In modern times advertising prevails in all walks of human life.
It has acquired the distinction of being the most visible and glamorous method
of marketing communication. Advertising is defined as any paid form of
non-personal presentation and promotion of ideas, goods or services by an
identified sponsor. Some of the major marketing and communication functions
performed by advertising today include to inform, entertain persuade,
influence, remind, reassure and add value to the product or service advertised.
Before going to role of advertising and managerial aspects of advertising, let
us acquaint ourselves with how advertising works and what are the various types
of advertising.
HOW ADVERTISING WORKS?
In order to perform the
various marketing and communication functions listed above, according to Paul
E.J. Gerhald, advertising moves through the following stages before
accomplishing its purpose:
·
it gets planned and
brought into existence
·
it is reproduced and
delivered and exposed to people
·
it is received and
assimilated
·
it affects ideas,
intentions and attitudes
·
it affects buying and
buying process
·
it responds to time
(situation and repeated exposure)
·
it affects trade effort
and supply
·
it affects product
consumption
·
it changes sales and
profits
·
it changes the market
(size, quality mix, intensity of competition, trade relations, consumerism
etc.)
TYPES OF
ADVERTISING
Depending upon the nature of the task involved, type of product
represented or the focus of activity transacted, advertising efforts are
grouped into various types. Let us take a few examples. Advertisements for
machinery and machine tools form part of industrial advertising, and the ones
for footwear, cornflakes or edible oil, the consumer advertising. The
advertisements aimed at improving the corporate image are forms of Corporate
advertising and the ones promoting a company's products, the product
advertising. Likewise, advertisements promoting the consumption of tea or
carpets are called primary demand creating advertisements whereas those
relating to say Brooke . Bond's `Tajmahal' or Nescafe', the selective brand
advertising. Advertisement aimed at effecting immediate sale of the product
advertised is called direct advertising, and the ones performing tasks like
announcing the launch of the new product, building purchase intentions,
creating interest in customers or changing their attitudes towards the product,
are termed the indirect action advertising. The advertisements which are
sponsored and paid for by the manufacturers, are manufacturer advertising, and
such advertisements whose costs are shared by the manufacturer and wholesalers
or retailers are co-operative advertising. Co-operative advertisements aim at
increasing the demand of a specific product of a manufacturer through a
particular wholesaler or retailer. On the other hand, when a retailer
advertises for his shop entirely on his own to attract traffic to his shop it
is retail advertising. In short, the
major types of advertising are: industrial and consumer, product and
institutional, primary demand and brand-demand, direct (sales) demand and
indirect (awareness, intentions and attitudes) action advertising, and
manufacturer, co-operative and, retail advertising.
