Advertisement
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
Purpose of Advertising |
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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”.
Institutional Advertisement
- Concerned with the promotion of overall image of the company.
- For example “Our company contributes to keeping the country clean”
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 buy to masses.
- For example though Television and Radio.
Advantages and Disadvantages of Advertising
Of Direct Advertising
Pros:
- Personal contact. Results in better communication of the message.
- Suitable for product requiring lot of advise and explanation.
- Cheap of smaller market.
- Demonstration of product is possible.
- No wasteful circulation. Limited to only target customers.
Cons:
- Limited coverage. Lack of man power.
- People do not take this type of advertisement seriously.
Of Indirect Advertising
Pros:
- Wide coverage through mass media.
- Low unit cost.
- Different tools of appeals can be used
Cons:
- Impersonal.
- High absolute cost.
- Wasteful circulation.
To Producer
Pros:
- Increases sales.
- Economies of scale through increased sales.
- High profits.
- Bigger market share.
- Brand image is created.
Cons:
- Increase in cost.
- May result in price war among advertisers.
- Loss in case of unsuccessful advertisement.
- Imitation brand.
To Customer
Pros:
- Introduction to new products.
- Awareness of different brands in the market.
- Lower prices due to economies of scale.
- Better quality goods at cheap rates due to competition.
- Certain goods and services are made available to the public at very low prices because of their income form advertisement for example newspaper and magazines.
Cons:
- Higher prices of goods. Price of advertisement is added to the product.
- Misleading claims.
- Imitation brands.
- Customers become confused.
- Unnecessary purchases.
Advertising Tools/Devices
Techniques used by the advertiser in his promotion to appeal their target market, develop their interest, activate their desire and induce action.
- Gender
- Noise
- Music
- Suspense
- Economy
- Adventure
- Manliness
- Motherly love
- Family Love
- Offers
- Comic/Animation
- Contract
- Safety
- Endorsement of famous personalities
Advertising Media
Newspaper
| Advantages | Disadvantages |
|---|---|
| Wide coverage | Wasteful circulation |
| Daily circulation | Reach only literate people |
| Different rates depending on size and location of ads |
Short life |
| Poor quality advertisement | |
| Low cost per exposure | No audio/visual impact |
Magazines
| Advantages | Disadvantages |
|---|---|
| Long life | Inflexible |
| Better quality | Infrequent |
| Targeted | No audio/visual impact |
| Still cheap | Suitable only for literate people |
| Low cost per exposure |
Radio
| Advantages | Disadvantages |
|---|---|
| Wide coverage | No visual impact |
| Audio impact | Exposure life is very short |
| Can reach illiterate people | Ads fail to get attention |
| Targeted. (Ads between programs) | Becoming less popular |
| Low cost |
Television
| Advantages | Disadvantages |
|---|---|
| Audio and Visual impact | High absolute cost |
| Lost cost per exposure | Wasteful circulation |
| Wide coverage | Fail to get attention |
Factors affecting choice of Advertisement Media
| 1. | Cost | Budget |
| 2. | Type of message | Includes detail or not |
| 3. | Type of product | Requires demonstration/Requires Audio and visual impact |
| 4. | Target | Teenagers/Housewives/Professionals |
| 5. | Market | Local/National/International |
| 6. | Government policy | Does government allow such types of ads |
Advertising Agencies
Account Service Department
- Account in advertising means business or customer.
- Creates advertising plan by taking basic information about client’s business, marketing strategies, budget and target market.
Creative Department
- Responsible for thinking the theme and writing the dialogues/jingles.
Media Department
- Makes sure that the message reaches the required market.
- Responsible for displaying the ad via suitable media.
Production Department
- Responsible for set designing and shooting of ad.
Controlling Advertisement
- Government Legislation
- Advertising Standard Authority: Independent body which makes it sure that any advertisement which is publicized should not hurt audience.