Advertising

• 2.1 Role of advertising

• 2.2Methods of appeal and sales promotion

• 2.3 Trends in advertising

https://www.youtube.com/watch?v=XhMVWzVXNNk
https://www.dineshbakshi.com/as-a-level-business-studies/marketing-management/
revision-notes/903-marketing-mix?start=10
What is advertising?
• Advertising is a form of communication that typically attempts to
persuade potential customers to purchase or to consume more of a
particular brand of product or service.
Aims of Advertisement

 Higher sales.
 Introducing new products.
 Information on improvement or change in product.
 Spreading brand name.
 Improve company’s image .
 Purpose of Advertising
• To Inform
When a new product is introduced.
Aimed to create demand of new product.
• To Persuade
To persuade people to buy a product of a particular brand.
• To Remind
To remind people of existing products.
To draw attraction of customers.
 TYPES OF ADVERTISING
• Informative Advertisement
Informing the public of a new products.
For example a new car launch.

• Persuasive Advertisement
Telling people that a particular brand is superior to all other brands.

• Reminder Advertisement
Adds repeated again and again.

• Product Advertisement
Is the promotion of a particular product or service.
For example “Our mineral water is purified by the latest technology”.
• Collective/Genetic Advertisement
 Advertisement of a product not a particular brand.
 For example “Drinking Milk is essential for children”
 Financed by all the producers of the product.

• Competitive Advertisement
 Carried out by different producers encouraging public to buy their brand.
 For example Pepsi.

• Direct Advertisement
 Advertisement without involvement of any third party.
 For example through Direct Mail, Door-to-Door canvassing and person-to-person basis.

• Indirect Advertisement
 Done with the involvement of third party.
 Used when advertiser do not wish to appeal to a particular group of people but to masses.
 For example though Television and Radio.
Advertising Mediums, their advantages and disadvantages

Types of media for advertising include:

• television
• radio
• print, eg local and national newspapers
• leaflets and flyers
• social media
• blogs
• banner and pop-up adverts
• websites
• billboards and posters, eg on buses and trains
• broadcast, e.g. radio, television, cinema, point of sale, online
Different types of promotion

Promotion is usually used to support advertising and to encourage new or existing customers to buy the product.
Its main function is to boost sales in the short-term, but not in the long term.
It is used to attract new customers so that they can try out items with the hope that they will like it and
continue to buy it after the promotion has ended. Here are some ways in which promotion is used:

•Price reductions: Involves sales or price reduction coupons.

•Gifts: Gifts are placed in the packaging of the product to encourage consumers to buy it. (e.g. toys in McDonald's happy meal).

•Competitions: A card may be put in the packaging allowing the consumer to enter contests such as the lottery.

•Point-of sale displays and demonstrations: Can be put near the window and displayed attractively.
•It could also encourage people to buy it if they can see how it works (demonstrated by sales staff)

•After sales service: e.g. warranty services. It reassures the customers that if the product has a problem then they can go and fix it for free.
•This make the product more attractive than others without warranty.

•Free samples: Encourages people to try the product. It can be included in other products as well.
• E.g. washing machine comes with free washing powder.
 RECENT TRENDS IN ADVERTISING
Traditional methods of promotion can be expensive, need to be planned in
advance and may not always reach the intended audience. New digital forms
of advertising allow businesses to communicate quickly, efficiently and
directly with consumers .
Digital marketing tools can be used by businesses of any size, and some techniques allow interaction
between the business and the consumer. The digital tools available include:
• Social Media Advertising
Social media consists of both social networking sites and social bookmarking sites and includes blogs, video
sharing sites such as Youtube, microblogging platform Twitter, Facebook, LinkedIn, Stumbleupon, and the
like. Today, social media isn’t used only for communicating with family and friends from across the globe. It’s
now a popular advertising medium as well. In fact, it stands to be
one of the most effective means of digital advertising.

• Viral marketing on social media

Viral marketing involves producing marketing materials that can be shared, usually on social media. It
requires content, such as a video, that appeals to users to encourage them to share it. This can be used to
support a campaign, as well as to market a product or service.

• Targeted online advertising

Website owners can track the online activity of consumers who visit their site by using cookies. They can use
cookies to build a profile of consumers’ interests. They can then serve adverts for products suited to the
individual consumer.Businesses can also use search engines such as Google and Yahoo to effectively
advertise at their intended target market. Search engines often charge businesses to appear further up the
rankings or appear at the top of the first page.
• Cost-per-mille (CPM)
In this an advert is posted on a website but payment is made according to
the number of times the advert is displayed.
• Pay-per-click (PPC)
It is a cost-effective way, where payment is only made if visitors click onto
the advert and visit the firms website. For example, adverts on search
engines like Google, Bing and Yahoo
• Mobile apps and advertising
Mobile applications, or apps, enables businesses to personalise
promotional materials and offers for specific consumers. For example,
grocery shopping apps, and increase customers’ interaction. Mobile
advertising is also done through the use of text message, many business
now send offers and promotions about products to customers through
text messages.
• E-newsletters and pop-ups

Electronic newsletters can be distributed via email to consumers who

have signed up to receive them. They are a good way for a business to
keep in touch with consumers who have previously purchased, or
shown an interest in, products that the business sells.

Pop-ups are another form of advertising online. These are adverts that
appear in any browser without you going on a specific website.
Potential customers on the internet often see pop-up adverts as an
annoyance and may avoid using these websites.
• Digital adverts
• Digital adverts are adverts shown on screens such as billboards and
other large screens. Digital adverts are much more convenient than
traditional types of advertising, as they can be easily changed and can
display multiple adverts in a sequence. Digital advertising is very
popular in sporting events, for example with digital media displayed
all around a sporting venue.
• Blogs
Blogs are used by businesses to create an interest in their products,
blogs tend to be more interactive than website product pages and
social media.