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Essay On Product Advertising Definition

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"Ad", "Advertiser", and "Adverts" redirect here. For the English punk band, see The Adverts. For other uses, see AD (disambiguation) and Advertiser (disambiguation).

Advertising is an audio or visual form of marketingcommunication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea.[1]:465 Sponsors of advertising are often businesses wishing to promote their products or services. Advertising is differentiated from public relations in that an advertiser pays for and has control over the message. It differs from personal selling in that the message is non-personal, i.e., not directed to a particular individual.[1]:661,672 Advertising is communicated through various mass media,[2] including traditional media such as newspapers, magazines, television, radio, outdoor advertising or direct mail; and new media such as search results, blogs, social media, websites or text messages. The actual presentation of the message in a medium is referred to as an advertisement or "ad" for short.

Commercial ads often seek to generate increased consumption of their products or services through "branding", which associates a product name or image with certain qualities in the minds of consumers. On the other hand, ads that intend to elicit an immediate sale are known as direct-response advertising. Non-commercial entities that advertise more than consumer products or services include political parties, interest groups, religious organizations and governmental agencies. Non-profit organizations may use free modes of persuasion, such as a public service announcement. Advertising may also be used to reassure employees or shareholders that a company is viable or successful.

Modern advertising originated with the techniques introduced with tobacco advertising in the 1920s, most significantly with the campaigns of Edward Bernays, considered the founder of modern, "Madison Avenue" advertising.[3][4]

Worldwide spending on advertising in 2015 amounted to an estimated US$529.43 billion.[5] Advertising's projected distribution for 2017 was 40.4% on TV, 33.3% on digital, 9% on newspapers, 6.9% on magazines, 5.8% on outdoor and 4.3% on radio.[6] Internationally, the largest ("big four") advertising-agency groups are Interpublic, Omnicom, Publicis, and WPP.[7]

In Latin, advertere means "to turn towards".[8]

History[edit]

Main article: History of advertising

Egyptians used papyrus to make sales messages and wall posters.[9]Commercial messages and political campaign displays have been found in the ruins of Pompeii and ancient Arabia. Lost and found advertising on papyrus was common in ancient Greece and ancient Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this day in many parts of Asia, Africa, and South America. The tradition of wall painting can be traced back to Indian rock art paintings that date back to 4000 BC.[10]

In ancient China, the earliest advertising known was oral, as recorded in the Classic of Poetry (11th to 7th centuries BC) of bamboo flutes played to sell confectionery. Advertisement usually takes in the form of calligraphic signboards and inked papers. A copper printing plate dated back to the Song dynasty used to print posters in the form of a square sheet of paper with a rabbit logo with "Jinan Liu's Fine Needle Shop" and "We buy high-quality steel rods and make fine-quality needles, to be ready for use at home in no time" written above and below[11] is considered the world's earliest identified printed advertising medium.[12]

In Europe, as the towns and cities of the Middle Ages began to grow, and the general population was unable to read, instead of signs that read "cobbler", "miller", "tailor", or "blacksmith", images associated with their trade would be used such as a boot, a suit, a hat, a clock, a diamond, a horse shoe, a candle or even a bag of flour. Fruits and vegetables were sold in the city square from the backs of carts and wagons and their proprietors used street callers (town criers) to announce their whereabouts. The first compilation of such advertisements was gathered in "Les Crieries de Paris", a thirteenth-century poem by Guillaume de la Villeneuve.[13]

In the 18th century advertisements started to appear in weekly newspapers in England. These early print advertisements were used mainly to promote books and newspapers, which became increasingly affordable with advances in the printing press; and medicines, which were increasingly sought after as disease ravaged Europe. However, false advertising and so-called "quack" advertisements became a problem, which ushered in the regulation of advertising content.

19th century[edit]

This article or section appears to contradict itself. Please see the talk page for more information.(January 2017)

Thomas J. Barratt from London has been called "the father of modern advertising".[14][15][16] Working for the Pears Soap company, Barratt created an effective advertising campaign for the company products, which involved the use of targeted slogans, images and phrases. One of his slogans, "Good morning. Have you used Pears' soap?" was famous in its day and into the 20th century.[17][18]

Barratt introduced many of the crucial ideas that lie behind successful advertising and these were widely circulated in his day. He constantly stressed the importance of a strong and exclusive brand image for Pears and of emphasizing the product's availability through saturation campaigns. He also understood the importance of constantly reevaluating the market for changing tastes and mores, stating in 1907 that "tastes change, fashions change, and the advertiser has to change with them. An idea that was effective a generation ago would fall flat, stale, and unprofitable if presented to the public today. Not that the idea of today is always better than the older idea, but it is different – it hits the present taste."[15]

As the economy expanded across the world during the 19th century, advertising grew alongside. In the United States, the success of this advertising format eventually led to the growth of mail-order advertising.

In June 1836, French newspaper La Presse was the first to include paid advertising in its pages, allowing it to lower its price, extend its readership and increase its profitability and the formula was soon copied by all titles. Around 1840, Volney B. Palmer established the roots of the modern day advertising agency in Philadelphia. In 1842 Palmer bought large amounts of space in various newspapers at a discounted rate then resold the space at higher rates to advertisers. The actual ad – the copy, layout, and artwork – was still prepared by the company wishing to advertise; in effect, Palmer was a space broker. The situation changed in the late 19th century when the advertising agency of N.W. Ayer & Son was founded. Ayer and Son offered to plan, create, and execute complete advertising campaigns for its customers. By 1900 the advertising agency had become the focal point of creative planning, and advertising was firmly established as a profession.

[19] Around the same time, in France, Charles-Louis Havas extended the services of his news agency, Havas to include advertisement brokerage, making it the first French group to organize. At first, agencies were brokers for advertisement space in newspapers. N. W. Ayer & Son was the first full-service agency to assume responsibility for advertising content. N.W. Ayer opened in 1869, and was located in Philadelphia.[19]

20th century[edit]

Advertising increased dramatically in the United States as industrialization expanded the supply of manufactured products. In order to profit from this higher rate of production, industry needed to recruit workers as consumers of factory products. It did so through the invention of mass marketing designed to influence the population's economic behavior on a larger scale.[20] In the 1910s and 1920s, advertisers in the U.S. adopted the doctrine that human instincts could be targeted and harnessed – "sublimated" into the desire to purchase commodities.[21]Edward Bernays, a nephew of Sigmund Freud, became associated with the method and is sometimes called the founder of modern advertising and public relations.[22] Bernays claimed that:

"[The] general principle, that men are very largely actuated by motives which they conceal from themselves, is as true of mass as of individual psychology. It is evident that the successful propagandist must understand the true motives and not be content to accept the reasons which men give for what they do."[23]

In other words, selling products by appealing to the rational minds of customers (the main method used prior to Bernays) was much less effective than selling products based on the un-conscious desires that Bernays felt were the true motivators of human action.

In the 1920s, under Secretary of CommerceHerbert Hoover, the American government promoted advertising. Hoover himself delivered an address to the Associated Advertising Clubs of the World in 1925 called 'Advertising Is a Vital Force in Our National Life."[24] In October 1929, the head of the U.S. Bureau of Foreign and Domestic Commerce, Julius Klein, stated "Advertising is the key to world prosperity."[25] This was part of the "unparalleled" collaboration between business and government in the 1920s, according to a 1933 European economic journal.[26]

The tobacco companies became major advertisers in order to sell packaged cigarettes.[27] The tobacco companies pioneered the new advertising techniques when they hired Bernays to create positive associations with tobacco smoking.[3][4]

Advertising was also used as a vehicle for cultural assimilation, encouraging workers to exchange their traditional habits and community structure in favor of a shared "modern" lifestyle.[28] An important tool for influencing immigrant workers was the American Association of Foreign Language Newspapers (AAFLN). The AAFLN was primarily an advertising agency but also gained heavily centralized control over much of the immigrant press.[29][30]

At the turn of the 20th century, there were few career choices for women in business; however, advertising was one of the few. Since women were responsible for most of the purchasing done in their household, advertisers and agencies recognized the value of women's insight during the creative process. In fact, the first American advertising to use a sexual sell was created by a woman – for a soap product. Although tame by today's standards, the advertisement featured a couple with the message "A skin you love to touch".[31]

In the 1920s psychologists Walter D. Scott and John B. Watson contributed applied psychological theory to the field of advertising. Scott said, "Man has been called the reasoning animal but he could with greater truthfulness be called the creature of suggestion. He is reasonable, but he is to a greater extent suggestible".[32] He demonstrated this through his advertising technique of a direct command to the consumer.

On the radio from the 1920s[edit]

In the early 1920s, the first radio stations were established by radio equipment manufacturers and retailers who offered programs in order to sell more radios to consumers. As time passed, many non-profit organizations followed suit in setting up their own radio stations, and included: schools, clubs and civic groups.[33]

When the practice of sponsoring programs was popularized, each individual radio program was usually sponsored by a single business in exchange for a brief mention of the business' name at the beginning and end of the sponsored shows. However, radio station owners soon realized they could earn more money by selling sponsorship rights in small time allocations to multiple businesses throughout their radio station's broadcasts, rather than selling the sponsorship rights to single businesses per show.[citation needed]

Commercial television in the 1950s[edit]

In the early 1950s, the DuMont Television Network began the modern practice of selling advertisement time to multiple sponsors. Previously, DuMont had trouble finding sponsors for many of their programs and compensated by selling smaller blocks of advertising time to several businesses. This eventually became the standard for the commercial television industry in the United States. However, it was still a common practice to have single sponsor shows, such as The United States Steel Hour. In some instances the sponsors exercised great control over the content of the show – up to and including having one's advertising agency actually writing the show.[citation needed] The single sponsor model is much less prevalent now, a notable exception being the Hallmark Hall of Fame.[citation needed]

Cable television from the 1980s[edit]

The late 1980s and early 1990s saw the introduction of cable television and particularly MTV. Pioneering the concept of the music video, MTV ushered in a new type of advertising: the consumer tunes in for the advertising message, rather than it being a by-product or afterthought. As cable and satellite television became increasingly prevalent, specialty channels emerged, including channels entirely devoted to advertising, such as QVC, Home Shopping Network, and ShopTV Canada.[citation needed]

On the Internet from the 1990s[edit]

Main article: Online advertising

With the advent of the ad server, online advertising grew, contributing to the "dot-com" boom of the 1990s.[34] Entire corporations operated solely on advertising revenue, offering everything from coupons to free Internet access. At the turn of the 21st century, some websites, including the search engineGoogle, changed online advertising by personalizing ads based on web browsing behavior. This has led to other similar efforts and an increase in interactive advertising.[35]

The share of advertising spending relative to GDP has changed little across large changes in media since 1925. In 1925, the main advertising media in America were newspapers, magazines, signs on streetcars, and outdoor posters. Advertising spending as a share of GDP was about 2.9 percent. By 1998, television and radio had become major advertising media; by 2017, the balance between broadcast and online advertising had shifted, with online spending exceeding broadcast.[36] Nonetheless, advertising spending as a share of GDP was slightly lower – about 2.4 percent.[37]

Guerrilla marketing involves unusual approaches such as staged encounters in public places, giveaways of products such as cars that are covered with brand messages, and interactive advertising where the viewer can respond to become part of the advertising message. This type of advertising is unpredictable, which causes consumers to buy the product or idea.[38] This reflects an increasing trend of interactive and "embedded" ads, such as via product placement, having consumers vote through text messages, and various campaigns utilizing social network services such as Facebook or Twitter.[39]

The advertising business model has also been adapted in recent years.[when?][clarification needed] In media for equity, advertising is not sold, but provided to start-up companies in return for equity. If the company grows and is sold, the media companies receive cash for their shares.

Domain name registrants (usually those who register and renew domains as an investment) sometimes "park" their domains and allow advertising companies to place ads on their sites in return for per-click payments. These ads are typically driven by pay per click search engines like Google or Yahoo, but ads can sometimes be placed directly on targeted domain names through a domain lease or by making contact with the registrant of a domain name that describes a product.[40] Domain name registrants are generally easy to identify through WHOIS records that are publicly available at registrar websites.[41]

Classification[edit]

Advertising may be categorized in a variety of ways, including by style, target audience, geographic scope, medium, or purpose.[2]:9–15 For example, in print advertising, classification by style can include display advertising (ads with design elements sold by size) vs. classified advertising (ads without design elements sold by the word or line). Advertising may be local, national or global. An ad campaign may be directed toward consumers or to businesses. The purpose of an ad may be to raise awareness (brand advertising), or to elicit an immediate sale (direct response advertising).

Traditional media[edit]

Virtually any medium can be used for advertising. Commercial advertising media can include wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, web popups, skywriting, bus stop benches, human billboards and forehead advertising, magazines, newspapers, town criers, sides of buses, banners attached to or sides of airplanes ("logojets"), in-flight advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, doors of bathroom stalls, stickers on apples in supermarkets, shopping cart handles (grabertising), the opening section of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising.[42]

Television
Television advertising is one of the most expensive types of advertising; networks charge large amounts for commercial airtime during popular events. The annual Super Bowlfootball game in the United States is known as the most prominent advertising event on television – with an audience of over 108 million and studies showing that 50% of those only tuned in to see the advertisements.[44][45] During the 2014 edition of this game, the average thirty-second ad cost US$4 million, and $8 million was charged for a 60-second spot.[44]Virtual advertisements may be inserted into regular programming through computer graphics. It is typically inserted into otherwise blank backdrops[46] or used to replace local billboards that are not relevant to the remote broadcast audience.[47] More controversially, virtual billboards may be inserted into the background where none exist in real-life. This technique is especially used in televised sporting events. Virtual product placement is also possible.[48][49] An infomercial is a long-format television commercial, typically five minutes or longer. The word "infomercial" is a portmanteau of the words "information" and "commercial". The main objective in an infomercial is to create an impulse purchase, so that the target sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. Infomercials describe, display, and often demonstrate products and their features, and commonly have testimonials from customers and industry professionals.[citation needed]
Radio
Radio advertisements are broadcast as radio waves to the air from a transmitter to an antenna and a thus to a receiving device. Airtime is purchased from a station or network in exchange for airing the commercials. While radio has the limitation of being restricted to sound, proponents of radio advertising often cite this as an advantage. Radio is an expanding medium that can be found on air, and also online. According to Arbitron, radio has approximately 241.6 million weekly listeners, or more than 93 percent of the U.S. population.[citation needed]
Online
Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Online ads are delivered by an ad server. Examples of online advertising include contextual ads that appear on search engine results pages, banner ads, in pay per click text ads, rich media ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam.[citation needed] A newer form of online advertising is Native Ads; they go in a website's news feed and are supposed to improve user experience by being less intrusive. However, some people argue this practice is deceptive.[50]
Domain names
Domain name advertising is most commonly done through pay per click web search engines, however, advertisers often lease space directly on domain names that generically describe their products.[40] When an Internet user visits a website by typing a domain name directly into their web browser, this is known as "direct navigation", or "type in" web traffic. Although many Internet users search for ideas and products using search engines and mobile phones, a large number of users around the world still use the address bar. They will type a keyword into the address bar such as "geraniums" and add ".com" to the end of it. Sometimes they will do the same with ".org" or a country-code Top Level Domain (TLD such as ".co.uk" for the United Kingdom or ".ca" for Canada). When Internet users type in a generic keyword and add .com or another top-level domain (TLD) ending, it produces a targeted sales lead.[51] Domain name advertising was originally developed by Oingo (later known as Applied Semantics), one of Google's early acquisitions.[52]
Product placements
Covert advertising is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo. Another example of advertising in film is in I, Robot, where main character played by Will Smith mentions his Converse shoes several times, calling them "classics", because the film is set far in the future. I, Robot and Spaceballs also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded, which as a result contained many scenes in which Cadillac cars were used. Similarly, product placement for Omega Watches, Ford, VAIO, BMW and Aston Martin cars are featured in recent James Bond films, most notably Casino Royale. In "Fantastic Four: Rise of the Silver Surfer", the main transport vehicle shows a large Dodge logo on the front. Blade Runner includes some of the most obvious product placement; the whole film stops to show a Coca-Cola billboard.[citation needed]
Print
Bronze plate for printing an advertisement for the Liu family needle shop at Jinan, Song dynasty China. It is considered the world's earliest identified printed advertising medium.
Edo period LEL flyer from 1806 for a traditional medicine called Kinseitan.
Advert for Guy's Tonic Wellcome in 1900's
1916 Ladies' Home Journal version of the famous ad by Helen Lansdowne Resor of the J. Walter Thompson Agency
Advertisement for a live radio broadcast, sponsored by a milk company, Adohr milk, and published in the Los Angeles Times on May 6, 1930
An advertisement for a diner. Such signs are common on storefronts.
Paying people to hold signs is one of the oldest forms of advertising, as with this human billboard.
A taxicab with an advertisement for Daikin in Singapore. Buses and other vehicles are popular media for advertisers.
A television commercial being filmed in 1948.

Here is a compilation of essays on ‘Advertising’ for class 8, 9, 10, 11 and 12. Find paragraphs, long and short essays on ‘Advertising’ especially written for school and college students.

Essay on Advertising

Essay Contents:

  1. Essay on the Definition of Advertising
  2. Essay on the Objectives of Advertising
  3. Essay on the Salient Features of Advertising
  4. Essay on the Classifications of Advertising
  5. Essay on the Steps in Advertising Process
  6. Essay on the Importance of Advertising
  7. Essay on the Benefits of Advertising
  8. Essay on the Criticisms of Advertising
  9. Essay on the Regulation of Advertising

Essay # 1. Definition of Advertising:

The term has been defined differently by differ­ent authorities but more or less convey the same idea.

According to W.J. Stanton, “Advertising consists of all the activities involved in presenting to group, a non-personal, oral or visual, openly-sponsored message regarding a product or service or idea. The message called an advertisement is disseminated through one or more media and is paid for by an identified sponsor.”

According to American Marketing Association, “Any paid form of non-personal communication of ideas, goods, or services by business firms is identified in the advertising message intended to lead to a sale immediately or eventually”. Advertising is a specific attempt to popularise a specific product or service at a certain cost.

According to Prof. Albert Fray, advertising involves “the pre­paration of visual and oral messages and their dissemination through paid media for the purpose of making people aware of and favourably inclined towards a product, brand, service, institution, idea or point of view.”

Thus, it can be stated that advertising is the principal method of demand creation. Advertising is also called impersonal salesmanship by means of which sales message is conveyed to millions of buyers through printed words or symbols for influencing the consumer’s choice of goods in the market.

Of the four steps in demand creation:

(i) Drawing attention,

(ii) Stimula­ting interest,

(iii) Arousing desire, and

(iv) Securing action, advertising is effective in the first three steps, while salesmanship goes in for secu­ring action.


Essay # 2. Objectives of Advertising:

Advertising is aimed at selling something, whether a product, or service, or an idea. The primary object of advertising is to make the consumers aware as regards the availability and usefulness of a particular product or service. It seeks to establish communication between the producer/seller and the consumer.

The objects of advertising, as listed by Mathews, Buzzel, Levitt and Frank, are as follows:

(a) To make an immediate sale;

(b) To build primary demand;

(c) To introduce a price deal;

(d) To inform about a product’s availability;

(e) To build brand recognition or image and brand insistence or loyalty;

(f) To help salesmen by building an awareness of a product among the retailers/consumers;

(g) To create a reputation for service, reliability or research strength;

(h) To increase one’s market share;

(i) To modify existing product appeals and buying motives;

(j) To inform about new product’s availability, features, or price;

(k) To increase the frequency of use of a product;

(l) To increase the number or quality of retail outlets;

(m) To build an over-all company image;

(n) To effect immediate buying action;

(o) To reach new areas or new segments of peculation within existing areas; and

(p) To develop overseas markets.


Essay # 3. Salient Features of Advertising:

The concept, content, and scope of advertising reflect the following salient features:

1. It is a paid form of non-personal communication of ideas car goods or services by the business firms.

2. It is a specific attempt to popularise a specific product or service.

3. It is a record containing visual or oral messages through which an advertiser wants to convey.

4. It is a kind of ‘salesmanship in print’ as it persuades a buyer to possess by drawing his attention, stimulating his interest, and arousing his desire.

5. It is one of the channels of information for the consumers and customers.


Essay # 4. Classifications of Advertising:

Advertising may be broadly classified from the points of view: business aims, coverage, users, and nature of appeal.

This is condensed in a chart below:

(i) Primary Demand Advertising:

Where advertising is aimed at introducing a product or service which has been newly developed or invented, it is known as primary demand advertising. Such advertisements are directed to­wards a class of customers for products like cars, washing machines, refri­gerators, T.V., or watches. This is also described as selective demand advertising.

(ii) Product or Institutional Advertising:

Where advertising seeks to cash in on the popular brand of a product, such as Dalda, Amul Milk or Butter, Red Label Brooke Bond Tea, it is called product advertising. On the other hand, where it is aimed at capitalising on the name of the manufacturer, who is reputed to produce quality goods, such as Tata, D.C.M., Bombay Dyeing, Bajaj, it is known as institutional advertising.

Product advertising is also called selective or brand advertising.

Institutional advertising is sponsored by the producer or manufacturer. Its purpose is to create goodwill towards the institution. This may be sub-classified into three heads like patronage advertising, public relations advertising, and public service advertising.

(iii) Co-Operative Advertising:

Where advertising is sponsored jointly by the manufacturers, wholesalers or dealers and its cost is borne by them, it is cooperative advertising. This type of advertisement is found in the case of products like electric fans, T.V. sets, etc.

(iv) Commercial Advertising:

Where advertising aims at increasing the sales of any product or service, it becomes business or commercial adverti­sing. It may be selective depending upon the product types such as farm products, professional doctors, engineers, architects, and accountants also fall under this classification.

(v) Non-Commercial Advertising:

This is undertaken by charitable institutions for raising public donations or funds to meet certain special purposes. 

(vi) Local/National/International Advertising:

The advertising circula­ted to a defined area is local advertising. National advertising, meant for the entire national, is limited within the boundaries of a country. International advertising covers either the whole globe or continent or a specific foreign country.

(vii) Consumers/Industrial/Trade Advertising:

The advertisements relating to domestic or household items fall under consumers advertising. The adver­tisements relating to the products which are usually consumed by the indus­tries are industrial advertising and the trade advertising relates to a particular trade of wholesaling or retailing.

(viii) Rational and Emotional Advertising:

These categories are not exa­ctly the types of advertisements. These fall within the categories of pro­duct or brand advertising and are aimed at selective demand advertising.

Rational advertising, while explaining the medicinal quality or other cha­racteristics of a product, is done for cosmetic and perfumes. Emotional advertising attempts to focus the image of a product by attaching an emoti­onal feeling of at consumer. For example, the advertisement of a Lux-Soap, being, used by a glamourous movie star, raises emotions in the minds of younger girls or housewives.


Essay # 5. Steps in Advertising Process:

The advertising process consists of the following steps and each of them virtually is a decision-making process:

1. Defining Advertising Goals

2. Preparing the Advertising Budget

3. Designing the Message

4. Selecting the Media

5. Timing of Advertising

6. Getting the Decisions Implemented  and

7. Evaluating the Effectiveness of Advertising.

(1) Defining Advertising Goals:

There are many objectives, some are immediate, e.g. to increase the sales or to retain the market, while some ultimate, e.g. creating a new demand, fighting out a competitor, etc.

There are other types of goals also—calling the attention of the buyers or dealers to a new price structure or a new showroom or to build morale of the sales force (because if there is extensive advertisement the sales force is strengthened to mate approaches to the buyers).

(2) Preparing the Advertising Budget:

The concern must pre­pare a specific budget for advertising expenses. This is a vital step in the process.

The amount of budget depends on various factors:

(a) The scale of production.

(b) The plant capacity.

(c) The availability of the working capital.

(d) Whether it is a budget for a routine advertisement or a campaign advertisement and what type of campaign.

The common methods of preparing advertising budget are:

(a) How much money the con­cern can afford to pay.

(b) How much percentage of the total sales revenue shall be spent on advertisement,

(c) To spend as much money as competitors are spending,

(d) To spend as much money as will be required to fulfill the ultimate objective. Different mathematical models are prepared for the purposes.

(3) Designing the Message:

There is invariably a message in every advertisement copy which attracts the readers. As time passes new types of copies have to be created for new excitements and to fit in changing circumstances. The copy must have a scientific ‘lay out’ with a caption or heading and then the text.

Generally, pictures are used because pictures are more attractive and explanatory than words. Pictures may be of the product (with their outer and inner views), of the factory, of a user, of a popular figure like a film artist or a player, etc. recommending the product, etc. Different colours are used, whenever possible.

An advertisement copy must satisfy three characteristics: “desirability, exclusiveness and believability”. Advertising agencies engage expert copy writers who have imagination and knowledge and commercial artists for the purpose. Every copy shall create a ‘value’ in the minds of the readers which will have lasting effect.

The different ‘values’ are: curio­sity, instinct, emotion, memorising, suggestion, etc. David Ogilvy, a founder of one of the biggest advertising agencies of the world, said “To attract women, show babies or men; to attract men, show women”. The copy must be written from readers’ viewpoint with precision, brevity and without any exaggeration. Each copy must have originality and not, imitating others’ copies.

(4) Selecting the Media:

Perhaps it is more important to select the media or channels through which the message will be comm­unicated. Media selection is a specialist’s job and most of the advertisers depend on advertising agencies who appoint specialised media managers, each manager is expert in a particular kind of medium.

The different media are: newspapers, journals, posters, handbills, cinema slides, hoarding, radio, television, etc. Besides, there are calendars, diaries, various kinds of small gifts in the forms of stationery goods like paperweight, penholders, desk calendars, etc. All these collectively are known as publicity media, not exactly advertising media.

A number of media can be used simultaneously.

Everything depends on three fac­tors:

(a) What is the nature of the product or services,

(b) What is the nature of the potential, buyers,

(c) The budget of expenditure which can be afforded.

Direct mailing of catalogues and price lists (as mostly done for mail order business) is an effective device. For a very big concern with a wide range of products and varying market, computer is used for decision-making in media selection and mathematical models are prepared.

(5) Timing of Advertising:

Advertising must be done at the proper time when there is a buying spree among the customers in case of fashionable goods or gadgets or at the beginning of the season in case of seasonal products. Advertisements of clothes, transistors, hotels, etc., are mostly found just before the Pujas or Diwali as people have the ‘bonus’ money to spend and people are compelled to make purchases on social obligations.

(6) Getting the Decisions Implemented:

All the decisions as discussed above must have to be implemented. Some firms have a separate publicity department and appoint publicity offi­cers to look after the execution of the decisions. In majority cases publicity officers are not asked to execute the decisions but to participate, as experts, in the decision-making process but the implementation is done through Advertising Agents.

In many cases, the producer prepares the budget and determines the goals but leaves the remaining process of advertising in the hands of the advertising agents, who take commission on the total expenditure as well as service charges and direct costs (e.g., block-making, printing, paper, or other materials used, etc.).

(7) Evaluating the Effectiveness of Advertising:

This is the Controlling function of the advertising process. Such eva­luation is necessary because on the basis of experience the next phase of advertising will begin. If necessary, modifications have to be made.

There are various methods of such evaluation:

(a) Opinion research:

Poten­tial buyers are individually asked of their opinions about or reactions to the advertisements released,

(b) Recognition and recall tests:

Potential buyers are tested as to whether they remember the advertisements and were impressive to them,

(c) Keying:

Different addresses of the concern are given in the copies of advertisement or coupons are attached to the copies which have to be filled in, detached and sent to the advertiser for further enqui­ries or orders.

It is watched, orders or enquiries are coming in what number to what addresses or coupons are being sent detached from which newspapers and journals. The advertiser gets an idea which media are more effective. Advertisements will be repeated or intensified through the more effective media.


Essay # 6. Importance of Advertising:

It is advertising that enab­les the businessman to make continuous mass production for the wide international market. Not only does it convey sales information to potential buyers far and near, it contains positive force determining the action of buyers as well. It applies a veiled method of persuasion to secure patronage for the product. Advertising ensures the introduction and acceptance of a new product in the market.

In the case of existing products, advertising has paved the way for a steadily rising flow of goods to the market. Advertising is a potent and recognised means of sales promotion. When used effectively, it benefits the producers, traders, consumers and country’s economy.

In the modern business world, it is one of the important functions that increa­ses sales, persuades dealers, increases per-capita income, enhances receptiveness of a new product or model, eliminates seasonal fluctuations and raises the standard of living. The relatively insignificant amount with which this marvellous result can be secured has made advertising a boon to the businessmen.

(i) Market Expansion:

Advertising enables the manufac­turer to expand the market for products by creating new markets and retain­ing existing ones. It carries repeated sales messages to millions of buyers and brings customers from remote or inaccessible areas.

(ii) Direct Appeal to Consumers:

Through advertising, manufacturers can appeal directly to consumers and influence their buying habits. Consequ­ently, buyers and producers are freed from the clutches of middlemen.

(iii) Buyers Education in Using New Products:

It helps to overcome old habits of the consumers and to educate them in the use of new products, or in the new use of existing products.

(iv) Removal of Seasonal Fluctuations:

Seasonal fluctuations in demand are eliminated by advertising. Because of creating a steady demand, it has made continuous production more certain and effective.

(v) Reduction in Selling Price:

Advertising speeds up sales and pro­duction turnover. Through a large volume of business, it lowers both selling and production costs. As a result, advertising in many cases has reduced the selling price of goods.

(vi) Price Stability:

Manufacturers invariably maintain resale prices of advertised products. Advertisement of resale prices permits to keep prices within reasonable limits; and buyers are assured of more or less the same price, wherever they may purchase goods.

(vii) Quality Products:

Advertising is usually made under a particular brand name, otherwise it becomes too expensive for the business. Because of this practice, advertising tends to create confidence in buyers about the quality of advertised products.

(viii) Promotion of Goodwill:

It acquaints the people with the name of producer and guides them to improve living through better buying. Adverti­sing leads to the establishment of producer’s goodwill which results in repeat sales.

(ix) Freedom of Press:

Advertising helps to maintain the free and independent status of the press. As newspapers are mostly financed by adver­tising income, they need not be tied down on financial grounds to any party or group.

(x) Higher Standard of Living:

Advertising promotes greater consump­tion, increased production and larger employment. The effect of these improvements is inevitably reflected in lower prices, better quality and greater variety of goods to the consumer. Advertising contributes towards a fuller way of life through happy and contented living.


Essay # 7. Benefits of Advertising:

Advertising benefits a variety of sections of society, such as:

(i) manufacturers/producers;

(ii) Wholesalers/ retailers;

(iii) Consumers;

(iv) Salesmen; and

(v) The community.

(i) Benefits to Manufacturers/Producers:

(a) Advertising results in an increase in sales and, consequently, increase in profits.

(b) It enables an easy introduction of newly developed products/ services.

(c) It helps build the image of the product and its manufacturer/producer.

(d) It establishes a direct contact between the manufacturer and the consumers such that middleman have no scope to push up prices, and thus assists in maximising the profit margin.

(ii) Benefits to Wholesalers/Retailers:

(a) It is easy to find customers for their goods as the consumers are already aware of the goods being available and their usefulness to them.

(b) Advertising increases demand for the products and helps increase sales which lead to quick turnover and increased profits.

(c) The image of the product and its manufacturer/producer, as built up by advertising, will also add to the prestige of the wholesalers/retailers.

(iii) Benefits to Consumers:

(a) For consumers in general, adver­tising means a guarantee as regards quality and suitability of the product/ service which is advertised. But, in some cases, it may not really be so.

However, if the claims made in an advertisement are found by the consumers to be true, they take to using that product on a regular basis, thus pushing up its sales. This, in turn, enables the manufacturer/producer to lower the cost, improve the quality of the product still further, and also earn increased profits.

(b) Advertising is the main source of knowledge as regards the place and time of availability of a product or service. This means, the consumers do not have to run from one shop to another to get the desired product or service.

(c) Advertisements by manufacturers/producers of identical products will enable the consumers to compare the merits of individual products, such that they will be in a position to pick and choose the products which best satisfy their needs and desires.

(d) Most modern advertising is highly educative and useful for the consumers. It leads to better standard of living.

(iv) Benefits to Salesmen:

Salesmanship and advertising play a complementary and supplementary role for one another.

The benefits derived by salesmen from advertising are as follows:

(i) Goods which are already extensively advertised on the media are easy to be introduced in the market.

(ii) As advertising will effectively perform the spadework as regards providing useful information about the product/service to the dealers and consumers, salesmen do not have to make much sales efforts.

(iii) Advertising helps salesmen to establish more stable relationships with customers.

(iv) Salesmen are able to measure as to how far advertising has succee­ded in creating product awareness among customers.

(v) Benefits to the Community at Large:

(i) Modern adverti­sing has become highly educative in nature. It brings to the people valuable knowledge about goods and services which is not easily available elsewhere. In a sense, advertising is an index to the level of civilisation.

(ii) Advertising leads to an increase in production which, on its part, gives rise to greater employment opportunities, increasing income levels, and better standards of living for the people.

(iii) Advertising helps people to know as to what products are avail­able to satisfy their felt needs and desires. It also creates in them an awareness of the needs which they may not have felt before.

For example, it is only due to advertising that articles, like cars, refrigerators, T.V. sets, etc., which were earlier regarded as luxuries causing wasteful expen­diture, can today be seen in many households, whether in urban or rural areas.

Undoubtedly, this has meant extra hours of work for the matters of the family to add to their income so as to meet expenditure on such items. But advertising has succeeded in promoting an awareness about the usefulness of these items. As Sir Winston Churchill put it, “Advertising nourishes the consuming power of man. It creates wants for a better standard of living. It spurs individual exertion and greater production.”

(iv) Advertising revenue leads to low production costs of newspapers and magazines which, in a democratic set-up, are invaluable watch-dogs of the public interest. For example, minus advertising revenue, a copy of the Hindustan Times or the Times of India would sell for more than Rs. 50.

Further, it is because of the huge revenue earned by both radio and television from commercial advertising that the Government has abolished the annual licence fee in respect of radio and T.V. sets.

(v) Advertising helps copy writers and artistes to earn their living. It also enriches the social and cultural life of people.


Essay # 8. Criticisms of Advertising:

Although the merits of advertising far outweigh its faults, the criticisms cannot be neglected.

The following are the important criticisms of advertising:

(i) Unbalanced Advertising:

Advertising is sometimes made in such an excessive and unbalanced manner that it increases the cost of marketing and hence, the price of products rather than reducing prices.

(ii) Combative Advertising:

Advertising, instead of creating new demand, is often directed to transfer customers from one producer to another. Combative advertising represents a sheer waste from the social point of view.

(iii) False Advertising:

Advertising fails to achieve its objectives and destroys public confidence in those cases where false and exaggerated claims are made about the virtues of products in advertising.

(iv) Deceptive Advertising:

Advertising has been used to defraud buy­ers by inducing them to purchase goods of doubtful value.

(v) Lack of Dignity:

In their zeal for demand creation, advertisers sometimes adopt objectionable practices that are totally devoid of ethical sense, moral value or public decency.

(vi) Propensity to Artificial Living:

Advertising creates tastes and desires for some products in such a way that many persons are forced to buy things beyond their means, and others are discontented for not being able to buy the product.


Essay # 9. Regulation of Advertising:

The importance of advertising can be fully realized provided the abuses thereof are stopped. In order to eliminate the defects of advertising, a number of measures have been devised by the businessmen as well as by the Government.

The usual measures that are applied may be stated as follows:

(a) Obscene advertisements are tota­lly banned by statutes, as they offend public moral,

(b) Noisy advertisements through the use of loud-speakers or beating drums are restricted, since they appear as a public nuisance,

(c) Writings on the walls or other public places are prohibited by injunction,

(d) To guard against deceptive adverti­sing, regulatory laws are enforced by the State.

In our country, the Essen­tial Commodities and Drugs Act has been passed for controlling the sale of medicines, food products and some other essential items. But unfortuna­tely, the legislation has lost much of its strength in the absence of admi­nistrative vigilance and rigid enforcement,

(e) The chambers of commerce set up “better business bureaus” to regulate advertising, and

(f) The consumers’ associations or their cooperatives raise some voice against unethical advertising.