banner top
Business top

Topics
Business
Business Finance
Insurance
Investment
Real Estate
 
Articles
• Small business association loan
• Small business bookkeeping
• Small business computer consulting
• Small business crm
• Small business development center 1
• Small business development center
• Small business equipment financing 1
• Small business equipment financing
• Small business grant money
• Small business grants and loans

 


 
 

 

 

Small business advertising

I. Definition

Advertising consists of those activities by which visual or oral messages are addressed to selected public for the purpose of informing and influencing them to buy products or services or to act to be inclined favorably toward ideas, persons, trademarks or institutions featured. As contrasted with publicity and other forms of propagandas advertising messages are identified with the advertiser either by signature or oral statement. Further, advertising is a commercial transaction involving pay to publishers, broadcasters or other media which are employed.

From the above definition, advertising indicates that:

a. Written or oral messages are addressed to selected customers.

b. It influences the general public to buy products or services.

c. Advertising messages are identified with the advertiser.

d. It is a commercial transaction that forces the advertiser to pay the publishers or broadcasters whose media is used.

II. Meaning

Advertising is any paid form of non-personal presentation of ideas, good or services by an identified sponsor. It includes all the activities involved in presenting to a group of persons a non-personal or visual, openly sponsored message regained a product. The term advertising is used to give expression to all non-personal methods of stimulating sales and of increasing or retaining patronage of dealers and customers. It may be defined as the mass method of selling which supplements the voice and personality of the salesman.

The committee on definitions of the American marketing association gave the following definition of advertising:

Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. It involves the use of such media as following: magazine, newspaper space, motion pictures, outdoor direct mail, novelties, radio, television, cards, catalogues, directories, references, programmes, memos and circulars.

III. Advertising and Advertisement

The messages are known as advertisement. Advertisement is nothing more than a message. Advertising is a process. It is a programme or series of activities necessary to prepare the message and bring it to the intended persons or market. The reader knows who is behind the advertising, as the sponsor is openly identified in the advertisement itself. Payment is made by the sponsor to the media, who carry the message.

IV. Functions of Advertising

We may group the various functions of advertisement in two (a). Primary functions and (b) Secondary functions

(a) Primary functions :-

1. To increase sales of the product by securing greater consumption, attracting new buyers or introducing new users for a commodity.

2. Persuasion sales of the product by securing greater consumption, attracting new buyers or introducing new users for a commodity.

3. It helps the dealers to sell the advertised product.

4. Advertising is effectively used to increase the per capital use of the commodity by its constant repetition.

5. The receptiveness of new product or new model increases if producer has earned a name as a producer of good quality products. This is done by advertisement.

6. Advertisement creates insurance for the manufacturers business.

7. The buyers dependability on well advertised goods its increased because he knows its quality.

8. Advertisements help eliminating or lessening essential fluctuations.

9. Advertisement creates brand image and brand loyalty.

10. It raised the standard of living of the public by investigating the desire to purchase better and qualitative things.

(b) Secondary functions:-

i. Advertisement encourages the salesman and lends them moral support in facing a difficult customer.

ii. Necessary informations are furnished to salesman, dealers and customers about the product. The printed word is manufacturers guarantee.

iii. It creates a feeling among executives and administrative staff that they are working in a company having public response.

iv. The workers of company as to a well advertised goods feel themselves secured. It means steady work and consequent prosperity. There is feeling in the minds of workers that their job is permanent and is likely to be promoted.

v. It helps the company to secure better employees-executives salesmen and workers.

The above functions of advertisement help the producer, salesmen, dealer and consumer.

V. Advertising Media

a. Press Advertising:

Among the various firms, press advertising is the principle medium. To term Press covers variety of publications including newspapers, weekly and monthly magazines, trade journals and periodicals. While choosing newspapers and magazine media the advertiser firm compares various publications on the basis of number of copies sold region wise sales, number of readers from different sexes, age and income groups and above all, rates charged for advertising per column-centimeter.

Newspapers:

News papers with large circulation are the most popular media of advertising for almost all kinds of producers. For the full use of advertisements to be published careful selection of newspapers is necessary.

While choosing newspapers, first the number of copies into circulation, the class of readers served and the cost of space should be taken into consideration. Then the class of newspapers should be chosen.

Advertising may be given in daily, weekly or bi-weekly newspapers. Daily Newspapers are read by a large number of people everyday. Therefore advertisements published in daily newspapers are short-lived.

As compared to daily newspapers, Weekly Newspapers of weekend newspapers, such as Sunday newspapers, are read at leisure and appeal of advertisement inserted in them is relatively more effective.

Newspapers may also be classified into (a) local (b) provincial and (c) national newspapers.

For an appeal intended for the people of particular locality, it is always preferable and economical to choose local newspapers. For an appeal meant for a wider area, but not the whole country. Provincial newspapers i.e. newspapers having circulation in a particular province or region should be chosen. Products which need the support of the market spread over the whole country should be national newspapers.

Magazines :

Magazines as the medium of advertising are more suitable for provincial and national advertising. Magazines are selective in the nature of their audience because each magazine is meant for a group or readers with a particular interest. Therefore, advertisements can be designed to reach particular groups of audience and published in the magazines meant for those groups.

Magazines are more selective in their audience than newspapers. But they are not as flexible as newspapers. Copies of advertisements have to be sent to the publishers of magazine is meant for a group or readers with a particular interest. Therefore, advertisements can be designed to reach particular groups of audience and published in the magazines meant for those groups.

b. Film Advertising

Films are used both for public showing and for staff training, demonstration to sales men and dealers etc.

Film showing for public may be one on the following three kinds:

1. Documentary

2. Sponsored and

3. Straight advertising

c. Radio Advertising

Radio as a medium of advertising is a new device, about 40 years old. Radio advertising can be used to cover a selected geographical area. But its coverage is not as intense as that of newspapers.

Advertisers can choose the radio stations to cover local provincial or national market. Many advertisers who use the national-network of radio stations try to promote the goodwill for their firms. Others aim at increased sales of their products through local dealers by direct sales appeals.

Radio advertising has some limitations. Listeners cannot refer back to the advertisement to secure more information. Also radio-listeners often do not listen to such programmes exclusively.

Its merits are that it carries a wide appeal. It can cover a large number of listeners, even illiterate persons. It combines the power of speech and of sound to produce effective result in putting across a message.

The impact of radio-advertising is evident in advanced countries like the U.S.A.

d. Television Advertising

Television advertising is the latest medium of advertising, hardly 25 years old. It is being more and more widely used by firms in the U.S.A.

Television advertising has important advantages over newspapers, magazines and radio as the media of advertising. It can transmit message directly into the home. It combines the effectiveness of pictorial presentation with the advantage of sound. It adds to these advantages, the effect of film advertising because its pictures move.

Its limitations are that it needs exclusive attention of an individual because he has to both see hear a television programme. Also, as in the case of radio advertising it suffers from the facts that pack reference to the advertisement after it has been presented is not possible. Further, it is closely method and therefore, can be used only by well established large firms.

e. Direct Mail Advertising

Direct mail advertising is used by the advertiser to send the message directly to the prospect or the customer. If the mailing list is prepared carefully and is kept up to-date, it can help in selecting prospects to the greatest extent of effectiveness. It is highly flexible because the advertiser can expand or contract the mailing list by adding or removing the names from time to time. Also, the advertiser can stop or start mailing has direct mail literature as he wishes. He can also select specific territories or markets to be covered.

Other advantages of direct mail advertising are, the effectiveness of direct mail advertising can be easily tested. It can be as elaborate of inexpensive as desired by the advertiser.

It is most commonly used by the firms selling directly to consumers or retailers.

Direct mail advertising involves use of the following:

a. Sales letters

b. Circular letters

c. Booklets, Catalogues, Calenders, etc.

e. Outdoor Advertising

Outdoor advertising is frequently used along highways and man thorough fares within a city. Its aim is to attract the attention of the passers-by. This medium of advertising is more effective. Advertisement displayed through this medium through this medium as seen by a large number of people.

Main forms of outdoor advertising are as follows:

a. Posters and painted displays.

b. Electric and neon signs.

c. Sandwich men, and

d. Sky-writing

Posters

Posters which are pasted on the walls or exhibited otherwise on roadsides, street corners, bus terminus, railway stations, etc. These placards carry messages printed on sheets of paper or printed on wooden piece or metal plate.

Painted displays

These are prepared with the help of expert artists. There are so designed that effect of the message may be reinforced by the use of multicolored pictures.

Electric and neon signs

These are used to attract the attention of passers by to the advertising messages which consist of letters, figures or pictures and illuminated by electric bulbs or neon tube. Use of electric and neon signs as a medium of advertising is an effective device. But it is very costly.

Car-Cards

These are the posters which are exhibits inside railway carriages, buses, taxis, so that messages reach thousands of passengers using these vehicles a means of their travel. Use of car-cards is also known as vehicular advertisement. These are the hired persons who moves in the busy streets dressed in fancy clothes in the form of a procession. They carry on their person the posters and placards containing messages of advertisements. At frequent intervals they shout slogans about the quality of the product of the firm which has hired them.

Sky-writing

Refers to use of the illuminated banners containing messages in the open sky during evenings. Balloons fitted with pictures depicting the product attractively also may be flown in the sky.

g. Point of purchase advertising

Point of purchase advertising is concerned with the customers at or near about the place where products are sold as against other media discussed earlier which go to the customers whether at home or in travel. It refers to the devise like counter displays, floor racks, door signs, wall displays and window displays.

Firms supply materials free to the dealers. Often salesmen are required to secure the proper use of these display materials in an around the shape of the dealers and assist them in displaying these materials more scientifically.

Window display is the most important amongst them. It involves scientific and attractive exhibition of goods in systematically laid out windows at the front side of the shops.

Selected specimens of the products are displayed in such a way that the prospective customers are in position to compare their requirements with the variety of goods exhibited there.

h. Speciality advertising

This medium of advertising refers to the practice of offering specialty articles such as diaries, paper weights, cigarette cases, etc., bearing the name of the firm to the prospective and existing customers.

Business top