INTRODUCTION TO ADVERTISING
DEFINATION OF ADVERTISING
Advertising is a paid form of non-personal presentation and promotion of ideas, goods and
services by an identified sponsors.
Advertising is a communication of information and values by an identified sponsor.
Advertising is the delivery of the most persuasive product message at the right time in the
right place to the right person at the lowest possible cost.
MEANING
Advertisement is, thus, the process of spreading product information among the potential buyers
through a public medium in order to maximize sales. Such a public medium includes, among others,
newspapers, magazines, television and radio.
Advertisement is, thus, the process of spreading product information among the potential buyers
through a public medium in order to maximize sales. Such a public medium includes, among others,
newspapers, magazines, television and radio.
Several companies are producing goods and products, which are critical for a customer to fulfil their
needs. However, with tremendous competition and limited span of attention for a customer, it
becomes difficult for a customer to know about a product or a service. Hence advertising plays an
important role in communication the value proposition of a company’s offering to the customer. An
advertisement clearly highlights the product/ service, its utility and also builds a connect with the
customer. Advertising and marketing a brand enables to reach out, teach about the product and ensure
that the customer is aware about the company. All these things can influence the buying behaviour of
a customer.
These days companies have dedicated teams and managers who look after the advertising strategy of a
company. The role of these employees is to have an advertising plan, allocate an advertising budget,
create an advertising campaign and ensure that the ad reaches out to as many customers as possible.
TYPES OF ADVERTISING
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Product- related Advertising
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Product service advertising
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Functional Classification
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Advertising based on product life cycle
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Advertising based on Target audience
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Trade Adverting
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Advertising based on area of operations
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Adverting according to medium utilized
PRODUCT-RELATED ADVERTISING
Concerned with conveying information about and selling a product or service. Product
advertising is of three types
1. Pioneering Advertising

Used in introductory stages in the life cycle of a product.

Concerned with developing a “primary” demand.

Conveys infomatiom about, and selling a product category rather than a specific brand

For example the initial advertising for black and white television. Such
advertisements appeal to the consumer’s emotions and national motives
2. Competitive Advertising

Useful when the product has reached the market growth and especially the marketmaturity stage.

Stimulates “selective” demand

Seeks to sell a specific brand rather than a general product category

Direct Type: It seeks to stimulate immediate buying action

Indirect Type: It attempts to pinpoint the virtues of the product in the expectation
3 Retentive Advertising

Useful when the product has achieved a favourable status in the market that is maturity or
decling stage

Generally in such times the advertiser wants to keep his product’s name before the public.

Amuch softer selling approach is sued or only the names may be mentioned in reminder type
advertising
PRODUCT SERVICE ADVERTISING
Product advertising is any method of communication about the promotion of a product in an attempt to
induce potential customers to purchase the product. Advertisement usually requires payment to a
communication channel. The general objective is to increase brand awareness or to demonstrate the
differences between product and competing products in order to sell them.
FUNCTIONAL CLASSIFICATION
1) Advertising based on demand influence level
2) Institutional Advertising
Institutional advertising is to build a positive image and to generate goodwill about a
particular
industry, rather than to promote sales. The benefits, ideas and philosophies of the business are
conveyed in a lucid manner. Because of its attempts to create a positive image, it is closely related to
public relations. In this, the organization markets itself rather than its products.
3) Product Advertising

Information

Persuasive

Reminder oriented
ADVERTISING BASED ON TARGET AUDIENCE
1) Consumer Advertising (B2C)

For goods that the consumer will often buy during the year.

Heavy competion among the advertisers to establish an advantage for their
particular brand

Examples: pharmaceuticals, cosmetics, scooters, detergents and soaps,
cigarettes and alcholic beverages
2) Industrial Advertisng (B2B)
Objectives are

To inform

To bring in orders

To induce inquires

To reduce selling cost

To motivate distributors

To indulge inquires
ADVERTISING BASED ON PRODUCT LIFE CYCLE
When it comes to advertising a product, the advertising life cycle is made up of four primary stages. These
stages are the introduction, growth, maturity and decline stages. Each stage is associated with how the
product sells, but each stage has its own set of advertising guidelines businesses should abide by so
companies can plan to address the advertising challenges a product faces as it moves through each stage of
the product life cycle.
TRADE ADVERTISING
A trade advertisement is an advertising undertaken by the manufacturer and directed toward
the wholesaler or retailer
a)
Retail Advertising
Retail Advertising refers to advertising for the retail business, in connection of the private
business of branches. Furthermore, the designation Retail is used also in the tourism and banking
industry.
An optimization of the individual advertising is achieved when the position of the receiver (client,
user) is determined. In digital marketing, it is controllable via geo-marketing and geo-targeting.
Advertising, for example banners (display) will be shipped only in a particular environment
(radius, zip code).
b) Wholesale Advertising
Wholesale marketing is when a producer or manufacturer of a product or good sells its
supply to a company (the wholesaler), who will, in turn, sell it to the end consumer, possibly
even under the brand name of the company.
ADVERTISING BASED ON AREA OF OPERATION
1) National advertising
national advertising has a special connotation that it is not confined to any geographic area
within the nation. This type of advertising is undertaken mostly by the marketer of a branded
product or service sold through different outlets in the distribution channel, wherever they
may be located. Apparently the term national advertising conveys mass marketing effort. In
reality this does not necessarily mean that the product is sold nationwide. The objective of
national advertising is to inform or remind consumers about a company or brand. The ad
may intend to communicate brand features, benefits, advantages or uses and to create or
reinforce its image so that the consumers will be predisposed to buy it. This type of
advertising is done by a manufacturer and is in contrast to that done by a retailer whose
objectives are totally different.
2) Local Advertising
Local Advertising means advertising (whether space or preferred placement of listings)
included in or accessible through a physical or non-physical directory that is intended to
provide Directional Information regarding, or otherwise promote, a business or other
organization located in or providing products or services in any Service Area.
Notwithstanding the preceding sentence, Local Advertising excludes advertising sold to or
promoting a business (or group of related businesses) that sells products or services in three or
more non-contiguous states or five or more states, andprimarily targets advertising to
consumers who are located or reside outside of the Service Areas. Notwithstanding the
foregoing sentence, otherwise unrelated businesses which collectively form a group solely for
purposes of purchasing advertising shall not qualify for the foregoing exclusion from Local
Advertising.
3) REGIONAL ADVERTISING
Regional advertising is placing ads of any media within a specific
geographic location to influence decision in one locality. A region may be
defined in different geographic sizes or terms such as city, county, state,
country, or continent.
ADVERTING ACCORDING TO MEDIUM UTILIZED
Newspaper
Newspaper advertising can promote your business to a wide range of customers. Display
advertisements are placed throughout the paper, while classified listings are under subject
headings in a specific section.
You may find that a combination of advertising in your state/metropolitan newspaper and
your local paper gives you the best results.
Magazine
Advertising in a specialist magazine can reach your target market quickly and easily. Readers
(your potential customers) tend to read magazines at their leisure and keep them for longer,
giving your advertisement multiple chances to attract attention. Magazines generally serve
consumers (by interest group e.g. women) and trade (industry/business type e.g. hospitality).
If your products need to be displayed in colour then glossy advertisements in a magazine can
be ideal - although they are generally more expensive than newspaper advertisements.
Magazines do not usually serve a small area such as a specific town. If your target market is
only a small percentage of the circulation, then advertising may not be cost-effective.
Radio
Advertising on the radio is a great way to reach your target audience. If your target market
listens to a particular station, then regular advertising can attract new customers.
However, sound has its limitations. Listeners can find it difficult to remember what they have
heard and sometimes the impact of radio advertising is lost. The best way to overcome this is
to repeat your message regularly - which increases your costs significantly. If you cannot
afford to play your advertisement regularly, you may find that radio advertising does not
generate strong results.
Television
Television has an extensive reach and advertising this way is ideal if you cater to a large
market in a large area. Television advertisements have the advantage of sight, sound,
movement and colour to persuade a customer to buy from you. They are particularly useful if
you need to demonstrate how your product or service works.
Producing a television advertisement and then buying an advertising slot is generally
expensive. Advertising is sold in units (e.g. 20, 30, 60 seconds) and costs vary according to:

the time slot

the television program

whether it is metro or regional

if you want to buy spots on multiple networks.
Directories
Directories list businesses by name or category (e.g. Yellow Pages phone directories).
Customers who refer to directories have often already made up their mind to buy - they just
need to decide who to buy from.
The major advantage of online directories over print directories is that if you change your
business name, address or telephone number, you can easily keep it up to date in the
directory. You can also add new services or information about your business.
If your target market uses print and online directories, it may be useful to advertise in both,
although print directories are being used less.
Outdoor and transit
There are many ways to advertise outside and on-the-go. Outdoor billboards can be signs by
the road or hoardings at sport stadiums. Transit advertising can be posters on buses, taxis and
bicycles. Large billboards can get your message across with a big impact. If the same
customers pass your billboard every day as they travel to work, you are likely to be the first
business they think of when they want to buy a product.
Even the largest of billboards usually contain a limited amount of information; otherwise,
they can be difficult to read. Including your website address makes it easy for customers to
follow up and find out more about your business. Outdoor advertising can be very expensive
especially for prime locations and supersite billboards.
Direct mail, catalogues and leaflets
Direct mail means writing to customers directly. The more precise your mailing list or
distribution area, the more of your target market you will reach. A direct mail approach is
more personal, as you can select your audience and plan the timing to suit your business. A
cost effective form of direct mail is to send your newsletters or flyers electronically to an
email database. Find out more about direct mail.
Catalogues, brochures and leaflets can also be distributed to your target area. Including a
brochure with your direct mail is a great way to give an interested customer more information
about your products and services. Learn more about leaflet marketing using letterbox drops
and handouts.
Online
Being on the internet can be a cost-effective way to attract new customers. You can reach a
global audience at a low cost. Many customers research businesses online before deciding
whom to buy from.
A well-designed website can entice customers to buy from you. There are a number of ways
you can promote your business online via paid advertising or to improve your search engine
rankings. Learn more about doing business online.
Other ways to advertise your business online include promoting your products or services on
social media sites, blogs and search engines and other websites that your target audience
visits. Find out more about social media.
ADVANTAGES AND DISADVANTAGES OF
ADVERTISING
Advantages of Advertisement.
1. Bringing new products to your notice. Advertisements are a great source of inspiration
for new things to buy!
2. Creativity. Some adverts are very creative, and fun to engage with in their own right.
3. Helping the economy. Marketing helps to keep the wheels of business well oiled.
4. Spotting your favorite stars. Famous actors often appear in high profile ad campaigns:
watch out for them!
5. Treating yourself. Advertisements encourage you to treat and pamper yourself, a great
way of boosting your mood.
6. Gift ideas. Advertisements are a handy way of getting ideas for gifts that you can give
your loved ones on special occasions.
7. Cultural markers. Adverts often are the barometers of our society, showing what people
care about and what our values currently are.
8. A break from the show. When the adverts come on during a TV show, you have time to
grab a drink or use the bathroom: very convenient!
9. Time to get some popcorn. As the adverts roll in the movie theater, audience members
have time to find a seat or rush out for an extra hot dog.
10. A talking point. Everyone sees the same adverts, so they are something to talk about
with your friends.
Disadvantages of advertising
1. Spending money you don’t have. Advertisements can prompt you to spend cash that you
should really be saving.
2. Too commercial. Adverts show just how commercialized our society has become.
3. Breaking up your favorite shows. Sometimes, you just want to watch that thriller straight
through without having adverts breaking up the action.
4. An online annoyance. Trying to stay absorbed in an online article when ads are popping
up left, right and center can be very difficult!
5. A security risk. We have seen the rise of ‘adware’: malicious software that plants risky
ads in your computer.
6. Crass and crude. Some people find today’s ad campaigns far too low minded for their
liking.
7. Ineffective. Nowadays, people are well aware that advertisements are trying to sell them
something, so they can ‘switch off’ instantly as soon as they see an advert, making adverts
ineffective.
8. Boring. Some people just find ads monotonous and boring.
9. Unsuitable for kids. Some parents worry about the suitability of certain adverts for their
children.
10. A waste of money? The money spent on ad campaigns could be used for education or
charity projects instead
ROLE OF ADVERTISING

Information and persuasion

Introduction of new brand or brand extension

Building and maintaining brand loyalty among customers

Creating an image and meaning for a brand