2. • Advertising is a paid form of non personal
presentation of goods or services for promotion
by an identified sponsor
Kotler and Armstrong provide an alternative definition:
"Advertising is any paid form of non-personal
presentation and promotion of ideas, goods and
services through mass media such as newspapers,
magazines, television or radio by an identified
sponsor".
3. • Three criteria must be met for a
communication to be classified as advertising:
– The communication must be paid for
– The communication must be delivered through
mass media
– The communication must be attempting to
persuade
4. Advertising Functions
• Informing
– Making consumers aware of new brands.
– Increasing TOMA (Top of Mind Awareness)
– Teaching new uses for existing brands (called
usage expansion advertising)
5. • Influencing(Persuasion)
– Getting prospective customers to try advertised
products and services:
• Creating primary demand
• Building secondary demand
6. • Reminding and Increasing Salience(Reminder)
– Enriching the memory trace for a brand so that the
brand comes to mind in relevant choice situations
– Increasing customers’ interest in mature brands and
the likelihood of choosing brands that might have
otherwise not been chosen.
– Influence brand switching by reminding consumers
that the brand is available and that it possesses
favorable attributes.
7. • Using Advertising to Assist Other Company
Efforts
– To deliver coupons
– To assist sales representatives
– To pre-sell a firm’s products by introducing the
product and legitimizing salespeople’s claims
– To augment the effectiveness of price deals
8. THE OBJECTIVES OF ADVERTISING -
Why advertise?
• To boost sales (moving the demand curve to the right)
• To build brand loyalty (or to maintain it at the existing
level)
• To launch a new product
• To change customer attitudes – perhaps trying to
move a product more “upmarket” or to dispel some
widely held perceptions about the product
• To support the activities of the distribution channel
(e.g. supporting a “pull” strategy)
• To build the company or brand image
• To reminds and reassure customers
9. • To offset competitor advertising – businesses may
defend market share by responding to competitors’
campaigns with their own advertising
• To boost public standing: companies can boost their
public standing with advertisements that link them
with generally approved campaigns such as care for the
environment
• To support the sales force – advertising can make the
job of the sales force easier and more effective by
attracting leads from potential customers and perhaps
motivate them by boosting the profile of the business
10. BENEFITS OF ADVERTISING
• Advertisements create awareness, interest and
desire for products and services in customers to
buy them.
• Advertising is cost efficient as advertisements can
reach a vast number of audiences simultaneously
• The message can be repeated several times,
thereby creating an impact on the mind of a
customer. For example, “It’s the coolest one,”
reminds us of Kelvinator refrigerators.
11. • Advertising a product in a certain way can add
to its value
• It helps in boosting the sales of the company.
• Once a product/service is purchased, it
(advertising) reassures the customer about
the purchase decision, thus helping in
reducing the post purchase dissonance, if any.
12. • Advertising helps in changing the customer's
perception of a product.
• It supports the activities of the distribution
network of the firm by creating demand and
encouraging purchase through pull strategy.
• It helps in making the job of the sales force
easier, by crating awareness among potential
customers.
13. • Advertisements help in offsetting the
competitors' advertisements.
• Advertisements also help in building a strong
image of a product or brand, apart from
increasing its sales.
