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Advertising 8
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12. Cost of using a medium should be
considered in relation to the budget or the
amount of funds available.
The relative benefits with the relative
costs also should be weighed.
If the advertiser has a small amount to
spend on advertising nation wide, then
television will have to be ruled out and
instead the newspaper should be
considered.
17. Appeals contd…
The advertisement shows a successful
person using the product and implies that
the consumer will be successful if he too
uses it. E.g.:- if a customer buys a
particular brand of clothes, he could get a
better job.
21. Advantages of Advertising to
Advertiser:
Advertising increases sales by
increasing the demand for the products.
Advertising increases profits and
therefore the producer can lower the
price of his goods.
Advertising helps in launching new
products.
Advertising provides employment
opportunities.
22. Disadvantages of advertising
to advertiser:
Advertising is very expensive. The
producers have to spend large
resources on advertising.
Many of the talented people employed in
drafting and making advertisements
might make a better contribution if they
worked in other occupations.
Consumers feel that if there were less
advertising, there would be more
competition over prices.
23. Advantages of advertising to
consumer:
Advertising helps in providing
information to the customer of a
particular product.
Advertising helps to introduce new
products, thus improving the standard of
living.
It is believed that advertised goods are
of better quality than other goods.
Advertising maintains the price of
newspapers at a reasonable level.
24. Disadvantages of advertising
to consumer:
Advertising expenses lead to higher
prices.
Advertising persuades people to buy
unnecessary goods, which they cannot
even afford.
Advertising leads to people buying
goods on credit.
Advertising exploits people to believe
their advertisements are true.
25. Reasons why consumers need protection against
some forms of advertising
Advertisements may be misleading.
Advertisements may contain false
information.
Goods may be incorrectly labeled.
Some advertisements may be dirty and
unsuitable.
Some adult advertisements may be
shown at inappropriate timings.
26. Reasons why consumers need protection against
some forms of advertising
SALES PROMOTIONS:
Free samples: This is the best way of introducing a product. It
is very expensive as samples are given to every household.
Price reduction: Customers often expect household articles to
be offered at reduced prices. Some producers distribute
coupons to customers. The customer can use these coupons
for part payments.
Competition: Sometimes competitions are held. Customers
have to purchase several packets of the producer’s goods to
enter the competition.
Free gifts: Gifts such as glasses, caps or cups may be given to
customers if they buy the producer’s goods.