Marketing Communications - 2 - Advertising


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Advertising is a tool of marketing that disseminates information about a brand which is aimed at a large number of people simultaneously.
For this advertising has to buy space or time in one or more media of mass communication such as radio, television, newspaper, magazines & internet, etc.

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Marketing Communications - 2 - Advertising

  1. 1. ADVERTISING A Presentation By Himansu S M 20-Jul-2013 1
  2. 2. ADVERTISING INTRODUCTION • Advertising is a tool of marketing that disseminates information about a brand which is aimed at a large number of people simultaneously. • For this advertising has to buy space or time in one or more media of mass communication such as radio, television, newspaper, magazines & internet, etc. 2
  3. 3. DEFINITIONS • AMA-1948: Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. • AMA-latest: Any announcement or persuasive message placed in the mass media in paid or donated time or space by an identified individual, company, or organization. 3
  4. 4. WHAT ADVERTISING DOES “The purpose of marketing is • to sell more stuff • to more people • more often • for more money in order • to make more profit”. • Advertising helps to achieve this purpose by following means: 4
  5. 5. WHAT ADVERTISING DOES • Increases the customer base by: – Turning non-users into users (Ex- Mineral water, mouthwash, deodorants, etc.) – Attracting users of a competitive brand (Ex- Pepsi/Cocacola, Surf/Ariel, Colgate/ Pepsodent, etc.) – Retaining existing customers (Product advertisements, Corporate advertisements, reinforcing messages, etc.) • Helps increase the primary demand: – (Ex- ads for milk, eggs, veg, gold, diamond, etc. where a product is highlighted and not a brand.) 5
  6. 6. WHAT ADVERTISING DOES • Helps increase the usage: – Advertising tries to increase the frequency and types of use of a product (Ex- Brushing tooth twice a day, Additional recipes for Milkmaid use etc.) • Helps to reduce time between purchases: – The Customers save themselves the trouble of running out of necessary items, and the advertiser is benefited by selling more frequently or more in quantity (Ex- Soaps in 3/5packs, Toothbrushes in 4s for the whole family, etc.) 6
  7. 7. WHAT ADVERTISING DOES • Helps Product Differentiation: – Communicating the points of supperior quality, better price, easier availability, additional offers, etc. • Advertising is a cost-effective method of communication and promotion for large audiences (Ex- thro’ TV, Radio and internet - huge public exposure) • Helps to create brand images and symbolic appeals for a Company or a Brand, a very important factor for companies selling products and services which are difficult to differentiate on functional attributes (Ex- Maruti / Hyundai or Honda / Toyota) 7
  8. 8. CONSUMERS’ EXPECTATIONS • Information about Products or Services • Information about Companies and Organisations • Along with the above they also get Puffery and Hype 8
  9. 9. CONSUMERS’ EXPECTATIONS • Out of these the first two are informative, • and the third one is persuasive. • In actual practice, the ad may be a combination of all these with varying degrees of these contents. 9
  10. 10. CONSUMERS’ EXPECTATIONS • Informative advertisement offers various information cues like: • Price, quality, contents, performance, availability, special offers, taste, nutrition, packaging, shape, guaranty, warranty, safety, independent research, company research, new ideas, etc. • This allows the prospective buyer to make a rational decision for buying. 10
  11. 11. WHAT CONSUMERS GET • Puffery refers to advertising which uses subjective opinion, superlatives, exaggerations, excessive praise, vague & general statements with no facts or information. • Advertising tend to be more persuasive than any other form of marketing communication because of technological advancements and a plethora of similar quality products. 11
  12. 12. TYPES OF ADVERTISING • Advocacy Advertising: Advertising that aims at convincing various section of the public to accept an organisation’s position on certain issues. • B-2-B Advertising: Advertisements that are aimed at wholesale buyers of goods and services, generally companies. This is also known as Industrial Advertising. 12
  13. 13. TYPES OF ADVERTISING • Comparative Advertising: Advertising that makes direct and indirect comparisons between brands and companies implying that one is better than the other. • Consumer Product Advertising: Advertisements that aim at giving a positive image to a brand of consumer products. 13
  14. 14. TYPES OF ADVERTISING • Educational / NGO Advertising: Advertisements by Educational Institutes aimed at students concerning the choice of courses, placements, etc. NGOs also use such types of ads to promote various social / cultural causes. • Financial Advertising: Advertisements that are aimed at selling financial products like, Banks, Insurance, Mutual Funds, Bonds, Loans, Shares, IPO, etc. 14
  15. 15. TYPES OF ADVERTISING • Generic Advertising: Advertisements that doesn’t specify any Brand or Company, but a category of products like gold, silver, diamods, ornaments, etc. • Institutional Advertising: Advertising that promotes a company’s mission and philosophy. 15
  16. 16. TYPES OF ADVERTISING • Personal Advertising: Advertisements that are placed by individuals with a specific purpose, such as matrimonials, situation wanted, sales of household goods, social events, obituaries, etc. • Political Advertising: Advertising by various political parties during elections, such as abut political agenda, sponsorship, presentations, talks, comparisons, etc. 16
  17. 17. TYPES OF ADVERTISING • Retailer Advertising: Advertisements that are carried out in local markets by organis-ations and businesses to promote sales or increase consumer traffic. • Service Advertising: Advertisements that are aimed at publicising services such as Hotels, Hospitals, Airlines, Telecon services, Tours & Travels, Vacations, etc. 17
  18. 18. TYPES OF ADVERTISING • Surrogate Advertising: This kind of Advertisements refer to a tactics used by companies and advertisers to promote clandestinely a product for which they are prevented by the law of the land. 18
  19. 19. TYPES OF ADVERTISING • Trade Advertising: Company Advertisements that are aimed at the supply / distribution channel. • Vacancy / Appointment Advertising: Advertisements that relate to the details of jobs / situations vacant. These are placed either by the employer or placement agencies, without naming the companies. 19
  20. 20. ADVERTISING ETHICS • Critics of Advertising often do so on the following points: • Advertising make people buy things they don’t really need, • It makes people buy & hoard more than they need, • It creates an unequal world, and a world of make believe 20
  21. 21. ADVERTISING ETHICS • It builds stereotypes and is glamorous, • It exaggerates facts, tells half truths & statistics, • It has beautiful, influential, prestigious & high profile people endorsing products who hardly use these products, • It stimulates a desire for material acquisition, excessive consumption and consumerism. 21
  22. 22. SELF REGULATION CODE • Like other professions, Advertising too has a code of ethics. For this the representative body is the “Advertising Standard Council of India” (ASCI). It has stipulated the code for self regulation as following: • Truthful and fair to consumers and competitors, 22
  23. 23. SELF REGULATION CODE • Within the bounds of generally accepted standards of public decency and propriety, and • Not to be used indiscriminately for promotion of products hazardous or harmful to society or to individuals, particularly minors, to a degree unacceptable to society at large. 23
  24. 24. THANK YOU Himansu S M / 20-Jul-2013 24