements is to eliminate (or) lessen the seasonal fluctuations for the seasonal products by describing their various during off season For example, by advertising, the use of refrigerations all the year round has been highlighted to people 8) Creation of demand: Competitive advertising of two (or) more manufacturers in the same field expands market and creates more business for them It creates demand for the product and not merely for a particular brand For example, a lap-top computer is widely recommended and vigorously suggested through advertisements, highlighting its advantages It ultimately results in more such computers being sold 9) Raising of standard of living: Advertising also deserves credit in raising the standard of living of the consumers by persuading them to use newer and better products at competitive rates It is partly because of advertising, it has become enjoyed by common man now For example-television, which has been only a dream for a common man a few decades earlier, has now become very popular among all sections of society, which is, mainly due to advertising Purpose of Advertising[edit] Advertising is at the front of delivering the proper message to customers and prospective customers The purpose of advertising is to convince customers that a company's services or products are the best, enhance the image of the company, point out and create a need for products or services, demonstrate new uses for established products, announce new products and programs, reinforce the salespeople's individual messages, draw customers to the business, and to hold existing customers.[42] The advertising has following purposes: • To attract new buyers and try to expand customer base • To compete in the market • To create an organization's recognition among consumers • To promote subsidiary or products manufactured by the same company • To bring into notice the changes, special offers or current developments of the interest of the consumers • To increase the sale of a particular product • To carry out public relations and public service program Advertisement: Advertisement consists of all activities involved in presenting to a group an oral of visual message regarding a product service of an idea It is an art of creating a demand for the product or service Advertisement is the presentation of ideas, goods or services for the purpose of including people to buy Purposes of advertising: Following are the main purposes of Advertising Giving Information: The first and the most important purpose of advertisement are to inform the public about the availability of new product, service or an idea that is being sold in the market This is aimed for creating a demand for new product and the new product has to be known to public To Persuade: Advertisement not only informs but also serves to influence the public to buy the product or services For example a company seeks to induce the public to buy its particular brand of soap in preference to others To Remind: Advertisement also serves to remind consumers of existing products, that the product may be needed in future and where to buy the product It is necessary for the advertiser to constantly draw the attention of consumer to his product and away from other competitive brands, which may be heavily advertised We search the prices of products before shopping and we generally try to get the cheapest product with same quality At this point advertisements help us by giving information about markets They also give information to us about properties of products Advertising facilitates a noticeable increase in the sale of the product It thus reduces per unit cost of the product and help the businesses to earn profits In addition, advertising increases sales, employment and profits The overall effect of all this is economic progress for the nation, or more broadly for the world as a whole On the other hand, it has some disadvantages First of all, people are influenced by them badly especially children and teenagers For instance, big companies always use beautiful girls on their commercials so, children and teenagers want to be as beautiful as these girls In addition, advertisements force people to buy new products even though they don’t need By this way they waste much money and their budget is also damaged by them Benefits or Importance of Advertisement • • Advertising broadens the knowledge of the consumers With the aid of advertising, consumers find and buy necessary products without much waste of time This speeds up the sales of commodities, increases the efficiency of labor in distribution, and diminishes the costs of selling It is an accepted fact that without market stimulus of heavy advertising, consumers might have waited another sixty years for the product evaluation that took place in less than ten years - it took after all over sixty years from the invention of the safety razor before the first acceptable stainless steel blades appeared in the market These words are more than enough to testify the potentialities of advertising in the field of modern marketing system The main benefits of advertising may be narrated as follows: Benefits to Manufacturers It increases sales volume by creating attraction towards the product It helps easy introduction of new products into the markets by the same manufacturer • It helps to create an image and reputation not only of the products but also of the producer or advertiser In this way, it creates goodwill for the manufacturer • Retail price, maintenance is also possible by advertising where price appeal is the promotional strategy • It helps to establish a direct contact between manufacturers and consumers • It leads to smoothen the demand of the product It saves the product from seasonal fluctuations by discovering new and new usage of the product • It creates a highly responsive market and thereby quickens the turnover that results in lower inventory • Selling cost per unit is reduced because of increased sale volume Consequently, product overheads are also reduced due to mass production and sale • Advertising gives the employees a feeling of pride in their jobs and to be in the service of such a concern of repute It, thus inspires the executives and worker to improve their efficiency • • • • Advertising is necessary to meet the competition in the market and to survive Benefits to Wholesalers and Retailers Easy sale of the products is possible since consumers are aware of the product and its quality It increases the rate of the turn-over of the stock because demand is already created by advertisement It supplements the selling activities • The reputation created is shared by the wholesalers and retailers alike because they need not spend anything for the advertising of already a well advertised product • It ensures more economical selling because selling overheads are reduced • It enables them to have product information • Benefits to Consumers Advertising stresses quality and very often prices This forms an indirect guarantee to the consumers of the quality and price Further large scale production assumed by advertising enables the seller to seller product at a lower cost • Advertising helps in eliminating the middlemen by establishing direct contacts between producers and consumers It results in cheaper goods • It helps them to know where and when the products are available This reduces their shopping time • It provides an opportunity to the customers to compare the merits and demerits of various substitute products • This is perhaps the only medium through which consumers could know the varied and new uses of the product • • Modern advertisements are highly informative Benefits to Salesmen Salesmanship is incomplete without advertising Advertising serves as the forerunner of a salesman in the distribution of goods Sales is benefited the advertisement in following ways: Introducing the product becomes quite easy and convenient because manufacturer has already advertised the goods informing the consumers about the product and its quality • Advertising prepares necessary ground for a salesman to begin his work effectively Hence sales efforts are reduced • The contact established with the customer by a salesman is made permanent through effective advertising because a customer is assumed of the quality and price of the product • The salesman can weigh the effectiveness of advertising when he makes direct contact with the consumers Benefits to Community or Society • Advertising, in general, is educative in nature In the words of the late President Roosevelt of the U.S.A., "Advertising brings to the greatest number of people actual knowledge concerning useful things: it is essentially a form of education and the progress of civilization depends on education." • Advertising leads to a large-scale production creating opportunities to the public in various jobs directly or indirectly • It initiates a process of creating more wants and their satisfaction higher standard of living For example, advertising has made more popular and universal the uses of such inventions as the automobiles, radios, and various household appliances • Newspapers would not have become so popular and so cheap if there had been no advertisements The cheap production of newspapers is possible only through the publication of advertisements in them It sustains the press • • more employment It assures employment opportunities for the professional men and artist Advertising does provide a glimpse of a country's way of life It is, in fact, a running commentary on the way of living and the behavior of the people and is also an indicator of some of the future in this regard Classification of the advertising :The objective of advertising differ under different situations One advertiser may seek to generate immediate response from the customer; another may seek to develop awareness orpositive image for its product over a longer period So they need different types of advertisements Now a days service advertisement are also very common, like financial advertisements, banking advertisement etc 1) Advertising on the basis of Geographical Area a) Local/ regional b) National c) Global/ International 2) Advertising on the basis of Target Audience a) Consumer Advertising b) Industrial Advertising c) Professional Advertising d) Trade Advertising 3)Advertising on the basis of Demand Influence Level a)Primary demand creation Ads b) Selective demand Stimulation Ads 4) Advertising to promote Institution Image Or Brand Image a) Institutional Ads/ Corporate Advertising b) Product Advertising 5) Advertising on the basis o f different stages of Product Life Cycle a) Informative/ Pioneering Advertising b) Persuasive Advertising c) Reminder Adv ertising 6) Advertising on the basis of Timing of Response a) Direct Action Advertising b)Indirect Action Advertising 7) Advertising on the basis o f Media Used a) Emotional Advertising b) Rational Advertising BEST BBA BCA AND MBA COLLEGE IN NCR 8) Advertising on the basis o f Nature of Appeal Made a) Print Ads b)Audio - Visual Ads c) Audio 9) Other Type of Advertising a) Classified Advertising b) Social Advertising c) Cooperative Advertising d) Re-enforcement Advertising e) Defensiv e Advertisement f) Service Advertising g) Push and pull Advertisement h) In-store Advertising Commercial & Non-commercial (b) Product & Consumer (c) Classified & Display (d) Retail & Wholesale (e) Regional, National & Co-operative (f) Govt advertising (g) Comparative advertising Commercial and non-commercial advertising are both strategies that are designed to reach the public and motivate them to become more interested in the subject matter of the advertisements While sharing a common goal, that of generating consumer interest, the two forms of advertising focus on different types of products Essentially, commercial advertising has to with selling goods and services, while non-commercial advertising is more about providing information and motivating people to act after being exposed to that information There are examples of campaigns in which marketers combine elements of commercial and non-commercial advertising to create an approach that both informs and motivates consumers to buy Understanding the difference between commercial and non-commercial advertising involves identifying the purpose for the advertisements With commercial advertising, the idea is to sell something to a consumer that will allow the manufacturer of the product to earn a return from that sale Advertisements for consumer goods like electronics, food products, and even vacation packages are all marketed and sold as part of a commercial advertising campaign By contrast, non-commercial advertising is about sharing information that hopefully people will put to good use For example, a non-profit may implement an advertising campaign to increase public awareness and education about a certain health issue As part of the advertising, information about what the disease is, who it can affect, and how it can be treated may be included In addition, information on how people can help the non-profit spread the information and also promote further research is also likely to be shared In this scenario, information is being sold, but there is not necessarily an expectation of receiving monetary compensation for the effort, although this type of campaign does normally motivate some people to donate funds for research or to the sponsoring non-profit When thinking of the difference between commercial and non-commercial advertising, it is often easiest to consider the former as being targeted to generate sales and revenue At the same time, the latter is focused more on educating people and providing them with opportunities to act on that acquired knowledge In some cases, the lines between commercial and non-commercial advertising will blur somewhat, with some manufacturers of goods and services using an advertising strategy that is intended to inform and educate while also promoting a product for sale This hybrid approach to the advertising task can in fact be very successful, in that the effort to educate consumers will often equip them to make informed decisions regarding the product or products offered, which means they are more likely to be satisfied with the purchase, as long as the product does in fact provide the benefits mentioned in the advertising