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Advertising management
MM-301
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PREVIEWy Meaning of advertising
y Definition of advertisingy Features of advertising
y Functions of advertising
y Types of advertising
y
What Makes an Ad Effective?y Importance of advertising
y Benefits of Advertisement
y Harms done by Advertisement
y Role of Advertisement in Marketing Mix
y Aspects of Advertisement Economic Aspects
Social Aspects
Legal Aspects
Ethical Aspects
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CONCEPT OF ADVERTISING
y MEANING & DEFENITION
y FEATURES
y FUNCTIONS
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MEANING
y The term advertising is derived from a Latin word Advertere whichmeansto turn attention towards a specific thing.
y Dictionary meaning of advertising is to announce publicly. Thusadvertising is a paid form of non personal communication with targetaudience throughmass media such as T.V., newspapers, magazines ,
telephone , internet etc.
DefinitionAccording to A.M.A:-
y Advertising is any paid form of non personal presentation & promotion ofgoods, services or ideas by an identified sponsor.
AccordingTo Philip Kotler:
y Advertising is non personal from of communication conducted throughpaid media under clear sponsorship.
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Features of Advertising
yPaid form
yNon personal
yIdentified sponsor
yAny form
yGoods , services or ideas
yCan be used by any organization
ySpeedy communication
y mass communication
yIt is an art
yControlled
yImportant element of promotion-mix
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Functions of Advertising
Primary function Secondary function Social function
1.Creates demand
2.Announces for new product
or service
3. Promotes new uses of
the product
4. Informs about changes
5. Helps in understanding uses6. Reminds users
7. Creates brand preference
8. Helps to neutralize
competition
1. Boost the morale of
Employees
2. Supports salesmen
3. Reaches customers
left by s.m
4. Helps procure betteremployees
5. Announces location of
dealers & stockist
1.Improves standard of living
2.creates awareness
3.creates employment
4.Educates consumers
5.solves social problems6.Circulates govt notification
7.Other social functions
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Advertising is a form of communication
that typically attempt to persuade,potential to purchase or to consume more
of a particular brand of product or service.
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Types ofadvertising
Advertising on basis of geographical area1. Local/regional
2. National
3. Global/international
Advertising on basis of target-audience1. Consumer ads2. Industrial ads
3. Professional ads
4. Trader ads
Advertising on basis of demand influence level
1. Primary demand creation ads2. Selective demand stimulation ads
Advertising to promote brand image1. Corporate ads
2. Product ads
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Local Advertisement.
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National Advertising
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International Marketing
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Advertising directed toward professionals
such as doctors, dentists, and pharmacists,etc., who are in a position to promoteproducts to their patients or customers.
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Consumer advertisement.
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advertising directed at commercial business
customers. The advertised products are rawmaterials, components, or equipment needed inthe production or distribution of other goods
and services.
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Advertising on basis of diff. stages of PLC1. Informative ads
2. Persuasive ads 3. Reminder
Advertising on basis of timing of response1. Direct action ads2. Indirect action ads
Advertising on basis of nature of appeal1. Emotional ads2. Rational ads
Advertising on basis of media used1. Print ads
2. Audio-video ads3. Audio ads
Other ads1. Classified ads2. Social ads
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Out-Door AdvertisementBill-board and message painted on theside of buildings are common forms ofout-door advertising, which is oftenused when quick, simple, ideas arebeing promoted.
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Brand AdvertisingIt is advertising with a strong emphasison the company brand (logo and/orcompany name) also known asintegrated marketing communications(IMC).
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Business advertisement.
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Direct advertisements
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Emotional Advertisement.
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Social advertisement.
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Broadcast advertising Broadcast advertising is a very popular advertising
medium that constitutes of several branches like
television, radio or the Internet. Televisionadvertisements have been very popular ever since theyhave been introduced. The cost of televisionadvertising often depends on the duration of theadvertisement, the time of broadcast (prime
time/peak time), and of course the popularity of thetelevision channel on which the advertisement is goingto be broadcasted.
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Online advertisingOnline advertising is the newest and fastestgrowing way to advertise. The Internet now
provides everything from links on sites, tobanner ads on sites, to small ads on sites, topay per click advertising.
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Radio Advertisementy It is a small business advertising.
y Radio advertising can be a very effective means to
attract customer to some business.
y New Sathi lather House, Bhiya Pizza,
Fhakar rent a car
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Radio Advertisement
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Institutional advertisement
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Reminders
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Importance ofadvertising
Importance of Advertising
To manufacturers
Increased sales
Creating primary Andselective demand
Mass Communication
Lowers prod. Cost
Helps face
Competition
Builds goodwill
Higher profits
Direct mktingPermanent demand
To consumers
Convenience
Ads to knowledge
Benefits ofDirect
mkting
Products at low Price
Act as reminder
Better quality products
To distributors
Easy selling
Less burden
Increase in sales
And profits
Regular sales
Increases morale
Less bargaining
Selling new products
To society
Increases Standard
Increases Employment
Source of Income to
Media
Increase Exports
Increase NY
Encourage R&D
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IMPORTANCE
Creating awareness
Increase sales
Brand identity & Brand image
Communicate a change
Increase the buzz value
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What Makes an
Ad Effective?
1. If it creates an impression for a product or brand
2. If it influences people to respond
3. If it separates the product or brand from thecompetition
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Economic Benefits of Advertising
yAdvertising can play an important role in theprocess by which an economic system guided bymoral norms contributes to human development.
y It is a necessary part of the functioning of modernmarket economies.
yAdvertising can be a useful tool for sustaininghonest and ethically responsible competition thatcontributes to economic growth in the service ofauthentic human development.
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yAdvertising informs people about the availability ofrationally desirable new products and services andimprovements in existing ones, helping them to makeinformed, contributing to efficiency and the loweringof prices, and stimulating economic progress through
the expansion of business and trade.
yAll of this can contribute to the creation of new jobs,higher incomes and a more decent and humane way of
life for all.
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Benefits of Political Advertising
y Political advertising can make its contribution byinforming people about the ideas and policy proposalsof parties and candidates, including new candidates
not previously known to the public.
y Political advertising can make a contribution todemocracy analogous to its contribution to economic
well being in a market system guided by moral norms.
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Cultural Benefits of AdvertisingyAdvertising can itself contribute to the betterment of
society by uplifting and inspiring people andmotivating them to act in ways that benefit themselvesand others.
yAdvertising can brighten lives simply by being witty,
tasteful and entertaining.
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Moral and Religious Benefits of
Advertising
y In many cases, too, social institutions, including thoseof a religious nature, use advertising to communicatetheir messages.
yMessages of faith, of patriotism, of tolerance, messagesconcerning health and education, constructive andhelpful messages that educate and motivate people in a
variety of beneficial ways.
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THEHARM DONE BY
ADVERTISING
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a) Economic Harms of Advertising
y The practice of "brand"-related advertising can raiseserious problems. Often there are only negligibledifferences among similar products of different brands, and
advertising may attempt to move people to act on the basisof irrational motives ("brand loyalty," status, fashion, "sexappeal," etc.) instead of presenting differences in productquality and price as bases for rational choice.
y
It makes consumers forget about there needs n only thinkabout their wants, which makes them spend more
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b) Harms of Political Advertising
y for example, the costs of advertising limit politicalcompetition to wealthy candidates or groups, or requirethat office-seekers compromise their integrity and
independence by over-dependence on special interests forfunds.
y instead of being a vehicle for honest expositions ofcandidates' views and records,political advertising seeks to
distort the views and records of opponents and unjustlyattacks their reputations.
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c) Cultural Harms of Advertising
y In the competition to attract ever larger audiences anddeliver them to advertisers, communicators can findthemselves tempted in fact pressured, subtly or not so
subtly to set aside high artistic and moral standards andlapse into superficiality, tawdriness and moral squalor
y Communicators also can find themselves tempted toignore the educational and social needs of certain
segments of the audience the very young, the very old,the poor who do not match the demographic patterns(age, education, income, habits of buying and consuming,etc.) of the kinds of audiences advertisers want to reach
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y Exploitation of women by advertisements:-
objects whose purpose is to satisfy others' appetitefor pleasure or for power
the role of woman as wife and mother undervaluedor even ridiculed
the role of women in business or professional lifedepicted as a masculine caricature
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d) Moral and Religious Harms of Advertising
y it deliberately appeals to such motives such as envy, statusseeking and lust.
y some advertisers consciously seek to shock and titillate byexploiting content of a morbid, perverse, pornographicnature.
y the communications media have made pornography andviolence accessible to a vastly expanded audience,
including young people and even children, and a problemwhich at one time was confined mainly to wealthycountries has now begun, via the communications media,to corrupt moral values in developing nations.
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Role ofadvertisingin marketing mixy Advertising is an important tool of marketing mix. Success of whole
marketing programme depends on how promotional tools are coordinatedwith diff. components of marketing mix. Advertising is communication linkb/w buyer and seller.
Advertising is used as a tool of marketingcommunication. It is main form of mass comm. Marketing refers to achievingorganizational goals after determining needs and wants of target customersand enhancing the level of customer satisfaction along with selling theproduct.
An effective marketing programme blends allthe components of marketing mix in a coordinated manner so as to achievemarketing objectives.
The inter-relationship of advertising and marketingis studied as under:
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Marketing mix
Product Price Promotion Place
Personal
selling
Advertising sales
promotion
Direct
marketing
Publicity
interactive
marketing
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1. ADVERTISING AND PRODUCT
y Advertising and type of producty Advertising and stage of product life cycle
y Advertising and product quality
y Advertising and branding
y Advertising and packaging
y Advertising and product positioning
1. ADVERTISING AND PRICEy If price is high then high-status appeal
y If price is low then economy-appeal
1. ADVERTISING AND PLACE (DISTRIBUTION)
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4.ADVERTISING AND OTHER PROMOTIONAL TOOLS
y Sales promotion
y Personal selling
y Publicity
y Direct marketing
5.ADVERTISING AND COMPETITION
6.ADVERTISING AND MARKET SEGMENTATIONy Concentrated marketing
y Differentiated marketing
y Undifferentiated marketing
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Aspects
of
Advertising1/31/2011 63
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Making Consumers Aware of
Products and Services
Providing Consumers WithInformation to Use to Make Purchase
Decisions
Encouraging Consumption and
Fostering Economic Growth
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(i) Effect on production cost and prices Advertising as an expense that increases the cost of products
Increased differentiation (ii) Effect on distribution cost
(iv) Effect on demand
(v) Effect on competition
Barriers to entry
Economies of scale
(vi) Effect on consumers choice
Differentiation
Brand Loyalty (vii) Effect on business cycles
(viii) Effect on national income
(ix) Effect on employment
(x) Effect on standard of living
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Economic objections
(i) No increase in real demand
(ii)Reduces consumers choice
(iii)Wastage of natural resources(iv)Creates monopoly
(v) Increase in cost and price
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Advertising as a part of firms marketing
effort operates in the society. It has totherefore follow the social norms.
Key areas of debate regarding societyand advertising are:
Deception Manipulation
Taste
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Deception: it refers not only to the
information content in advertising but may
also arise from misplace emphasis in
presentations.
According to federal trade commissionof the USA-
Advertising as a whole must not create a
misleading impression although every
statement, separately considered, may be
literally truthful
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Manipulation :- The freedom of choice
of consumers is restricted by the powerof advertising since it can manipulatebuyers into making a decision againsttheir will or interest.
Manipulation is done throughemotional appeals. These companiescan utilize advanced and very scientificadvertising techniques and thus makean impression on consumers.
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Taste:- Sometimes ads areoffensive, tasteless, irritating,
boring and so on.
a) Sources of distaste
b) Sexual Appeals
c) Shock advertising
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Untruthful or deceptive advertising
y General mistrust of ads
y Deliberately untruthful or misleading vs. pufferyy Problems often more at local level rather than national
Effect on culture
Effect on media
Materialism
Effect on children
Stereotyping in advertising
y Portrayal of women
y Gender stereotyping
y Portrayal of women as sex objectsy Role portrayal of women to reflect changing role in society
y Blacks and Hispanics
y Gays
y Elderly
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Social objections(i) Control of advertisers over media
(ii) Wrong appeals(iii) Create artificial product differentiation
(iv) Moral degradation
(v) Other objections
Some examples of the Advertisements with socialaspects:-Grow-more-trees advertisementsDrink milk
Eat healthy food, eat eggsMothers milk is best for the babySay no to drugs every timeGet your child vaccinations in times
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(III) Legal aspects of advertising
The government in each country has to
make sure that advertisements appearing
do not flaunt of their rules & regulations.It should not:-
show anti-national feelings
contain misleading information aboutthe product
Violate government rules
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Some examples of the
Advertisements with legal aspects:-
Get your car checked for pollution
Drinks & driving do not mixWeight, price, manufacturing
date, date of expiry should be
mentioned on the packing case
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Ethics DefinedEthics Defined
System of moral principles Good or bad Right or wrong
Fundamentally rooted in what peoplebelieve to be right or wrong.
Beliefs stem from the systematising, defendingand recommending concept of... Behaviour
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Ethics are the moral standards againstwhich behavior is judged
Key areas of debate regarding ethics andadvertising are:
y Truth in advertising
yAdvertising to childrenyAdvertising controversial products
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Ethics in Strategy Formulation
Advertisement persuade the people to
buy their products.
It sometime entertain or educate the
people.
Some advertisers use slippery tactics.
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Advertising to ChildrenIssues
Advertising promotes superficiality andmaterialism in children.
Children are inexperienced and easy
prey.Persuasion to children creates child-
parent conflicts.
What does the literature say about kidsabilities to process persuasive
information?
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Advertising Controversial Products
Critics question the targeting of minorities.
Tobacco, alcohol, gambling and lotteries
are product categories of greatest concern.
How does the concept of primary demand
provide insights here?
What does the literature say about
advertisings impact on these productcategories?
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What do you t
hink?
What do you t
hink?
Advertising = Market Power
Advertising = Market Information
Or both?
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yAdvertising affectsconsumer preferencesand tastes, changesproduct attributes, anddifferentiates theproduct fromcompetitive offerings.
yAdvertising informsconsumers aboutproduct attributes butdoes not change theway they value thoseattributes.
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What do you think is the biggest benefit of
advertising?
What do you think is the biggest problem
with advertising?
What do you think is the best example of
bad advertising?What do you think is the best example of
good advertising?
Big QuestionsBig Questions
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