Definitions of Advertising

News about a product (Albert Lasker, American Advertising pioneer).

News is merely a technique of presentation. Advertising is salesmanship in print (John E. Kennedy).

Purchased publicity, directed according to a definite plan, to bring about presently or in the future the sale of
commodities and services. It is sometimes used to gain acceptance of ideas which may lead the reader to act
or to refrain from acting in a certain way (Prof. A.J. Brewster & Prof. H.H. Palmer).

Advertising includes those activities by which visual or oral messages are addressed to the public for the
purpose of informing them and influencing them either to buy merchandise or services or to act or be
influenced favorably toward ideas, institutions, or persons featured (Prof. Neil H. Borden).

Advertising is the dissemination of information concerning an idea, service or product to compel action in
accordance with the intent of the advertiser (Advertising Age, USA).

Advertising is the printed, written, spoken, or pictured representation of a person, product, service, or
movement, openly sponsored by the advertiser and at his expense for the purpose of influencing sales, use,
votes, or endorsement (one of the judges).

Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified
sponsor (The American Marketing Association).

Advertising is distinguished from publicity in that the medium using publicity does not receive payment for its
use, and the sponsor is not always identified.

Characteristics of Advertising

1. Paid communication
Advertising is a form of paid communication in which an advertiser (communicator) conveys a
message (advertising appeal) to one or more people (target market). To communicate his message, the
advertiser purchases time or space in the media, which will convey it to the desired audience. Paying
the media gives the advertiser control over the content, time and direction of his message. This
element of control distinguishes advertising from publicity or even personal selling.

2. Non-personal
The use of the mass media makes advertising a non-personal relationship between the advertiser and
the target audience. No sales representative intervenes. Instead, the mass media transmit the message
or information rather than the actual commodity to the prospect.

3. Informs/influences
Advertising does not merely inform. It seeks action. Generally an advertisement persuades or induces
a person to buy a product after talking about its merits. Advertising must change or reinforce
consumer attitude or behavior in accordance with the objective of the advertiser, such as influencing
the consumer to shift from one brand to another or to embrace one belief, creed or faith instead of
another.
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4. Offers goods, services

Commercial commodities are not the only object of advertising. Services, whether technical
or professional, and ideas or even institutions can be subjects of advertising.

5. Has an Intent
Every advertiser uses advertising for an intent or other. Advertisements aim to draw a specific response
from its audience. Objectives are as varied as there are advertisers, with no absolute guarantee of
attainment.

What Advertising Can Do

1. Stir up buying when people are sitting on their cash and can induce families to spend their earnings
now rather than postpone purchases.

2. Has 2 kinds of effects: short term and long term.

Short term: to cause an increase in sales (normally soon after the advertisement appears), the time
depending on the product sold, but rarely more than 2 or 3 months. This effect can be measured fairly
accurately by market research.
Long term: less easily measured, but should not be ignored: the creation of a brand “image” or
customer loyalty.

3. Influence Attitudes, Practices and Values.

Advertising cannot change culture or manipulate society, but can influence product and brand selection
when a neutral favorable frame of reference already exists. For instance, advertising can influence
women to buy deodorant and perfumes because they know that society perceives a pleasant body odor
as a desirable trait.

4. Affect the Economy. Advertisers “manage” demands (Economist John Kenneth). Advertising
ultimately blocks other firms from entering an industry and leading to market power for the firm and
ultimately to higher prices.

5. Improve the Quality of Products. Heavy advertising normally implies that the seller is banking on
acceptance and repeat purchase. It is a natural tendency for consumers to buy a product again only if it
meets their standard. If it were poor quality, the advertiser would not expect repeat purchases.

6. Affect Elasticity of Demand. Advertising transmits information both directly and indirectly.
Advertising information allows consumers to confine their brand selections to the products that are
mostly related to their own tastes and to buy comparable products at the lowest price.

7. Influence Preferences. Advertising informs and persuades, thus, it influences consumers’

preferences.
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8. Micro Effects. Advertising does not only increase sales of the advertised brand but also of other
brands. On repeat purchases, advertising is usually less important than product quality, distribution,
and price. In other words, long-run sales are predicated upon a sound total marketing mix, not just
advertising.

9. Impact on Market Share. Brands with a small market share tend to spend proportionately more for
advertising than those with a large share due to 2 factors: (1) beyond a certain volume of advertising
expenditure, diminishing returns set in, causing firms with large market shares to hold back in
advertising, and (2) there is a minimum level of exposure needed for advertising to have a
measurable effect on purchase habits.

10. Advertising helps increase the effectiveness of the sales force. It builds up the brand, product line, and
company familiarity. Thus, it makes the sales job easier. It also may lower a buyer’s price resistance,
enabling the salesperson to close a sale that might otherwise not have been made.

What Advertising Can’t Do

1. Change attitude that stems from an individual basic value pattern, good or bad, right or wrong, and is
strongly supported by his culture (e.g. advertising can’t convince a Moslem to eat pork)

2. Promote sales no matter how flawless the advertisement if the product advertised fails to
satisfactorily perform its function.

3. Sell a product if it is priced beyond the buyer’s purchasing ability, if it is not essential or necessary, or if it
is not more desirable or more attractively packaged than its competitors. The selling power of advertising
is limited by such factors as product price, quality, attractiveness and availability.

The standards of value consumers consider in their purchases:

3.1) Price

3.2) Quality

3.3) Appearance

3.4) Durability

3.5) Fashionableness

3.6) Comfort and Convenience

3.7) Health (safe, sanitary, hygienic, healthful)

3.8) Guarantee and return privileges

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Advertising cannot persuade customers to make purchases if those standards of value are not met by the
product advertised.

General Objectives of Advertising

Advertising has three primary objectives: to inform, to persuade, and to remind.

 Informative Advertising creates awareness of brands, products, services, and ideas. It

announces new products and programs and can educate people about the attributes and benefits of
new or established products.

 Persuasive Advertising tries to convince customers that a company’s services or products are the
best, and it works to alter perceptions and enhance the image of a company or product. Its goal is to
influence consumers to take action and switch brands, try a new product, or remain loyal to a current
brand.

 Reminder Advertising reminds people about the need for a product or service, or the features and
benefits it will provide when they purchase promptly.

Classifications of Advertising

A. Major Types of Advertising

1. Product advertising
2. Institutional advertising

B. Other Types of Advertising

Positioning. Differentiating a product or service, mainly through marketing and advertising, from
those of its competitors. A positioning strategy is a set of actions and processes that are designed to improve
the image and visibility of a brand, company, or product.

“Positioning is not what you do to a product. Positioning is what you do to the mind of the prospect.
That is, you position the product in the mind of the prospect.” (Ries & Trout, 2001)
Comparative Advertising. Advertising that refers specifically to a competitor’s product or service.
It is a marketing strategy in which a company's product or service is presented as superior when compared to a
competitor's. A comparative advertising campaign may involve printing a side- by-side comparison of the
features of a company's products next to those of its competitor. It may also feature a comparison based on
value or cost. Typically, the competing product is shown in a disparaging light.

Target Marketing. Aiming a marketing campaign at a special demographic or psychographic group.

A target market is a group of potential customers that you identify to sell products or services to. Each group
can be divided into smaller segments. Segments are typically grouped by age, location, income and lifestyle.
Once you’ve defined your target audience, you’ll find it easier to determine where and how to market your
business. Identifying and understanding your customers is an essential part of your business and marketing plan.
Not everyone is your potential buyer, so it’s important to have a clear understanding of your target market early
on. Learn how to analyze your market and define your customer segments.
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Advocacy Advertising. A type of marketing that aims to bring awareness to an issue. It is

advertising in which companies and nonprofit organizations take positions on important issues. This type of
advertising uses paid advertisements to promote a cause or interests of a specific group rather than sell a new
product or service. The methods and strategies for advocacy advertising are similar to traditional advertising,
but nonprofits or political campaigns utilize advocacy advertising to increase awareness for a specific cause or
social justice issue instead of selling something.

Counter-commercial/advertising. An advertisement which responds to another advertisement.

They are, at times parody* of the original ad, but deliver a message. Counter advertising takes an opposing
position or a counter-view, and is generally made out on controversial topics such as smoking or high sugar
content in aerated drinks.

*parody - an imitation of the style of a particular writer, artist, or genre with deliberate exaggeration for comic effect.

Commercial speech. The First Amendment right of a company to express its views through
advertising and other means, subject to legal regulation.

Infomercial. Lengthy commercial on cable TV often mistaken for a regular program. It is a longer-
form video or television advertisement that acts as a stand-alone program to pitch a good or service with a call
to action. Infomercials are different from regular commercials because they last longer and have no breaks in
the program.

Industrial Advertising. That employed by producers of industrial goods to sell products to other
industries. Industrial advertising is a subset of business-to-business (B2B) advertising that focuses on
advertising materials, products, or services related to manufacturing and other industrial processes to other
businesses. Anything advertised as useful to the flow of industrial businesses can fall under the industrial
advertising umbrella.

Trade Advertising. This kind of advertising is carried out by a producer which is directed towards the
wholesaler, traders and distributors rather than the end consumers of the product. This kind of advertising is
strategically important for firms so that they can establish good relations with the trader, wholesaler or the
distributors associated with the selling of the company’s products. It is also known as business to business
(B2B) advertising.

Direct Response Advertising. This is a type of marketing designed to get an instant response by
encouraging people to take a specific action. The goal is to generate leads quickly. Comparatively, traditional
marketing aims to raise brand awareness and promote your brand image in the long term. Direct response
advertising requires immediate action.

Direct Mail Advertising. Letters, catalogues, samples, and other product or service materials mailed
to a selected group of actual or anticipated customers. A type of direct marketing that’s delivered physically to
a prospect’s mailbox through the Postal Service or other delivery service. Postcards, flyers, and catalogs are
common examples. Email marketing is the digital equivalent.

Online/Internet Advertising. Online advertising, also known as online marketing, Internet

advertising, digital advertising or web advertising, is a form of marketing and advertising that uses the Internet
to promote products and services to audiences and platform users.