Introduction of Advertising

Advertising is any paid form of non – personal

presentation and promotion of ideas,goods or
services by an identifier sponsor.
- Kotler
Advertisment derived from the latin word
‘ advertere’ which means to turn the
attention. It is essential mkt tool and powerful
communication tool
e c c
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t n History of Advertising
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 Purpose of Advertising
• To make instaneous sale
• To build demand for new product
• To communicate price deal
• To build brand recognition
• Establish direct contact bt manufactures and
consumers
• Helps in cutting down production and selling costs
• It minimizes wastage of time and efforts
• It communicates innovative technology
 Functions of Advertising
1. Provide Information – info about products ,services or ideas to
customers
Eg: Laptop – quality, price,features,size,utility through television

2.Consumer choice – Purchase goods based on their

requirments.Providing more choice to customers it results in
customer loyalty
eg: Television

3. Enhances brand image – It differenciate one business from

another through symbol.
Eg: Samsung fridge and Electronics accessories
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4. Enhancing Demand – Producers make use of

the advertising in different media to enhance
the demand for products and services
eg: Mobile phones – online purchase
Samsung J3

5. Effective in the market – Many companies

manufacturing the same kind of products and
services
eg:soaps,mobiles (Nokia and motrola as
microsoft)
Continue . .
6.Profit maximisation – Keep on
advertising makes them to increase the
profits
eg: Vivo IPL, airtel super singer, csk as
Aircel
7.Cost effective - It does most of the
selling job for small items
eg: biscuits,chocolates and ice creams
 Benefits of Advertising
• Manufacturer
• Salesmen
• Customers
• Society
• Distribution of channels
 Benefits to Manufacturer
• It helps in making advertising strategies.
• It motivates the employees
• It is big selling tool for big businessmen
• It increases interest among dealers in manufacturers goods

Benefits to salesmen
• It helps in CRM
• It motivates sales force
• It helps in achieving their sales target
• It reduces efforts in salesmen
• It is quite easy for salesmen to introduce products,services and
ideas
 Benefits of Distribution
Channel(Wholesalers and Retailers)
• It reduces the selling costs
• It ensures turn over of the stock
• It ensures easy sales to the product
• It enhances sales volume
Benefits to customers
• It helps in customer decision making process
• It results in cheaper goods
• It creates positive image of good products
• In ensures value for money
 Benefits to society
• It leads to devp of society
• It enhances standard of living
• It helps educating people
• It helps to address social issues such as
welfare of animals
• It leads to healthy competition
• It gives choices to buyers with self interest
 Economic aspects of advertising
• Enhance product value – Best products in the
market,Customers used to buy products which
are mostly advertised than unadvertised
products eg : pepsi with KFC
• Enhance product utility – Provides product
utility to the customers and makes appropriate
decision making during the purchase of products
Eg: mobile phones(only bt sender and receiver and
and Tv, fridge
Reduces prices – Based on products competition,mass production and consumption
eg:TV ,Fridge and Ashok leyland ,kamal hassan

Reduce production cost – Producers can purchase large quantities of raw materials as discounted rates from suppliers

Reduce distribution cost – This includes ad , SP costs,cost of display,demo,dealers commission.

Overcome Competition – It reduces new companies to enter the market

eg apple,BMW ,Benz and jaquor
 Social Aspects of advertising

• Health care
• Child care
• Education
• Family welfare
• Safety problems
• Resource preservation
Health Care –The main objective in this is to give
prevention to people or society
eg:Smoking,Toilets,Rain water ,AIDS, Cancer
Child Care – Ad related to nutrition and child devp
.eg: Polio drops
Education – Rights to education to women
Family Welfare – To control the population
Safety problems – Accidents advertising
Resource Preservation – Save forest for rain
 Ethical aspects of advertising

Truth – whats he shows must be true ,misleads

leads to failure of products
Avoid Illusion – By using the products he must be
satisfied. eg:weight lose program
Substantiating evidence – Pharmaceuital
company showing the ads.eg :D –cold,Bendryal
Avoid psychoactive ads – Which causes harm to
the society eg: smoking and Drugs
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 Factors influencing marketing mix

• Target Market –
- How often customers make purchases
- where the customers purchases
- what are the characteristics of customers
- what utility the customers are looking from
the products
- Eg: baby care products
Product type – different products requires different types of promotional activities
eg:Deccan chronicle, Soaps
Purchase Decision: Purchase of products near by area makes them to save timing ,cost and transportation
Product life cycle: In intro stage needs more promotion ,if the product has effective features that must makes demand among the competitators
Ad Budget: Budget is according to size of the firms.Based on reach and frequency of the products
 Ad as a Communication process

Elements of ad commn:
• Advertiser – The mode of ad must be in positive
and effective manner,he may be individual or
organization
• Advertising – Through news paper ,tv,internet ,radio
and magazines
• Media – The vehicle used to delivery the message is
called as media
• Target audience – Audience may be users and non
users,radio listeners ,tv viewers,print media
 Commn process model in Advertising
• Sender – Purchase their products - dentist
• Encoding – The message passed from sender needs to be
translated
• Channel – the way he carried the message from sender to
receiver
• Decoding – Receiver will understands the important of the
advertise – baby care,smoking
• Receiver – the ad is successful only when the receiver
understand the advertisment
• Feedback – from the cunsumers taught nd increases the sales
• Noise – due to some external issue he cant understand the ad in
effective manner
 Types of Advertising
Classification on the basis of geographical area

1. Local advertising/Retail - Done through consumer markets is local ad .eg:

pamphlets, local newspapers, window display

2. Regional advertising – Ad done on particular region.It was undertaken by

regional distributor .eg:local channels

3. National Advertising – To target customers all over the country. Done for
branded products. eg:Toshiba , frooti , adidas

4. International Advertising- The ad which made to target in different

countries.This was mostly done by multi national companies .eg: Air
india,messi,Federer
Classification on the basis of Audience
1.Consumer Advertising – Ad towards the consumers of
products .eg: tea,biscuits. . Etc
2. Industrial Advertising – The ad focuses on persons who buy or
influence the purchase of industrial goods or services is known
as industrial.eg:ad of machinery
3.Trade Advertising – The ad to attracks wholesellers and retailers
by motivating them to purchase their products. eg: ITC dealer –
give discounts,trip
4.Professional Advertising - This encourages to purchase certain
type of products.Eg: Engineer – Ambuja cements, Doctors –
moov.
Classification on the basis of media

1. Print media Ad- Newspaper,magazines,journals

2. Electronic / Broadcast media – Radio,

TV,Cinema,internet

3. Outdoor media – Posters,point of purchase

4. Other media – direct mail,calendars,diaries

Classification on the basis of advertising stages
1. Pioneering stage ad – To create awareness to
new brand of products. eg:dinakaran news paper
2. Competitive stage advertising – To make
competitation among the brands.It enhances the
sales volume. Eg: electronics products
3.Retentive stage ad / reminder ad- This is
required when the product is reached a large
market share.Eg: Center fresh
Classification on the basis of purpose
1.Direct Action ad – The ad introduces the discount sale
advertising .eg:surf excel
2. Indirect action ad – This was done based on the brand to
achieve the competitors.eg:electronics
3. Direct response ad – To promote the customers ,this
method makes them get info about the products .eg:
online shopping
4.Primary demand creation ad – Done by trade association
or by co operative groups.this done in intro stage or
growth stage.eg:coffee board ad
Classification on the basis of functions
1.Social advertising – Advertising for social welfare. eg: ITC notes,
flood purpose
2.Political Advertising – Done by parties for party ideology,it
happens mostly at the time of election
3.Product advertising – This helps to potray that their products is
superior than other products eg:soaps,perfume
4.Service advertising – To safeguard publice,the objective is to
change attitude of behaviour of people eg: wildlife preservation
5.Institutional advertising – To build brand image of the corporate
and organization eg: college advertising
 Major Institutions of Advertising
Management

Control Institutions Facilitating Institutions

Target Audience a) Government a) Mass media
b) Competition b) Advertising Agency
Target Audience: Those who receive the ad
messages,such as readers, viewers, listeners.
a) Present Customers – To remind them about the
products.It motivates them to continues purchase.
b) Competitors customers – These types of advertising
motivates the customers to brand switching. It helps
to overcome the competition
c) Non user – The people who do not purchase any
products.The ad makes them to create awareness
and utilize the product
Controlling Institutions
a)Govt Authorities – The advertiser must done ad based the
law;
• Consumer protection act 1986
• Copyright act 1957
• Pharmacy act 1918
• Drugs control act 1950
• Emblems and names act 1940
b) Competitions – They come out with effective advertising.To
be effective the advertiser promotion strategies should be
better than competitors
Facilitating Institutions
a) Mass media – Go to slide no 23
b) Advertising Agencies ;
• They help their client to choose proper media
eg :movie I
• They help in advertising plan
• They ensure greater profits during long run
• They give advice based on time to time
• They will do market research,customer research and
product research
 Functions of Advertising Agencies

Advertising Agency:
It is an independent bitz organ,composed of creative and bitz people,who
develop,repair and place ad in ad media for sellers seeking to find
customers for their goods and services
1.Clients Selection – Agencies contact and select clients. They need to
communicate their ideas to their clients in an appropriate manner
2.Media Selection – Cost, target population, product types. The ad agency
needs to consider all the factors.
3.Advertising Planning – Selecting the best suitable media among the
available alternatives. It includes frequency of advertising, reach of ad,
target audience
4. Creative function – It consists of ad copy, designing layout, illustration,
photographs, ad messages, ad themes. It includes designers, artists,
producers, photographers,graphic art.
5.Research purpose – Helps in decision making,
suitable media, analysis,understand
purchasing behaviour, know target audience,
competitors strategies
6.Client approval and evaluation – Copy to be
approved by the client. After advice make
changes and need to make effective changes
in the ad.
 Types of Advertising Agencies

1.Full service agencies – They deals with all stages of ad.They have
different depts.They have authors, designers, artists, producers,
graphic arts.
2.Interactive agencies – They make use of online ad,sending personal
messages on mobile phones.They use modern modes of
communications
3.Creative boutiques – They create very innovative advertising.They
have employees with great creative skills
4.Media buying agencies – They purchase place for ad and later sell it
to advertisers.They schedule the slots in various television channels
and radio channels.eg :High way advertising
5.In House advertising – They are as good as full service agencies,The
big organ prefer these agencies,they will make ad only for the
particular organ.