This document provides an overview of advertising fundamentals, including definitions, objectives, types, benefits, limitations, and media. It defines advertising as a non-personal communication conducted through paid media with a clear sponsor. The objectives of advertising include introducing and promoting products/brands, creating desire, building awareness, and increasing sales. Common types are product advertising and institutional advertising. Benefits are outlined for consumers, manufacturers, salespeople, and society. Limitations include limited reach and inability to compel purchases. The role of advertising in modern business is described as important for both manufacturers and consumers. Various advertising media are classified and their characteristics and selection factors discussed.

1. T.Y.B.Com
Dr. Minal Bhandari
Unit 1 Introduction to Advertising
Marketing Management
Paper III

2. Fundamentals of Advertising
Contents
1. Definition of Advertising
2. Objectives of Advertising
3. Functions of Advertising
4. Types of Advertising
5. Benefits
6. Limitations of Advertising
7. Role of Advertising in Modern Business
8. Advertising Media

3. 1. Definition of Advertising
 Advertising is the practice and techniques employed to bring attention to a product or service.
Advertising aims to put a product or service in the spotlight in hopes of drawing it attention from
consumers. The definition of advertising is an industry used to call the attention of the public to
something, typically a product or service. The definition of advertisement is the means of
communication in which a product, brand or service is promoted to a viewership in order to attract
interest, engagement, and sales.
 Philip Kotler: Advertising is a non-personal form of communication conducted through paid
media under clear sponsorship.
 In a nutshell, advertising aims to communicate between the brand and the customer.

4. Features of Advertising
 Paid Form.
 Impersonal presentation.
 Identified Sponsor.
 Mass Reach.
 Enhancing Customer Satisfaction and Confidence.
 Fast communication so economical.

5. 2. Objectives of Advertising
1. Introduce a Product
2. Introduce a brand
3. Create desire
4. Convince the customers
5. Build awareness
6. Customer retention
7. Acquiring Customers or Brand Switching
8. Differentiation & Value Creation
9. Brand building
10. Increase sales and profits
11. Call-to-action

6. 3. Functions of Advertising
Information
Precipitation
Persuasive
Reinforcement
Reminder
Value-adding

7. 4. Types of Advertising
1. Product-related Advertising: Conveys information about and selling a product or service.
a. Pioneering Advertising : Concern with developing a “primary” demand means information about
and selling a product category.
It is used in the “Introductory stage” of PLC.
Example, the advertisement of the Tea Board of India promoting idea of tea as health drink.
b. Competitive Advertising : Seeks to stimulate “Selective” demand.
It seeks to sell a specific brand rather than a general product category.
It is useful in the “Growth” stage or “Maturity” stage of PLC.
1. Direct Type/Direct-Action Advertising : Seeks to stimulate direct buying action.
Advertised an order for the goods advertised or a request for further information e.g. Deal of the
Day, Mahasale 11th to 15th Aug 2023 etc.
2. Indirect Type/Indirect-Action Advertising : Seeks to enhance the desirability of the branded
products offered by highlighting the virtues of the product e.g. LIC, Bournvita etc.
3. Retentive Advertising : Reminder type of advertising when product is at “Maturity” stage of PLC
e.g Cadbury Celebration, MOTI etc.

8. 2. Institutional Advertising:
The objective is to establish a high level of goodwill, to create a positive attitude towards
the seller/manufacturer in the market.
a. Public Relations Institutional Advertising : Telco Group’s advertisement shows their
commitment towards excellence and caring attitude towards its employees.
b. Public-Service Institutional Advertising : Donate blood, AIDS awareness, Road safety
etc.
c. Patronage Institutional Advertising : Emphasizes on a patronage-buying motive rather
than a product-buying motive like good location, good service, door-step delivery, free
delivery etc.

9. 5. Benefits of Advertising
a. Benefits to the Consumer:
 Adds perception utility to the product. It creates a desire in the mind of the consumers to
purchase the advertised product.
 Helps the consumer in making the purchase decision.
 Ensures a better quality.
 Sells goods at reasonable prices.
 Provides better standard of living.
 Saves time in shopping.
 Advertising contributes to consumer welfare.
 Advertising makes consumers think ( awareness about dowry, energy conservation pollution,
eye donation etc.

10. 5. Benefits of Advertising
a. Benefits to the Manufacturer:
 It creates new customers
 It increases the sales
 It helps the manufacturer in informing the market about the changes in
the product or service
 It controls product prices
 It acts as a sales representative
 It widens the market

11. 5. Benefits of Advertising
c. Benefits to the Salesman:
 It makes the salesman's task easier
 It helps in boosting the confidence in the salesman
d. Benefits to Society:
 It increases the standard of living of the society
 It provides numerous employment opportunities
 It reflects and affects the culture of the society
 It provides information to the public

12. 6. Limitations of Advertising
1. It has a limited capacity to reach a selected audience ( the requirement of
all customers are not same e.g shaving cream does not influence females.
2. Repeat sales is not possible in case of bad product through advertisement.
3. Rigid. (can not answer to the objections of the consumers to the product)
4. Not believable every time.
5. Cannot conflict with the cultural values of society.
6. Cannot compel to buy a product.
7. It succeed only when it is well coordinated with all elements of the
marketing mix.

13. Activity 1 Date : 11/08/2023
 Identify and make a list of advertisements
according to its type.

14. 7. Role of Advertising in Modern Business
 An important aspect of every type of business.
 Important for manufacturers as well as consumers.
 In the era of competition, advertising industry become a huge
industry.
 Rapid growth in newer techniques of advertisement.

15. 8. Advertising Media
 Definition
 Classification and Characteristics of Advertising Media
 Factors affecting on selection of Advertising Media
 Media Mix
 E-Advertising

16. Definition of Advertising Media
 According to Brennan, “The term media embraces each and every method that
the advertiser has at his command to carry his message to the public.”
 The physical means whereby a manufacturer of goods or utilities or a supplier of
services tells the consumer about his product or service is known as Advertising
Media.
 In brief, advertising media is a vehicle or device that carries the message of the
advertiser to the target consumer.

17. Classification of Advertising Media
Types of
Advertising
Media
a. Indoor
Press
Radio
Television
Film
b. Outdoor
Posters
Painted displays
Electric signs
Travelling displays
Sky-writing
Sandwichmen
c. Direct
Post Cards,
Booklets and
catalogues,
Sales letters
Store publications
d. Display
Displays
Showrooms
Trade shows,
exhibitions and
Fairs
e. Internet
E-mail
Social Media

18. a. Indoor Advertising Media
 A media which reach the audience right inside their houses or indoors via
newspaper, television, radio etc.
1. Press or Print Media:
a. Newspapers :
Merits Demerits
1. Wide and local coverage 1. Short period
2. Lengthy messages can be passed
effectively 2. Chances of being unnoticed
3. Economical 3. Different rates
4. Easy to release 4. Poor quality

19. 1. Press or Print Media:
b. Magazines :
Published weekly, fort-nightly, monthly, quarterly and annually.
Merits
1. Longer life
2. Visual display
3. Selective market segment
4. Geographical flexibility
Demerits
1. Inflexibly
2. Waste in circulation
3. Costlier
4. Restricted frequency

20. 2. Radio Media:
A medium of mass communication that appeals to the ears through sound.
Merits
1. Selectivity (Particular
channel/station/time/day/region)
2. Flexible
3. Mass coverage
4. Economical than TV
Demerits
1. Lack of Illustration
2. Perishability
3. Limited time effect

21. 3. Television Media:
An audio-visual medium that provides a perfect synchronization of
sound, light, motion, color and closeness.
Merits
1. Deep impact
2. Mass communication
3. Long life presentation
4. Evocation of experience
5. Image building
Demerits
1. Time consuming
2. Short life effects
3. Costly in comparison with other
media
4. The clutter problem (over crowing
of too many commercials)
5. An immobile medium (can be
viewed only at home or a fixed
location)

22. 4. Film Advertising Media:
A medium of publicity featured by sound, motion, color, vision and
timeliness. An audio-visual medium used at cinema halls.
Merits
1. Ensures a captive audience
2. An ideal for niche marketing
3. Economical (Screening an
advertisement in a theatre is quite
economical but the cost of making
the advertising film is high.)
Demerits
1. Costly
2. Limited coverage
3. Dislike from viewers (As disturbs the
film watching)

23. B. Outdoor/Indirect Advertising Media:
An oldest form of advertising. The vehicles of this media are:
1. Posters
2. Painted Displays
3. Electric Sign/Neon Signs
4. Travelling Displays/Transit Advertising (Used in trains, buses, cars, trams, autos and
other vehicles and terminals or the station)
5. Sky-writing (Sky balloons, giant kites and searchlights. Short life so not very
commonly used.)
6. Sandwich men (Funniest and oldest medium popular in rural areas. The advertiser
hires men who is sandwiched between the posters both in front and back with
colorful clothes and shout slogans.)

24. B. Outdoor/Indirect Advertising Media:
An oldest form of advertising. The vehicles of this media are:
Merits
1. Long life/period
2. Geographic selectivity
3. Name-addresses of local traders
can be incorporated in advt.
4. Attractive display at noticeable
location
Demerits
1. Non-selective other than
‘Geography’
2. Mass communication is limited to an
area
3. Relatively expensive
4. Difficult to measure the
effectiveness of an advertisement

25. C. Direct Advertising Media:
Different Forms of Direct Advertising Media are :
1. Post Cards
2. Board sides (Advertising folder e.g. launch of construction site)
3. Booklets and Catalogues
4. Sales Letters
5. Gift-novelties
6. Store Publications (Bulletin/magazine published by the company)
7. Package Inserts
All forms of printed advertising delivered directly to prospective customer. Instead of Indirect
media like newspaper/TV where the prospect customer may or may not see the advertisement,
direct media like post cards, pamphlets, sales letters etc. are used for direct approach to prospect.

26. C. Direct Advertising Media:
Merits
1. Personal touch
2. High selectivity
3. Deep impact
4. Measurement of effectiveness
Demerits
1. Comparatively costly
2. Low reader interest/response
3. Warrants special skill

27. D. Display Advertising Media/Point of Purchase (POP):
Different Forms of Display Advertising Media are :
1. Displays : a. Shop-window display b. Counter display
2. Showrooms
3. Trade shows, Exhibitions and Fairs
A promotional medium than advertising. It allows the prospects to experience the products before
buying. It is an effective aid of communication which attracts the customers to shop and leads to
impulse buying.

28. E. Internet Media:
1. Email
Merits
1. Inexpensive
2. Easy to create
3. Less research
Demerits
1. Low rate of click-through
2. Competition
2. Social Media
Merits
1. Mass audience
2. Can be expensive
3. Interactive (Live promotion)
4. Large data available
Demerits
1. Huge competition
2. Intrusive to consumers
3. Negative comments
4. Time consuming
A form based on availability of internet-websites which provide information through video, text,
e-mails, audio to large prospects.

29. Factors affecting on Selection of Advertising Media
1. The nature of the product
2. Potential market
3. The type of distribution strategy
4. The advertising objective
5. The type of selling message
6. Budget
7. Competitive advertising
8. Media availability
9. Characteristics of media such as
coverage, reach
10.Relative cost (Availability of fund)
11.Consumer confident
12.Frequency of advertisement

30. Media Mix
 A combination of different advertising channels selected with
the aim to reach at maximum number of people.
 A smart move in the marketing industry.
 Also known as media planning strategy.
 Essentials while framing Media Mix:
1. Right message to the right audience
2. Aligning media mix with buying stages
3. Integrated media work harder (than single media)
4. Fine-tuning the mix (Assess existing media mix and improve
the results.)

31. E-Advertising/Internet Advertising
 Objectives of E-Advertising/Internet/Online Advertising:
1. Wider reach to prospects
2. Targets the Niche Market (Specific)
3. With low cost, reach to mass
4. Easy measurability of investment
5. Creating brand awareness
6. Cost of acquisition per customer is less compared to others
It uses the internet to communicate with the customers. Email marketing, search engine marketing,
social media marketing, display advertising, mobile advertising are included in E-Advertising.

32. Types of E-Advertising/Internet Advertising
Website Banner
(Display an ad
banner on other’s
website)
Sponsorship
Rich Media
(Click-through)
Text Link
Exchanges and
Paid Link
Keyword Advertising (When
someone search using the
word ‘resume’, the matter
of advertising company
comes on pop-up)
Coupon Deals
Pop-up (An adv
displays in a
new window)
and Pop-under
(inserts an adv
under the page)
Pay per Click or
Pay per Sale
(Some sites sell
space to
advertiser)

33. Advantages of Internet Advertising
Merits
1. Wider Reach
2. Targets the Niche Market
3. Measureable results
4. Brand Awareness
5. Affordable
6. Speed
7. Informative
8. Flexible Payment
9. Better ROI
10. Easy Audience Engagement
Demerits
1. Interrupting Advertisements
2. Copyright Problem
3. Customers Ignore the Ads
4. Viewing Issues
5. Consumers Get Distracted
6. Difficult to measure Effects
7. Too many Options
8. Click Fraud

34. Recent trends in Internet Advertising
1. Mobile Video Advertising
2. Smart Phone apps. Advertisement
3. Social Media Advertising
4. Search Engine Marketing (SEM)
5. Affiliate Marketing
6. Blog Advertising