INTRODUCTION IIBJECTIVES Advertising is used for communicating business information to the present and prospective customers.

It usually provides information about the advertising firm its product !ualities place of availability of its products etc. Advertisement is indispensable for both the sellers and the buyers. "o#ever it is more important for the sellers. In the modern age of large scale production producers cannot thin$ of pushing sale of their products #ithout advertising them. Advertisement supplements personal selling to a great e%tent. Advertising has ac!uired great importance in the modern #orld #here tough competition in the mar$et and fast changes in technology #e find fashion and taste in the customers.

MEANING OF ADVERTISING

Advertising is a favourable representation of product to ma$e consumers customers and general public a#are of the product. It let the potential buyers general public and end users to be a#are and familiar #ith the brands their goods and services. Advertising can be defined as a paid form of non&personal but encouraging complimenting and positively favourable presentation of goods and services to a group of people by an identified sponsor. It does not include distribution of free samples or offering bonuses these are sales promotion. In simplest #ords advertising is introduction of services and goods to the consumers and the general public.

Advertising messages are usually paid for by sponsors and vie#ed via various traditional media' including mass media such as ne#spaper maga(ines television commercial radio advertisement outdoor advertising or direct mail' or ne# media such as blogs #ebsites or te%t messages. Commercial advertisers often see$ to generate increased consumption of their products or services through )branding ) #hich involves associating a product name or image #ith certain !ualities in the minds of consumers. *on& commercial advertisers #ho spend money to advertise items other than a consumer product or service include political parties interest groups religious organi(ations and governmental agencies. *onprofit organi(ations may rely on free modes of persuasion such as a public service announcement +,SA-. Definitions of Advertising The #ord advertising comes from the .atin #ord /advertere0 meaning /to turn the minds of to#ards0. Some of the definitions given by various authors are1 According to William ! Stanton /Advertising consists of all the activities involved in presenting to an audience a non&personal sponsor&identified paid& for message about a product or organi(ation0. According to Ameri"an Mar#eting Asso"iation$ /Advertising is any paid form of non&personal presentation and promotion of ideas goods and services by an identified sponsor0. According to We%ster /Advertising is to give public notice or to announce publicity0. According to Gardner /Advertising is the means of mass selling that has gro#n up parallel #ith and has been made necessary to mass production0.

Feat&res of Advertising a- Comm&ni"ation' Advertising is means of mass communication reaching the masses. It is a non&personal communication because it is addressed to masses. b- Information' Advertising informs the buyers about the benefits they #ould get #hen they purchase a particular product. "o#ever the information given should be complete and true. c- (ers&asion' The advertiser e%pects to create a favourable attitude #hich #ill lead to favourable actions. Any advertising process attempts at converting the prospects into customers. It is thus an indirect salesmanship and essentially a persuasion techni!ue. d- (rofit Ma)imisation' True advertising does not attempt at ma%imising profits by increasing the cost but by promoting the sales. This #ay it #on2t lead to increase the price of the product. Thus it has a higher sales approach rather than the higher&cost approach. e- Non*(ersonal (resentation' Salesmanship is personal selling #hereas advertising is non&personal in character. Advertising is not meant for anyone individual but for all. There is absence of personal appeal in advertising. f- Identified S+onsor' A sponsor may be an individual or a firm #ho pays for the advertisement. The name of reputed company may increase sale or products. The product gets good mar$et because of its identity #ith the reputed corporate body. g- Cons&mer C,oi"e' Advertising facilitates consumer choice. It enables consumers to purchase goods as per their budget re!uirement and choice. 3ight choice ma$es consumer happy and satisfied. h- Art$ S"ien"e and (rofession' Advertising is an art because it represents a field of creativity. Advertising is a science because it has a body of

organised $no#ledge. Advertising is profession is no# treated as a profession #ith its professional bodies and code of conduct for members. i- Element of Mar#ing Mi)' Advertising is an important element of promotion mi%. Advertising has proved to be of great utility to sell goods and services. .arge manufactures spend crores of rupees on advertising. 4- Element of Creativit-' A good advertising campaign involves lot of creativity and imagination. 5hen the message of the advertiser matches the e%pectations of consumers such creativity ma$es #ay for successful campaign.

RO.E OF ADVERTISING

Advertising is the integral part of every day6s life. It is a pervasive method of mar$eting in society. Though the methods by #hich mar$eters advertise have changed over the decades the role and purpose of advertising has remained same. Advertising broadens the $no#ledge of the consumers. 5ith the aid of advertising consumers find and buy necessary products #ithout much #aste of time. This speeds up the sales of commodities increases the efficiency of labour in distribution and diminishes the costs of selling. It is an accepted fact that #ithout mar$et stimulus of heavy advertising consumers might have #aited another si%ty years for the product evaluation that too$ place in less than ten years & it too$ after all over si%ty years from the invention of the safety ra(or before the first acceptable stainless steel blades appeared in the mar$et. These #ords are more than enough to testify the potentialities of advertising in the field of modern mar$eting system. Advertising plays very important role in facilitating different sections of the society and the society as a #hole. 5e shall discuss in detail the crucial role played by the advertisements1

Role to/ards Man&fa"t&rers It increases sales volume by creating attraction to#ards the product. It helps easy introduction of ne# products into the mar$ets by the same manufacturer. It helps to create an image and reputation not only of the products but also of the producer or advertiser. In this #ay it creates good#ill for the manufacturer. 3etail price maintenance is also possible by advertising #here price appeal is the promotional strategy. It helps to establish a direct contact bet#een manufacturers and consumers. It leads to smoothen the demand of the product. It saves the product from seasonal fluctuations by discovering ne# and ne# usage of the product. It creates a highly responsive mar$et and thereby !uic$ens the turnover that results in lo#er inventory. Selling cost per unit is reduced because of increased sale volume. Conse!uently product overheads are also reduced due to mass production and sale. Advertising gives the employees a feeling of pride in their 4obs and to be in the service of such a concern of repute. It thus inspires the e%ecutives and #or$er to improve their efficiency.

Advertising is necessary to meet the competition in the mar$et and to survive.

Role to/ards W,olesalers and Retailers Easy sale of the products is possible since consumers are a#are of the product and its !uality. It increases the rate of the turn&over of the stoc$ because demand is already created by advertisement. It supplements the selling activities. The reputation created is shared by the #holesalers and retailers ali$e because they need not spend anything for the advertising of already a #ell&advertised product. It ensures more economical selling because selling overheads are reduced. It enables them to have product information.

Role to/ards Cons&mers Advertising stresses !uality and very often prices. This forms an indirect guarantee to the consumers of the !uality and price. 7urther large scale production assumed by advertising enables the seller to seller product at a lo#er cost.

Advertising helps in eliminating the middlemen by establishing direct contacts bet#een producers and consumers. It results in cheaper goods.

It helps them to $no# #here and #hen the products are available. This reduces their shopping time.

It provides an opportunity to the customers to compare the merits and demerits of various substitute products.

This is perhaps the only medium through #hich consumers could $no# the varied and ne# uses of the product.

8odern advertisements are highly informative.

Role to/ards Salesmen Salesmanship is incomplete #ithout advertising. Advertising serves as the forerunner of a salesman in the distribution of goods. Sales are benefited the advertisement in follo#ing #ays1 Introducing the product becomes !uite easy and convenient because manufacturer has already advertised the goods informing the consumers about the product and its !uality. Advertising prepares necessary ground for a salesman to begin his #or$ effectively. "ence sales efforts are reduced. The contact established #ith the customer by a salesman is made permanent through effective advertising because a customer is assumed of the !uality and price of the product. The salesman can #eigh the effectiveness of advertising #hen he ma$es direct contact #ith the consumers. Role to/ards Comm&nit- or So"iet-

Advertising in general is educative in nature. In the #ords of the late ,resident 3oosevelt of the 9.S.A. )Advertising brings to the greatest number of people actual $no#ledge concerning useful things1 it is essentially a form of education and the progress of civili(ation depends on education.) Advertising leads to a large&scale production creating more employment opportunities to the public in various 4obs directly or indirectly. It initiates a process of creating more #ants and their satisfaction higher standard of living. 7or e%ample advertising has made more popular and universal the uses of such inventions as the automobiles radios and various household appliances. *e#spapers #ould not have become so popular and so cheap if there had been no advertisements. The cheap production of ne#spapers is possible only through the publication of advertisements in them. It sustains the press. It assures employment opportunities for the professional men and artist. Advertising does provide a glimpse of a country6s #ay of life. It is in fact a running commentary on the #ay of living and the behavior of the people and is also an indicator of some of the future in this regard. Its role to#ards the society can be summari(ed as1 01 En"o&rage (&r",asing

Encouraging people to purchase goods and services is the main role of advertising. Some industries rely on advertising more than others. A cereal company for instance must advertise more aggressively due to the #ide range of competing products than a po#er company that faces little to no competition. Advertisers often influence members of society to purchase products based on instilling the feeling of scarcity or absence. 21 Refle"t "&lt&ral trends

Advertisement ma$es people a#are of the latest trends in the culture by presenting it through different advertisement messages. Thus people come to $no# about different perspectives of culture and the variations thereby being inculcating in the social life through these variations. 31 (romotes E"onomi" gro/t,

Advertising contributes to bring about all round development of the economy by increasing demand and by encouraging economic activities. It fuels the desire to shop and in turn shopping stimulates the economy. 41 Im+roves standard of living'

Advertising is an economic activity. It provides opportunities to people to improve their income. It motivates people to consume more material and thereby improves their standard of living. 51 (rovides em+lo-ment'

Effective advertising generates demand for goods and services. "igh demand calls for more production #hich re!uires more of physical and human resources thus creating employment opportunities. 61 Advertising and 7rand %&ilding'

Brands are the identification that differentiates one business from another +through name symbol etc.-. "o#ever today brands can also be defined as the personality they reflect to people in relation to status emotional characteristics and sub4ective !uality. They give the consumers a perceived $no#ledge of the product its !uality and uni!ueness before they buy it. Brands Ensure delivery of service as promised by them. 7or e%ample ,i((a Company A claims to deliver pi((a #ithin a certain time and ,i((a company B claims to deliver most delicious ,i((as. It ma$es easy for the consumers to identify #hat they #ant and #hich brand to choose for it. It is important for a

brand to accomplish the claim advertised to retain Brand Image. Advertising is one of the $ey elements in building a brand #hich is e!ually important to the mar$eter and consumers. Brand personality acts as a potent brand differentiator and offers sustainable competitive advantage. Advertising by creating or reinforcing brand6s personality enhances brand value or e!uity #hich in turn can be leveraged through brand e%tension. Advertising is important for building brand a#areness. By raising consumer interest and ma$ing consumers a#areness of their products and services firms not only e%pand their customer base but they also $eep their loyal customers and increase their mar$et share. In other #ords the more a#are consumers are of a brand the more li$ely they are to buy from a particular business.

IM(ORTANCE OF ADVERTISING Advertising has become an essential mar$eting activity in the modern era of large scale production and serve competition in the mar$et. It performs the follo#ing functions1 :- (romotion of Sales' It promotes the sale of goods and services by informing and persuading the people to buy them. A good advertising campaign helps in #inning ne# customers both in the national as #et as in the international mar$ets.

;- Introd&"tion of Ne/ (rod&"t'

It helps the introduction of ne# products in the mar$et. A business enterprise can introduce itself and its product to the public through advertising. A ne# enterprise can6t ma$e an impact on the prospective customers #ithout the help of advertising. Advertising enables !uic$ publicity in the mar$et.

31 Creation of Good (&%li" Image' It builds up the reputation of the advertiser. Advertising enables a business firm to communicate its achievements in an effort to satisfy the customers6 needs. This increases the good#ill and reputation of the firm #hich is necessary to fight against competition in the mar$et. <- Mass (rod&"tion' Advertising facilitates large&scale production. Advertising

encourages production of goods in large&scale because the business firm $no#s that it #ill be able to sell on large&scale #ith the help of advertising. 8ass production reduces the cost of production per unit by the economical use of various factors of production.

=- Resear",' Advertising stimulates research and development activities.

Advertising has become a competitive mar$eting activity. Every firm tries to differentiate its product from the substitutes available in the mar$et through advertising. This compels every business firm to do more and more research to find ne# products and their ne# uses.

If a firm does not engage in research and development activities it #ill be out of the mar$et in the near future.

>- Ed&"ation of (eo+le' Advertising educates the people about ne# products and their uses. Advertising message about the utility of a product enables the people to #iden their $no#ledge. It is advertising #hich has helped people in adopting ne# #ays of life and giving&up old habits. It has contributed a lot to#ards the betterment of the standard of living of the society.

?- S&++ort to (ress' Advertising provides an important source of revenue to the publishers and maga(ines. It enables to increase the circulation of their publication by selling them at lo#er rates. ,eople are also benefited because they get publications at cheaper rates. Advertising is also a source of revenue for TV net#or$. 7or instance @oordarshan and AeeTV insert ads before in bet#een and after various programmes and earn millions of rupees through ads. Such income could be used for increasing the !uality of programmes and e%tending coverage.