UNIT-1V

ADVERTISING
Meaning of Advertising: -
It is a paid form of non-personal presentation and promotion of goods
and service or ideas by an identified sponsor. Advertising is a form of
communication used to promote or sell products, services, or ideas to
a target audience.
Attempts to seek the attention of your audience towards a product or
service.
Attempt to persuade and influence the audience through the different
kind of appeal.
Objectives of Advertising
Advertising serves several key objectives, depending on the business
or organizational goals. Some of the main objectives include:
1. Creating Brand Awareness – Introduces a product, service, or
brand to potential customers and increases its recognition.
2. Persuading Consumers – Encourages customers to choose a
specific brand over competitors by highlighting unique selling
points.
3. Informing the Audience – Provides information about product
features, prices, benefits, or updates to educate consumers.
4. Increasing Sales and Revenue – Drives demand for products and
services, ultimately leading to higher sales and business growth.
5. Building Brand Loyalty – Strengthens customer relationships
and encourages repeat purchases through consistent messaging.
6. Market Expansion – Helps businesses enter new markets or
target different customer segments.
7. Reminder – Aim to stimulate repeat purchase
 8. Reinforcement – To convince current purchases that customer
made the right purchase.

Classification of advertising: -
1. Print advertising: - Newspaper, Magazine
2. Broadcast advertising: - Television, Radio, Internet advertising
3. Outdoor advertising: - Events, Publicity
4. Covert advertising: - TV Serial, Movie
5. Public service advertising: - Road safety message, Rain Alert
message
Importance of advertising: -
1. Business Growth & Sales
 Helps businesses increase their sales by attracting more
customers.
 Drives demand for products and services, leading to higher
revenue.
2. Brand Awareness & Recognition
 Introduces new brands and products to potential customers.
 Helps establish a strong brand image in the market.
3. Competitive Advantage
 Differentiates a business from its competitors.
 Highlights unique selling points (USP) to attract customers.
4. Consumer Education
 Informs consumers about product features, benefits, and usage.
 Helps them make informed purchasing decisions.
5. Market Expansion
 Enables businesses to reach new customer segments and
geographical areas.
 Supports global brand expansion.
6. Encourages Innovation
 Businesses invest in research and development (R&D) to
improve products and stay competitive.
7. Economic Growth
 Boosts production and employment opportunities.
 Generates revenue for media industries (TV, newspapers, digital
platforms
8. Attracting customer
9. Revenue generation
 Advertising is directly tied to sales and revenue generation. By
showcasing the unique benefits of your products and services,
advertising guides potential customers through their buying
journey.
10. Market competition
11. Increased Goodwill: Advertising reiterates brand vision and increases
the brand’s goodwill among its customers.

Criticism of advertising: -
1. Misleading and Deceptive Practices
 Some ads exaggerate product benefits or make false claims.
 Misleading advertising can manipulate consumer decisions
unfairly.
2. Increases Product Costs
 Companies spend large amounts on advertising, which raises
product prices.
  Consumers ultimately bear the cost of expensive ad
campaigns.
3. Promoting unhealthy behaviour
4. confusing consumers
5. Creating Artificial needs
6. Impersonal
7. one way communication
8. Less Believable of message

Media of Advertising: -
Meaning: -

 Advertising media refers to the various channels or platforms

used to communicate promotional messages to the target
audience. These media help businesses and organizations reach
potential customers to inform, persuade, and influence their
buying decisions.
 Advertising media can be categorized into traditional (e.g.,
newspapers, TV, radio) and digital (e.g., social media, websites,
search engines). The choice of media depends on factors such as
target audience, budget, and campaign objectives.
 The effectiveness of advertising depends upon the selection of
media advertising for carrying the promotional message to the
target Audience.
 The media is a carrier which conveys the advertising to the
potential consumers.
Types of Advertising: -
1. Indoor advertising media: -
 Print Media: Newspaper, Magazine
 Broadcast: Radio, T.V
2. Outdoor advertising media: - Publicity, Door- to- Door, Sampling
3. Direct & Mail advertising media: - Sales letter, Price list
4. Folk advertising Media: - Magic show, Fair, Puppet show

Evaluating Advertising Effectiveness: -

1. Sales Measurement: Where advertising is the predominant
contributor to sales, the sales response is immediate and when
internal and external factors affecting sales are held constant or
are ineffective. Measuring effectiveness in terms of sales only is
not very logical or scientific as advertising is not the only
contributory factor to sales.
2. Pre- Testing: Evaluate audience reactions to ad concept before
production and test different version of an ad to determine the
most effective one.
3. During & After campaign Execution: It means to change in
sales before and after campaign.
4. Long term impact: The customer loyalty to assesses repeat
purchase and measure change in market position.
5. Recognition Test: Respondents are shown the actual
advertisement and asked whether they recognise it.
6. Unaided Recall Test: Respondents identify the advertisement
they have seen recently but are not shown any clue to help them
remember.
7. Cost Per Acquisition: The cost acquiring new customers through
advertisement.
8. Return on Advertisement spend
9. Offline Tracking
 SALES PROMOTION
Meaning:

 The word promotion is derived from the Latin word or

“Promovere” which means to move forward or to push
forward. Sales promotion is the combination of two words
sales promotion methods aim to capture the market and
increase the sales volume.
 Sales promotion is referred to the promotion activities
other than personal selling, Advertising and publicity
which stimulate consumer purchasing and dealer
effectiveness
 For Example: Discount, Coupons, Offers etc.
Characteristics:
1. To Attract New Customers
2. To Increasing Buying Response at the consumer’s
Level
3. To Create Brand Image
4. To Effect OFF- Season sales to boost the sales
5. To remove customer Dissatisfaction
6. These are short term activity
7. It does not include personal selling, Advertising and
publicity
Importance of Sales Promotion: -
1. Increases Sales Volume
 Provides an immediate boost to sales by encouraging quick
purchases.
 Discounts, coupons, and limited-time offers create urgency
among customers.
2. Attracts New Customers
 Promotions like free samples, contests, and introductory
discounts help in acquiring new customers.
 Encourages trial of new products by reducing the risk for
customers.
3. Retains Existing Customers
 Loyalty programs, cashback offers, and exclusive deals build
long-term relationships.
 Keeps customers engaged with the brand, reducing the chances
of switching to competitors.
4. Enhances Brand Awareness & Visibility
 Promotional campaigns attract public attention, improving brand
recall.
 Increases word-of-mouth marketing as customers share deals
and offers.
5. Helps in Clearing Stock
 Effective in selling excess or seasonal inventory without major
losses.
 Festive and end-of-season sales help businesses maintain cash
flow.
6. Differentiates from Competitors
 Unique promotional strategies help brands stand out in a
competitive market.
 Special deals create a competitive advantage, attracting more
customers.
7. Encourage Bulk Purchasing
 Buy 3 get 1 free offer
 8. Boosts Short-Term Sale
 Encourages immediate purchases, leading to a quick rise in
revenue.
 Helps businesses achieve sales targets within a short period.
9.Enhances Customer Experience

 Discounts, gifts, and rewards create a positive shopping

experience.
 Improves customer satisfaction, leading to repeat purchases
10. Encourage Trial of New Products

Methods of Sales Promotion: -

1. Discount & Price Reduction

For Ex: 5% off
2. Coupons
For Ex: 5000 shopping then get 20% off
3. Sampling
For Ex: Proving free products
4. Demonstration
For Ex: Providing Demo of electronic products
5. Contest
For Ex: Company organise games and provide gifts in return
6. Money Refund:
For Ex: if customer is not satisfied with product, then provide
money refund to them.

7.Premiums:

For Ex: Bu 3 Get 1free offers

8. After Sales Services:

For Ex: Warranty of Products like (2yr, 5yr, 10yr)
Functions of Sales Promotion:

1. Stimulating Consumer Demand

 Encourages immediate purchases through discounts,

coupons, and limited-time offers.
 Creates impulse buying with "Buy One, Get One Free"
(BOGO) and flash sales.
 Increases product trials using free samples and test offers.

2. Enhancing Brand Awareness & Visibility

 Promotional activities like contests, giveaways, and social

media campaigns help in brand recognition.
 Eye-catching Point-of-Purchase (POP) displays grab
attention in retail stores.

3. Increasing Sales Volume & Revenue

 Drives short-term sales growth by offering financial

incentives to customers.
 Encourages repeat purchases through loyalty programs and
cashback offers.

4. Customer Retention & Loyalty Building

 Reward programs and exclusive discounts for existing

customers strengthen brand loyalty.
 Referral programs encourage satisfied customers to promote
the brand to others

6. Differentiating from Competitors

 Unique promotions give brands a competitive edge in

crowded markets.
  Special deals attract price-sensitive customers away from
rival brands.

7. Short – term sales boost

8. Encouraging repeat purchase
9. To provide information about product

Publicity of sales promotion: -

Publicity helps spread awareness about sales promotions through

various communication channels.

1. Traditional Media Publicity:

o TV and radio advertisements

o Newspaper and magazine ads

o Billboard and banners

2. Digital and Online Publicity:

o Social media campaigns (Facebook, Instagram,

YouTube)
o Email and SMS marketing

o Google Ads and influencer collaborations

3. Public Relations (PR):

o Press releases and media coverage

o Organizing promotional events

4. Influencer marketing In-Store Publicity:

o Posters, flyers, and digital displays

o Announcements and live product demonstrations

5. Referral and Word-of-Mouth Marketing:

o Encouraging customers to share deals with friends

o Providing referral discounts or incentives

6. Sponsorships and Event Promotions:

o Sponsoring local events or contests

o Hosting exclusive sales events for loyal customers