Advertising : Types, Features and Importance

Introduction

In simplest terms, an advertisement is a marketing strategy that involves paying for advertising space in order to market a product, service, or cause. The word advertising comes from a laying words “advertere” which means “to turn one’s attention to”

The American Marketing Association defines advertising as “ any paid form of nonpersonal presentation of ideas, goods and services”. Now, advertising also includes personal presentation of ideas due to the changing dynamics of businesses.

Ads, as it is commonly known, are the real advertising messaging. The purpose of Advertising is to contact those who are most likely to be ready to pay for a company’s goods or services and persuade them to buy. To put it another way, advertising is the process of bringing attention to a product or service through paid announcements made by a designated sponsor.

Types of Advertising

According to their level of penetration, advertising efforts can be divided into above-the-line (ATL), below-the-line (BTL), and through-the-line categories.

Activities that are primarily non-targeted and have a big audience are included in above-the-line advertising. Newspaper, radio, and television advertisements are all examples of above-the-line advertising.

Below-the-line advertising consists of conversion-oriented campaigns that are targeted to a particular audience. Billboards, sponsorships, in-store advertisements, etc. are a few examples of below-the-line advertising.

The term “through-the-line advertising” refers to campaigns that combine ATL and BTL tactics. They employ customized (personalized) advertising methods that are geared towards brand development and conversions. The use of cookie-based advertising and other digital marketing techniques are examples of through-the-line advertising.

Features of Advertising

The following points describe the various features of advertising. They are as follows;

Art, Science and Profession

Advertising is a form of art, science and a profession. It is an art form as it requires creative involvement. It is a science form because it has a body of  organized knowledge. Advertising is a profession as it has a formation, purpose and a code of conduct.

Element of Marketing Mix

Advertising is one of the components of marketing. It is a part of the promotional mix and advertising leads to awareness and sales generation. Due to its significance in marketing, businesses invest a good amount in advertising.

Profit Maximization

The ultimate aim of any marketing strategy is to directly influence the sales factor or to influence the consumer which later leads to revenue generation. No matter the objective, the ultimate aim is to generate profit. Advertising generates the profit by promoting the sales.

Communication

Advertising serves the purpose of mass communication. When a company advertises, it is addressing the masses. Through advertisement, businesses communicate their product, service or cause to their target audience.

Paid form or sponsored

The advertiser, often known as the sponsor, must pay to develop an ad message, purchase a media slot, and track advertising activities. The advertiser pays for the advertising and all the costs incurred.

Elements of Creativity

Prepping an advertising involves a series of creative assessments. From imagination to execution, advertising involves a lot of creativity. The correct execution of all the due process in advertising leads to successful advertising campaigns.

Personal or Non-personal

Advertising can be non-personal, such as with TV, radio, or newspaper ads. Advertising targets the masses rather than individuals. Where extremely impersonal advertising is with social media and other cookie-based ads.

Objectives of Advertising

Advertising has three major goals: to inform consumers about the brand or product, to persuade them to make a purchase or carry out a task, and to recall and reinforce the brand’s message. The following are the objectives of advertising:

Inform Consumers about Brand or Products

Ads broadens the brand recognition and visibility in the target market. The initial stage in achieving corporate objectives is educating prospective clients about the company and its offerings.

Persuade Customers to Make a Purchase or Carry Out a Task

Advertising’s main goal is to persuade consumers to carry out a specific task. The tasks could include purchasing or using the given goods and services, creating a brand image, adopting a positive brand attitude, etc.

Reinforcing Brand’s Message

Reinforcing the brand message and assuring current and future customers of the brand’s vision are two additional goals of advertising. Advertising aids in keeping the brand at the forefront of consumers’ minds and guards against customers being stolen by rival brands. This aids in word-of-mouth advertising as well.

These three goals are divided into further advertising goals. Building a brand, boosting sales, creating demand, engagement, growing a customer base, modifying consumer attitudes, etc. are some of these subsets. Some of other objectives of advertising are:

  • To create awareness among the prospective customers.
  • To reach out to people or customers inaccessible by salesmen or any other personal selling techniques.
  • Advertising enhances the goodwill of the enterprising by confirming better quality products or services.
  • Advertising is the primary stage to building a brand.
  • To differentiate the products and services and create value around the business.

ADVERTISEMENT AND SALES MANAGEMENT MCQ

Importance of Advertising

Advertising is an important technique to promote any business. However, the level of importance might differ based on the stakeholders involved in the business. The importance of advertising as per these stakeholders are :

Importance to Customers

  • Convenience
    Customers’ decision-making is facilitated by targeted, educational advertising since they learn what best meets their needs and budget. Customers know about the product and where and how it can be accessed.
  • Awareness
    Advertising informs consumers about the many goods on the market and their attributes. Customers can compare items using this information to select the one that is best for them.
  • Better Quality
    Only brands promote their own identities and goods. There are no commercials for generic goods. Because no firm wants to squander money on deceptive advertising, doing this guarantees higher customer quality and a sound business strategy.

Importance to Businesses

  • Awareness
    Advertising raises product and brand awareness among those in the target market.
  • Brand Image
    In order to establish the right brand personality and image in the minds of the consumers, a company must use clever and effective advertising.
  • Product Differentiation
    Advertising enables a company to distinguish its product from those of rivals and to explain to the target market its benefits and qualities.
  • Increase Goodwill
    The purpose of advertising is to reaffirm the brand’s mission and to win over new customers.
  • Value for Money
    When compared to other components of the promotion mix, advertising tends to be more cost-effective and spreads the message to a large audience. This proves that advertising provides value for money invested.
  • Product Launch

Advertising helps during the introduction of new products in the marketing. Advertising is crucial as it lets customers know about the product. 

Role of Advertising in the Marketing Mix

The four key marketing components that make up the marketing mix are product, pricing, promotion, and place. There are additional factors, such as Pricing, Package, Position, and Pace, in addition to the standard 4 Ps. Promotion includes the element of advertising. 

The points below discuss further about the role of advertising in the marketing mix. They are as follows;

Product and Advertising

A product often consists of a number of physical components, including quality, form, size, color, and other characteristics. The item could be of very high caliber. Sometimes the product’s design necessitates careful handling and use. The numerous features of the product must be explained to and understood by the purchasers. Advertising is an efficient way to achieve this. Advertising serves as both a tool for education and information.

Pricing and Advertising

The product’s exchange value is reflected in the price. A marketer might release a product of exceptional quality with more features than rivals. Advertising has the power to persuade consumers of a brand’s excellence and, consequently, it’s worth.

Placement and Advertising

Placement describes the actual distribution of the goods and the retail locations where they are sold. Advertising is crucial for enabling efficient market expansion and distribution. Advertising hence aids in efficient distribution and market growth.

Promotion and Advertising

Advertising, publicity, personal selling, and sales promotion techniques all fall under the category of promotion. Advertising may play a big part in advancing a seller’s claim and rebutting a competitor’s claim, as well as helping to build a brand’s reputation and fan base.

Pace and Advertising

Pace is the speed at which marketing choices and activities are taken. Among other things, it means launching new items or brand variations more quickly than before. When new brands are introduced, advertising is crucial in educating, enlightening, and convincing consumers to purchase the brand’s goods.

Packaging and Advertising

The primary goals of packaging are the preservation of the product’s quality and quantity while it is in transportation. These days, marketers put a lot of work into creating and designing eye-catching packages since they have advertising value. Also, it conveys a guarantee of quality and inspires clients’ trust to purchase the product.

Market Positioning and Advertising

Product positioning seeks to forge and preserve for consumers a distinct perception of the brands. By advertising, the marketer can communicate the brand’s positioning and, as a result, affect the target market’s purchasing behavior.

Leave a Comment