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To in form
1. Advertising serves to inform the public of the availability of a new product or service which
is being sold in the market, e.g. advertising a new brand of toilet soap or announcing the
opening of a new hairdressing salon.
2. This is aimed at creating a demand for the new product. The new product has to be made
known to the public before the goods are actually available for sale. The advertisement also
serves to induce the wholesalers and the retailers to stock up the new goods.
3. This type of advertising is called informative advertising. It is not only restricted to new
products but is also used to inform people of new uses of a product, of how a product works,
of new price changes, of names and addresses of retailers selling a certain product, or even
of a new bus timetable.
4. What is important is that it makes no attempt to persuade but merely informs the public of
the availability of the product, its uses and advantages, price, quality, terms of sale, etc.
5. under informative advertising the following goods and services are advertised:
- Advertising in Trade and Technical Journals: These advertisements contain technical
information about goods.
- Advertising of Particular Events: Trade fairs, exhibitions, concerts and sporting activities are
examples of such advertising. In this type people are informed about such events and are
persuaded to attend such events.
- Advertising of Employment Opportunities: In this type people come to know about the
various employment opportunities available.
To persuade
1. Advertising also serves to persuade the public to buy some goods or services, e.g. a
company seeks to induce the public to buy its particular brand of detergent in preference to
others or a travel agency advertises the better quality of service it can provide to its
customers.
2. This type of advertising is called persuasive advertising. It not only informs but also
persuades the public into purchasing the advertised product by using subtle techniques. It
aims at extending the demand for the good or service advertised. In other words, an
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advertiser aims to increase the sale of its product. By selling more, a firm increases its
revenue and might pay a lower unit cost as goods are produced on a larger scale. The net
profit of the firm would then increase if these benefits are greater than the costs of
advertising.
To remind
1. Advertising also serves to remind consumers of existing products; that the product may be
needed in the near future and where the product can be bought.
2. It is necessary for the advertiser to draw the attention of consumers to his product
constantly and to keep away from other competitive brands which may be heavily advertised.
3. It aims to keep the name of the product before the public. For example, a newspaper
advertisement may carry a picture of a bottle drink or a bus may carry the name of a firm.
They say nothing but serve a useful purpose in reminding the public of the name of the
product or service. Many products are branded to distinguish them from similar products.
Brand names are registered so other competitors cannot copy them. Some brand names are
so well known that advertisements often show only the brand name and the product itself is
not mentioned.
4. This type of advertising is called reminder advertising. A related form of advertising is
reinforcement advertising which seeks to assure current purchasers that they made the right
choice.
5. Reminder advertising aims at sustaining the demand for the good or service advertised.
BENEFITS OF ADVERTISING
1. Advertising increases profits and therefore the producer can lower the price of his
goods.
2. Advertising helps in providing information to the customer of a particular product.
3. Advertising helps in launching new products.
4. Advertising helps to introduce new products, thus improving the standard of living.
5. It is believed that advertised goods are of better quality than other goods.
6. Advertising maintains the price of newspapers at a reasonable level.
7. It helps to increase sales.
8. It provides employment opportunities.
9. It helps to create goodwill for the firm.
10. It gives wide choice to customer.
11. It helps the salesman in their efforts of promoting sale.
12. New product can find market only through advertising
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Positive:
1. It generates employment.
2. It yields revenue for the public media which is indirectly an income for the government.
3. It educates the society.
Negative:
1. Ads can mislead the customers to try out the lice goods.
2. Ads can turn the society towards flair for sex, and violence.
3. Ads can lead to waste of resources.
DANGERS OF ADVERTISING:
To consumer:
1. Consumers are misled by advertisements.
2. Customers may have difficulty in choosing a brand.
3. Customers may make unnecessary purchase.
4. Customers may be irrational in buying.
To producer:
1. Production costs increase.
2. The expenditure may not be justifiable.
3. The manufacturer may incur financial loss, if he engages in competitive advertising.
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TYPES OF ADVERTISEMENTS
Persuasive Advertising
In this type the advertiser tries to persuade the public to buy his product, by explaining the
various good qualities that the product possesses over other products.
Competitive Advertising
This is carried out by different producers of different brands of the same product. Each
producer tries to compete with other producers in trying to capture the market. The advertiser
uses techniques that are persuasive and aggressive to achieve his target. Example, the
advertiser claims that his product is best in terms of quality/performance/durability.
Example: Biggs Butter is best.
Informative Advertising
In this type information is passed on to the consumers about availability of products, changes
in fashion and how to use the products. Under informative advertising the following goods
and services are advertised:
- Advertising in Trade and Technical Journals: These advertisements contain
technical information about goods.
- Advertising of Particular Events: Trade fairs, exhibitions, concerts and sporting
activities are examples of such advertising. In this type people are informed
about such events and are persuaded to attend such events.
- Advertising of Employment Opportunities: In this type people come to know
about the various employment opportunities available.
ADVERTISING MEDIA:
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reach a large number of viewers as 3. There is high absolute cost – the cost
they have wide exposure. in producing an airing television
3. Advertisements can be repeated to commercial is very high and requires
the point where a large number of big budget.
viewers have seen the advertisements 4. The life span of a given advertising
to create an effective and lasting message is short unless it is recorded.
impact. 5. There is less audience selectively as
4. The advertisement can be directed television commercials tend to reach
at national or regional audience. mass audience, whereas the magazine
5. The time chosen for airing an can be more selective.
advertisement can suite the target
audience, e.g. Toys can be advertised
during children’s programme.
6. There is high audience attention
and personal impact.
7. The use of the product can be
demonstrated and explained.
8. The viewers can be invited to
respond immediately by dialing a
telephone number.
(k) The internet 1. It is an interactive medium where 1. The coverage is limited only to those
the user can key in input and obtain who surf the internet and visit the
response immediately. website.
2. The medium uses multimedia to 2. The advertising message placed has
create realism in advertisements. to compete with many other messages
3. The advertiser can place the for attentions.
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Target market
1. Target market refers to the group of people that the advertisement is aimed at. Groups of
people may differ in terms of income, age or sex. The medium chosen must fit the target
group, i.e. the group of people who will likely buy the product or service. For example, if you
are trying to reach the female market, then women's magazines may be appropriate. If you
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are trying to reach to children, then you may select television as the medium especially
during children's programmes.
Cost
1. The cost of using the medium should be considered in relation to the budget or the
amount of funds available and the circulation of the medium. For example, a small firm
intends to advertise the sale of used cars but it has allocated a small budget for this purpose.
As such, we can rule out television as a choice as the cost of advertising on television is very
high. Instead, the firm may put a small advertisement in the newspaper.
2. The advertiser should also weigh the relative benefits of the media with their relative costs
when making a choice. Although the cost of advertising on television may be high, the size of
the audience it will reach is great, resulting in lower cost per exposure.
3. The standard criterion for comparing media is cost per thousand, i.e. the cost of reaching
1000 members of the target audience. Cost per thousand enables the advertiser to compare
the cost of different media, such as television versus radio or magazine versus newspaper.
Flexibility
1. Flexibility refers to the ease with which the advertiser can change the advertisement so as
to adapt to different conditions and circumstances. As a medium, the magazine generally
has less flexibility than the newspaper. As the former requires the finalized layout weeks
before publication, the advertisement in the magazine cannot be changed easily, whereas
the advertisement in a newspaper can be changed days before its publication. Radio
provides greater flexibility as the advertiser can change the advertisement more easily, even
on the day the advertisement is aired.
Noise
1. The 'noise level' refers to the level of distraction for the targeted audience. The noise level
for an advertisement in the newspaper is great, meaning that other advertisements in the
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newspaper as well as news reports distract the reader's attention from the advertising
message. On the other hand, television commercials encounter a lower level of distraction
because the commercials are aired one at a time and can capture the viewers' attention.
Compared with the newspaper and the television, the cinema encounters the lowest level of
distraction as a medium - an advertising message can capture the full attention of the
audience in a cinema.
Lifespan
The lifespan of an advertisement refers to the length of time an advertisement will be on
display. Different media have different life spans. For example, a radio or a television
commercial has short lifespan - it will last only for a few seconds. Listeners cannot replay the
commercial unless they record the programme. On the other hand, an advertisement in the
newspaper or the magazine has a longer lifespan as the advertisement can be read and re-
read several times. It can also be filed and passed on to other people.
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advertising Ramee on television, the following are the advantages of advertising on television
over the other media:
(i) Instant noodle is a product of general demand as it is likely to be consumed by most
people. Television represents the best choice as it can reach a large number of audience
including children, the illiterate and those who do not read the newspaper.
(ii) Television commercials combine sight, sound and movements which can create a more
dramatic impact than the other media.
(iii) Advertisements of Ramee on television can be repeated to the point where a sufficient
number of viewers have seen the advertisements to create an effective and lasting impact.
(iv) The advertisements can be aired at the national level.
(v) There is high audience attention.
(vi)The time chosen for airing the advertisement for Ramee can suit the target audience, e.g.
during snack or meal times.
2. An established company intends to market an expensive camera. The prospective buyers
are likely to be photograph enthusiasts. The general public is probably not interested in this
product due to its high price and the use of this camera requires high level of competency.
The camera has several new features which need to be explained to the prospective buyers.
State, with reasons, which advertising medium you would recommend. The company could
use an up-market magazine, a popular photography magazine or a journal/magazine
subscribed by photography enthusiasts as the advertising medium.
(e) An advertisement in the magazine enjoys a longer life span than the newspaper.
(f) The advertising message in the magazine can be read in a leisurely manner. It can be
read and re-read. It can also be filed for future reference.
3. Miss Wong Meilin intends to advertise for the sale of her used car a three-year old Honda
Civic. She thinks the prospective buyers will probably be those in the same town that she is
staying now. She does not intend to spend a lot of money on the advertisement Can you
advise her on the medium she should choose to place the advertisement? State the reasons
for your choice of the medium.
Miss Wong Meilin could use the 'Classified Ad' column in a local newspaper as the
advertising medium.
4. Mr. Ramasamy intends to sell Indian shawls at a special price by post. A shawl is a large
piece of woolen cloth which is worn by women over their shoulders or head, or which is
wrapped around a baby to keep it warm. Mr. Ramasamy thinks that the prospective buyers
are largely Indian women and he has obtained a list of names and addresses of those Indian
women who will likely buy this product. If you were Mr. Ramasamy, which medium will you
choose to market your special offer Indian shawls? State your reasons for the choice.
Mr. Ramasamy could use the direct mail as the advertising medium.
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facsimile transmission.
(c) There is no competition for the same medium.
(d) As the product is a special offer item, Mr. Ramasamy is not prepared to spend a lot of
money on advertising through other more expensive media.
METHODS OF APPEAL
Devices and methods of appeal e.g. music, colours, famous people and emotions.
“SEARCHE”
Social acceptance:
A consumer could make more friends if a particular brand of deodorant is used.
Economy:
Bike manufacturers advertise their products highlighting the less fuel
consumption and more mileage.
Ambition and success:
The customer can be persuaded that if he buys a particular brand of
cloths he could get a better job.
Romance:
If a woman buys a particular cream she could become more beautiful
and attractive.
Comedy:
If an advertisement is amusing the product shown will be remembered
by the consumers and therefore they might buy it.
Hero worship:
A well-known personality can be used to advertise the product. It is
hoped that consumer will buy the product because of the appeal of the
p e r s o n a l i t y.
Easy life:
Buying a new brand of washing machine will give the consumer more
leisure.
SALES PROMORTION
Sales Promotion, element of the marketing process that can close the sale of good or
services to a potential customer by providing the incentive to buy. Sales promotion,
advertising, and salesmanship are the major techniques used in merchandising products to
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the public. Salesmanship often takes the form of a face-to-face encounter between the buyer
and seller; the presentation is set up to convince customers that the product on sales is
essential to their satisfaction. The lack of personal feedback between buyer and seller is
sometimes considered a drawback of the advertising approach. Selling by telephone,
although it is significantly less effective than selling, is still considered an important method of
merchandising. Since the 1980s, a growing promotional technique has been use in-home
shopping programs on cable television channels and computer networks.
Advertising aims at persuading customers whereas sales promotion aims at promoting sales.
Advertising is done through indoor and outdoor advertising media whereas sales promotion
is done through gifts, price reductions, special offers, point of sale, offers, sponsorship and
trade fairs and exhibitions. Sales promotion might be carried out for a specific period
whereas advertising needs to be carried out through out the life of the product.
This is the best way of introducing a product. It is very expensive as samples are given to
every household.
Price reduction
Customers often expect household articles to be offered at reduced prices. Some producers
distribute coupons to customers. The customer can use these coupons for part payments.
Competition
Sometimes competitions are held. Customers have to purchase several packets of the
producer’s goods to enter the competition.
Free gifts
Gifts such as glasses, caps or cups may be given to customers if they buy the producer’s
goods.
Point of sales
In a trade fair or exhibitions, the producer of a product has a stall where the salesmen do a
free product demonstration and at the spot, sale is done with offers and gifts.
Sponsorship
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The manufacturer or a wholesaler or a large scale retailer come forward to sponsor a musical
programme, or a film, or a drama, or a sport event on a public media like TV, Radio, National
daily etc., by incurring all the expenditure to conduct the programmes. The manufacturer or a
wholesaler or a large scale retailer advertise their product/service while a film, or a drama, or
a sport event on a public media like TV, Radio, are either telecast or broadcast so that they
can draw public attention.
Special offers
During festivals many traders announce special offers. These offers carry a special discount
or a free service during a specific period of time. Customers tend to buy more when there are
offers. Example, during New Year eve, manufacturers announce 20 – 30% special offers on
certain range of consumer goods like home appliances, consumer durables and fabric items.
TRENDS IN ADVERTISING
DIGITAL BILLBOARDS
This is an advertising media. In this media, very large screens are used to display the
advertisement. Digital billboards are placed in busy streets so that the advertised messages
can be reached to large number of people. The information about the product is given orally
to passersby.
Internet
This is the recent development in communication. Through World Wide Web, information can
be browsed. Nowadays, advertisers wish do advertise through Internet as ads can be seen
by millions through out the world.
The internet 1. It is an interactive medium 1. The coverage is limited only to
where the user can key in input those who surf the internet and
and obtain response visit the website.
immediately. 2. The advertising message
2. The medium uses multimedia placed has to compete with many
to create realism in other messages for attentions.
advertisements.
3. The advertiser can place the
advertisements in a popular
website or he can create his own
home page.
E-COMMERCE
E-Commerce, abbreviation for electronic commerce, usually defined as the conduct of
business online, via the internet. Until recently, e-commerce was limited mainly to large
companies and their suppliers, who connected their computer together to speed up ordering
and payment system. Today, millions of people are involved in e-commerce on the internet
when, for example, they visit World Wide Web sites to buy books or CDs, order flowers or
pizzas, or check their bank accounts.
In the narrow definition of e-commerce, the term covers the buying and selling of goods and
services using computer communications.
Successful e-commerce ultimately leads to some form of payment, and ideally this will
involve “electronic fund transfer” (EFT): in other word, the payment will be made via an
electronic message, not in physical form such as cash or a cheque.
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Disadvantages to traders
1. Increase through sales is too difficult as the accessibility to internet for the customer
is too narrow
2. Absence of customer personal service can discourage online shopping
3. The sales cost through online shopping can be more when compared to direct
4. selling