Importance of Advertising
1st Year POC - Principles of Commerce Notes
Importance of Advertising
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DEFINITION
“Advertising is an art of providing market information through the
various media of communication such as magazines, newspapers,
television, radio etc. at the expense of the company for the purpose of
increasing or maintaining effective demand and making easy the sale
specific goods and services.”
PURPOSE OF ADVERTISING
The purpose of advertising is:
1) to enable the public to know the features and uses of the products
and overcome traditions and prejudice that may reduce competition.
2) to make easy and increase the sale of present products, to maintain
consumer’s awareness, to bring it equal with advertisement of competing
firms and to reduce the amount of personal sales efforts required to
receive an order.
3) to introduce a new product model of service in the market.
MEDIA OF ADVERTISING
Media means the source in which the advertisement appears. It is a
singular as well as plural term. Various types of advertising media are
explained as under:-
A. RADIO
Today radio has become very important and can be utilized for
advertising the goods which are sold either within the country or all.
Today’s commercial services of radio Pakistan are becoming very popular
day by day .but life of this advertisement is very short .
B. MAGAZINES
Magazines can be used for the products which are sold out all over the
country .this type of advertisement is not flexible as changes cannot be
made in the advertisement copy easily it is becomes the copy of the
advertisement is to be submitted to the advertising company 4 to 5 weeks
earlier.
C. NEWSPAPERS
These newspapers which are daily or weekly are used for advertising the
goods of local businessman . a newspaper has a very short life as it is
destroyed usually after a period of 24 hours .
D. MEAN SIGNS
It means advertisement through bulbs . this type of advertisement media
is becoming popular day by day in big cities of Pakistan like Karachi
,Lahore and Rawalpindi.
E. ADVERTISING BY POST
Small firms advertise their products through letters ,postcards ,catalogue etc.
F. ADVERTISING BY TELEVISION This type of advertisement delivered
through a television is a combination of spoken words and visual
presentation of products and their benefits .
G. DIRECT MAIL
It is widely used and includes postcards ,letters, catalogues, folders,
booklets etc. they have variability of coverage .large and small
business both can use it. basis of this kind of advertising is mailing
list .this list which has the names of the persons to whom the letters
are sent is compiled from time to time from many sources . It needs
utmost care and up to datedness. This list can be made extremely
selective regarding geographical and consumer interest .It is costly
because of printing. Postage ,typing and packing.
H. CAR CARDS
They are used in street cars , buses , subways and rail road cars where
they may be seen by people on the way to shopping trips etc. They are
effective for all i.e national ,regional and local advertising .They are
flexible and reached the people to whom the magazines don’t reach.
I. PACKAGES ,LABELS AND INSERTS
Advertising copy on package must be brief and should have pictures and
brand name , qualities , companies name etc. Some are bottles and some
are board packages.
J. WINDOW DRESSING
Usually big shop decorates there windows of shop so as to attract
customers. This is also one of the media of advertising. The window is
dressed in such a way that it may attract attention of the buyers.
K. SAMPLING
Some firms distribute there products free of cost so as to advertise its product to secure sales volume in future.
ADVANTAGES OF ADVERTISING
1. It creates demand for a new article by arousing interest of the public.
2. It increase the sales volume of establish articles constantly keeping the selling points afresh in minds of the customer.
3. It educates the general public about new use or uses of a product.
4. It reduces competition.
5. It creates goodwill by continues reminder to the public about the trademarks etc.
6. It increases additional sales by encouraging present customers in
using the articles more frequently and in increased quantities.
7. It facilitates the job of the salesman and dealers by introduction the products to the public.
8. It reduces prices as the production volume increases, which in turn reduces the overhead expense.
9. It insures better quality, improving the quality of goods to have better appeals to the customer.
10. It increases the employment because production increases.
DISADVANTAGES OF ADVERTISING
1. It results sometimes in exaggeration ( over-valuation) and
misrepresentation. Such advertisement misleads the public and loses the
confidence of the public in the enterprises.
2. It expands the market for the articles of luxury and comfort, because
the goods which are needed to meet primary needs of life are not
usually advertised.
3. It causes economic loss due to rapid changes in style creation of new
objects of consumption and changes in style are waste and determinate
to human good.
4. Advertising is impersonal and cannot answer the question asked for by the buyers.
5. It results in monopoly through brands.
IS ADVERTISING A WASTE?
It is not a waste at all. It is an aid to business expansion.
Advertisement help buyers who usually do not know or are really aware of
the existence of the seller. It expands the sellers market by spreading
information about the product. Some people say the advertising increase
the cost of production which is to be borne by the customer. It is
completely wrong. It creates new demands of commodities and the service
which lead t a production on large scale and when the production
increases the cost of advertising is not waste but brings gain in the
business.
DIFFERENCE BETWEEN ADVERTISEMENT AND PUBLICITY
ADVERTISING
1. Some definite message is communicated.
2. It is paid form of publicity.
3. It is non personal.
4. Its sponsor is known.
PUBLICITY
1. It is generally done in form of news, articles, features written in newspaper.
2. No direct payment is involved.
3. It may be personal.
