Unit-1

Advertising
Advertising is a powerful communication force and vital marketing tool helping to sell goods,
services, images, and ideas through channel of information and persuasion. It is highly visible
force in the society. Today all of us receive many advertising messages daily. Now it is essential
to the success of any type of business and industry. Furthermore, advertising strategies are
employed more and more by non-business organisation such as government, college and
universities, public service groups and characteristics. It is one of the parts of the marketing and
communication process. Advertising convince people to buy products. All advertising contains
both information and persuasion. Today we can say advertising is a communication, marketing,
public-relation, information and persuasion process. Advertising reaches us through a channel of
communication referred to as a medium. It is usually aimed at a particular segment of the
population - the target audience (Consumer and business).
Basically it is a medium of dissemination of information and persuasion. It always creates a
glamorous area. No doubt today advertising covers almost every area of the thought process and
action of society. It is considered to be a highly sophisticated communication force and powerful
marketing tool. In other words we can say that it is a complete psychological treatment of the
consumer and a very creative and glamorous area also.

Definition
The word advertising came from the Latin word' advertere' means "to turn the mind toward". The
American Marketing Association (AMA) recommends the definition, "Advertising is any paid
form of non-personal presentation and promotion of ideas, goods and services by an identified
sponsor". The AMA points out that advertising is a tool of marketing along with the product and
its packaging, price, distribution and personnel selling. Definitely advertising is openly and over
the overtly subsidized information and persuasion, and its task is to present and promote for
more than merchandise. According to this definition promotion is 'non-personal'. It is directed
"to whom it may concern". If advertising is effective, it is because the audience is receptive to it.

Paid form: When product or services are mentioned favorably in the media newspaper,
magazines and radio or television- the item appears because it is presumed to provide
information or entertainment for the audience. But this is publicity, and no payment is made by
the benefited organization. Advertising on the other hand, is published or broadcast because the
advertiser has purchased time or space to tell the story of a certain product or service.

Non-personal presentation: Personal selling takes place when a personal face-to-face

presentation is made. Although advertising complements or may submit for, personal selling it is
done in a non-personal manner through intermediaries - or media.

Idea, goods and services: From this point advertising is concerned with much more than the
promotion of tangible goods. Most of the advertising is designed to help sell goods and services.
It is being used increasingly to further public interest group.

An Identified Sponsor: Advertising discloses or identifies the sources of the opinion and ideas.
According to an identified sponsor, this point distinguishes advertising from propaganda.
Propaganda attempts to present opinions and ideas in order to influence attitudes and actions.
Advertising on the other hand, disclose or identifies the source of the opinions and ideas it
present.

Types of Advertising
The nature and purpose of the advertising differ from one industry to another or across situations.
Marketers advertise to the consumers market with national, local and direct-response advertising
which may involve stimulating primary or selective demand. They use industrial, professional
and trade advertising for business and professional markets. To better understand the nature and
purpose of advertising it can be classified by the following criteria:

I) Classification on The Basis of Area Coverage:

On this basis advertising may be classified into the following four categories, viz., (1) local,
(2) regional, (3) national, (4) international advertising.

1. Local Advertising :
It is also known as „retail advertising‟. It is undertaken by local retail stores,
departmental stores, co-operative stores, selling cloth, saris and other consumer goods
and consumer durables. It is directed at local customers. Media, used for local
advertising, are shop decorations, local newspapers, magazines, posters, pamphlets,
hoarding, new signs, local cinema houses, etc.

2. Regional Advertising :
It has wider coverage, as compared to local advertising. It covers a particular region,
which may be one state, or, more than one state, the people of which may be having a
common tongue, or, using one common product. It is undertaken by manufacture, or,
regional distributor of a product. Media, used for regional advertising, include regional
newspapers, magazines, radio, regional T.V., outdoor media, etc. It is considered to be an
ideal form of advertising for launching and marketing a new product in a specific region.

3. National Advertising:
It is generally undertaken by manufactures of branded goods, for which, advertising
messages is communicated to consumers all over the country. Almost all possible mass
media, including national newspapers, radio and television network, are employed for
national advertising. Product services, and ideas, which have demand all over the
country, are suitable for national advertising. In India, Indian Airline Hindustan Lever
Ltd., Vicco, Godrej, Bajaj and Kirloskar are a few leading advertisers at national level.
Likewise, detergents, soaps, toothpastes, cosmetics, scooters, cars, and bicycles, are some
of the products, which are advertised all over the country.

4. International Advertising:
This type of advertising is undertaken by those companies, which operate in more than
one countr, known as multi-national‟ companies. Exporters, generally advertise their
products and services in foreign countries, where ready markets are available. Air India
and other airlines, and multi-national companies advertise their products and services
 allover the world. Coca-Cola and Pepsi are advertised globally, as the sales are almost all
over the world. International advertising is extremely expensive, involving the services of
professional advertising agencies in different countries.

II) Classification on The Basis of industry

On this basis, advertising may be classified into the following four categories, viz., (1)
consumer advertising, (2) industrial advertising, (3) trade advertising, and (4) professional
advertising.

1. Consumer Advertising:
This type of advertising is directed to the ultimate consumers of the consumer products,
i.e., the individuals, who buy, or, use the consumer products, or services, say, for
example, toilet soap, toothpaste, toothbrush, tea, textiles, etc., for themselves and for their
families. All types of consumer products need continuous and extensive advertising on
T.V., radio, and press.

2. Industrial Advertising:
This type of advertising is used by manufacturers and distributors of industrial goods.
Such as, machinery, plants, equipments, spare parts and components, and are directed at
industrial users or customers. Such advertisements usually appear in trade journals, trade
dictionaries, business magazines and so on. The appeal made is tactual and rational.

3. Trade Advertising:
This kind of advertising is employed by manufactures and/or distributors to influence and
persuade wholesalers and dealers (retailers) to stock and sell the goods of the advertiser
by offering incentive schemes to them, or, by inviting dealership for their particular
products(s).

4. Professional Advertising:
It is directed at professional like doctors, professors, engineers and others, who are
expected to recommend, prescribe, or, specify the advertised products to ultimate
consumers. This is done through professional journals and representative of the
advertisers.

III) Classification on The Basis of Media

On the basis, advertising may be classified into the following four categories viz., (1) Print
media advertising; (2) electronic, or, broadcast media advertising; (3) outdoor media
advertising.

1. Print Media Advertising:

The print media consists of newspapers, magazines, journals, handbills, etc. No
newspaper or, journal, today, can survive without advertising revenue. Print media
advertising, even today, is the most popular form; and revenue derived by mass media
from advertising has, therefore, been progressively increasing year after year. Print media
appeals only to the sense of sight, i.e. eyes.
 2. Electronic or Broadcast Media Advertising:
Electronic, or, broadcast media consists of (i) radio, (ii) television, (iii) motion pictures,
(iv) video, and (v) the internet. The radio is audio in nature, appealing only to the sense of
sound (ears). Radio advertising is more effective in rural areas, as compared to urban
regions. Television, as an advertising medium, is more attractive and effective because it
is an audio-visual medium appealing to both the senses of sight sound (eyes and ears).
Different methods, such as, spot announcements, sponsored programmes, etc., are used
for broadcasting advertising messages. However, broadcasting media are very expensive
form of advertising. Advertising is also undertaken through movies, video, and the
internet.

3. Outdoor Media:
This include posters, neon signs, transit, point of purchase (POP), etc. Outdoor
advertising can be a good supporting media to other forms of advertising. It is a good
form of reminder advertising, especially, the POP advertising.

4. Other Media:
This includes direct mail, handbills, calendars, diaries, cinema advertising, internet and so
on. These miscellaneous media can play an important supporting role to the major media
such as television, and newspapers.

IV) Classification on The Basis of Function:

1. Direct Action and Indirect Action Advertising:

Direct action advertising is undertaken to obtain immediate response or action on the part
of target audience. Examples include discount sales advertising, sale along with free gift
offers, and mail-order coupon sales, etc. The media used is mostly newspapers, and
television. Indirect action advertising is undertaken to influence the audience in respect of
advertisers brand. The advertiser expects the target audience to prefer his brand as
compared to competitors whenever a buying decision arises in future.

2. Primary and Selective Advertising:

Primary Advertising is undertaken by trade association or by cooperative groups. It is
undertaken to create generic den1 and for products and services. For example, the Coffee
Board may advertise to consume more coffee. Selective Advertising is undertaken by
marketers of branded products. The advertiser intends to create selective demand for his
brand. Examples include Pepsi Cola, Coca Cola

3. Product and Institutional Advertising:

Product or Service advertising is undertaken to promote the sale of products and services-
branded or unbranded. Institutional advertising is undertaken to build name and goodwill
of the organisation. It is also, know as corporate advertising or image advertising. It is
mostly undertaken by large firms.

Role of Advertising
Advertising is the integral part of every day's life. It is a pervasive method of marketing in
society. Though the methods by which marketers advertise have changed over the decades, the
role and purpose of advertising has changed over the period of time. Without advertising modern
society cannot survive. Advertising is useful to society in following ways.

1. Encourage Purchasing-
Encouraging people to purchase goods and services is the main role of advertising. Some
industries rely on advertising more than others: A cereal company, for instance, must
advertise more aggressively, due to the wide arrange of competing products, than a power
company that faces little to no competition. Advertisers often influence members of
society to purchase products based on instilling a feeling of scarcity or lack.

2. Reflect cultural trends-

Advertising bridges the gap among people by communicating varied culture through
advertising message. It bring variation in the social life

3. Promotes Economic growth-

Advertising contributes to bring about all round development of the economy by
increasing demand and by encouraging economic activities it fuels the desire to shop and,
in turn, shopping stimulates the economy.

4. Improves standard of living-

Advertising is an economic activity. It provides opportunities to people to improve their
income. It motivates people to consume more material and thereby improves their
standard of living.

Importance of Advertising

Advertising has become an essential marketing activity in the modern era of large scale
production and serve competition in the market.
It performs the following functions:

1. Promotion of Sales- It promotes the sale of goods and services by informing and
persuading the people to buy them. A good advertising campaign helps in winning new
customers both in the national as wet as in the international markets.
2. Introduction of New Product- It helps the introduction of new products in the market. A
business enterprise can introduce itself and its product to the public through advertising.
A new enterprise can't make an impact on the prospective customers without the help of
advertising. Advertising enables quick publicity in the market.
3. Creation of Good Public Image- It builds up the reputation of the advertiser.
Advertising enables a business firm to communicate its achievements in an effort to
satisfy the customers' needs. This increases the goodwill and reputation of the firm which
is necessary to fight against competition in the market.
4. Mass Production- Advertising facilitates large scale production. Advertising encourages
production of goods in large scale because the business firm knows that it will be able to
 sell on large-scale with the help of advertising. Mass production reduces the cost of
production per unit by the economical use of various factors of production.
5. Research- Advertising stimulates research and development activities. Advertising has
become a competitive marketing activity. Every firm tries to differentiate its product
from the substitutes available in the market through advertising. This compels every
business firm to do more and more research to find new products and their new uses. If a
firm does not engage in research and development activities, it will be out of the market
in the near future.
6. Education of People- Advertising educate the people about new products and their uses.
Advertising message about the utility of a product enables the people to widen their
knowledge. It is advertising which has helped people in adopting new ways of life and
giving-up old habits. It has contributed a lot towards the betterment of the standard of
living of the society.
7. Support to Press- Advertising provides an important source of revenue to the publishers
and magazines. It enables to increase the circulation of their publication by selling them
at lower rates. People are also benefited because they get publications at cheaper rates.
Advertising is also a source of revenue for TV network. For instance, Doordarshan and
ZeeTV insert ads before, in between and after various programmes and earn millions of
rupees through ads. Such income could be used for increasing the quality of programmes
and extending coverage.

Publicity
Publicity is the non-personal presentation. It originates from the desk of the editor. It aims at
only informing the public about the events, person, firm etc. There is no control on the publicity
by the advertiser as it comes from the media owner. Publicity can be favorable or unfavorable.
Large firms have separate publicity or public relation department for publicity and cordial public
relation. The secret of the publicity is to get placement in the desired media.

Thus the use of publicity provides various advantages to the seller they are:
- It is available free of cost
- It provides more information than advertising as it comes from the editors desk
- Consumer believe publicity more than advertising

Difference between Advertising and Publicity

The three primary differences between publicity and advertising are (2) control, (2) cost, and (3)
credibility.

- Control
Advertising is a controlled form of communication, whereas public relations is uncontrolled.
When you run an advertisement in a print publication, you purchase a specific amount of space
on a page to run in a particular issue of the publication. You may even be able to specify that
your ad be placed on the top left corner of the sports page. You control the content of the ad as
well.
With publicity, you don’t dictate when, where, or if your promotional messages ever see the light
of day. You can send a news release to a print publication, and the editor or journalist who
receives it might see value in it and print it in the next issue. He or she might really find the
information appealing and interview you for a cover story. However, your news release might
just as easily end up in the garbage can, depending on its relevance, timing, or a number of other
factors.

- Cost
The control that you get with advertising doesn’t come without a price. The reason that you can
specify when and where your advertisement will run is that you pay for the space, airtime, or
bandwidth that it occupies. You are able to control the content because you also pay to have the
advertisement itself created. Some advertisements can be produced inexpensively, and others are
very costly.

When you are trying to generate publicity for your business through public relations efforts, the
only cost is the manpower that it takes to create the documents that you send out to the news
media and the costs of delivering or shipping. It is much less expensive to send a photograph and
a news release to a magazine editor than it is to create a 4-color, camera-ready magazine ad.

Credibility
With advertising, you are able to make sure that the exact message that you want appears in the
media exactly as you have specified. When consumers see an advertisement, most of them are
aware that it is a paid promotion. Some consumers tend to be a little bit suspicious of advertising
messages for this reason.

However, when your local newspaper runs a feature article about your business as a result of a
news release that you sent to the editor, consumers generally don’t stop and think that the story
started with a promotional message from the company. A story in the newspaper is generally
considered to be much more credible than an advertisement in the newspaper. The reason for this
is the third party endorsement effect associated with having someone outside your company
saying good things about it.

The best marketing plans include a mixture of advertising and publicity. It’s important that you
understand the differences between these two forms of communication so that you can
make sound decisions about the ideal mix for your organization.

Propaganda
Propaganda is the means of gaining support for an opinion, creed or belief. The Propaganda
activities are quite different from Public Relations activities.
Propaganda is the manipulation of symbols to transmit accepted attitudes and skills. It describes
political application of publicity and advertising, also on a large scale, to the end of selling an
idea cause or candidate or all three. These consist of concerted, single-purpose publicity
programme, usually on a more or less elaborate scale, employing coordinated publicity through a
variety of media, aimed, at a number of targets, but focussed on specific objectives. A campaign
objective may be the election of a candidate, the promotion of political cause or issue, the
reaching of a sales goal, or the raising of a quota of funds.

Propaganda depicts the use of a variety of communication techniques that create an emotional
appeal to accept a particular belief or opinion, to adopt a certain behavior or to perform a
particular action. There is some disagreement about whether all persuasive communication is
propagandistic or whether the propaganda label can only be applied to dishonest messages.
Propaganda is as well different from PR because of its aims. Usually it has primarily negative
connotations, but seeks to generate more or less automatic responses to given symbols-it is used
by bad guys as well as good guys

Techniques of Propaganda
A propaganda technique is an improper appeal to emotion used for the purpose of swaying the
opinions of an audience. The following propaganda techniques are common:
1. Bandwagon: This technique involves encouraging people to think or act in some way
simply because other people are doing so. For example: "All your neighbors are rushing
down to Mistri Motors to take advantage of this year-end sale. You come, too!"

2. Snob appeal: This technique involves making a claim that one should act or think in a
certain way because of the high social status associated with the action or thought. For
example: "Felson’s Furs – the feeling of luxury, for those who can afford the very best."

3. Vague, undefined terms: This technique involves promoting or challenging an

opinion by using words that are so vague or so poorly defined as to be almost
meaningless. For example: "Try our new and improved, all-natural product."

4. Loaded words: This technique involves using words with strong positive or negative
connotations, or associations. Name-calling is an example of the use of loaded words. So
is any use of words that are charged with emotion. For example: "No really intelligent
voter would support his candidacy."

5. Transfer: This technique involves making an illogical association between one thing
and something else that is generally viewed as positive or negative. For example: " The
American pioneers worked hard because they cared about the future. If you can about the
future of your family, then see your agent at Pioneer Insurance."

6. Unreliable testimonial: This technique involves having an unqualified person endorse

a product, action, or opinion. For example: "Hi, I’m Bart Bearson. As a pro-football
quarterback, I have to be concerned about my health. That’s why I take Pro-Ball Vitamin
Supplements."

Sales Promotion :
Sales promotions are direct inducements that offer extra incentives to enhance or accelerate the
product's movement from producer to consumer. Sales promotion constitutes devices like
contests, coupons, free samples, premium, and point of purchase material. Sales promotion is
action oriented. It motivates customers to buy the goods under incentive plans. Sales promotion
not only covers consumers but also dealers and wholesalers. It acts as a connecting link between
advertising and salesmanship. Thus in a competitive marketing sales promotion act as a effective
tool to an advertiser to solve several short term hurdles in marketing. Sales promotion is a vital
bridge or a connecting link between personal selling and advertising.

Objectives of Sales Promotion:

Sales promotion activities are undertaken to achieve the following objectives:

1. To increase sales by publicity through the media which are complementary to press and
poster advertising.
2. To disseminate information through salesmen, dealers etc., so as to ensure the product
getting into satisfactory use by the ultimate consumers.
3. To stimulate customers to make purchases at the point of purchase.
4. To prompt existing customers to buy more.
5. To introduce new products.
6. To attract new customers.
7. To meet competition from others effectively.
8. To check seasonal decline in the volume of sales.

Importance of Sales Promotion:

The importance of sales promotion has increased tremendously in the modern times. Lakhs of
rupees are being spent on sales promotional activities to attract the consumers in our country and
also in other countries of the world.

Some large companies have also begun to appoint sales promotion managers to handle
miscellaneous promotional tools. All these facts show that the importance of sales promotion
activities is increasing at a faster rate.

Personal Selling :

Personal selling is the process of communicating with a potential buyer (or buyers) face-to-face
with the purpose of selling a product or service. The main thing that sets personal selling apart
from other methods of selling is that the salesperson conducts business with the customer in
person. Though personal selling is more likely to be effective with certain types of products or
services, it has important applications for nearly all kinds of small businesses. In fact, most of
history's successful entrepreneurs have been skilled salespeople, able to represent and promote
their companies and products in the marketplace.
Personal selling is one part of a company's promotion mix, along with advertising, sales
promotion, and public relations. Advertising is any form of paid sales presentation that is not
done face-to-face. Television and radio commercials, newspaper and magazine advertisements,
and direct mail inserts are well-known forms of advertising. Sales promotion is the use of
incentives—such as coupons, discounts, rebates, contests, or special displays—to entice a
customer to buy a product or service. Public relations is the act of building up a company's image
in the eyes of the community in the hopes of translating the feelings of goodwill into sales. An
example of public relations might include a company sponsoring a charity event.

Advantages of Personal selling-

 Less wasteful communication

In personal selling, the salesperson is able to seek out and pinpoint good prospects for the
product. The salesperson can use the communication efforts only the good prospects.
 Facilitates product demonstration
Personal selling allows the demonstration of the product and other visuals. Buyers show
interests when products are demonstrated in the actual use conditions in their homes.
 Provides two way communication
Personal selling is based on the two way communication process. The salesperson is able
to meet buyer's objection and answer all questions raised by the buyer on the product, its
attributes, uses and terms and condition of the sale.
 Flexibility of message
Personal selling allows the communicator to adapt the message according to the
situations.
 Persuasion
Personal selling can achieve the highest degree of persuasion. The salesperson may be
able to visit the prospect several times in order to peruse sales.
 Capitalize on social drives of buyers
The salesperson may develop social relationship with the prospects and stimulate one of
their social drives - ego, fear, love, hate, status and prestige - and execute the sale.
 Closing the sale
The salesperson can push for an order and close the sale

Marketing

Marketing mix consist of four important variables of marketing, i.e. 4Ps-Product, Price, Promotion and
Place. Advertising is an element of promotion. However, it not only assists in promoting the product, but
also affects the other variables of marketing mix. This can be explained as follows:

1. Advertising and Product :

A product is normally a set of physical elements, such as quality, shape, size, colour and other
features. The product may be of very high quality .At times, the product is so designed that it
requires careful handling and operations. Buyers must be informed and educated on the various
aspects of the product. This can be effectively done through advertising. Thus, advertising plays
the role of information and education.
2. Advertising and Price :
The price is the exchange value of the product. A marketer may bring out a very high quality
product with additional features as compared to competitors. In such a case, price would be
definitely high. But buyers may not be willing to pay a high price would be definitely high. Here
comes advertising. Advertising can convince buyers regarding the superiority of the brand and
thus its value for money. This can be done by associating the product with prestigious people,
situations, or events. Alternatively when a firm offers a low price products the job of advertising
needs to stress the price advantage by using hard hitting copy. It is not just enough to convince,
but it is desirable to persuade the buyer. Thus advertising plays the role of conviction and
persuasion.

3. Advertising and Place :

Place refers to physical distribution and the stores where the goods are available Marketer should
see to it that the goods are available at the convenient place and that too at the right time when the
buyers need it. To facilitate effective distribution and expansion of market, advertising is of great
significance. Thus advertising do help in effective distribution and market expansion.

4. Advertising and Promotion :

Promotion consists of advertising, publicity, personal selling and sales promotion technique.
Businessmen today have to face a lot of competition. Every seller needs effective promotion to
survive and succeed in this competitive business world. Advertising can play a significant role to
put forward the claim of seller, and to counter the claims of competitor. Through effective
advertising, sellers can face competition and also help to develop brand image and brand loyalty.