Unit 2 Role of advertising and types of advertising

role fo advertising in marketing mix
role of advertising in business
types of advertising
types of channel in advertising
classification of media or channel
advertising process steps

1. Role of Advertising in Marketing Mix

Marketing mix consist of four important variables of marketing, i.e. 4Ps-Product, Price, Promotion
and Place. Apart from the traditional 4Ps, there are also other variables, i.e. Packaging, Posting, and
Pace.
Advertising performs several roles in marketing. The first role advertising plays is the informative role.
Advertising serves as the channel through which consumers get to know about products and services.
Companies manufacture products and services with the aim of selling them to consumers; without sales,
these companies will run at a loss and soon willl be out of business. It is advertising’s role through
various media, to inform the public about products and services. Apart from informing consumers,
advertising goes further to persuade consumers to make a purchase. The public may be well informed
about a product through the various media, but do bother to patronize the product. Advertising through
creative appeals persuades the public to take action and make a purchase. The promotion and
preservation of the brand image is another role advertising plays in marketing. Advertising is a source of
image for brands; it reflects and forms a brands reception by the public (Biel, 1993). Advertising helps to
sustain a brand’s image which in the long run helps to boost a company’s reputation and long term
investments. Advertising achieves the above by influencing the perceived qualities of products (Kirmani
and Zeithmal, 1993). The perceived quality of a product refers to consumer’s judgment about a
product’s overall excellence and superiority. Advertising through the use of creativity, appropriate
media and persuasive tactics can influence consumers causing them to alter beliefs and desires about
particular products or services.
Advertising is an element of promotion. However, it not only assists in promoting the product, but
also affects the other variables of marketing mix. This can be explained as follows:
1. Advertising and Product: A product is normally a set of physical elements, such as quality, shape,
size, colour and other features. The product may be of very high quality .At times, the product is so
designed that it requires careful handling and operations. Buyers must be informed and educated on
the various aspects of the product. This can be effectively done through advertising. Thus,
advertising plays the role of information and education.
2. Advertising and Price: The price is the exchange value of the product. A marketer may bring out a
very high quality product with additional features as compared to competitors. In such a case, price
would be definitely high. But buyers may not be willing to pay a high price would be definitely high.
But buyers may not be willing to pay a high price. Here comes advertising. Advertising can convince
buyers regarding the superiority of the brand and thus its value for money. This can be done by
associating the product with prestigious people, situations, or events. Alternatively when a firm offers
a low price products the job of advertising needs to stress the price advantage by using hard hitting
copy. It is not just enough to convince, but it is desirable to persuade the buyer. Thus advertising
plays the role of conviction and persuasion.
3. Advertising and Place: Place refers to physical distribution and the stores where the goods are
available Marketer should see to it that the goods are available at the convenient place and that too
at the right time when the buyers need it. To facilitate effective distribution and expansion of market,

2. advertising is of great significance. Thus advertising do help in effective distribution and market
expansion.
4. Advertising and Promotion: Promotion consists of advertising, publicity, personal selling and sales
promotion technique. Businessmen today have to face a lot of competition. Every seller needs
effective promotion to survive and succeed in this competitive business world. Advertising can play
a significant role to put forward the claim of seller, and to counter the claims of competitor. Through
effective advertising, sellers can face competition and also help to develop brand image and brand
loyalty.
5. Advertising and Pace: Pace refers to the speed in marketing decisions and actions. It involves
among other things the launch of new products or brand variations at greater speed than before. As
and when new brands are launched, advertising plays an important role of informing, educating and
persuading the customers to buy the product.
6. Advertising and Packaging: The main purpose of packaging is protection of the product during
transit, and preservation of quality and quantity. Now a –days, marketers take lot of efforts to
develop and design attractive packages as they carry advertising value. A creatively design package
attract the attention of the customers. It also carries an assurance of quality and creates confidence in
the minds of customers to buy the product.
7. Advertising and Positioning: Product positioning aims at creating and maintaining a distinct image
of the brands in the minds of the customers. Through advertising the marketer can convey the
positioning of the brand and accordingly can influence the buying decision of the target audience
The Importance of Advertising to Businesses
Goods and services are produced according to consumers growing and changing desires. They
are competitive tools for companies among their rivals. Companies involved in the commercial
production of goods and services need advertising for several important reasons. The first reason
is that advertising helps to publicize and promote their products to the public thereby helping to
improve sales. Depending on the nature of the product, advertising uses the right media to get the
message across to consumers. For example, in the case of consumer products such as food, soap
and soft drink; the broadcast media is often chosen. Secondly, advertising helps to reduce
distribution costs. Because Importance of Creative Advertising and Marketing According to
University Students’ Perspective 241 advertising reaches a mass audiences, the cost of personal
selling and distribution is greatly reduced (Dominick, 2013). Through the various media
advertising messages can go beyond regional and national boundaries. Advertisements are
exposed to a global market via the internet and social networks. Advertising serves as a tool for
competition. In order to compete with others, companies use creative and appealing
advertisements to lure consumers to patronize their brands. Some companies will go as far as
inundating the media with their advertisements in order to ensure that consumers’ attention is
captured. However, Phillip and Raspberry argue that what counts is not what the company says
about itself but rather what people say about it as experience shows that companies who trumpet
heir virtues are barely average (Phillip and Raspberry, 2008). Advertising for manufacturers has
several advantages like promotes products because people become aware of the existence
products and services and lead them to making a purchase so sales are increasing; increasing of
the sales demonstrate higher demand, it means more production; through advertising companies
communicate new products to consumers in an effective and cost effective way. Advertising

3. simplifies the task of the salesperson and helps consumers reach out to new products
(Chowdhury, 2011). In addition, through advertising a company can compete with others by
showcasing competitive prices or the benefits of its products and services. Manufactures can also
remove misunderstanding about their products through appropriate advertising (Akrani, 2010).
Advertising for consumers has also several advantages like advertising helps to save consumers
time by pointing them to specific products. Advertising also helps consumers to be more specific
during shopping; consumers can make their choice before going shopping, they become aware of
new businesses and new products and brands; through competition which is enhanced by
advertising, some companies often lower the prices of their products in other make more sales
and compete with others in the market and also many advertisements often contain customer care
number of links to company’s websites which consumers can contact the company directly with
questions or complaints. In addition to advantages of manufacturers and consumers, there are
many advantages for society like the advertising industry generates thousands of jobs for people
connected with advertising or marketing communication. Advertising also generates more jobs in
companies due to expanding production and sales; because of the highly competitive marketing
environment, companies are constantly trying to come up with new products with creative
designs and improved benefits or functions. The emergence and use of these new products often
lead to higher quality of living; many media houses especially private ones, depend entirely or
almost entirely on revenue generated from advertisements. Through revenue from
advertisements many print houses are able to reduce the cost of production which in turn lowers
the prices of newspapers and magazines; advertising stimulates research both academically and
in marketing. Scholars and marketers are increasingly interested in studying the ways advertising
affects consumers and how consumers react to advertising. On the other hand; advertising also
has its weaknesses like; advertising often leads to increment in the prices of goods as companies
try to recover huge amounts spent on advertising in the media. The persuasive nature of
advertisements often cause people to buy products they do not actually need. Many people have
also been lured in to dangerous habits like smoking and excessive alcohol drinking as they try to
copy the lives of the actors in advertisements. Companies who depend solely on advertising as
the medium for marketing their products can be negatively affected if consumer’s tastes and
preference changes to other brands. Moreover, many advertisements are misleading or full of
exaggeration. Consumers often find out too late that products are often below the quality of what
was advertised. The deception often employed in many advertisements informs public suspicion
of advertising as a manipulative process.
CLASSIFICATION OF ADVERTISEMENTS ACCORDING TO VARIOUS MEDIA
There are different ways to categorise advertising. The most popular will be a classification
based on the media of advertising. Let us discuss about the different forms of advertisements
found in media.
Print
This is one of the most popular forms of advertising. Print ads can have many forms -
newspapers and magazine ads, bills, wall posters, banners, calendars. As we have discussed
before, the rise of print advertising is linked to the rise of the newspaper industry. The
installation and success of the first linotype printing machine by the Statesman in Calcutta in

4. 1907 proved to be a great impetus to the industry. In a few years other newspapers too installed
this machine. Printing became cheaper, quicker and better. The first ad agency was established
around this time. Print ads can be categorized as Classified and Display ads. Classified ads
provide valuable information in a very direct and often dry manner. They contain only basic
facts. You must have read information about property markets, shares, matrimonials, detective
agencies, housing, births and deaths in the classified pages of most national dailies. Display ads
are bigger and take more space. They are often very colourful and contain attractive images.
Glossy magazines usually carry many display ads.
Electronic
Electronic ads are usually more vibrant. They can be heard on radio and seen on television. The
rise of the television industry was a great impetus to the advertising industry - so much so that
very often people find ads more interesting than television programmes. Did you know that a TV
ad is also called a commercial? It is called a commercial because the company which advertises
its product pays money to generate business through the advertisement.
New media
If you have used a cell phone, you will be familiar with different ads asking you to download
popular film songs or vote for your favourite candidate in a televison show! There is a new phase
in advertising with the coming of the internet and popularity of cell phones. Computers and cell
phones are becoming cheaper and more accessible. These are the new platforms of advertising
for the 21st century. Do you think the ads that keep popping up on websites are annoying?
Let us summarise what you have learnt about the classification of advertisements based on
different media. Look at the table given below :
DIFFERENT MEDIA OF ADVERTISING
Print Electronic Digital/ New Media
Newspaper Televison Internet websites
Handbill Radio CD and DVDs
Poster Cable Network Cell Phones
Banner (paper, cloth)
Brochure
Leaflet
Books
Magazines
Pamphlet
TYPES OF ADVERTISING
Advertisements can be categorized according to theme or content. Broadly speaking, there are
four types:

5. Product Advertising
Have you seen how small children want to drink the same soft drink as their favourite cricketer
and film star? This is the impact of product advertising and is the most common type of
advertising as it is most easily identified. A product is something produced in large numbers by
human beings, machines or by a natural process.. Products advertised therefore range from fruits
and vegetables to pickles and jams and scooters and cars. The main focus of the ad in this case is
the product and not the company or manufacturer. These ads usually have a playful approach.
They are low on information about the product but are high on style. Ads of soft drinks, shoes,
cars, cell phones and food products belong to this category.
Service Advertising
Here the focus is not on a factory manufactured item or product but a company providing a
service. This could be a bank, the railways a call centre or travel agency. The ads usually show
the company as a leading service provider in its particulars field. Let us consider the example of
the Indian Railways. In order to keep the public interested in the Railways and familiarize them
with their services, advertisements are issued from time to time. You may look for these
advertisements in the newspapers and the websites of Indian Railways. Similarly, banks are
found to advertise their saving schemes and loan facilities that they offer for buying homes and
vehicles. Can you think of other kinds of services, which are advertise?
Public Service Advertising
This is also called social service advertising or development advertising. Here the focus is on
issues that impact society on a larger scale, such as family planning, national integration, polio
eradication, and pollution control. The main purpose is to create public awareness through hard-
hitting direct messages. These ads do not sell products and services but ideas. Let us take the
example of the polio eradication campaign. Advertisements are issued through various mass
media such as newspapers, radio and television to create awareness on polio eradication. This
was to motivate parents to take their children for immunization and enable them to be given
polio drops.
Institutional Advertising
These ads are directed at creating a good public image of a company. The ads focus on the
organization’s work in areas of research, development and quality control. Often the ads
concentrate on the social work done by the company by its sponsorship of educational, cultural
and sports events. The purpose of these ads is to sell a positive image of the company rather than
a product manufactured by the company. The TATA Steel ads in the 1980s with the tag line –
‘Ispat bhi hum banate hain’ or` we also make steel’, is a good example of institutional
advertising.
Political Advertising

6. 1. Political advertising includes communications supporting or opposing a candidate for
nomination or election to either a public office or an office of a political party (including county
and precinct chairs).
2. Political advertising includes communications supporting or opposing an officeholder, a
political party, or a measure (a ballot proposition).
3. Political advertising includes communications that appear in pamphlets, circulars, fliers,
billboards or other signs, bumper stickers, or similar forms of written communication.
4. Political advertising includes communications that are published in newspapers, magazines, or
other periodicals in return for consideration.
5. Political advertising includes communications that are broadcast by radio or television in
return for consideration
The task of political advertising is a formidable one that is it reaches out to the whole country.
The campaign must have over a dozen advertisements. The mood of the people, the current
scenario all has to be taken into consideration. Although rational appeals are not rejected but
essentially there is an overdose of emotional appeal. Both negative and positive message is used.
There could be major mud slinging too.
Broadcast advertising

Covert Advertising– Advertising in Movies
Covert advertising is a unique kind of advertising in which a product or a particular brandis
incorporated in some entertainment and media channels like movies, television showsor even
sports. There is no commercial in the entertainment but the brand or the productis subtly( or
sometimes evidently) showcased in the entertainment show.
Some of the famous examples for this sort of advertising have to be the appearance of brand
Nokia which is displayed on Tom Cruise’s phone in the movie Minority Report, or the use of
Cadillac cars in the movie Matrix Reloaded
Surrogate Advertising– Advertising Indirectly
Surrogate advertising is prominently seen in cases where advertising a particular productis
banned by law. Advertisement for products like cigarettes or alcohol which areinjurious to heath
are prohibited by law in several countries and hence these companieshave to come up with
several other products that might have the same brand name andindirectly remind people.

7. Types of advertising Media or channel
A successful advertising campaign will spread the word about your products and services, attract
customers and generate sales. Whether you are trying to encourage new customers to buy an
existing product or launching a new service, there are many options to choose from.
The most suitable advertising option for your business will depend on your target audience and
what is the most cost effective way to reach as many of them as possible, as many times as
possible. The advertising option chosen should also reflect the right environment for your
product or service. For example, if you know that your target market reads a particular magazine,
you should advertise in that publication.
The following list is an introduction to advertising tactics that you could use. Remember, you
can always be creative in your advertising to get noticed (within advertising regulations).
Newspaper
Newspaper advertising can promote your business to a wide range of customers. Display
advertisements are placed throughout the paper, while classified listings are under subject
headings in a specific section.
You may find that a combination of advertising in your state/metropolitan newspaper and your
local paper gives you the best results.
Magazine
Advertising in a specialist magazine can reach your target market quickly and easily. Readers
(your potential customers) tend to read magazines at their leisure and keep them for longer,
giving your advertisement multiple chances to attract attention. Magazines generally serve
consumers (by interest group e.g. women) and trade (industry/business type e.g. hospitality).
If your products need to be displayed in colour then glossy advertisements in a magazine can be
ideal - although they are generally more expensive than newspaper advertisements.
Magazines do not usually serve a small area such as a specific town. If your target market is only
a small percentage of the circulation, then advertising may not be cost-effective.
Radio
Advertising on the radio is a great way to reach your target audience. If your target market listens
to a particular station, then regular advertising can attract new customers.

However, sound has its limitations. Listeners can find it difficult to remember what they have
heard and sometimes the impact of radio advertising is lost. The best way to overcome this is to

8. repeat your message regularly - which increases your costs significantly. If you cannot afford to
play your advertisement regularly, you may find that radio advertising does not generate strong
results.
Television
Television has an extensive reach and advertising this way is ideal if you cater to a large market
in a large area. Television advertisements have the advantage of sight, sound, movement and
colour to persuade a customer to buy from you. They are particularly useful if you need to
demonstrate how your product or service works.
Producing a television advertisement and then buying an advertising slot is generally expensive.
Advertising is sold in units (e.g. 20, 30, 60 seconds) and costs vary according to:
the time slot
the television program
whether it is metro or regional
if you want to buy spots on multiple networks.
Directories
Directories list businesses by name or category (e.g. Yellow Pages phone directories). Customers
who refer to directories have often already made up their mind to buy - they just need to decide
who to buy from.
The major advantage of online directories over print directories is that if you change your
business name, address or telephone number, you can easily keep it up to date in the directory.
You can also add new services or information about your business.
If your target market uses print and online directories, it may be useful to advertise in both,
although print directories are being used less.
Outdoor and transit
There are many ways to advertise outside and on-the-go. Outdoor billboards can be signs by the
road or hoardings at sport stadiums. Transit advertising can be posters on buses, taxis and
bicycles. Large billboards can get your message across with a big impact. If the same customers
pass your billboard every day as they travel to work, you are likely to be the first business they
think of when they want to buy a product.

9. Even the largest of billboards usually contain a limited amount of information; otherwise, they
can be difficult to read. Including your website address makes it easy for customers to follow up
and find out more about your business. Outdoor advertising can be very expensive especially for
prime locations and supersite billboards.
Direct mail, catalogues and leaflets
Direct mail means writing to customers directly. The more precise your mailing list or
distribution area, the more of your target market you will reach. A direct mail approach is more
personal, as you can select your audience and plan the timing to suit your business. A cost
effective form of direct mail is to send your newsletters or flyers electronically to an email
database. Find out more about direct mail.
Catalogues, brochures and leaflets can also be distributed to your target area. Including a
brochure with your direct mail is a great way to give an interested customer more information
about your products and services. Learn more about leaflet marketing using letterbox drops and
handouts.
Online
Being on the internet can be a cost-effective way to attract new customers. You can reach a
global audience at a low cost. Many customers research businesses online before deciding whom
to buy from.
A well-designed website can entice customers to buy from you. There are a number of ways you
can promote your business online via paid advertising or to improve your search engine
rankings. Learn more about doing business online.
Other ways to advertise your business online include promoting your products or services on
social media sites, blogs and search engines and other websites that your target audience visits.
Find out more about social media.
Planning your advertising
When planning your advertising, you need to consider:
 the objective of the campaign (your goals)
 how much to spend (your budget)
 who to target (your audience)
 the type of advertising you'll use (your strategy)
 when you will advertise (your calendar or schedule of activity)
 how to monitor your success (your results).

10. These elements are a key part of your marketing plan. You should regularly review your marketing plan to
ensure that your advertising strategies are helping you to achieve your marketing goals.
Set clear goals
It's important to set clear goals when considering advertising, just as in any other part of your business.
What measurable results do you want to achieve in the market this year, and in the longer term?
Targeting your advertising will make it easier for you to decide how and where to advertise. You may
want to increase the sales of a particular product, make your customers aware of a new service, or attract
regular customers away from your competitors.
For example, a men's clothing store may have as its main goal: To create awareness of our new range of
imported suits for businessmen aged 20-29, in the first 3 months of the year.
This goal identifies what is to be advertised, to whom, and when. Knowing what you are trying to achieve
is essential when planning your advertising.
Set your budget
When deciding how much to spend on advertising, consider your costs and cash flowas well as your
goals. While spending too much on advertising is risky, spending too little can also cause problems. If
your advertising is not professional or frequent enough to generate results, competing with other
businesses may be difficult. Sometimes you need to see advertising as an investment in your business to
build awareness over the longer term.
Knowing how much other businesses spend on advertising can be invaluable when setting your
budget. Benchmarking is the best way to compare your business with other similar-sized businesses in
the same industry.
Research your competitors and customers
Where do your competitors advertise? What do they say about themselves? How do they position their
business? You may decide to follow their strategy, or do something completely different. Either way, it's
important that you know how your competitors advertise their products or services.
Market research involves finding out as much as you can about your competitors and customers. You
may find that your target market reads a particular magazine, and your competitors advertise in every
issue. If so, it might be a good strategy for you to advertise in this publication as well. You may find out
that your customers are in need of a particular service which you could easily establish and offer as a
competitive advantage.
Research the numbers
In most cases, the more people who read a newspaper, watch a television show or drive past a billboard
each day, the more expensive it is to advertise. However, this also means that more potential customers
will see your products and services.
When comparing readership figures, television ratings or the average number of cars that drive past a
billboard each day, always check that the numbers have been verified by a reputable independent body.

11. When researching your advertising options, ask sales staff for a rate card. This will list the circulation (the
number of copies distributed) or readership figures, as well as the cost of placing advertisements.
For example, display advertisements in newspapers are often sold by the number of columns across and
the number of centimetres down the page, while classifieds are usually sold by the line. You may be able
to get a discount if you book multiple advertisements at the same time.
Choose your strategy
Every type of advertising has advantages and disadvantages. For example, print advertising can cost
more than its online equivalent. However, a carefully targeted leaflet through a door may have more
impact than an advertisement on the internet, where competition for customers' attention is high.
The type of advertising you choose will depend on the target audience you are trying to reach and your
budget and by determining the most cost-effective way to reach your audience as many times as
possible.
Ask the professionals for help
In the same way that you would regularly seek help from your accountant or solicitor, it is wise to ask for
help when planning your advertising. If you want professionals to handle your advertising campaign from
start to finish, ask your business adviser or networking contacts to recommend advertising agencies.
Make sure to thoroughly research agencies to find the one with the skills and fees to suit your goals and
budget.
Develop an action plan
Developing an action plan and a timetable will give you plenty of time to meet advertising deadlines.
Many advertisers are very strict with bookings and often work months ahead (e.g. to advertise in the April
issue of a magazine you may have to supply artwork in January).
Make sure you give yourself enough time to create effective advertising for occasions such as Christmas,
Easter, Mother's Day and other seasonal events.