A Seminar Report On EFFECT OF ADVERTISEMENT ON BUSINESS ORGANISATION

Submitted to
Mrs. Sarika FACULTY OF MBA MAIMT, Jagadhri

Submitted by
Yogesh Dangi MBA I SEM. Roll No. 756

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT & TECHNOLOGY JAGADHRI 135 003

(AFFILIATED TO KURUKSHETRA UNIVERSITY, KURUKSHETRA)

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 (2) OUTDOOR ADVERTISING: (3) TELEVISION ADVERTISING: (4) TELEMARKETING: (5) ON LINE MARKETING: (6) FAIRS AND EXHIBITIONS: (7) DIRECT MAIL ADVERTISING: (8) WINDOW DISPLAY ADVERTISING: (9) SPECIALTY ADVERTISING:

(1) PRESS ADVERTISING OR PRINT MEDIA

Press advertising, i.e. advertising thorough newspaper magazines, journals, etc. is commonly used by modern businessmen. It may be noted advertising is an important source of finance for the press or print media. Because of advertising, the subscribers get newspaper and periodicals at subsidized rate.

NEWSPAPER ADVERTISING

Newspaper reading is a common habit among most of the educated people. Besides daily newspaper also. Newspapers reach almost every place and are used by all kinds of people. Therefore, newspaper can be used as a medium of advertisement with great advantage. Advertising through newspaper has the following merits: (1) A newspaper has large circulation and a single advertisement a newspaper can reach number of people. (2) Continues advertisement is possible because newspaper is published daily. (3) Newspaper provides flexibility in advertising in the sense that advertising campaign can be initiated and stopped quickly. One day's notice is sufficient for this purpose. Newspaper advertising has the following limitation: (1) The life off a newspaper of advertisement is very short. Moreover, people devote only an insignificant of their day's time in reading the newspaper. Thus, advertisements are likely to draw the reader's attention only casually. (2) Newspaper advertisement is successful only when the people to be communicated the message is educated. (3) Newspaper cannot be used foe colored advertisement.

MAGAZINE ADVERTISING:
Magazines or periodicals are an excellent medium of advertisement when a highly quality of printing in colored is desired. Magazine advertisements can be directed towards a particulars class of people. Magazine advertising is considered to be superior to

Newspaper advertising because of the following merits: Magazines are read more carefully and at greater leisure. Advertising through magazines is more effective. (1) The life of the magazine advertisement is longer. Magazines are preserved for a long period of time and are read time and again. (2) Since advertisement copy is presented in a colored form, it creates a better image of the products advertised, Magazine advertising has the following limitations: (1) Advertising through magazine is costly. (2) The circulation of magazine is generally smaller as compared to the newspapers. (3) Magazines advertisements are to prepared and sent for publication well in advance.

(2) OUTDOOR ADVERTISING:

Outdoor advertising has gained wide popularity these days. Its purpose is to attract the attention of the people at busy roads and markets. It includes the use of posters displays, bill board display and electric display. Outdoor advertising has the following merits: (1) Outdoor advertising is highly flexible and is a low cost medium. (2) It is very useful for advertising consumer products because posters. etc. can be display at various crowded centers. (3) Outdoor advertisement attracts attention quickly and requires very less time and efforts on the part of the reader Outdoor advertising has the following demerits: (1) It can't carry long message as posters, hoarding, etc. are read by the people at a glance. (2) It has low retention value because people don't devote special time to read the message. (3) It distracts the attention of the passers-by and may even accidents on busy roads.

(3) TELEVISION ADVERTISING:

Television is the fast growing medium of advertisement Because of huge expansion of electronic media. It marks its appeal through both the eye and ear Products can be demonstrated as well as explained as in film advertisement. T.V. advertising has all the merits of film advertising. It has greater effectiveness as the message is conveyed at their homes to the people. Selectivity of message can also be achieved. Commercials may be given during that time period when the prospective buyers are supposed to watch T.V. programmers. T.V. adv. has got all the demerits of film advertising. T.V. is very costly medium of adv. And can be made use of by the well established companies only. Another limitation of television advertising is that once it is presented. Its back reference is not possible as in the radio advertisement.

(4) TELEMARKETING:
Telemarketing involves the use of telephone and call centers to attract prospects sell to existing customers, and provide service by taking orders and answering questions. Telemarketing helps companies increase revenue, reduce selling cost, and improve customer satisfaction. Companies use call centers for inbound telemarketing (receiving calls from customers) and outbound telemarketing (initiating costs to prospects and customers).

(5) ON LINE MARKETING:

On line marketing is described as company efforts to inform, communicate, promote and sell its products and services over the internet. The advent of the internet as greatly increased the ability of companies to conduct their business faster, more accurately, over a wider range of time and space, at reduced costs, and with ability to customize and personalize customer offerings.

(6) FAIRS AND EXHIBITIONS:

The exhibitions and fairs relating to different industries of all industries in metro cities are provisionally arranged in which a number of manufacturers exhibit their products. A huge population visits at these fairs for recreation. The manufacturer can advertise their products in these fairs. The items of daily use and food stuff are advertised through this method.

(7) DIRECT MAIL ADVERTISING:

Direct mail is probably the most selective of all the adv. Media. It is used to send customer. For this purpose, the advertiser has to maintain a list which can be expanded or contracted be adding or removing names from the list. But a severe limitation is posed by the difficulty of getting and maintaining a good mailing list. Advertisements that are sent by the mail may be in the form of circular letter, leaf let, calendars, booklets and catalogues, Booklets and catalogues contain the information about the products advertised, Information about the terms of scale and prices of different varieties of the product is given to the prospective customers through catalogues. Merits of mail adv. are as under: (1) Mail adv. has a personal appeal since it is addressed to a particular person. (2) It maintains secrecy in adv. The competitors do not get the information about the advertised material. (3) It gives an opportunity to the advertiser to provide detailed and illustrated information about the prospects. Demerits of direct mail adv. are given below: (1) The coverage of detail mail adv. is limited. (2) Its effectiveness is doubtful as it does not create a mass appeal.

(8) WINDOW DISPLAY ADVERTISING:

Window display is a highly effective medium of advertisement. Goods can be displayed in artistically laid out windows at the shop fronts or at important busy centers like railway stations and bus stops. Effective display of goods attracts the attention of the on lookers and tries to convince them to buy the good displayed, Display adv. can also used by participating in trade fairs and exhibitions.

(9) SPECIALTY ADVERTISING:

Many business firm offer specialty articles to the present and prospective customers. These articles may be diaries, pen holder, desk trays, key chains, purses, paper weight, cigarette cases and calendars. The name and address of advertiser is printed or inscribed on the specialty items. They also bear the brand name of the firm. Since these articles are of daily use, they have greater capacity to remind their user about the brand name of the firm offering such articles.

BEST METHOD OF ADVERTISEMENT

Best method of Advertisement depends on the objective of a business organization. If a business organization have objective to provide the information to overall public then best method of the advertisement is Television. If a business organization have objective to provide the information to Literate Person then best method of the advertisement is Print Media.

EFFECTS OF ADVERTISING
Advertising has become an essential marketing activity in the modern era of large scale production and serve competition in the market. It performs the following functions:

1. Promotion of Scales: It promotes the sale of goods and services by informing and
persuading the people to buy them. A good advertising campaign helps in winning new customers both in the national as well as in the international markets.

2. Introduction of New Product: It helps the introduction of new products in the

market. A new enterprise cant make an impact on the prospective customers without the help of advertising. Advertising enables quick publicity in the market.

3. Mass Production: Advertising facilities large-scale production. Advertising

encourages production of goods in large-scale because the business form knows that it will be able to sell on large-scale with the help of advertising. Mass production reduces the cost of production per unity by the economical use of various factors of production.

4. Research: Advertising stimulates research and development activities. Advertising

has become a competitive marketing activity. Every firm tries to differentiate its product from the substitutes available in the market through advertising. This compels every business to do more and more research to find new products and their new uses.

5. Education of People: advertising educate the people about new products and their
uses. For example, Gits, Kelloggs, Maggies etc., are thriving upon the new life-style of Indian consumer.

6. Support to Press: Advertising provides an important source of revenue to the

publishers and magazines. Advertising is also a source of revenue for TV network. For instance, Doordarshan and Zee TV insert ads before, in between and after various programmers and earn millions of rupees through ads.

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 nonpersonal 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 It pays to advertise. Advertising has become indispensable for the manufacturers and distributors because of the following advantages: (i) Advertising helps in introducing new products. A business enterprise can introduce itself and its products to the public through advertising. (ii) It can create new taste among the public and stimulate them to purchase the new product through effective advertisement. (iii) Advertising assists to increase the sale of existing products by entering into new markets and attracting new customers. (iv) Advertising helps create steady demand of the products. For instance, a drink may be advertised during summer as a product necessary to fight tiredness caused by heat and during winter as an essential thing to resist cold. (v) Advertising help in meeting the forces of competition in the market-place. If a product is not advertised continuously, the competitors may snatch its market through increased advertisements. Therefore, in certain cases, advertising is a necessity to remain in the market and remind the customer as done by soft drink companies. (vi)Advertising is used to increase the goodwill of a firm by promising improved quality to the customers. (vii) Advertisements increase the morale of the employees of the firm. The salesmen feel happier because their task becomes easier if the product is advertised and known to the public. (viii) Advertising facilitates mass product of goods which enable the manufacturer to achieve lower cost per unit of product. Distribution costs are also lowered when the manufacturer sells the product directly to the customers. Advertising facilities direct distribution of the product through the retailers. Retailers are encouraged to purchase and sell the advertised products.

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 The society at large is also benefited because of advertisement: (i) Adverting provides employment to persons engaged in writing, designing and issuing advertisements. Increases employment brings additional income with the people which stimulate more demand. Employment is further generated to meet the increased demand. (ii) Advertising promotes the standard of living of the people by increasing the variety and quality in consumption as a result of sustained research and development activities by the manufacturers. (iii) Advertising educates the people about the various uses of different products and this increases their knowledge. Advertising also helps in finding customers in the international market which is essential for earning foreign exchange.

Is advertising a social waste?

Advertising is often criticized as a wasteful activity and an unnecessary evil. Its critics offer the following arguments to prove their contention:

1. Multiplies the Needs: Advertising multiplies the needs of the people by inducing
them to buy even those things which are not required by them. Since an advertisement is continuously repeated, it creates a desire in the mind of the public to buy the advertised product.

2. Makes the product more Costly: The amount of money spent by an advertiser
on his products advertisement is added to the distribution cost of the product. Thus, the customers have to pay more for the product advertised.

3. Increase in demand at the cost of another manufacturer: Advertising

does not always increase the demand of the product. When the demand is inelastic, advertising shifts demand from one producer to another. That means a large amount of money spent on advertising by the manufacturers goes waste.

4. Creates brand monopoly: Advertising may lead to monopoly of a brand. It is

argued that big manufacturers who can afford large amount of money on advertising can create brand monopoly and eliminate the small producers.

5. Every advertisement is not creative: A large number of advertisements either

escape the attention of the people or are ignored by them. This leads to waste of money spent on advertisement.

6. Undermines moral values: Sometimes, advertising undermines ethical and

aesthetic values. It may make the people start bothering for appearance and design of the product rather than the physical utility. Some advertisers also use indecent language and

photographs to advertise their products which are highly objectionable from the societys point of view.

7. Corrupt the minds of youngsters: It is felt that advertisement can corrupt the
minds of youngsters. Young minds run the risk of being carried away by the advertisements promoting smoking, wine, etc. In some cases, advertisements have promoted the youths to commit crimes and undertake ventures at the risk of their lives. Despite its drawbacks, advertising is a necessary marketing activity in the present business environment. It is not a social waste. It enables a manufacturer to introduce his products in the market and sell them. Advertising helps in educating the people regarding new uses of various products. It also strengthens the freedom of choice of the people. It sustains the press and gives employment to people. Advertising increases the standard of living of the people by informing them about the availability of new products. Thus, we can say that advertising is a useful marketing activity. Its drawbacks could be removed if the people and the Government keep a watch on the advertisers. People should satisfy themselves about the claims made by a producer before they purchase his products. The manufacturers or the advertisers should also avoid wasteful advertising and keep advertising expenditure within limits. They should also follow the ethical standards while advertising their products.

DEMERITS/DISADVANTAGES OF ADVERTISEMENT (A SOCIAL WASTE)

These are the disadvantages of advertising:

Increases the cost:

It increases the cost of goods. The cost of the advertisement is included in the price and is ultimately borne by the customers.

Misleads the public:

It misleads the public by giving false statements about the product. (It may be true in some cases but majority of advertisers know the value of honest statements.)

Creates dissatisfaction:
It creates tastes and desires for some people whose income may not allow them to buy. Such people feel dissatisfied.

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.

Creates the confusion:

It creates the possibility of wrong purchases. Being impressed by the advertisement, in some cases, a person is not able to purchase the commodity, which he actually wants to purchase.

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
Hero Honda uses the Advertisement to attract the youngster. Hero Honda uses the bull in the advertisement of Karizma bike that bull shows the youngster power. It is very use full advertisement for attract the youngster.

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