ADVERTISING & PERSONAL SELLING
Meaning:
Advertising is that activity by which visual or oral messages are addressed to the general public. Its
purpose is to inform or influence them in order to increase the sales of the advertiser. It is done with a view
to sell the goods or services, offered by the advertiser. It may also draw the readers or viewers to act
favourably towards the idea or institutions featured. It is paid for by a seller (sponsor). The seller or the
advertiser has to pay for the space (or time) through which the message (advertisement) appears. The aim is
to persuade people to buy more. Advertising creates desire for new products. The success of advertising
greatly depends upon effective advertising programme. An effective advertising naturally necessitates mass
production, thereby reduces unit cost by lowering the price of goods in favour of consumers.
Advertising and Advertisement:
The 'message' is known as advertisement. Advertisement is nothing more than a message.
Advertising is a process. It is a programme or series of activities necessary to prepare the message and bring
it to the intended persons or market. The reader knows who is behind the advertising as the sponsor is
openly identified in the advertisement itself. Payment is made by the sponsor to the media, who carry the
message.
Definition:
Littlefield defines it as "Advertising is mass communication of information intended to persuade
buyers as to maximize profits."
Hall defines it as "Salesmanship in writing, print or pictures or spreading information by means of
the written and printed word and the pictures."
Stanton says, "Advertising consists of all the activities in presenting to a group a non-personal, oral
or visual, openly sponsored message regarding a product, service or idea."
American Marketing Association defines advertising as "any paid form of non-personal
presentation and promotion of ideas, goods, or services by an identified sponsor".
From the above definitions, it is stated that advertising indicates that:
a. Advertisement is a message to large groups.
b. It is in the form of non-personal communication.
c. It persuades the general public to purchase the goods or services, advertised.
d. It is paid for by advertiser to publisher.
e. Advertising messages are identified with the advertiser.
Features of Advertising:
After a careful scrutiny of the above definitions, the essential elements of advertising can be listed as
follows:
1. Matter of Record: It is a matter of record furnishing information for the benefit of buyers. It guides or
helps buyers to make satisfactory purchases. The contents of an advertisement are what the advertiser
wants.
2. Non-personal Communication: It is a mass non-personal communication, reaching large groups of
buyers. It is not delivered by actual person. It is not addressed to a person. Whatever the form of
advertisement - spoken, written or visual, it is directed at a mass audience and not at the individual as in
personal selling.
Page | 1
,3. Persuasion of Buyers: Advertising complements or may substitute for personal selling. To persuade the
buyers the advertiser makes his products buyer-satisfying. It is an art of influencing the human action to
possess one's product.
4. Paid Form of Publicity: Advertising is a paid form and hence commercial in nature. Thus any
sponsored communication designed to influence buyer's behaviour is advertising because advertiser pays
for it.
5. Identifiable with the Sponsor: Advertising is identifiable with its sponsoring authority or advertiser. It
discloses or identifies the source of opinions and ideas, it presents.
Objectives, aims or purposes of advertising:
1. To introduce a new product (by building brand awareness among potential buyers).
2. To force middlemen to handle the product (pull strategy).
3. To build brand preference (by making it more difficult for middlemen to sell substitutes.
4. To remind users to buy the product (retentive strategy).
5. To popularize some change in marketing strategy (change in price, improvement in the product etc.).
6. To combat or neutralize competitor's advertising.
7. To improve the morale of dealers and / or sales people
8. To encourage the potential customers to buy.
9. To open door for salesmen.
10. To create an awareness or interest of the products in the minds of customers.
11. To build a good business image.
12. To maintain a brand loyalty.
13. To make known the advantages of full use of the product.
14. To wipe off the wrong impressions created by competitors.
15. To inform about the product's availability.
16. To increase market share.
17. To keep good relation with traders.
18. To enter into new market.
Importance of advertising:
Advertising plays a very important role in modern business. It is a very effective method of sales promotion.
It has social and economic benefits which are as follows:
1. Advertising brings to the knowledge of the manufacturers the source of supply of the factors of
production like raw materials, stores, spare parts, labour, managerial personnel, and the prices at
which these factors of production can be procured. This information helps the manufacturers in
planning and undertaking production on wise lines.
2. By promoting mass distribution of goods, advertising contributes to mass production of goods
3. Advertising brings to the notice of the producers the distinctive features and the merits and demerits
of the various substitutes available in the market. This information helps the producers to improve
the quality of their products. Thus, advertising contributes to improvement in the quality of the
products available in the market.
4. Through advertising, dealers come to know of the new products coming to the market.
5. Advertising brings to the knowledge of the consumers the availability of new products and their
features, and helps them in buying their requirements intelligently.
6. Advertising, by bringing to the notice of the people good and cheap goods, contributes to reduction
and stability in the price levels of the goods
7. Advertising promotes competition in business. The competition in business is a healthy trend.
Page | 2
, 8. By encouraging mass production and distribution of goods, advertising gives a stimulant to transport
services
9. Advertising has been responsible for increase in employment. It increases employment opportunities
both directly and indirectly. Employment such as painters, artists, blocks makers, photographers,
editors.
10. Advertising is one of the contributing factors of industrialization. The mass production of goods,
facilitated by advertising, contributes to industrialization
11. Advertising contributes to availability of a variety of products and the introduction of new products
and new models.
12. By facilitating mass production, advertising has contributed to reduction in the cost of production per
unit.
Criticisms against advertising:
1. Advertising is a waste.
2. They are deceptive and misleading
3. Playing on human weakness, feelings, sentiments
4. Advertising does not lead to lower prices
5. Advertising has become vulgar and indecent
6. Leads to monopolies
7. It results in waste of national resources
8. Induces people to use articles which are harmful to their health
9. Lays emphasis on the brands and makes the consumers slaves to a particular brand.
Role of advertising in brand building:
Advertising is important for companies trying to direct consumer behaviour because it is an effective
method for mass selling and communications. The following are the ways in which advertising helps in
brand building.
1. Creates Awareness: Creating awareness of the product or services such as brand name and price is one
of the major roles of advertising. The awareness of the product or services can be created by highlighting
the unique features of the brand. Nowadays, due to intense competition, awareness is extremely required.
2. Persuasion: Through persuasive messages, the marketers try to provide reasons regarding the
superiority of their products as compared to competitors available in the market. Persuasion can be done
through creative advertising messages, product demonstration at trade fairs, offering free gifts, premium
offers and organizing contests.
3. Reminder: If target customers already have a positive approach towards a firm's product or service, then
a reminder objective may be necessary because the satisfied customers can be targets for competitors'
appeals. They should keep on reminding them about their presence in the market. For example,
'Raymond - the complete man' campaign is designed to remind the customers.
4. Brand Image: Advertising helps in building a good image of the brand in the minds of the target
audience. There are several factors, such as the character of the personality that endorses the brand, the
content of the advertising message, nature, and type of packaging and the type of programmes or events
sponsored, that can help to develop the brand image in the minds of the target audience.
5. Brand Loyalty: Advertising helps in developing brand loyalty, which results in repeat purchases and
favorable recommendations to others by existing customers. Sales promotion, effective personal selling,
timely and efficient direct marketing, and other techniques also help to develop brand loyalty.
Page | 3
Meaning:
Advertising is that activity by which visual or oral messages are addressed to the general public. Its
purpose is to inform or influence them in order to increase the sales of the advertiser. It is done with a view
to sell the goods or services, offered by the advertiser. It may also draw the readers or viewers to act
favourably towards the idea or institutions featured. It is paid for by a seller (sponsor). The seller or the
advertiser has to pay for the space (or time) through which the message (advertisement) appears. The aim is
to persuade people to buy more. Advertising creates desire for new products. The success of advertising
greatly depends upon effective advertising programme. An effective advertising naturally necessitates mass
production, thereby reduces unit cost by lowering the price of goods in favour of consumers.
Advertising and Advertisement:
The 'message' is known as advertisement. Advertisement is nothing more than a message.
Advertising is a process. It is a programme or series of activities necessary to prepare the message and bring
it to the intended persons or market. The reader knows who is behind the advertising as the sponsor is
openly identified in the advertisement itself. Payment is made by the sponsor to the media, who carry the
message.
Definition:
Littlefield defines it as "Advertising is mass communication of information intended to persuade
buyers as to maximize profits."
Hall defines it as "Salesmanship in writing, print or pictures or spreading information by means of
the written and printed word and the pictures."
Stanton says, "Advertising consists of all the activities in presenting to a group a non-personal, oral
or visual, openly sponsored message regarding a product, service or idea."
American Marketing Association defines advertising as "any paid form of non-personal
presentation and promotion of ideas, goods, or services by an identified sponsor".
From the above definitions, it is stated that advertising indicates that:
a. Advertisement is a message to large groups.
b. It is in the form of non-personal communication.
c. It persuades the general public to purchase the goods or services, advertised.
d. It is paid for by advertiser to publisher.
e. Advertising messages are identified with the advertiser.
Features of Advertising:
After a careful scrutiny of the above definitions, the essential elements of advertising can be listed as
follows:
1. Matter of Record: It is a matter of record furnishing information for the benefit of buyers. It guides or
helps buyers to make satisfactory purchases. The contents of an advertisement are what the advertiser
wants.
2. Non-personal Communication: It is a mass non-personal communication, reaching large groups of
buyers. It is not delivered by actual person. It is not addressed to a person. Whatever the form of
advertisement - spoken, written or visual, it is directed at a mass audience and not at the individual as in
personal selling.
Page | 1
,3. Persuasion of Buyers: Advertising complements or may substitute for personal selling. To persuade the
buyers the advertiser makes his products buyer-satisfying. It is an art of influencing the human action to
possess one's product.
4. Paid Form of Publicity: Advertising is a paid form and hence commercial in nature. Thus any
sponsored communication designed to influence buyer's behaviour is advertising because advertiser pays
for it.
5. Identifiable with the Sponsor: Advertising is identifiable with its sponsoring authority or advertiser. It
discloses or identifies the source of opinions and ideas, it presents.
Objectives, aims or purposes of advertising:
1. To introduce a new product (by building brand awareness among potential buyers).
2. To force middlemen to handle the product (pull strategy).
3. To build brand preference (by making it more difficult for middlemen to sell substitutes.
4. To remind users to buy the product (retentive strategy).
5. To popularize some change in marketing strategy (change in price, improvement in the product etc.).
6. To combat or neutralize competitor's advertising.
7. To improve the morale of dealers and / or sales people
8. To encourage the potential customers to buy.
9. To open door for salesmen.
10. To create an awareness or interest of the products in the minds of customers.
11. To build a good business image.
12. To maintain a brand loyalty.
13. To make known the advantages of full use of the product.
14. To wipe off the wrong impressions created by competitors.
15. To inform about the product's availability.
16. To increase market share.
17. To keep good relation with traders.
18. To enter into new market.
Importance of advertising:
Advertising plays a very important role in modern business. It is a very effective method of sales promotion.
It has social and economic benefits which are as follows:
1. Advertising brings to the knowledge of the manufacturers the source of supply of the factors of
production like raw materials, stores, spare parts, labour, managerial personnel, and the prices at
which these factors of production can be procured. This information helps the manufacturers in
planning and undertaking production on wise lines.
2. By promoting mass distribution of goods, advertising contributes to mass production of goods
3. Advertising brings to the notice of the producers the distinctive features and the merits and demerits
of the various substitutes available in the market. This information helps the producers to improve
the quality of their products. Thus, advertising contributes to improvement in the quality of the
products available in the market.
4. Through advertising, dealers come to know of the new products coming to the market.
5. Advertising brings to the knowledge of the consumers the availability of new products and their
features, and helps them in buying their requirements intelligently.
6. Advertising, by bringing to the notice of the people good and cheap goods, contributes to reduction
and stability in the price levels of the goods
7. Advertising promotes competition in business. The competition in business is a healthy trend.
Page | 2
, 8. By encouraging mass production and distribution of goods, advertising gives a stimulant to transport
services
9. Advertising has been responsible for increase in employment. It increases employment opportunities
both directly and indirectly. Employment such as painters, artists, blocks makers, photographers,
editors.
10. Advertising is one of the contributing factors of industrialization. The mass production of goods,
facilitated by advertising, contributes to industrialization
11. Advertising contributes to availability of a variety of products and the introduction of new products
and new models.
12. By facilitating mass production, advertising has contributed to reduction in the cost of production per
unit.
Criticisms against advertising:
1. Advertising is a waste.
2. They are deceptive and misleading
3. Playing on human weakness, feelings, sentiments
4. Advertising does not lead to lower prices
5. Advertising has become vulgar and indecent
6. Leads to monopolies
7. It results in waste of national resources
8. Induces people to use articles which are harmful to their health
9. Lays emphasis on the brands and makes the consumers slaves to a particular brand.
Role of advertising in brand building:
Advertising is important for companies trying to direct consumer behaviour because it is an effective
method for mass selling and communications. The following are the ways in which advertising helps in
brand building.
1. Creates Awareness: Creating awareness of the product or services such as brand name and price is one
of the major roles of advertising. The awareness of the product or services can be created by highlighting
the unique features of the brand. Nowadays, due to intense competition, awareness is extremely required.
2. Persuasion: Through persuasive messages, the marketers try to provide reasons regarding the
superiority of their products as compared to competitors available in the market. Persuasion can be done
through creative advertising messages, product demonstration at trade fairs, offering free gifts, premium
offers and organizing contests.
3. Reminder: If target customers already have a positive approach towards a firm's product or service, then
a reminder objective may be necessary because the satisfied customers can be targets for competitors'
appeals. They should keep on reminding them about their presence in the market. For example,
'Raymond - the complete man' campaign is designed to remind the customers.
4. Brand Image: Advertising helps in building a good image of the brand in the minds of the target
audience. There are several factors, such as the character of the personality that endorses the brand, the
content of the advertising message, nature, and type of packaging and the type of programmes or events
sponsored, that can help to develop the brand image in the minds of the target audience.
5. Brand Loyalty: Advertising helps in developing brand loyalty, which results in repeat purchases and
favorable recommendations to others by existing customers. Sales promotion, effective personal selling,
timely and efficient direct marketing, and other techniques also help to develop brand loyalty.
Page | 3
