Advertising

DEFINITION OF ADVERTISING

Paid form of non-personal communication about an organization, product, service or idea from a well-known sponsor, using mass media to convince
or influence an audience.

The paid aspect of this definition reflects
the fact that the space or time for an advertising message must be bought.

What really is Advertising ?

The non-personal component means that advertising involves mass media (example- TV, radio, magazines, newspapers) that can broadcast a message to large groups of individuals, often at the same time.

What really is Advertising?

The non-personal nature of advertising means that there is generally no opportunity for immediate feedback from the message recipient (except in direct response advertising).

Therefore before the message is sent, the advertiser must consider how the audience will interpret and respond to the message.

What really is Advertising?

Advertising is communication of information and values by an
identified sponsor

Advertising is the third partner in the relationship between a consumer and a product/service.

 IMPORTANCE OF ADVERTISING

There are many reasons why advertising is an important part of the marketers promotional mixes they are:

·        Firstly, it is very cost effective method to communicate to a large audience.

·        Secondly, it helps create brand image and symbolic appeal for the brand which is a very important for companies selling product/services that are difficult to differentiate on functional attribute.

·        The nature and purpose of advertising differs from one industry to another and/or across situations.

·        The targets of an organization's advertising efforts often differ as the advertising role and function in the marketing program.

For example- One advertiser may seek to generate immediate response or action from customers; another may want to develop awareness or positive image for its products or service over a longer period.

•         What advertising does is create awareness, interest, and desire and drives the consumerto the shop.

•         For any advertising to be successful it is essential that the service or product must be superior or meaningfully different; certainly, at the very
least, it must be at least satisfactory.

•         If it is a public message, then it must be a convincing proposition or a product of inferior quality.

•At the most advertising will help in inducing a trial from the consumers;        thereafter it is entirely on the quality of the product or brand.

ROLE OF ADVERTISING

INFORMATION AND PERSUASION: Practical advertising is a constituent in an overall advertising strategy, that seeks to convince consumers into purchasing particular goods or services, often by engaging to their emotions and general sensibilities. This particular advertising strategy is different from informative advertising, which fundamentally provides the customer with hard data about the nature and function of the product. With significant advertising, the assumption is that the consumer already understands the basic nature of the product, but needs to be convinced of the desirability and the benefits that set a particular product apart from the competition.

One of the more effective approaches to influential advertising is to focus on specific benefits of the product.

INFORMATION OF NEW BRAND OR BRAND EXTENSIONS: Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. The new product is called a spin-off. Organizations use this strategy to increase and influence brand equity (definition- the net worth and long-term sustainability just from the well-known name). An example of a brand extension is Jello-Gelatin creating Jello pudding pops. It increases awareness of the brand name and increases profitability from offerings in more than one product category.

A brand's "extendibility" depends on how strong consumer's relations are to the brand's values and goals. Ralph Lauren's Polo brand successfully extended from clothing to home furnishings such as bedding and towels.

BUILDING AND MAINTANING BRAND LOYALTY AMONG CONSUMERS: Brand loyalty is the gem of all the gems.  Repeated customers who without thinking or even considering other options are the finest of the crop.  Every business aspires to be the “go to” and have that loyalty.  Loyalty is built based upon relationships and a sense of belonging. Relationships are built from trust which are stemmed from conversation, exceptional customer service, a website or store that has the product or service are desired easily available with a trustworthy check out.SIX WAYS TO CREATE BRAND LOYALTY ARE:

·        Be better than anyone

·        Belonging

·        Credibility

·        Accessibility

·        Connection ability

·        Repeat

CREATING AN IMAGE AND MEANING FOR A BRAND: Brand image is the current view of the customers about the brand. It can be defined as a unique bundle of associations within the minds of target customers. It signifies what the brand presently stands for. It is a set of beliefs held about a particular brand. In short, it is nothing but the consumer’s examination about the product. It is the manner in which a specific brand is positioned in the market. Brand image conveys emotional value and not just mental image. Brand image is nothing but an organization’s character. It is an addition of contact and observation by the people external to an organization. It should highlight an organization’s mission and vision. The main elements of positive brand image are- unique logo, reflecting organization’s image, slogans. Describing organization’s business in brief and brand identifier supporting the key values of the organization.

 ADVERTISING OBJECTIVES, GOALS AND MARKETING THEORIES

OBJECTIVES:

The motive of advertising is nothing, but to sell something like-a product, a service or an idea. The real objective of advertising is successful communication between producers and consumers. The following are the main objectives of advertising:

Preparing Ground for New Product

New product needs introduction because potential customers have never used such product earlier and for that, the advertisements preparea ground for that new product. Which help in providing awareness and knowledge to the customers

Creation of Demand

The main objective of the advertisement is to create a favourable climate for maintaining appropriate sales. Customers are to be reminded about the product and the brand. It may bring on new customers to buy the product by informing them its qualities, since it is possible that some of the customers may change their brands.

Facing the Competition

Another important objective of the advertisement is to face the competition. Under competitive conditions, advertisement helps to build up the brand image and brand loyalty and when customers have developed brand loyalty, it becomes difficult for the middlemen to change it.

Creating or Enhancing Goodwill: Large scale advertising is often undertaken with the objective of creating or enhancing the goodwill of the advertising company. This in turn, increases the market accessibility of the company's product and helps the salesmen to win the attraction of customers easily.

Informing the Changes to the Customers

Whenever changes are made in the prices, channels of distribution or in the product through improvement in quality, size, weight, brand, packing, etc, people must be informed about the product by the producer through advertisement.

Neutralizing Competitor's Advertising

Advertising is necessary to beinclusiveor reduce the effectof competitor's advertisement. When competitors are adopting intensive advertising as their promotional strategy. It is their responsibility to follow similar practices to reduce the effect. In such cases, it is essential for the manufacturer to create a different identity of his product.

Barring New Entrants

From the advertiser's point of view, a strongly built identity through long advertising helps to keep new entrants away. The advertisement builds up a certain monopoly for the product in which new entrants find it difficult to enter.

In short, advertising aims at benefiting the producer, educating the consumer and supplementing the salesmen.

GOALS:

Following are the goals of the advertising:

•       Launch of new product and services

•       Expanding markets to include new users

•       Announcing a product modification

•       Announcement of a special offer

•       To announce dealer location

•       To educate customers

•       Reminder campaigns

•       To create brand preference

 THE 5Ms OF ADVERTISING

The organizations handle their advertising in diverse ways. In companies, advertising is handled by someone from the sales or marketing department,  working with an advertisingagency. A large company will set up its own advertising department or else appoint an advertising agency to do the job for preparing advertising programmes.

In developing a program marketing managers must always start by identifying the target market and the buyer’s motives. Through which they can make the five major decisions in developing an advertising program, known as the five M’s, that is-

Ø Mission: what are the advertising objectives?

Ø Money: how much can be spent?

Ø Message: what message can be sent?

Ø Media: what media should be used

Ø Measurement: how should the results is evaluated?

CLASSIFICATION OF ADVERTISING

ADVERTISING TO THE CONSUMER MARKET:

·        National Advertising

·        Retail/Local Advertising

·        Primary Demand Advertising

·        Selective Demand Advertising

NATIONAL ADVERTISING: Advertising is done by a company within a nation or the regions of the country that has been marked as the consumer market.

RETAIL/ LOCAL ADVERTISING: Advertising is done by major retailers or small local merchants to motivate consumers to support their stores or use their local services (banking and restaurants).

PRIMARY AND SELECTIVE DEMAND ADVERTISING: Primary demand advertising- advertising designed to motivate the demand for the general product class or an entire industry.

Selective demand advertising- advertising that focuses on creating demand for a definite company’s product or services.

ADVERTISING DONE FOR THE BUSINESS AND PROFESSIONAL MARKET:

·        Industry Advertising

·        Professional Advertising

·        Trade Advertising

INDUSTRY ADVERTISING: Advertising that is targeted at individual level who influences the purchase of the individual goods and services.

PROFESSIONAL ADVERTISING: Advertising that is done for the professional groups such as lawyers, doctors, engineers.

TRADE ADVERTISING: Advertising that is done and directed to resellers such as wholesalers and retailers to motivate them to carry out the company’s products.

BENEFITS AND CRITICISM OF ADVERTISING

BENEFITS:

·       Information about the product/ brand

·       Building brand image

·       Innovations

·       Launching new product

·       Media growth

·       Long Term And Indirect Benefits

CRITICISM OF ADVERTISING:

·        Hyper- commercial and the commercial tidal wave

·        Product proliferation

·        Inefficient manufacturers remain in the business

·        Entry barriers

·        Dependent on the media

·        Damaging of culture and sports

·        Socio culture aspects like sexism, discrimination

·        Advertising and sensitivity to price

·        Advertising creates insecurity

·        Materialism