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Nature & Scope of Advertising

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Definitiony Advertising is any paid form of non-personal

presentation of ideas, goods, & services by an

identified sponsor Philip Kotler.

y Advertising is any paid form of non-personalpresentation & promotion of ideas, goods, & services

by an identified sponsor. American MarketingAssociation (AMA).

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5 Phrases Used in the DefinitionyAny form

y Paid form

y Non-personal presentation

y Ideas, goods, & services

yAn identified sponsor

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Characteristic Features of

AdvertisingyAdvertising is one of the methods of promotion mix.

y It is a paid mass communication, not aiming at a

specific individual.y It is a form of publicity, i.e., dissemination of info

regarding a product, service or idea.

y It is salesmanship in writing / printed salesmanship.

y It is a mass non-personal communication. Eitherwritten, spoken / visual means, & not through persons.

y It is sponsored publicity or communication.

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Characteristics -continuedy The sponsor of ad is usually identified in the ad itself.

y It is undertaken to influence the buying behavior of

the customers.y It guides the buyers towards a more satisfactory

expenditure of their hard earned money.

y It persuades buyers to purchase the goods advertised.

y T

he communication media are diverse such as,print newspapers, magazines

broadcast radio, TV

direct mail, billboards

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Nature of advertisingy Element of marketing mix important component

y Element of promotion mix essential element

y

Mass communication basic purposey Messages motivates & inspires

y Price of advertising space, time, language, etc., are sold bythe advertising agencies.

y Sponsor identified advertiser

y Persuasive motivates potential customersy Element of control make them effective & purposive

y Identifiable sponsors & audience point of view

y Target group inf luences target group.

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Scope of Advertisingy Effectiveness of messages -success depends

y Appropriate media -1.type of customers,2.capacity of theorganization.

y Merchandise-attributes of the product, not criticize,.y Advertising Functions-creates demand, builds image, helps

middlemen, promotes marketing system.

y Responsibility of Advertiser-cautious on messages & methods

y Fulfillment of objectives -sales, awareness, NP introduction,sustaining old product

y Generates various activities-mass communication, carryingmessages, creating image.

y Advertising as Art & Science has both characteristics.

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Advertising Situationsy 1.Productmarket variationsy 2.Upgrading a Producty 3.New application, usage or benefit of a product

y 4.Special offersy 5.Change in the brand namey 6.competitiony 7.Distribution & servicey 8.Institutional advertising

y 9.Seasonal productsy 10.Raising capitaly 11.Technology & other inputsy 12.Recruitmenty 13.Educating the public