What is advertising? Explain the features and purposes of advertising.

Answer: Advertising is any paid form of non personal presentation & promotion of ideas, goods & services by an identified sponsor. – American Marketing Association.

Advertising consists of non personal forms of communication conducted through paid media under clear sponsorship. – Philip Kotler Advertising is any form of public announcement intended to aid directly or indirectly in the sale of a commodity or service. – Dirksen and Kroeger.Marketing promotion

Characteristics / Features of Advertising:

1. Advertisement must have paid form.

2. It is non personal. Person need not to be present.

3. It must be related to goods, services or ideas.

4. Advertise have to promote goods, services & ideas.

5. There must be an identified sponsor.

Objective/Purposes of Advertising:

1. Creating & increasing demand for goods & services.

2. Assisting personal skill.

3. Persuading customers.

4. Remind them time to time.

5. Stabilizing demand for goods and services.

6. Facing alternative product.

7. Building goodwill of the company.

8. Informing the market about the appearance of a new product and familiarizing the customer with the use of the product.

Functions of Advertising:

1. To identify products & differentiate them from others.

2. To communicate information about the product, its features and its location of sales.

3. To induce consumers to try new products and to suggest reuse.

4. To increase product usage.

5. To build brand preference and loyalty


Q. What do you know about the history of Advertising?
Q. Discuss about the history of Advertising.

The history of advertising might be divided into six periods or stages as follows:

1. Pre-Printing Period: (Prior to the 15th Century.)

a) Signs: Before the days of newspaper & magazines, billboards were the only media.

b) Town Criers: The first means of supplementing sign advertising. 1141 – France.

2. Early Printing period: (From 1500 – 1840.)

Invention of printing press: 1st printed advertise 1472 – William Caxton.

Poster: In 1622 – The times hand list to inform buyers in pure informative nature, in 1652 – Beverage / Coffee / Drink advertisement & in 1712 – Cosmetics advertisement was started.

Spectator: 1735 – Benjamin Franklins Newspaper for Land selling.

3. Period of Expansion: From 1840 – 1900.

a) Rail roads developed as an efficient means of transportation. Trades were expanded in magazines.

b) Education: Literacy people increase, number of magazines & newspaper increase.

c) The advertising Agency: It started in United Kingdom before / early 1800. In USA 1840 or 1841 Volney B. Palmer. Palmer’s organization sold spaces in magazines.

4. Period of Consolidation: From 1900 – 1925.

a. New Functions by Agency: Copy, selection of media, analysis of market, paying method etc. was changed.

b. Truth Crusade: In 1911 a crusade against the ranker types of untruthfulness in advertising was launched. Printers’ ink, Curtis Publishing Company led the first yo eliminate. Gross exaggeration, false testimonials, misleading names & brands expands a lot in this time. In 1914 there was another move for fewer untruths.

c. Advertising organization: The advertising federation of America, American association of advertising agencies, association of national advertising started in this period.

5. Period of Scientific Development: From 1925 – 1945.

Scientific method was applied systemized, Facts were observed, reordered & classified. In this stage the blind faith declined, market research & consumer analysis was started besides only selling & the results were started to test. So the industry gains more creative man & artist.

6. Period of Business & Social Integration: From 1945 – Present.

After 2nd world war advertising was recognized as an essential part of total business of social economy because of more consumer goods, full employment, high level consumption, social integration, promote ideas.

Q. How many types of advertising? Discuss the classification of advertisement.

Classification of Advertising: There are 6 types of advertising on the basis of:

Who, What, to whom, Where & Response.

1.   National Advertising:
Who          : Producers of consumer goods & services.
What         : Branded products & services closely identified with firm’s name. (Aromatic soap)
To whom  : Ultimate consumer.
Where       : Nation wide.
Response  : Buy my brand.

2.   Retail Advertising:
Who          : Retail stores. Such as, department stores, grocery shops, drug stores, clothing stores service institution like banks, dry cleaners, and laundries
What         : The items & services available at the particular retail establishment.
To whom  : Ultimate consumer.
Where       : Within a local market area.
Response  : Buy at my store.

3.   Industrial Advertising:
Who          : Producers of industrial goods such as, steal, machinery, lubricant, office equipment.
What         : Items & services that are used in a manufacturing or that facilitate operation of business.
To whom  : Industrial buyers.
Where       : Nation wide or regionally depending on the degree of geographic concentration of the industry involved. Practically every industrial buyer can be reached through one or more specialized business publications.
Response  : Use my products in your business operation.

4.   Trade Advertising:
Who          : Producers & distributors of branded & non branded consumer goods.
What         : Products ready for consumption that are bought by merchant for resale.
To whom  : Retailer & wholesaler of consumer goods.
Where       : Nation wide.
Response  : Stock & promote the sell of my product.

5.   Professional Advertising:
Who          : Producers & distributors, who depend on professional men to recommend, prescribe or specify their products to buyers. (Doctor, lawyer etc.).
What         : Items, the purchase of which is strongly influenced by a professional person. Such as, baby food, text book, ethical drug, building materials.
To whom  : Doctors, dentists, architectures, engineers, educators etc.
Where       : Nation wide.
Response  : Recommend, prescribe or specify my product.

6.   Non product or Idea Advertising:
Who          : Political parties, church, social groups etc.
What        : Institutions, ideologies & social betterment. Such as, religion, political candidate, red cross, education etc.
To whom  : Lay citizens’ voters’ community leaders.
Where       : Nationally & locally.
Response  : Accept my idea, vote for my candidate, contribute to our cause.