Why Advertise and Why Advertise and The History of The History of

AdvertisingAdvertising

Mr. MooreMr. Moore

Speech Communications ISpeech Communications I

ObjectiveObjective

• Students will understand the reasons and advantages of advertising and its objectives.

Why Advertise?Why Advertise?

• Advertising is every where.• Advertiser may not see individual

consumer, yet has research (knowledge) about the consumer.

• Advertising can be far cheaper per potential customer than personal selling.

• Advertising is better as a sales tool and though it is non-personal yet is more effective.

Human Senses and Human Senses and AdvertisingAdvertising

• Though, communication uses all senses like smell, touch, taste, sound & sight, only two are useful in advertising i.e. Sound & Sight.– Sound: Radio, Television — micro-

sound chips in magazines.– Sight: The most useful medium of

communication like print, i.e. “A picture is worth a thousand words.”

Advertising & PersuasionAdvertising & Persuasion

• Purpose of advertisement is to identify and differentiate one product from another and to persuade the customer for preferring one to another.

Products, Services, and Products, Services, and IdeasIdeas

• Things advertiser wants consumers to buy. There are three basic differentiations in products– 1. Perceptible – Obviously different

from other-like color, size, shape etc.– 2. Imperceptible – Those which exist

but are not too obvious.– 3. Induced. – No obvious difference but

inform people about the difference

History of AdvertisingHistory of Advertising

• 1704 1st newspaper ad, seeking buyer for an Oyster Bay was published.

• 1843 1st Ad. Agency set up in Philadelphia• 1882 Advertising of a soap brand was done with a

huge budget of 11000 US$.• 1893 A famous beverage brand was registered as

a trade mark.• 1899 J. Walters: 1st agency opens an office in U.K.• 1923 1st entertainment program was sponsored

by an advertiser.• 1947 J .Walter Thompson 1st agency to cross

100Mil $ in billing.

History of Advertising History of Advertising cont.cont.

• 1976 Indian commercial TV launched.• 1978 1st TV commercial is launched.• 1990 A new Medium Internet is born.• 1993 5 million internet users get on line.• 1999 Internet advertising breaks 2 Billion

US$ mark.• 2003 TV show with built in advertising is

planned.

Why Promotion is Why Promotion is Important?Important?

•Since businesses must continually Since businesses must continually promote their organizations, promote their organizations, products and policies to gain products and policies to gain customer acceptance, you will need customer acceptance, you will need to learn successful promotional to learn successful promotional strategies.strategies.

What is the Promotional What is the Promotional Mix?Mix?

•The promotional mix is a combination of The promotional mix is a combination of the different types of promotion. There the different types of promotion. There are four basic types of promotion:are four basic types of promotion:

1.1.AdvertisingAdvertising

2.2.Publicity/Public RelationsPublicity/Public Relations

3.3.Personal SalesPersonal Sales

4.4.Sales PromotionSales Promotion

•Advertising is any Advertising is any paid paid form of non-form of non-personal promotion of ideas, goods personal promotion of ideas, goods or services. Advertising can be or services. Advertising can be found anywhere from magazines, TV found anywhere from magazines, TV and internet to anything that is and internet to anything that is ONE-WAYONE-WAY communication. communication.

•Public relations - Public relations - The method or activities The method or activities of establishing and promoting a favorable of establishing and promoting a favorable relationship with the public. relationship with the public.

•PublicityPublicity is part of public relations and is part of public relations and involves placing newsworthy information involves placing newsworthy information about a business, product or policy in the about a business, product or policy in the media. media.

•It’s mostly free.It’s mostly free.

•Personal sales are when Personal sales are when individuals make contact individuals make contact with potential buyers with potential buyers face-to-face to promote face-to-face to promote their business, products their business, products or policies.or policies.

•Sales promotion Sales promotion represents all marketing represents all marketing activities other than the activities other than the three already three already mentioned, like:mentioned, like:– ContestsContests– Fashion showsFashion shows– CouponsCoupons

•Used to stimulate Used to stimulate consumer purchase consumer purchase immediatelyimmediately

•Factors affecting the Factors affecting the promotional mix:promotional mix:

–TechnologyTechnology–EconomyEconomy–MarketMarket–DistributionDistribution

Factors Factors Affecting the Affecting the Promotional MixPromotional Mix

•Match the examples below to one of Match the examples below to one of the 4 strategies in the promotional the 4 strategies in the promotional mix: mix: (advertising, publicity, personal sales, (advertising, publicity, personal sales, sales promotion)sales promotion)

1. TV Commercial

2. Insurance sales 4. Coupon

5. contest 6. Fashion Show7. Magazine Ad

3. News release

7. Home Tupperware Party

AdvertisingAdvertising

AdvantagesAdvantages DisadvantagesDisadvantages

Allows large number of Allows large number of people to see the advertised people to see the advertised messagemessage

Can’t focus on individual Can’t focus on individual needsneeds

Can be controlledCan be controlled Can be too expensive for Can be too expensive for many businessesmany businesses

Can have repeat viewersCan have repeat viewers Can be inefficient (short Can be inefficient (short coverage of billboards & coverage of billboards & magazines)magazines)

Can pre-sale products Can pre-sale products before customers go before customers go shoppingshopping

AdvantagesAdvantages DisadvantagesDisadvantages

save a business money by save a business money by extending it’s advertising extending it’s advertising budgetbudget

May not be accurate or May not be accurate or presented in the way or time presented in the way or time that will reach the right that will reach the right audienceaudience

Can increase a business’ Can increase a business’ profit and exposureprofit and exposure

Can be negative or harmful Can be negative or harmful to the businessto the business

Lack of control of contentLack of control of content

Public Relation/PublicityPublic Relation/Publicity

AdvantagesAdvantages DisadvantagesDisadvantages

Personalized to individual Personalized to individual customerscustomers

Most expensive form/per Most expensive form/per salesale

Largest form of promotionLargest form of promotion Has slower Has slower distribution/coverage distribution/coverage compared to advertisingcompared to advertising

Easier for personal sales to Easier for personal sales to focus on target market and focus on target market and complete the salecomplete the sale

Personal SalesPersonal Sales

Sales PromotionsSales PromotionsAdvantagesAdvantages DisadvantagesDisadvantages

Variety of activitiesVariety of activities Short term incentives Short term incentives

Includes many different Includes many different marketing activities to marketing activities to stimulate consumer interest stimulate consumer interest including business to including business to business promotionsbusiness promotions

Can be controlledCan be controlled