21. Advertizing

Advertising is a paid, non-personal sales communication directed at a large number of potential buyers. For many firms, it is the most effective type of non-personal promotion.

The two basic types of advertising are product and institutional. Product advertising involves selling a good or service. Institutional advertising involves promoting a concept, idea, or philosophy, or the goodwill of an industry, company, organization, of government entity; a form of institutional advertising that is growing in importance, advocacy advertising, supports a specific viewpoint on a public issue. Its purpose is to influence public opinion and the legislative process. Both nonprofit organization and businesses use advocacy advertising.

Both product and institutional advertising can be subdivided into three categories according to the purpose: to inform, persuade, or remind. Informative advertising, intended to build initial demand for a product, is used in the introductory phase of the product life cycle. Persuasive advertising attempts to improve the competitive status of a product, institution or concept. It is used in the growth and maturity stages of the product life cycle. Reminder-oriented advertising, often used in the late maturity or decline stages of the product life cycle, tries to remind people of the importance and usefulness of a product, concept, or institution.

All marketers face the question of how to best allocate their advertising budget.

Newspapers are the largest of the advertising media. Because newspaper advertising can be tailored for individual communities, local advertising is common. Other advantages are that readers can refer back to them. A disadvantage is the relatively short life span.

Television advertising can be classified as a network, national, local, and cable. TV has the advantage of a significant impact on potential customers. Mass coverage, repetition, flexibility, and prestige are other advantages. The disadvantages of television as an advertising medium include high cost, the temporary nature of the message, some public distrust.

Direct mail is another form of advertising media.

Its advantages include selectivity, intense coverage, speed, flexibility, complete information. On the negative side, direct mail is very expensive.

Radio is another important broadcast advertising medium. It can be classified as network, spot and local advertising. Advantages of radio are its immediacy, low cost, targeted audience selection, flexibility and mobility. Disadvantages include the short life span of a message and a highly fragmented audience.

Magazines are also used in advertising. Advantages of magazines include selectivity, quality reproduction, long life and prestige. But they lack the flexibility of newspapers and broadcast media.

Outdoor advertising, such as billboards, is one more advertising medium. It communicates simple ideas quickly. Other advantages are repetition and the ability to promote goods and services available for sale nearby. There are disadvantages, however. The medium requires that messages should be brief, and there isn’t much time to make a point.

There are lots of other options that companies can use to advertise products: public transportation, movie theatres, special advertising conferences may be held for advertising purposes.

Comprehension:

1. What is the purpose of advertising?

2. How can goods be advertised?

3. Characterize each type of advertising.

4. What are the advantages and disadvantages of each type of advertising?