Any paid form of non-personal presentation and promotion of ideas, goods and services of an identified sponsor.

Advertising consists of all the activities involved in presenting to a group a nonpersonal, oral or visual, openly sponsored message regarding a product, service or idea. This message called an advertisement is disseminated through one or more media and is paid for the identified sponsor-WILLIAM J STANTON

Excludes personal activities Paid means of communication

All personal efforts are excluded Example: Salesmanship To media by either advertiser or sponsor Example: Newspaper, radio, etc

Issued by advertiser Gets identified with advertisement or sponsor

Result oriented
Multiple means/media

Detailed cost benefit considered Definite objective Depends on the nature of the product Most popular media selected

Update information to customer Offset adverse competition

Introduce & establish product Improve & expand market Supplement personal salesmanship

Cover masses Create & improve goodwill

 Creating awareness Increase sales Brand identity & Brand image Communicate a change Increase the buzz value

 HELPS FORECAST DEMAND Creates curiosity-desire-demand Cultivate response-probable demand

DEMAND STIMULATION Seeks to impress prospective buyers Affect preference & priorities

DEMAND SUSTENANCE
Ensure regular and continuous demand Reminder ads

PLANNING PRODUCT
Production planned as per demand Produce products that carries demand

 HELPS DECIDING SCALE OF PRODUCTION

Creates inquisitiveness among the prospective buyers. Quantum of demand expected

AUGMENTS DISTRIBUTION
Attracts several intermediaries Example- C&F agents, retailers,etc

COST REDUCTION
Customer information as well as feedback Eliminate wasteful expenditure

HELPS COUNTER COMPETITION

- Impressive ads

- GOODWILL
-

- Positive impact Create place/impression of the product

Product information Customer education Minimization of distribution channel Quality products Reduced product cost Improved standard of living

Information about new, improved Relevant information Includes details of special features, usage Purpose knowledge updating Identifies manufacturer in relation to product Lower overhead cost Based on customer demand product attributes are added Mass dissemination of information Direct selling Customer education, quality products, better price Higher utility of products and services

Employment Quality control Eliminates low quality products Media development

Advertising industry Example- radio, TV, internet, etc Competition, customer retention Positive advertisingidentify better products Working for sponsorsedge over other competitors

Adds to cost of products

Ads expenditure on final price of product

Art, skill to lure customer At times features, process and utilities are hyped / misleaded

Misleading
Undependable Indiscriminate Consumerism Undesired

Customer preferences, perceptions differ General ad strategy may not serve the purpose

Promotes all the standards of products

Competition among consumers- based on products advertising

Deceived of facts Creation of false image about poor quality product

 Facilitates introduction of new products Improves sales by educating customers Facilitates to build up reputation for the product and advertiser Helps to communicate the public at large as to the product and organizational achievement. Provides employment Provides source of revenue to media, press Helps to plan production and develop products Tries to improve product through regular feedback

 NEWSPAPER
Provides large coverage BENEFITS
Large circulation-secure coverage-one time expenditure Repetition possible at marginal extra cost Cheaper compared to other media

LIMITATIONS
Limited to educated people Less effective Life is short

 MAGAZINES & PERIODICALS

Advertised based on the product type EXAMPLE- India today, OutlookGeneral consumer goods Vogue, Femina- Fashion products Sports star- sports products BENEFITS
More attractive- column advertising Comparatively longer life Detailed description of features and quality Covers various sections of society

LIMITATIONS
Limited to specific readers only

 DIRECT MAILING
Communicate directly with customers Prepares list and send letters or literature Greatest advantage direct contact with customers and control on it

WINDOW DISPLAY
Display of products through specially created windows Provides cost effectiveness, space utility and control of display

 SLIDES OR FILM
Slides are still films showing the product Films or small documentary which exhibit the product

MUTURAL OR OUTDOOR ADVERTISING

Posters, bill boards, wall writings, etc. Posters- important public places Bill boards- near signals, main roads, streets Wall writings- bus stations, railway stations, etc

 VEHICLES DISPLAY
Uses method of transport Buses, inside trains, etc

RADIO
Mass communication and special appeal Effective for both educated and uneducated Limits to only listeners and non visual Relatively less cost

 TELEVISION
Visual electronic medium covering large section of society Done in form of short commercials and sponsored programmes Takes product visually to the homes of customer without actual approach Provides better demonstration of product and its features, utility, etc. Limitations include cost

Nature of product Coverage

Class of consumers Cost

Presence of competitors Purpose

Meaningful
Informative Reasonable cost Customer satisfaction Response generating Value conscious

An advertising agency is: An independent business organisation Composed of creative and business people Who develop, prepare and place advertising on advertising media For sellers seeking to find customers for their goods and services

 CLIENT SERVICING Also called account executives. Acts as the link between the agency and the client. He suggests what the client exactly wants to his ad agency. He is the person who carries the client brief and is also responsible for the approvals. CREATIVE DEPARTMENT Under the creative director are a team of copywriters and visualisers who arrive at the big idea. Accordingly the storyboard is prepared and script work is done. The final layout is sent for approval to the client. PRODUCTION DEPARTMENT The production department is responsible to convert the storyboard into a finished layout if its for print medium or Outdoor. However the TVC will be outsourced to a production house.

 MEDIA DEPARTMENT
The Media Planner along with Media manager and brand manager of the client prepares the final media budget and purchases insertions for print media (space buying) or purchases radio spots or purchases TV time if its on television. Appropriate media mix is developed.

RESEARCH DEPARTMENT
In fact research department functions before and after a commercial is made for pre-testing and post-testing of media respectively. Consumer insights and brand usages are also tested at times, according to client in many instances.

FINANCE DEPARTMENT This department looks after the accounts (financial records) for the agency.