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Seminar Report
On
EFFECT OF ADVERTISEMENT
ON BUSINESS ORGANISATION
Submitted to
Submitted by
Mrs. Sarika
Yogesh Dangi
FACULTY OF MBA MBA – I
SEM.
MAIMT, Jagadhri Roll
No. 756
INDEX
• Introduction
• Advertising
• Aspects of Advertising
• Methods of Advertising
• Best Method of Advertising
• Effects of advertising
• Advantage of advertising
• Various Objections
• Demerits/Disadvantages
• Negative Effects
• Conclusion
• Reference
ADVERTISING
Advertising is a form of communication whose purpose is to
inform potential customers about products and services and
how to obtain and use them. Many advertisements are also
designed to generate increased consumption of those
products and services through the creation and
reinforcement of brand image and brand loyalty. For these
purposes advertisements often contain both factual
information and persuasive messages. Every major medium
is used to deliver these messages, including: television,
radio, movies, magazines, newspapers, video games, the
Internet, and billboards. Advertising is often placed by an
advertising agency on behalf of a company.
Advertisements can also be seen on the seats of grocery
carts, on the walls of an airport walkway, on the sides of
buses, heard in telephone hold messages and in-store public
address systems.
Advertisements are usually placed anywhere an audience
can easily and/or frequently access visuals and/or audio and
print
Organizations which frequently spend large sums of money
on advertising but do not strictly sell a product or service to
the general public include: political parties, interest groups,
religion supporting organizations, and militaries looking for
new recruits.
Additionally, some non-profit organizations are not typical
advertising clients and rely upon free channels, such as
public service announcements.
Advertising spending has increased
dramatically in recent years. In the United States alone in
2006, spending on advertising reached $155 billion, reported
TNS Media Intelligence. That same year, according to a
report titled Global Entertainment and Media While
advertising can be seen as necessary for economic growth, it
is not without social costs. Unsolicited Commercial Email and
other forms of spam have become so prevalent as to have
become a major nuisance to users of these services, as well
as being a financial burden on internet service providers.
Advertising is increasingly invading public spaces, such as
schools, which some critics argue is a form of child
exploitation.
ASPECTS OF ADVERTISEMENT
Consumers are the main source of an industry. In this form
each source that can influence the consumers, inspire them
for the purchase of production keeps an importance in the
sales system of an institution. Advertisement is an important
means to influence the consumers. It is not sufficient for a
manufacturer to deliver his product which has been
manufactured according to the choice of consumers at the
shop of retailers. The real sale of product is not possible until
the production does not inspire the consumer buy providing
them sufficient information regarding quality and
characteristics of the product. This work is only possible
through advertisement. Media of advertisement is meant by
the method which message from advertisement is accessed
to the consumers.
METHODS OF ADVERTISEMENT
(1) PRESS ADVERTISING OR PRINT MEDIA
• NEWSPAPER ADVERTISING
• MAGAZINE ADVERTISING
• NEWSPAPER ADVERTISING
MAGAZINE ADVERTISING:
(4) TELEMARKETING:
ADVANTAGES OF ADVERTISING
Advertising helps in spreading information about the
advertising firm, its products, qualities and place of
availability of its products, and so on. It helps to create a
non-personal link between the advertiser and the receiver of
the message.
The significance of advertising has increased in the modern
era of large scale production and tough competition in the
market. Advertising is needed not only by the manufacturers
and traders but also for the customers and the society. The
benefits of advertising to different parties are discussed in
the following paragraphs.
Benefits of Manufacturers and Traders
Benefits to Customers
Advertising offers the following advantages to customers:
(i) Advertising helps the customers to know about the
existence of various products and their prices. They can
choose from the various brands to satisfy their wants. Thus,
they cannot be exploited by the sellers.
(ii) Advertising educates the people about new products and
their diverse uses.
(iii) Advertising increased the utility of existing products for
many people add to the amount of satisfaction which they
are already enjoying.
(iv)Advertising induces the manufacturers to improve the
quality of their products through research and development.
This ensures supply of the products of better quality to the
consumers.
Benefits of Society
Creates a monopoly:
It increases monopolistic trend. Due to
advertisement some manufacturers create monopoly in
industry and thus reduce healthy competition. It becomes
difficult for new firms to enter the field.
Encourages luxury:
This encourages luxury. Mostly the
commodities related to comforts and luxuries are advertised,
for example, cigarettes, cosmetic goods and etc. due to
advertisement of cigarettes several persons start smoking
cigarettes, which becomes habit.
Reduces cleanliness:
It reduces cleanliness. Large number
of posters and writings on the walls are used for
advertisement. This makes the roads and the walls of the
houses look dirty. Thus, it reduces the natural beauty.
Causes wastage:
It is a cause of wastage of natural
resources. As a results of advertisement, style and fashion
change quickly. It makes the goods out of fashion.
FOR EXAMPLE
CONCLUSION
At last it can be concluded that advertising is useful activity
which provides benefits to manufacturer, consumers. But
some time advertiser use untruthful, misleading
advertisement and they ignore moral responsibility by
showing vulgar, indecent advertisement. It is badly affecting
moral values in society. So advertisement should have
ethical values.
In order to be consumer oriented an advertisement will have
to be truth- full and ethical. It should not mislead the
consumer. It means what it promise must be their in the
performance of product, so ethics should be followed in
advertising.
Reference
• www.nicholosonmebride.com
• www.humanresourceabout.com/od/organizationdevel
opment/a/valueslive.html
• www.humanresourceabout.com/od/strategicplanning
/a/organizevalue.html
• http://forumssureshkumar.net/groupdiscussiont opi
cs/12305_ethics-advertising-comments-plz.html
• http://www.managementparadise.com/forems/showthread.php?t=
24081
• http://www.asa.com
• http://hinduonnet.com