Advertising and Sales Promotion

MODULE 2

Introduction to Advertising

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 Introduction
 The simplest meaning of an advertisement is that it is a ‘public
announcement’. In earlier times, to ‘advertise’ meant merely to
announce or to inform. Advertising is the promotion of a
company’s products and services carried out primarily to drive
sales of the products and services but also to build a brand
identity and communicate changes or new product /services to
the customers. Advertising has become an essential element of
the corporate world and hence the companies allot (portion) a
considerable amount of revenues as their advertising budget.

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 Definition of advertising
 According to American Marketing Association,
“Advertising is, any, paid form of non-personal
presentation of ideas, goods or services, and
organization by an identified sponsor”.

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 An analysis of Advertising definition:
 Any Form: - means any form of presentation. It may be
sign, a symbol, and an illustration, an ad message in a
magazine or newspaper, a commercial on the radio or
on television, a circular like mail or pamphlet, message
on billboards or a poster.
 Non-personal:- means it includes mass media rather
person to person presentation.

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 An analysis of Advertising definition:
 Paid Form: - this means that advertising is openly and
directly paid for as against publicity, which is not
openly paid for.
 Identified sponsor: - means the sponsor, too, is
identified. The sponsor is identified by his company’s
name or brand name or both. Means in case of
advertising, the sponsor of ideas or opinions is known.

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 Role of Advertising
 Marketing Role – advertising plays a big role in
marketing the products, services, company. As we all
know, marketing is a business process that aims to
satisfy the consumer needs and wants through goods
and services. And in order to do so, advertising lets the
message out to take that big role in marketing to
promote the goods and services

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 Role of Advertising
 Communication Role – no product and/or service
can move without the proper dissemination of
information. This is one role of advertising that
transmits the needed information about the goods or
services to the target market.

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 Role of Advertising
 Economic Role - Advertising’s economic
contributions come from its advantage as a mass
marketing tool. The more people know about a
product, the higher the sales – and the higher the level
of sales, the cheaper the product.

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 Role of Advertising
 Societal Role - advertising also mirrors fashion and
design trends, and adds to our aesthetic sense. It helps
us shape an image of ourselves by setting up role
models with which we can identify, and it gives us a way
to express ourselves in terms of our personalities and
sense of style through the things we wear and use.
Advertising also presents images capturing the
diversity of the world in which we live.
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 Functions of Advertising
 Persuasion: advertising may often lead consumers to
purchase. The route to persuasion may be the outcome
of emotional or rational appeals such as; humor or
humor love, fear, shame, economy and quality etc.
 Reinforcement: Ads are also designed to reassure
consumers that they made the wise decision by buying
a product or services. This makes consumers feel good
and serve the function of reinforcement.
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 Functions of Advertising
 Reminder: The aim of reminder ads is to keep the
company or brand name always fresh in the target
audience’s memory. A good number of ads are repeated
frequently to accomplish this function.

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 Classification and Types of Advertising
 Advertising based on Product Life Stages
 Advertising based on Area of Operation
 Advertising According to Medium

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 Advertising based on Product Life Stages
 Pioneering Advertising - This type of advertising is
used in the introductory stages in the life cycle of a
product. It is concerned with developing a “primary”
demand. It conveys information about, and selling a
product category rather than a specific brand.

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 Advertising based on Product Life Stages
 Competitive Advertising It is useful when the
product has reached the market-growth and especially
the market-maturity stage. It stimulates “selective”
demand. It seeks to sell a specific brand rather than a
general product category.

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 Advertising based on Product Life Stages
 Retentive Advertising: This may be useful when the
product has achieved a favorable status in the market –
that is, maturity or declining stage. Generally in such
times, the advertiser wants to keep his product’s name
before the public. A much softer selling approach is
used, or only the name may be mentioned in
“reminder” type advertising.

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 Advertising based on Area of Operation
 National Advertising: The term ‘national advertising’
has a special connotation that advertising is not
confined to any geographic area within the nation. This
type of advertising is undertaken mostly by a marketer
of branded product or services, sold through different
outlets in the distribution channel, wherever they may
be located and appears in both national

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 Advertising based on Area of Operation
 Regional Advertising refers to an advertising that
covered regional territory.
 Local Advertising It is generally done by retailers
rather than manufacturers. These advertisements save
the customer time and money by passing along specific
information about products, prices, location, and so on.
Retailer advertisements usually provide specific goods
sales during weekends in various sectors.
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 Advertising According to Medium
 Print Advertising
The print media has been used for advertising since long.
The newspapers and magazines are quite popular modes
of advertising for different companies all over the world.
Using the print media, the companies can also promote
their products through brochures and fliers. The
newspaper and magazines sell the advertising space and
the cost depends on several factors.
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 Advertising According to Medium
 Broadcast Advertising
This type of advertising is very popular all around the
world. It consists of television, radio, or Internet
advertising. Advertising on the televisions have large
audience and are very popular. The cost of the
advertisement depends on the length of the
advertisement and the time at which the advertisement
would be appearing.
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 Advertising According to Medium
 Outdoor Advertising
Outdoor advertising makes use of different tools to gain
customer‘s attention. The billboards, kiosks, and events
and tradeshows are an effective way to convey the
message of the company. The billboards are present all
around the city but the content should be such that it
attracts the attention of the customer. The kiosks are an
easy outlet of the products and serve as information
outlets for the people too.
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 Advertising According to Medium
 Covert Advertising
This is a unique way of advertising in which the product
or the message is subtly included in a movie or TV serial.
There is no actual Advertising, just the mention of the
product in the movie.

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 Advertising According to Medium
 Public Service Advertising
As evident from the title itself, such advertising is for the
public causes. There are a host of important matters such
as health, political integrity, energy conservation,
illiteracy, poverty and so on all of which need more
awareness as far as general public is concerned.

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 Key Players in Advertising Industry
 The Advertiser
Advertising begins with the advertiser, the company or
organization that uses advertising to send out a message
about its products. The advertiser initiates the
advertising effort by identifying a marketing problem
that advertising can solve. The advertiser also makes the
final decisions about the target audience and the size of
the advertising budget.
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 Key Players in Advertising Industry
 The Advertising Agency
The second player in the advertising world is the
advertising agency that creates, produces and distributes
the advertising. Advertisers hire independent agencies to
plan and implement part or all of their advertising
efforts. This working arrangement is known as the
agency-client partnership.

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 Key Players in Advertising Industry
 The Media
The third player in the advertising world is the media.
The media is composed of the channels of
communication that carry the message from the
advertiser to the audience. We refer to these media as
vehicles because they deliver messages, but they are also
companies, such as your local newspaper or radio
station.
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 Key Players in Advertising Industry
 The Suppliers
The fourth player in the world of advertising is a group of
service organizations that assist advertisers, advertising
agencies, and the media in creating and placing ads – the
suppliers, or vendors, who provide specialized services.
Members of this group include artists, writers,
photographers, directors, producers, and printers as well
as self-employed freelancers and consultants.
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 Key Players in Advertising Industry
 Target Audiences
The fifth and final set of players are the people for whom
the advertising is designed. In general, we speak of
consumers as people who buy and use products to satisfy
their needs and wants. To be more precise, we also talk
about target audiences, a more specific group or people
to whom ad advertisement is directed, and whose
responses determine if the advertising is effective.
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