Advertising : Any paid form of non - personal presentation and

promotion of ideas,goods, or service by an identified sponsor.

An advertising objective is a specific communication task to be accomplished

with aspecific target audience during a specific period of time, advertising
objectives canbe classified by primary purpose –whether the aim is to inform, persuade, or
remind.

Features

Functions
Advertising permeates the Internet, network television, daily newspapers and roadside billboards. Products,
services and ideas are sold through advertising, enabling businesses to attract customers for their wares.
Internet advertising is rapidly displacing print advertising, due its convenience of use, cost effectiveness, and
ease of distribution.
Identifying Brands

Products, services and ideas are sold through businesses that are differentiated by their brand identities.
Brand identity is communicated to the public via advertising. Consumers build emotional relationships with
certain brands with which they become increasingly familiar through the years, thanks to advertising.

Information
Advertising supplies the necessary information to consumers so that they know what is available and where
to buy it. It broadcasts information on products, services and ideas sold on the open market through a
variety of media portals. It reveals the special features being sold, what color and size the product is and
which stores carry it.

Persuasion

Powerful, visual advertising presentations compel consumers to purchase goods, services and ideas as a way
to achieve emotional fulfillment. Persuasion is the core mission of advertising. Advertising tells you how the
product, service or idea you are considering will improve your life. According to Jeremiah O'Sullivan R,
author of "The Social and Cultural Effects of Advertising," advertising feeds on the concepts of ideology,
myth, art, sexual attraction and religion. Advertising infuses images and ideas into products and services, just
as the meanings of products and services are infused into images and ideas, notes O'Sullivan.

Previewing New Trends

Previews about the virtues of new products, services and ideas motivate consumers to obtain them because
they don't want to be left out. Advertising lets consumers in on up-and-coming trends and new markets.
They offer coupons, rebates and trial offers on new products, services or ideas to recruit new customers and
induce existing customers to try things. Advertisers preview new or improved products, services and ideas to
consumers in order to appeal to their sense of wanting to be in the know about leading edge trends.
Previewing new trends is a technique employed by advertisers that capitalizes on consumers' desires to
"keep up with the Jones" by owning the latest and greatest product, service or idea.

or

Previewing New Trends

Whenever a new product hits the market, it is very likely that it will lead to the formation of a
new and lasting trend. But how far it lasts depends on its features, the quality level of the
advertising strategies meant for promoting it as well as the disturbance it causes in the current
business levels of your competitors. You can think of it as a product unique of its kind starts
getting a lot of sales, then there are huge chances that your customers will also try to jump
right into the competition with their products.

Demand

The demand generated by advertising, public relations, and sales promotion "pulls" the goods or services
through channels of distribution, notes "Reference for Business." One of the powerful functions of advertising
is to generate consumer demand for specific products, services and ideas through ad campaigns that target
the audiences that are most likely to buy them." Products, services and concepts are sold in volume,
according to the consumer demand for them.

Customer Base

Consistent quality advertising increases consumer loyalty for a product, service or idea. Advertising seeks to
maintain the current customer base by reinforcing purchasing behavior with additional information about
the benefits of brands. The goal of advertising is to build and reinforce relationships with customers,
prospects, retailers and important stakeholders.

Pricing

Advertising displays consumer goods with competitive prices relative to the current market, thus educating
consumers about what things should cost. Advertising lets you know what the competition is doing, when
the next sale is, and how you can receive the latest coupon or rebate and seeks to assure you that you are
receiving the best value for your money.

Change perception

Ethics in AD
Identification –

Advertisements should be clearly distinguishable as such, whatever their form and whatever
the medium used; when an advertisement appears in a medium which contains news or
editorial matter, it must be presented so that it is readily recognised as an advertisement.

Truthful Presentation –

Advertisements should not contain any statement or visual presentation or create an overall
impression which directly or by implication, omission, ambiguity or exaggerated claim is
misleading or deceptive, is likely to deceive or mislead the consumer, makes false and
misleading representation, abuses the trust of the consumer or exploits his/her lack of
experience or knowledge. (Obvious hyperbole, identifiable as such, is not considered to be
misleading).
Research, Tests and Surveys –

Advertisements should not use tests and surveys, research results or quotations from technical
and scientific literature, in a manner which is misleading or deceptive.

Decency –

Advertisements should not contain anything which clearly offends against generally prevailing
community standards taking into account the context, medium, audience and product
(including services).

Offensiveness –

Advertisements should not contain anything which in the light of generally prevailing
community standards is likely to cause serious or widespread offence taking into account the
context, medium, audience and product (including services).

Fear –

Advertisements should not exploit the superstitious, nor without justifiable reason, play on
fear.

Violence –

Advertisements should not contain anything which lends support to unacceptable violent
behaviour.

Denigration –

Advertisements should not denigrate identifiable products or competitors.

Testimonials –

Advertisements should not contain or refer to any personal testimonial unless it is genuine,
current, related to the experience of the person giving it and representative of typical and not
exceptional cases. The claims in the testimonial should be verifiable.
Privacy –

Unless prior permission has been obtained an advertisement should not portray or refer to any
persons, whether in a private or public capacity, or refer to any person's property, in a way
likely to convey the impression of a genuine endorsement.

Advocacy Advertising –

Expression of opinion in advocacy advertising is an essential and desirable part of the

functioning of a democratic society. Therefore such opinions may be robust. However, opinion
should be clearly distinguishable from factual information. The identity of an advertiser in
matters of public interest or political issue should be clear.

Safety –

Advertisements should not, unless justifiable on educational or social grounds, contain any
visual presentation or any description of dangerous or illegal practices or situations which
encourage a disregard for safety.

The 5 M's of advertising are as follows:

1. Mission

2. Money

3. Message

4. Media

5. Measurement
1. Mission:

Advertising Objectives can be classified as to whether their aim is:

• To inform: This aim of Advertising is generally true during the pioneering stage of a product
category, where the objective is building a primary demand.

• To persuade: Most advertisements are made with the aim of persuasion. Such
advertisements aim at building selective brand.

• To remind: Such advertisements are highly effective in the maturity stage of the product.
The aim is to keep the consumer thinking about the product.

2. Money:
This M deals with deciding on the Advertising Budget

The advertising budget can be allocated based on:

• Departments or product groups

• The calendar

• Media used

• Specific geographic market areas

There are five specific factors to be considered when setting the Advertising budget.

i. Stage in PLC: New products typically receive large advertising budgets to build awareness
and to gain consumer trial. Established brands are usually supported with lower advertising
budgets as a ratio to sales.

ii. Market Share and Consumer base: high-market-share brands usually require less
advertising expenditure as a percentage of sales to maintain their share. To build share by
increasing market size requires larger advertising expenditures. Additionally, on a cost-per-
impressions basis, it is less expensive to reach consumers of a widely used brand them to reach
consumers of low-share brands.

iii. Competition and clutter: In a market with a large number of competitors and high
advertising spending, a brand must advertise more heavily to be heard above the noise in the
market. Even simple clutter from advertisements not directly competitive to the brand creates
the need for heavier advertising.

iv. Advertising frequency: the number of repetitions needed to put across the brands message
to consumers has an important impact on the advertising budget.

Product substitutability: brands in the commodity class (example cigarettes, beer, soft drinks)
require heavy advertising to establish a different image. Advertising is also important when a
brand can offer unique physical benefits or features.
3. Message:

Message generation can be done in the following ways:

A. Inductive: By talking to consumers, dealers, experts and competitors. Consumers are the
major source of good ideas. Their feeling about the product, its strengths, and weaknesses gives
enough information that could aid the Message generation process.

B. Deductive: John C. Meloney proposed a framework for generating Advertising Messages.

According to him, a buyer expects four types of rewards from a product:

• Rational

• Sensory

• Social

• Ego Satisfaction.

Buyers might visualize these rewards from:

• Results-of-use Experience

• Product-in-use Experience

• Incidental-to-use Experience

4. Media:

The next M to be considered while making an Advertisement Program is the Media through
which to communicate the Message generated during the previous stage. The steps to be
considered are:
5. Measurement:

Evaluating the effectiveness of the Advertisement Program is very important as it helps

prevent further wastage of money and helps make corrections that are important for further
advertisement campaigns. Researching the effectiveness of the advertisement is the most used
method of evaluating the effectiveness of the Advertisement Program. Research can be in the
form of:

i. Communication-Effect Research

ii. Sales-Effect Research

Place of AD in marketing mix

The marketing mix consist of four important variables of marketing or the 4 Ps: Product, Price,
Promotion and Place. Aside from the traditional 4 Ps, there are also other variables like
Packaging, Position, and Pace.

Advertising is an element of promotion. However, it not only assists in promoting the product,
but also affects the other variables of marketing mix. This can be explained as follows:

1. Advertising and Product: A product is normally a set of physical elements, such as quality,
shape, size, color and other features. The product may be of very high quality. At times, the
product is so designed that it requires careful handling and operations. Buyers must be
informed and educated on the various aspects of the product. This can be effectively done
through advertising. So, advertising plays the role of information and education.

How are advertising and marketing related?

2. Advertising and Price: The price is the exchange value of the product. A marketer may
bring out a very high quality product with additional features as compared to competitors. In
that case, price would be definitely high, but buyers may not be willing to pay. This is where
advertising comes in. Advertising can convince buyers regarding the superiority of the brand
and thus its value for money. This can be done by associating the product with prestigious
people, situations, or events. Alternatively when a firm offers a low price products the job of
advertising needs to stress the price advantage by using hard-hitting copy. It is not just enough
to convince the buyer, but it is desirable to persuade the buyer. In essence, advertising plays
the role of conviction and persuasion.

3. Advertising and Place: Place refers to physical distribution and the stores where the goods
are available Marketer should see to it that the goods are available at the convenient place
and that too at the right time when the buyers need it. To facilitate effective distribution and
expansion of market, advertising is very important. Effective advertising helps in effective
product distribution and market expansion.

4. Advertising and Promotion: Promotion consists of advertising, publicity, personal selling and
sales promotion technique. Businesspeople today have to face a lot of competition. Every seller
needs effective promotion to survive and succeed in this competitive business world.
Advertising can play a significant role to put forward the claim of seller, and to counter the
claims of competitor. Through effective advertising, sellers can face competition and also help
to develop brand image and brand loyalty.

5. Advertising and Pace: Pace refers to the speed in marketing decisions and actions. It
involves among other things the launch of new products or brand variations at greater speed
than before. When new brands are launched, advertising plays an important role of informing,
educating and persuading the customers to buy the product.

6. Advertising and Packaging: The main purpose of packaging is protection of the product
during transit, and preservation of quality and quantity. Today, marketers make a lot of
effort to develop and design attractive packages as they carry advertising value.A creatively
designed package attracts the attention of the customers. It also carries an assurance of
quality and creates confidence in the minds of customers to buy the product.

7. Advertising and Positioning: Product positioning aims at creating and maintaining a distinct
image of the brands in the minds of the customers. Through advertising the marketer can
convey the positioning of the brand and accordingly can influence the buying decision of the
target audience.

Advertising is an essential part of the marketing mix and is used to promote sales, to introduce
new products, to create a good public image for a company, assist in large scale of production
of products, and for educating people about a new product.