Download Our Android App

Google Play

Banking Marketing Aptitude Advertising Marketing Aptitude - Advertising

Marketing Aptitude - Advertising

Category : Banking

 

Advertising is the most commonly used tool of promotion. It is a form of marketing communication used to encourage, persuade or manipulate the audience i.e., viewers, readers, listeners or a specific group to take or continue to take some action. The word 'advertisement' comes from the Latin word adventure which means 'to turn toward'.

Advertising that promotes organizational images, ideas and political issues is institutional advertising.


 

Characteristics of Advertising

 

The characteristics of advertising may be stated as follows

  • Impersonal

It involves sending messages through one or more media such as television, radio, newspapers and magazines, etc. It is called impersonal because the Message is conveyed through some media rather than a person.

  • The Idea is to Promote Goods or Services

Advertising is done with a specific objective of promoting a product or service and increase their sale. The message generally, contains information regarding products characteristics, prices, uses and important needs that may be satisfied by use of the product.

  • Sponsorship

            The message is sent by manufacturers, wholesalers and retailers who are called sponsors of the advertisement.

  • Paid From of Communication

Advertisements appearing in the newspapers, television, cinema halls, etc. are duly paid for. The sponsors pay huge amounts for use of space in newspaper or time slot in television and radio, etc.

  • Facilitates Consumer Choice

            It helps the consumer to purchase the right product as per their requirement and budget.

  • Element of Creativity

A good advertising campaign involves lot of creativity and imagination. A campaign becomes successful only when the message satisfies the expectation of the consumer. Thus, creativity plays a big role here.

 

Objectives of Advertising

 

An advertising objective is a specific communication task and achievement level to be accomplished with a specific audience in a specific period of time.

The main objectives of advertising are

  • Introduction of New Product

Companies keep on introducing new products in the market and need to inform the prospective customers about its features, price, usage, availability, etc. Advertising not only attracts their attention but also helps them in making an opinion about the product and taking the best purchase decisions.

  • Increase in Sale

Advertising helps in increasing the sale of company's products. It also helps in turning non-users of products to users of products and also in attracting the users of competitors products.

 

  • Maintain Existing Buyer

Now-a-days new products keep on entering the market at a fast pace and consumers tend to switch over to the new products. Advertising is used to remind the consumers about how good their products or services are and that they are still in the market as old and reliable ones.

  • Create and Enhance Goodwill of the Firm

Advertising helps in building reputation of the company. Through advertisement, the firms can communicate their achievements to the consumers and clear any misconceptions or doubts in the mind of the public about themselves or their products.

  • Remind Consumer

It aims to stimulate repeat purchase of products and services. Expensive four colour Coca-Cola ads in different magazines are intended to remind people to purchase Coca-Cola.

  • Convince Consumer

It aims to convince current purchasers that they made the right choice. Automobile ads often depict satisfied customers enjoying special features of their new car.

  • Create and Enhance Brand Image

            Advertising is also used for creating a brand image which helps in building customer s loyalty.

  • Help in Persona! Selling

Advertising facilitates the process of personal selling. The salespersons job is made easier if the customer is familiar with the product.

 

  • The Five Ms of Advertising

In developing an advertising programme, marketing managers must always start by identifying the target market and buyer motives.  Then they can make five major decisions. These are known as five Ms of advertising.

  1. Mission
  2. Money
  3. Message
  4. Media
  5. Measurement

 

Types of Advertising

 

Some common types of advertisement are

  • Classified Advertisement Ammonals, property related advertisement, auction information, tender noticed, vacancies, etc. related advertisements.
  • Decorative Advertisement National festivals, specific function, important incidents, etc. related advertisements.
  • Financial Advertisement Advertisements related to bank, stock market, Life Insurance Corporation, etc.
  • Informative Advertisement Advertisements related to public education, intellectual and cultural consciousness, traffic security, police system.
  • Authenticated Advertisement Advertisement of any product or service done by any famous personality.
  • Pannel Advertisement Advertisements published on both the sides of the heading of newspapers its titles or folio.
  • Souvenir Advertisement Souvenirs published by different self-help    organizations,    public installations, etc.
  • National Advertisement Advertisements done through various national newspapers, magazines, television and radio, etc.
  • Cooperative Advertisement Advertisements given collectively by the various producers of any one product.
  • Contract Advertisement Advertisements given on a concessional rates and for a fixed period of time in various monthly, half-yearly and annually published newspapers and magazines.

 

Classification of Advertisement on the Basis of Stages

 

On the basics of stages, advertisement is classified as follows

  • Pioneering Stage

At pioneering stage, the company tries the target consumer about the new product and informs, influences and persuades them to buy or use it by highlighting the unique features of the product.

  • Competitive Stage

Once the product survives the introductory stage, it has soon to face hard competition with other established brands of the market. At this stage, advertisement tries to promote sales effectively.

  • Retentive Stage

When the product has captured a large share of the market, 'retentive advertising' is undertaken to maintain or retain the stable position in the market as long as possible.

  • Functions of Advertising
  • It promotes the sale of goods and services by informing and persuading the people to buy them.
  • It helps in the introduction of new products in the market.
  • It facilitates large-scale promotion.
  • It stimulates research and development activities.
  • It educates the people about new products and their uses.
  • It provides on important source of revenue to the publishers of newspapers and magazines.
  • It builds up the reputation of the advertiser.

 

Media of Advertising

 

Advertising media are the means through which messages regarding products and services are transmitted from the advertising firm to people at whom that product is targeted.

Following are the types of media that are available for this purpose

  • Press Advertising

            It is printed media of advertising. It includes

  • Newspaper/Magazine Advertising
  • Classified advertising
  • Display advertising

 

  • Outdoor Advertising
  •          Banners
  •          Posters
  •          Hoarding
  •          Sky advertising
  •          Bus advertising
  •          Car cards
  •          Tram advertising
  •          Advertising board
  •          Electric display
  •          Posters
  •          Sticker advertising

 

 

  • Direct Mail Advertising
  •          Post card
  •          Booklets
  •          Folders
  •          Sales letter
  •          Price list
  •          Circular
  •          Catalogue
  •         Personal letters
  •          Monthly magazines
  •          Leaflets

 

  • Electronic Advertising
  •          Radio
  •         Television
  •          Cinema
  •          Video Cassette
  •          Cinema Slide
  •          Film
  •         Loudspeaker

 

 

  • Entertaining Advertising
  • Drama
  • Fairs
  • Music programmes
  • Exhibitions
  • Educational Programmes
  • Demonstration

 

  • Point of Purchase Advertising
  • Window display
  • Counter display

 

  • Modern Advertising
  • Satisfied Customer
  • Past Customer
  • E-commerce
  • E-mails
  • Mobile
  • Internet (Digital Marketing)

 

  • Factors taken into consideration while selecting the advertising media
  • Nature of product
  • Objectives of advertising
  • Nature of market
  • Life of advertisement
  • Media used by customers
  • Type of audience
  • Financial consideration
  • Circulation of media

 

Principles of Effective Advertisement

 

  • It must attract the attention of the people.
  • It must suggest something to the reader or listener of the advertisement.
  • It should aim at educating the people for which it is meant.
  • It must have a conviction value.
  • It should create a need for the product in the mind of the people and make them buy the product.
  • It must make the people remember or retain the message.

 

  • Advantages of Advertising

The purpose of advertising is to convince customers that a company's services or products are the best and enhance the image of the company and also to hold existing customers.

            The advantages of advertising are explained below

  • Benefits Consumers

Advertising helps the consumers to gain useful information about the products, prices, quality, terms of sale, after sale services, etc. Besides providing such information, advertising also guides the customers about the right use of the product.

  • Benefits Manufacturers

Advertising   helps   the   manufacturers   in introducing new products, maintaining customers of existing products and in increasing their sales by attracting new customers.

  • Benefits Society

The enhanced competition resulting from advertising motivates the producers to make improvements in their existing products and find out better alternatives through Research and Development (R & D) activities.

  • Limitations of Advertising

            The limitations of advertising are

  • Adds to Cost

Money spent on advertising eventually, results in increased cost of the product, which is passed on to the consumers through increased prices.

  • Undermines Social Values

Advertising may introduce ideas or concepts alien to our culture. These new values generated or propagated by advertising may affect our social, moral and ethical values.

  • Creation of Monopoly

Business firms which can spend heavily on advertising are usually the ones who grab a bigger share of the market. Such firms generally have a monopoly which results in unequal opportunity for small producers who eventually perish.

  • Encourages Sale of Inferior Products

Advertising does not distinguish between superior and inferior products and persuade people to purchase even the inferior products.

  • May Not Increase Overall Demand

Advertising does not always increase demand. In many cases, a number of firms manufacturing similar products may advertise vigorously. This may not result in an actual increase in the total demand for the product but simply shift demand from one brand to another.

 

Publicity

 

Publicity is a part of marketing and customer relations. Publicity is also non-personal communication about an organization on its products that is transmitted through a mass medium in the form of news but is not paid for by the organization.

  • Characteristics of Publicity
  • Third persons involve in providing information and messages about goods or services of a firm.
  • The business firm need not bear expenses for the publicity materials communicated to the general public through mass media.
  • Information and messages about business firm and its products can be communicated to greater number of audiences and readers by making flow of news and holding press conference.
  • There remains no possibility of repetition of the information and messages about the firm and its products communicated through publicity.

            Difference between Advertising and Publicity

Advertising

Publicity

Advertising comes from an identified sponsor.

Publicity comes from a natural and impartial source. 

Advertising is a paid form of ideas, goods and service.

Publicity is not paid by sponsor. 

Advertising is what the organization says about its product.

Publicity is what others say about the organization.

Advertising always carriers a positive image because the organization pays for the content.

Publicity can be positive or negative because comes from an impartial source. 

Advertising is targeted to the particular audience by the sponsor.

In publicity, it is not focused.

Most of the time advertising ignores social responsibilities.

In publicity, special stress is given on social responsibilities.


 

Some Important Terms

 

  • Surrogate Advertising It is prominently seen in cases where advertising a particular product is banned by Law. Advertising for products like cigarettes or alcohol which are injurious to health are prohibited by Law in several countries is called surrogate advertising.
  • Industrial Advertising It is a type of advertising which is directed at commercial business customers. The advertised products are raw materials, components or equipments needed in the production or distribution of other goods and services.
  • Sandwich Board Advertising A sandwich board is a type of advertisement composed of two boards with a message or graphic. It is carried by a person, with one board in front and one behind, creating a sandwich effect.
  • Advertising Frequency The number of repetitions needed to put the brand's message across to consumers, has an obvious impact on the advertising budget.

 

Tit - Bits

 

  • The steps in scientific advertising campaign includes (i) Decision to advertise, (ii) Marketing research, (iii) Determining advertising budget, (iv) Determining objective.
  • Promotional advertising includes showroom and exhibition, window advertising, interior display.
  • When a product or brand is embedded in entertainment and media then it is known as convert advertising or guerilla advertising.
  • Publicity may have favorable or unfavorable impression on the public about the company and its products,
  • Mail advertising includes price list, booklets, novelty gifts and business reply envelope


 

 

Other Topics



LIMITED OFFER HURRY UP! OFFER AVAILABLE ON ALL MATERIAL TILL TODAY ONLY!

You need to login to perform this action.
You will be redirected in 3 sec spinner

Free
Videos