In: Categories » Business » Advertising » ADVERTISING IN SMALL BUSINESS
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I. DEFINITION Advertising consists of those activities by which visual or oral messages are addressed to selected public for the purpose of informing and influencing them to buy products or services or to act to be inclined favourably toward ideas, persons, trademarks or institutions featured. As contrasted with publicity and other forms of propagandas advertising messages are identified with the advertiser either by signature or oral statement. Further, advertising is a commercial transaction involving pay to publishers, broadcasters or other media which are employed. From the above definition, advertising indicates that:
II. MEANING Advertising is any paid form of non-personal presentation of ideas, good or services by an identified sponsor. It includes all the activities involved in presenting to a group of persons a non-personal or visual, openly sponsored message regained a product. The term advertising is used to give expression to all non-personal methods of stimulating sales and of increasing or retaining patronage of dealers and customers. It may be defined as the mass method of selling which supplements the voice and personality of the salesman. The committee on definitions of the American marketing association gave the following definition of advertising: Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. It involves the use of such media as following: magazine, newspaper space, motion pictures, outdoor direct mail, novelties, radio, television, cards, catalogues, directories, references, programmes, memos and circulars. III. ADVERTISING AND ADVERTISEMENT The messages are known as advertisement. Advertisement is nothing more than a message. Advertising is a process. It is a programme or series of activities necessary to prepare the message and bring it to the intended persons or market. The reader knows who is behind the advertising, as the sponsor is openly identified in the advertisement itself. Payment is made by the sponsor to the media, who carry the message. IV. FUNCTIONS OF ADVERTISING We may group the various functions of advertisement in two (a). Primary functions and (b) Secondary functions
V. MEDIA OF ADVERTISING
VI. SOCIAL AND ECONOMIC EFFECTS OF ADVERTISING Advertising is concerned with presenting the information about the product in such a way that it touches the buying motives of the potential customers situated far and wide. By making new products acceptable to the consumers and users it helps in the expansion of industrial activities. Good produced in anticipation of demand are made known to their potential buyers and their confidence in the suitability and usefulness of the products is created. Thus advertising helps in sustaining and increasing employment. Increased employment brings additional income to the community which stimulates further demand for existing and new products. Advertising has become an integral part of our modern day marketing in particular and economy in general. Advertising is an inseparable and indispensable adjunct to the newspaper at the price for which it is sold. Advertising creates mass demand and thus makes production profitable by coordinating distribution with production. It has made more goods available to the consuming public at a price they can pay. Motor car is an example. By creating large demand, production of cars of cheaper price was made possible. It has educative value also. More and more people use soap and tooth brushes now than a few decades before. Dietary habits of people have also undergone changes. Advertising of branded goods in effect guides public to choose products of standard quality. Social and economic significances of advertising can also be understood from the advantages derived from it. VII. ADVANTAGES OF ADVERTISING Chief merits of advertising as means method of impersonal selling are that it supports the efforts of salesman, it helps to reach people inaccessible to salesmen, improves relations with the dealers, introduces new product, open up new market for the existing product and stimulates repeated sales. This is advantageous to both the manufacturers and consumers. VIII. IS ADVERTISEMENTS A WASTE? Although the benefits of advertising are numerous it is one aspect of marketing that is subjected to a very severe criticisms. When the objectives of an advertisement are not realized, then the amount spent on advertising is a waste. If it is so, this amount can be utilized for some beneficial purposes improving the quality or other services. One should consider all relevant factors taking a decision on its usefulness or wants. The aim of advertisement is to promote sales of products or service. Advertisement awakens the public at large. The cost of advertisement is included in the price. Advertising is mobilizing marketing wheels, on which marketing moves. Advertisement may be wasteful if the resources are wasted for no meaningful objectives. Here the resources are either the advertising space or time unproductive expenditure. Again, the possessive appeal of advertisement may make people buy one thing for another and thus make resource allocation in a society. To the extent the persuasive power is successful in making a better allocation of resources; the advertising is a beneficial tool to the society. It is well known that any unproductive expenditure is a waste and advertisement is not an exception. Waste can be avoided by following clearly drawn principles and plans. But considering the other uses and advantages of advertising it can be said that advertisement is not a waste but a creative work. The various objections against advertising are listed below:
XI. ADVERTISING CAMPAIGN A firm wants to advertise its products have to develop an advertising campaign. An advertisement campaign is a planned coordinated series of advertisements build. First the goals to be achieved are established. Then the central theme of the advertisement is decided. Appeals to be stressed are thought of in the light of the buying motives of the consumers to be covered. Then media is selected, finally, individual advertisement are created and produced. Selection of the media is usually based on the following:
Methods of organizing advertising campaign There are four alternative methods for organizing an advertisement campaign. These are as follows:
Relatively small firm uses its sales department to organize its advertising campaign. Large retailing and manufacturing firms prefer to have separate advertising department for the purpose. Many manufacturers combine efforts of their own advertising department and advertising agency. In such a case advertising acts as liaison between the advertising agency and the firm. Advertisement department is responsible for the preparation and administration of the advertising budget. It also approves the plans and advertisements prepared by the advertising agency for the firm. The advertising department is also responsible for undertaking direct mail advertising, dealer displays and other activities not undertaken by the advertising agency. X. COPYWRITING The full text of an advertisement is known as copy and the person who prepares or writes the copy is known as copy writer. The copy of an advertisement has to be drafted with great care, skill and imagination. A copywriter should draft his copy bearing these objectives in mind. Qualities of a good advertisement copy An advertisement copy should bridge the gap between the advertiser and the readers, if it is to be effective. A great deal has been written and spoken about the science or the art of copy writing and his qualities necessary for an effective copy. The following are considered to be the attributes that should present in an advertising copy:
A good advertisement copy shall have the following characteristics features:
XI. ADVERTISING AGENCY An advertising agency is a group of experts on various phases of advertising and relates marketing areas. It is an independent company set up to render specialized services with regard to advertising. They are independent companies and are not agents as the term suggests. Reasons for using advertising agent There are several reasons for a company getting the services of an advertising agency when it does not have a good advertising department. (1) Company does not have specialists as the agencies have (2) An agency can give the company an objective outside law point. The agency representative can give their frank opinion of the product which a company advertises find it difficult to do. (3) Company can benefit from the agency’s experiences with its many products and clients. (4) Agency feels a greater pressure than the company’s own departments for effective results (5) Because of the manner in which the agencies are compensated the use of an agency may not cost advertiser anything. XII. ADVANTAGES OF ADVERTISING Advertising creates a demand for the goods. Increased demand expands production by modern means and methods which ultimately reduce the cost of goods. It is beneficial to manufacturers, retailer and also to consumers at large. Its advantage is explained below:
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