BPME7

INTRODUCTION:
ADVERTISING
OBJECTIVES: After completion of this lesson the student will be able to
understand:

• Meaning, Nature and Features of Advertising

• Objectives of Advertising

• Importance of Advertising

• Active Participant in Advertising

• Role of Advertising in Marketing Mix

• Role of Advertising in Society

• Advertising and Brand building

INTRODUCTION:

The word advertising comes form the Latin word "advertere”

meaning " to turn the minds of towards". Some of the definitions
given by various authors are:

According to William J. Stanton, "Advertising consists of all the

activities involved in presenting to an audience a non-personal,
sponsor-identified, paid-for message about a product or
organization."

According to American Marketing Association "advertising is any

paid form of non-personal presentation and promotion of ideas,
goods and services by an identified sponsor",
Advertising is used for communicating business information to
the present and prospective customers. It usually provides
information about the advertising firm, its product qualities, place
of availability of its products, etc. Advertisement is indispensable
for both the sellers and the buyers. However, it is more important
for the sellers. In the modern age of largescale production,
producers cannot think of pushing sale of their products without
advertising them. Advertisement supplements personal selling to
a great extent. Advertising has acquired great importance in the
modern world where tough competition in the market and fast
changes in technology, we find fashion and taste in the
customers.
DEFINITIONS OF ADVERTISING
1. American Marketing Association has defined
advertising as "any paid form of non-personal
presentation of ideas, goods and services by an
indentified sponsor.

2. According to Webstar, "Advertising is to give public

notice or to announce publicity".

3. According to Gardner, "Advertising is the means of

mass selling that has grown up parallel with and has
been made necessary to mass production".
FEATURES OF ADVERTISING
1. Communication: Advertising is means of mass communication
reaching the masses. It is a non-personal communication because
it is addressed to masses.

2. Information: Advertising informs the buyers about the benefits

they would get when they purchase a particular product.
However, the information given should be complete and true.

3. Persuasion: The advertiser expects to create a favorable

attitude which will lead to favorable actions. Any advertising
process attempts at converting the prospects into customers. It is
thus an indirect salesmanship and essentially a persuasion
technique.
4. Profit Maximization True advertising does not attempt at maximizing profits
by increasing the cost but by promoting the sales. This way It won't lead to
increase the price of the product. Thus, it has a higher sales approach rather
than the higher-cost approach.

5. Non-Personal Presentation: Salesmanship is personal selling whereas

advertising is non-personal in character. Advertising is not meant for anyone
individual but for all. There is absence of personal appeal in advertising.

6. Identified Sponsor: A sponsor may be an individual or a firm who pays for the
advertisement. The name of reputed company may increase sale or products.
The product gets good market because of its identity with the reputed
corporate body.

7. Consumer Choice: Advertising facilitates consumer choice. It enables

consumers to purchase goods as per their budget requirement and choice.
Right choice makes consumer happy and satisfied.
8. Art, Science and Profession: Advertising is an art because it
represents a field of creativity. Advertising is a science because it
has a body of organized knowledge. Advertising is profession is
now treated as a profession with its professional bodies and code
of conduct for members.

9. Element of Marking Mix: Advertising is an important element of

promotion mix. Advertising has proved to be of great utility to sell
goods and services. Large manufactures spend crores of rupees on
advertising.

10. Element of Creativity: A good advertising campaign involves

lot of creativity and imagination. When the message of the
advertiser matches the expectations of consumers, such creativity
makes way for successful campaign.
OBJECTIVES OF ADVERTISING

The fundamental purpose of advertising is to sell

something - a product, a service or an idea. In addition to
this general objective, advertising is also used by the
modern business enterprises for certain specific
objectives which are listed below:
1. To introduce a new product by creating interest for it
among the prospective customers.

2. To support personal selling program. Advertising

maybe used to open customers' doors for salesman.

3. To reach people inaccessible to salesman.

4. To enter a new market or attract a new group of

customers.
5. To light competition in the market and to increase the sales as
seen in the fierce competition between Coke and Pepsi.

6. To enhance the goodwill of the enterprise by promising better

quality products and services.

7. To improve dealer relations. Advertising supports the dealers in

selling he product. Dealers are attracted towards a product which
is advertised effectively.

8. To warn the public against imitation of an enterprise's products.

IMPORTANCE OF ADVERTISING

Advertising has become an essential marketing activity in the modern

era of large-scale production and serve competition in the market. It
performs the following functions:

1. Promotion of Sales: It promotes the sale of goods and services by

informing and persuading the people to buy them. A good advertising
campaign helps in winning new customers both in the national as wet as
in the international markets.

2. Introduction of New Product: It helps the introduction of new products

in the market. A business enterprise can introduce itself and its product
to the public through advertising. A new enterprise can't make an impact
on the prospective customers without the help of advertising. Advertising
enables quick publicity in the market.
3. Creation of Good Public Image: It builds up the reputation of the
advertiser. Advertising enables a business firm to communicate its
achievements in an effort to satisfy the customers' needs. This
increases the goodwill and reputation of the firm which is
necessary to fight against competition in the market.

4. Mass Production: Advertising facilitates large-scale production.

Advertising encourages production of goods in large-scale because
the business firm knows that it will be able to sell on large-scale
with the help of advertising. Mass production reduces the cost of
production per unit by the economical use of various factors of
production.
5. Research: Advertising stimulates research and
development activities. Advertising has become a
competitive marketing activity. Every firm tries to
differentiate its product from the substitutes available in
the market through advertising. This compels every
business firm to do more and more research to find new
products and their new uses. If a firm does not engage in
research and development activities, it will be out of the
market in the near future.
6. Education of People: Advertising educate the people about new
products and their uses. Advertising message about the utility of a
product enables the people to widen their knowledge. It is
advertising which has helped people in adopting new ways of life
and giving-up old habits. It has contributed a lot towards the
betterment of the standard of living of the society.

7. Support to Press: Advertising provides an important source of

revenue to the publishers and magazines. It enables to increase the
circulation of their publication by selling them at lower rates. People
are also benefited because they get publications at cheaper rates.
Advertising is also a source of revenue for TV network.
ACTIVE PARTICIPANT IN ADVERTISING

Following are the group of people who are

actively involved in advertising:
1. Advertiser Seller who manufacture and market consumer products
are the prominent group of advertisers. Hindustan Unilever, proctor and
gamble are the examples of advertisers. Also, the retailers are the
second prominent segment among advertisers. They stock the products
and sell them to the ultimate consumers. Government and social
organization are also the active participant in this category.

2. Target audience: It refers to the recipient of the advertising

message. Every message is either directed to a mass audience and class
audience. Advertising desire to cover this target audience for promoting
sales. Advertising message intends to cover the potential user and non
user who may purchase the product in future. The messages are also
directed to the user of the competitor's product so that they switch over
the advertiser's products.
3. Advertising Agencies: An advertiser has two options:

(i) To design, develop and produce and advertising message and get it
placed in desired media directly through his own sales of advertising
department, or
(ii)to entrust the entire job of advertising to a team of highly
professionalized, specialized, independent, advertising agency. An
advertising agency is composed of creative people, who conceive
design, develop and produce, advertising message with creative ideas
and place it in the desired advertising media, for and on behalf of its
client (the advertiser). The advertising agencies usually charge a
commission of 15% on the media bills from the media owners. In
addition, they charge out of pocket expenses to their clients, i.e. the
advertisers. They employ copywriters, artists, photographers.
Typographers, layout designers, editors and such other creative
people.
4. Advertising Production People (Artists): The production of
impressive and persuasive advertisements is possible only with the
active help and creative spirit of the artists like copywriters, artists,
photographers, typographers, layout designers, editors and such
other creative people. Such people are usually employed by the ad
agencies or, their services may be hired by the ad agencies on job
basis.

5. Target Audience (Readers, Listeners, Viewers and

Present and Future Buyers): Advertising messages are given
about products services and ideas to readers, listeners, viewers
and actual and potential buyers, who are known as the audience.
The target audience may be classified into the following three
categories:
(i) existing or, current consumers, who are reminded and
influenced to continue their patronage and to increase
the volume of their buying,

(ii) consumers, who buy and use, a competitor's brand;

hence they are persuaded to buy the advertised brand,
instead of the competitor's brand; and

(iii) those consumers, who do not use any such product;

and even then, are persuaded to buy the advertised
product.
6. Mass Media Advertising messages are communicated to the target
audience through different mass media, such as,

(i) Print Media: They consist of newspapers, magazines, journals,

handbills, etc.

(ii) Electronic Media: They consist of radio, television motion pictures,

video, multi-media and the internet.

(iii) Outdoor Media: They consist off posters, hoarding, handbills, stickers
air balloons, neon sing bill boards, local cinema houses, and transit
media.

(iv) Direct Mail: It consist of brouchers, leaflets, pamphlets, letters and

return cards addressed to consumers.
The advertising agencies guide their clients (advertisers) in selection of
the most appropriate advertising media, which is known as 'media
planning'. Each medium has sits own merits and demerits.

7. Government Authorities: The business of advertising is regulated

by the government department. The government adopts law and
regulation which have a direct or an indirect bearing on the advertising.

8. Advertising Production Firms: Advertising production firms are the

support agencies which help in the production of advertisement. This
includes copywriter, artist, photographers, typographers, producer,
editors. These are the people who transform ideas into a finished forms
Thus the success and failure of the advertisement depend on these
people.
 ROLE OF ADVERTISING IN MARKETING MIX

Marketing mix consist of four important variables of

marketing, i.e. 4Ps-Product, Price, Promotion and Place.
Apart from the traditional 4 Ps, there are also other
variables, i.e. Packaging, Position, and Pace.

Advertising is an element of promotion. However, it not

only assists in promoting the product, but also affects the
other variables of marketing mix. This can be explained
as follows:
1. Advertising and Product: A product is normally a
set of physical elements, such as quality, shape, size,
color and other features. The product may be of very
high quality At times, the product is so designed that it
requires careful handling and operations. Buyers must be
informed and educated on the various aspects of the
product. This can be effectively done through
advertising. Thus, advertising plays the role of
information and education.
2. Advertising and Price: The price is the exchange value of the
product. A marketer may bring out a very high-quality product with
additional features as compared to competitors. In such a case,
price would be definitely high. But buyers may not be willing to pay
a high price would be definitely high. Here comes advertising.
Advertising can convince buyers regarding the superiority of the
brand and thus its value for money. This can be done by associating
the product with prestigious people, situations, or events.
Alternatively, when a firm offers a low-price products the job of
advertising needs to stress the price advantage by using hard
hitting copy. It is not just enough to convince, but it is desirable to
persuade the buyer. Thus, advertising plays the role of conviction
and persuasion.
3. Advertising and Place: Place refers to physical
distribution and the stores where the goods are available
Marketer should see to it that the goods are available at
the convenient place and that too at the right time when
the buyers need it. To facilitate effective distribution and
expansion of market, advertising is of great significance.
Thus, advertising do help in effective distribution and
market expansion.
4. Advertising and Promotion: Promotion consists of
advertising, publicity, personal selling and sales
promotion technique. Businessmen today have to face a
lot of competition. Every seller needs effective promotion
to survive and succeed in this competitive business
world. Advertising can play a significant role to put
forward the claim of seller, and to counter the claims of
competitor. Through effective advertising, sellers can
face competition and also help to develop brand image
and brand loyalty.
5. Advertising and Pace: Pace refers to the speed in marketing
decisions and actions. It involves among other things the launch of
new products or brand variations at greater speed than before. As
and when new brands are launched, advertising plays an
important role of informing, educating and persuading the
customers to buy the product.

6. Advertising and Packaging: The main purpose of packaging

is protection of the product during transit, and preservation of
quality and quantity. Nowadays, marketers take lot of efforts to
develop and design attractive packages as they carry advertising
value. A creatively design package attract the attention of the
customers. It also carries an assurance of quality and creates
confidence in the minds of customers to buy the product.
7. Advertising and Positioning Product
positioning aims at creating and maintaining a
distinct image of the brands in the minds of the
customers. Through advertising the marketer can
convey the positioning of the brand and
accordingly can influence the buying decision of
the target audience.
 ROLE OF ADVERTISING IN SOCIETY:

Advertising is the integral part of every day's life. It is a pervasive

method of marketing in society. Though the methods by which
marketers advertise have changed over the decades, the role and
purpose of advertising has changed over the period of time.
Without advertising modern society cannot survive. Advertising is
useful to society in following ways:
Encourage Purchasing

Encouraging people to purchase goods and services is

the main role of advertising. Some industries rely on
advertising more than others: A cereal company, for
instance, must advertise more aggressively, due to the
wide arrange of competing products, than a power
company that faces little to no competition. Advertisers
often influence members of society to purchase products
based on instilling a feeling of scarcity or lack..
 Reflect cultural trends

Advertising bridges the gap among people by

communicating varied culture through advertising
message. It bring variation in the social life.

Promotes Economic growth

Advertising contributes to bring about all round

development of the economy by increasing demand and
by encouraging economic activities it fuels the desire to
shop and, in tum, shopping stimulates the economy.
 Improves standard of living:

Advertising is an economic activity: It provides opportunities to

people to improve their income. It motivates people to consume
more material and thereby improves their standard of living.

Provides employment:

Effective advertising generates demand for goods and services.

high demand calls for more production which requires more of
physical and human resources thus creating employment
opportunities.
 Advertising and Brand building

Brands are the identification that differentiates one

business from another (through name, symbol etc.).
However, today brands can also be defined as the
personality they reflect to people in relation to status,
emotional characteristics and subjective quality. They
give the consumers a perceived knowledge of the
product, its quality and uniqueness before they buy it.
Brands Ensure delivery of service as promised by them. For
example, Pizza Company A claims to deliver pizza within a certain
time and Pizza company B claims to deliver most delicious Pizzas.
It makes easy for the consumers to identify what they want and
which brand to choose for it. It is important for a brand to
accomplish the claim advertised to retain Brand Image.

Advertising is one of the key elements in building a brand, which is

equally important to the marketer and consumers. Brand
personality acts as a potent brand differentiator and offers
sustainable competitive advantage.
Advertising by creating or reinforcing brand's personality enhances
brand value or equity which in turn can be leveraged through
brand extension. Brand personality also helps brands to gain
market share, command price premium and insulates from
discounting Brands.

Building a strong brand name is key factor for business success. In

the competitive business environment of today, consumer
sophistication has altered business practices. Organizations are
forced to anticipate customers' needs and convey clear messages
to consumers by establishing strong brand names and focusing on
brand building.
A brand's practical attributes and symbolic values are inherent elements
that help the brand appeal on consumers' minds and emotion. When
consumers relate brands with symbols, it becomes easier for an
organization to raise consumer interest. For instance, Lexus is known for
luxury, or Apple is known for innovation, Therefore, in consumers' minds,
a brand is more than just a recognizable name: it is a promise that needs
to be met on a regular basis.

Advertising is important for building brand awareness. By raising

consumer interest and making consumers awareness of their products
and services, firms not only expand their customer base, but they also
keep their loyal customers and increase their market share. In other
words, the more aware consumers are of a brand, the more likely they are
to buy from a particular business.
 Approaches in Brand building:

To make brand distinctive: brand building can be done through

repetitive advertising. Also, by highlighting unique selling
proposition one can distinguish brand from one another.

1. Constant innovation: Consumers need continuous innovation

and new products. It is not always a new product even an
improvement on the existing product is acceptable to the
consumers. Through intensive advertising such brands are build
which is time consuming.
2. Domination of brand: brand building largely depends on the
domination is creates on the competitors. Domination can take
place either in national market or in niche market.

3. Prompt availability: Prompt delivery of the product is one of the

factors that ensure brand building. This is possible if there is
proper coordination between the finance, production, and
marketing department.

4. Integration of new and old media: Consumers have ever

changing demand. Due to availability of various media option the
seller can push the product in the market by blend multiple media
option Thus advertising message are flashed to consumers through
media mix.