Meaning of Advertisement
The Oxford Dictionary explains advertisement as public announcement of goods, etc. for sale. It further says to advertise means to describe and praise (goods etc.) in public medium to promote sales.
Advertisement is, thus, the process of spreading product information among the potential buyers through a public medium in order to maximize sales. Such a public medium includes, among others, newspapers, magazines, television and radio.
Definition of Advertising
According to William J. Stanton,
advertising consists of all the activities in presenting to a group a non-personal, oral or visual, openly sponsored message regarding a product, service or idea.
The American Marketing Association defines advertising as
any paid form of non-personal presentation and promotion .of goods, services or ideas by an identified sponsor.
The following points emerge from the above definitions of advertising:
1. Advertising is a paid form of demand creation.
2. It is a non-personal presentation of goods or services.
3. It is done through a medium.
4. Such a medium may be a visual medium like newspapers and magazines or an oral medium like the radio or a visual cum oral medium like the television.
5. The non-personal presentation of goods or services or ideas through a medium should be done by an identified sponsor. Such a sponsor may be the producer himself or a dealer or some other person or organization.
Advertising, unlike personal selling, is not directed at any particular individual. It is directed at a mass audience. Advertising is often used synonymously with publicity. Like advertising, publicity is also a non personal presentation but it is not paid for like advertising. Advertising is, thus, a commercial transaction whereas publicity is not so.
Objectives of Advertising
The various objectives of advertising may be stated as follows:
1. To announce the introduction of a new product.
2. To motivate the buyers to buy.
3. To create demand for the product.
4. To achieve an immediate sale.
5. To announce certain concessions to buyers like discount, price cut, gift etc.
7. To support the activities and efforts of the salesmen.
8. To build up image for the business.
9. To achieve a higher market share.
10. To inform product modifications and alterations to the buyers.
11. To explain how the product works.
12. To counter the competitors’ strategies.
13. To promote sale during off-season.
14. To maximize sale during festival season.
15. To remind the buyers about the company and its product.
Different kinds of Advertising
6 important kinds of advertising are briefly explained as below.
1. Product advertising
Most business houses try to sell their products and services through advertising. The need for product advertising arises mainly because the business has to create demand for its products. This is being done through a public medium like newspapers, television or radio by means of an advertisement.
The advertisement may appear in a visual form with the picture of the product together with its features explained (in the case of newspapers and magazines). It may also appear in the form of oral presentation of the product idea (in the case of radio advertisement) or in both visual and oral forms (as in the case of television advertisement).
Such advertisements speak not only about the product but also stress the brand. Examples are Gopuram turmeric powder, Cock brand crackers, Double-Deer Basmati rice, etc.
2. Institutional advertising
Here, the focus is on the company and its services. Such an advertisement is not intended for the consumers alone. It may also be meant for various other groups like the shareholders, creditors, suppliers and so on. The goal of such an advertisement is mainly to boost the image of the concern. It may also be used to make an offer or an announcement
Example: There may be an offer to the suppliers of materials to submit price-quotations. The advertisement may also announce the date and time of the Annual General Meeting of the company.
3. Competitive advertising
In this case, the goal of advertisement is to show the superiority of one product over the competing products. Such an approach is resorted to when there is cut-throat competition in the market. The advertisement stresses on brand name, product quality, price and the company image.
4. Comparative Advertising
Here, the marketer highlights the comparative features of the competing products. Such advertisements are quite common these days and also have become a matter of controversy. Car, motorcycle and television manufacturers adopt such an approach.
Example: The comparative features of different car models are often advertised by the manufacturers. In the same way, the comparative advantage of two-wheeler are advertised. The advertiser invariably claims that his product alone is superior.
5. Collective or Cooperative advertising
Certain products are jointly advertised by the manufacturers and dealers together. Such an advertising is what is known as collective or co-operative advertising. The manufacturers of car, motorcycle and TV also use such an approach.
6. Non-commercial advertising
Advertisements for non commercial purpose are brought out by charitable organizations mainly to secure financial help from philanthropists. Organizations like the Sivanandha Gurukulam in Chennai solicit financial help from generous people, particularly during festival times, for the benefit of the inmates.