Definition and Meaning of Advertising
The word advertising originates from a Latin word advertise, which means to turn to. The dictionary meaning of the term is “to give public notice or to announce publicly”.
Advertising may be defined as the process of buying sponsor-identified media space or time in order to promote a product or an idea. The American Marketing Association, has defined advertising as “any form of non-personal presentation or promotion of ideas, goods or services, by an identified sponsor.”
What Advertisement Is? Advertisement is the process of mass communicating of information intended to persuade buyers to by products with a view to maximizing a company’s profits.
The elements of advertising are:
- It is a mass communication reaching a large group of consumers.
- It makes mass production possible.
- It is non-personal communication, for it is not delivered by an actual person, nor is it addressed to a specific person.
- It is a commercial communication because it is used to help assure the advertiser of a long business life with profitable sales.
- Advertising can be economical, for it reaches large groups of people. This keeps the cost per message low.
- The communication is speedy, permitting an advertiser to speak to millions of buyers in a matter of a few hours.
- Advertising is identified communication. The advertiser signs his name to his advertisement for the purpose of publicizing his identity.
What is Included in Advertising?
- The information in an advertisement should benefit the buyers. It should give them a more satisfactory expenditure of their rupees.
- It should suggest better solutions to their problems.
- The content of the advertisement is within the control of the advertiser, not the medium.
- Advertising without persuasion is ineffective. The advertisement that fails to influence anyone, either immediately or in the future, is a waste of money.
- The function of advertising is to increase the profitable sales volume. That is, advertising expenses should not increase disproportionately.
Advertising includes the following forms of messages: The messages carried in-
- Newspapers and magazines; (Read: News Paper Advertising and Magazine Advertising)
- On radio and television broadcasts; (Read: Radio Advertising and Television Advertising)
- Circular of all kinds, (whether distributed by mail, by person, thorough tradesmen, or by inserts in packages);
- Dealer help materials,
- Window display and counter — display materials and efforts;
- Store signs, motion pictures used for advertising,
- Novelties bearing advertising messages and Signature of the advertiser,
- Label stags and other literature accompanying the merchandise.
What is excluded from Advertising?
Advertising is not an exact science. An advertisers circumstances are never identical with those of another; he cannot predict with accuracy what results his future advertising efforts will produce.
- Advertising is not a game, because if advertising is done properly, both the buyer and the seller benefit from it.
- Advertising is not a toy. Advertiser cannot afford to play with advertising. Advertising funds come from sales revenue and must be used to increase sales revenue.
- Advertisements are not designed to deceive. The desire and hope for repeat sales insures a high degree of honesty in advertising.
The activities excluded from advertising are:
- The offering of premiums to stimulate the sale of products;
- The use of exhibitions and demonstrations at fairs, show and conventions;
- The use of samples and activities, involving news releases and the activities of personal selling forces;
- The payment of advertising allowances which are not used for advertising;
- The entertainment of customers
Objectives of Advertising
Each advertisement is a specific communication that must be effective, not just for one customer, but for many target buyers. This means that specific objectives should be set for each particular advertisement campaign. Advertising is a form of promotion and like a promotion; the objectives of advertising should be specific. This requires that the target consumers should be specifically identified and that the effect which advertising is intended to have upon the consumer should be clearly indicated. The objectives of advertising were traditionally stated in terms of direct sales. Now, it is to view advertising as having communication objectives that seek to inform persuade and remind potential customers of the worth of the product. Advertising seeks to condition the consumer so that he/she may have a favorable reaction to the promotional message. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising programme.
The basic objectives of an advertising programme may be listed as below:
- To stimulate sales amongst present, former and future consumers. It involves a decision regarding the media, e.g., TV rather than print ;
- To communicate with consumers. This involves decision regarding copy ;
- To retain the loyalty of present and former consumers. Advertising may be used to reassure buyers that they have made the best purchase, thus building loyalty to the brand name or the firm.
- To increase support. Advertising impliedly bolsters the morale of the sales force and of distributors, wholesalers, and retailers, ; it thus contributes to enthusiasts and confidence attitude in the organizational.
- To project an image. Advertising is used to promote an overall image of respect and trust for an organization. This message is aimed not only at consumers, but also at the government, shareholders, and the general public.
Importance of Advertising
Generally, advertising is a relatively low-cost method of conveying selling messages to numerous prospective customers. It can secure leads for salesmen and middlemen by convincing readers to request more information and by identifying outlets handling the product. It can force middlemen to stock the product by building consumer interest. It can help train dealers salesmen in product uses and applications. It can build dealer and consumer confidence in the company and its products by building familiarity. Advertising is to stimulate market demand.
While sometimes advertising alone may succeed in achieving buyer acceptance, preference, or even demand for the product, it is seldom solely relied upon. Advertising is efficiently used with at least one other sales method, such as personal selling or point-of-purchase display, to directly move customers to buying action.
Advertising has become increasingly important to business enterprises — both large and small. Outlay on advertising certainly is the voucher. Non-business enterprises have also recognized the importance of advertising. The attempt by army recruitment is bases on a substantial advertising campaign, stressing the advantages of a military career. The health department popularizes family planning through advertising. Labor organizations have also used advertising to make their viewpoints known to the public at large. Advertising assumes real economic importance too.
Advertising strategies that increase the number of units sold stimulate economies in the production process. The production cost per unit of output is lowered. It in turn leads to lower prices. Lower consumer prices then allow these products to become available to more people. Similarly, the price of newspapers, professional sports, radio and TV programmes, and the like might be prohibitive without advertising. In short, advertising pays for many of the enjoyable entertainment and educational aspects of contemporary life.
Advertising has become an important factor in the campaigns to achieve such societal-oriented objectives such as the discontinuance of smoking, family planning, physical fitness, and the elimination of drug abuse.
Advertising helps to increase mass marketing while helping the consumer to choose from amongst the variety of products offered for his selection.