Download Why Advertise and The History of Advertising

Why Advertise and The
History of Advertising
Mr. Moore
Speech Communications I
Objective
• Students will understand the reasons and
advantages of advertising and its objectives.
Why Advertise?
• 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.
• Advertising is better as a sales tool and though it
is non-personal yet is more effective.
Human Senses and Advertising
• 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.”
Advertising & Persuasion
• Purpose of advertisement is to identify and
differentiate one product from another and to
persuade the customer for preferring one to
another.
Products, Services, and Ideas
• Things advertiser wants consumers to buy.
There are three basic differentiations in products
– 1. Perceptible – Obviously different from other-like
color, size, shape etc.
– 2. Imperceptible – Those which exist but are not
too obvious.
– 3. Induced. – No obvious difference but inform
people about the difference
History of Advertising
• 1704 1st newspaper ad, seeking buyer for an Oyster Bay
was published.
• 1843 1st Ad. Agency set up in Philadelphia
• 1882 Advertising of a soap brand was done with a huge
budget of 11000 US$.
• 1893 A famous beverage brand was registered as a trade
mark.
• 1899 J. Walters: 1st agency opens an office in U.K.
• 1923 1st entertainment program was sponsored by an
advertiser.
• 1947 J .Walter Thompson 1st agency to cross 100Mil $
in billing.
History of Advertising cont.
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1976 Indian commercial TV launched.
1978 1st TV commercial is launched.
1990 A new Medium Internet is born.
1993 5 million internet users get on line.
1999 Internet advertising breaks 2 Billion US$ mark.
2003 TV show with built in advertising is planned.
Why Promotion is Important?
• Since businesses must continually promote their
organizations, products and policies to gain
customer acceptance, you will need to learn
successful promotional strategies.
What is the Promotional Mix?
• The promotional mix is a combination of the
different types of promotion. There are four
basic types of promotion:
1. Advertising
2. Publicity/Public Relations
3. Personal Sales
4. Sales Promotion
• Advertising is any paid form of non-personal
promotion of ideas, goods or services.
Advertising can be found anywhere from
magazines, TV and internet to anything that is
ONE-WAY communication.
• Public relations - The method or activities of
establishing and promoting a favorable relationship
with the public.
• Publicity is part of public relations and involves
placing newsworthy information about a business,
product or policy in the media.
• It’s mostly free.
• Personal sales are when
individuals make contact with
potential buyers face-to-face
to promote their business,
products or policies.
• Sales promotion represents
all marketing activities other
than the three already
mentioned, like:
– Contests
– Fashion shows
– Coupons
• Used to stimulate consumer
purchase immediately
Factors Affecting the Promotional
Mix
• Factors affecting the promotional mix:
–Technology
–Economy
–Market
–Distribution
• Match the examples below to one of the 4
strategies in the promotional mix: (advertising,
publicity, personal sales, sales promotion)
1. TV Commercial
5. contest
2. Insurance sales
6. Fashion Show
3. News release
7. Magazine Ad
4. Coupon
7. Home Tupperware
Party
Advertising
Advantages
Disadvantages
Allows large number of people to see Can’t focus on individual needs
the advertised message
Can be controlled
Can be too expensive for many
businesses
Can have repeat viewers
Can be inefficient (short coverage of
billboards & magazines)
Can pre-sale products before
customers go shopping
Public Relation/Publicity
Advantages
Disadvantages
save a business money by extending
it’s advertising budget
May not be accurate or presented in
the way or time that will reach the
right audience
Can increase a business’ profit and
exposure
Can be negative or harmful to the
business
Lack of control of content
Personal Sales
Advantages
Disadvantages
Personalized to individual customers
Most expensive form/per sale
Largest form of promotion
Has slower distribution/coverage
compared to advertising
Easier for personal sales to focus on
target market and complete the sale
Sales Promotions
Advantages
Disadvantages
Variety of activities
Short term incentives
Includes many different marketing
activities to stimulate consumer
interest including business to
business promotions
Can be controlled