The document discusses the definition and purpose of advertising. It defines advertising as a paid form of non-personal communication used to promote products and services. The goals of advertising are to promote sales, educate the public about products, and introduce new products. Advertising benefits manufacturers by increasing sales and profits, consumers by providing more choices, and society by supporting economic growth. Common advertising media include newspapers, magazines, television, radio, and online platforms. Selection of media depends on the nature of the product and its target market.
2. It has originated from Latin word ‘adver’ which
means ‘to turn the mind toward’.
Dictionary meaning of the term is ‘to give
public notice or to announce publicity’.
In general, Advertisement is a medium of
impersonal sales efforts.
It is a technique of popularising one’s product or
services.
3. “Any paid form of non-personal presentation or
promotion of ideas , goods or services, by an
identified sponsor.’’
American Marketing Association
“Advertising is mass communication of information
intended to persuade buyers so as to maximise
profits.”
Littlefield and Krikpatrick
4. 1. PAID FORM OF COMMUNICATION –
-- Advertiser pays the amount to newspaper,
magazines, televisions, radio etc., to purchase the space
or time to communicate with the prospective customers.
2. NON – PERSONAL PRESENTATION OF
MESSAGE –
-- Does not come face to face.
-- it is read, seen or listened by the customers.
5. 3. PROMOTION OF PRODUCT –
-- The purpose of the product is to
promote the product or services in order to
increase the sales of product or service.
4. SPONSORED BY IDENTIFIED PERSON –
-- These are sponsored by identified
persons. It should disclose or identify the
sources of opinions and ideas it presents.
6. 1. PROMOTION OF SALES --
Advertising is undertaken to create demand
for new and existing products and services.
It informs people about the new products and
persuading them to go for particular products.
An effective advertising will help in attracting
more and more customers.
7. 2. EDUCATE PUBLIC ABOUT PRODUCT –
Advertisement not only promote products but they
also educate public about their proper use.
Products may sometimes be put to some
alternative uses or some additional uses .
This is brought to the notice of public and it may
fetch more customers.
8. 3. INTRODUCTION OF NEW PRODUCT --
Whenever a new product is introduced in the
market, it must be brought to the notice of the
public through advertisements.
A new product cannot make an impact in the
minds of the customers without the help of
advertising.
Advertisements are helpful in quick publicity of
products.
9. 4. OVERCOME COMPETITION –
Every product is facing not only national but
also international competition.
In order to survive in competition, the good
features of the product should be brought to
the notice of the public.
So advertisements will help in overcoming
competition from other products.
10. 5. MASS PRODUCTION –
Large scale production will be possible only if
there is a market for the products .
Product market can be possible if the product is
widely advertised.
Mass production will help in reducing production
through economies in various expenses.
So advertising is required if production is to be
increased.
11. 6. RESEARCH AND DEVELOPMENT –
Advertising stimulates research and development
activities.
In the prevailing competitive environment every
producer has to differentiate its products from
alternative/substitute products available in the
market.
This will be possible only if regular research is
undertaken on the product and attracting more
customers for the same.
12. ADVANTAGES TO MANUFACTURERS –
1. Create demand for new product.
2. Increases the sales and profits.
3. Creates goodwill.
4. Creates steady demand.
5. Facilitates quick turnover of goods.
6. Reduces cost of production.
7. Reduces cost of distribution.
8. Increases labour productivity.
13. ADVANTAGES TO CONSUMERS –
1. Increase personal satisfaction.
2. Better standard of living.
3. It helps in reducing the prices.
4. Increases the utility of commodities.
5. Saves consumer’s time.
6. Ensures good quality of product.
7. Consumer cannot be cheated.
8. Prompts the consumer to work hard and
earn more.
14. ADVANTAGES TO THE SOCIETY –
1. Uplifts the standard of living.
2. generates gainful employment opportunities.
3. provides new horizons of knowledge.
4. provides a regular source of income to
newspapers.
5. transforms culture of a nation.
6. act as a barometer of a nation’s economic
growth.
15. 1. INCREASES THE PRICE OF THE
PRODUCT OR SERVICES –
- As advertisement cost is included in product
cost.
- it has been said that, “every advertisement is a
nail in the customer’s coffin”.
2. IT MISLEADS PEOPLE AND ACT AS AN
INSTRUMENT OF CHEATING –
-Sometimes conceals the facts to induce the
buyer to buy inferior products.
16. 3. IT CREATES AND BREEDS MONOPLIES –
- It creates brand preference which makes
customers sheer slaves of such brands, resulting
in creation of monopolies.
- It enables manufacturer to exploit customers.
- Becomes difficult for new firms to sell their
product which kills the competition.
17. The term media refers to the means through
which the advertising information is
communicated by the advertiser to the
prospective customers.
It may be classified under two categories
-- Direct advertising
-- Indirect advertising
18. Direct advertising –
-- It aims at reaching directly the known
prospects and is done through direct mail
advertising.
Indirect advertising –
-- Under this public is indirectly approached
through a well chosen media such as films,
television, radio etc.
19. 1. PRESS MEDIA –
It refers to the publication of the advertisement
in newspapers, magazines, and journals. a large
number of national, local and state newspapers;
magazines are there in which these kind of
advertisements appear as it is most economical,
effective and elastic method of enlightening
people
20. (a) NEWSPAPER –
It is the best medium for those who desire to
reach general public quickly and at short
interval. Newspapers have a wide circulation
and are very effective. They are said to be the
backbone of all advertising program.
21. (b) MAGAZINES AND JOURNALS –
-- These are the periodicals published weekly,
fortnightly, monthly, quarterly or yearly to be read
in leisure hours.
-- These are of various types like ordinary
magazines which are read by all classes and
special magazine such as women magazine and
children magazine.
-- Journals are devoted to various subjects such as
commerce, management etc…
22. 2. OUTDOOR MEDIA –
-- It refers to the display of advertisement in open
places wherefrom people generally pass through
such as railway stations, bus stands etc... The
appeal of this advertisement takes a mass form as
many people move out of doors every week.
23. 3. POSTAL OR DIRECT MAIL
ADVERTISING–
It is a way of transmitting information or message
direct to potential customers through the medium
of post.
Such advertising reaches the public free of cost
for them and is generally read indoor.
The important direct mailing media are card, sales
letters, circulars, leaflets, calendars, booklets, etc.
24. NATURE OF PRODUCT—
- Product needed by all :- print, telecast,
outlook.
- Product which needs demonstration:-
television, cinema screen.
- Industrial products:- print media.
25. NATURE OF MARKET –
- The market may be local or national.
- Local :- local cable, local regional newspapers.
- National :- magazines, television and cinemas.