Advertising Unit 1

Advertising
Dr. Agha
OBJECTIVES OF ADVERTISING
1. To introduce a new product by creating interest for it among the
prospective customers.
2. To support personal selling programme. Advertising maybe used to
open customers' doors for salesman.
3. To reach people inaccessible to salesman.
4. To enter a new market or attract a new group of customers.
5. To light competition in the market and to increase the sales as seen in
the fierce competition between Coke and Pepsi.
6. To enhance the goodwill of the enterprise by promising better quality
products and services.
7. To improve dealer relations. Advertising supports the dealers in selling
he product. Dealers are attracted towards a product which is
advertised effectively.
8. To warn the public against imitation of an enterprise's products.
IMPORTANCE OF ADVERTISING
1. Promotion of Sales : It promotes the sale of goods and
services by informing and persuading the people to buy them.
2. Introduction of New Product : It helps the introduction of
new products in the market. A business enterprise can
introduce itself and its product to the public through
advertising.
3. Creation of Good Public Image : It builds up the reputation of
the advertiser. Advertising enables a business firm to
communicate its achievements in an effort to satisfy the
customers' needs. This increases the goodwill and reputation
of the firm
4. Mass Production : Advertising facilitates large-scale
production. Advertising encourages production of
goods in large-scale because the business firm
knows that it will be able to sell on large-scale with
the help of advertising. Mass production reduces
the cost of production per unit by the economical
use of various factors of production.
5. Research : Advertising stimulates research and
development activities. Every firm tries to
differentiate its product from the substitutes
available in the market through advertising. This
compels every business firm to do more and more
research to find new products and their new uses.
6. Education of People : Advertising educate the
people about new products and their uses.
Advertising message about the utility of a product
enables the people to widen their knowledge.
7. Support to Press : Advertising provides an
important source of revenue to the publishers
and magazines. It enables to increase the
circulation of their publication by selling them at
lower rates. People are also benefited because
they get publications at cheaper rates. Advertising
is also a source of revenue for TV network
ROLE OF ADVERTISING IN MARKETING MIX
1. Advertising and Product :

A product is normally a set of physical elements, such
as quality, shape, size, colour and other features.
The product may be of very high quality . At times,
the product is so designed that it requires careful
handling and operations. Buyers must be informed
and educated on the various aspects of the
product. This can be effectively done through
advertising. Thus, advertising plays the role of
information and education.
2. Advertising and Price :
The price is the exchange value of the product. A marketer
may bring out a very high quality product with additional
features as compared to competitors. In such a case, price
would be definitely high. But buyers may not be willing to
pay a high price would be definitely high. Here comes
advertising.
Advertising can convince buyers regarding the superiority
of the brand and thus its value for money. This can be done
by associating the product with prestigious people,
situations, or events. Alternatively when a firm offers a low
price products the job of advertising needs to stress the
price advantage by using hard hitting copy. It is not just
enough to convince, but it is desirable to persuade the buyer.
Thus advertising plays the role of conviction and persuasion.
• 3. Advertising and Place :
Place refers to physical distribution and the
stores where the goods are available Marketer
should see to it that the goods are available at
the convenient place and that too at the right
time when the buyers need it. To facilitate
effective distribution and expansion of
market, advertising is of great significance.
Thus advertising do help in effective
distribution and market expansion.
4. Advertising and Promotion :
Promotion consists of advertising, publicity, personal
selling and sales promotion technique.
Businessmen today have to face a lot of
competition. Every seller needs effective promotion
to survive and succeed in this competitive business
world. Advertising can play a significant role to put
forward the claim of seller, and to counter the
claims of competitor. Through effective advertising,
sellers can face competition and also help to
develop brand image and brand loyalty.
Marketing Communication
• A standard definition of communication is the

transmission of a message from a sender to a receiver.
• Marketing communications, then, are those messages
that deal with buyer-seller relationships.
• Marketing communication is a broader term than
promotional strategy, for it includes words of mouth
and other forms of unsystematic communication. A
planned promotional strategy, however, is certainly the
most important part of marketing communication.
Element of Marketing Communication Process
For Effective Communication, the marketer should know how
communication works? Following are the nine elements that are
involved in the marketing communication process.
• Sender
• Encoding
• Message
• Media
• Decoding
• Receiver
• Response
• Feedback
• Noise
• Sender:
• The party or person who is sending the message to the other party
or person is the sender.
• Encoding:
• The conversion of thought into the meaningful symbols is called
encoding.
• Message:
• The group of symbols transmitted by the sender is called a
message.
• Media:
• The channel of communication through which transfers the
message from sender to receiver is called media.
• Decoding:
• The conversion of symbols into meaning by the receiver is called
decoding.
• Receiver:
• The sent message received by another person or party is
called the receiver.
• Response:
• The reaction shown by the receiver before the message is
called response.
• Feed Back:
• The portion of the response of the receiver that is sent
back to the sender is called feedback.
• Noise:
• The unplanned distortion during the process of
communication due to which the receiver understands the
wrong meaning of the original message is called noise.
Marketing Communication Process Steps
There are certain steps that should be involved in the effective
marketing communication process. The marketing and
promotional activities should focus on these steps in order to
attract a huge portion of long run customers. Following are
the steps that make the communication process effective.
• Identification of the target audience
• Determination of the communication objectives
• Designing of message
• Message content
• Message structure and format
• Choosing media
• Collecting feedback

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Advertising

1. Advertising and Product :

• A standard definition of communication is the

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