ADVERTISING AND SALES PROMOTION

CHAPTER 3 & 4

Introduction

Objectives

Importance

Classification Of Advertisement

Economic Effects Of Ads

Social Effects Of Ads

INDEX

INTRODUCTION TO ADVERTISING

WHAT IS ADVERTISING?

• ANY PAID FORM

• NON – PERSONAL PRESENTATION

• SELLING OF IDEAS, GOODS AND SERVICES

• IDENTIFIED SPONSOR

• CONTROLLED

• MASS COMMUNICATION

• PERSUATION

• NOT NEUTRAL, NOT BIASED

OBJECTIVES OF ADVERTISING

IMPORTANCE / BENEFITS OF

ADVERTISING

INFORMATIONSpreading awareness amongst people by providing proper and full Information

BRAND IMAGE BUILDINGBuilding up the Image and Reputation of a brand via advertising

INNOVATIONComing up with new and creative ideas to attract consumers and their liking

GROWTH OF MEDIA

CLASSIFICATION OF

ADVERTISEMENT

CONSUMER ADVERTISING

This type of advertising is directed to the ultimate consumers of the consumer products, i.e., the individuals, who buy, or, use the consumer products, or services. All types of consumer products need continuous and extensive advertising on T.V., radio, and press.

TYPES OF CONSUMER ADVERSTISING

NATIONAL ADVERTISING

REGIONAL ADVERTISING

END – PRODUCT

ADVERTISING

The product services, and ideas, which have demand all over the country, are suitable for national advertising. In India, Indian airline Hindustan Lever ltd., Vicco, Godrej, Bajaj and Kirloskar are a few leading advertisers at national level. Likewise, detergents, soaps, Toothpastes , cosmetics, scooters, cars, and bicycles, are some of the products, which are advertised all over the country.

NATIONAL ADVERTISING

It covers a particular region, which may be one state, or, more than one state, the people of which may be having a common tongue, or, using one common product. It is considered to be an ideal form of advertising for launching and marketing a new product in a specific region and it include regional newspapers, magazines , radio, regional T.V., outdoor media, etc.

REGIONAL ADVERTISING

This type of advertising is undertaken by those companies, which operate in more than one country, known as “multi-national” companies. Coca-Cola and Pepsi are advertised globally, as the sales are almost all over the world. International advertising is extremely expensive, involving the services of professional advertising agencies in different countries.

INTERNATIONAL ADVERTISING

END PRODUCT ADVERTISINGThere are many products that are rarely purchased direct by consumers. They are usually bought as part or ingredient in other products. For example, there is Teflon (DuPont product), Pentium (Intel Corporation’s computer processor chip), Athelon (Advanced Micro Devices computer processor chip) and many others. Advertising of such products is called End Product Advertising (also called branded ingredient advertising). This type of advertising is often undertaken by manufacturers whose branded parts or ingredients are used in producing usually other branded or unbranded consumer products. Successful end product advertising helps create demand for the ingredient that helps in the sale of another product, such as Intel promotes its Pentium processors. The sustained existence of consumer demand for such ingredients encourages companies to use them in their consumer products.

ADVERTISING TO BUSINESS AND PROFESSIONS

TRADE ADVERTISING

Consumer-product advertising intended not for the consumer but for the various entities who influence consumer availability, such as distributors, wholesalers, retailers, brokers. Also called business-to-business advertising.

There are 2 types of Industrial

Advertising:

Professional – Sample

Medicines(Medical Consultants to

Doctors)

Corporate or Institutional – Tata Steel

INDUSTRIAL ADVERTISINGThis type of advertising is used by manufacturers and distributors of industrial goods. Such as, machinery, plants, equipment's, spare parts and components, and are directed at industrial users or customers. Such advertisements usually appear in trade journals, trade dictionaries, business magazines and so on. The appeal made is tactual and rational.

NON - PRODUCT ADVERTISING

IDEA ADVERTISINGAdvertising of an idea or passing on a message

Sending a social message to the society

SURROGATE ADVERTISING

Surrogate Advertising is a form of advertising which is used to promote banned products like cigarettes and alcohol, in the disguise of another product.

It is undertaken to obtain immediate response or action on the part of target audience. Examples include discount sales advertising, sale along with free gift offers, and mail-order coupon sales, etc.

DIRECT ADVERTISING

Indirect action advertising is undertaken to influence the audience in respect of advertiser's brand. The advertiser expects the target audience to prefer his brand as compared to competitors whenever a buying decision arises in future.

INDIRECT ADVERTISING

Primary Advertising Is undertaken by trade association or by cooperative groups. It is undertaken to create generic den1 and for products and services . For example, the advertisers may encourage to consume more milk.

Selective Advertising is undertaken by marketers of branded products. The advertiser intends to create selective demand for his brand. Examples include mother dairy milk, particularly mineral water i.e. Bisleri

It is undertaken to promote the sale of products and services-branded or unbranded.

It is undertaken to build name and goodwill of the organization. It is also, know as corporate advertising or image advertising. It is mostly undertaken by large firms.

PRODUCT ADVERTISING :

INSTITUTIONAL ADVERTISING :

PARTIES INVOLVED

Advertiser/Sponsor Agencies Support Organizations Media Consumers

ECONOMIC AND SOCIAL EFFECTS OF ADVERTISING

ECONOMIC EFFECTS

EFFECT ON VALUE OF PRODUCTS AND SERVICES

EFFECT ON PRICES

EFFECT ON CONSUMER DEMAND AND

CONSUMER CHOICE

EFFECTS ON COMPETITION

EFFECT ON VALUE OF PRODUCTS

Advertising sets of chain reaction of economics events . Why do consumer prefer advertised brands as compared to unadvertised brands in same category? Because advertising adds value by educating consumers about new uses for a product.

EFFECT ON PRICES

When advertising is allowed in various areas then prices tends to fall because der better information and the market is more competitive.There are also some areas where advertising raises the prices as for luxury products

CONSUMER DEMAND AND CONSUMER CHOICE

It is because of favorable market conditions that the demand fro personal products or services has expanded in this past few years . Advertising can help stimulate demand of products by communicating relevant information and facts. As every customer does not prefer the same taste in products or services the marketers has started to differentiate their offers in various terms.

EFFECTS ON COMPETITIONIt is generally accepted that competition results in lower prices and a greater number of goods delivered to more people. Less competition is perceived to exhibit higher prices with a fewer number of goods delivered to fewer people.

SOCIAL EFFECTS

o STEREOTYPES

o ETHICAL ISSUES

STEREOTYPES

Motorcycles are for men , and scooters are for women… Stereotypes are typical ads that show women in a lesser light than men and are typical thoughts of the society even when the world has moved forward

ETHICAL ISSUES

Ethics are moral principles and value that govern the actions and decisions of an individual or group . Advertising is a mirror that helps and shapes the reality. Many publications and broadcasting operations depends on advertising revenue for survival. This dependency compels the media to telecast unrealistic and unethical ads.

POSITIVE SOCIAL EFFECTS

PALLAVI GUPTEROLL NO 1

TYBBA