FUNCTIONS OF ADVERTISING

A strong market research and analysis programme forms the support of an advertisement
campaign. The marketing strategy defines the profile of the product, the market segmentation,
the target audience in all possible details. This detailed brief would be given to an ad agency
and thoroughly discussed with them. This prepares the launching pad for an advertising
campaign to be launched. Professionals of the advertising industry take over the process
from this point onwards.
Advertising serves the following purposesIt introduces a new product in to the market.
It helps distinguish a product from its competitors.
Through persistent messages and associations, it creates a brand identity.
It sustains interest in an existing brand.
It creates brand loyalty.
It expands sales.
It creates new demand.
It creates a buzz and keeps the idea of the product going.
These then, are the challenges before the advertisers.
TYPES OF ADVERTISING
Print -newspapers, magazines, brochures, fliers and posters.
OOH -billboards kiosks tradeshows events
Broadcast advertising -Radio TV Digital Internet + Mobile + Social Media
'In film' promos
Celebrity endorsements
Cross promotions
Merchandise
Games (Mobile and computer)
Covert advertising
How To Select The Best Media?
Two factors will influence this decision. Budget and the possibility that the chosen medium offers to
comprehensively reach the highest percentage of one's target audience. The old paradigm divided these
media into two categories - Published media and Audio-visual media. Published media would include all
kinds of Newspapers, Magazines, Brochures, Fliers Visual and aural media would include Television, Radio,
Cinema, Billboards, Posters. Internet combines the properties of both the streams.
While the traditional media continue to exist and be relevant in their own ways, the digital media offers
exciting new possibilities due to convergence and a rapidly growing audience. No medium is absolutely
suitable for all kinds of products. All media are relevant due to their specific and significant relation to the
products that they are best suited to sell. If the target buyers of the product are young collegians in the
cities, then internet and social media may be the natural choices. But, if the product is mainly for the rural
buyers, then the other media like radio posters, newspapers and television will be better options.
All forms of media exist with their advantages and disadvantages
Newspapers

In India the highest percentage of spending on advertisements was on newspapers for the year 2010.
Newspaper advertisement rank highest for credibility for all media. It offers high local coverage and
immediate delivery of your message. It is low cost. It has a preservation value. People have the habit of
cutting out pieces and preserving them, Special sections like the shopping guide inculcate the habit in the
readers to regularly follow up that section. Sunday supplements have a higher and special readership.
On the other hand it has the disadvantages of existing in a cluttered and competitive environment
and also has low production quality. Newspapers have a short life span too.
 Magazines

Magazines Advertisement have much better visual and overall production quality. They also have longer
shelf life and assured and loyal readership. Since the magazine readership is a known factor, publication
houses already have a selected readership. Its disadvantages include inability to deliver messages
immediately, comparatively high costs and low frequency.
 Radio

Radio Advertisement have the following main advantages. They deliver the messages immediately. It has a
captive audience and the one that will share information locally with each other. It also has a low cost of
production. It can reach traveling audience too due to transistors, car, radios and mobile phones. The
disadvantages are one can disseminate only audio messages. The messages are ephemeral (Short Lived)
and have no shelf life. Listening sessions are typically cluttered with all kinds of messages, hence your
message exists in very competitive environment.
 Television

Three key phrases will define the importance of television to advertisers -Immediate delivery of messages, High
frequency of message and very high impact. In addition to these there are some other major advantages too.
Depending upon the channels and other associations, television advertisement carry high prestige. Also the reach of
television now days is phenomenally large as compared to any other medium. Moreover, the communication is
synchronous internationally. This factor reduces the cost per consumer substantially. One of the major disadvantages
of television is the very high cost of production and that of the airtime. Secondly, the message makes it impact
momentarily and then is replaced by another one. So no matter how powerful is the message it exists in a torrent of
many similar ones. Then remote control spoils the continuity further by offering an easy facility of channel surfing, so
there is no guarantee that the particular message will be seen uniformly as many times as it is aired.
Direct Mail

Direct mail may not have any glamour or high profile quality to it, but it is certainly a very effective channel of
communication. Normally it has been found to elicit the highest response rate of all media. It also offers the highest
level of selectivity of all media. The control over what is communicated is much better than the other channels. The
responses of the consumers are easy to measure and quantify in this form. The results are easy to test. In this form,
there is no clutter or noise problem, as it reaches the consumer directly and personally. Durability or life span of the
message is long. Direct mail is a particularly attractive option for small business owners, as it can communicate a
lot of information about a product or service and reach almost any conceivable target group for a relatively low cost.
There are certain disadvantages of direct mail system. Per consumer cost is very high. Since everyone tries out this
form, there can be over saturation and the feeling of junk mail may be associated with it. Some people may have the
resistance to buy through mail.
Outdoor

Out door or out Of Home [OOH] will include billboards, kiosks, tradeshows, and events. Billboards /
hoardings are most prominent. If they are in the right place then have highest visibility round the clock.
Large size does make an impact.
On the negative side are the following considerations -high initial costs are involved in setting up, impact
is hard to measure, not too much of content can be put and the cost per consumer is on the higher side.
Kiosks can be set up in malls and similar public places. Tradeshows and events have the advantage of
face to face interaction and large volume if people coming in, but the effort required is expensive.
 Cross promotion

"Cross promotion is a specific marketing tactic wherein two or more businesses team up together to reach
a broader shared population." "Cross promotion is a process in which two or more advertisers of a product
or service associate themselves with each other to increase their profile, reach more people etc
Celebrity endorsements

Celebrity endorsements can be very popular and build strong associations in the buyers, but
they are quite expensive to produce and air on prime time. Even state Governments are using
celebrities as brand ambassadors.
 Merchandise

good, clothes bearing the logo or names or designs of the products are another popular way to advertise, but
will be limited to the class of buyers. It is also called Specialty Advertising. A company can have its name
put on a variety of items, such as caps, glassware, gym bags, jackets, key chains, and pens. Since these
items remain in use over a long period of time, most companies are successful in achieving their goals for
increasing public recognition and sales through these efforts.
Games (Mobile and computer)

can be devised to promote the brand, but the reach is limited to mostly the young or tech
savvy consumers
Covert advertising

Covert advertising is presently a hot trend in promoting products and services. It embeds a product
or brand in entertainment and media. Like Aston Martin has promoted itself as the high profile car
used by the legendary character James Bond. The brand and car will have a very dramatic visual
presence in the film.
Advertising Trends: Digital Convergence
Like most areas of marketing, advertising is changing rapidly. New forms of media available
are blurring the distinction between different avenues. Convergence of different media is
giving rise to an advertising convergence. The convergence of television and internet opens
many potential opportunities for marketers to target customers in ways not available with
traditional television advertising. Even the print is merging into web. The Internet has become
new hub for the ICE age[ information, Communication, Emtertainment].
Podcasting Audio - Podcasting Video - RSS (Really Simple Syndication)Feeds -
Networked Gaming
Forms of Advertising
Public Service Advertising
Public Service Advertising is also known as Public Awareness Advertising, Social Service
Advertising and Social Awareness Advertising.
Public Service Advertising typically involves generating and transmitting short and precise
messages regarding a cause or a problem. The messages have to be dramatic to seak
immediate attention and for impact creation on the viewer/ reader. It usually will have a strong
appeal to discontinue wrong practices and/or inculcate new ones. The stress is always on
positive communication that believes in a better tomorrow. While planning the advertisement a
thorough understanding of the target group must be the starting point.
Public Service Advertising has become very popular and the trend is rising.
Advocacy Advertising
The term advocacy has become an important concept and practice on social activism. It has also
been institutionalized by NGOs, Government agencies as well as UN agencies.
Advocacy is an activity by an individual or by a group that seeks to influence public opinion on
matters of public importance such as electoral reforms. The idea is to raise a public debate
through media within the Governmental institutions. Sometimes advocacy may have a
perspective to influence public-policy and political decisions. Sometimes advocacy seeks to
modify resource allocation within the socio-economic sector. Lobbying, conducting public events,
publishing research and articles is very much a part of the scenario and advertising can become
an important part of the process.
Advocacy advertising is normally thought of as any advertisement, message, or public
communication regarding economic, political, or social issues. The ultimate aim of all advocacy is
to influence political and economic decision making in the interest of society at large or certain
groups within it.
Comparative Advertising
Comparative advertising compares one brand directly or indirectly with one or more competing brands.
This is very common and is used by nearly every major industry. This type of advertisingis particularly
resorted to by companies that are introducing a new product in a competitive market. The underlying idea
to be told to the consumers in comparative terms , could be how their new product is superior to all the
existing ones. Normally the competitor's product is never named directly, but implied. Also the
manufacturers have to be careful about not misinforming the public about their competitor's product as it
may attract a lawsuit. Comparative advertising is legal in Europe, United States, Canada, Australia and
many other developed countries, but some countries do not allow it. It is matter of attitude. The United
States' Federal Trade Commission (FTC) asserts that comparative advertising is "a source of important
information to consumers and assists them in making rational purchase decisions". It also "encourages
product improvement and innovation, and can lead to lower prices in the marketplace".
Everyone may not accept this uncritically as comparative advertising is known to have produced skepticism
among consumers. Secondly, there is no positive data regarding its success in changing the established
choices of the consumers. It can be tricky to resort to this technique, as if executed incompetently, it
reinforces attention to the competitor's product.
Cooperative Advertising
Cooperative advertising is a system that allows two parties to share advertising costs.
Cooperative advertising is when two businesses-- usually one very large business and one small business
cost of advertising by advertising together. The most commonly seen example of this form of advertising is
in case of local grocery stores. A large manufacturer of cold drinks will book large and exclusive space
under the control of the grocery shop to advertise its product with some consideration to the shop owner.
The advertisments would be prepared by the big company in its standard format and placed by the local
retailer, using the store's name. Its benefit to the manufacturer is being able to advertise at the local rate for
media, since all advertising is displayed by the local retailer. This usually works out cheaper than the national
rate.
The small business got a sign for cheap and the soft drink company got themselves a building to advertise
on. Cooperative advertising is found in print, radio, and television as well on the walls of buildings and on
billboards. Hence, it is symbiotic in nature.
Direct-Mail

We have seen the advantages and disadvantages of this form in the earlier chapter, but we
must understand it conceptually as the most direct and personal form of advertisement that
uses mass media. This is its uniqueness.
Point-of-Purchase Advertising
A lot of our buying is impulsive. Something attracts our attention and we end up buying it as an
on the spot decision. Point of purchase advertising is precisely designed to induce us into such
buying. Various window displays, floor stands, banners are strategically placed like near the
payment point in a shop- so that it catches your eye and induces the impulse to buy. Window
shopping may also induce this impulse. Banners anywhere can make you curious.
It is estimated that a lot of specific decisions about buying are made inside the retail shops and to
encourage the trend further a lot of large stores have introduced Dynamic POP (Plarler of Paris)
displays, small screen to 42"(or larger) LCDs and projection displays, helping deliver targeted
marketing content to shoppers at the point-of- decision.
Informational Advertising
Informational advertising is mostly used when a new product is first being introduced. It has a
comprehensive approach to the information regarding the product. The emphasis is placed upon
making the product name registering sharply, on stressing upon the benefits, and the possible
uses to the consumer. When sport utility vehicles (SUVs) were first introduced, the car
manufacturers used this strategy quite successfully.
Once the new product becomes familiar , then the campaign may change its pitch and go in for
more persuasive and brand building techniques.
When the aim of the advertising is to give people information about the availability, characteristics
and prices of goods, we call it "informational advertising." This sort of advertising increases the
consumer's range of choice and may improve the quality of the decisions consumers make.