"Advertising is salesmanship in print, in simple definition" — John E Kennedy (circa 1907)
In a laymans terms advertising means to make known, to publish, to inform, to attempt or persuade.
Advertisement is sales talk through printed or recorded media. The emphasis is on mass persuasion. It is a persuasive force, that makes use of mass communication media and is aimed at creating and changing customers attitude or patterns of behavior towards a product or service in a direction favorable to the advertiser.
The function of advertising
To stimulate either primary demand or selective demand.
To promote the brand or the firm selling that brand.
To cause indirect action or direct action.
To benefit the public at large.
Primary and Selective Demand
Usually primary demand stimulation is made by the sponsors who are first to introduce a new product. Even organized groups attempt to generate primary demand. So long as the product is new, primary demand stimulation is appropriate. The consumers are informed of the existence of the new item and attempt is made to convince them of its benefits. This type of advertising attempts establishes differential advantage.
Institution or Brand Promotion
Institutional advertising attempts to create an image of the organization as whole. It notifies the public that the organization has responsibility that the management is conscious of its role. Nationalized banks advertisement comes under this category. The aim is to earn goodwill and enjoy the confidence of the public. This would help introducing a new product or service to the consumers.
Direct or Indirect Action Advertising
Direct action advertisements try to bring about a ready response. Such messages urgently request consumers to buy or respond now. Others contain coupons and collections with appeal for redemption soon.
Indirect action advertising aims at creating favorable attitudes towards the sponsors or the products of the sponsor. Through a process of exposure, attention, social networks, point of purchase.
Advertising budget
The advertising budget is a systematic plan of how much, when, where and for what purposes advertising funds will be spent. A satisfactory advertising budget should be large enough to accomplish the job expected of advertising. It should be dependable enough to permit continuity of advertising and also flexible enough to permit adjustments in advertisements volume to meet the changing problems and situations.
Non profit advertising
Sometimes may be intended to bring benefits to public at large. Philanthropic organizations and like minded people, are behind this type of advertising which promotes some gains to the society.
Over all the advertising budget involves talking of a two fold problem determining the size of appropriation and control of expenditures to ensure that funds are spent in accordance with the budget plan.
Some reasons for advertising
• Increase the number of units purchased by the consumers.
• Maintain and improve confidence of the present customers.
• Create feed-back mechanisms among the consumers.
• Project an image about the advertiser in the process of characterizing the product.
• Introduce new products to the market place.
• Counteract the effects of competition.
• Adjust the seasonal effects of sales.
• Open new vistas in the arena of consumer welfare.
