A) What is Advertising
Advertising work as a source of communication between the customer ( the user
of product and services ) and the advertiser.
Advertising is the means of informing and influencing a vast audience to buy
a product or service through visual (seen), oral, or written messages.
Advertising is the action of calling public attention.
Definition of Advertising
According to Kotler - Advertising is any paid form of non-personal presentation
( not for an individual ) & promotion of ideas, goods, or services by an
identified sponsor.
According to Advertising Association of the UK - Advertising is any
communication, usually paid-for, specifically intended to inform and/or
influence one or more people.
B) Requirement of Advertising
A business that wants to step into markets and make a mark definitely needs
advertising. There is hardly any organization that does not advertise these
days. Advertising can be done through various media such as newspaper,
magazines, television, radio, posters, hoardings, billboard and in recent times,
the internet.
C.) Nature of Advertising
1.) Attention seeker
2.) Has a unique selling proposition
3.) Consumer-oriented
4.) Uses various media
5.) Paid Form
1.) Attention seeker
The term ‘advertising‘ brings from the Latin word ‘advertere’ meaning ‘to
turn the attention’ each piece of advertising attempts to hunt the eye of your
audience towards a product or service.
2.) Has a unique selling proposition
Usually, the advertiser needs to have a unique selling proposition (USP). This
unique selling proposition makes the merchandise or service stand out of the
gang. Advertising attempts to influence the audience through different kinds of
appeal.
3.) Consumer-oriented
Advertising expands the knowledge of consumers. With this nature of
advertising, consumers can have the skills to know the products, brands, or
services that exist within the market. Every product or service is made for
consumer satisfaction.
4.) Uses various media
Alone from print platforms like newspapers and magazines, its presence can
now even be seen in audio, visual platforms like films, hoardings, banners, flags,
promotional campaigns, nowadays the internet, web, so on...
5.) Paid Form
Only that attempt of the seller on which he/she has spent some money to
communicate information to the consumer is called advertising. Whatever may
be the media each medium and media vehicle cost the advertiser.
D.) Feature of Advertising
1.) Paid Form
2.) Impersonal Presentation
3.) Speedy and Mass Communication
4.) Target oriented
1.) Paid Form
Only that attempt of the seller on which he/she has spent some money to
communicate information to the consumer is called advertising. Whatever may
be the media each medium and media vehicle cost the advertiser.
For example :- If an editor of some magazine, on his own, publishes news
about a particular product, it will convey to the consumers necessary
information regarding that product but no expenditure has been incurred by the
seller for this publication.
As such, it cannot be called advertising. It may be called propaganda or
publicity. Thus, any information about a product communicated free of cost
cannot be termed as advertising.
2.) Impersonal Presentation
Advertising is non-personal presentation of information. In other words, it is not
for an individual. Advertising cover mass population.
3.) Speedy and Mass Communication
Advertising is a speedy medium of communication. Besides being speedy, its
operational area is extremely vast. In other words, it reaches many people
simultaneously.
4.) Target oriented
Advertisements focused upon the needs and want of target customers and
markets. Advertisements depict target customers and markets
For example :- protein health drinks like Horlicks, Complain, etc., are targeted
towards children, focusing upon parent's emotions, pointing towards excelling
in studies, sports, and beating the competition.
E.) Role and Importance of Advertising
1.) Spreading Awareness
2.) Popularizing a Brand
3.) Increasing Demand
4.) Increased Profit
5.) Maintains the existing market
6.) It acts as salesman
7.) Reduces his burden of job
8.) It is a driving-force in decision-making
1.) Spreading Awareness
Advertisements aware people about new or existing products and services in the
market that will accomplish their needs or solve their problems. A typical
advertisement will tell you what the service or product is, where it can be
bought, for how much, by whom, why it should be bought so on.
2.) Popularizing a Brand
Think about all the famous manufacturers you recognize, which includes coca-
cola or McDonald's. These manufacturers come out of the group and make their
name a brand because they applied the phenomenon of advertising nicely.
3.) Increasing Demand
The target Customer of advertisements is typically big, whether you’re
advertising in Newspapers, magazines, BillBoards, radio, or television. A well-
maid or delivered advertisement will satisfy the public that they should buy the
product or try it at once.
4.) Increased Profit
Advertisements are displayed too large groups of people at the same time. This
means, even with a low conversion rate, many people will end up buying your
products eventually. If you execute your advertisement well, you will get a good
conversion rate and great sales. Increased sales, of course, mean increased
profits.
5.) Maintains the existing market
A forward-looking company or a going concern always has its eyes on future
business prospects that it cannot be going to lose a place in the current position.
A company’s success is shown not only in creating a market but also in its
maintaining and expansion as per the changing environment.
6.) It acts as salesman
Sometimes Advertising has been rightly described as salesmanship. What a
traveling salesman does, he sells goods and services at the doorstep by
convincing the customer. That is why most retail organizations do not employ a
large army of the traveling salesman, as they advertiser their products to their
customers.
7.) Reduces his burden of job
In case the salesman alone is asked to accept the challenge of selling, it goes
very difficult. In the absence of advertising, he is forced to play a double role.
One role is advertising another is selling.
Advertising produces public interest, wins confidence, and promotes strong
faith. With such a ready background, the salesman can perform his task easily.
8.) It is a driving-force in decision-making
In the present day, products and services are complex. There is a large number
of products and services available in the market. The largest possible varieties
of products to such an extent that the consumers are confused to decide which
product will be better for them. Further, each producer claims that his products
are the best.
F.) Objective of Advertising
1.)Introduce a product
2.)Spreading Awareness
3.)Brand building
4.)Maintains the existing market
5.)Acquiring customers
6.) Value Creation
1.) Introduce a product
Advertising is most commonly used for the introduction of a new product in the
market. There are so many advertisements for the latest phone, refrigerator,
television, etc. It does not matter that there is a new or existing company they
all need advertising to launch their new product.
2.) Spreading Awareness
Advertisements aware people about new or existing products and services in the
market that will accomplish their needs or solve their problems. A typical
advertisement will tell you what the service or product is, where it can be
bought, for how much, by whom, why it should be bought so on.
3.) Brand building
Think about all the famous manufacturers you recognize, which includes coca-
cola or McDonald's. These manufacturers come out of the group and make their
name a brand because they applied the phenomenon of advertising nicely.
4.) Maintains the existing market
A forward-looking company or a going concern always has its eyes on future
business prospects that it cannot lose place of the current position. A company’s
success is shown not only in creating a market but also in its maintaining and
expansion as per the changing environment.
5.) Acquiring customers
The objective of advertising is not only to introduce the product or create
awareness about a new product but also to acquire more customers for company
growth. Acquire the customer is not an easy task because they are already
habitual of other products. So the advertiser has to pass a strong message to the
customer to switch customer brands.
6.) Value Creation
Creating value is not an easy task. It requires time and a lot of effort from the
company. The company can sell out their product with the help of
advertisements. But a company that provides a quality product at less price can
create its value in front of its customers.
G.) Scope of Advertising
1.) Message
2.) Media
3.) Organization or Advertiser
4.) Product
5.) Advertising agencies
6.) Competitor
7.) Art as well as science
8.) Activities
1.) Message
Advertising carries a message of the product. The message may be visual or oral
or written. It is designed in a systematic and psychological manner to influence
the prospective customer.
2.) Media
A large number of advertising media, with their respective advantage,
disadvantage, cost, and benefit are available. The selection of media should be
made based on the type of customer to be approached and the capacity of the
organization to bear the cost.
3.) Organization or Advertiser
It is who, which need advertisement to sell this product or services. Because
advertisements create demand, provide messages or information, Influence the
prospective customer, and that all helps a company to sell its product or service.
4.) Product
Advertising covers the attributes of the product & services. Product and services
to be sold have its advantage and disadvantage. The advertiser should show the
attributes of the product and avoid the criticism of a similar product of the
competitors.
5.) Advertising agencies
Advertising agency plays an important role because the advertising agency
makes an effective and innovative advertisement which attracts customers and
customers to get that product. Advertising agencies help people in
understanding the merits and demerits of a company product or service. An
advertising agency is one which makes awareness about the company’s product
through advertisements. He has to be very cautious in selecting his advertising
message and method. This can influence people negatively.
6.) Competitor
A company's product or service is shown as better when compared to a
competitor's. A comparative advertising campaign may involve marketing a
side-by-side comparison of the features of a company's products next to those of
its competitor. It may also feature comparison based on price or Quality.
7.) Art as well as science
Advertising is considered to be an art as well as a science because it has some of
the characteristics of both. It is an art because of the advertiser employs his
creative abilities. It is a science because of no. of media, technology, method,
the technique used to create an advertisement.
8.) Activities
It is a continuous activity. Activities included under advertising and Mass
Communication carrying message developing Impressions and image building
and so on. These activities are performed by the advertiser economically,
effectively and regularly.
H.) Benefits of Advertising
1.) Launch of a new product
2.) Increases markets
3.) Mass sales
4.) Keeps the competitive spirit alive
5.) Creates goodwill
6.) Consumer awareness
1.) Launch of a new product
Advertising plays a highly significant role in the introduction of a new product
on the market. It encourages people to buy or know about a new product.
Without the help of advertising no, one will be aware of the new product
launched in the market.
2.) Increases markets
It helps the manufacturers to expand their markets. It opens the horizons for
new markets for the product or service. Advertisement not only create new
customer but it also helps to expand the new locations for the company.
3.) Mass sales Advertising facilitates mass production to goods that ultimately
results in a raised volume of sales. There is a direct link between advertisements
and sales. The more advertisements we do the more sale will take place.
4.) Keeps the competitive spirit alive
Advertising helps in keeping the competitors at the end. It keeps a regular check
on the performance of the brand or product. Advertising help the company to
come out of the group and help to create its own brand. A perfect advertisement
helps the company to uplift its brand from its competitor.
5.) Creates goodwill
Advertising builds goodwill for a brand. Advertising is a central root through
which the audience gets to know about a brand or product. If a company is
spending on the advertisement, it means they want to make their consumers
aware. This increases the goodwill of a brand.
6.) Consumer awareness
Advertising is educational and dynamic. It educates the customers about the
new products and their diversifications. It helps them to know all the variants
available in the market and which one will fit for them. Every customer has his
taste and it differs from person to person. Advertisement helps them to choose
the right product for them.
I.) Disadvantages of Advertising
1.) Deferred Revenue Expenditure
2.) Misrepresentation of Facts
3.) Increased Cost
4.) Advertising helps to sell bad products
5.) Wastage of National Resources
6.) Survival of Small Companies
1.) Deferred Revenue Expenditure
It is a deferred revenue expenditure, as the results are not immediate. As
advertising occupies a substantial portion of the total budget of the organization.
Hence, investing a large sum in it does not necessarily yield immediate results
thus limiting its utility.
2.) Misrepresentation of Facts
A major drawback of advertising is the misrepresentation of facts regarding
products and services. Advertisers usually misrepresent the unreal/false benefits
of a product. They come to realize later that the description given in the
advertisement was something else whereas the actual product was quite
different from it.
3.) Increased Cost
An organization has to spend a large cost on advertising. It increases the
expense of the products. To meet this expenditure, the price of the product is
increased. No manufacturer of goods or services pays for the advertising
expenses out of his pocket. Therefore advertising leads to an unnecessary rise in
prices of goods or services. Advertising costs are passed on to consumers in the
form of high prices.
4.) Advertising helps to sell bad products
Usually, miracle products that claim they can cure rapidly everything from bad
breath are heavily advertised. Consumer’s choice is greatly affected by the
advertisement. Advertisement reduces competition among the competitor
because not every company can advertise there product. Big industrialists and
manufacturers have a huge budget with them so they can advertise easily.
5.) Wastage of National Resources
Products have their life period. Day by day new products gets launched by the
company with minor changes. These products attract the customer to buy the
new one in place of the old product. Sometimes the product is changed before
the end of its normal period of usefulness.
6.) Survival of Small Companies
The advertisement makes it difficult for a small organization to uplift in society.
They have to struggle a lot to make the customer aware of their products. They
face difficulty to sell their product because another Big player is having a major
share of the market.
Key Player of Advertising
1.) Advertiser
2.) Advertising Agency
3.) Media
4.) Suppliers
5.) Target Audience
6.) Government Authorities
1.) Advertiser
The advertiser is the company whose product or service is going to be promoted
through advertising. The result of the final advertisement is going to benefit him
the most as it's his brand whose future depends upon the nature of the
advertising.
2.) Advertising Agency
Whenever an advertiser will get affected the most positive or negative it's the
advertising agency that plays the greatest role in creating the impact of the
advertisement. In other words, the advertising agency is responsible for the
degree of the effectiveness of the advertisement, the outcome of which will
make or break the brand. Advertising Agency like......
A. CRAYONS ADVERTISING Crayons Banners
Crayons Advertising has expertise in advertising brand management, branding,
film production, events, digital, media, and out of home services.
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B. JWT INDIA
JWT India offers services for brand building, digital transformation, social and
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Clients: Apollo Hospital, Hero Honda, Star news, Standard Chartered, Ministry
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Hero Motors, and Parle etc..
3.) Media
The third player in the advertising world is media. The media player is
composed of the channel of communication that carries a message from the
advertiser to the audience and in the case of the internet it carries a response
from the audience back to the advertiser.
4.) Suppliers
The fourth player in the world of advertising is the group of service
organizations that assist advertisers, advertising agencies, and media in creating
and placing the ads. They provide specialized services like artist, writer,
photographer, directors, producers, freelancer, consultants and so on
5.) Target Audience
All advertising strategies start with the identification of the customer or
prospective customer, the audience of the advertising message. The task of
learning about the target audience is difficult and takes no. of hours to
accomplish. The data-gathering technology that not only reduces the time but
also improves the accuracy of information about the customer.
6.) Government Authorities
The business of advertising is regulated by the government department. The
government adopts law and regulation which have a direct and indirect bearing
on the advertising. Apart from this ASCI (Advertising Standards Council of
India ) and ABC ( Audit Bureau of Circulation ) are also some of the authorities
regulating advertising.
Role of advtg in social and economic development of India
Advertising is a business, an art, an institution, and a cultural
phenomenon.Advertising helps consumers see the possibilities and meanings in
the things that they buy. Advertising also liberates meanings that lie below the
surface.Advertising is part of our every day culture as it is omnipresent. On an
average, we see close to 1,500 ads per day. Therefore their influence on the
cultural consciousness and behavior of the public can’t be denied.In Indian
scenario advertising has a very large influence in the mass media market place
as it pays most of the bills and thus plays a major role in shaping the content
and operation of the mass media in India.Advertising also plays an important
role in the popular Indian culture because it shapes and reflects our life styles. It
is usually the first to reflect social trends. Example: The print advertisement of
Amul.
Advertising promotes a higher quality of goods through the ability of the
consumer to identify a particular manufacturer and thus creating a need for that
manufacturer to maintain quality.Advertising also gives business the ability to
roll-out new products fast enough to offset the costs of creating such
products.Advertising protects industry from government and special control as
it democratizes information to consumers as to what products are
available.Advertising plays two following broad roles in the socio-economic
landscape of a country:
1.Economic roles
2.Social roles
Economic Role of Advertising
Advertising performs an economic function for an advertiser, affect economic
decision of the audience and is an integral part of the whole economic
system.Advertising stimulates demand, educate consumer about new product,
policies, programmes services and organizations, increase competition and
improve standard of life-style by helping to bring new product to the
consumer.Advertising boosts the economy by helping to introduce new products
faster and more effectively to consumer by supporting to achieve the economies
of scale faster and by helping to remove the monopoly of the product.
Social Role of Advertising
Advertising reflects society and society reflects advertising. At social level
advertising plays upon, derives from and contributes to the social texture of a
country.Various social changes are brought about or helped by advertising.
Adult education, family planning and pulse polio campaign are the examples of
few successful social advertising campaign. It makes role models who can
create societal change.Advertising are efficient source of information for
product quality, new material or merchandise, new technology and cost. ƒIt
reduces distribution costs, encourage competition and increases product quality
through brand identity. ƒIt supports mass media to maintain independence from
government, political parties and other special interest groups.
Negative Role of Advertising in the Society
Objectionable and in bad taste – Some critics feel that advertising is
objectionable because the creative effort behind it is not in good taste. Intrusive,
repetitive, unreal, offensive and depressing are some of its unpleasant
features.Excessive fear appeal – The fear appeal in advertising creates anxiety
that is supposed to be subsidized by an available product. Such appeals may
create emotional disturbances in some audience members. Products like fairness
cream, insurance or a germ killing toothpaste all tries to play with the fear
factor.Intrusiveness – An advertisement campaign moves with repetition from a
period of effectiveness to acceptance, to a period of irritation.Manipulation –
Advertisements have the raw power to manipulate consumers. Many
companies have the capacity to obtain large numbers of advertisement
exposures, which is not good for healthy competition.
Effects on Values and Life-Style
Advertising receives wide exposure as it is disseminated through mass media. It
has an effects on what people buy and thus on their activities. It is a persuasive
vehicle which has an impact on the values and life-style of society. The impact
of advertising has its negative as well as positive side.The relationship of
advertising to materialism – Advertising create or foster materialism.
Materialism is defined as the tendency to give undue importance to material
interests. People buy high-end luxury products for social status. It reflects
changing values and attitudes that are created by more significant sociological
forces.Advertising plays role in creating harmful stereotypes of women and
ethnic minorities.Contribution of advertising in promoting harmful products –
The harmful products like tobacco, alcohol are promoted through surrogate
advertising.
Ethics in Advertising
Ethics means a set of moral principles which govern a person’s behavior or how
the activity is conducted. And advertising means a mode of communication
between a seller and a buyer.
Thus ethics in advertising means a set of well defined principles which
govern the ways of communication taking place between the seller and the
buyer. Ethics is the most important feature of the advertising industry. Though
there are many benefits of advertising but then there are some points which
don’t match the ethical norms of advertising.
An ethical ad is the one which doesn’t lie, doesn’t make fake or false claims
and is in the limit of decency.
Nowadays, ads are more exaggerated and a lot of puffing is used. It
seems like the advertisers lack knowledge of ethical norms and principles.
They just don’t understand and are unable to decide what is correct and
what is wrong.
The main area of interest for advertisers is to increase their sales, gain more
and more customers, and increase the demand for the product by presenting a
well decorated, puffed and colorful ad. They claim that their product is the best,
having unique qualities than the competitors, more cost effective, and more
beneficial. But most of these ads are found to be false, misleading customers
and unethical.
The best example of these types of ads is the one which shows evening snacks
for the kids, they use coloring and gluing to make the product look glossy and
attractive to the consumers who are watching the ads on television and convince
them to buy the product without giving a second thought.
Ethics in Advertising is directly related to the purpose of advertising and
the nature of advertising. Sometimes exaggerating the ad becomes necessary
to prove the benefit of the product.
Ethics also depends on what we believe. If the advertisers make the ads on the
belief that the customers will understand, persuade them to think, and then act
on their ads, then this will lead to positive results and the ad may not be called
unethical. But at the same time, if advertisers believe that they can fool their
customers by showing any impractical things like just clicking fingers will
make your home or office fully furnished or just buying a lottery ticket will
make you a millionaire, then this is not going to work out for them and will be
called as unethical.
Recently, the Vetican issued an article which says ads should follow three moral
principles - Truthfulness, Social Responsibility and Upholding Human Dignity.
Generally, big companies never lie as they have to prove their points to various
ad regulating bodies. Truth is always said but not completely. Sometimes its
better not to reveal the whole truth in the ad but at times truth has to be shown
for betterment.
Pharmaceutical Advertising - they help creating awareness, but one
catchy point here is that the advertisers show what the medicine can cure
but never talk about the side effects of that same thing or the risks involved
in intake of it.
Children - children are the major sellers of the ads and the product. They
have the power to convince the buyers. But when advertisers are using
children in their ad, they should remember not to show them alone doing
there work on their own like brushing teeth, playing with toys, or infants
holding their own milk bottles as everyone knows that no one will leave
their kids unattended while doing all these activities. So showing parents
also involved in all activities or things being advertised will be more logical.
Alcohol - till today, there hasn’t come any liquor ad which shows anyone
drinking the original liquor. They use mineral water and sodas in their
advertisements with their brand name. These types of ads are called
surrogate ads. These type of ads are totally unethical when liquor ads are
totally banned. Even if there are no advertisements for alcohol, people will
continue drinking.
Cigarettes and Tobacco - these products should be never advertised as
consumption of these things is directly and badly responsible for cancer and
other severe health issues. These as are already banned in countries like
India, Norway, Thailand, Finland and Singapore.
Ads for social causes - these types of ads are ethical and are accepted by
the people. But ads like condoms and contraceptive pills should be limited,
as these are sometimes unethical, and are more likely to loose morality and
decency at places where there is no educational knowledge about all these
products.
Looking at all these above mentioned points, advertisers should start taking
responsibility of self regulating their ads by:
Design self regulatory codes in their companies including ethical norms,
truth, decency, and legal points
Keep tracking the activities and remove ads which don’t fulfill the codes.
Inform the consumers about the self regulatory codes of the company
Pay attention on the complaints coming from consumers about the product
ads.
Maintain transparency throughout the company and system.
When all the above points are implemented, they will result in:
Making the company answerable for all its activities
Will reduce the chances of getting pointed out by the critics or any
regulatory body.
Will help gain confidence of the customers, make them trust the company
and their products.
