These subsets are: We are surrounded by advertisements. Encourages Media. Advertising is not just demand catalyst; it leads to changes in people’s lifestyle too. can be -cost, total cost; per reader/viewer cost Direct count of the number of consumers exposed to the message, and the effectiveness creating awareness. • Not every organisation can afford Salesman can only cover a limited market, while advertising can reach a very large and geographically widespread market with complete ease. ... B Com Hons Final Year Marketing notes Product Diff... Corporate Accounting-Share and Share Capital. promotion strategy. Both numerically and geographi­cally, the size of the market has greatly increased, making it well-nigh impossible for manufacturers to reach the prospects through sales­manship alone. Product Launch – The foremost aim of advertising is promotion. easily overlooked by buyers because of advertisement. Go to Chapter 1 Notes AT&T "You will campaign", customers did not feel AT&T was innovative. hazardous. Outlays on advertising certainly attest to the management’s faith in the ability of advertising efforts to produce additional sales. of the product, and select the best. Since advertising is done on a large scale, the demand of the product increases in wider and unexplored markets too. • It maintains the existing market and explores the new. A simpler (and modern) definition of advertising can be – A paid communication message intended to inform people about something or to influence them to buy or try something. It helped me . Price, product, promotion and physical distribution are the four main elements in a marketing mix. A company’s success is reflected by how it maintains its current position and future expansion. Impressing New Uses of a Product 4. The positive relationship between high relative advertising and price level is supposed to be stronger for products in the later stages of PLC. The producer thus tries to introduce innovative production techniques to increase the level of production. Growth of media, whether it is print or broadcast, undoubtedly is based on its content. Potential customers are approached through suitable advertising media. Need to consider the following issues: Does the product possess unique, important features to focus on Unique Selling Point (USP) Are the hidden qualities important … in mass production and not tailor made products for individuals. An average human is exposed to around 5000 advertising messages in a day. Increased employment brings additional income with the people. Marketing, Products, Advertising, Importance, Importance of Advertising. advertising, hence it sometimes creates monopoly of large manufacturers. (b) Generates Employment – Advertising generates gainful employment opportunities both directly and indirectly. An example of an outdoor advertisement is this hoarding by Audi. The and from people who visit the store but not Business firms very often advertise for establishing an image for the product and creating customers’ loyalty for that product. advertising has power to dictate. and needs!! There is reported an increase of 45.5 per cent in inbound traffic and additional earnings of Rs 8,274 crores in the year 2005 over that in the year 2003. It depends on the requirement of advertiser whether he need a fulls service agency, creative boutique, media buying service agency, or a  sweet shop . Nothing except the Mint can make money without advertising. Creates Employment Opportunities 3. Advertising assists in the realisation of marketing objectives of a company within a specified period of time. The role of advertising related to society is as follows: Advertising is a large function that needs the services of artists, painters, writers, designers, publishers etc., every single day. visual as well as audio tools. Advertising has its share of advantages and disadvantages-. Role of Advertising Related to Consumer: 3. The nature and scope of advertising for a product in turn depends upon the mix of various marketing tools in a given situation. Whatever is produced cannot be sold and whatever is in demand cannot be produced unless society and the economy can afford to do so. There cannot be 100% similarity between two products. Creation of Corporate Image, B: Benefits to Customers – 1. Consumer-oriented: A business exist to satisfy human needs, hence business must find out what the desire of customer (or consumer) and thereby produce goods & services as per the needs of the customer. outdoor ads, many exposures/message, magazines retained for a long money to launch an advertising campaign. There is a perception about positive relationship between the product price and the level of advertising activity for a product. the money for advertising. buyers. As manufacturers control the price of well- advertised goods, price-cutting is not available to the retailers and the shopkeepers as they try to attract customers by giving better and more satisfactory service. For routine or habitual kind of purchases like purchase of glucose biscuits, the mere exposure to an advertisement is likely to trigger a direct purchase action. The nature and scope of advertising for a product in turn depends upon the mix of various marketing tools in a given situation. Any disclosure of that information by the merchant would be a breach of confidentiality. It consists of all the achievements involved in In recent times, the importance of advertising has increased many-fold due to many reasons. In many organisations, the advertising messages/day, 109,500 per year. Basically, advertising is a very artistic way of communicating with the customers. During the campaign, "inquiries"-coupons numbered. Placed-Based, Schools, also sponsor educational programs, It warrants production on large scale to meet the demand of increased number of consumers. Report a Violation, Importance of Advertising – With Benefits to Manufacturer, Middlemen, Sales Force, Consumer and Society, Importance of Advertising – As a Promotional, Marketing and Business Activity. The prices of the same type of product may vary from producer to producer. Advertising plays a very important role in highlighting the culture of a nation across various nations. NATURE, SCOPE AND IMPORTANCE 2. Solves Societal Problems 4. Following are a few examples of advertising. A producer can introduce a new product by explaining the unique features of his product and can create awareness among consumers in order to gain their acceptance. As advertising helps to create and maintain sustained demand throughout the year, the large scale production needs to be undertaken. Advertising creates awareness about these tools and makes the environment conducive to bring success in terms of increase in product sales. The advertisements not only provide information about products but also some of healthy lips, psychological changes, good behavior etc. This improves the popularity and familiarity of the product. Beef council. Advertisements come in many shapes, sizes, and forms. In this way advertising improves social welfare. Therefore, the following benefits accrue to producers: i. Advertising is often regarded as ‘salesmanship in print which pre-sells the product verbally and makes it comfortable for sales personnel to approach the target audience. Unified control ensures better discipline. For certain products, consumers feel that a particular characteristic is very important. For an organization, advertising is important both as a promotional and as a marketing activity. From producers’ perspective, the increase in product demand due to advertising enables production at a large-scale. iii. necessities of life. Privacy Policy. on. Almost all producers introduce their products to market through celebrities who have powerful impact on consumers.