MKT621 Official Handouts

Lesson 1

This course is designed to teach and guide the students to know and learn about Advertising and Promotion. In this course we will try to acquaint you with various aspects and applications and requirements. Besides teaching you about the introduction and history of advertising this will also guide students about its growing importance, definition and various aspects. The major components to learn will be its skills in modern world, the overall importance and significance of its practice in different scenarios. After going through the contents of first lecture, students will be able to know about Advertising and promotion with its growing importance and its definition with different segments: A. Introduction to Advertising and Promotion. B. Its growing importance. C. D. Explanation of Personal and non-personal selling.

This lecture introduces the students with the background, definition, and growing importance in the modern world. During this we will be discussing the above mentioned aspects of Advertising. We will also briefly try and explain the difference between personal and nonpersonal selling and related advantages and disadvantages.

INTRODUCTION

In fact today advertising is every where, on radio, TV, newspapers, billboards, magazines and even on the side of the town buses. The global market has expanded tremendously, and manifolds. Advertising serves three main purposes: 1. To get or win new customers. 2. To increase use of products or services among existing customers. 3. To help potential customers make a choice among competing brands. Advertising has great influence on us whether we are aware of it or not. Let us now first of all try to know about its growing importance:

GROWING IMPORTANCE OF ADVERTISING

We see 100’s of ads. Every day. Consciously or subconsciously advertisements have tremendous effect. Advertising can not only change buying decision but also changes mindset & attitude of people. Advertising reflects the culture of a nation. Advertising & culture both affect each other. Advertising industry also supports media industry. In fact media survives on advertising because they go hand in hand. Advertising can be used as an effective tool for a social cause. Advertisement also help in spreading information about new technology & innovations Advertising in today’s world is not for spreading brand awareness but also shows us where we stand in the world today. Now a days, Advertising has assumed important role in this very fast developing and competitive world. In order to understand it first we have to know what it means or in other words to know its definition. But before we define we must know i.e. six segments of the

Six Segments

1. It is paid form of communication. 2. The Sponsor is identified. 3. Most advertising tries to persuade or influence consumer to do. Something though in some cases it is merely to make consumers aware of product or company. 4. Message is conveyed through different types of media. 5. Advertising makes message reach large audience of potential consumers. 6. Advertising is a form of mass communication therefore it is nonpersonal. Based on the above the most accepted standard definition universally accepted is as described by Bovee in 1992. It said: “Advertising is the non - personal communication of information usually persuasive in nature about products, services or ideas by identified sponsors through the various media” Let us now try to DISECT & EXPLAIN key terms PERSONAL and NON – PERSONAL used in the definition of advertising. ¾

There are two basic ways to sell

Personally & Non-Personally

Personal selling – Where seller & buyer has to be together. Non – Personal - Seller is approached through a medium i.e. advertising.

Advantages of Non-Personal Selling:

Seller has time to discuss everything about the product. Buyer has time to ask questions, get answers & examine evidence against or for the product. Seller can see the person whom product is being sold. Seller can see the person to whom he/she is selling the product. Seller can easily locate potential buyers.

Disadvantages:

It is expensive being labor intensive. Time consuming. So seems personal selling is better than advertising which is non-personal yet advertising still remains most effective. Therefore despite the fact that advertising even though is non-personal selling, it is certainly effective.

Lesson 2

In this lecture we will study the reasons and advantages of advertising and its objectives. We will also discuss various segments of advertising and different aspects of definition besides briefly relating to its history.

WHY TO ADVERTISE?

ADVANTAGES

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

Now therefore we must further analyze in depth about the definition of advertising besides understanding personal selling and Non personal as explained before in the last lecture. Continuing with the standard definition let us take up one by one important components as underlined below:

So, just to review the definition

“Advertising is the non - personal communication of information usually persuasive in nature about products, services or ideas by identified sponsors through the various media.”

(Bovee 1992)

Communication

Means through which one person can pass information, ideas or feelings to another through speech or pictures. 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”

Information

Information is knowledge, fact or news. It comes in different forms: Complete or Incomplete! Biased or deceptive! What it is? What it looks like? How it works? What are its benefits &drawbacks etc?

Paid For

If an advertisement is created, placed in the media so the cost to create and time or space in the media must be paid for. This is the point, where advertising departs from Public Relations.

Persuasive

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