Objectives of Advertising

Four main Objectives of advertising are:

 Trial
 Continuity
 Brand switch
 Switching back

1. Trial: the companies which are in their introduction stage generally work for this objective. The
trial objective is the one which involves convincing the customers to buy the new product
introduced in the market. Here, the advertisers use flashy and attractive ads to make customers
take a look on the products and purchase for trials.
2. Continuity: this objective is concerned about keeping the existing customers to stick on to the
product. The advertisers here generally keep on bringing something new in the product and the
advertisement so that the existing customers keep buying their products.
3. Brand switch: this objective is basically for those companies who want to attract the customers
of the competitors. Here, the advertisers try to convince the customers to switch from the
existing brand they are using to their product.
4. Switching back: this objective is for the companies who want their previous customers back,
who have switched to their competitors. The advertisers use different ways to attract the
customers back like discount sale, new advertise, some reworking done on packaging, etc.

Importance of Advertising

Advertising is important for the customers

Just imagine television or a newspaper or a radio channel without an advertisement! No, no one can
any day imagine this. Advertising plays a very important role in customers life. Customers are the
people who buy the product only after they are made aware of the products available in the market.
If the product is not advertised, no customer will come to know what products are available and will
not buy the product even if the product was for their benefit. One more thing is that advertising
helps people find the best products for themselves, their kids, and their family. When they come to
know about the range of products, they are able to compare the products and buy so that they get
what they desire after spending their valuable money. Thus, advertising is important for the
customers.
Advertising is important for the seller and companies producing the products

Yes, advertising plays very important role for the producers and the sellers of the products, because

Advertising helps increasing sales

Advertising helps producers or the companies to know their competitors and plan accordingly to
meet up the level of competition. If any company wants to introduce or launch a new product in the
market, advertising will make a ground for the product. Advertising helps making people aware of
the new product so that the consumers come and try the product.

Advertising helps creating goodwill for the company and gains customer loyalty after reaching a
mature age. The demand for the product keeps on coming with the help of advertising and demand
and supply become a never ending process.

Advertising is important for the society

Advertising helps educating people. There are some social issues also which advertising deals with
like child labour, liquor consumption, girl child killing, smoking, family planning education, etc. thus,
advertising plays a very important role in society.

Role of Advertising

Role of Advertising in Business

1. To identify products and differentiate them from others.

2. To communicate information about the products, its features and its location of sale.
3. To induce consumers to try new products and to suggest its reuse.
4. To stimulate the distribution of a product.
5. To increase products use.
6. To build value, brand preference. and loyalty.
7. To lower the overall cost of sales.

The Economic Role of Advertising:

1. Effect of advertising on the value of products - It is argued that advertising
can add value to the brand in the consumer’s mind.
Subsequent studies showed that while an advertisement may not speak
directly about a product’s quality, the positive image conveyed by
advertising may imply quality, make the product more desirable to the
consumer, and thereby add value to the product
Advertising also creates added value by educating customers about new
uses of a product.

2. Advertising effect on prices - Ultimately, companies may reduce the prices

of their products and services. Thus, one can say that advertising indirectly
helps companies in reducing the prices of their products and services.
However, the relationship between advertising and prices has not been
proved empirically.

3. Effect of advertising on the competition - One opinion is that small

company because of their limited resources are not able to compete with
the large companies on account of their heavy advertising and eventually
go out of business.

In many cases, advertising by big companies has only a limited effect on

small businesses because no advertiser is large enough to dominate the
entire industry.
It is a well-known fact that regional companies compete very successfully
with national companies on a regional and local level.

4. Advertising effect on demand - Many social and economic forces including

technological advances, increase in the population and income, changes in
the lifestyle and people’s educational level are some of the other factors,
which influence the aggregate demand in addition to the advertising.

It is to be noted that when those conditions are favorable advertising plays

a positive role in the increase of consumption of certain products.
 Advertising can also help get new products accepted in the market by
stimulating the demand for the product class in which the new product
falls. But in declining markets, advertising can only slow the rate of decline.

5. Advertising effect on business cycle - Advertising helps sustain

employment and income. It is a common practice when business cycles
dip, companies cut advertising expenditures.

That may help immediate short-term profits, but studies prove that
businesses that continue to invest in advertising during a recession period
are better able to protect, and sometimes build market shares.
However, no study has shown that if all companies keep advertising, the
recessionary cycle will turn around.

From this one may conclude that when business cycles are up, advertising
contributes to the increase. When business cycles are down, advertising
may act as a stabilizing force or tries to stop the downtrend.

6. Advertising effect on consumer choice - Marketers who want to beat the

competition, the best way is to make their products different and they have
to create a unique position for their products and services vis-à-vis their
competitors.
This positioning is possible only through effective advertising. The freedom
to advertise encourages businesses to create a new brand and improve old
ones.

Role of Advertising in Marketing

1. Advertising;
2. Sales promotion;
3. Public relations;
4. Personal selling.
 1. Sales promotion;
Sales promotion is a set of marketing technologies aimed to
stimulate the demand in particular products and increase brand
awareness. Limited in time, it creates a feeling of time-sensitiveness,
generates new leads, and keeps existing customers engaged.
Benefits of Sales Promotion
 It helps to generate Product image
 Allows re-engaging with your existing audience
 Increases revenue
 Increases brand awareness
Types of Sales Promotion
 Price deal
 Loyalty reward program
 Bonus-pack deal
 Giveaways
 Coupons
 Mobile couponing
 Sampling

Price deal. It is a temporary cost reduction, for instance, 20% off for a coffee for a
week.

Loyalty reward program. This means that customers collect points or credits
when they buy coffee. If they get 10 points, for example, they will have one coffee
for free.
Bonus-pack deal. It means that a customer can get more products paying the
original price. For instance, they pay a dollar for one cup of coffee and get free
candy, which gives some positive emotions and makes them come back in the
future.

Giveaways. These tactics aim to increase brand awareness. It means giving some
items for free in exchange for personal information to use in further marketing.
For example, offer a free cup of coffee in exchange for a phone number, which
you can use for many purposes: promoting new sales, sharing updates and news
with short text messages, etc.

Coupons. You can sell coffee for the original price and give a coupon, which will
make the next purchase 5% cheaper.

Mobile couponing. It stands for coupons received on mobile phones via SMS. To
get a discount, a customer needs to show the coupon on their smartphone.

Sampling. Choosing this promotion type, companies give a sample of the product;
for instance, the first cup of coffee to promote a new taste.

Email marketing

2. What Is Public Relations?

Public relations (PR) refer to the variety of activities conducted by a company to

promote and protect the image of the company, its products and policies in the
eyes of the public.

This process focuses on

 What information should be released,

  How it should be drafted,
 How it should be released,
What media should be used to release the information (usually earned or
free media is used for the same).
Objective Of Public Relations
The main objective of public relations is to maintain a positive reputation of
the brand and maintain a strategic relationship with the public, prospective
customers, partners, investors, employees and other stakeholders which
leads to a positive image of the brand and makes it seem honest,
successful, important, and relevant.

Functions Of Public Relations

Public relations is different from advertising. Public relations agencies don’t buy ads, they don’t
write stories for reporters, and they don’t focus on attractive paid promotions. The main role of
public relations is to promote the brand by using editorial content appearing on magazines,
newspapers, news channels, websites, blogs, and TV programs.

Using earned or free media for promotion has its own benefits as information on these
mediums aren’t bought. It has a third-party validation and hence isn’t viewed with scepticism by
the public.

The functions of public relations manager and public relations agencies include:

1. Anticipating, analysing, and interpreting the public opinion and attitudes of the public
towards the brand and drafting strategies which use free or earned media to influence
them.
2. Drafting strategies to support the brand’s every campaign and new move through
editorial content.
3. Writing and distributing press releases.
4. Speechwriting.
5. Planning and executing special public outreach and media relations events.
6. Writing content for the web (internal and external websites).
 7. Developing a crisis public relations strategy.
8. Handling the social media presence of the brand and responding to public reviews on
social media websites.
9. Counselling the employees of the organisation with regard to policies, course of action,
organisation’s responsibility and their responsibility.
10. Dealing with government and legislative agencies on behalf of the organisation.
11. Dealing with public groups and other organisations with regard to social and other
policies of the organisation and legislation of the government.
12. Handling investor relations.

Types Of Public Relations

 According to the functions of the public relations department/agencies, public relations can be
divided into 7 types. These are:
 Media Relations: Establishing a good relationship with the media organisations and acting as
their content source.
 Investor Relations: Handling investors events, releasing financial reports and regulatory filings,
and handling investors, analysts and media queries and complaints.
 Government Relations: Representing the brand to the government with regard to the fulfilment
of policies like corporate social responsibility, fair competition, consumer protection, employee
protection, etc.
 Community Relations: Handling the social aspect of the brand and establishing a positive
reputation in the social niche like environment protection, education, etc.
 Internal Relations: Counselling the employees of the organisation with regard to policies, course
of action, organisation’s responsibility and their responsibility. Cooperating with them during
special product launches and events.
 Customer Relations: Handling relationships with the target market and lead consumers.
Conducting market research to know more about interests, attitudes, and priorities of the
customers and crafting strategies to influence the same using earned media.
 Marketing Communications: Supporting marketing efforts relating to product launch, special
campaigns, brand awareness, image, and positioning.
Advantages Of Public Relations

 Credibility: Public trusts the message coming from a trusted third party more than the
advertised content.
 Reach: A good public relations strategy can attract many news outlets, exposing the content to a
large audience.
 Cost effectiveness: Public relations is a cost effective technique to reach large audience as
compared to paid promotion.

Disadvantages of Public Relations

 No Direct Control: Unlike paid media, there isn’t a direct control over the content distributed
through the earned media. This is the biggest risk of investing in public relations.
 Hard To Measure Success: It is really hard to measure and evaluate the effectiveness of a PR
campaign.
 No Guaranteed Results: Publishing of a press release isn’t guaranteed as the brand doesn’t pay
for it. The media outlet publishes it only if it feels that it’ll attract its target audience.

Personal selling is where businesses use people (the "sales force") to sell the product after meeting
face-to-face with the customer. The sellers promote the product through their attitude, appearance and
specialist product knowledge. They aim to inform and encourage the customer to buy, or at least trial
the product.

Features of Personal Selling:

The main features of personal selling are:

i. It is a face to face communication between buyer and seller.

ii. It is a two way communication.

iii. It is an oral communication.

iv. It persuades the customers instead of pressurizing him.

v. It provides immediate feedback.

vi. It develops a deep personal relationship apart from the selling relationship with the buyers and
customers.