Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Promotion Mix
What is Advertising ?
Functions of Advertising
1.Information function
2. Precipitation Function
Ad moves a consumer closer to buying a product in
step by step manner/fashion
Customer go through 7 steps process to reach the act
of purchase. ( Lavidge & Steiner)
a. Unawareness of goods or services
b. Awareness of product
c. Knowledge of what the product offers
d. Liking for or a favorable attitude towards the product
e. Preference for one brand over others
f. A desire to buy the product & a conviction that buying
it would be wise.
g. Purchase
3.Persuasive function
The process of moving consumers to purchase.
4.Reinforcement function
Making customers feel good about their previous
decisions to buy a product
e.g. The Wagon R is rated best by
customers !!!
5.Reminder function
To keep advertisers brands name fresh ,
alive in the minds of the target customers.
6.Value Adding function
To increase the perceived value of a brand
through advertising.
To make the brand more valuable in the
eyes of consumers.
Other functions
Reduces middlemen
Enhances goodwill of the company
Positive impact on employees
Sense of security among employees
Increases production , sales
Industrial growth
1.Benefits to Consumers
Adds perception utility to product
(Positively influence the perception of consumers
about the product/service)
Helps in making purchase decisions
Gives consumers an opportunity for comparison
Provides product information, features, benefits, price
, availability
Ensures better quality ( Ad ensures that customers
are drawn to the product at least for a trial order)
Saves customers times in shopping
Advertising encourages competition & which helps
consumers to get quality products/service at
reasonable price.
2.Benefits to Manufacturer
Ads create customers
Ads increase the sales of company
Enables manufacturer to introduce the
product in the market
Advertising helps to control the product
prices ( Specially retail prices)
Advertising helps manufacturer in
informing the market about the changes
in the product/service
Advertising acts as a salesman
Advertising widens the market
3. Benefits to Society
Increases the standard of living in the society
Increases demand, desires
Increases production & consumption
Leads to produce better & cheaper products
More & More people to buy the products
Provides employment opportunities
Provides information to the masses
Educative role of advertising (School Chale Hum)
Due to ads , it becomes very economical for the
consumers to access the print & electronic media.
Ads also give social contribution
(Ads about pollution, environment, energy
conservation, fight against cancer etc i.e. gives
social messages)
4.Benefits to Salesman
Creates colorful background for the
salesman
Makes salesmans job easier
Instills confidence in the salesman
Limitations of Advertising
Ads can not sell a bad product twice
Limited capacity to reach a selected audience
(Requirements of all consumers are not same
Also they may not reach the customers when they are in buying
mood & this adds to the cost of advertising)
Advertisements are rigid
(Ads once set cant be adjusted to the reactions of the consumers,
Cant answer to the objections & queries of the consumers
Ads are not completely believable
( Exaggeration, No mention of weaknesses of product)
No complete information
Advertising can not conflict with the cultural values of the society
Ads can persuade but cant compel people to buy a product.
Ads can be successful only when it is well coordinated with the other
elements of marketing mix.
Language problem in advertising
Cost of advertising
Bombardment of ads makes the customers irritate
Economic Aspect
Effects on production, Consumers, Markets, Business Cycle
( Recession, Depression, Recovery & Boom)
Creates employment opportunities
Affects production, production cost, product price
( Production Increases-Price decreases)
Effective tool for business growth
Helps in market expansion
Helps in establishing economic stability
Creates investment opportunities
Industrial growth Agricultural Growth- Growth of National Income
Increases demand- Increases Consumption & production leads too
industrial growth.
Increases competition Leads to new products
Demand for agricultural produce also increases due to higher
consumption
Social development
Opportunity to select proper product
Increases importance of consumer
Enhances knowledge
Some examples of the Advertisements
with social aspects:Grow-more-trees
Drink milk
Eat healthy food,
Say no to drugs
Get your child vaccinated in time
Consumer protection
Types of advertising
1.Pioneering advertising
To develop primary demand for a newly developed product category
( At introductory stage of the product)
Initial ads by vacuum cleaners, microwave, black & white tv
2.Competitive advertising
Influence demand for brand in the growth phase of the PLC.
Often uses emotional appeal.
To increase the demand of a specific brand .
( For the product in the growth stage)
a. Direct type/Direct Action advertising
Seeks to stimulate direct buying action
To seek an immediate response to the ad in the form of reader
sending an order for the goods advertised or a request for further
information.
Air India ad giving price ,time table &phone number on which a
customer may call for reservation (Direct action)
Air India ad when suggests that you mention Air Indias name when
talking to your travel agent.
4. Institutional ad
b.
.
.
.
Advertising Media
Magazines
Merits
Longer life
Visual display
Selectivity
Geographical flexibility
Demerits
Inflexibility ( No ease of release)
Waste in circulation
Costlier
Restricted frequency
Radio
Merits
Selectivity ( Advertiser can advertise only
in targeted markets)
Instant & flexible medium ( Not like TV)
Human touch ( Human voice)
Mass coverage
Economy
Demerits
Lack of illustration
Message perishability
Limited time
Television
Merits
Deep impact
Mass communication media
Manufacturer have upper hand in distribution
Best presentation ( Audio, Video, graphics )
Image building
Demerits
Time consuming
Short life
A costly medium
The clutter problem ( Overcrowding of too many
commercials in very short span of time)
Clutter reduces the effectiveness of the ad
An immobile medium
Demerits
Costly to prepare ad film but not the slides.
Limited coverage
Resentment from viewers ( May irritate to
viewers)
Demerits
Copy is brief
No selectivity of specific type of audience is
possible
Difficult to measure the effectiveness of this
media.
High selectivity
Personal touch
Deep impact
Measurement of effectiveness
Demerits
Higher cost
Low reader interest
Warrants special skill ( To be effective this
media needs to be prepared very creatively &
requires special talent)
Media characteristics