Advertising and Sales
Promotion Solved Question Paper May’ 2018
2018 (May)
COMMERCE (Specialty)
Course: 603 (Advertising
and Sales Promotion)
Time: 3 hours
The figures in the margin
indicate full marks for the questions
(New Course)
Full Marks: 80
Pass Marks: 24
1. Answer the following as directed: 1x6=6
a) What is an ambient
medium? (Choose the correct option)
1. A new medium
2. Real-estate magazine
3. Weather-related news
4. None of the above
Ans: 4. None of the above, it means advertising at a place where
people spend more time
b) The extent to which an
organization fulfils a customer’s needs, desires and expectations is (Choose
the correct option)
1. Customer satisfaction
2. Good manufacturing practices
3. Job satisfaction
4. All of the above
Ans: 1. Customer satisfaction
C) Promotion mix includes
sales promotion, personal selling, advertising and advertising. (Fill in the blank)
d) Newspaper advertising
is a waste where masses are illiterate.
(Write True or False)
Ans: True
e) At outdoor advertising,
which has longer life span? (Choose the correct option)
1. Banners
2. Painted posters
3. Balloons
Ans: 3. Balloons
f) Component parts have
two markets, one is original equipment manufacturer and the other is (Choose
the correct option)
1. Retail market
2. Consumer market
3. None of the above
Ans: 2. Consumer market
2. (a) Discuss the major
internal and external factors involve in advertising planning and
decision-making. 11
Ans: Factors affecting
Advertisement Planning and Decision Making
Advertising planning and decision making
depends on internal and external factors. Internal factors are situation
analysis, the consumer and market analysis, competition research and the
advertising plan. Advertising planning and decision making depends on internal
and external factors. Internal factors are situation analysis, the marketing
program, and the advertising plan. The three legs of advertising planning
concern are the
1.
Objective setting and target market
identification,
2.
Message strategy and tactics, and
3.
Media strategy and tactics.
The advertising plan should be developed in
response to a situation analysis, based on research. Once developed, the
advertising plan has to be implemented as an advertising campaign, in the
context of social and legal constraints and with the involvement of various
facilitating agencies.
Internal
Factors:
1. Situation Analysis: It involves an analysis
of all important factors operating in a particular situation. This means that
new research studies will be undertaken on company history and experience.
AT&T, for example, developed a new
strategy for its long-distance telephone services – based on five year of
research. The research encompassed market segmentation studies, concept
testing, and a field experiment. The field experiment increased on testing a
new advertising campaign called ‘Cost of Visit’. An existing ‘Reach Out’
campaign although successful, did not appear to get through to a large group of
people who had reasons to call but were limiting their calls because of cost.
Research based on annual surveys of 3,000 residential telephone users showed
that most did not know the cost of a long-distance call or that it was possible
to make less expensive calls in off-peak periods.
Five copy alternatives were subsequently
developed and tested, from which ‘Cost of Visit’ was chosen. This campaign was
credited with persuading customers to call during times that were both cheaper
for them and more profitable for AT&T and, overall, was more effective that
the ‘Reach Out’ campaign. One estimate was that by switching 530 million in
advertising from ‘Reach Out’ to ‘Cost of Visit’, an incremental gain in revenue
of $22 million would result in the first year and would top $100 million over
five years. This example highlights that
a complete situation analysis will cover all marketing components and involve
finding answers to many questions about the nature and extent of demand,
competition, environmental factors, product, costs, distribution, and the
skills and financial resources of the from.
2. Consumer and Market Analysis. Situation analysis begins by looking at the
aggregate market for the product, service, or cause being advertised, the size
of the market, its growth rate, seasonality, geographical distribution. Whereas
Consumer and Market analysis is concerned with the following factors:
a) Nature of demand:
Ø How
do buyers (consumer and industrial) currently go about buying existing products
or services?
Ø Can
the market be meaningfully segmented or broken into several homogeneous groups
with in respect to “what they want” and “how they buy”?
b) Extent of demand:
Ø What
is the size of the market (units and dollars) now, and what will the future
hold?
Ø What
are the current market shares, and what are the selective demand trends?
Ø Is
it best to analyze the market on an aggregate or on a segmented basis?
c) Name of competition:
Ø What
is the present and future structure of competition?
Ø What
are the current marketing programs of established competitors?
Ø Why
are they successful of unsuccessful?
Ø Is
there is opportunity for another competitor? Why?
Ø What
are the anticipated retaliatory moves of competitors?
Ø Can
they neutralize different marketing programs we might develop?
d) Environmental climate
Ø What
are the relevant social, political, economic, and technological trends?
Ø How
do you evaluate these trends? Do they represent opportunities or problem?
e) Stage of product life cycle
Ø In
what stage of the life cycle is the product category?
Ø What
market characteristics support your stage-of –life-cycle evaluation?
f) Cost structure of the industry
Ø
What is the amount and composition of the
marginal or additional cost of supplying increased output?
g) Skills of the firm
Ø Do
we have the skills and experience to perform the functions necessary to be in
the business?
Ø How
do our skills compare with those of competitors?
h) Financial resources of the firm
Ø Do
we have the funds to support an effective marketing program?
Ø Where
are the funds coming from, and when will they be available?
3. Competitive Analysis: Advertising
planning and decision making are affected by competition and the competitive
situation facing the advertiser. Competition is such a pervasive factor that it
will occur as a consideration in all phases of the advertising planning and
decision making process. It should include an analysis of what current share
the brand now has, what shares its competitors have, what share of a market is
possible, from which competitors the increased share of a market is possible?
The planner also has to be aware of the relative strengths and weaknesses of
the different competing companies and their objectives in the product
category. It is important to look at
competition as a precursor to the planning process.
External
Factors:
The external factors in the planning
framework are environmental, social and legal considerations. To a considerable
extent, these exist as constraints on the development of an advertising plan
and decision making. In developing specific advertisement, there are certain
legal constraints that must be considered. Deceptive advertising is forbidden
by law. What is deceptive is often difficult, because different people can have
different perceptions of the same advertisements. Thus, an advertiser who
attempts to provide specific, relevant information must be well aware of what
constitutes deception in a legal and ethical sense and of other aspects of
advertising regulation.
Even more difficult consideration for
people involved in the advertising effort is broad social and economic issues
as stated below:
a) Does advertising raise prices or
inhibit competition?
b) Is the use of fear factor is
appropriate?
c) Women and minority groups are
exploited in advertising by casting them in highly stereotyped roles.
d) Is it more irritating than
entertaining?
e) Is an intrusion into an already
excessively polluted environment?
f) Is Advertising directed at children?
Or
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(b) Discuss the different
ethical aspects of advertisement and how untrustworthy advertisement can be
controlled. 11
Ans: Ethics and truth in Advertising
Ethics means “Good Conduct” or
“Conduct which is right in view of the society and the time period”. By common
consent, various modes of behaviour and conduct are viewed as “good” or “bad”.
In other word, we can say that Ethics
are moral principles and values that govern the actions and decisions of an
individual group. Ethics is a choice between good and bad, between right and
wrong. It is governed by a set of principles of morality at a given time and at
a given place and in a given society. Ethics is related to group behaviour in
ultimate analysis, thus setting norms for an individual to follow in consistence
with the group norms.
A particular action may be within the
law and still not be ethical; Target Marketing is a good example for this.
There is no law to restrict tobacco companies from promoting their brands to
Africans & American, though it is in India but for Doordarshan only. Similarly,
the alcoholic – beverage companies promote their brands & target not only
college students but underage drinkers as well. These advertisements have
increased alcohol related problems. Advertisements exposing pornography is
another serious issue in advertising industry today. Advertisements promoting
permissiveness & objectifying women are heavily criticized in the society.
Therefore, even advertising has
ethical value. The mixing of Art and facts in advertising communication are
subservient to ethical principles. In today’s competitive and buyer’s market,
an advertisement has to be truthful and ethical. If an advertisement is
misleading, the credibility of the organization is lost. To view the truth in
advertisement, it has to be seen from to consumer’s point of view rather than
from legal point. The advertising industry has been frequently criticized for
putting out misleading or exaggerated claims in respect of product, goods and
services advertised. It is also perceived as guilty of glorifying certain
habits or tendencies regarded as undesirable and encouraging consume rest
culture. However, it is very difficult to demarcate a clear line of difference
between what is true and what is untrue. But the advertisement as such is
judged by its impact, and by its acceptance by the consumers. The product must
fulfill its advertised claims.
Social criticism and responsibility of advertising
Advertising contributes to have both
negative & positive influence on society. It is criticized for encouraging
materialism, manipulating consumer to buy things they do not need;
stereotyping, fraudulent & so on. Let’s discuss the various criticisms
concerning the influence of advertising on society:
1. Puffery/Fraudulation: Very often
we hear that advertisement exaggerates about the product qualities. Now a day
‘puffery’ i.e. “metaphor of idea” forms to be main element in advertising. On
the one hand critics accuse it, while on the other defenders i.e. advertisers
and advertising professionals opined it as a helping agent to differentiate
their brands from the competitors. Puffery is considered to be an ‘opinion’ and
not a ‘factual information’. Advertisers claim that the consumers are
intelligent enough to distinguish between truth and exaggeration. Moreover,
they are not blindly going to believe everything as such presented in an
advertisement. E.g. In the advertisement of ‘Force 10’ shoes the copy is “I am
walking on air”. This metaphor that tells the lightness of the shoes, is unbelievable
that one can “walk an air”. But the studies reveal that often many people start
believing them & buy those products that have exaggerated claims in their
advertisements.
2. Untruthful or Deceptive: A number
of studies have shown a general mistrust of advertising among consumers.
Deceptiveness is defined as not only as false and misleading statements but
also as false impressions conveyed, whether intentional or not. False and
subjective claims about the products, is sometimes believed but are untruthful
and misleading. The problems of untruthful or fraudulent advertising exists
more at the local level and in specific areas such as mail order, telemarketing
and other forms of direct marketing. Advertisement should be informative and
should be use puffery or embellished messages. The following acts are
considered unfair or deceptive practices: a) False promises b) Incomplete
Descriptive c) Misleading Comparisons d) Bait and Switch Offers e) Visual
Distortions f) False Testimonials g) False Comparisons h) Partial Disclosures
i) Small – Print Qualifications j) Laboratory Application
3. Offensive or in Bad Taste: Another
one of the major complaints against advertisements is offensive, tasteless,
irritating, boring, obnoxious & so on. Taste is subjective i.e. what is
good taste to one may be bad for someone else. Tastes changes with time even as
what is offensive today may not be tomorrow. Consumers can be offended by
advertising in a number of ways. The type of appeal or the manner of
presentation often irritates consumer. E.g. Fear Appeal in Deodorants,
Mouthwash & Anti-dandruff shampoo ads are criticized to create anxiety
& fear to be rejected in the society.
4. Creates Materialistic Demand:
Advertising provides a variety of alternatives to choose from people have
needs. Advertising creates derives and fantasies for the consumers. Some people
crave for material possessions and others for cultural and spiritual
enhancement. Here Advertisers at the both end of the spectrum. Many critics
claim that the advertising encourages materialism. Few critics attribute to
advertising that
a) Seeks to create needs rather than
merely showing how a product or service fulfils them;
b) Surrounds consumers with the
images of good life and convinces how the materialistic possessions leads to
happiness in life.
c) Portrays these possessions as
symbol of status, success, social acceptance, popularity and so on. Formerly we
did not have house with garages, but now everyone wants a garage or two.
Advertising differentiated between simple & formal sandals. It informs us
about twin-pack razors, Leo & Barbie range of toys. Advertising keeps pace
with dynamic market. It is a motivating force to exert harder to create and
satisfy our new & novel needs.
Control of Untrustworthy
Advertisement
Advertising has a responsibility within our economic system to
provide information on new and existing products and services. Most of what is
purchased is advertised. Thus, the economic and social well-being of the buyer
and other competitors is affected if the advertising is full of false claims
and misleading statements. The results can be misallocation of resources,
disappointment of the customers, injury to the health of the buyers and
unhealthy and damaged competition. In view of above, two schools of thoughts
present their idea of regulation of advertising. One school advocate government
intervention and legislation in regulating the advertisement professions. The
second school feel that advertising profession should self-regulate itself by
following ethical values.
Regulatory
Authorities in India:
There have been increasing efforts to protect the public interest
by regulating the content and the influence of advertising. Some examples
include restrictions for advertising alcohol, tobacco or gambling imposed in
many countries, as well as the bans around advertising to children, which exist
in parts of Europe. Advertising regulation focuses heavily on the veracity of
the claims and as such, there are often tighter restrictions placed around
advertisements for food and healthcare products. A number of institutions are
involved in regulating advertising:
1) Self-regulation by the industry
2) Regulation by the government
1) Self-regulation by the industry: In 1985,
the Advertising Standards Council of India (ASCI) was established as an
independent body under Advertising Agencies Association of India (AAAI). ASCI
created a code of advertising practices known as ASCI code. All advertising
agencies and all media channels are expected to follow this code.
ASCI Codes:
a) Ensure Truthfulness and honesty
b) Advertisements should not be offensive
c) Safeguards against promotion of hazardous
products/services.
d) Observe fairness in competition.
Complaints can be made by any person or group
or department against the advertiser for false, misleading, unfair or offensive
ads. Independent consumer’s complaints council evaluates the complaints. Public
pressure groups and consumer protection group also exist. However, consumer
boycott is the best form of self-regulation.
2) Regulation by the government: Various laws
are framed to regulate the advertisements. Competition Commission of India
(CCI) looks after the issues of unfair competition and trade practices. Some
laws are listed below:
a) IPC’s provisions governs obscenity and
vulgar contents.
b) The Young Persons (Harmful Publications)
Act 1956
c) The Emblems and Names (Prevention of
Improper Use) Act, 1950
d) The Incident representation of Woman Act,
1986.
Several other laws cover aspects like magic
remedies, human organ transplants, cigarettes and tobacco products, cable TV
network and more govern advertisement representations. Various laws were
enacted to govern changes – Like radio, Televisions, Cable Network, etc.
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3. (a) What factors would
you consider while selecting an appropriate medium for advertising? Explain in
detail. 11
Ans: Media Planning &
Selection and Factors Guiding Media Selection
Selection of a suitable medium for advertising is really a complex
problem to the advertiser. There are a number of kinds and classes of media in
the modern advertising. Hence, the advertising media selection means not only
the choice of the right classes of media out also the individual medium within
the class or classes. Besides there is no single medium that is best suited for
all advertisers. In reality, a medium which is best suited for one may be
almost useless for another. The medium once employed for advertising a
particular product itself may be found unsuited subsequently. Therefore, the
right choice of a medium calls for a careful analysis. If the medium is
unsuited the whole amount of money spent on the advertising campaign shall turn
to be a waste. The advertiser, therefore, while selecting the media, should
consider the following factors:
1) Class
of the audience: Firstly, the advertiser must note the class
of the audience to be influenced by the medium. The audience can be classified
into different groups by their social status, age, income, educational
standard, religion, cultural interests. They may also be divided into men and
women.
2) Extent
of coverage: Secondly, the advertiser must consider the
number of audience to be covered by the medium. Every media has a general as
well as an effective circulation. The general circulation is made up of the
total number of people who read or subscribe to the media. The effective
circulation is the number prospective customers who read it and the number of
those who influences sales, though they may not buy for themselves. Effective
circulation must be considered while estimating the number of people to be
covered. The extent to which the medium reaches the same audience as that
covered by some other media i.e., the percentage of over-lapping must also be
taken into account.
3) Nature
of the product: Nature of the product itself is a principal
factor governing the selection of the medium. Products can be classified into
various kinds – consumer ‘s products and manufacturer ‘s products etc.
4) Nature
of the competition: The nature of the competition has
greater influence of the selection of the media. If the competition is stiff
utmost care is needed in the selection of medium and a larger advertising
budget is also required. In many cases, where the advertising copy is similar
or the choice of the media solely determines the effectiveness of the campaign
as compared with that of the other competitors.
5)
Reputation of the medium: Newspapers and magazines can offer a
beautiful illustration for the reputation of the media. There are a few
newspapers and magazines which have international reputation with a high
readership. Advertisements in such magazines and newspapers are generally
recognized and believed as true. Such advertisements also add prestige to the
product.
6) Cost of
the media: Cost of the medium in most cases, is an
important factor in the selection of the medium. Advertisements in certain
media are expensive, for instance, TV and Radio advertisements. Magazines and
newspaper advertisements are generally considered as less expensive. Yet,
certain magazines and newspapers, having larger circulation and high reputation
charge higher rates. The rates also differ depending upon the space occupied
and the preferential positions. The first page of a newspaper is rarely missed
by the reader. Hence they have more attention value, than the advertisements
presented anywhere inside the newspaper.
7) Time
and location of buying decisions: The location of the audience and the
time by which it should reach them must also be looked into. This consideration
also enables the advertiser to keep his retail outlets in the proximity of the
customers.
8) Trade
Acceptance: The degree of acceptance that a medium can
generate among the advertiser’s intermediaries such as wholesale and retailers
would generate more favourable effect. Accordingly, the message and the media
should be such that these intermediaries are enthusiastic about it. For
example, an advertisement placed in a trade journal which is popular among
intermediaries will have a positive effect on them which would in turn be
carried to consumers.
Or
(b) Mention the various advertising
media and discuss their relative advantages and disadvantages. 11
Ans: The
advertising medium refers to the means through which the advertiser can convey
his message to audience. Proper selection of the media enables the advertiser
to achieve the desired results. Hence, advertising media selection is vital for
the success of an advertising campaign. An advertising medium is any object or
device that carries the advertising message. It should be capable of
accomplishing following three objectives:
a)
To reach the largest number of people possible.
b)
To gain their attention.
c)
To be less expensive.
The character of the medium is largely
determined on the objective and factual basis such as whether the coverage of
the medium should be national, regional or only local
Media Commonly used in
Advertising: The major media commonly used for advertising
requirement are divided into two categories which are listed below:
1) Indoor Advertising Media: It can be further classified as:
a) Print media like Newspapers, Magazines, Trade Journals and
Direct Mail.
b) Audit/Visual/Audio-Visual/Electronic Media like Radio, T.V.,
Cinema, Cassettes-audio and video, Internet.
2) Outdoor advertising Media like Hoardings, Posters, Neon Signs
and other illuminations, Transit advertising (Railways and other transport),
fairs and exhibitions.
Advantages and
disadvantages of Different Media Available for Advertising
1. Newspapers: The
newspapers are one of the most popular print media available to the
advertisers.
Advantages
of Newspapers
a)
Newspapers offers mass coverage or
reach. Newspapers like Hindustan Times, Times of India enjoy circulation in
lacs.
b)
Because of large circulation average
cost per paper becomes very low.
c)
Messages given in newspaper tend to be
more believable by customers.
d)
Newspaper allows flexibility in
message and design etc.
Drawbacks
of Newspaper
a)
The advertisement of newspapers has
very short life of one day only.
b)
Through newspaper firms can reach
literate customers only.
c)
The production and print quality of newspaper
is poor.
2.
Magazines and journals
Advantages
of Magazine Advertisements
a)
The life of advertisement is longer.
b)
Audience spend more time in reading
advertisement in magazines.
c)
Magazines add creditability to the
message because of their reputation.
Drawbacks
of Magazine Advertisement
a)
Magazines have less frequency.
b)
Magazines offer less flexibility in
message.
c)
Dramatization like visual media is not
possible in magazines.
3.
Television
The television is the latest and most popular medium of mass communication.
Advantages
of Television Advertisement
a)
This medium is audio visual which
combines sight, sound and motion.
b)
Great dramatization is possible.
c)
It has high reach.
d)
Television advertisement has catching
power and better impact on customers.
Drawbacks
of Television Advertisement
a)
It involves high cost.
b)
The advertisements are shown for a
short span only.
4. Radio
This medium of advertising has been very popular till the middle
of last century because of its mass reach.
Advantages
of Radio Medium
a)
Messages could reach the remotest
area.
b)
Cost is low.
c)
Suitable for illiterate customers
also.
Drawbacks
of Radio
a)
It has only audio effect so less
attention is grabbed.
b)
Noise and disturbance bring
interruption in message.
c)
It has short message life and leaves
less impact.
5. Outdoor
This medium includes banners, hoardings, bill boards in open
spaces, the hoardings etc. are usually seen around traffic signals, highways
etc.
Advantages
of Outdoor Advertisement
a)
Some of the hoardings are very
attractive when designed with electric display.
b)
They are eye catchy and leave impact
over the minds of customers.
c)
Offer benefit of repeated exposures.
d)
High visibility and lower cost.
Drawbacks
of Outdoor Media
a)
Limited audience.
b)
Short attention span.
c)
Limited creativity.
6. Advantages and Disadvantages of
Internet Advertising:
Advantages of Internet Advertising
1. Internet advertising allows for specific
prospect targeting: Mass marketing is
easier with internet advertising, but so is sending a message to a specific
population demographic as well. Brands are able to identify the traits of their
key customers and clone them into their advertising campaign.
2. There are numerous price points to consider: Everyone from the sole proprietor to the large multinational
organization has a chance to expand their customer base thanks to internet
advertising. Niche sites offer advantageous solutions to small businesses that
are industry-related, while mass marketing can attract all demographics across
several different platforms simultaneously.
3. Internet advertising is more responsive to
changing conditions: Printed media has to
be changed every time the marketing environment evolves or adjusts. These costs
begin to add up quickly with traditional media and there is a time gap between
each evolutionary period. With internet advertising, responsive changes can
happen almost instantaneously.
Disadvantages of Internet Advertising
1. There is a healthy amount of competition: There
are many prospects that can be found on the internet, but that isn’t a secret
that only a select few know about. Everyone realizes that there is a lot of
potential with internet advertising and they are thinking about getting
involved just like you may be. There are plenty of businesses already running
an internet advertising campaign as well. The market is saturated to the point
that any industry-related advertising will likely be displayed next to a direct
competitor. If your product’s value proposition doesn’t stand out from the rest
of the pack, then people won’t inspect your offer.
2. It is incredibly easy for internet users to block advertising: All
current Internet browsers have options available which block all advertising.
It’s not just the pop-up ads we’re talking about here. Banner advertising, link
advertising, affiliate efforts – they can all be blocked. The browser
extensions are so good that even when advertising agencies attempt a
work-around, the browser is able to adapt to it. This means there will always
be a core group of people who will never see an internet advertising campaign,
no matter what it is you may choose to do.
3. It creates a moment of distraction: The
problem with internet advertising is that it distracts people from what their
ultimate purpose for being online happened to be. Most people don’t log onto a
website that offers free dinner recipes and expect to see an advertisement that
they’ll want to click on, right? They’re looking for a new way to make one of
their favorite dishes. That moment of distraction may seem like a good thing,
but it really is not. When people shift their perspective to a new task, there
is an attention deficit which occurs. It may take someone up to 15 minutes to
recover their faculties. This means even clicks on an internet ad may not be as
effective as they could be.
4. (a) What are the
various elements of a copy? Give guidelines for the presentation of headlines
in a copy. Explain the steps in copy development process. 4+8=12
Ans: The following are the main
components of an advertisement copy:
1. Background: The background for the advertisements should be
somewhat catchy and colourful. The arrangement of background differs from
medium to medium and advertisement to advertisement. In short, background
should be suitable for the contents of the advertisement.
2. Border: It is defined as the frame of the advertisement. Border
is employed to impart the reading atmosphere. The border may be light or heavy,
obvious, plain or fanciful. The border may also contain a logo.
3. Caption: It refers to the subtitle. But in most of the
advertisement it is converted into heading or sub-heading.
4. Coupon: Coupon is that part of the advertisement which is
intended for the convenience of the prospective customer in communicating with
the advertiser. The coupon must contain the name and full postal address of the
firm followed by the offer. The offer should be brief and clear. There should
be space for name and address of the prospective customer. The usual shape of
the coupon is triangular or rectangular.
5. Decoration:
Advertisement decoration is the ornament of the advertisement. This is done to
emphasis the advertisement message.
6. Heading: The heading or headline is defined as the title of the
advertisement. The words in the heading should be short.
7. Illustration: Illustrations are the part of layout that
pictures the basic theme of the advertisement. It has the power to capture the
attention of the reader. The advertisements become richer by the use of
illustrations.
8. Mascot: It is known as the trade character or trade figure. It
is an illustration of either a real or an imaginary figure or personality given
in the advertisement.
9. Name Plate (logo): The name plate or name block is the
signature of the advertiser. It represents the personality of the company and
its product.
10. Price: It is another part of layout. The price of the product
should be featured clearly. The price is usually taken in the concluding lines
of the copy.
11. Product: It refers to the representation of the product
offered for sale. A very popular practice is to show the product in use with
illustrations.
12. Slogan: Slogan is a sales argument. The arrangement of slogan
in the layout is determined by the importance of its relation to the
advertising message.
13. Space: Space refers to the entire space left in the space
hired by the advertiser. This depends on the design of the copy.
14. Subheading: It is a secondary heading. It is given to support
the heading or to pick out the various selling points given in the text.
15. Text: Text or body of the advertisement refers to the general
reading matter. It is the subject matter of the copy. It should be neither too
wide nor too narrow.
16. Trade mark: It is a word or design by which a product is
defined. If the trade, marks are registered it can be included in the layout.
HEADLINE: The
headline is considered to be most crucial element of the entire message which
carries almost 80% of the weight of the message. The headline can be
accompanied by a visual or a photograph to make it more effective. The style
and content of headlines will vary with the nature of the product and purpose
of use of the product and it may be presented in any of the following ways –
a)
Headlines promising benefit to the
customer like “Eno on, Pain gone” or “Action in10 seconds-Eno”, “Retirement
solutions – HDFC pension plans” etc.
b)
Headlines to arouse curiosity like
“the secret of youth in Herbals” will definitely arouse the reader’s curiosity
to read further.
c)
Headlines providing newsworthy
announcements like “SBI going global”, “Market crashes” etc.
d)
Headlines to draw attention of
specific target. For example, “A gift for someone you love”, ‘Attention:
Termite Problem” etc.
e)
Headlines may begin with a question or
may give a positive command to the readers to take a particular step like
“Treat yourself to luxury” etc.
Sub-Headlines:
These are meant to amplify the impact of the headline. A marketer uses
sub-headlines for three purposes:
a)
To gain attention and interest;
b)
To organize to copy into logically
related segments thus aiding comprehension; and
c)
To direct the interest of the consumer
to important points.
Where a headline is complete and is totally informative in itself,
then a subheading may not be necessary. But if the headline in not
self-explanatory or is not directly related to the message, sub-headlines are
desirable. For example, “Do not buy a car” with a sub headline such as “until
you have checked mileage”. Such sub-heading compliment the headlines.
Or
(b) Explain precisely the
advantages of advertising to different group of society. 12
Ans: Importance/Benefits
of Advertising to various section of the society
Advertising is an indispensable part of the marketing strategy of
any product or service. A proper advertisement has a great impact on the sales
of the product. Advertising is the most important tool in the marketing of
products and services. Companies all over the world universally accepted this
fact. Some of the important benefits of advertisement to various section of the
society are listed below:
a)
Communication with Customers: The main
function of advertising is to communicate with consumer’s area to increase the
sale of products and services and economy expands, the manufacturer should get
profits.
b)
Contribution to economic growth:
Advertising contributes to economic growth to expand the market and market
segments for new products. Company invests in research and development to
develop a new product and how to increase their purchasing sales.
c)
Persuasion: Advertising is to
influence the opinion of the customers to buy a product/service. The planned
persuasion is to agree the customers to purchase our products in a satisfaction
manner.
d)
Catalyst for Change: Creativity in
advertising leads to the discovery of new relationships can change the
perception. The originality of message communicated and eventual effect on
consumer’s standard of living. The ability of changes can from originality
innovation and imagination of advertising.
e)
Stimulates demand: Inform the
consumers about the availability of product in the market. The general
agreement of advertising has some effect on aggregate consumption.
f)
Develops Brand Preference: Advertising
develops brand preference of the product for brand trail. The products
delivered the quality, service and value these should satisfy the customers.
The satisfied customers develop the brand preference with strong brand preference.
g)
Reduces Cost: Advertising is the
instrumental in production and selling costs these by increasing unit sales
decreases unit costs. By using advertising, we should reduce the cost of the
product for remove stain on the sales persons.
h)
Lower Prices: In competitive economy
the unit cost of product goes down it will effect on both internal and external
factors. Then the companies should decrease the prices and it is advantage to
the customers.
i)
Build Brand Image: Advertising plays
an important role in building the brand image of the products. Consumers
develop mental images of brand that may appeal to the different market
segments. If helps in building brand loyalty.
j)
Competitive weapon: Advertising is a competitive weapon it builds
a brand image and creates a value to the product for promotion. It helps to
differentiate a company’s offer having the unique value having a definite
identity.
k)
Innovation: Advertising encourages the
innovation of the new product development. Advertising generate the product
demand to attract the large number of customers and encourage the competition
of the product in marketing.
l)
Growth of media: Advertising plays a
crucial role to the growth of media for raising the revenues. This may help in
introducing more publications and it will lead to the expansion of media.
m)
Elimination of middlemen: By regular
advertisement, the manufacturer can sell the goods directly to the consumers
without depending on middlemen this eliminates the middlemen’s charges which
leads to higher profit to the manufacturer and lower prices to consumers.
n)
Feedback from customers: Advertisement
can also lead to direct feedback from consumers. It has been researched that a
lot of opinions and viewpoints are received by the advertisers on their
products and services, which help them in improving their products and services
further.
o)
Fixed prices: As the prices are
already advertised, the consumers cannot be over charged.
p)
Improving quality of goods: It helps
in improvement of the quality of the goods. The consumers are attracted by the
quality of the products that are advertised. If the consumer is convinced that
the quality is the same that is advertised, they continue buying.
5. Write short notes on
any four of the following:
4x4=16
a) Indoor advertising
media
Ans: Indoor Media Advertising
1. Print
media advertising: Print publications such as magazines, books,
newspapers and Special Issue publications (such as annuals) offer a variety of
advertising opportunities.
2.
Television advertising: Television advertising offers the
benefit of reaching large numbers in a single exposure. Yet because it is a
mass medium capable of being seen by nearly anyone, television lacks the
ability to deliver an advertisement to highly targeted customers compared to
other media outlets.
3. Radio
advertising: Promotion through radio has been a viable
advertising option for over 80 years. Radio advertising is mostly local to the
broadcast range of a radio station. In many countries there are radio networks
that use many geographically distinct stations to broadcast simultaneously.
4.
Film/Cinema Advertising: Cinema is another important media of
advertising. It is characterized by sound, motion, colour, vision, and
timeliness. It is like a TV run on the enlarged screen for large audience. This
audit visual medium has a wide range starting from an ordinary slide
presentation to the ad films screening. This kind of publicity is popular among
people of all ages, incomes, professions, cultural bend of mind and income
groups because of the style of presentation.
5. Internet
advertising: The fastest growing media outlet for
advertising is the Internet. Compared to spending in other media, the rate of
spending for Internet advertising is experiencing tremendous growth. Internet advertising
‘s influence continues to expand and each year more major marketers shift a
larger portion of their promotional budget to this medium.
6. Mobile
Device Advertising: Handheld devices, such as cell
phones, personal digital assistants (PDAs) and other wireless devices, make up
the growing mobile device market. Such
devices allow customers to stay informed, gather information and communicate
with others without being tied to a physical location.
7.
Sponsorships: A subtle method of advertising is an approach
in which marketers pay, or offer resources and services, for the purpose of
being seen as a supporter of an organization’s event, program or product
offering (e.g., section of a website).
Sponsorships are intended not to be viewed a blatant advertisement and
in this way may be appealing for marketers looking to establish credibility
with a particular target market.
8. Direct
Mail: This method of advertising uses postal and
other delivery services to ship advertising materials, including postcards,
letters, brochures, catalogs and flyers, to a physical address of targeted
customers. Direct mail is most effective
when it is designed in a way that makes it appear to be special to the
customer.
b) Buying motives
Ans: Buying Motives: A consumer buys a particular product, because of certain motives.
‘Motive’ is the strong feeling, urge, instinct, drive, desire, stimulus,
thought, emotion, that makes the buyer to react in the form of decision to buy.
Just as every activity of human being has a motive behind, so also is the case
with buyers. A person does not buy simply because he is forced but what is
required is that of an inner feeling or urge that arouses interest in him to
purchase a commodity or enjoy a service at a price. Prof. D.J. Duncan has
defined ‘buying motives’ as “those influences or considerations which provide
the impulse to buy, induce action or determine choice in the purchase of goods
or service.” A study of consumer buying motivation, therefore, tells us as to –
Why the consumers have the attitudes? Why they act in a particular way? Why
consumers buy a particular commodity or commodities.
c) Target market
Ans: Target
marketing approach is important to a marketing plan because it allows the
company to focus on the needs and wants of its target audience and enables them
to plan of what they want to accomplish and achieve in the future. Target markets represent the people or the consuming public who may
consume of purchase your products and services, have the capability to purchase
it financially and can be easily reached by marketing campaign or
advertisements. Behavioral, socioeconomic and demographic data enables company
to identify what messages will attract the best and positive response among its
target markets. Stiff competitions among businesses are unavoidable and to
remain competitive, businesses must invest in advertisements to increase market
awareness and focus on their target markets to create a long lasting and good
relationship with the consumers.
d) Advertisement message
Ans: Advertisement Message:
Advertising carries a message of the product. The message may be oral or
visual. It is designed in a systematic and psychological manner to influence
the future customers/new customers. The advertiser controls the advertising
message through direction. Advertiser says what they want to say by selecting
the message through media to the target audience. Advertising includes the
following forms of messages: The messages carried in:
a)
Newspapers and magazines;
b)
On radio and television broadcasts;
c)
Circular of all kinds, (whether
distributed by mail, by person, thorough tradesmen, or by inserts in
packages);
d)
Dealer help materials,
e)
Window display and counter – display
materials and efforts;
f)
Store signs, motion pictures used for
advertising,
g)
Novelties bearing advertising messages
and Signature of the advertiser,
h)
Label stags and other literature
accompanying the merchandise.
e) Public service
advertising
Ans:
Public Service Advertising: As evident from the title itself, such advertising
is for the public causes. There are a host of important matters such as AIDS,
political integrity, energy conservation, illiteracy, poverty and so on all of
which need more awareness as far as general public is concerned. This type of
advertising has gained much importance in recent times and is an effective tool
to convey the message.
f) Sales
display
g) Ethical aspects of
advertisement
Ans: Ethics means “Good Conduct” or “Conduct which is
right in view of the society and the time period”. By common consent, various
modes of behaviour and conduct are viewed as “good” or “bad”.
In other word, we can say that Ethics
are moral principles and values that govern the actions and decisions of an
individual group. Ethics is a choice between good and bad, between right and
wrong. It is governed by a set of principles of morality at a given time and at
a given place and in a given society. Ethics is related to group behaviour in
ultimate analysis, thus setting norms for an individual to follow in
consistence with the group norms.
A particular action may be within the
law and still not be ethical; Target Marketing is a good example for this.
There is no law to restrict tobacco companies from promoting their brands to
Africans & American, though it is in India but for Doordarshan only. Similarly,
the alcoholic – beverage companies promote their brands & target not only
college students but underage drinkers as well. These advertisements have
increased alcohol related problems. Advertisements exposing pornography is
another serious issue in advertising industry today. Advertisements promoting
permissiveness & objectifying women are heavily criticized in the society.
Therefore, even advertising has
ethical value. The mixing of Art and facts in advertising communication are
subservient to ethical principles. In today’s competitive and buyer’s market,
an advertisement has to be truthful and ethical. If an advertisement is
misleading, the credibility of the organization is lost. To view the truth in
advertisement, it has to be seen from to consumer’s point of view rather than
from legal point. The advertising industry has been frequently criticized for
putting out misleading or exaggerated claims in respect of product, goods and
services advertised. It is also perceived as guilty of glorifying certain
habits or tendencies regarded as undesirable and encouraging consume rest
culture. However, it is very difficult to demarcate a clear line of difference
between what is true and what is untrue. But the advertisement as such is
judged by its impact, and by its acceptance by the consumers. The product must
fulfill its advertised claims.
6. (a) What is an
advertising appeal and how will you classify them? Describe the essentials of
advertising appeal. 4+8=12
Ans:
An advertising appeal is the device by which specific consumer response is
solicited in the advertisement. It is the basic use of service or satisfaction
which the product can render and which the advertisement is to present. An
appeal in an advertisement, is an earnest request or plea to prospects. Every
advertise aims to appeal to the prospects whether he succeeds or not in
achieving his goals. In that sense, every piece of advertisement is an appeal –
telling the story of his with reasons as to why a prospect should prefer his
products to those of his competitors.
Classifications
of appeals
Prof. William, M. Weilbacher of New York University classifies
these advertising appeals into three clear categories:
1.
Product/service related appeals,
2.
Consumer related appeals, and
3.
Non-consumer or non-product related
appeals. Let us try to have a clear cut idea as to each of these appeals with
the help of day-to-day examples.
Essentials of Advertising
Appeals
An advertising appeal - sincere request or a
plea to prospects-to serve the purposes of advertising, must have certain
requirements which can be called as the tenets or the essentials. There are at
least six such essentials to be fulfilled by an effective appeal.
1.
It is communicable:
An advertising appeal is communicable; the prospect must understand the message
to be conveyed by the advertiser. On several occasions, it so happens that we
mean something but say something else. There is a gap between what we say and
we mean. A scientifically communicated appeal is the same as what prospect
perceives as intended by the advertiser.
2.
It has a good theme: Substance
of an advertisement constitutes its theme. A piece of advertisement can
communicate effectively if it has anything worth communicable. It should be
noted that mere words may not serve the purpose for they may not be backed by
meaning. Every good advertisement appeals, because it has a theme – a story –
rather interesting story at its command. A good appeal is backed by good theme.
3.
It is interesting creating: The
prospects evince interest in the advertisement only if it is appealing to their
mind and it is appealing provided it stirs his imagination and makes him to
show his interest. The prospects interest depends on the way the appeal is
made. An appeal should speak of the features and benefits of the product in a
novel way.
4.
It is believable:
The theme so presented must be believable. Incredible and fantastic claims made
can only produce negative results. Such an attempt will only frighten and
caution them. A matter which is intended to be believed, if doubted will fail
to persuade the prospects. Therefore, it can be said that every advertisement
is a story but not a fiction, because fiction is a story engineered but a story
is real and is factual narration.
5.
It is complete:
A good appeal is complete but not superfluous. In order to make an appeal very
effective, the advertisement must tell everything about the product, producer
and the dealer to make the prospect to commit for purchase. At the same time.
It should not burden the prospect with unnecessary information. Such a
superfluous information is likely to blunt the process of decision-making –
much against the interests of the advertiser.
6.
It is true:
The appeal made must be true. While giving the features, merits or benefits,
there should not be the attempt of mispresenting or exaggerating the facts.
Over-stretched or over-polished appeals are likely to create doubts in the
minds of prospects. Truth, here implies – what product is, what it does –
without attacking the competitive products. Truth also means her commercial
honesty.
Or
(b) What role does
advertising play in the economic development of a country? Enlist the benefits
of advertising. 12
Ans: Role of Advertising in Economic and
Social Development
Advertising
plays a crucial role in developing the economy of the country is as
follows
1) Effect on Production Cost, Distribution cost and Price:
Advertising effects on production cost, distribution cost and prices are
discussed below
a)
Effect on Production Cost: Advertising
creates demand and expand market size for the product. Production results
various economies such as better utilize of expenses, availability of good
quality raw material at lower prices, availability of better machinery. These
results the cost of production.
b)
Effect on Distribution Cost:
Advertising costs is a part of selling and distribution cost spending higher
amounts on advertising increases distribution cost for distributing the
products and services to the consumers. Less selling efforts are required by
the salesman; personal selling’s is required. Then the sales are increased and
distribution cost comes down.
c)
Effect on Price: Advertising is used
to reduce the prices. Advertising results in reduction on production cost and
distribution cost. So advertising increases the market share and attracting the
customers, and reduce the advertiser prices. It is also helped in reducing he
prices of the competitor’s products.
2) Effect on Demand: In case of new products, advertising creates
the demand and educating the audience regarding creates the demand and
educating the audience regarding the usage of the product. The old products
emotional appeals. So advertising creates additional demand by attracting the
new customers with replacement of existing customers.
3) Effect on Competition: Advertising promotes competition among
different brands of the same product. The company offering good quality
products at reasonable price in the competition. When one advertiser launches
the schemes and offers other advertisers follows the same. It also promotes
consumer choice.
4) Effect on Consumer Choice: Advertising has favorable effect on
consumer choice. Advertising gives information about various brands, products
available in the market their features price, place and availabilities etc.
Consumer can make comparative study of all such choices to purchase suitable
products. Without advertising customers/consumers not able to know a built
various available brands.
5) Effect on Business Cycle: Advertising helps in reducing the
extent of business cycle. In period of recession advertisers increase their ad
expenditure to revert their falling sales. In boom period advertisers decreases
their ad-expenditure and they sell their entire production with less
advertising efforts. More advertising is required in recession period and less
advertisings in boom period to increase the sales.
Importance/Benefits of Advertising to various section of the
society
Advertising is an indispensable part of the marketing strategy of
any product or service. A proper advertisement has a great impact on the sales
of the product. Advertising is the most important tool in the marketing of
products and services. Companies all over the world universally accepted this
fact. Some of the important benefits of advertisement to various section of the
society are listed below:
q)
Communication with Customers: The main
function of advertising is to communicate with consumer’s area to increase the
sale of products and services and economy expands, the manufacturer should get
profits.
r)
Contribution to economic growth:
Advertising contributes to economic growth to expand the market and market
segments for new products. Company invests in research and development to
develop a new product and how to increase their purchasing sales.
s)
Persuasion: Advertising is to
influence the opinion of the customers to buy a product/service. The planned
persuasion is to agree the customers to purchase our products in a satisfaction
manner.
t)
Catalyst for Change: Creativity in
advertising leads to the discovery of new relationships can change the
perception. The originality of message communicated and eventual effect on
consumer’s standard of living. The ability of changes can from originality
innovation and imagination of advertising.
u)
Stimulates demand: Inform the
consumers about the availability of product in the market. The general
agreement of advertising has some effect on aggregate consumption.
v)
Develops Brand Preference: Advertising
develops brand preference of the product for brand trail. The products
delivered the quality, service and value these should satisfy the customers.
The satisfied customers develop the brand preference with strong brand
preference.
w)
Reduces Cost: Advertising is the
instrumental in production and selling costs these by increasing unit sales
decreases unit costs. By using advertising, we should reduce the cost of the
product for remove stain on the sales persons.
x)
Lower Prices: In competitive economy
the unit cost of product goes down it will effect on both internal and external
factors. Then the companies should decrease the prices and it is advantage to
the customers.
y)
Build Brand Image: Advertising plays
an important role in building the brand image of the products. Consumers
develop mental images of brand that may appeal to the different market
segments. If helps in building brand loyalty.
z)
Competitive weapon: Advertising is a competitive weapon it builds
a brand image and creates a value to the product for promotion. It helps to
differentiate a company’s offer having the unique value having a definite
identity.
aa)
Innovation: Advertising encourages the
innovation of the new product development. Advertising generate the product
demand to attract the large number of customers and encourage the competition
of the product in marketing.
7. (a) What do you
understand by the term ‘Direct Mail’ advertising? What factors would you
consider while selecting an appropriate medium for advertising? 2+10=12
Ans: Direct Mail:
This method of advertising uses postal and other delivery services to ship
advertising materials, including postcards, letters, brochures, catalogs and
flyers, to a physical address of targeted customers. Direct mail is most effective when it is
designed in a way that makes it appear to be special to the customer. For instance, a marketer using direct mail
can personalize mailings by including a message recipient’s name on the address
label or by inserting their name within the content of marketer’s message.
Direct mail can be a very cost-effective method of advertising,
especially if mailings contain printed material. This is due to cost advantages obtained by
printing in high volume since the majority of printing costs are realized when a
printing machine is initially setup to run a print job and not the because of
the quantity of material printed.
Consequently, the total cost of printing 50,000 postcards is only
slightly higher than printing 20,000 postcards but when the total cost is divided
by the number of cards printed the cost per-card drops dramatically as more
pieces are printed. Obviously there are
other costs involved in direct mail, primarily postage expense. While direct
mail can be seen as offering the benefit of a low cost-per-contact, the actual
cost-per-impression can be quite high as large numbers of customers may discard
the mailing before reading. This has led
many to refer to direct mail as “junk mail” and due to the name some marketers
view the approach as ineffective.
However, direct mail, when well-targeted, can be an extremely effective
promotional tool.
Factors Guiding Media
Selection
Selection of a suitable medium for advertising is really a complex
problem to the advertiser. There are a number of kinds and classes of media in
the modern advertising. Hence, the advertising media selection means not only
the choice of the right classes of media out also the individual medium within
the class or classes. Besides there is no single medium that is best suited for
all advertisers. In reality, a medium which is best suited for one may be
almost useless for another. The medium once employed for advertising a
particular product itself may be found unsuited subsequently. Therefore, the
right choice of a medium calls for a careful analysis. If the medium is
unsuited the whole amount of money spent on the advertising campaign shall turn
to be a waste. The advertiser, therefore, while selecting the media, should
consider the following factors:
1) Class
of the audience: Firstly, the advertiser must note the class
of the audience to be influenced by the medium. The audience can be classified
into different groups by their social status, age, income, educational
standard, religion, cultural interests. They may also be divided into men and
women.
2) Extent
of coverage: Secondly, the advertiser must consider the
number of audience to be covered by the medium. Every media has a general as
well as an effective circulation. The general circulation is made up of the
total number of people who read or subscribe to the media. The effective
circulation is the number prospective customers who read it and the number of
those who influences sales, though they may not buy for themselves. Effective
circulation must be considered while estimating the number of people to be
covered. The extent to which the medium reaches the same audience as that
covered by some other media i.e., the percentage of over-lapping must also be
taken into account.
3) Nature
of the product: Nature of the product itself is a principal
factor governing the selection of the medium. Products can be classified into
various kinds – consumer ‘s products and manufacturer ‘s products etc.
4) Nature
of the competition: The nature of the competition has
greater influence of the selection of the media. If the competition is stiff
utmost care is needed in the selection of medium and a larger advertising
budget is also required. In many cases, where the advertising copy is similar
or the choice of the media solely determines the effectiveness of the campaign
as compared with that of the other competitors.
5)
Reputation of the medium: Newspapers and magazines can offer a
beautiful illustration for the reputation of the media. There are a few
newspapers and magazines which have international reputation with a high
readership. Advertisements in such magazines and newspapers are generally
recognized and believed as true. Such advertisements also add prestige to the
product.
6) Cost of
the media: Cost of the medium in most cases, is an important
factor in the selection of the medium. Advertisements in certain media are
expensive, for instance, TV and Radio advertisements. Magazines and newspaper
advertisements are generally considered as less expensive. Yet, certain
magazines and newspapers, having larger circulation and high reputation charge
higher rates. The rates also differ depending upon the space occupied and the
preferential positions. The first page of a newspaper is rarely missed by the
reader. Hence they have more attention value, than the advertisements presented
anywhere inside the newspaper.
7) Time
and location of buying decisions: The location of the audience and the
time by which it should reach them must also be looked into. This consideration
also enables the advertiser to keep his retail outlets in the proximity of the
customers.
8) Trade
Acceptance: The degree of acceptance that a medium can
generate among the advertiser’s intermediaries such as wholesale and retailers
would generate more favourable effect. Accordingly, the message and the media
should be such that these intermediaries are enthusiastic about it. For
example, an advertisement placed in a trade journal which is popular among
intermediaries will have a positive effect on them which would in turn be
carried to consumers.
Or
(b) Explain the economic
and social perspectives of advertising.
12
Ans: Economic and Social
Perspective of Advertising
Advertising
plays a crucial role in developing the economy of the country is as
follows
1) Effect on Production Cost, Distribution cost and Price:
Advertising effects on production cost, distribution cost and prices are
discussed below
d)
Effect on Production Cost: Advertising
creates demand and expand market size for the product. Production results
various economies such as better utilize of expenses, availability of good
quality raw material at lower prices, availability of better machinery. These
results the cost of production.
e)
Effect on Distribution Cost:
Advertising costs is a part of selling and distribution cost spending higher
amounts on advertising increases distribution cost for distributing the
products and services to the consumers. Less selling efforts are required by
the salesman; personal selling’s is required. Then the sales are increased and
distribution cost comes down.
f)
Effect on Price: Advertising is used
to reduce the prices. Advertising results in reduction on production cost and
distribution cost. So advertising increases the market share and attracting the
customers, and reduce the advertiser prices. It is also helped in reducing he
prices of the competitor’s products.
2) Effect on Demand: In case of new products, advertising creates
the demand and educating the audience regarding creates the demand and
educating the audience regarding the usage of the product. The old products
emotional appeals. So advertising creates additional demand by attracting the
new customers with replacement of existing customers.
3) Effect on Competition: Advertising promotes competition among
different brands of the same product. The company offering good quality
products at reasonable price in the competition. When one advertiser launches
the schemes and offers other advertisers follows the same. It also promotes
consumer choice.
4) Effect on Consumer Choice: Advertising has favorable effect on
consumer choice. Advertising gives information about various brands, products
available in the market their features price, place and availabilities etc.
Consumer can make comparative study of all such choices to purchase suitable
products. Without advertising customers/consumers not able to know a built
various available brands.
5) Effect on Business Cycle: Advertising helps in reducing the
extent of business cycle. In period of recession advertisers increase their ad
expenditure to revert their falling sales. In boom period advertisers decreases
their ad-expenditure and they sell their entire production with less
advertising efforts. More advertising is required in recession period and less
advertisings in boom period to increase the sales.
6) Effect on Social Income: Advertising promotes demand increases
productive and industrial activities promote growth in agriculture growth in
service sector increase exports etc. All this results in increase in national
income also promotes the standard of living of customers. But advertising
creates demand promote new products expand markets promotes production and thus
results in increase of national income.
7) Creation of Utility: Advertising creates time place and
perception utility. In case of seasonal products, it creates time utility. In
case of off-seasonal products if creates demand utilities. In case of earlier
products sold it creates the utilities demand. In case of perception utility,
it creates positive image of product in the minds of audience.
8) Effect on unemployment: Advertising has created both direct and
indirect employment to various persons in the society. Now -a-day advertising
is a big industry. It provides employment to persons in various jobs like
copywriter artists, graphic designers, painter, models, music, actors, etc. At
present lakhs of people working in advertising industry.
9) Effect on Production Quality: Advertising promotes competition
and every advertiser wants touched in the competition. Advertising knows that
for long term success in business and for effective advertises special a lot of
resources on research and development work to improve product quality.
10) Effect on standard of living: Advertising effect on standard
of living of customers. Resulted in price reduction. In this advertising
satisfies the all levels of customers in the competitions satisfied with the
products designed with good quality of the products.
Social
Role of Advertising
a)
Advertising reflects society and
society reflects advertising. At social level advertising plays upon, derives
from and contributes to the social texture of a country.
b)
Various social changes are brought
about or helped by advertising. Adult education, family planning and pulse
polio campaign are the examples of few successful social advertising campaigns.
It makes role models who can create societal change.
c)
Advertising are efficient source of
information for product quality, new material or merchandise, new technology
and cost.
d)
It reduces distribution costs,
encourage competition and increases product quality through brand identity.
e) It supports mass media to maintain independence from government, political parties and other special interest groups.
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