1.1 DEFINITION OF ADVERTISING
Advertising as defined by American Marketing Association (AMA), ‘any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor
1.2 FEATURES OF ADVERTISING
- It is a paid form:
The organization needs to pay for the time slot or the space booked in case of broadcast or print advertisements. There is a commercial transaction between the organization wanting to advertise and the medium which is being used to advertise. The commercial terms are based on the frequency of the ad appearing, popularity of the TV program, wide viewership of a particular TV channel or the subscription for a newspaper or magazine.
- It is Non-personal in nature:
The organization reaches out to the audience at large in a non-personal manner. There is no human involvement. The information it broadcasted to one and all, whether the recipient of the information is a potential or an actual user. There are times the information is available but is not read. The organization relies on mass medium of communication and is unable to reach out to each and every potential or actual user as there are no salesmen appointed.
- There is presentation and promotion:
AaThe organization tends to give out information regarding the product features, uses and advantages. The organization also elaborates on the way the product is to be used in the form of a demonstration. Any promotional activity that is being run by the organization is also well communicated in the advertisement. Volume discounts and cash offers, are well advertised to induce the viewer to buy the product or service.
- Ideas, goods and services can be advertised:
The organization is able to advertise not only the goods but also the services Ideas that are at the very inception stage of idea generation also can be advertised and investors can be sought. The products necessarily do not have to be tangible in nature. Service providers use advertising as an effective tool of communication. The customers rely on the information that is provided through the advertisements. This information helps them decide in favour or against a particular organization’s product or service
- The sponsor is well identified:
The organization pays for the advertisement. As it is paid for, the source of the information is well known. The authority, responsibility and accountability is fixed as the name of the organization that puts out the information is known. The viewer can rely on the information as it is given by the organization itself. The ad campaign is designed to convey information as the organization may desire
- It is an art, science and profession:
The organization designs the advertisements effectively communicate information regarding all the features and attributes of a given product or service. Putting across the entire information in a small space involves a lot of creativity so that the relevant information is not left out. The use of colours, signs and symbols make the advertisement attractive and draws attention.
It is a science as it relies on facts and figures. Though the end-user is a human and human psychology plays a very important role, there are scientific explanation available that helps to correlate action and reaction. In case of products and services, when an organization introduces a product or service with the promotional offer, the consumers tend to act in favour of the product.
It is also a profession as there are many individuals who have made careers There is training involved that helps to understand the job profile and perform in a desired manner. All ad agencies have a professional approach. There is accountability and fixing of responsibility at every stage.
- It is a vital element of the marketing mix:
Advertising helps all the 4P’s of marketing. Advertising helps the product as the product features and uses are advertised that help the consumer to decide in favour of a particular product
Advertising also talks about the price of the product. There are several advertisements that compare price of two leading products. Price also manages to find room in particular advertisements.
Advertisement helps to bring about place utility. It states where exactly the product can be bought from. It also helps the vendor’s as the products are fast moving because of prior awareness of the same The venders don’t need to stock large inventory as they get a fairly good idea on the movement of the goods based on the frequency of the ad campaign. The venders job is half done as the customer would come asking for a particular product because of an advertisement already seen by them
Advertisement also elaborates on the promotion activity of the organization Special offers such as ‘buy two get one free’ or Rs. 10/- off as an introductory offer is also mentioned on the pack itself
- It uses persuasion as a technique:
Repeated ad campaigns help the consumer to decide in favour of a product or service. Advertisement also help in brand recalling. It is meant to ensure that the particular brand name stays topnost in the mind of the consumer so that as and when the need arises for a given product or service, a particular brand name automatically is preferred and hence the consumer moves in favour of a particular product by purchasing the same.