seminar adv[1].1

8/7/2019 seminar adv[1].1

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ASeminar Report

OnEFFECT OF ADVERTISEMENT

ON BUSINESS ORGANISATION

Submitted toSubmitted by

Mrs. SarikaYogesh DangiFACULTY OF MBA MBA ISEM.MAIMT, Jagadhri RollNo. 756


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INDEX Introduction Advertising Aspects of Advertising Methods of Advertising Best Method of Advertising Effects of advertising Advantage of advertising Various Objections Demerits/Disadvantages Negative Effects Conclusion

Reference


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ADVERTISING

Advertising is a form of communication whose purpose is toinform potential customers about products and services andhow to obtain and use them. Many advertisements are alsodesigned to generate increased consumption of thoseproducts and services through the creation andreinforcement of brand image and brand loyalty. For thesepurposes advertisements often contain both factualinformation and persuasive messages. Every major mediumis used to deliver these messages, including: television,radio, movies, magazines, newspapers, video games, theInternet, and billboards. Advertising is often placed by anadvertising agency on behalf of a company.Advertisements can also be seen on the seats of grocerycarts, on the walls of an airport walkway, on the sides of buses, heard in telephone hold messages and in-store public

address systems.Advertisements are usually placed anywhere an audiencecan easily and/or frequently access visuals and/or audio andprintOrganizations which frequently spend large sums of moneyon advertising but do not strictly sell a product or service tothe general public include: political parties, interest groups,religion supporting organizations, and militaries looking fornew recruits.Additionally, some non-profit organizations are not typicaladvertising clients and rely upon free channels, such aspublic service announcements.

Advertising spending has increaseddramatically in recent years. In the United States alone in2006, spending on advertising reached $155 billion, reportedTNS Media Intelligence. That same year, according to a


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report titled Global Entertainment and Media Whileadvertising can be seen as necessary for economic growth, itis not without social costs. Unsolicited Commercial Email andother forms of spam have become so prevalent as to have

become a major nuisance to users of these services, as wellas being a financial burden on internet service providers.Advertising is increasingly invading public spaces, such asschools, which some critics argue is a form of childexploitation.

ASPECTS OF ADVERTISEMENT

Consumers are the main source of an industry. In this formeach source that can influence the consumers, inspire themfor the purchase of production keeps an importance in thesales system of an institution. Advertisement is an importantmeans to influence the consumers. It is not sufficient for amanufacturer to deliver his product which has beenmanufactured according to the choice of consumers at the

shop of retailers. The real sale of product is not possible untilthe production does not inspire the consumer buy providingthem sufficient information regarding quality andcharacteristics of the product. This work is only possiblethrough advertisement. Media of advertisement is meant bythe method which message from advertisement is accessedto the consumers .


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METHODS OF ADVERTISEMENT

(1) PRESS ADVERTISING OR PRINT MEDIA NEWSPAPER ADVERTISING MAGAZINE ADVERTISING

(2) OUTDOOR ADVERTISING:(3) TELEVISION ADVERTISING:(4) TELEMARKETING:(5) ON LINE MARKETING:(6) FAIRS AND EXHIBITIONS:(7) DIRECT MAIL ADVERTISING:(8) WINDOW DISPLAY ADVERTISING:(9) SPECIALTY ADVERTISING:


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(1) PRESS ADVERTISING OR PRINT MEDIA

Press advertising, i.e. advertising thorough newspapermagazines, journals, etc. is commonly used by modernbusinessmen. It may be noted advertising is an importantsource of finance for the press or print media. Because of advertising, the subscribers get newspaper and periodicalsat subsidized rate.

NEWSPAPER ADVERTISING

Newspaper reading is a common habit among most of theeducated people. Besides daily newspaper also. Newspapersreach almost every place and are used by all kinds of people. Therefore, newspaper can be used as a medium of advertisement with great advantage.

Advertising through newspaper has the following merits :

(1) A newspaper has large circulation and a singleadvertisement a newspaper can reach number of people.(2) Continues advertisement is possible because newspaperis published daily.


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(3) Newspaper provides flexibility in advertising in the sensethat advertising campaign can be initiated and stoppedquickly. One day's notice is sufficient for this purpose.

Newspaper advertising has the following limitation :(1) The life off a newspaper of advertisement is very short.Moreover, people devote only an insignificant of their day'stime in reading the newspaper. Thus, advertisements arelikely to draw the reader's attention only casually.(2) Newspaper advertisement is successful only when thepeople to be communicated the message is educated.(3) Newspaper cannot be used foe colored advertisement.

MAGAZINE ADVERTISING:

Magazines or periodicals are an excellent medium of advertisement when a highly quality of printing in colored isdesired. Magazine advertisements can be directed towards aparticulars class of people.Magazine advertising is considered to be superior to

Newspaper advertising because of the following merits :

Magazines are read more carefully and at greater leisure.Advertising through magazines is more effective.(1) The life of the magazine advertisement is longer.Magazines are preserved for a long period of time and areread time and again.

(2) Since advertisement copy is presented in a colored form,it creates a better image of the products advertised,

Magazine advertising has the following limitations :

(1) Advertising through magazine is costly.


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(2) The circulation of magazine is generally smaller ascompared to the newspapers.(3) Magazines advertisements are to prepared and sent forpublication well in advance.

(2) OUTDOOR ADVERTISING:

Outdoor advertising has gained wide popularity these days.Its purpose is to attract the attention of the people at busyroads and markets. It includes the use of posters displays,bill board display and electric display.

Outdoor advertising has the following merits :

(1) Outdoor advertising is highly flexible and is a low costmedium.(2) It is very useful for advertising consumer productsbecause posters. etc. can be display at various crowdedcenters.(3) Outdoor advertisement attracts attention quickly andrequires very less time and efforts on the part of the reader

Outdoor advertising has the following demerits :

(1) It can't carry long message as posters, hoarding, etc. areread by the people at a glance.(2) It has low retention value because people don't devotespecial time to read the message.(3) It distracts the attention of the passers-by and may evenaccidents on busy roads.

(3) TELEVISION ADVERTISING:

Television is the fast growing medium of advertisementBecause of huge expansion of electronic media. It marks itsappeal through both the eye and ear Products can bedemonstrated as well as explained as in film advertisement.

T.V. advertising has all the merits of film advertising.


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It has greater effectiveness as the message is conveyed attheir homes to the people. Selectivity of message can alsobe achieved. Commercials may be given during that time

period when the prospective buyers are supposed to watchT.V. programmers.

T.V. adv. has got all the demerits of film advertising.

T.V. is very costly medium of adv. And can be made use of by the well established companies only. Another limitation of television advertising is that once it is presented. Its backreference is not possible as in the radio advertisement .

(4) TELEMARKETING:

Telemarketing involves the use of telephone and call centersto attract prospects sell to existing customers, and provideservice by taking orders and answering questions.Telemarketing helps companies increase revenue, reduceselling cost, and improve customer satisfaction.Companies use call centers for inbound telemarketing(receiving calls from customers) and outbound telemarketing

(initiating costs to prospects and customers).(5) ON LINE MARKETING:

On line marketing is described as company efforts to inform,communicate, promote and sell its products and servicesover the internet. The advent of the internet as greatlyincreased the ability of companies to conduct their businessfaster, more accurately, over a wider range of time andspace, at reduced costs, and with ability to customize andpersonalize customer offerings.

(6) FAIRS AND EXHIBITIONS:

The exhibitions and fairs relating to different industries of allindustries in metro cities are provisionally arranged in whicha number of manufacturers exhibit their products. A huge


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population visits at these fairs for recreation. Themanufacturer can advertise their products in these fairs. Theitems of daily use and food stuff are advertised through thismethod.

(7) DIRECT MAIL ADVERTISING:

Direct mail is probably the most selective of all the adv.Media. It is used to send customer. For this purpose, theadvertiser has to maintain a list which can be expanded orcontracted be adding or removing names from the list. But asevere limitation is posed by the difficulty of getting andmaintaining a good mailing list.Advertisements that are sent by the mail may be in the formof circular letter, leaf let, calendars, booklets and catalogues,Booklets and catalogues contain the information about theproducts advertised, Information about the terms of scaleand prices of different varieties of the product is given to theprospective customers through catalogues.

Merits of mail adv. are as under:

(1) Mail adv. has a personal appeal since it is addressed to a

particular person.(2) It maintains secrecy in adv. The competitors do not getthe information about the advertised material.(3) It gives an opportunity to the advertiser to providedetailed and illustrated information about the prospects.

Demerits of direct mail adv. are given below:

(1) The coverage of detail mail adv. is limited.

(2) Its effectiveness is doubtful as it does not create a massappeal.

(8) WINDOW DISPLAY ADVERTISING:

Window display is a highly effective medium of advertisement. Goods can be displayed in artistically laid out


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windows at the shop fronts or at important busy centers likerailway stations and bus stops. Effective display of goodsattracts the attention of the on lookers and tries to convincethem to buy the good displayed, Display adv. can also used

by participating in trade fairs and exhibitions.

(9) SPECIALTY ADVERTISING:

Many business firm offer specialty articles to the present andprospective customers. These articles may be diaries, penholder, desk trays, key chains, purses, paper weight,cigarette cases and calendars. The name and address of advertiser is printed or inscribed on the specialty items.They also bear the brand name of the firm. Since thesearticles are of daily use, they have greater capacity toremind their user about the brand name of the firm offeringsuch articles.

BEST METHOD OF ADVERTISEMENT

Best method of Advertisement depends on the objective of abusiness organization. If a business organization have objective to provide the

information to overall public then best method of theadvertisement is Television.

If a business organization have objective to provide theinformation to Literate Person then best method of theadvertisement is Print Media.

EFFECTS OF ADVERTISING

Advertising has become an essential marketing activity in

the modern era of large scale production and servecompetition in the market. It performs the followingfunctions:1. Promotion of Scales : It promotes the sale of goods andservices by informing and persuading the people to buythem. A good advertising campaign helps in winning new


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customers both in the national as well as in the internationalmarkets.2 . Introduction of New Product : It helps the introductionof new products in the market. A new enterprise cant make

an impact on the prospective customers without the help of advertising. Advertising enables quick publicity in themarket.3 . Mass Production : Advertising facilities large-scaleproduction. Advertising encourages production of goods inlarge-scale because the business form knows that it will beable to sell on large-scale with the help of advertising. Massproduction reduces the cost of production per unity by theeconomical use of various factors of production.4. Research : Advertising stimulates research anddevelopment activities. Advertising has become acompetitive marketing activity. Every firm tries todifferentiate its product from the substitutes available in themarket through advertising. This compels every business todo more and more research to find new products and theirnew uses.5. Education of People : advertising educate the peopleabout new products and their uses. For example, Gits,Kelloggs,

Maggies etc., are thriving upon the new life-style of Indianconsumer.6. Support to Press : Advertising provides an importantsource of revenue to the publishers and magazines.Advertising is also a source of revenue for TV network. Forinstance, Doordarshan and Zee TV insert ads before, inbetween and after various programmers and earn millions of rupees through ads.

ADVANTAGES OF ADVERTISING


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becomes easier if the product is advertised and known to thepublic.(viii) Advertising facilitates mass product of goods whichenable the manufacturer to achieve lower cost per unit of

product. Distribution costs are also lowered when themanufacturer sells the product directly to the customers.Advertising facilities direct distribution of the productthrough the retailers.Retailers are encouraged to purchase and sell the advertisedproducts.

Benefits to Customers

Advertising offers the following advantages to customers:(i) Advertising helps the customers to know about theexistence of various products and their prices. They canchoose from the various brands to satisfy their wants. Thus,they cannot be exploited by the sellers.(ii) Advertising educates the people about new products andtheir diverse uses.(iii) Advertising increased the utility of existing products formany people add to the amount of satisfaction which theyare already enjoying.(iv)Advertising induces the manufacturers to improve thequality of their products through research and development.This ensures supply of the products of better quality to theconsumers.Benefits of Society

The society at large is also benefited because of advertisement:

(i) Adverting provides employment to persons engaged inwriting, designing and issuing advertisements.Increases employment brings additional income with thepeople which stimulate more demand.Employment is further generated to meet the increaseddemand.


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(ii) Advertising promotes the standard of loving of the peopleby increasing the variety and quality in consumption as aresult of sustained research and development activities bythe manufacturers.

(iii) Advertising educates the people about the various usesof different products and this increases their knowledge.Advertising also helps in finding customers in theinternational market which is essential for earning foreignexchange.

Is advertising a social waste ?

Advertising is often criticized as a wasteful activity and anunnecessary evil. Its critics offer the following arguments toprove their contention:1. Multiplies the Needs : Advertising multiplies the needsof the people by inducing them to buy even those thingswhich are not required by them. Since an advertisement iscontinuously repeated, it creates a desire in the mind of thepublic to buy the advertised product.2. Makes the product more Costly : The amount of moneyspent by an advertiser on his products advertisement isadded to the distribution cost of the product. Thus, thecustomers have to pay more for the product advertised.3. Increase in demand at the cost of anothermanufacturer : Advertising does not always increase thedemand of the product. When the demand is inelastic,advertising shifts demand from one producer to another.That means a large amount of money spent on advertisingby the manufacturers goes waste.

4. Creates brand monopoly : Advertising may lead tomonopoly of a brand. It is argued that big manufacturerswho can afford large amount of money on advertising cancreate brand monopoly and eliminate the small producers.5. Every advertisement is not creative : A large numberof advertisements either escape the attention of the people


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or are ignored by them. This leads to waste of money spenton advertisement.6. Undermines moral values : Sometimes, advertisingundermines ethical and aesthetic values. It may make the

people start bothering for appearance and design of theproduct rather than the physical utility. Some advertisersalso use indecent language and photographs to advertisetheir products which are highly objectionable from thesocietys point of view.7. Corrupt the minds of youngsters : It is felt thatadvertisement can corrupt the minds of youngsters. Youngminds run the risk of being carried away by theadvertisements promoting smoking, wine, etc. In somecases, advertisements have promoted the youths to commitcrimes and undertake ventures at the risk of their lives.

Despite its drawbacks, advertising is anecessary marketing activity in the present businessenvironment. It is not a social waste. It enables amanufacturer to introduce his products in the market andsell them. Advertising helps in educating the peopleregarding new uses of various products. It also strengthens

the freedom of choice of the people. It sustains the pressand gives employment to people. Advertising increases thestandard of living of the people by informing them about theavailability of new products. Thus, we can say thatadvertising is a useful marketing activity. Its drawbackscould be removed if the people and the Government keep awatch on the advertisers. People should satisfy themselvesabout the claims made by a producer before they purchasehis products. The manufacturers or the advertisers shouldalso avoid wasteful advertising and keep advertisingexpenditure within limits. They should also follow the ethicalstandards while advertising their products.


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DEMERITS/DISADVANTAGESOF ADVERTISEMENT(A SOCIAL WASTE)

These are the disadvantages of advertising:

Increases the cost :It increases the cost of goods. The cost

of the advertisement is included in the price and isultimately borne by the customers.

Misleads the public :It misleads the public by giving false

statements about the product. (It may be true in some casesbut majority of advertisers know the value of honeststatements.)


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Creates dissatisfaction :It creates tastes and desires for

some people whose income may not allow them to buy. Suchpeople feel dissatisfied.

Creates a monopoly :It increases monopolistic trend. Due to

advertisement some manufacturers create monopoly inindustry and thus reduce healthy competition. It becomesdifficult for new firms to enter the field.

Creates the confusion :It creates the possibility of wrong

purchases. Being impressed by the advertisement, in somecases, a person is not able to purchase the commodity,which he actually wants to purchase.

Encourages luxury :This encourages luxury. Mostly the

commodities related to comforts and luxuries are advertised,for example, cigarettes, cosmetic goods and etc. due toadvertisement of cigarettes several persons start smokingcigarettes, which becomes habit.

Reduces cleanliness :It reduces cleanliness. Large number

of posters and writings on the walls are used foradvertisement. This makes the roads and the walls of thehouses look dirty. Thus, it reduces the natural beauty.

Causes wastage :It is a cause of wastage of natural

resources. As a results of advertisement, style and fashionchange quickly. It makes the goods out of fashion.


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FOR EXAMPLE

Hero Honda uses the Advertisement to attract the youngster.Hero Honda uses the bull in the advertisement of Karizmabike that bull shows the youngster power. It is very use fulladvertisement for attract the youngster.

CONCLUSION

At last it can be concluded that advertising is useful activitywhich provides benefits to manufacturer, consumers. Butsome time advertiser use untruthful, misleadingadvertisement and they ignore moral responsibility byshowing vulgar, indecent advertisement. It is badly affectingmoral values in society. So advertisement should haveethical values.In order to be consumer oriented an advertisement will haveto be truth- full and ethical. It should not mislead theconsumer. It means what it promise must be their in the


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performance of product, so ethics should be followed inadvertising.

Reference

www.nicholosonmebride.com www.humanresourceabout.com/od/organizationdevel

opment/a/valueslive.html www.humanresourceabout.com/od/strategicplanning

/a/organizevalue.html http://forumssureshkumar.net/groupdiscussiont opi

cs/12305_ethics-advertising-comments-plz.html http://www.managementparadise.com/forems/showthread.php?t =
http://www.managementparadise.com/forems/showthread.php?thttp://www.managementparadise.com/forems/showthread.php?t


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24081 http://www.asa.com http://hinduonnet.com

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