Rajasthan Board RBSE Class 12 Business Studies Notes Chapter 8 Advertisement
Advertisement is a promotional technique used by the marketeers to boost up the sales.
Advertisement is a non-personal presentation and promotion of ideas, goods and services of an identified sponsor.
Advertisement is regarded as a prominent tool of marketing.
In our daily life, we come across thousands of advertisements either on mobile, television set, radio, emails, newspapers, etc. about various goods or services.
Advertisement helps common people to get updated information about the product and persuades them to buy it.
Objectives of Advertisment
- The first and last objective is to create a desire to buy the product.
- It plays an important role in creating demand amongst new and existing customers for a product.
- To increase demand and persuade people to use new, improved products, by changing their old consuming habits and interest.
- To attract the middlemen.
- To educate the consumers.
- To develop brand preference.
- To enhance goodwill of the enterprise.
- To overcome and face competition and to sustain demand by creating confidence in consumers.
- To reach people inaccessible to salesmen, advertising is done.
Advertisement Media
Advertisement media is that means through which a trader or manufacturer can spread his message to public. Types of advertising media are :
- Outdoor Advertising
- Press Advertising or Print Media
- Magazines and Journals
- Sandwichman advertising
- Direct mail advertising
- Audio and visual advertising
- Purchase point advertising
- Speciality advertising.
1. Outdoor advertising : Wall painting, posters and hoardings, electrical sign board displays, vehicular displays, signage advertising.
2. Press advertising or print media : It includes newspaper advertising, etc. It is of two types :
- Classified advertising : It includes auction, jobs, sales, education, matrimonials, etc.
- Non-classified advertisement : There is no specific space reserved. It can be printed on any page of the newspaper.
3. Magazines and Journals : Advertisement published in weekly, monthly, annual magazines is known as Magazine advertisement. Technical and trade journals, like Business India, etc. are useful for advertising books and products.
4. Sandwichman advertising : The modern day mascots, fancy-looking human or animal outfits or a person in gaudy costume carrying colourful brochures in some cases, are used by some local businesses to promote the products, especially during festival seasons at busy malls and market places.
5. Audio and Visual advertising : The main forms of this type of advertising are radio advertising, television advertising, film advertising, window display, etc.
6. Purchase point advertising : They are put in retail stores to attract consumer’s interest and promote the sale of product.
7. Speciality advertising : Diaries, key chains, purses, pen holders, desk trays, paper weight, carry bags, calendars, etc. are offered as presents to potential customers to advertise certain products.
Merits of Advertisement
- Economical mode of communication.
- Medium through which a large number of people can be reached over a vast geographical area.
- Enhancing customer satisfaction and confidence.
- With the development in art and computer designs, advertising has emerged ais one of the must forceful mediums of communication.
- It is a means of communication which provides information to the consumers about available goods which can satisfy their need.
- It creates good image of the brand in the mind of people which is important for increasing sales.
- It gives information about different brands, so that the buyers can clear their confusion by analysing the information provided and other sources before taking a decision to buy a product.
Disadvantages of Advertisement
- It is a non-personal form of communication. It is less forceful than personal communication.
- Lack of feedback.
- Low effectiveness, as the volume is getting vast day by day.
- Advertising is less flexible.
- If the commodities are of inferior quality, they can’t sustain in the market through advertisement.
- Not suitable for seller market, for example, there is no use of advertising kerosene and LPG as they have seller market.
- Not suitable for products having inelastic demand.
- Advertisements undermine social values.
Need of Advertisement
- Advertising is very helpful in launching a new product and making it popular in the market.
- Advertisement is aimed at stimulating demand by making people aware of new
- products and new uses of existing articles.
- Advertisement widens the market for products by influencing the consumer’s buying behaviour to select one out of different competitive products.
- To educate the consumers, advertisements are needed.
- Advertising makes the process of selling easier.
- Consumer gets the information about the changed price of the product through advertisement.
Importance of Advertisement
1. Benefits to Businessmen I Manufacturers
- Meeting, competition
- Retailers Interest
- Growth and expansion of business
- Facilitates mass production
- Higher profits
- Support to salesmen
- Introduction of new products
- Higher sales volume
- Economy of scale
- Enhances goodwill
2. Benefits to consumer :
- Education to consumer
- Saving time
- Convenience
- Better quality
- Standard of living
- Consumer surplus
3. Benefits to Middlemen :
- Contact with producers
- Help in enhancing sales
- Lowers the risk
- Increases the profits
- End of unhealthy competition
4. Benefits to Society :
- Increases employment and job opportunities
- Improves standard of living by providing better goods at reasonable price
- Stimulates research and development to create new products
- Makes available large varieties of goods and services
- Inspires people to fight against social evils
Important Glossary
- Advertisement: It is a non-personal presentation and promotion of ideas, goods and services of an identified sponsor.
- Outdoor advertisement: Advertisement which attracts the attention of the people by poster displays, bill-board displays, etc. are included in outdoor advertisement.
- Posters: It refers to the printed papers which can be pasted on the walls of buildings or other places to convey the message to the people passing by.
- Electric sign board: Its display involves the use of lights or neon tubes to attract the attention of people, particularly during night time.
- Classified advertisement: These advertisements are printed in the newspapers in special columns at specified space under specific heading like tender, matrimonial, etc.
- Unclassified advertisement : For these advertisements, there is no specific space reserved. It can be printed on any page of newspaper, according to the advertiser’s wishes.
- Sandwichman advertisement : In this, person-sized wearable bill board or advertisement consisting of two printed boards are strung together, so that they hang over the shoulders, thereby sandwiching the wearer.
- Purchase point advertisement: These are the displays put in retail stores to attract consumer interest and promote sales of a product.
Definitions of Advertising
- According to William J. Stanton – “Advertisement consists of all the activities involved in presenting to a group a non-personal, oral or visual, openly-sponsored message regarding a product, service or idea. This message, called an advertisement, is disseminated through one or more media and is paid for by the identified sponsor.”
- According to John. E. Kennedy, “Advertising is salesmenship in print.”
- According to Boyard O’ Wheeler, “Advertising is non-personal presentation of ideas, goods or services for the purpose of inducing people.”