ADVERTISING

It is the spreading of information or awareness about a product or an event.

PURPOSE OF ADVERTISING
 To inform customers about the availability of products in order to generate awareness.
 To persuade consumers to buy a particular product/ brand so as to increase sales.
 To remind customers that a particular product still exist so as to come and buy.
 To inform job seekers on available vacancies.
 To create brand image

TYPES OF ADVERTISING
1. Informative advertising: type of advertising mainly designed to inform consumers in a
clear and straight forward manner without persuading them to buy the product.

2. Competitive advertising: a type of advertising used to increase sales by persuading

consumers to believe that the advertised product is the best, thereby influencing them to
buy the business’s product.

3. Collective advertising: an advertising placed jointly by a group of producers in order to

promote the use of that product. It does not mention any brand or make by name. E.G A
group of farmers can advertise ‘eat more fruits and keep the doctor away’

FACTORS TO CONSIDER WHEN DESIGNING THE ADVERTISEMENT

 Medium to use and its availability: one should choose a medium which reach out the
largest possible target group.
 Good timing: ensure that the advert is placed at the best time when the target audience
is most likely to by the product.
 Budget available: consider how much the advert and medium will cost and see whether
the budgeted money will be enough to cover the costs
 The message to be taken by the targeted market; the message should make the target
market to want to know more about the product and make them to but at the end.
 What the business wants to achieve
 Skills the company has

METHODS OF ADVERTISING APPEAL

 Sex appeal: designing an advert portraying a beautiful young woman/man using the
product in order to grab customers attention
 Famous personality: designing an advert showing a celebrity using the product e.g. a
football star
 Hero worshipping: using cartoons or film characters such as Spiderman and Dora the
Explorer in advertising
 Image appeal
  Gender appeal

ADVANTAGES OF ADVERTISING TO THE CONSUMER

 Better quality goods due to greater competition among producers hence improved
standards of living however it raises the prices of the product which makes it expensive
for the consumer to buy.
 It informs consumers on what goods are available and provide them with information
to make informed choice by comparing prices and quality of different brands however
this may lead to irrational choice of goods.
 Lower prices: due to increased sales which results in lower production costs hence more
consumers are able to afford more goods and services however it may influence people
to buy goods they do not need hence waste money.
 Helps keep down costs of newspapers/ radio and TV licenses thereby increasing
consumers access to information and news however

DISADVANTAGES
 Makes goods expensive as advertising costs are added to the price of the product.
 May influence consumers to buy what they do not need/impulse buying
 Irrational choice of goods
 Mislead consumers through false claims.

ADVANTAGES OF ADVERTISING TO THE PRODUCER/BUSINESS

 Inform and persuade customers to buy hence increased sales/ market share and
possibly profits however it is costly to advertise.
 It help create a distinctive brand image which helps the business to stand out from
competitors hence attract more customers to buy however experts are need to design the
advert which can increase business costs.
 Help the business to find workers and fill job vacancies.
 Help maintain sales by keeping the business products before the consumers eyes.
 Help launch new products and help them penetrate the market quickly

ADVERTISING MEDIA

FACTORS TO CONSIDER WHEN CHOOSING THE ADVERTISING MEDIUM

 Target group: should choose a medium which reaches the targeted market most
effectively to ensure best coverage.
 Area to be covered: should determine whether the area to be covered is local or national
so as to choose the best medium. If coverage is local then posters are the best and if it is
national, radio/TV should be chosen for wider coverage.
  Nature of the product: medium chosen should suit the product, expensive products
should be advertised on expensive medium and cheaper ones on cheaper medium so as
for the business to be able to cover the costs.
 Cost of the medium: the cost should be considered in relation to the budget available,
but the business should weigh the relative benefits with the relative costs.
 Duration of advertising company:
 Availability of the medium

DISCUSS THE ADVANTAGES AND DISADVANTAGES OF DIFFERENT

ADVERTISING MEDIA.

ADVANTAGES DISADVANTAGES

TELEVISION

Combines visual with audio impact [1] so it is effective
as it is appealing to different senses hence growing
peoples desire to buy the products [1] leading to
increased sales [1]
Wider coverage [1]so can be seen many viewers at
peak hours hence leading to a larger market share [1]
However the adverts are short lived [1] so many
people may not see the advert/forget quickly [1]
However the adverts are not always well received by
viewers as some take it as entertainment/interruption
[1] so may not get the message [1] hence not buy [1]

However TV adverts are expensive so this may

Adverts are attractive as they are shown in colour [1] increase operational costs of the business [1] leading to
so can create impulse buying [1] leading to increased reduced profits [1]
sales and possibly profits[1]

RADIO
Wide coverage [1] leading to more customers buying However most FM stations do not cover the whole
[1] hence increase in sales [1] country [1] so this may limit the number of customers
[1] leading to reduced sales [1]

However there is complete absence of visual impact

A popular song can be played along with the advert to [1] so it may not be effective
grab the attention of the listeners [1] so will get the
message and go and buy [1]
However some listeners may not get the message as
Provide opportunity to target particular segment of the they may not pay attention to the advert [1] hence
market through special interest programmes limiting the number of
[1[ therefore customers will be able to receive the customers [1]
message [1]
short lived
Cheaper than TV advertising

However the message can reach only the literate

NEWSPAPERS people [1[ hence limiting the number of customers [1]

Wide national coverage especially the daily news [1]

so many customers will see the advert hence come and However there is no audio visual impact [1] leading to
buy in large numbers [1] leading to increased sales [1] less people buying [1]

Relatively cheap [1] hence reduces advertising costs

[1] leading to increased profits [1] However poor quality print may reduce the
effectiveness of the advert [1] hence less customers
Information can be stored and referred to later/has long buying as the advert may be unattractive [1]
life span [1] hence help maintain awareness [1]
However newspapers are general and do not appeal to
a particular group [1]
Offer targeted marketing through certain pages [1] this
help grab the attention of the viewers and may end up
buying the advertised product [1]

MAGAZINES/CATALOGUE
Adverts are shown in colour and in good quality paper However there is absence of audio visual impact [1]
[1] so can create inspiration and persuade customers to leading to less people buying [1]
buy [1]

Have long life span [1] so it can help maintain
awareness as it can be kept and referred to later [1]
Offer targeted advertising [1] so the message get to the
right people who will end up buying [1]
BILLBOARDS
However they have limited readership/appeal to
certain class of people [1] so this reduces the number
of customers [1]
However it is suitable for literate people only/ it is
infrequent [1]

Low cost of production/cheap to advertise [1] therefore
reduced expenses for the business [1] hence increased
profits [1]
Long life span/High repeat exposure [1] which helps
maintain awareness [1]
Can be shown in colour and in large size[1] so it may
be effective as it can attract consumers to buy [1]
However they are open to vandalism/damaged by
harsh weather conditions [1]
However there is no audio kinetic impact [1]
However there is creative limitations as messages are
limited to simple short and clear statements [1] so
customers may not get the full message [1]

LEAFLETS [for local advertising only]

Cheaper and easier to design [1] hence low costs to the
business [1] leading to increased profits [1]
Advice and explanation can be given when necessary
[1] hence able to persuade the customers to buy [1]
However the leaflets have to be handed from person to
person [1] so this may lead to high distribution costs
[1] reducing profits [1]
However leaflets are quickly destroyed [1] so may not
be effective [1]

ADVERTISING AGENCIES

These are firms that specialize in the production, planning and placing of advertisements on
behalf of their clients.

FUNCTIONS OF ADVERTISING AGENCIES

  media planning and booking: they give advice and assistance on the choice of medium
to be used that would be most effective, they also reserve space and time on media
 Design and production of adverts: they have fully staffed and computerized creative
studio where they design creative adverts to promote client’s products.
 Client servicing: they have agency account executives who communicate clients’
requirements to studio and media departments to ensure that the adverts that are produced
and placed fit the clients’ requirements.
 Market research: they carry out research to clarify public opinion about a particular
product and gain understanding on competitive product penetration, quality wanted by
target market for strategic planning.

WHY BUSINESSES MAY CHOOSE TO USE ADVERTISING AGENCIES

 To cut costs as it may not be economical for the business to have its full time
advertising staff/department
 To make use of highly equipped and specialized staff of advertising agencies so as
to produce effective adverts.
 They may not have the staff with the necessary expertise and experience in large
scale advertising.

CODES OF ADVERTISING PRACTICE

Rules which businesses voluntarily agree to keep but which have no legal status in order to
avoid abuse of advertising by placing misleading, exploitative and harmful adverts.

HOW ADVERTISING CAN BE CONTROLLED

 Legislation: raising of law by government that makes it illegal to make false

advertisement and setting out to penalties to offenders.
 Media: can refuse to accept unsuitable adverts in their media
 Self regulation: advertisers can come up with set standards to be followed by members
when advertising.
 Consumer vigilance: consumers can protect themselves from unscrupulous advertisers
by acting rationally and voluntarily

THE RELATIONSHIP BETWEEN ADVERTISING PACKAGING AND BRANDING

 Branding and packaging help consumers to identify products being advertised

(brand name and wrapping).
 Branding and packaging do the advertising as the packages have instructions on
uses, sizes, effects, qualities etc.
 Branded and packaged goods allow customers to serve for themselves.
 Most attractive packages attract customers.