CHAPTER – 17
Importance
of Advertising
DEFINITION
“Advertising is an art of providing market information through the
various media of communication such as magazines, newspapers, television, radio
etc. at the expense of the company for the purpose of increasing or maintaining
effective demand and making easy the sale specific goods and services.”
PURPOSE OF
ADVERTISING
The purpose of advertising is:
1) to enable the public to know the
features and uses of the products and overcome traditions and prejudice that
may reduce competition.
2) to make easy and increase the sale of present products, to maintain consumer’s awareness, to bring it equal with advertisement of competing firms and to reduce the amount of personal sales efforts required to receive an order.
2) to make easy and increase the sale of present products, to maintain consumer’s awareness, to bring it equal with advertisement of competing firms and to reduce the amount of personal sales efforts required to receive an order.
3) to introduce a new product model
of service in the market.
MEDIA OF
ADVERTISING
Media means the source in which the
advertisement appears. It is a singular as well as plural term. Various types
of advertising media are explained as under:-
A. RADIO
Today radio has become very important
and can be utilized for advertising the goods which are sold either within the
country or all. Today’s commercial services of radio Pakistan are becoming very
popular day by day .but life of this advertisement is very short .
B. MAGAZINES
Magazines can be used for the
products which are sold out all over the country .this type of advertisement is
not flexible as changes cannot be made in the advertisement copy easily it is
becomes the copy of the advertisement is to be submitted to the advertising
company 4 to 5 weeks earlier.
C. NEWSPAPERS
These newspapers which are daily or
weekly are used for advertising the goods of local businessman. a newspaper has
a very short life as it is destroyed usually after a period of 24 hours .
D. MEAN SIGNS
It means advertisement through bulbs
. this type of advertisement media is becoming popular day by day in big cities
of Pakistan like Karachi ,Lahore and Rawalpindi.
E. ADVERTISING BY POST
Small firms advertise their products
through letters ,postcards ,catalogue etc.
F. ADVERTISING BY TELEVISION
This type of advertisement delivered
through a television is a combination of spoken words and visual presentation
of products and their benefits .
G. DIRECT MAIL
It is widely used and includes postcards,
letters, catalogues, folders, booklets etc. they have variability of coverage
.large and small business both can use it. basis of this kind of advertising is
mailing list .this list which has the names of the persons to whom the letters
are sent is compiled from time to time from many sources . It needs utmost care
and up to datedness. This list can be made extremely selective regarding
geographical and consumer interest .It is costly because of printing. Postage
,typing and packing.
H. CAR CARDS
They are used in street cars , buses
, subways and rail road cars where they may be seen by people on the way to
shopping trips etc. They are effective for all i.e national ,regional and local
advertising .They are flexible and reached the people to whom the magazines
don’t reach.
I. PACKAGES ,LABELS AND INSERTS
Advertising copy on package must be
brief and should have pictures and brand name , qualities , companies name etc.
Some are bottles and some are board packages.
J. WINDOW DRESSING
Usually big shop decorates there
windows of shop so as to attract customers. This is also one of the media of
advertising. The window is dressed in such a way that it may attract attention
of the buyers.
K. SAMPLING
Some firms distribute there products
free of cost so as to advertise its product to secure sales volume in future.
ADVANTAGES OF ADVERTISING
1. It creates demand for a new
article by arousing interest of the public.
2. It increase the sales volume of establish articles constantly keeping the
2. It increase the sales volume of establish articles constantly keeping the
selling points afresh in minds of the
customer.
3. It educates the general public
about new use or uses of a product.
4. It reduces competition.
4. It reduces competition.
5. It creates goodwill by continues
reminder to the public about the trademarks etc.
6. It increases additional sales by
encouraging present customers in using the articles more frequently and in
increased quantities.
7. It facilitates the job of the salesman and dealers by introduction the products to the public.
7. It facilitates the job of the salesman and dealers by introduction the products to the public.
8. It reduces prices as the
production volume increases, which in turn reduces the overhead expense.
9. It insures better quality,
improving the quality of goods to have better appeals to the customer.
10. It increases the employment
because production increases.
DISADVANTAGES OF ADVERTISING
1. It results sometimes in exaggeration
( over-valuation) and
misrepresentation. Such advertisement
misleads the public and loses the confidence of the public in the enterprises.
2. It expands the market for the
articles of luxury and comfort, because the goods which are needed to meet
primary needs of life are not usually advertised.
3. It causes economic loss due to rapid changes in style creation of new objects of consumption and changes in style are waste and determinate to human good.
3. It causes economic loss due to rapid changes in style creation of new objects of consumption and changes in style are waste and determinate to human good.
4. Advertising is impersonal and
cannot answer the question asked for by the buyers.
5. It results in monopoly through
brands.
IS ADVERTISING A WASTE?
It is not a waste at all. It is an
aid to business expansion. Advertisement help buyers who usually do not know or
are really aware of the existence of the seller. It expands the sellers market
by spreading information about the product. Some people say the advertising
increase the cost of production which is to be borne by the customer. It is
completely wrong. It creates new demands of commodities and the service which
lead t a production on large scale and when the production increases the cost
of advertising is not waste but brings gain in the business.
DIFFERENCE
BETWEEN ADVERTISEMENT AND PUBLICITY
ADVERTISING
1. Some definite message is communicated.
1. Some definite message is communicated.
2. It is paid form of publicity.
3. It is non personal.
4. Its sponsor is known.
PUBLICITY
1. It is generally done in form of news, articles, features written in
1. It is generally done in form of news, articles, features written in
newspaper.
2. No direct payment is involved.
2. No direct payment is involved.
3. It may be personal.
4. Its sponsor is not always known.
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