ADVERTISEMENT

It is the promotion of a product, brand or service in order to attract more customers and increase the sales. It is a paid form of non-personal communication. It is a promotional tool. Advertising is done through newspapers, magazines, television, radio, outdoor advertising or direct mail, search results, blogs, social media, websites or text messages.

STAGES OF PROMOTING A PRODUCT

  1. Market analysis
  2. Selecting the advertising media
  3. Cost-benefit analysis
  4. Deciding the mode of advertisement
  5. Creating the actual advertisement

IMPORTANCE

Customers:

  1.  Awareness of the product available in the market
  2. Helps to find the best product

Seller and companies:

  1. Helps in increasing sales
  2. Helps  to know their competitors
  3. Makes ground for new product
  4. Creates goodwill of the company
  5. Customer loyalty
  6. Demand of the product increases

Society:

  1. Educates people
  2. Deals with social issues like child labor, liquor consumption, girl child killing, smoking, family planning education, etc

TYPES OD ADVERTISEMNTS

  1. Print advertisement
  2. Radio advertisement
  3. Television advertisement
  4. Internet advertisement

TYPES OF AD FORMATS

  1. Banner ads
  2. Interstitial ads
  3. Native ads
  4. Video ads
  5. Playable ads
  6. Ads and adjust

THE BEST ADVERTISING CAMPAIGNS OF ALL TIME

NIKE: Just Do It

  1. Print, television, internet
  2. Connects the customers on an emotional level

COKE: Share a Coke

  1. Print
  2. Encourages sharing

VOLKSWAGEN: Think Small

  1. Print
  2. Consumers recognize and appreciate honesty.

GOOGLE: Year in Search

  1. Internet
  2. Unites everyone and tells customers how much you care that they care

METRO TRAINS: Dumb Ways to Die

  1. Internet, radio
  2. Communicates a simple idea in a creative and memorable way

APPLE: Get a Mac

  1. Television
  2. Explain your product’s benefits in a relatable way so consumers are able to see themselves using it.

KFC: FCK

  1. Print
  2. Demonstrates how to combine humility, class, humor, and ultimately company pride in a message

ADVANTAGES

  • From Viewpoint of Manufacturers:
    1. Increase in sales
    2. Supplementing Salesmanship
    3. Lower costs
    4. Greater dealer interest
    5. Quick turnover and smaller inventories
    6. Steady demand
  • From Viewpoint of Consumers:
    1. Improvement in quality
    2. Facility of purchasing
    3. Consumer’s surplus
    4. Education of consumers
  • From the Viewpoint of Middleman:
    1. Retail Price Maintenance becomes Possible
    2. Acts as a salesman
    3. Ensures quick sales
  • From the Viewpoint of Society:
    1. Change in motivation
    2. Sustaining the press
    3. Encouragement to artists
    4. Encouragement to research
    5. Glimpse of National life

DISADVANTAGES

  1. Deferred Revenue Expenditure
  2. Misrepresentation of facts
  3. Barriers to Entry
  4. Wastage of National Resources
  5. Consumer’s deficit
  6. Increased costs
  7. Product Proliferation
  8. Multiplication of needs

BENEFITS OF INTERNET ADVERTISING

  • Internet Advertising is Huge
  • Internet Advertising is Targeted
  • Internet Adverting Enables Good Conversion Tracking
  • Internet Advertising has a Lower Entry-Level Fees
  • Internet Advertising can be Much Cheaper
  • Internet Advertising has Greater Range

LIMITATIONS OF INTERNET ADVERTISING

  • Clutters
  • Privacy
  • Measurement problem
  • Surfing speed

FALSE ADVERTISING

False advertising is the use of false, misleading, or unproven information to advertise products to consumers. The advertising frequently does not disclose its source. Examples:

  • Photo bleaching
  • Omitting information
  • Hidden fees and surcharges
  • Manipulation of measurement units and standards
  • Fillers and oversized packaging
  • Misleading health claims
  • Comparative advertising
  • Manipulation of terms
  • Puffing
  • Incomplete comparison
  • Inconsistent comparison
  • Misleading illustrations
  • False coloring
  • Angel dusting
  • Guarantee without a remedy specified
  • Bait-and-switch

COMPANIES FOUND GUILTY OF FALSE ADVERTISING

  • VW falsely advertised environmentally friendly diesel cars
  • Activia yogurt said it had special bacterial ingredients.
  • Red Bull said it could give you wings
  • A lawsuit alleged that Taco Bell was falsely advertising its beef.
  • Eclipse said its gum could kill germs
  • L’Oreal claimed its skincare products were clinically proven to boost genes.
  • Splenda said it was made from sugar
  • Hyundai and KIA over-advertised its cars’ horsepower
  • Definity eye cream re-touched a model in an anti-aging ad
  • Wal-Mart falsely advertised the price of Coke in New York