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Advertisement


Advertising is a form of communication that
typically attempts to persuade potential
customers to purchase or to consume more
of a particular brand of product or service.
Purpose of Advertising

   To Inform
   •When a new product is introduced.
   •Aimed to create demand of new product.

   To Persuade
   •To persuade people to buy a product of a particular
   brand.

   To Remind
   •To remind people of existing products.
   •To draw attraction of customers.
Types of Advertising

Types of Advertising
Informative Advertisement
Informing the public of a new products.
For example a new car launch.

Persuasive Advertisement
Telling people that a particular brand is superior to all other brands.

Reminder Advertisement
Adds repeated again and again.
Product Advertisement
Is the promotion of a particular product or service.
For example “Our mineral water is purified by the latest
technology”.

Institutional Advertisement
Concerned with the promotion of overall image of the company.
For example “Our company contributes to keeping the country
clean”

Collective/Genetic Advertisement
Advertisement of a product not a particular brand.
For example “Drinking Milk is essential for children”
Financed by all the producers of the product.
Competitive Advertisement
Carried out by different producers encouraging public to buy their brand.
For example Pepsi.

Direct Advertisement
Advertisement without involvement of any third party.
For example through Direct Mail, Door-to-Door canvassing and person-to-
person basis.

Indirect Advertisement
Done with the involvement of third party.
Used when advertiser do not wish to appeal to a particular group of people
buy to masses.
For example though Television and Radio.
Advantages and Disadvantages of Advertising
Of Direct Advertising
Pros:
•Personal contact. Results in better communication of the message.
•Suitable for product requiring lot of advise and explanation.
•Cheap of smaller market.
•Demonstration of product is possible.
•No wasteful circulation. Limited to only target customers.
Cons:
•Limited coverage. Lack of man power.
•People do not take this type of advertisement seriously.

Of Indirect Advertising
Pros:
•Wide coverage through mass media.
•Low unit cost.
•Different tools of appeals can be used
Cons:
•Impersonal.
•High absolute cost.
•Wasteful circulation.
To Producer
Pros:
•Increases sales.
•Economies of scale through increased sales.
•High profits.
•Bigger market share.
•Brand image is created.

Cons:
•Increase in cost.
•May result in price war among advertisers.
•Loss in case of unsuccessful advertisement.
•Imitation brand.
To Customer
Pros:
•Introduction to new products.
•Awareness of different brands in the market.
•Lower prices due to economies of scale.
•Better quality goods at cheap rates due to competition.
•Certain goods and services are made available to the public at
very low prices because of their income form advertisement
for example newspaper and magazines.

Cons:
•Higher prices of goods. Price of advertisement is added to the
product.
•Misleading claims.
•Imitation brands.
•Customers become confused.
•Unnecessary purchases.
Advertising Media
 • Newspaper
              Advantages                    Disadvantages
•Wide coverage                  •Wasteful circulation
•Daily circulation              •Reach only literate people
•Different rates depending on   •Short life
size and location of ads        •Poor quality advertisement
•Low cost per exposure          •No audio/visual impact


• Magazines
            Advantages                     Disadvantages
•Long life                      •Inflexible
•Better quality                 •Infrequent
•Targeted                       •No audio/visual impact
•Still cheap                    •Suitable only for literate people
•Low cost per exposure
• Radio
             Advantages                        Disadvantages
•Audio and Visual impact          •High absolute cost
•Lost cost per exposure           •Wasteful circulation
•Wide coverage                    •Fail to get attention



• Television
             Advantages                        Disadvantages
•Wide coverage                    •No visual impact
•Audio impact                     •Exposure life is very short
•Can reach illiterate people      •Ads fail to get attention

•Targeted. (Ads between programs) •Becoming less popular

•Low cost
Factors affecting choice of Advertisement
Media

    1.          Cost                         Budget
    2.    Type of message             Includes detail or not

                             Requires demonstration/Requires Audio
    3.    Type of product
                                        and visual impact


    4.        Target           Teenagers/Housewives/Professionals

    5.        Market               Local/National/International


    6.   Government policy   Does government allow such types of ads
Promotion(marketing mix)

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Promotion(marketing mix)

  • 1.
  • 2. Advertisement Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service.
  • 3. Purpose of Advertising To Inform •When a new product is introduced. •Aimed to create demand of new product. To Persuade •To persuade people to buy a product of a particular brand. To Remind •To remind people of existing products. •To draw attraction of customers.
  • 4. Types of Advertising Types of Advertising Informative Advertisement Informing the public of a new products. For example a new car launch. Persuasive Advertisement Telling people that a particular brand is superior to all other brands. Reminder Advertisement Adds repeated again and again.
  • 5. Product Advertisement Is the promotion of a particular product or service. For example “Our mineral water is purified by the latest technology”. Institutional Advertisement Concerned with the promotion of overall image of the company. For example “Our company contributes to keeping the country clean” Collective/Genetic Advertisement Advertisement of a product not a particular brand. For example “Drinking Milk is essential for children” Financed by all the producers of the product.
  • 6. Competitive Advertisement Carried out by different producers encouraging public to buy their brand. For example Pepsi. Direct Advertisement Advertisement without involvement of any third party. For example through Direct Mail, Door-to-Door canvassing and person-to- person basis. Indirect Advertisement Done with the involvement of third party. Used when advertiser do not wish to appeal to a particular group of people buy to masses. For example though Television and Radio.
  • 7. Advantages and Disadvantages of Advertising Of Direct Advertising Pros: •Personal contact. Results in better communication of the message. •Suitable for product requiring lot of advise and explanation. •Cheap of smaller market. •Demonstration of product is possible. •No wasteful circulation. Limited to only target customers. Cons: •Limited coverage. Lack of man power. •People do not take this type of advertisement seriously. Of Indirect Advertising Pros: •Wide coverage through mass media. •Low unit cost. •Different tools of appeals can be used Cons: •Impersonal. •High absolute cost. •Wasteful circulation.
  • 8. To Producer Pros: •Increases sales. •Economies of scale through increased sales. •High profits. •Bigger market share. •Brand image is created. Cons: •Increase in cost. •May result in price war among advertisers. •Loss in case of unsuccessful advertisement. •Imitation brand.
  • 9. To Customer Pros: •Introduction to new products. •Awareness of different brands in the market. •Lower prices due to economies of scale. •Better quality goods at cheap rates due to competition. •Certain goods and services are made available to the public at very low prices because of their income form advertisement for example newspaper and magazines. Cons: •Higher prices of goods. Price of advertisement is added to the product. •Misleading claims. •Imitation brands. •Customers become confused. •Unnecessary purchases.
  • 10. Advertising Media • Newspaper Advantages Disadvantages •Wide coverage •Wasteful circulation •Daily circulation •Reach only literate people •Different rates depending on •Short life size and location of ads •Poor quality advertisement •Low cost per exposure •No audio/visual impact • Magazines Advantages Disadvantages •Long life •Inflexible •Better quality •Infrequent •Targeted •No audio/visual impact •Still cheap •Suitable only for literate people •Low cost per exposure
  • 11. • Radio Advantages Disadvantages •Audio and Visual impact •High absolute cost •Lost cost per exposure •Wasteful circulation •Wide coverage •Fail to get attention • Television Advantages Disadvantages •Wide coverage •No visual impact •Audio impact •Exposure life is very short •Can reach illiterate people •Ads fail to get attention •Targeted. (Ads between programs) •Becoming less popular •Low cost
  • 12. Factors affecting choice of Advertisement Media 1. Cost Budget 2. Type of message Includes detail or not Requires demonstration/Requires Audio 3. Type of product and visual impact 4. Target Teenagers/Housewives/Professionals 5. Market Local/National/International 6. Government policy Does government allow such types of ads