Philip Kotler defines advertising as “any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor”.
In today’s challenging market scenario, business in order to thrive need to promote their products and service in an effective manner. Advertising as a means of promotion can be effective in reaching geographically dispersed buyers. It can trigger the sales of products and services or create a positive brand image.
Characteristics of Advertising:
Advertising in pervasive in nature. It allows the seller to promote its message several times and compare it with the messages of other competitors. Seller’s size and power can be deduced by the scale of advertising program.
Advertising provides ample prospects for amplified expressiveness of products and services by dramatizing its benefits, utility, etc. through the use of audio-visual aids.
Advertising is impersonal in nature i.e. it is a monologue which does not require audience’s response.
An Advertising program is developed keeping in mind the 5M’s of advertising, namely, Mission, Money, Message, Media and Measurement. Mission outlines the goals and objectives of the advertising program such as the sales target it seeks to achieve.
Money is an important consideration in preparing a budget according to the stage in product life-cycle, market share, competition and clutter, advertising frequency and product substitutability.
Message includes the generation, evaluation, selection, execution and response of the advertising program. Media decides the type of media to be selected based on the reach, frequency and impact of the media. Measurement signifies the impact of communication on sales volume.
Means of Advertising can be television ads which combine the advantages of sight and sound to deliver messages that catch the attention of the audience. Print ads offer the benefit of mass coverage and usually at comparatively lesser prices than television ads. Radio Ads are inexpensive and cater to number of audience.
Benefits of Advertising:
The expenditure on advertising is considered as an investment for the business as it seeks to increase the profit of the business. Furthermore it helps in the retention of loyal customers and recruitment to new customers.
By increasing the sales of the product, advertising in turn reduces per unit cost. It is also helpful in promotion of products that do not sell easily. It offers social benefits too such as increase in employment opportunities, improving the standard of living of people, etc.
Advertising is one of the most important tools of marketing and if used effectively, it can deliver favorable results.