Unit 1 ABM
Unit 1 ABM
- 9586075954)
Unit 1
INTRODUCTION TO ADVERTISING
(20% weightage)
Syllabus Topics
Definition, Objectives, Functions and Classification of Advertising, The role of advertising in
Marketing, The role of advertising agencies
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DEFINITIONS OF ADVERTISING
FEATURES OF ADVERTISING
2. Information: Advertising informs the buyers about the benefits they would get when they
purchase a particular product. For this it is necessary that the information given is complete
and true.
3. Persuasion: The advertiser expects to create a favourableattitude among the potential buyers
which will lead to favourable actions. Any advertising process attempts at converting the
prospects into customers. Hence, advertising is an indirect salesmanship. It attempts to
persuade the potential buyers
4. Profit Maximisation: True advertising does not attempt at maximising profits by increasing
the cost. It maximizes profits by promoting the sales. This way it does not lead to increase in
the price of the product. Thus, it has a higher sales approach rather than the higher-cost
approach.
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
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gets good market because of its identity with the reputed corporate body.
7. Consumer Choice: Advertising helps the consumers in making 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 organised knowledge. Advertising is now
treated as a profession with its professional bodies and code of conduct for members.
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 a successful campaign.
OBJECTIVES OF ADVERTISING
1. Informative advertising –
This type of advertising aims to create awareness and information of new products or new
features of existing products. These ads include informing the market about price changes,
explaining the customers how the product works, describing available services, correcting
false impressions, reducing buyers’ fears, building a company image etc.
2. Persuasive advertising –
It aims to create liking, preference, conviction, and purchase of a product or service. These
types of ads will persuade the customers to purchase now, building brand preferences,
encouraging switching to their brands, changing customer perceptions of product
attributes.
3. Reminder advertising –
Reminding customers that the product may be needed in the near future, reminding
customers where to buy the product, keeping the product in customers’ minds during off
seasons, maintaining top-of-mind product awareness are some of the objectives of
reminder advertising. For example – Pepsi and Coca-Cola ads on television are designed
mainly to remind people about their brands.
4. Reinforcement advertising –
It aims to convince current purchasers that they made the right choice. These ads will
reduce post purchase dissonance in the minds of customers. Hero Honda has recently
issued ads in newspapers that its Hero Honda CD Dawn vehicles sold 1, 00,000 in 100 days.
This will reinforce the existing owners as well as prospective customers.
Advertisements are used for presenting a new product in the market. New product needs
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Mass media is used for promoting the product so that its knowledge reaches wide
markets.
# 2. Creation of Demand:
Advertisements often try to match the product qualities with the customer’s requirements
so that they realize the need of the product.
Advertisement creates a favourable climate for maintaining or improving sales.
# 4. Creation of Goodwill:
Large scale advertising is often undertaken with the objective of creating or increasing the
goodwill of the company. This increases the market receptiveness of the company’s
product and strengthens its market position.
FUNCTIONS OF ADVERTISING
possible that goods that are enjoyed by rich people once, are being enjoyed by common man
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now.
ADVERTSING & BRAND MANAGEMENT, TY BBA (Sem 5), VNSGU
Dr. Zakir Patel, Prof, Naran Lala College of Comm. & Mgt, Navsari (Mob. - 9586075954)
CLASSIFICATION OF ADVERTISING
Management scientists have classified advertising on different criteria as follows;
1. Local Advertising: It is also known as retail advertising. It is undertaken by local retail stores,
departmental stores, co-operative stores, and other consumer goods. It is directed at local
customers. Media, used for local advertising, are shop decorations, local newspapers,
magazines, posters, pamphlets, hoarding, new signs, local cinema houses, etc.
2. Regional Advertising: It has wider coverage, as compared to local advertising. It covers a
particular region, which may be one state, or, more than one state. It is undertaken by
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manufacture, or, regional distributor of a product. Media, used for regional advertising,
include regional newspapers, magazines, radio, regional T.V., outdoor media, etc. It is ideally
used for launching a new product in a specific region.
1. Consumer Advertising: This type of advertising is directed to the final consumers i.e., the
individuals, who buy, or, use the consumer products, or services, for example, soap,
toothpaste, toothbrush, tea, textiles, etc., for themselves and for their families.
1. Print Media Advertising: The print media consists of newspapers, magazines, journals,
handbills, etc. No newspaper or, journal, today, can survive without advertising revenue. Print
media advertising, even today, is the most popular form of advertising.
2. Electronic or Broadcast Media Advertising : Electronic, or, broadcast media consists of (i)
radio, (ii) television, (iii) motion pictures, (iv) video, and (v) the internet. The radio is audio in
nature, appealing only to the sense of sound (ears). Radio advertising is more effective in rural
areas, as compared to urban regions. Television, as an advertising medium, is more attractive
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and effective because it is an audio-visual medium appealing to both the senses of sight
sound (eyes and ears). Different methods, such as, spot announcements, sponsored
programmes, etc., are used for broadcasting advertising messages.
3) Outdoor Media :
This include posters, neon signs, transit, point of purchase (POP), etc. Outdoor advertising can
be a good supporting media to other forms of advertising. It is a good form of reminder
advertising, especially, the POP advertising.
4) Other Media :
This includes direct mail, handbills, calendars, diaries, cinema advertising, internet and so on.
These miscellaneous media can play an important supporting role to the major media such as
television, and newspapers.
1. Direct Action and Indirect Action Advertising: Direct action advertising is undertaken to
obtain immediate response or action on the part of target audience. Examples include
discount sales advertising, sale along with free gift offers, and mail-order coupon sales, etc.
The media used is mostly newspapers, and television. Indirect action advertising is
undertaken to influence the audiencein respect of advertiser’s brand. The advertiser expects
the target audience to prefer his brand as compared to competitors whenever a buying
decision arises in future.
the buyers about the product hence, it is also known as reminder advertising.
Role and Significance of Advertisements in Marketing can be divided into following parts;
1. Advertising and Consumers
2. Advertising and Promotion
3. Advertising and Price
4. Advertising and Distribution Channel
5. Advertising and Sales force
1. It helps in decision-making:
The present-day industry has been able to provide with the largest possible varieties of
products to such an extent that the consumers find it difficult to decide. Further, each
producer claims that his own products are the best.
In such situation, it is advertising that helps the consumer to select the best by providing
him with comparison of features, prices, utility, quality, durability, convenience etc.
3. Persuasion:
When business firms offer similar products, the firm must not only inform the customers
about the product’s availability, but also persuade them to buy it.
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5. Reminder:
If target customers already have a positive attitude towards a firm’s product or service,
then a reminder may be necessary.
Well-established brands need to remind the customers about their presence in the market.
For eg., ‘Raymond – the complete man’ campaign is designed to remind the customers.
6. Brand Loyalty:
Advertising helps to develop brand loyalty. Brand loyalty results in repeat purchases and
favourable recommendations to others by existing customers.
Sales promotion, effective personal selling, timely and efficient direct marketing, and other
techniques help to develop brand loyalty.
7. Brand Image:
An advertiser helps to develop a good image of the brand in the minds of target audience.
A good image helps to increase sales, meet competition etc.
8. Expansion of Markets:
Successful advertisements results in expansion of the markets. A marketer may intend to
expand markets from the local level to the regional level, from the regional level to the
national level, and from the national level to the international level.
Through advertising, it is possible to control the product prices with profit, particularly the
retail prices.
Very often the greedy retailers exploit the needy consumers by charging higher prices. If
this consumer exploitation is not controlled, both the producers and consumers are to
suffer without their faults. The manufacturer can help himself and consumers by printing
the consumer prices on the product packages. Today, product package protects not only
the contents of it but also the consumer interest.
Advertisements creating awareness about the price helps control exploitation of
consumers.
Faster sales gives specific advantages such as reduced capital lock-up, loss of stock, and
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increased profits. Advertising gives him freedom to better serve the needs of consumers.
Therefore, he earns better by serving better.
2. It acts as salesman:
Advertising has been rightly described as salesmanship in print.
Most retail organizations do not employ large number of salesmen. They are willing to
spend on advertising which attracts consumers to the stores.
3. It instils self-confidence:
A sales-force that is self-confident is an asset to the marketing department. Advertising
helps the salesforce by building confidence in them.
Advertising, by educating sales-force, acts a creative force as it instills self-confidence,
initiative and drive in them.
satisfies the brand marketer (advertiser). The responsibilities of ad agencies range from
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2. Market Research:
Market demand and supply are ever-changing in today’s rapidly evolving digital economy.
An advertising agency has to undergo extensive market research on the product and to
better understand changing customer needs in order to create better advertisements and
brand messages. The ads must be relevant and contemporary.
3. Ad Media Considerations:
Ad agencies need to be mindful of their target audience and determine the relevant media
for ad creation and outreach. Developing, designing and launching print ads (newspaper,
magazine, brochures, pamphlets), audio ads (radio) and video (TV, YouTube, etc.) ads,
including billboards and posters campaigning are all a part of the ad creation for brands.
4. Content Creation:
No advertisement is complete without appropriate content – be it a slogan or a tagline,
content for promotion or branding, or content for websites and other media. Developing
effective content strategies for advertising plays a very important role. Ad agencies need
to be very much creative in presenting the content of advertisement.
6. Direct Marketing:
Direct marketing inculcates the channels of email marketing, telephone marketing, mail
order, rather than through retailers. A direct marketing campaign helps in inducing a
degree of personalization and connection. This also includes campaigning through mailer
coupons, gift vouchers, loyalty rewards etc.
7. Public Relations:
Public Relation is a key aspect looked after by ad agencies to ensure optimum publicity and
the strength of the client’s (advertiser) brand image. Public relations uses - press releases,
talk shows, fairs, exhibitions, events, and even writing columns and articles in trade
publications. The fundamental objective of this department of an ad agency is to build and
maintain goodwill with various sections of the public.
The tools used in communicating with these publics are institutional or corporate
advertising and publicity. The main job of this department is to build stronger relations
between clients and the various sections of the public customers, employees, middlemen,
shareholders. A minor job is to do a public relations job for the agency itself with
prospective, and present clients.
8. Revenue Generation:
Ad agencies are responsible for revenue generation for clients. Agencies need to ensure
that the ads designed by them are relevant to their target audience and generate quality
revenue for their clients.
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