This document discusses the role of advertising. It begins by defining advertising and its purpose of promoting goods and services to increase sales. It then outlines several types of advertising media, including print (newspapers, magazines, direct mail), broadcast (television, radio), online, and specialty advertising. The document also discusses the advantages and disadvantages of advertising, such as increasing sales but also potentially adding to product costs. In conclusion, it describes some of the effects of advertising on the economy and consumers' choices.
2. INTRODUCTION
What is advertising? Advertising (or
advertizing) is a form of marketing communication used to promote or sell something, usually
a business's product or service.
Advertising is the name given to the process of commercial promotion of goods and services in
order to increase its sales.
Advertising can be done by means of a number of mediums like television, newspapers,
billboards, wall paintings, magazines, internet, by word-of-word and in many other ways. It
informs the buyers about availability of a certain product or service in the market and
encourages them to buy it.
3. THE IMPORTANCE OF
ADVERTISING
Work is done by
relatively
Few people
Major expense is
for
media/space
Companies spend
Only a small
percentage of sales
on advertising
Involve a large
amount of money
4. TYPES OF ADVERTISING MEDIA
● PRINT MEDIA
print media are advertising using printed
materials including newspapers, magazines,
direct mails and billboards.
● BROADCAST MEDIA
broadcast media involves television and
radio. Broadcast radio can have high cost
rates depending on time of day and length.
● SPECIALITY MEDIA
specialty-media is advertising using small,
giveaway items that has the business name,
or message. Customers will carry these
items around and attract other customers.
● ONLINE MEDIA
online media advertising includes
communication using the internet.
Retailers who advertise on the internet put
ads on websites of other businesses.
5. PRINT MEDIA
Magazines & Newspapers
● These are the important forms of press advertising, newspapers are the most effective and powerful medium
of advertising. Newpapers contain valuable information with regard to different current events. It have
widest circulation and read many people.While the magazines are other important media communication. It
may be released weekly, monthly, quarterly, bi-annual or annual. These are read with more interest by the
readers, have lesser flexibility compared to newspapers but the cost of magazines advertising is higher than
the adverising of newspapers because the magazines can use unlimited colour but limited colours are used in
the newspapers.
Direct mail
● One of the oldest types of advertising media. Under this method message is sent to the prospective buyers by post.
Letters, folders,calenders, booklets and catalogues are sent under this types of advertising. It contains detailed
information with regard to the product. It is very affective as it establishes direct contact with the consumers.
● Direct mail advertising suffers from certain drawbacks also. It has limited access. i.e. a small number of buyers can
be covered. There are practical difficulties in preparing & maintaining up to date mailing list. This
is also not suitable for every type of product.
6. BROADCAST MEDIA
Television
● It is the latest and the fast developing medium
of advertising and is getting increased
popularity these days.
● More effective compared to radio as it has the
advantages of sound and sight
●
It has a shorter life span and limited coverage.
Radio
● Radio advertising is very popular these days.
The advertisements are broadcasted from
different stations of all radio. Radio
advertisement can be explained as “word of
mouthnwholesale scale”. The advertising
messages can be in different regional
languages.
● The most important advantage derivd from
radioa advertising is that it covers every type fo
listener whether illiterate or educated.
● One of the effective ways but suffers from
shorter life, limited memory and short
messages.
● Higher cost of advertising
7. ONLINE MEDIA
Online media advertising includes communication using the internet.
Retailers who advertise on the internet put ads on websites of other
businesses.
8. SPECIALTY MEDIA
Specialty media is advertising using small, give away items that has
the business name, or message. customers will carry these items
around and attract other customers.
9. THE ADVANTAGES
The advantages of advertising are :
1) Introduces a new product in the market. Advertising
plays significant role in the introduction of a new product in the market. It stimulates the people to
purchase the product.
2) Expansion of the market. It enables the
manufacturer to expand his market. It help in exploring new markets for the product and the retaining
the existing markets. It plays a sheet anchor role in widening the marketing for the manufacturer's
products even by conveying the customers living at the far flung and remote areas.
3) Increased sales. Advertisement
facilitates mass production to goods and increased the volume of sales. In other words, sales can be
increased with additional expenditure on advertsing with every increase in sale, selling expenses will
decrease.
10. 4) Fight competition
Advertising is greatly helpful in meeting the forces of competition prevalent in the market.
Continuosly advertising is ery essential in order to save the product from the clutches of the
competitors.
5) More employment opportunities
Advertising provides and creates more employment opportunities for many talented people
like painters, photograhers, singers, cartoonist, musicians, models and people working in
different agnecies.
11. 6) Higher standart of living. The
experience of the advanced nations shows that advertising is greatly responsibe foe raising the living
standarts of the people. In other words of Winston Churcil 'advertising nourishes the consuming
power of men and creates wants for better standarts of living”. By bringing to the knowledge of the
consumers different variety and better quality products, it has helped a lot in increasing the
standart Of living in a developing economy like Inda.
7) Better quality products. Different
goods are advertised under different brand names. A branded products assures a standart quaity to
the consumers. The manufacturer Provides quality goods to the consumers and tries to win their
confidence in his product.
8) Educates the consumers. Advertising is
educational and dynmic in nature. It familiarises the customers with the new products and heir
diverse uses and also educates Them about the new uses of existig products
12. THE DISADVANTAGES
1) Add to costs
An organisation has to spend large amount on advertising. It increases the cost of the products. To
meet this expenditure, price of the products is rasied. No manufacturer pays for the advertising
expenses out of his pocket. Advertising, therefore, leads to unnnecessary rise in prices. In this
reference it is said that advertising costs are passed on to the consumers in the form of high prices.
2) Undermines social values
Advertisement is a sort of day-dreaming for the people. These days it is taking the people away from
reality and into the realm of artificiality. Through its medium people get information about new
products.
Only very few products are of any use of them. The brilliance of new products really gets on their
nerves. They want to buy them but have no resources at their command. Consequently, they start
feeling upset with their present status.
13. 3) Confuses the buyers
Believing in advertising, consumers buy the products. On its use, they feel cheated. They come to
realise later that the information give in the advertisement was something else whereas the actual
product was quite different from it. Thus, people lose confidence in advertising because of wrong
presentation. In this reference it is said that advertising confuses rather than helps.
4) 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 kind of advertising are generally opposed by the people as it hurts their feelings. In this
reference it is said yhat some advertisements are in bad taste
14. THE EFFECTS OF ADVERTISING
In Economy
● Advertising has a number of positive effets on eonomies bothe in U.S and abroad. According to the
International Advertising association, advertising can encourage companies to compete and provide new
products. This encourages more consumers to buy because these products meets the nees and wants of
more condumers. Thus, the economy is postively affected. In addition advertisng can help create more jobs.
As the demand for products and services goes up because of advertising, more peopple need to
manufacture, supply, ship and test those products and services. Thus, more jobs are created.
Choice
● In addition to encouraging consumers to choose products that are best for them, advertsing at leats in
democratic nations, allows individuas to learn about the wide variety of lifestyle and political choices
avaiable to them and choose the ones that they find best. For example, in the Unired States, candidates for
an elected position often run advertisements that discuss their strenghts and the opponent's weaknesses.
These advertisements encourage Americans to compare and contrast the candidates and choose the one
with whom they most agree.