TOPIC 8: ADVERTISING

8.1 WHAT IS ADVERTISING?[a] Advertising is a means to tell the people (the public) about a certain product or a service in order to increase sales.[b] It is used by firms to make other firms and consumers more aware of their products and services.

82. FUNCTIONS/PURPOSES OF ADVERTISING To inform : To give information about certain goods or services available

in the market, especially new products or services, to the consumers.

To persuade : To influence (persuade) and convince the consumers to buy. Good name : To establish a good name for certain brands of product. Higher sales : To increase the sales of a product. Social habits : To influence consumers social habits to use a certain brand of product only. To remind:

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To remind consumers of existing products: that the product may be needed in the near future and where the product can be bought.

8.3 TYPES OF ADVERTISING

[a] Informative advertising

It is designed to give information which could be of benefit to firms or the public.

For example information about the availability of new shampoo in BODY SHOP and information about new postal charges available in the post office.

It aims to create a demand for a product.

[b] Persuasive advertising

It is designed to persuade the public to buy a particular good or service.

For example. an advertisement about new cookies. It induces the public to buy the advertised cookies in preference to other cookies in the market.

It is aimed mainly at consumers when firms are trying to increase sales. This advertising is helped by the use of brand names.

8.4 MEDIA OF ADVERTISING USED BY RETAILERS

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SMALL-SCALE RETAILERS1. By shouting loudly2. By hitting an instrument:

ringing a bell, hitting a drum

3. By pressing a horn4. By whistling

LARGE-SCLAE RETAILERS1. Press: newspapers, magazines2. Posters3. Handbills/Circulation4. Radio5. Television6. Cinema7. Neon lights8. Free samples/Pamplets9. Direct mail10. Windows display and

exhibitions.11. Travelling salesman12. The internet

ADVERTISING MEDIA

1. PRESS ADVERTISEMENT The examples are like the newspapers, trade journals and

magazines. They are very popular as they reach a wide area and seen by

large group of people.

Types of Press advertisementA. NEWSPAPERS

There are 3 types or ways to advertise in the newspaper:-i. Classified advertisementii. Column advertisementiii. Page advertisement

i. Classified Advertisement The cheapest type of newspaper advertisement. The advertisement only required a small space in the newspaper. Examples of classified advert are job vacancies, house for sale,

vehicle for sale, tuition, repairs and maintenance services, etc. The cost of classified advertisement depends on the number of

words and is subject to a minimum charge.

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ii. Column Advertisement Column advertisement occupies one or more columns. The examples of advertisement are the same as in the classified advertisement. The cost of a column advertisement depends on the:

i. Size of the space used.ii. Position - top left hand corner, bottom, center, etc.iii. Page – column advertisement situated at the front and back pages are more expensive.

iii. Page Advertisement Page advertisement occupies one or more pages of the press. When more number of pages is required for an advertisement, a

supplement (additional pages) will be printed and the cost will be much more expensive.

B. TRADE JOURNALS and MAGAZINES These are published either twice a week,

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Advantages1. It reaches many people.2. It is cheap.3. It allows high degree of flexibility and timeliness.4. Message can be varied, cancelled or inserted at short notice.

Disadvantages1. It has short life span.2. It reaches only the literate.3. It takes time to find the desired advertisement.4. Its paper quality is low.

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weekly, fortnightly, once a month, etc. Limited circulation but reaches a ‘selected’ audience. Mostly the advertisement is colourful. Example: Jewellery traders or beauty products dealers will usually advertise their products in magazines like the ‘Wanita’ or ‘Her World’ because most readers are women.

2. POSTERS AND BOARDINGS It is designed very attractively and contains a clear, short and simple message. It is found on walls, billboards, commercial vehicles, lobbies of cinema halls, etc. The huge billboards or posters erected along highways are called boardings.

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Advantages1. Its paper quality is better.2. It has a longer life span.3. It reaches the targeted people more

easily.4. There is less wasteful in circulations.5. It is useful for long messages to be

Advantages1. There is an impact of large size and colour.2. There is good degree of flexibility.3. There is high repeat exposure.4. It is a low cost medium.5. The message can reach a

Disadvantages1. There is no audience

selectivity.2. There is limitation in

creativity.3. No audio-kinetic impact.4. It is open to vandalism.

Disadvantages1. There is a limited readership.2. It is published only

periodically.3. It is inflexible as

advertisement must be

3. HANDBILLS/ CIRCULATIONS It is a small poster or leaflet, which is usually distributed by hand. It can be an effective medium but is very labour intensive. It gives more information than posters Examples of handbills are like:

Distributed by cinema to give brief summary of the films now showing or coming soon.Distributed by large-scale retailing giving details about new stock, ‘cheap sale’ or ‘clearance sale’.Distributed by institution of learning giving details about courses and tuition offered.

4. RADIO It is expensive, but most effective method because it reaches a

large number of people. Advertising is in the form of an audible announcement, a catchy

song or both.

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Advantages1. Limited coverage within the local market.2. Personal impact can be demonstrated.3. Explanation can be given

Disadvantages1. Wasteful circulation as may be given to those not interested.2. Limited circulation as it is a door to door handing of

5. TELEVISION It is very expensive, but most effective method as it reaches

many people. It is very popular as it can show to the public through sound and

vision to show the following benefit:i. Usefulness of the productii. Quality of the productiii. How it is used or operated

The cost or charge of advertising through TV depends on the following:

i. . the length of the advertisement exhibited ii. number of times the advertisement appearediv. the duration of the advertisement (time of the day)

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Advantages1. It can reach a large number of people.2. It is cheaper to produce and transmit.3. The use of sounds makes advertising more lively.

Disadvantages1. There is a lack of visual elements.2. Its life span is very short.3. Audience may become irritated by the constant interruptions to music.

Advantages1. It has the ability to stimulate customers.2. It can reach a large number of viewers.3. Advertisements can be repeated.4. It can create a high

Disadvantages1. It is not suitable for detailed information.2. It is costly for small target viewers.3. It is costly to produce.4. It has a short life span.5. There is less viewer

6. CINEMA It is a movie house. The cost is relatively cheaper than television.

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Advantages1. It creates high audience attention.2. It gives extra scope for more dramatic and realistic impact.3. It can make full use of the audio

Disadvantages1. It has limited coverage.2. It is not interactive as the viewer cannot respond immediately.3. It has a short life span.

7. SAMPLES and PAMPLETS It is distributed free to customers for them to examine and use the

product to convince them of its quality. Edible products such as sweets and drinks, or non-edible products

like soap and medicine, or to introduce new product can be best advertise through giving free samples.

8. DIRECT MAIL ADVERTISING It is advertising by sending personal letters, catalogues, leaflets,

and circulars to potential buyers is called direct mail advertising. Mail order businesses use direct mail advertising to advertise

their products or services. Direct mail advertisements normally encourage people to buy or

subscribe to their products by offering special discounts and free gifts.

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Advantages1. There is intensity of market coverage within a certain area.2. It creates a high personal impact.3. Advice and explanation can be given

Disadvantages1. Wasteful circulation as it may given to those not interested2. There is limited circulation as they

Advantages1. Audience selectivity is high.2. Flexibility can be exercised.3. There is no competition with the same medium.4. Wasteful circulation is kept to a

Disadvantages1. It is limited only to the literate.2. It is limited to the mailing list the firm can secure.3. The cost is relatively high.

9. WINDOW DISPLAY AND EXHIBITIONS Window display is displaying goods in front of the window shop for the purpose of passer by to view. Exhibition involves displaying goods at trade fairs, trade exhibitions and other kinds of fairs.

10. NEON LIGHTS It is a colourful advertising lights which are formed into letters,

symbols and figures. It is an attractive advertisement especially at night. It can been seen from a distance.

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Advantages1. It is attractive.2. It allows people to see the goods directly.3. It allows people to see the

Disadvantages1. It can reach only shoppers and exhibition visitors.2. The frequency of holding an exhibition is not

Advantages1.There is an impact of large size and colour.2. The usage is flexible.3. There is high repeat exposure.4. It is a low cost medium.5. The message can reach a large number of people.6. There is low competition.

Disadvantages1. There is no audience selectivity.2. There is limitation in creativity.3. No audio-kinetic impact.

11. TRAVELLING SALESMAN They go from door to door retailing household goods and promoting

special products.

12. THE INTERNET It is an interactive medium which enables firms or retailers to

advertise their products or services through the use of computers connected with internet lines.

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Advantages1. It brings the goods to the house of consumers.2. The usage of the goods can be explained and demonstrated.

Disadvantages 1. Limited coverage only to the local people.2. They may not be welcome in by home owners.3. High cost of employing sales personnel.

Advantages1. The user can key in input and obtain response immediately.2. It allows the use of multi-media to create realism in advertisement.3. It allows advertiser to create own home page.4. It has longer life span.

Disadvantages1. The coverage is limited only to those who surf the internet.2. The advertising message has to compete with many other

13. SKYWRITING It is a method of advertising which use an aeroplane to ‘write’ words

in the sky.

8.5 FACTORS AFFECTING THE CHOICE OF MEDIA[a] Nature of the product or service The medium chosen must fit the product or service to be

advertised.

[b] Target market The medium chosen must fit the target group of people who will

likely buy the product or service.

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[c] Extent of market: Local, national, international The national newspaper is appropriate if wide coverage is needed

for a certain advertisement. The local newspaper will be useful for the local market for example selling used car or renting a room or a house. The television will be useful for reaching the international market through live telecast on any special events or programmes.

[d] Cost of advertisement The cost of the medium should be considered in relation to the

budget or the amount of funds available and the circulation of the medium.

[e] Flexibility of the advertisement It refers to the ease with which the advertiser can change the

advertisement so as to adapt to different conditions and circumstances.

[f] Noise level of the advertisement It refers to the level of distraction for the targeted audience. For

example, the noise level for an advertisement in the newspaper is great as it distract the reader’s attention.

[g] Lifespan of the advertisement It refers to the length of time an advertisement will be on display.

For example, a radio or television commercial has short lifespan since it will only last for a few seconds.

8.6 ADVANTAGES AND DISADVANTAGES OF ADVERTISING A. To the buyers

ADVANTAGES DISADVANTAGES

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1. They are informed of new products in the market.2. They can get the goods and services at lower prices and better quality due to competition among the producers. 3. They can buy goods at a cheaper rate due to lower cost of production.4. They do not have to pay for goods given to them free as samples.

1. They may be tempted to buy goods or pay services which are not necessary to them.2. They may be so brain-washed into brand consciousness.3. They may misled by advertisement which do not tell the whole truth.4. They may have to pay the extra cost of the advertisement passed on by the producers.

B. To the sellersADVANTAGES DISADVANTAGES

1. It helps to increase sales and thus profit.2. It helps to create demand resulting in increased production and lower cost of production.3. It helps to command loyalty from the consumers.

1. They may break the law without knowing it.2. Some advertisement may offend the public, and turn consumers against the sellers.3. A badly planned advertisement may become an expense to sellers.4. They can be sued if their claims regarding quality are proved to be false.5. A well-advertised brand may cause others to sell imitation goods under the same brand name.

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