PPT-3

Introduction to Advertising
By
Dr.Monika Gulati
Associate Professor
Mlnc (DU)
 CONTENTS

➢ Introduction to Advertising
➢ Meaning and Definition of Advertising
➢ Features of Advertising
➢ Functions of Advertising
➢ Key players of Advertising
➢ Importance of Advertising
➢ Criticism Of Advertising
 Introduction to Advertising
• ‘A satisfied customer is your best advertisement’
• Advertising is a promotional activity for marketing a commodity.
• Advertising is the means of informing as well as influencing the general public to buy
products or services through visual or oral messages through T.V,newspaper etc.
• Advertising plays a significant role in today’s competitive world. Be it brands
,companies, personalities or voluntary or religious organizations use advertising to
communicate.
• Advertising is anything but Unimportant in current competitive time.(ex-dabur
vatika hair oil ad of cancer survivor(N.K)
• The communication role of advertising requires it to deliver market information to
buyer and seller.Its economic role provides information about product quality and
size which can help consumers make buying decision.
• Advertising can be traced back to the time of romans who would paint walls for
advertisements but in modern times advertising has become very commercial and it
entertains ,informs and simultaneously induces people to buy and remain a loyal
customer .
• According to Dentsu Digital Report 2021,advertising sector reported some degrowth
in 2020 due to Covid ,but is expected to grow at the rate of 10.8% by 2025.
 Meaning and Definition of Advertising
• The term ‘advertising’ is derived from Latin word ‘adverter’ which means ‘to turn
the attention'. Every piece of advertising is expected to turn attention to the
readers or the listeners or the viewers or the onlookers towards a product or
service or an idea.
• In commercial world, Anything that turns the attention to an article or a service
or an idea might be called as advertising.
• Advertising is paid, on-personal communication from an identifiable sponsor using
mass media to influence an audience to create awareness, generate interest and
increase sales .
• Advertising consists of the tools and techniques embraced to bring products
,services, opinions or causes to public notice with a view to persuade the public
to respond in a particular way
• Most advertising is not just for generating sales, it also supports certain social
causes like polio ravivar, girl education etc.
• Advertisements are a guaranteed method to reach target audience.
• Advertisements are different from other forms of marketing because it is paid
and creator has complete control over the content. By Creating an engaging ad
advertiser can find immediate positive impact on trade.
 Features of Advertising
• Non-Personal-advertising is impersonal means of disseminating information about the
product, service or idea. It doesn’t involve face to face interaction between buyer and
seller
• Paid form-Advertisement is paid by its advertiser .He buys time, space to inform about
product.
• Goods Services and Ideas-modern advertising not only promotes goods but services and
also ideas for upliftment of goals of public interest and social well being
• Identified Sponsor-advertisement is always done by some identified individual or company .
• Mass Appeal-Advertising message is always directed to mass audience and not to a
specific person.
• Controlled-the content time and direction of an advertisement are controlled by an
advertiser
• Promotion-the basic purpose of advertising is to persuade people to buy products and
services to achieve predetermined objectives of communication and sales.
• Art & Science- advertising is a science as its has existence of systemized body of
knowledge .At the same time it is an art as it involves creative application of ideas.
• Long Term Investment-advertising helps in building and creating equity. It helps in
building goodwill and brand image over a period of time.
• No Direct Relation with Sales-task of advertising is to make favorable image of co. And
its products in mind of consumer in relation to competitor and may not always be related to
sales.
 Functions of Advertising
According to Bovee and Arens functions of Advertising are-
a) Advertising increases demand for product. It turns non-users into users (e.g use
of mouth wash, perfumes etc.) attracts users of competitive brands (ex.washing
powder, cola ,cosmetics etc.) retains existing customers by reinforcing (ex airline
fare or preview sale etc.)
b) Advertising helps in increasing primary demand (ex ads of milk,bread,fruits etc)
where focus is on benefit of product rather than a brand.
c) It attempts to generate sales by highlighting the variety of uses of product and
frequency of use(ex,face wash, shampoo etc.)
d) It suggests reducing the time between purchase as somethings have to be
discarded (ex,toothbrush etc.)
e) It helps to identify products and differentiate them from others
f) It induces consumers to try new products and how to use same product
differently.
g) It builds brand preference, equity and loyalty
Mainly advertising does three functions-
A) Creation of knowledge and awareness B) Creating of liking and preference
B) Creation of Conviction and Purchase.
 Key Players of Advertising

The Advertising The Vendor (the

The Advertiser The Media Suppliers)
agency

1 2 3 4

The targer
Audience

5
 Key players of Advertising
1. The Advertiser-for advertisement an advertiser (can be a person or an
organization) should be there. He is the one who initiates the advertising effort
of Communicating, informing to the prospect for more sales.
2. The Advertising Agency-the organization may not have time to do complete job
of advertising itself ,so they engage /hire specialized agencies for the job which
involves selecting the theme, deciding the layout etc.They convert goals of client
into creative work to be noticed by target audience.
3. The Media-it means selection of channel of communication that will carry the
message from the advertiser to the audience is a very crucial decision in present
tech world.
4. The Vendor (The Suppliers)-they are the suppliers who provide specialized
services like artists, writers, photographers etc. They compile together and give
shape and meaning to the advertisement
5. The Target Audience-it is not possible to develop marketing strategies for every
consumer .So target market identification isolates consumer with similar
lifestyles, needs and likes and specific requirements to be incorporated in
advertisements’ ex. Kellogg's is eaten by both kids and elders so it can have
different ads for both age groups, if washing powder is to be sold in rural area
and to illiterate population then company should draft a good radio message for
such target audience.
 Importance Of Advertising

Benefits to Benefits to Benefits to the Benefits to the

Manufacturer Customers Salesman Society

1 2 3 4

5
 Importance of Advertising-1
Benefits to Manufacturers/Traders
1.Meeting Competition-it helps in having edge over competitor and because of this it helps
to have edge over competitors and it creates more loyal customers, by giving them better
pricing etc.as a result product stays in mind and heart of customer.
2.Steady Demand-it creates regular dd for product by overcoming seasonal and other
fluctuations.it helps to maintain steady dd.
3.Higher Sales Volume-it promotes mass selling. More interest creates more dd hence
more sales.
4.Crucial for launch of New Product-regular advertisements helps to create awareness
and more acceptability by recognizing and stimulating their needs so that so that they try
new products.
5.Optimization of Profits-it increases sales and hence lowers cost of production
6.Builds Brand Equity-it portrays product as more than just bundle of attributes. They
build image of product such that customer is confident to buy same.ex clothes of
Gucci,Prada
7.Employee Morale-if organization gets loyalty and support of customers its workforce
also feels much secure and they work for better performance.
8.Economies of Scale-in today’s competitive world advertising comes with better ideas to
face competition. Every organization comes with new options in products to stay relevant.
9.Direct Contact-inspite of it being a mass communication concept, it helps to establish
direct contact with customers through advertising agencies. It also supports Personal
selling.
 Importance of Advertising-2
Benefits to Customers
1.Education of customers-advertising provides users with information and knowledge of
new prices and uses of products. ex.ads of water purifier tell about benefits of safe water.
2.Convenience in Shopping-customers are aware in advance about features and availability
of products as a result even before they go for shopping they can make a decision.
3.Lower Prices-Effective advertising leads to reduced costs due to large scale production
and economies to scale. As a result customer also gets product at a less price.
Benefits to Salesman
1.Supports Salesman-if brand is popular it becomes easy for a salesperson to reach out to
prospective customer to convince him to purchase the product.
Benefits to Society
1.Employment Generation-it provides direct employment to people engaged in designing,
copywriting, media planners, ad agencies etc.
2.Standard Of Living-It improves standard of living of people by providing them with new
and improved products at reasonable rates. For ex microwave is of great benefit
3.Sustains the Press-it provides an important source of revenue to the press. As a result
newspapers are available at lower cost.
4.Helps to Solve social Problem-social advertising helps to fight causes like drug abuse,
gender bias, illiteracy etc.
 Criticism of Advertising
‘it is rightly said half the money spent on advertising is a waste but not sure which half’
1.Economic Issues in Advertising
a) Higher Prices-it is argued large amount of money is spent on advertising and this is cost is
transferred to consumers in form of higher prices.
b) Artificial Needs-it is argued that advertising creates artificial needs and encourages
wasteful consumption. Advertising promotes artificial living and creates demand for
unwanted goods.
c) Not Productive-it is argued that advertising does not produce any tangible goods and so is
considered to be a wasteful exercise.
d) Creates Monopoly-advertising creates brand preference and restricts free competition.
Large firms which can afford huge amount of money on advertising eliminate small firms by
creating brand monopoly.
2.Social Issues in Advertising
a) Deceptive-it is argued that advertising is often deceptive and misrepresents facts to
consumers. Exaggerated claims or flowery language are used to deceive customers.
b) Offensive-Sometimes advertising is found to be offensive and in bad taste. What is
offensive is often subjective determined by time and culture.
c) Consumption of Harmful products-Advertising makes people consume products like alcohol,
pan masala,cigrattes which might affect their health. Advertisers remind indirectly the
consumers about such products.
d) Reinforcing Stereotypes-Advertising has shown men in strong ,independent and achievers
and females as childlike, indecisive ,obsessed with their appearance.
e) Discontented Society-it affects value system as it suggests means to happier life lies in
acquisition of material things and it creates urge in people who cannot afford to buy.