Advertising: Meaning, Nature, Objectives, Types, and Importance Explained

 Advertising

The word advertising is derived from a Latin word advertising which means to turn attention toward a specific thing. Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by identified sponsor. Advertising can be cost effective way to disseminate messages, whether to build a brand preference or to educate people. In developing an advertising perform, marketing manages must always stand by identifying the target market and buyer motives.

Then they can make the five major decisions, known as "the Five M5.

1. Mission: what are own advertising objectives?
2. Money: How much can we spend?
3. Message: What ménage should we send?
4. Media: What media should we use?
5. Measurement: How should we evaluate the results?

According to Wheeler - Advertising is any form of paid non-personal presentation of ideas, goods or services for the purpose of inducing people to buy.

Characteristics of advertising

1. It is non-personal communication to specific audience or consumers.
2. It is a paid form of communication.
3. It may be visual spoken or written.
4. It presents the massage about the product.
5. It is the promotion of idea, goods and services.
6. It stimulates sales or patronage for the product.
7. It helps indirectly for position the product in the market.
8. It persuades people to buy a product.

Objectives of advertising

1. Peroration of ground for sale of new product.
2. Creation of demand.
3. Educate the consumer and the users.
4. Building up Brand Image & Brand loyalty
5. Facing the competition.
6. Informing about the changes.
7. Enhancing goodwill of the fir.
8. Performing selling job.
9. Assisting salesman Efforts.
10. Maintenance of demand.

Nature of advertising

1. Does the product possess unique, important features to focus on Unique Selling Point (USP)
2. Are the hidden qualities important to the buyers
3. Is the general demand trend for the product adequate
4. Is the market potential for the product adequate
5. Is the competitive environment favorable
6. Is the organization able and willing to spend the required money to launch an advertising campaign.

Scope of Advertising

1. Mass communication of consumers, user, manufactures e.tc
2. Providing support to the dealer distributer whole seller & the sale force.
3. Maintenance and development of brand image and loyalty amongst the customer.
4. Promoting the overall image of trust, confidence and respect for the org among those who are closely related to the enterprise
5. Increasing the area of advertising from local to regional, national and international fields.
6. Evolution & development of different media of advertisement

Functions of Advertising

1. To differentiate the product from their competitors - It includes the ability of advertising to differentiate a product so that it has its own unique identity or personality. This creates an awareness of the product & chooses the advertised product over other products this creates an awareness of the product Example: GARNIER FRUTICS (shampoo) bottle has the different color from all other shampoo.
2. To urge product used - advertising is to induce consumers to try new products and to suggest reuse of the product as well as new uses; this is the persuasion function becoming the base on which they shape their future decisions. Sampling in the way to urge the product using Example: Neutrogena acne treatment cream will remove your pimple is 24 hours. NEUTROGENA say no to pimples!!
3. To expand the product distribution - When the consumer comes to know about the particular product from the advertisement he/she wants to try that new product. They go to shops to buy the product; if the new product is not available in a shop, then the shopkeeper consults the distributor to make that product available in his shop.
4. To increase brand preference and loyalty - When the product delivers the promised quality, service and value. Satisfied customers also develop brand preference; each product features and uses are written on the product. Example: 99% girls who are not married will not look at the ad of pampers or any milk powder for children but when they will get married their interest will automatically move towards such ad'
5. Brand loyalty – It is a long-term customer preference for a particular product or service. It can be produced by factors such as customer satisfaction with the performance or price of a specific product or service. For instance, when one buys a tube of Colgate toothpaste and finds it ok, one will not have to spend any valuable time on looking for other toothpaste brands.
6. To reduce overall sales cost - When a product is selling you have to teach the people about the product. Like if we would advertise through newspapers, TV, broachers & internet, it would cater huge sum of masses and if you do individually it would be more costly & time consuming.
7. Creates new demands - Each year new products, including line extensions and new brands are introduced into groceries and drugstores. Example: Wateen telecom is offering wireless internet chips, video conferencing and WIMAX services as they are introducing new services in market it creating new demands.

Types of Advertising

1. Print Advertising - Newspapers, Magazines, Brochures, Fliers
2. Outdoor Advertising - Billboards, Kiosks, Trade-shows and Events
3. Broadcast Advertising - Television, Radio and the Internet
4. Covert Advertising - Advertising in Movies
5. Surrogate Advertising - Advertising Indirectly
6. Public Service Advertising - Advertising for Social Causes
7. Celebrity Advertising

Role of advertising

1. Manufacturers 

• It makes mass selling possible
• It helps easy introduction of products in the market
• It helps in reducing production cost
• It stimulates demand
• It protects from unfair competition
• It helps in creating brand image & goodwill.
• It helps in increasing profits of a company.

2. Wholesaler & Retailers 

• It supplements the selling activities
• It ensures economical selling
• It enables them to have production information
• Its facilities selling
• The reputation created by advertising is also shared by wholesaler & retailers.

3. Consumer 

• It helps in decision making (selection)
• It helps the consumer to know where and when the products are available.
• It acts as an informative service and educates the consumers.
• It is responsible for higher standard of living of the consumers
• It enhances consumer's satisfaction.

4. Sale Force 

• It makes the task of the salesman easier and simpler
• It makes the introduction of the product quite easy and convenient for sales man
• It helps in establish permanent relations with the customers.

5. Community or Society 

• It creates employment directly or indirectly.
• It is responsible for higher standard of living of the people.
• It is educative in nature.
• It makes newspaper e.tc alive
• It promotes art and initiative
• It also assures employment opportunities for the professional artists.

Advantages of advertising

1. Advertising can inform people about different products and services, their utilities, cost and other requirements, and help us in making better purchases.
2. Advertisements of non-commercial issues like AIDS, Polio can help in educating people and notifying them of events and programs related to them.
3. For advertisers, advertisements can help in attracting huge number of potential customers and make positive impact about their products and services.
4. Advertisements create a brand name for the product being promoted. People can recognize the products from the catchy advertisements they see and thus sales are also improved.
5. Advertising can lead to direct feedback from customers. It has been seen that a lot of opinions are received by advertisers on their product/service, which helps in improving the product or service.

Limitation of advertising

1. In case the product is not approved by the public the money spent on advertising proves a waste.
2. Advertising is repetitive in nature.
3. Without effective salesmanship advertising cannot achieve the desired objectives.
4. If the demand of the product is inelastic then it cannot be increasing by advertising.
5. Products have life circle and need to be advertised as long as they survive.

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