What comes to your mind when we

talk about Advertising?

Advertisement Wars- Jet Airways and Kingfisher
 Advertising is nothing but a paid form of non-personal
presentation or promotion of ideas, goods or services by an
identified sponsor with a view to disseminate information
concerning an idea, product or service.
 The message which is presented or disseminated is called
advertisement.
 In the present day marketing activities hardly is there any
business in the modern world which does not advertise.
 However, the form of advertisement differs from business to
business.
Advertisement has been defined differently by different persons. A few definitions
are being reproduced below:

 According to Wood, “Advertising is causing to know to remember, to do.”

 According to Wheeler, “Advertising is any form of paid non-personal presentation of
ideas, goods or services for the purpose of inducting people to buy.”
 According to Richard Buskirk, “Advertising is a paid form of non-personal presentation
of ideas, goods or services by an identified sponsor.”
 According to William J. Stanton, “Advertising consists of all the activities involves in
presenting to a group, a non-personal, oral or visual, openly sponsored message regarding
disseminated through one or more media and is paid for by an identified sponsor.”
 According to The American Marketing Association "Any paid form of non- personal
presentation and promotion of ideas, goods and services by an identified sponsor”.
 Purpose of Advertising
 Make customer aware of the product or service
 Convince customers to match co’s product or service with their
needs.
 Create a desire for the product or service
 Enhance the image of the company
 Announce new products or services
 Reinforce salespeople’s messages
 Draw customers to your business
Advertising is the non-personal
communication of information
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through the
various media.
Bovee/Arens, 1992
Advertising is the nonpersonal
communication of information
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through the
various media.
Two kinds of selling
Personal
 Plenty of time to deliver the message
 Done face to face
 Message can be adjusted to fit how it’s
getting across
 Easy to find customers
 Expensive in both time and money
 Labor-intensive
 Time consuming
Non-Personal
 Limited in time  Message doesn’t have
and/or space to be created on the
 Don’t know who the spot
customer is  Extensive research
 Don’t know how the  Far cheaper than
customer is reacting personal selling
 Can’t change the
message in mid-
stream
Advertising is the non-personal
communication of information
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through the
various media.
Communication- The Senses
 Smell
 Touch
 Taste
 Sound
 Sight
Advertising is the non-personal
communication of information
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through the
various media.
 Affirmative disclosure
 "Sometimes the consumer is provided not with information he wants
but only with the information the seller wants him to have. Sellers, for
instance, are not inclined to advertise negative aspects of their products
even though those aspects may be of primary concern to the consumer,
particularly if they involve considerations of health or safety . . . "

Lewis A. Engman, FTC Chair

Advertising is the non-personal
communication of information
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through the
various media.
Advertising is the non-personal
communication of information
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through the
various media.
Advertisement Wars- Flipkart.com and Snapdeal.com
Advertising is the non-personal
communication of information
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through the
various media.
The bundle of values
 Functional value
 Social value
 Psychological value
 Economic value
 Whatever else the consumer thinks is
important
 Three ways to differentiate products
 Perceptible
 Actual differences
 Easily seen
 Imperceptible
 Actual differences
 Can’t be seen
 Induced
 No actual differences
 Parity products
Advertising is the non-personal
communication of information
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through the
various media.
Advertising is the non-personal
communication of information,
usually paid for and usually
persuasive in nature about products,
services or ideas by identified
sponsors through the various media
Features of Advertising- To summarize
 Any paid form
 An identified sponsor
 Non- personal presentation
 Goods, services and ideas for action
 Mass Communication Media
 Persuasion- AIDA Model (Attention, Interest, Desire, Action)
Celebrity endorsement portraying consumer and seller online connect
Marriage Portal Advertisement portraying change for women roles
 Objectives of Advertising
 The purpose of advertising is nothing but to sell something -a product, a service or an
idea. The real objective of advertising is effective communication between producers and
consumers.
The following are the main objectives of advertising:
1) Communicates information
2) Creates ground for Personal Selling
3) Creates image for the product or service
4) Builds Goodwill
5) Obtain Dealer Support
6) Educate people
7) Creates and extends demands
8) Counters Competition
9) Trial
10) Continuity
11) Brand Switching
12) Switchback Companies
 Functions of Advertising
 The important function of advertising is the identification function, that is to identify a
product and differentiate it from others, this creates an awareness of the product and
provides a basis for consumers to choose the advertised product over other product.

The following are the primary functions of advertising as described by Jagdish

N. Sheth:
1) Precipitation- stimulating needs and wants of customers and creating general
awareness
2) Persuasion- Comparative Advertising (Acknowledgement & Use of Product or
Service)
3) Reinforcement- Reassurance for customers that they are wise to choose/ buy a
product or service.
4) Reminder- Objective of advertisement to keep the brand name always fresh in the
target audience’s memory.
 Other Functions of Advertising
 It encourages the prospective buyers to purchase the products.
 It acts as a important instrument in the hands of manufacturer for increasing the sales by
creating the permanent demand for the product.
 It builds up the reputation of the company hereby enhancing the goodwill of the concern.
 It is indispensable in the introduction of a new product in the market.
 It educates the people in the use of new products and tells about the different use of
existing products.
 It extends many employment opportunities in the society.
 It is instrumental in increasing production and sales and considerably reduces for unit cost
of production and sales.
 It eliminates seasonal fluctuations in the demand of the product.
 To differentiate the product from their competitors.
 To communicate the information regarding product or services
 To urge product use.
 Increase the brand preference and loyalty.
 Provides a source of revenue for the publishers of different media.
 Creates new demand.
 Benefits of Advertising
 Benefits to Manufacturers/ Advertisers
 Benefits to Wholesalers and Retailers
 Benefits to Consumers
 Benefits to Salesmen
 Benefits to Community or Society

Details given in Supporting Notes……………..

 Limitations of advertising
 While on the one hand, advertising is regarded as the life-blood of modern
business; on the other hand, some scholars are of the view that money spent on
advertising is a waste. Those who hold this opinion are, as a matter of fact, the
critics of advertising and they hint at its evils.
According to the critics, advertising has the following disadvantages:
(1) Adds to Costs
(2) Undermines Social Values
(3) Confuses the Buyers
(4) Encourages Sale of Inferior Products
(5) Some Advertisement is in Bad Taste
(6) Less forceful
(7) Lack of feedback
(8) Inflexibility
(9) Low effectiveness
(10) Extra Burden of Cost
 Role of Advertising in Social and Economic Development of India`

“Every coin has two sides”

 Advertising is praised but also criticized by critics in their own ways. Advertising has
many positive impacts along with its negative pictures.
 If people are informed in an influential way, they behave accordingly and may leads to
participate in economic activities.
 Advertising with its cognitive and persuasive nature can easily polish the mind of target
audience and create the sense of motivation to purchase the value offered by the
companies in the form of product, to satisfy their various needs which in turn helps to
enhance the living standard of them.
 In Indian context emotional, religious, cultural and traditional aspect of advertising is
broadly practiced.
 By conceptualizing advertising and linking its impact on social and economic aspect of
nation’s development such as advertising largely affects pricing of the product, creates
demand and choice for consumers and further when they participate in economic
transactions, they contributes to the national development.
 The advertisement also influences the social and cultural norms of peoples like their
values, customs, developing living standard and creating social awareness.
 Various advertising initiatives are also analyzed which are available for social wellness.
 Role of Advertising in Economic Development of India

 Promotes Consumer welfare

 Enhances the value of Product
 Reaches wide market
 Creates Employment
 Effect on Prices
 Effect on consumer demand and choices
 Effect on business cycle

Details in Hand Written Notes…………….

 Role of Advertising in Social Development of India

 Creates Awareness
 Enhances Standard of Living
 Facilitates R&D
 Creates Competition
 Reflects Cultural Value
 Improving Product Quality
 Facilitate Competition
 Material Utilities
 Breaking the ice
 Making people socially responsible

Details in Hand Written Notes…………….