Unit-7 ADVERTISING

UNIT-7

ADVERTISING

Advertising.

             Advertising is a form of communication which spreads information and create awareness about goods or services among the public. It aims to increase the sales of certain goods or service by motivating the public to buy them.

OBJECTIVES (AIMS) OF ADVERTISING.

1. Increase sales.

            The main purpose behind advertising is to increase sales by providing information about new services and goods to the public.

2. Persuade the public.

            The methods or techniques used in the advertising influence the public and force them to buy certain goods or services; this results in the overall increase in sales as well.

3. Sharing Information

            The public get information about various services and new products through the advertising. It enables them to know how to use, where to purchase, price, benefits, etc.

4. Expansion of market.

           Advertising aims at maintaining or expanding markets for existing products too.  Advertising does it by highlighting the attractive features and the uses of existing products.

5. Creation of goodwill.

            Advertising creates reputation for the company and its products. It brings attraction to particular brand or company.

6. Encouraging the retailers.

            Advertising encourages the retailers to hold the stocks of certain goods. Well advertised brands can be sold off easily by the retailers.

ADVANTAGES OF ADVERTISING

1. Advertising leads to higher profits by increasing sales.

2. It helps to launch a new product in the market.

3. Consumer can be better informed of the goods available and of their relative merits through advertising.

4. Spreading market by the increased demand.

5. Reduce cost of production by the increased sales and revenue.

6. Enables the business firms to compete with other similar business.

DISADVANTAGES OF ADVERTISING

1. Advertising can be very expensive.

2. The cost of advertising may lead to higher prices for consumers if sales do not increase sufficiently to cover the cost of advertising.

3. Some advertisements carry the misleading information.

4. Advertising can persuade consumers to buy things even if they do not really want them.

5. Increase spending and purchasing habits among the people.

TYPES OF ADVERTISING

1. Persuasive advertising.

      In this advertisement the advertiser tries to persuade the public to buy his products or services by explaining the unique qualities of products which possesses over other similar products.

      Eg:- Lower price, Large car parking facilities, buy one get two,  20% discount,  warranty, etc.

2. Informative advertising.

             In this advertisement various information about the products or services, public warnings,  precautions, etc. are shared to the public. It may be paid or free form of advertising.

Eg:- Name of the shop, Location of the shop, Contact details, New product or service, Advertising for employees, Warning and instructions,  New events such as exhibition, sports match, music shows, etc.

3. Competitive advertising

             This type of advertising is carried out by different producers of different brands emphasizing their own brand is the best. Each producer tries to compete with other producers in order to increase sales and market.

            Eg:- Advertisements of soap, cool drinks, etc.

4. Collective advertising.

             When all the producers of the same industries combine to advertise their products is called collective advertising. These advertisements are usually sponsored by trade associations.

            Eg:- Join the tea set, Drink more tea,  There is no substitute for coffee, etc  

5. Sponsorship advertising.

             In this advertising a sponsor conducts a particular cultural or sports event and meets all the expenses himself. He can advertise through the events about his products and services.

            Eg:- Coca cola conducts foot ball match or cricket match, Wataniya conducts cultural meet and musical programme, etc

6. Institutional advertising.

Advertising whose purpose is to promote the image of a business organization is called institutional advertising. This advertising is also used to create public awareness of a business firm or to improve its reputation in the marketplace.

Eg:- Educational institutes, Coca-Cola, etc.

ADVERTISING MEDIA

            Advertising media are the instruments or methods used to pass information from the advertiser to the public.

Types of advertising media

1. Television advertising.

            Advertisement through TV is known as television advertisement. Nowadays it is popular because which can carry both audio and visual messages.

2. Internet advertising

            This is the latest trend of advertising used internet services. It enables the consumers to contact the sellers and purchase by paying through internet using cash cards. It provides worldwide acceptance for advertisers.

3. Radio advertising.

            It is a traditional mode of advertising by which radios are used for passing audio messages. It is widely circulated and preferred by most of the people.

4. The newspaper.

These are common method of advertising by which news papers carry the messages of advertisers. It is cheap as well as can be kept for long time.

5. Posters.

            This is a cheapest mode of advertising using a sheet of paper carrying a message printed in attractive colours.

6. Magazines or Trade journals.

            These are printed mode of advertising through the periodicals and distributed weekly, monthly, yearly, etc.

7. Window display.

            When the products are exhibited beautifully through the windows of the shop is called window display. These displays are made in front of the shops.

8. Digital bill board

            These are electric displays placed in front of the shops and in public places to show pictures or name of a particular product.

9. Flyer (Pamphlet)

            A flyer is a form of paper advertisement intended for wide distribution and typically posted or distributed in a public place, handed out to individuals or sent through the mail.

METHODS OF ADVERTISING APPEAL

            Advertising appeals are the techniques or methods or devices used within the advertisement in order to make it more attractive.

                        Eg:-  Colour, shape of the products, back ground music, demonstration by famous persons like film star, foot ball star, singer, cartoon characters, animals, etc.

           

METHODS OF SALES PROMOTION

            These are methods used to promote sales as part of advertising.   The aims of sales promotion are same as those of advertising, but promotions schemes tend to demand more of the consumer than just watching or reading of advertising.

Eg:- Discounts, Free gifts, Free samples, Loss leader, buy one get two offers, etc.

1. Discounts.

                      This is a special percentage of reduction given by the seller to the buyers on selling price for a particular period of time for the purpose of increasing sales.

2. Free gifts.

                      This is a surprise product given as free along with certain purchases in order to increase sales during a particular occasion.

3. Free samples.

                         These are free samples of new products given to the consumers without charging any money. This is given in order to capture market for the new products.

4. Loss leader.

                         This is a method followed by a new retailer to attract consumers by selling goods at lower price than cost price. 

5. Coupons.

                        This is method of sales promotion by which the consumers will be given special coupons on each purchase from certain shops, these coupons can be returned and certain amount will be refunded to the buyers.

6. Competitions.

                        Sometimes producers may organize competitions for the buyers those who purchase of several packets of the producer’s goods. It consists of lucky draw, mega prize, free tour, etc.

7. Loyalty cards.

                        Under this scheme the regular customer is given a card which benefits him when purchases goods repeatedly from the same shop. When the purchases reach to the fixed target, the customer will be given a cash discount or a voucher for further purchases.   

  

DIFFERENCE BETWEEN ADVERTISING AND SALES PROMOTION.

1. Advertising is a part of sales promotion.

2. Advertising spreads information where as sales promotion boosts the sales.

3. Advertising is happening mostly outside of the shops where as sales promotion is taken place within the shops.

4. Advertising is focused to long run where as sales promotion may be focused for a particular limited period such as New Year, Eid, Christmas, etc

LATEST TRENDS IN ADVERTISING

1. Internet

            Advertisements through the internet ensure world-wide coverage to the message. Business firms can create their own websites for conveying their messages. It is cheaper and offers global contacts to the customers.

2. Digital bill board.

            These are electric displays placed in front of the shops and in public places to show pictures or name of a particular product.

3. Mobile advertisement.

            Advertisements over the moving objects are considered as mobile advertisements. Eg:- Advertisements on vehicles.

ADVANTAGES OF INTERNET ADVERTISING

1. It provides wide area than all other media –worldwide accepted.

2. It provides 24 hrs services.

3. Consumers can contact to the sellers, purchase the goods and can pay money on-line.

4. It helps in mail order business.

DISADVANTAGES OF INTERNET ADVERTISING

1. Chance of misuse and malpractices.

2. High cost of investment to install internet.

3. It cannot be possible where there is no internet facility.

4. Lack of technical knowledge about computers.

ADVERTISING AGENCY

     An advertising agency is a business organization which develops or creates and places advertisements in the suitable media on behalf of a firm.

Functions of advertising agents.

1. Provide advices on best form of advertisements to the relevant business firms

2. Creating the advertisement for the business organizations.

            3. Conduct market research

            4. Helps to select suitable media for the business organization on the basis of their target, budget, etc.

FACTORS TO BE CONSIDERED BEFORE SELECTING A MEDIA FOR ADVERTISING

1. Nature of the product.

             According to the type of product the media can be selected. For example,  if the product is perishable the suitable media is poster or local news papers.

2. The Target

            The target means the group of people to whom the advertisement is prepared for. For example:-Products for youths, for women, for children, etc.   

3. Market (Advertising coverage)

            The media can be selected according to the market that is local market or national market or international market. According to the area the media may be changing.

4. Cost of advertising (budget).

            If the business organization has enough budgets they can select expensive or mass media which will cover wide area.

5. Time

            The media can be selected according to the time that how long the advertiser wants to last his message in the minds of public. On the basis of this, either short message or wide message can be given.

6. Image to be conveyed

            According to the image to be conveyed, the advertiser can use different methods of appeal. For example if the message for children, he can use children or cartoon characters in the image. For the sales of football and sports equipments, he can use a foot ball star.