21-07-2022-Unit I-Introduction to

Advertising-Meaning- its role and functions

Ref- Advertising Management –

Manendra Mohan- TMH- Pg-1 to 7

BBA V Semester Advertising Management

 Advertising Management
• Advertising management is a planned managerial process designed to oversee and
control the various advertising activities involved in a program to communicate with a
firm's target market and which is ultimately designed to influence the consumer's
purchase decisions.
• Advertising is just one element in a company's promotional mix and as such, must be
integrated with the overall marketing communications program.
• Advertising is, however, the most expensive of all the promotional elements and
therefore must be managed with care and accountability.
• Advertising management is a complex process. However, at its simplest level,
advertising management can be reduced to four key decision areas:
• Target audience definition: Who do we want to talk to?
• Message (or creative) strategy: What do we want to say to them?
• Media strategy: How will we reach them?
• Measuring advertising effectiveness: How do we know our messages were received in
the form intended and with the desired outcomes?

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 Title
• The American Marketing Association (AMA) defines advertising as "the placement
of announcements and persuasive messages in time or space purchased in any of
the mass media by business firms, nonprofit organizations, government agencies,
and individuals who seek to inform and/ or persuade members of a particular
target market or audience about their products, services, organizations, or ideas".
• Common themes emerge in the various definitions of advertising: _
* Firstly, advertising is a paid form of communication and is therefore commercial
in nature.
* Secondly, advertising employs non-personal channels (i.e. commercial mass
media) which implies that it is directed at a mass audience rather than at an
individual consumer and is a one-way communication mode where the sponsor
sends messages, but recipients cannot respond or ask questions about the
message content.
* Thirdly, advertising has an identified sponsor .

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 5 M’s of Advertising

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 Functions of Advertising
• Functions of Advertising – Primary, Secondary, Psychological, Economic and
Social Functions.
• The functions of advertising may also be grouped under following heads:
A. Primary Functions:
1. To increase sales – through-
(i) Attracting new consumers,
(ii) Introducing new uses,
(iii) Generating more awareness about the product,
(iv) creating brand image and brand loyalty.
2. To help dealers, wholesalers and retailers to stock more goods.
3. Buyers dependability is increased and which in turn enhance the volume of
sale.
4. It helps controlling seasonal fluctuations in sales.

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 D. Economic Functions:
1. Provides information about the economic advantage in comparison to the
product of the competitors.
2. Provides information regarding the availability of the economic support.
3. Extends the scope of large-scale economies.
4. Generates employment opportunities.
E. Social Functions:
1. Helps to generate the social awareness.
2. Medium for mass education.
3. Helpful for generation of national feelings and national integration. It
educates the social habit of living together.
4. An avenue to highlight the achievements and deficiencies of the corporate
and civic bodies.

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 Role of Advertising
• Ensures Communication with the Customers
• Persuasion
• Contribution to Economic Growth(New
Product/ New Market)
• Catalyst for Change

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 Benefits of Advertising
• Information
• Brand Image Building
• Innovation
• New Product Launch
• Growth of Media
• Long Term / Indirect Benefits

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