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WELCOME

2.
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.

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 Nature and scope of advertising:
 Attention seeker
 The term ‘advertising‘ is derived from that means ‘to turn the attention’
 Has a unique selling proposition
 This unique selling proposition makes the product or service stand out of the crowd
 Visually attractive
 The visual elements used in the advertisements not only convey the information, but also tell a story.
 Consumer oriented
 With this nature of advertising, consumers can have the know how of the products, brands or
services ​that ​exist in the market
 Uses various media
 Apart from print platforms like newspapers and magazines, its presence can now also be seen in
audiovisual platforms like, films, hoardings, banners and many such promotional campaigns.

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Advertising budget flow

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Basic functions of advertising
 Promotion of Sales:
 A good advertising campaign helps in winning customers and generating
revenues.
 Introduction of New Products:
 A business enterprise can introduce itself and its products to the public
through advertising
 Support to Production System:
 The business firm knows that it will be able to sell on a large-scale with the help
of advertising.
 Increasing Standard of Living:
 It is advertising which has helped people in adopting new ways of life and
giving up old habits
 Public Image:
 Advertising enables a business firm to communicate its achievements and its
efforts to satisfy the customers’ needs to the public.
 Support to Media:
 Advertising provides an important source of revenue to the publishers of
newspapers and magazines and the producers of T.V. programmes.

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Types of advertising:
 Display advertising.
 Video advertising.
 Mobile advertising.
 Native advertising.

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• Display advertising:
 Display ads are great for telling a fast visual story while showing off brand
identity.
 They’re play ads are great for telling a fast visual story while showing off
brand advertising.
 They’re usually very visual with very little text, and are ideal for health
and wellness products that don’t require an in-depth disclaimer in the ad.

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Video advertising:
 Video ads are quite popular advertising types in today’s digital marketing
environment, and it makes sense why. Video advertisements are eye-
catching, entertaining, and great for telling a complex story that a display ad
simply can’t do
 Instream video involves placing video ads mid-roll, pre-roll, or post-roll in a
video that a consumer is already watching.
 The ad itself will be relevant to the content that the consumer is already
watching. An outstream video ad is a video ad that is integrated into an
article or blog post.
 Medical or pharmaceutical brand, video ads are an excellent choice for
sharing your mission or product with full disclaimers.

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Mobile advertising:
 Mobile advertising is quickly becoming the new norm as more people are
consuming online content through their mobile devices than ever before.
 Mobile advertising is, simply, ads that are optimized for mobile consumption.
 Mobile ads are quite broad and can include video, app, display, search, or
social ads. For most brands, video-based social media mobile ads are a great
place to start.
 For most brands, video-based social media mobile ads are a great place to
start. Health and wellness brands could definitely benefit from these types of
ads on platforms like Instagram.

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Native advertising:
 This form of advertising is simple ad content that is integrated into a piece of
content.
 They are considered “non-disruptive” ads and usually come in the form of
sponsored content.
 These ads will match the style and flow of the content it appears in without
being pushy is disruptive. For example, pop-up ads and autoplay videos are
considered disruptive and can often have a negative impact on one’s potential
customer base.
 Native ads, on the other hand, are “slipped” into content in a way that is not
disruptive and more attractive to consumers. They can come in the form of
blog posts, videos, photos, etc.

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Objectives of advertising:
 trail: most start- up ventures or companies generally work for this objective.
It involves convincing the customers to make them buy a particular product or
service introduced in the market.
 Brand switch: companies wanting to attract the customers of the
competitors have this as their objective. To achieve this, marketers try to
encourage customers to switch from their existing brand to their product.
 Continuity: it is related to retain the existing customers for long. For this,
marketers usually launch new products of customer interest and advertise
them well so that the existing customers keep buying their products.
 Switching back: to back the previous customers, who have switched to
other brands, advertisers use different ways to attract them back such as
discount sale, some reworking done on packaging, new advertise, etc.

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Significance of advertising:
 Introducing a New Product :
Advertising has a great importance when launching a new product, service or
even an idea to the market
When an advertisement of a product or service is done appropriately through
the right media channels and at the right time, it draws customers’ attention and
directs them to take an action.
 Increase in Sales :
Without arousing that interest, creating demand in the market is
nearly impossible.
Eventually, growing demand results in a remarkable increase in sales.
 Creating Consumer Awareness :
Creating awareness and providing necessary information about the
product or service drive the customers to make a purchase decision
ultimately.

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Functions of advertising:
• Identifying New Customers
• Establishing Recognition
• Supporting Salesmen
• Motivating Distributors
• Stimulating Primary Demand
 The functions of advertising can be grouped as:
 Primary Functions
 Secondary Functions
 Economic Functions
 Psychological Functions
 Social Functions

14.
Advantages of advertising
 Introduces a new product in the market,
 Expansion of the market,
 Increased sales,
 Enhances good-will,
 Educates the consumers,
 Elimination of middlemen,
 Better quality products,
 Supports the salesmanship,
 More employment opportunities
 Reduction in the prices of newspapers and magazines
 Higher standard of living!

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 Introduces a new product in the market:
 It stimulates the people to purchase the product.
 Expansion of the Market:
 It helps in exploring new markets for the product and retaining the existing
markets
 Increased Sales:
 Advertisement facilitates mass production to goods and increases the volume
of sales
 Enhances Good-Will:
 It introduces the manufacturer and his product to the people
 Educates The Consumers:
 It familiarises the customers with the new products and their diverse uses
 Elimination of Middlemen:
 This increases the profits of the manufacturer and the consumer gets the
products at lower prices.

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 Better Quality Products:
 The manufacturer provides quality goods to the consumers and tries to win
their confidence in his product.
 Supports The Salesmanship:
 The selling efforts of a salesman are greatly supplemented by advertising.
 It has been rightly pointed out that “selling and advertising are cup and saucer,
hook and eye, or key and lock wards.
 More Employment Opportunities:
 Advertising provides and creates more employment opportunities for many
talented people
 Painters
 Photographers
 Singers
 Cartoonists
 Musicians
 Models
 Reduction in the Prices of Newspapers and Magazines:
 The cost of bringing out a newspaper is largely met by the advertisements
published therein.

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Disadvantages of advertising:
 Loading the Price
 Creating Wastes
 Monopoly
 Fraud on Consumers
 Confuses the Buyers
 Some Advertisement is in Bad Taste

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 Loading the Price
 Advertising is expected to reduce total costs due to mass production and mass
distribution
 In reality advertising increases the prices of goods.
 Ultimately enable consumers to buy at lower prices
 Creating Wastes
 It can never appeal accurately to the target market like salesmanship
 Many people may not read, hear or view your advertisement
 TV advertisements have short life span and relatively costly

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 Monopoly
 It kills competition and to that extent consumers’ interest is sacrificed
 we can have reasonable competition in the market
 We have to crush monopolies in the world of business to protect
consumers against evils of monopolies
 Fraud on Consumers
 Some advertising is fraudulent, misleading or deceptive. Advertising
causes us to buy goods
 It is true that advertising often persuades people to buy things they
should not buy, they do not need nor they can afford.

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 Confuses the Buyers
 Believing in advertising, consumers buy the product. On its use, they feel
cheated.
 They come to realise later that the information given in the advertisement was
something else whereas the actual product was quite different from it
 In this reference it is said that advertising confuses rather than helps.
 Some Advertisement is in Bad Taste
 Many times, foul language and objectionable pictures are used in advertising in
order to attract a particular class
 They may be insulting to a particular class. It causes decay of social values
 Such kinds of advertising are generally opposed by the people as it hurts their
feelings

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THANK YOU
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