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Summary - Introduction to Advertising - UACOA4501SE1

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Study revision notes on Introduction to Advertising with the following topics covered: Introduction of advertising concepts- functions - Types of Advertising - Factors determining opportunities of a product/service/idea. Role of advertising agencies and their responsibilities - scope of their work and functions - Ethical issues - Identifying target groups -Laws in advertising. Advertising Statutory Bodies in India - Types of advertising – Basic characteristics of a typical advertisement –Reaching target groups - Local advertising – Feedback on impact of advertisement - Business promotion. Creative advertising messages -Case study.

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Introduction to Advertising: -
William J. Stanton - Advertising consists of all the activities involved in presenting to an
audience a non-personal, (NP) sponsor-identified (SI), paid-for message (P) about a product
or organisation (NPSIP). It comes from the word “advertere” meaning " to turn the
attention.”


Advertising Marketing

Under Marketing Consists of advertising

Short term Long term

Awareness to consumer Organic consumer attraction


Nature of Advertising: - (AU-CM-PC)
1. Attention seeker - “to turn the attention” to a certain product, service or
organisation
2. Has a USP - needs to have or develop a product appeal to stand out of the range of
similar products
3. Consumer-oriented - Advertising expands the knowledge of consumers. With this
nature of advertising, consumers can have the skills to know the products, brands,
or services that exist within the market. Every product or service is made for
consumer satisfaction.
4. Uses multiple media - Multiple platforms are used to advertise a particular product.
It can be newspapers, TV, radio, billboards, magazines, films (product placement),
internet, social media, etc.
5. Paid form - Whatever the media may be, there is an involvement of paid material.
6. Calls for Action - Advertisements are designed to prompt an immediate response or
encourage an immediate sale.

PPT-2
Features of Advertising: - (CIP-PPI-CAM)
1. Communication - it is a means of mass communication. It reaches the public at a large
level. It uses verbal and non-verbal cues.
2. Information - informs buyers about product benefits after purchase. Ideally, the
information should be complete and true.
3. Persuasion - the advertiser expects to create a favourable attitude which will lead to the
desired action of purchase. He/she wishes to attempt to convert the perspective of the
consumer. It is a kind of indirect “salesmanship.”
4. Profit maximisation - true advertising = increasing cost < promoting sales
5. Non-personal presentation - there is absence of individualistic appeal or salesmanship.
6. Identified Sponsor - a business or firm that pays for advertising is a sponsor.

,7. Consumer Choice - Ads. facilitate consumer choice and present goods to be purchased as
per choice and budget requirements.
8. Art, Science & Profession - involves all these fields.
9. Element of marketing mix - it promotes a said product/ service/ organisation, etc.

Importance of Advertising: -
1. Spreading awareness -
Advertisements aware people about new or existing products and services in the market
that will accomplish their needs or solve their problems. Details of the product should be
made clear.

2. Popularising a Brand -
Manufacturers come out of the group and make their name a brand because they applied
the phenomenon of advertising nicely.

3. Increasing demand -
The target customer of advertisements is typically big, whether you’re advertising in
Newspapers, magazines, Billboards, radio, or television. A well-made or delivered
advertisement will satisfy the public that they should buy the product or try it at once.

4. Increasing profits -
The primary motive of advertisements is to generate sales or deliver a message. If you
execute your advertisement well, you will get a good conversion rate and great sales.
Increased sales, of course, mean increased profits. This hence, leads to generating a good
margin.

5. Maintains the existing market -
A company's success is shown not only in creating a market but also in its maintenance and
expansion as per the changing environment. A forward-looking company or a going concern
always has its eyes on future business prospects.

6. Acts like a salesperson -
Advertising has been rightly described as salesmanship. That is why most retail giants do not
employ a large number of travelling salespersons, as their advertising is replacing that.

7. Drives decision-making -
In the present day, the variety of products and services makes buying a complex process.

Benefits: -
● Consumer awareness
● Launch of a new product

, ● Creates goodwill
● Increases market

Demerits: -
● Wastage of national resources
● Increased cost
● Difficult survival of small companies
● Deferred revenue expenditure

Objectives: -
1. To introduce a new product by creating interest for it among the prospective customers.
2. To support a personal selling programme. Advertising maybe used to open customers’
doors for salesmen.
3. To reach people inaccessible to salesmen.
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 the product.
Dealers are attracted towards a product which is advertised effectively.
8. To warn the public against imitation of an enterprise’s products.

Functions: -
● Promotion of Sales
● Introduction of New Product
● Creation of Good Public Image
● Mass Production
● Research
● Brand building
● Value Creation
● Education of People
● Support to Press

PPT-3
Scope of Advertising: - = (COMM-PAAST)
1. Message - fulfils at least one of Maslow’s needs = physiological, safety, social,
esteem, self-actualisation
2. Product
3. Media - audio, video, print, billboards, social media
4. Organiser

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