ADVERTISING(REDUCES THE HINDRANCE OF KNOWLEDGE)

Meaning:• Advertising is spreading information and knowledge about a product, service, event, opportunity etc.• It is the activity through which visual or oral messages addressed to the general public.• Advertising aims at influencing the public to buy goods or services.• The purpose of advertising is to create a desire for the

product among customers.

Aims of Advertising

HIGHER SALES Advertising aims at increasing sales. Unless there is a good sale there cannot be

profit As sales increases, the cost of production

per unit is reduced

Aims of Advertising (contd..)TO PERSUADE: Advertisements are aimed at

persuading the customers to buy the manufacturer’s product

Aims of Advertising

TO REMIND: Advertising also aims at

reminding consumers about existing products.

Aims of Advertising NEW PRODUCT:

If a new product is to be introduced in to the market the public must be aware of the product first.

Advertising aims at making the public aware of new products.

Aims of Advertising (contd..) INFORMATION:

Advertisements are aimed at informing consumers of changes in the product, fashion, availability of the product and how to use the product.

Aims of Advertising (contd..) BRANDED GOODS:

Advertisements are aimed at keeping the manufacturers’ and retailers’ branded name in the public eye.

Aims of Advertising (contd..) THE COMPANIES IMAGE:

Many advertisements are designed to project only the name and image of the company to the public.

FACTORS AFFECTING CHOICE OF MEDIANature of the product or service: The medium chosen must fit the product or the service to be

advertised. Goods especially new ones that require explanations and

demonstrations are best advertised at trade fair and exhibitions.

Alternatively salesmen can visit homes to demonstrate.

Home appliances can be advertised with the help of salesmen. Women’s clothes are best shown in fashion shows or women’s

magazines.

factors contd….Target market: Target market refers to the group of people that the advertisement is

aimed at. Groups of people may differ in terms of income, age or sex etc. For

example, teenagers, youth, men, women and professionals.

To reach female market women’s magazines may be appropriate.

To reach children television may be the best medium especially during children’s programme.

factors contd….

Extent of market: Local, National and International.

For capturing the local market local newspaper will be useful.

National newspaper will be more appropriate if more coverage is needed.

A message to the mass market may be advertised by television especially when live telecast of football or cricket which has international appeal.

factors contd….

Cost: Cost of using a medium should be

considered in relation to the budget or the amount of funds available.

The relative benefits with the relative costs also should be weighed.

If the advertiser has a small amount to spend on advertising nation wide, then television will have to be ruled out and instead the newspaper should be considered.

factors contd….

Flexibility: Flexibility refers to the ease with which

the advertiser can change the advertisement so as to adjust to different conditions and circumstances.

As a medium the magazine has less flexibility than the newspaper.

Radio provides greater flexibility as the advertisement can be changed more easily.

factors contd….

Lifespan: It refers to the length of time an

advertisement will be on display. A radio or television has short life span. An advertisement in a news paper or

magazine has longer life span as they can be read and re-read several times.

METHODS OF APPEALTo present the advertisement many devises are used.

Romance: The product claims to make the

consumer more attract ive to the opposite sex. E.g.: - i f a women uses a part icular perfume, she could become more attract ive.

Appeals contd… Famous people: A well known personality is used to

advertise a product. It is hoped that the consumer will buy the product because the personality uses or praises it. He develops trust in the product because of admiration for the famous person.

Appeals contd…

Emotions or Ambitions:

The advertisement shows a successful person using the product and implies that the consumer will be successful if he too uses it. E.g.:- if a customer buys a particular brand of clothes, he could get a better job.

Appeals contd…

Social acceptance:

here the advertisement implies that by using the product the consumer will be more acceptable to others. e.g.: - the consumer could make more friends if a particular brand of deodorant is used.

Appeals contd…

Work Simplification:

The product is claimed to make a task easier to perform, for example cleaning the floor, polishing the car or buying a new brand of washing machine will give the consumer more leisure etc.

Appeals contd… Comedy:

If advertising is amusing the product shown will be remembered by the consumer who might then buy it.

Advantages of Advertising to Advertiser:

Advertising increases sales by increasing the demand for the products.

Advertising increases profits and therefore the producer can lower the price of his goods.

Advertising helps in launching new products.

Advertising provides employment opportunities.

Disadvantages of advertising to advertiser:

Advertising is very expensive. The producers have to spend large resources on advertising.

Many of the talented people employed in drafting and making advertisements might make a better contribution if they worked in other occupations.

Consumers feel that if there were less advertising, there would be more competition over prices.

Advantages of advertising to consumer:

Advertising helps in providing information to the customer of a particular product.

Advertising helps to introduce new products, thus improving the standard of living.

It is believed that advertised goods are of better quality than other goods.

Advertising maintains the price of newspapers at a reasonable level.

Disadvantages of advertising to consumer:

Advertising expenses lead to higher prices.

Advertising persuades people to buy unnecessary goods, which they cannot even afford.

Advertising leads to people buying goods on credit.

Advertising exploits people to believe their advertisements are true.

Reasons why consumers need protection against some forms of advertising

Advertisements may be misleading. Advertisements may contain false

information. Goods may be incorrectly labeled. Some advertisements may be dirty and

unsuitable. Some adult advertisements may be

shown at inappropriate timings.

Reasons why consumers need protection against some forms of advertising

SALES PROMOTIONS: Free samples: This is the best way of introducing a product. It is

very expensive as samples are given to every household. Price reduction: Customers often expect household articles to be

offered at reduced prices. Some producers distribute coupons to customers. The customer can use these coupons for part payments.

Competition: Sometimes competitions are held. Customers have to purchase several packets of the producer’s goods to enter the competition.

Free gifts: Gifts such as glasses, caps or cups may be given to customers if they buy the producer’s goods.