AdvertisingtandtPromotiont(MKT621) VU
Lessont1
INTRODUCTIONtTOtADVERTISING
ThistcoursetistdesignedttotteachtandtguidetthetstudentsttotknowtandtlearntabouttAdvertisingt andtPro
motion.tIntthistcoursetwetwillttryttotacquainttyoutwithtvarioustaspectstandtapplicationstandtrequirem
ents.tBesidestteachingtyoutabouttthetintroductiontandthistorytoftadvertisingtthistwilltalsotguidetstude
ntstabouttitstgrowingtimportance,tdefinitiontandtvarioustaspects.tThet majortcomponentsttotlearntwil
ltbetitstskillstintmoderntworld,tthetoveralltimportancetandtsignificancetoftitstpracticetintdifferenttscen
arios.
Aftertgoingtthroughtthetcontentstoftfirsttlecture,tstudentstwilltbetablettotknowtabouttAdvertisingtandt
promotiontwithtitstgrowingtimportancetandtitstdefinitiontwithtdifferenttsegments:
A. IntroductionttotAdvertisingtandtPromotion.
B. Itstgrowingtimportance.
C. DefinitiontoftAdvertising.
D. ExplanationtoftPersonaltandtnon-personaltselling.
LECTUREtOVERVIEW
Thistlecturetintroducestthetstudentstwithtthetbackground,tdefinition,tandtgrowingtimportancetintthet
moderntworld.tDuringtthistwetwilltbetdiscussingtthetabovetmentionedtaspectstoftAdvertising.tWetwi
lltalsotbrieflyttrytandtexplaintthetdifferencetbetweentpersonaltandtnon-
tpersonaltsellingtandtrelatedtadvantagestandtdisadvantages.
INTRODUCTION
Intfactttodaytadvertisingtisteverytwhere,tontradio,tTV,tnewspapers,tbillboards,tmagazinestandtevent
ontthetsidetoftthettowntbuses.tThetglobaltmarketthastexpandedttremendously,tandtmanifolds.tAdvert
isingtservestthreetmaintpurposes:
1. Totgettortwintnewtcustomers.
2. Totincreasetusetoftproductstortservicestamongtexistingtcustomers.
3. Tothelptpotentialtcustomerstmaketatchoicetamongtcompetingtbrands.
Advertisingthastgreattinfluencetontustwhethertwetaretawaretoftittortnot.tLettustnowtfirsttoftallttryttotk
nowtabouttitstgrowingtimportance:
GROWINGtIMPORTANCEtOFtADVERTISING
• Wetseet100’stoftads.tEverytday.
• Consciouslytortsubconsciouslytadvertisementsthavettremendousteffect.
• Advertisingtcantnottonlytchangetbuyingtdecisiontbuttalsotchangestmindsett&tattitudetoftpeo
ple.
• Advertisingtreflectstthetculturetoftatnation.
• Advertisingt&tculturetbothtaffectteachtother.
• Advertisingtindustrytalsotsupportstmediatindustry.
• Intfacttmediatsurvivestontadvertisingtbecausettheytgothandtinthand.
• Advertisingtcantbetusedtastanteffectivettooltfortatsocialtcause.
• Advertisementtalsothelptintspreadingtinformationtabouttnewttechnologyt&tinnovations
• Advertisingt int today’st worldt ist nott fort spreadingt brandt awarenesst butt alsot showst ustwhe
retwetstandtintthetworldttoday.
©tCopyrighttVirtualtUniversitytoftPakistan 1
,AdvertisingtandtPromotiont(MKT621) VU
DEFINITIONtOFtADVERTISING
Nowtatdays,tAdvertisingthastassumedtimportanttroletintthistverytfasttdevelopingtandtcompetitivetw
orld.tIntorderttotunderstandtittfirsttwethavettotknowtwhattittmeanstortintothertwordsttotknowtitstdefinit
ion.tButtbeforetwetdefinetwetmusttknowti.e.tsixtsegmentstoftthetdefinitiontoftadvertising:
SixtSegments
1. Ittistpaidtformtoftcommunication.
2. ThetSponsortistidentified.
3. Mostt advertisingt triest tot persuadet ort influencet consumert tot do.t Somethingt thought intsom
etcasestittistmerelyttotmaketconsumerstawaretoftproducttortcompany.
4. Messagetistconveyedtthroughtdifferentttypestoftmedia.
5. Advertisingtmakestmessagetreachtlargetaudiencetoftpotentialtconsumers.
6. Advertisingtistatformtoftmasstcommunicationtthereforetittistnon-tpersonal.
BasedtontthetabovetthetmosttacceptedtstandardtdefinitiontuniversallytacceptedtistastdescribedtbytBo
veetint1992.tIttsaid:
“Advertisingtistthetnont-
tpersonaltcommunicationtoftinformationtusuallytpersuasivetintnaturetabouttproducts,tservicesto
rtideastbytidentifiedtsponsorstthroughtthetvarioustmedia”tLettustnowttryttotDISECTt&tEXPLAIN
t keyttermstPERSONALtandtNONt–tPERSONALtusedtintthetdefinitiontoftadvertising.
➢ Theretaret twotbasictwaysttotsell
Personallyt&tNon-Personally
Personaltsellingt–tWheretsellert&tbuyerthasttotbettogether.
Nont–tPersonalt-tSellertistapproachedtthroughtatmediumti.e.tadvertising.
AdvantagestoftNon-PersonaltSelling:
• Sellerthasttimettotdiscussteverythingtabouttthetproduct.
• Buyert hast timet tot askt questions,t gett answerst &t examinet evidencet againstt ort fort thetprod
uct.
• Sellertcantseetthetpersontwhomtproducttistbeingtsold.
• Sellertcantseetthetpersonttotwhomthe/shetistsellingtthetproduct.
• Sellertcanteasilytlocatetpotentialtbuyers.
Disadvantages:
• Ittistexpensivetbeingtlabortintensive.
• Timetconsuming.
• Sot seemst personalt sellingt ist bettert thant advertisingt whicht ist non-
personalt yettadvertisingtstilltremainstmostteffective.
Thereforet despitet thet factt thatt advertisingt event thought ist non-personalt selling,t itt ist certainlyteffective.
©tCopyrighttVirtualtUniversitytoftPakistan 2
,AdvertisingtandtPromotiont(MKT621) VU
Lessont2
INTRODUCTIONtTOtADVERTISING
LECTUREtOVERVIEW
Intthistlecturetwetwilltstudytthetreasonstandtadvantagestoftadvertisingtandtitstobjectives.tWetwilltals
otdiscusstvarioustsegmentstoftadvertisingtandtdifferenttaspectstoftdefinitiontbesidestbrieflytrelatingtt
otitsthistory.
WHYtTOtADVERTISE?tADVANTAGES
• Advertisingtisteverytwhere.
• Advertisertmaytnottseetindividualtconsumertyetthastresearcht(knowledge)tabouttthetcon
sumer.
• Advertisingtcantbetfartcheapertpertpotentialtcustomertthantpersonaltselling.
Sot–tAdvertisingtistbettertastatsalesttooltandtthoughtittistnon-personaltyettistmoreteffective.
Nowtthereforetwetmusttfurthertanalyzetintdepthtabouttthetdefinitiontoftadvertisingtbesidestundersta
ndingtpersonaltsellingtandtNontpersonaltastexplainedtbeforetintthetlasttlecture.tContinuingtwithtthets
tandardtdefinitiont lettusttaketuptonetbytonetimportanttcomponentstastunderlinedtbelow:
So,tjustttotreviewtthetdefinition
“Advertisingtistthetnont-
tpersonaltcommunicationtoftinformationtusuallytpersuasivetintnaturetabouttproducts,tservicestortid
eastbytidentifiedtsponsorstthroughtthetvarioustmedia.”
(Boveet1992)
Communication
Meanst throught whicht onet persont cant passt information,t ideast ort feelingst tot anothert throughtspeech
tortpictures.
Though,t communicationt usest allt sensest liket smell,t touch,t taste,t soundt &t sight,t onlyt twot aretusefulti
ntadvertisingti.e.tSoundt&tSight
Sound:tRadio,tTelevisiont—tmicro-soundtchipstintmagazines.
Sight:tThetmosttusefultmediumtoftcommunicationtliketprint,ti.e.t“Atpicturetistworthtatthousandtwords”
Information
Informationtistknowledge,tfacttortnews.tIttcomestintdifferenttforms:tCompl
etetortIncomplete!tBiasedtortdeceptive!
Whattittis?tWhattittlookstlike?tHowtittworks?tWhatt
aretitstbenefitst&drawbackstetc?
PaidtFor
Iftantadvertisementtistcreated,tplacedtintthetmediatsotthetcostttotcreatetandttimetortspacetintthetmediatm
usttbetpaidtfor.
Thististthetpoint,twheretadvertisingtdepartstfromtPublictRelations.
Persuasive
Purposet oft advertisementt ist tot Identifyt &t differentiatet onet productt fromt anothert andt tot persuade
tthetcustomertfortpreferringtonettotanother.
©tCopyrighttVirtualtUniversitytoftPakistan 3
, AdvertisingtandtPromotiont(MKT621) VU
Products,tServicestortIdeas
Thingstadvertisertwantstconsumersttotbuy.tTheretaretthreetbasictdifferentiationstintproducts
1. Perceptiblet–tObviouslytdifferenttfromtother-liketcolor,tsize,tshapetetc.
2. Imperceptiblet–tThosetwhichtexisttbuttaretnottobvious.
3. Induced.t–tNotobvioustdifferencetbuttinformtpeopletabouttthetdifference
IdentifiedtSponsors
Tellingtaudiencetabouttthetsponsors
VarioustMedia
Liket Newspapers,t Magazines,t Radio,t TV,t Billboards,t hoardings,t balloons…
Sot “anythingt
whichtistusedttotcommunicatetideastfromtonetpersonttotanothertintnontpersonal-way.”
HISTORYtOFtADVERTISING
1704 1sttnewspapertad,tseekingtbuyertfortantOystertBaytwastpublished.
1843 1sttAd.tAgencytsettuptintPhiladelphia
1882 Advertisingtoftatsoaptbrandtwastdonetwithtathugetbudgettoft11000tUS$.
1893 Atfamoustbeveragetbrandtwastregisteredtastattradetmark.
1899 J.tWalters:t 1sttagencytopenstantofficetintU.K.
1923 1sttentertainmenttprogramtwastsponsoredtbytantadvertiser.
1947 Jt.WaltertThompsont1sttagencyttotcrosst100Milt$tintbilling.
1976 IndiantcommercialtTVtlaunched.
1978 1sttTVtcommercialtistlaunched.
1990 AtnewtMediumtInternettistborn.
1993 5tmilliontinternettuserstgettontline.
1999 Internettadvertisingtbreakst2tBilliontUS$tmark.
2003 TVtshowtwithtbuilttintadvertisingtistplanned.
©tCopyrighttVirtualtUniversitytoftPakistan 4
Lessont1
INTRODUCTIONtTOtADVERTISING
ThistcoursetistdesignedttotteachtandtguidetthetstudentsttotknowtandtlearntabouttAdvertisingt andtPro
motion.tIntthistcoursetwetwillttryttotacquainttyoutwithtvarioustaspectstandtapplicationstandtrequirem
ents.tBesidestteachingtyoutabouttthetintroductiontandthistorytoftadvertisingtthistwilltalsotguidetstude
ntstabouttitstgrowingtimportance,tdefinitiontandtvarioustaspects.tThet majortcomponentsttotlearntwil
ltbetitstskillstintmoderntworld,tthetoveralltimportancetandtsignificancetoftitstpracticetintdifferenttscen
arios.
Aftertgoingtthroughtthetcontentstoftfirsttlecture,tstudentstwilltbetablettotknowtabouttAdvertisingtandt
promotiontwithtitstgrowingtimportancetandtitstdefinitiontwithtdifferenttsegments:
A. IntroductionttotAdvertisingtandtPromotion.
B. Itstgrowingtimportance.
C. DefinitiontoftAdvertising.
D. ExplanationtoftPersonaltandtnon-personaltselling.
LECTUREtOVERVIEW
Thistlecturetintroducestthetstudentstwithtthetbackground,tdefinition,tandtgrowingtimportancetintthet
moderntworld.tDuringtthistwetwilltbetdiscussingtthetabovetmentionedtaspectstoftAdvertising.tWetwi
lltalsotbrieflyttrytandtexplaintthetdifferencetbetweentpersonaltandtnon-
tpersonaltsellingtandtrelatedtadvantagestandtdisadvantages.
INTRODUCTION
Intfactttodaytadvertisingtisteverytwhere,tontradio,tTV,tnewspapers,tbillboards,tmagazinestandtevent
ontthetsidetoftthettowntbuses.tThetglobaltmarketthastexpandedttremendously,tandtmanifolds.tAdvert
isingtservestthreetmaintpurposes:
1. Totgettortwintnewtcustomers.
2. Totincreasetusetoftproductstortservicestamongtexistingtcustomers.
3. Tothelptpotentialtcustomerstmaketatchoicetamongtcompetingtbrands.
Advertisingthastgreattinfluencetontustwhethertwetaretawaretoftittortnot.tLettustnowtfirsttoftallttryttotk
nowtabouttitstgrowingtimportance:
GROWINGtIMPORTANCEtOFtADVERTISING
• Wetseet100’stoftads.tEverytday.
• Consciouslytortsubconsciouslytadvertisementsthavettremendousteffect.
• Advertisingtcantnottonlytchangetbuyingtdecisiontbuttalsotchangestmindsett&tattitudetoftpeo
ple.
• Advertisingtreflectstthetculturetoftatnation.
• Advertisingt&tculturetbothtaffectteachtother.
• Advertisingtindustrytalsotsupportstmediatindustry.
• Intfacttmediatsurvivestontadvertisingtbecausettheytgothandtinthand.
• Advertisingtcantbetusedtastanteffectivettooltfortatsocialtcause.
• Advertisementtalsothelptintspreadingtinformationtabouttnewttechnologyt&tinnovations
• Advertisingt int today’st worldt ist nott fort spreadingt brandt awarenesst butt alsot showst ustwhe
retwetstandtintthetworldttoday.
©tCopyrighttVirtualtUniversitytoftPakistan 1
,AdvertisingtandtPromotiont(MKT621) VU
DEFINITIONtOFtADVERTISING
Nowtatdays,tAdvertisingthastassumedtimportanttroletintthistverytfasttdevelopingtandtcompetitivetw
orld.tIntorderttotunderstandtittfirsttwethavettotknowtwhattittmeanstortintothertwordsttotknowtitstdefinit
ion.tButtbeforetwetdefinetwetmusttknowti.e.tsixtsegmentstoftthetdefinitiontoftadvertising:
SixtSegments
1. Ittistpaidtformtoftcommunication.
2. ThetSponsortistidentified.
3. Mostt advertisingt triest tot persuadet ort influencet consumert tot do.t Somethingt thought intsom
etcasestittistmerelyttotmaketconsumerstawaretoftproducttortcompany.
4. Messagetistconveyedtthroughtdifferentttypestoftmedia.
5. Advertisingtmakestmessagetreachtlargetaudiencetoftpotentialtconsumers.
6. Advertisingtistatformtoftmasstcommunicationtthereforetittistnon-tpersonal.
BasedtontthetabovetthetmosttacceptedtstandardtdefinitiontuniversallytacceptedtistastdescribedtbytBo
veetint1992.tIttsaid:
“Advertisingtistthetnont-
tpersonaltcommunicationtoftinformationtusuallytpersuasivetintnaturetabouttproducts,tservicesto
rtideastbytidentifiedtsponsorstthroughtthetvarioustmedia”tLettustnowttryttotDISECTt&tEXPLAIN
t keyttermstPERSONALtandtNONt–tPERSONALtusedtintthetdefinitiontoftadvertising.
➢ Theretaret twotbasictwaysttotsell
Personallyt&tNon-Personally
Personaltsellingt–tWheretsellert&tbuyerthasttotbettogether.
Nont–tPersonalt-tSellertistapproachedtthroughtatmediumti.e.tadvertising.
AdvantagestoftNon-PersonaltSelling:
• Sellerthasttimettotdiscussteverythingtabouttthetproduct.
• Buyert hast timet tot askt questions,t gett answerst &t examinet evidencet againstt ort fort thetprod
uct.
• Sellertcantseetthetpersontwhomtproducttistbeingtsold.
• Sellertcantseetthetpersonttotwhomthe/shetistsellingtthetproduct.
• Sellertcanteasilytlocatetpotentialtbuyers.
Disadvantages:
• Ittistexpensivetbeingtlabortintensive.
• Timetconsuming.
• Sot seemst personalt sellingt ist bettert thant advertisingt whicht ist non-
personalt yettadvertisingtstilltremainstmostteffective.
Thereforet despitet thet factt thatt advertisingt event thought ist non-personalt selling,t itt ist certainlyteffective.
©tCopyrighttVirtualtUniversitytoftPakistan 2
,AdvertisingtandtPromotiont(MKT621) VU
Lessont2
INTRODUCTIONtTOtADVERTISING
LECTUREtOVERVIEW
Intthistlecturetwetwilltstudytthetreasonstandtadvantagestoftadvertisingtandtitstobjectives.tWetwilltals
otdiscusstvarioustsegmentstoftadvertisingtandtdifferenttaspectstoftdefinitiontbesidestbrieflytrelatingtt
otitsthistory.
WHYtTOtADVERTISE?tADVANTAGES
• Advertisingtisteverytwhere.
• Advertisertmaytnottseetindividualtconsumertyetthastresearcht(knowledge)tabouttthetcon
sumer.
• Advertisingtcantbetfartcheapertpertpotentialtcustomertthantpersonaltselling.
Sot–tAdvertisingtistbettertastatsalesttooltandtthoughtittistnon-personaltyettistmoreteffective.
Nowtthereforetwetmusttfurthertanalyzetintdepthtabouttthetdefinitiontoftadvertisingtbesidestundersta
ndingtpersonaltsellingtandtNontpersonaltastexplainedtbeforetintthetlasttlecture.tContinuingtwithtthets
tandardtdefinitiont lettusttaketuptonetbytonetimportanttcomponentstastunderlinedtbelow:
So,tjustttotreviewtthetdefinition
“Advertisingtistthetnont-
tpersonaltcommunicationtoftinformationtusuallytpersuasivetintnaturetabouttproducts,tservicestortid
eastbytidentifiedtsponsorstthroughtthetvarioustmedia.”
(Boveet1992)
Communication
Meanst throught whicht onet persont cant passt information,t ideast ort feelingst tot anothert throughtspeech
tortpictures.
Though,t communicationt usest allt sensest liket smell,t touch,t taste,t soundt &t sight,t onlyt twot aretusefulti
ntadvertisingti.e.tSoundt&tSight
Sound:tRadio,tTelevisiont—tmicro-soundtchipstintmagazines.
Sight:tThetmosttusefultmediumtoftcommunicationtliketprint,ti.e.t“Atpicturetistworthtatthousandtwords”
Information
Informationtistknowledge,tfacttortnews.tIttcomestintdifferenttforms:tCompl
etetortIncomplete!tBiasedtortdeceptive!
Whattittis?tWhattittlookstlike?tHowtittworks?tWhatt
aretitstbenefitst&drawbackstetc?
PaidtFor
Iftantadvertisementtistcreated,tplacedtintthetmediatsotthetcostttotcreatetandttimetortspacetintthetmediatm
usttbetpaidtfor.
Thististthetpoint,twheretadvertisingtdepartstfromtPublictRelations.
Persuasive
Purposet oft advertisementt ist tot Identifyt &t differentiatet onet productt fromt anothert andt tot persuade
tthetcustomertfortpreferringtonettotanother.
©tCopyrighttVirtualtUniversitytoftPakistan 3
, AdvertisingtandtPromotiont(MKT621) VU
Products,tServicestortIdeas
Thingstadvertisertwantstconsumersttotbuy.tTheretaretthreetbasictdifferentiationstintproducts
1. Perceptiblet–tObviouslytdifferenttfromtother-liketcolor,tsize,tshapetetc.
2. Imperceptiblet–tThosetwhichtexisttbuttaretnottobvious.
3. Induced.t–tNotobvioustdifferencetbuttinformtpeopletabouttthetdifference
IdentifiedtSponsors
Tellingtaudiencetabouttthetsponsors
VarioustMedia
Liket Newspapers,t Magazines,t Radio,t TV,t Billboards,t hoardings,t balloons…
Sot “anythingt
whichtistusedttotcommunicatetideastfromtonetpersonttotanothertintnontpersonal-way.”
HISTORYtOFtADVERTISING
1704 1sttnewspapertad,tseekingtbuyertfortantOystertBaytwastpublished.
1843 1sttAd.tAgencytsettuptintPhiladelphia
1882 Advertisingtoftatsoaptbrandtwastdonetwithtathugetbudgettoft11000tUS$.
1893 Atfamoustbeveragetbrandtwastregisteredtastattradetmark.
1899 J.tWalters:t 1sttagencytopenstantofficetintU.K.
1923 1sttentertainmenttprogramtwastsponsoredtbytantadvertiser.
1947 Jt.WaltertThompsont1sttagencyttotcrosst100Milt$tintbilling.
1976 IndiantcommercialtTVtlaunched.
1978 1sttTVtcommercialtistlaunched.
1990 AtnewtMediumtInternettistborn.
1993 5tmilliontinternettuserstgettontline.
1999 Internettadvertisingtbreakst2tBilliontUS$tmark.
2003 TVtshowtwithtbuilttintadvertisingtistplanned.
©tCopyrighttVirtualtUniversitytoftPakistan 4
