Advertising in modern marketing

1. Most people do not understand the difference among promotional tool such as advertising, personal selling, publicity, and word-of-mouth. Advertising is limited to paid, non-personal communication through various media by organizations and 'individuals who are in some way identified in the advertising message. Word of mouth is not a form of advertising because it does not go through a medium, it is not paid for. Personal selling is face to-face communication and does not go through a medium; thus it is not advertising. Note also that advertising may be used by anyone, including non-profit organizations. Furthermore, advertising is different from propaganda in that the promoter is identified.

2. People have the false impression that advertising is not very informative. But the number one medium, newspapers, is full of information about products, prices, features, and more Does it surprise you to find you that businesses spend more on direct mail than on radio and, magazines? Direct mail (the use of mailing lists to reach an organization’s most likely customers) is also very informative and a tremendous shopping aid for consumers. Each day consumers receive mini-catalogues in their newspapers or in the mail that tell them what is on sale, where, at what price, for how long, and more. Thus advertising is informative. The public benefits greatly from advertising expenditures. First, we learn about new products, new features, sale items, and more. But we also benefit from free radio and TV and subsidized newspapers and magazines. In short, advertising not only informs us about products but pays for us to watch TV and get the news from magazines and newspapers.

THE FUNCTION OF ADVERTISING

3. Advertising affects the consumer in the following ways: 1) Information. A distinction is often made between informative and persuasive advertising. Informative advertising announces a product and gives potential buyers details they need. Much advertising in the technical press is informative since it is directed at an expert, trained readership. If consumers are to exercise freedom of choice, Informative advertising is necessary so that they can know that goods are available and where they can be bought.

Persuasion. Human memory is short and repetition is necessary to keep customers aware of a product. The advertising of many consumer goods is almost entirely persuasive in character.

Creating mass markets. The use of mass-production methods often results in lower unit costs. Largescale production requires large markets, however, the forceful advertising and sales promotion can provide lower costs and eventually lower prices.

Quality. The fact that a good has been widely advertised may compel a manufacturer to maintain high standards of quality.

Advertising may be used as a weapon of competition, particularly in a situation where there are only a few sellers, each of whom is trying to increase his share of the market. It may also serve to reduce competition and to reach a degree of monopoly power. Advertisements that try to persuade consumers that there is no substitute for their product are attempting to create a sub-market in which they will be free from competitive pressures.

4. Outdoor advertising – a breath of fresh air. The world of outdoor advertising billboards, transport and “street furniture” (thigs like bus shelters and public toilets) – is worth about $18 billion a year, just 6% of all the world’s spending on advertising. But it is one of the fastest-growing segments, having doubled its market share in recent years.