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BBA EAMM Unit 1
BBA EAMM Unit 1
History of Advertising:
ADVERTISEMENT - AN INTRODUCTION
Advertising is a powerful communication force, highly visible, and one of the most important
tools of marketing communications that helps to sell products, services, ideas and images, etc.
Many believe that advertising reflects the needs of the times. One may like it or not but
advertisements are everywhere. Advertisements are seen in newspapers, magazines, on
television and internet and are heard on radio. The average consumer is exposed to a very
large number of advertisements every day, particularly the urban and semi-urban population.
It seems almost impossible to remain totally neutral and not take any notice of modern-day
advertising.
The most visible part of the advertising process is the advertisements that we see, read, or
hear and praise or criticize. Many suitable adjectives are used to describe advertising,
depending on how an individual is reaching, such as great, dynamic, alluring, fascinating,
annoying, boring, intrusive, irritating, offensive, etc. Advertising is an indicator of the growth,
betterment and perfection of civilization. It is part of our social, cultural and business
environment.
It is not at all surprising that advertising is one of the most closely scrutinized of all business
institutions. In today’s environment, not only are advertisers closely examined by the target
audience for whom that advertisement is meant, but by society in general.
ADVERTISING – DEFINITION
“Advertising is any paid form of non-personal presentation and promotion of ideas,
goods and services by an identified sponsor.” – American Marketing Association.
“Advertising is controlled, identifiable information and persuasion by means of mass
communications media.”
“Advertising is the non-personal communication of marketing-related information to a
target audience, usually paid for by the advertiser, and delivered through mass media in
order to reach the specific objectives of the sponsor.” – John J Burnett.
“Advertising is a message paid for by an identified sponsor and delivered through mass
medium of mass communication. Advertising is persuasive communication. It is not
neutral; it is not unbiased; it says; ‘I am going to sell you a product or an idea.”- J Thomas
Russell and W. Ronald Lane
MEANING OF ADVERTISING:
Advertising is the action of calling public attention to an idea, good, or service through
paid announcements by an identified sponsor.
What is advertisement?
Any paid form of non- personal presentation and promotion of ideas, goods or services
through mass media such as newspapers, magazines, television or radio by an identified
sponsor.
OBJECTIVE OF ADVERTISEMENT
● To increase support: advertising increases the morale of the sales force and of
distributors, wholesalers and retailers.
● To stimulate sales amongst present, former and future customers. It involves decision
regarding the media.
medium.
(v) The function of advertising is to increase the profitable sales volume. That is,
advertising expenses should not increase disproportionately.
Advertising generally includes the following forms of medium:
The messages carried in-
➢ Newspapers and magazines;
➢ Radio and television broadcasts;
➢ Circular of all kinds, (whether distributed by mail, by person, thorough tradesmen,
or by inserts in packages);
➢ Dealer help materials,
➢ Window display and counter – display materials and efforts;
➢ Store signs, motion pictures used for advertising,
➢ Novelties bearing advertising messages and Signature of the advertiser,
➢ Label stags and other literature accompanying the merchandise.
To Persuade
Persuading customers to perform a particular task is a prominent objective of advertising.
The tasks may involve buying or trying the products and services offered, to from a brand
image, develop a favourable attitude towards the brand etc.
To Remind
Another objective of advertising is to reinforce the brand message and to reassure the
existing and potential customers about the brand vision. Advertising helps the brand to
maintain top of mind awareness and to avoid competitors stealing the customers. This
also helps in the word-of-mouth marketing. Other objectives of advertising are subsets of
these three objectives. These subsets are:
Brand Building
Increasing Sales
Creating Demand
Engagement
Expanding Customer Base
Changing Customers’ attitudes, etc
CHARACTERISTICS OF ADVERTISING
Paid Form: Advertising requires the advertiser (also called sponsor) to pay to create
an advertising message, to buy advertising media slot, and to monitor advertising
efforts.
Tool for Promotion: Advertising is an element of promotion mix of an organization.
One Way Communication: Advertising is a one-way communication where a brands
communicate to the customers through different mediums.
Personal Or Non-Personal: Advertising can be non-personal as in the case of TV,
radio, or newspaper advertisements, or highly personal as in the case of social media
and other cookie-based advertisements.
TYPES OF ADVERTISING
Advertising is the promotion of a company’s products and services though different
mediums to increase the sales of the product and services. It works by making the
customer aware of the product and by focusing on customer’s need to buy the product.
Globally, advertising has become an essential part of the corporate world. Therefore,
companies allot a huge part of their revenues to the advertising budget. Advertising also
serves to build a brand of the product which goes a long way to make effective sales.
There are several branches or types of advertising which can be used by the
companies. Let us discuss them in detail.
Print Advertising - The print media has been used for advertising since long. The
newspapers and magazines are quite popular modes of advertising for different
companies all over the world. Using the print media, the companies can also promote
their products through brochures and fliers. The newspaper and magazines sell the
advertising space and the cost depends on several factors. The quantity of space, the
page of the publication, and the type of paper decide the cost of the advertisement. So,
an ad on the front page would be costlier than on inside pages. Similarly, an ad in the
glossy supplement of the paper would be more expensive than in a mediocre quality
paper.
Broadcast Advertising - This type of advertising is very popular all around the world. It
consists of television, radio, or Internet advertising. The ads on the television have a large
audience and are very popular. The cost of the advertisement depends on the length of
the ad and the time at which the ad would be appearing. For example, the prime-time ads
would be more costly than the regular ones. Radio advertising is not what it used to be
after the advent of television and Internet, but still there is specific audience for the radio
ads too. The radio jingles are quite popular in sections of society and help to sell the
products.
Outdoor Advertising - Outdoor advertising makes use of different tools to gain
customer’s attention. The billboards, kiosks, and events and tradeshows are an
effective way to convey the message of the company. The billboards are present
all around the city but the content should be such that it attracts the attention of
the customer. The kiosks are an easy outlet of the products and serve as
information outlets for the people too. Organizing events such as trade fairs and
exhibitions for promotion of the product or service also in a way advertises the
product. Therefore, outdoor advertising is an effective advertising tool.
Public Service Advertising - As evident from the title itself, such advertising is for
the public causes. There are a host of important matters such as AIDS, political
integrity, energy conservation, illiteracy, poverty and so on all of which need
more awareness as far as general public is concerned. This type of advertising
has gained much importance in recent times and is an effective tool to convey
the message.
Print Advertising: Newspaper, magazines, & brochure advertisements, etc.
Covert Advertising: Advertisements displayed over the internet and digital devices.
Public Service Advertising: Product placements in entertainment media like TV show, YouTube video, etc.
IMPORTANCE OF ADVERTISING
and budget.
ADVANTAGES OF ADVERTISING
1.Reduces Per Unit Cost: The wide appeal of advertisements increases
the demand of the product which benefits the organization as it
capitalizes on the economies of scale.
DISADVANTAGES OF ADVERTISING
1. Increases the Costs: Advertising is an expense to the business and is added
to the cost of the product. This cost is eventually borne by the end consumer.
2. Confuses the Buyer: Too many advertisements with similar claims often
confuses the buyer in what to buy and should he buy the product or not.
3. Is Sometimes Misleading: Some advertisements use smart strategies to
mislead the customers.
4. Only For Big Businesses: Advertising is a costly affair and only big
businesses can afford it. This makes small businesses out of competition with
big businesses who gets to enjoy a monopoly in the market.
5. Encourages The Sale Of Inferior Products: Effective advertisements even
lead to the sale of inferior products which aren’t good for the consumers.
FUNCTIONS OF ADVERTISING
1.To identify products and differentiate them from others. (Branding)
6.To lower the cost of sales. (For the cost of reaching just one
prospect through personal selling, companies can reach thousands of
people through media advertising.)
A. Pioneering Advertising
B. Competitive Advertising
C. Retentive Advertising
2. Public Service Advertising
3. Functional Classification
A. 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 colour television. Such advertisements
appeal to the consumer’s emotions and rational motives.
B. 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:
a. Direct Type: It seeks to stimulate immediate buying action.
b. 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.
Example: Airline Advertising
C. Retentive Advertising:
This may be useful when the product has achieved a favourable status in
the market – that is, maturity or declining stage. Generally, in such
times, the advertiser wants to keep his product’s name before the
public. A much softer selling approach is used, or only the name may
be mentioned in “reminder” type advertising.
B. 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. The objectives vary
according to the firm and the situation. They are:
➢ To inform,
➢ To bring in orders,
➢ To induce inquiries,
➢ To get the advertiser’s name on the buyer’s list of sources,
➢ To provide support for the salesman,
➢ To reduce selling costs,
➢ To help get items in the news column of a publication,
➢ To establish recognition for the firm or its product,
➢ To motivate distributors,
➢ To recognition for the firm or its products,
➢ To motivate distributors, to create or change a company’s image,
➢ To create or change a buyer’s attitude.
The basic appeals tend to increase the rupee profits of the buyer or help in
achieving his non- monetary objectives. Trade journals are the media most
generally used followed by catalogues, direct mail communication, exhibits,
and general management publications. Advertising agencies are much less
useful in industrial advertising.
5. Trade advertising
●Retail Advertising
●Wholesale Advertising
A. Wholesale Advertising
B. Regional Advertising
It is geographical alternative for organizations. For example, Amrit
Vanaspati based in Rajpura claims to be the leading hydrogenated oil
producer in the Punjab. But, until recently, it mainly confined itself to
one of the vegetable oil brands distribution to Malihabad district (in
U.P. near Lucknow).
C. 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.
Criticism of Advertising
2. Message Creation: The sender creates the advertising message, which includes
the content, visuals, and overall creative elements designed to capture the audience's
attention, convey information, and evoke desired emotions or responses.
4. Medium and Channel Selection: The sender chooses the appropriate medium or
channel through which to deliver the message. This could include television, radio,
print media, digital platforms, social media, billboards, and more.
10. Noise: Noise refers to any interference or distractions that can disrupt the
communication process. Noise can be physical (such as background sounds),
semantic (language barriers), or psychological (preconceived notions or biases).