Classification and Types

of Advertising
Learning Objectives

• At the end of the lesson, the students will be able

to:
• Identify the different classifications and types of
advertising; and
• Differentiate the various classifications and types of
advertising.
Classification and Types of Advertising

1. Product-Related Advertising
A. Pioneering Advertising
B. Competitive Advertising
C. Retentive Advertising
2. Public Service Advertising
3. Functional Classification
A. Advertising Based on Demand Influence Level (Primary and
Selective Demand (Stimulation)
B. Institutional Advertising
Classification and Types of Advertising

4. Advertising based on Product Type

A. Consumer Advertising
B. Industrial Advertising
5. Trade Advertising
A. Retail Advertising
B. Wholesale Advertising
6. Advertising based on Area of Operation (National, Local, and
Regional Advertising
7. Advertising according to Medium Utilized
Product Related Advertising

• It is concerned with conveying information about and

selling a product or service.
• Product advertising has three types: Pioneering,
Competitive, and Retentive Advertising.
Product Related Advertising

• Pioneering Advertising
• This type of advertising is used in the introductory stages in
the life cycle of a product. It is concerned with developing a
“primary” demand. It conveys information about, and selling
a product category rather than a specific brand.
• For example, the initial advertisement for black – and –
white television and color television. Such advertisements
appeal to the consumer’s emotions and rational motives.
Product Related Advertising

• Competitive Advertising
• It is useful when the product has reached the market-growth
and especially the market-maturity stage. It stimulates
“selective” demand. It seeks to sell a specific brand rather
than a general product category. It is of two types:
• Direct Type: It seeks to stimulate immediate buying action.
• Indirect Type: It attempts to pinpoint the virtues of the
product in the expectation that the consumer’s action will be
affected by it when he is ready to buy.
Product Related Advertising

• Retentive Advertising
• This may be useful when the product has achieved a
favorable status in the market – that is, maturity or declining
stage. Generally in such times, the advertiser wants to keep
the product’s name before the public. A much softer selling
approach is used, or only the name may be mentioned in
“reminder” type advertising.
Public Service Advertising

• This is directed at the social welfare of a community or a

nation. The effectiveness of public service advertisements
may be measured in terms of the goodwill they generate
in favor of the sponsoring organization.
• Advertisement on not mixing drinking and driving is a good
example of public service advertising. In this type of
advertising, the objective is to put across a message
intended to change attitudes or behavior and benefit the
public at large.
Functional Classifications of Advertising

• Advertising may be classified according to the

functions that it is intended to fulfill.
• Advertising may be used to stimulate either primary demand
or selective demand.
• It may promote either the brand or the firm selling that
brand.
• It may try to cause indirect action or direct action.
Advertising Based on Demand Influence Level

• Primary Demand Stimulation

• Primary demand is demand for the product or service rather than
for a particular brand. It is intended to affect the demand for the
type of product, and not the brand of that product. Some advertise
to stimulate primary demand.
• When a product is new, primary demand stimulation is appropriate.
At this time, the marketer must inform consumers of the existence
of the new item and convince them of the benefits flowing from its
use. When primary demand has been stimulated and competitors
have entered the market, the advertising strategy may be to
stimulate the selective demand.
Advertising Based on Demand Influence Level

• Selective Demand Stimulation

• To establish a differential advantage and to acquire an
acceptable sort of market, selective demand advertising is
attempted. It is not to stimulate the demand for the product or
service.
• The advertiser attempts to differentiate his brand and to
increase the total amount of consumption of that product.
Competitive advertising stimulates selective demand. It may
either be direct or indirect type.
Activity

• Group yourselves into 4.

• Create a 1-minute advertisement based on the classification of
advertising that was assigned to you through draw lots.
• You will be scored based on the following criteria:
• Appropriateness of the ads to the classification 20points
• Teamwork 10points
• Portrayal of own roles 10 points
• Total 40 points
Institutional Advertising

• Institutional Advertising may be formative, persuasive or reminder

oriented in character.
• Institutional advertising is used extensively during periods of product
shortages in order to keep the name of the company before the public.
It aims at building for a firm a positive public image in the eyes of
shareholders, employees, suppliers, legislators, or the general public.
• Institutional advertisements are at consumers or focus them upon
other groups, such as voters, government officials, suppliers, financial
institutions, etc. If it is effective, the target groups will respond with
goodwill towards, and confidence in the sponsor.
Advertising Based on Product Type

• Consumer Advertising
• Most of the consumer goods producers engage in consumer product
advertising. Marketers of pharmaceuticals, cosmetics, scooters,
detergents and soaps, cigarettes and alcoholic beverages are
examples.
• Industrial Advertising
• Industrial executives have little confidence in advertising. They rely on
this form of promotion merely out of fear that their competitors may
benefit if they stop their advertising efforts. The task of the industrial
advertiser is complicated by the multiple buying influence
characteristics like, the derived demand, etc.
Trade Advertising

• Retail Advertising
• This may be defined as “covering all advertising by the stores
that sell goods directly to the consuming public.” It includes,
also advertising by establishments that sell services to the
public, such as beauty shops, petrol pumps and banks.
• One aspect of retail advertising is co-operative advertising. It
refers to advertising costs between retailers and
manufacturers. From the retailer’s point of view, co-operative
advertising permits a store to secure additional advertising
that would not otherwise have been available.
Trade Advertising

• Wholesale Advertising
• Wholesalers are, generally, not advertising minded, either
for themselves or for their suppliers. They would benefit
from adopting some of the image-making techniques used by
retailers – the need for developing an overall promotional
strategy. They also need to make a greater use of supplier
promotion materials and programs in a way advantageous to
them.
Advertising Based on the Area of Operation

• National Advertising
• The term ‘national advertising’ has a special connotation that
advertising is not confined to any geographic area within the nation.
• This type of advertising is undertaken mostly by a marketer of branded
product or services, sold through different outlets in the distribution
channel, wherever they may be located and appears in both national
and regional media like print, electronics, outdoor etc.
• Apparently the term ‘national advertising’ conveys mass marketing
effort. In reality this does not necessarily mean that the product is sold
nationwide. The goal is to inform, persuade or remind consumers about
company or brand. National advertising often identifies a specific target
audience and attempts to create an image for the product.
Advertising Based on the Area of Operation

• Regional Advertising
• It is geographical alternative for organizations.
• Local Advertising
• It is generally done by retailers rather than manufacturers.
These advertisements save the customer time and money by
passing along specific information about products, prices,
location, and so on. Retailer advertisements usually provide
specific goods sales during weekends in various sectors.
Advertising according to Medium Utilized

• The most common classification of advertising is by the medium

used. For example: TV, radio, magazine, outdoor, business
periodical, newspaper and direct mail advertising.
• This classification is so common in use that it is mentioned here
only for the sake of completeness.