The history of advertising and it’s

important in modern business

 Chapter 01

Introduction

Advertising simply put is telling and selling the product. Advertising Management though
is a complex process of employing various media to sell a product or service. This
process begins quite early from the marketing research and encompasses the media
campaigns that help sell the product.

Without an effective advertising management process in place, the media campaigns are not
that fruitful and the whole marketing process goes for a toss. Hence, companies that believe
in an effective advertising management process are always a step ahead in terms of selling
their goods and services.

As mentioned above, advertising management begins from the market research phase. At this

point, the data produced by marketing research is used to identify what types of advertising
would be adequate for the specific product. Gone are the days when there was only print and
television advertising was available to the manufacturers. These days apart from print and
television, radio, mobile, and Internet are also available as advertising media. Advertising
management process in fact helps in defining the outline of the media campaign and in
deciding which type of advertising would be used before the launch of the product.

If you wish to make the advertising effective, always remember to include it from the
market research time. Market research will help to identify the niche segment of the
population to which the product or service has to be targeted from a large population. It will
also identify why the niche segment would opt for the product or service. This information
will serve as a guideline for the preparation of advertising campaigns.

Once the niche segments are identified and the determination of what types of advertising
will be used is done, then the advertising management focuses on creating the specifics for
the overall advertising campaign. If it is a radio campaign, which type of ads would be used,
if it is a print campaign, what write ups and ads will be used, and if it is a television
campaign, what type of commercials will be used.

There might also be a mix and match advertising in which radio might supplement television
advertising and so on. It is important that through advertising management the image is
conveyed that all the strategies complement each other. It should not look to public that the
radio advertising is focusing on something else while television on something else. The
whole process in the end should benefit the product or service.

The role of people designing the advertising campaign is crucial to its success. They have
been trained by seasoned professionals who provide the training in the specific field.
Designing an advertising campaign is no small a task and to understand the consumer
behavior from the data collected from market research is a very important aspect of the
campaign.

A whole lot of creativity and inspiration is required to launch an adequate advertising

campaign. In addition, the management skills come into play when the work has to be done
keeping the big picture in mind. It would be fruitful for the company if the advertising
campaign lasts well over the lifetime of a product or service, reach the right customers,
and generate the desired revenue.

Classification of Advertising

Advertising is the promotion of a company’s products and services though different mediums
to increase the sales of the product and services. It works by making the customer aware of
the product and by focusing on customer’s need to buy the product. Globally, advertising has
become an essential part of the corporate world. Therefore, companies allot a huge part of
their revenues to the advertising budget. Advertising also serves to build a brand of the
product which goes a long way to make effective sales.

There are several branches or types of advertising which can be used by the companies.
Let us discuss them in detail.
1.1 Classification of Advertising

1. Print Advertising - The print media has been used for advertising since long. The
newspapers and magazines are quite popular modes of advertising for different
companies all over the world. Using the print media, the companies can also promote
their products through brochures and fliers. The newspaper and magazines sell the
advertising space and the cost depends on several factors. The quantity of space, the
page of the publication, and the type of paper decide the cost of the advertisement. So
an ad on the front page would be costlier than on inside pages. Similarly an ad in the
glossy supplement of the paper would be more expensive than in a mediocre quality
paper.
2. Broadcast Advertising - This type of advertising is very popular all around the
world. It consists of television, radio, or Internet advertising. The ads on the television
have a large audience and are very popular. The cost of the advertisement depends on
the length of the ad and the time at which the ad would be appearing. For example,
the prime time ads would be more costly than the regular ones. Radio advertising is
not what it used to be after the advent of television and Internet, but still there is
specific audience for the radio ads too. The radio jingles are quite popular in sections
of society and help to sell the products.
3. Outdoor Advertising - Outdoor advertising makes use of different tools to gain
customer’s attention. The billboards, kiosks, and events and tradeshows are an
effective way to convey the message of the company. The billboards are present all
around the city but the content should be such that it attracts the attention of the
customer. The kiosks are an easy outlet of the products and serve as information
outlets for the people too. Organizing events such as trade fairs and exhibitions for
promotion of the product or service also in a way advertises the product. Therefore,
outdoor advertising is an effective advertising tool.
4. Covert Advertising - This is a unique way of advertising in which the product or the
message is subtly included in a movie or TV serial. There is no actual ad, just the
mention of the product in the movie. For example, Tom Cruise used the Nokia phone
in the movie Minority Report.
5. Public Service Advertising - As evident from the title itself, such advertising is for
the public causes. There are a host of important matters such as AIDS, political
integrity, energy conservation, illiteracy, poverty and so on all of which need more
 awareness as far as general public is concerned. This type of advertising has gained
much importance in recent times and is an effective tool to convey the message.

1.2 Objectives and Importance of Advertising

Advertising is the best way to communicate to the customers. Advertising helps informs the
customers about the brands available in the market and the variety of products useful to them.
Advertising is for everybody including kids, young and old. It is done using various media
types, with different techniques and methods most suited.

Let us take a look on the main objectives and importance of advertising.

1.2.1 Objectives of Advertising

Four main Objectives of advertising are:

i. Trial
ii. Continuity
iii. Brand switch
iv. Switching back

Let’s take a look on these various types of objectives.

1. Trial: the companies which are in their introduction stage generally work for this
objective. The trial objective is the one which involves convincing the customers to
buy the new product introduced in the market. Here, the advertisers use flashy and
attractive ads to make customers take a look on the products and purchase for trials.
2. Continuity: this objective is concerned about keeping the existing customers to stick
on to the product. The advertisers here generally keep on bringing something new in
the product and the advertisement so that the existing customers keep buying their
products.
3. Brand switch: this objective is basically for those companies who want to attract the
customers of the competitors. Here, the advertisers try to convince the customers to
switch from the existing brand they are using to their product.
4. Switching back: this objective is for the companies who want their previous
customers back, who have switched to their competitors. The advertisers use different
 ways to attract the customers back like discount sale, new advertise, some reworking
done on packaging, etc.

Basically, advertising is a very artistic way of communicating with the customers. The main
characteristics one should have to get on their objectives are great communication skills and
very good convincing power.

1.3 Importance of Advertising

Advertising plays a very important role in today’s age of competition. Advertising is one
thing which has become a necessity for everybody in today’s day to day life, be it the
producer, the traders, or the customer. Advertising is an important part. Lets have a look on
how and where is advertising important:

1.3.1 Advertising is important for the customers

Just imagine television or a newspaper or a radio channel without an advertisement!

No, no one can any day imagine this. Advertising plays a very important role in
customers life. Customers are the people who buy the product only after they are
made aware of the products available in the market. If the product is not advertised,
no customer will come to know what products are available and will not buy the
product even if the product was for their benefit. One more thing is that advertising
helps people find the best products for themselves, their kids, and their family. When
they come to know about the range of products, they are able to compare the products
and buy so that they get what they desire after spending their valuable money. Thus,
advertising is important for the customers.

1. Advertising is important for the seller and companies producing the products

Yes, advertising plays very important role for the producers and the sellers of the
products, because

 Advertising helps increasing sales

 Advertising helps producers or the companies to know their competitors and
plan accordingly to meet up the level of competition.
  If any company wants to introduce or launch a new product in the market,
advertising will make a ground for the product. Advertising helps making
people aware of the new product so that the consumers come and try the
product.
 Advertising helps creating goodwill for the company and gains customer
loyalty after reaching a mature age.
 The demand for the product keeps on coming with the help of advertising and
demand and supply become a never ending process.

1.3.2 Advertising is important for the society

Advertising helps educating people. There are some social issues also which
advertising deals with like child labour, liquor consumption, girl child killing,
smoking, family planning education, etc. thus, advertising plays a very important role
in society.

1.4 Print Advertising

Print advertising is a widely used form of advertising. These advertisements appear in

newspapers or magazines and are sometimes included as brochures or fliers. Anything
written in the print media to grab the attention of the specific target audience comes under the
purview of print advertising.

People who read newspapers or other publications have a tendency to browse the print ads
that they come across. The decision to buy the product might not be instantaneous, but it does
settle down in their subconscious mind. Next time they see the product in the market, they are
tempted to buy it.

Print advertisements are only effective when people see them. When people browse
through newspapers and publications, these advertisements should grab the attention of the
potential customer. Therefore, these advertisements should be created in such a manner that
they can hold the attention of the customer to some extent. Usually a team of individuals is
required in order to design the advertisements.

The newspaper or magazine ad should be such that it should compel people to spend
money on the products. This is just what the advertising team does. To create such an ad,
the team members work on a concept and develop the wordings and images of the ad. These
wordings and images are then brought together to form the final ad. Then there are people
who deal with the placement of the ad. They have to make sure that if the client has paid for
premium place, they get the desired exposure. For example, an ad on the first page will get
instant attention of the reader than the ad on the subsequent pages. Likewise, an ad which
occupies greater space is likely to get more attention. All these factors have to be looked into
while designing the ad.

The sales team of the publication makes sure that it gets ads regularly. In fact, these ads are a
major source of income for the publication and hence it is expected that there should be a
constant flow of the ads. The sales team does just that.

Mailers are another type of print ads. These can range from well-designed postcards to simple
paper leaflets. These are usually delivered by the postal workers in people’s mailboxes. The
problem with these mailers is that they get least attention and are usually considered as junk
and thrown away even without reading. To reduce this occurrence, companies sometimes
make use of fliers. These are paper ads which are handed over to individuals in person. The
logic is that if the ad is given to people personally, they will pay more attention to it, which is
actually true to some extent.

Though print advertising is still very popular, it does take a hit from time to time. For
example, during the recession phase, when people’s budgets were tight, they did not resort to
print ads. In addition, with the advent of Internet, the print ads in the publications have gone
down because Internet has a wider reach online. To overcome this scenario, new strategies
have to be developed by advertisers and the print media. Globally, advertisers keep on
developing strategies which benefit the business of print publications. Therefore, it can be
said that print advertising is here to stay.

1.5 Broadcast Advertising

Generally speaking, broadcast advertising is radio, television, and Internet advertising.

The commercials aired on radio and televisions are an essential part of broadcast advertising.

The broadcast media like radio and television reaches a wider audience as opposed to the
print media. The radio and television commercials fall under the category of mass marketing
as the national as well as global audience can be reached through it.
The role of broadcast advertising is to persuade consumers about the benefits of the product.
It is considered as a very effective medium of advertising. The cost of advertising on this
channel depends on the time of the commercial and the specific time at which it is aired. For
example, the cost of an ad in the premium slot will be greater than in any other slot.

A radio ad must be aired several times before it actually sinks in the minds of the consumers.
Thus the frequency of the ad is important. The type of your target audience is also important.
Therefore, one must do a research on which type of audience listens to which channels if they
want the ads to be successful. The voice talent in the commercial should be taken keeping in
mind the type of audience and the type of commercial.

The television advertising is usually considered the advertising for the corporate giant,
though even the small businesses can benefit from it. A strong audio and video combination
is a must for the success of the commercial. But it is also important that the audio and video
should function well without each other. For example, if a person is not viewing the TV but
just listening to it, s/he should get the idea and vice versa.

It is extremely important that whatever has been advertised in the commercial is true. For this
reason, organizations such as Federal Trade Commission (FTC) are there to monitor the
commercials on television and radio. This ensures that the advertisers are not making any
false claims to lure consumers to buy their products.

Most of the radio and television advertisements are paid though there are some public service
ads which can be aired for free. The advertisers usually have to pay for the spot which lasts
for 30 seconds. In rare cases, this spot can increase to 60 seconds too.

These days radio and television ads are prepared by advertising agencies for their clients.
They understand the need of the client and make the commercial keeping in mind the current
state of affairs. Broadcast advertising has become a very essential part of marketing in recent
times. Companies allocate specific budget for radio and television ads and make an estimate
of how much revenue they can earn through broadcast advertising. For example, marketing
consultants are hired to determine the return on investment (ROI) for spending on radio and
television ads. Sometimes the marketing consultants of these businesses run sample ads to
judge its popularity among the viewers.

Internet or online advertising uses the Internet or the World Wide Web for the purpose of
attracting consumers to buy their product and services. Examples of such advertising include
ads on search engine result pages, rich media ads, banner ads, social network advertising, and
email marketing and so on. Online advertising has its benefits, one of them being immediate
publishing of the commercial and the availability of the commercial to a global audience. But
along with the benefits come the disadvantages too. These days, advertisers put distracting
flashing banners or send across email spam messages to the people on a mass scale. This can
annoy the consumers and even the real ads might get ignored in the process. Therefore, ethics
in advertising is very important for it to be successful.

Whatever the mode of advertising, broadcast advertising is an inherent part of any advertising
campaign these days.

1.6 Outdoor Advertising

Outdoor advertising communicates the message to the general public through highway
billboards, transit posters and so on. Outdoor advertising is a very important form of
advertising as the ads are huge and are visible to one and all. The important part of the
advertising is that the message to be delivered should be crisp and to the point. Though
images can be used, but they cannot be used in excess. Everything should be presented to the
viewer in such a format so that the viewers make up their mind to buy the product or service.

The message to be delivered can be an ad to buy a product, take a trip, vote for a politician, or
give to a charity. According to Outdoor Advertising Association of America (OAAA),
millions of dollars are being spent on outdoor advertising each year and the figures are
expected to grow. This is due to the fact that outdoor traffic keeps on growing every year and
hence the target audience for outdoor advertising is ever increasing.

The print and newspaper advertising takes up a huge part of advertising but outdoor
advertising is unique in its own way. It is an extremely cost-effective method of advertising.
All you need to do is to design a billboard and get it printed as compared to the television
advertising where an entire 30 second commercial has to be designed. If the outdoor ads are
strategically placed, it can guarantee substantial exposure for very little cost. That is why
outdoor advertising is very cost-effective.

Different industries make use of outdoor advertising in their own different way. For example,
eating joints and eateries on the highway make use of highway billboards to draw the
customer to have a bite and rest a little at their joint. Mac Donalds and Subway are the
excellent examples. The automobile and tourism industries make use of the billboards to
advertise their products and tourism plans. These are way too successful because of the fact
that people on the highway are on the lookout for such information.

Apart from the billboards, there are several other forms in which outdoor advertising can take
place. For example, beverage companies make use of sporting events and arenas to showcase
their products. For example, Coca Cola was one of the FIFA World Cup sponsors. Other
places where you can see outdoor advertising are:

 taxicabs
 buses
 railways
 subways and walls on which murals are painted

All these forms of outdoor advertising are very popular and extremely cost effective.
Importance of Advertising in Business
Businesses use advertising to accomplish varied goals, and companies place those ads in
diverse media. Besides advertising products in traditional venues such as newspapers and
general interest magazines, businesses advertise in media that reach specific markets. For
example, a portable communications device is advertised on a social media site that reaches
younger customers. Home furnishings and decor are advertised in a Home and Garden
Show program guide. Effectively produced ads help to further business goals.

1.7 Product Introduction and Awareness

When a business introduces a new product, advertising provides a means to make a large
market aware of the product. Ads often focus on the product's solution to a common
problem, such as a new cell phone's touted ability to solve the "dropped call" problem. In a
very visual example, ads for an anti-frizz hair treatment can show "before and after"
photographs to illustrate the product's effectiveness.

1.7.1 Product Sale Events

Advertising provides an effective way to inform the market about limited-time product sale
events. Sale-based ads can be generated by local retail outlets, or can originate from the
product's national manufacturer. In many cases, the national manufacturer shares the cost of
the ad with the local retailer. This type of advertising is called co-op advertising, and
commonly uses manufacturer-supplied graphics and ad templates. The local retailer's name
appears as the local product outlet.

1.7.2 Product Differentiation from Competitors

Businesses frequently use advertising to show how their product has more benefits, or is
more effective, than similar competitors' products. In some cases, the retailer feels it's
necessary to advertise because the competition is blanketing newspaper pages or television
airwaves with its own ads. Unless other market retailers that aggressively highlight their
own products, they are likely to be overlooked in the minds of consumers.

1.7.3 Product Breakthroughs and Advancements

Advertising is used to communicate dramatic product breakthroughs. In September 2003,

"Advertising Age" depicted a long history of "soap wars" in which bar soap manufacturers
promoted their respective products. In 1980, a product breakthrough occurred with the first
liquid hand soap introduction. This refillable soap solved the problem of messy sink
residue. This liquid soap product was purchased by a national brand, while competitors'
liquid soap products also emerged.

1.7.4 Institutional Advertising to Promote a Good Image

When a business communicates information about its operations, or illustrates why its
product is the best choice for consumers, the company uses institutional advertising. Sales
expert Zig Ziglar notes that this type of advertising isn't really designed to increase sales,
but is structured to promote a good image of the company or product. This perception will
hopefully translate into future sales. Ziglar emphasizes that even if the consumer doesn't
buy the product right now, the company will have kept its name in front of its consumer
market.
 CHAPTER 02

HISTORICAL BACKGROUND

I believe it is important to understand advertisingto appreciate the reasons for advertising’s

use in a modern industrialized society. Advertising was spawned by a market-driven system
and developed in a capitalistic, free enterprise market economy in which mass production
utilized advertising as an essential tool.
Urbanization, transportation expansion and communication advancements all facilitated the
use and growth of advertising, the result of which is that advertising is firmly entrenched as
a business function in different societies with deeply rooted economic and cultural
foundations.
Advertising is the result of years of developing in capitalism among it use in mass
communication media.Many authors said that advertising is any paid form of non-personal
presentation and promotion of ideas, goods or services by an identified sponsor. We can
define advertising, as a form of commercial mass communication way, designed to promote
the sale of a product or service, or a message on behalf of an institution, organization, or
candidate for political office. That implies concepts such as market, publics, sponsors,
persuasion, products, services, mass communication, etc.
We can use advertisingto encourage or persuade an audience (viewers, readers or listeners)
to continue or take some new action.

2.1 First Steps

The history of advertising is connected to humankind evolution and it technical progress.

Need of publishing facts and products quality or even required services, is a spontaneous
spiritual tendency of trade man.

Investigators said that the first steps of advertising were in Ancient Empires, for example, in
Egypt they used papyrus promoting slaves´ sales and rewards. In Babylon
they used dirt splits with inscriptions about salesman, shoemakers and clerks. Greeks
usedstreet callers who announced ships´ arrival and it cargo of metals, wine and species.

In the case of Rome, they did something different for instance. They did the first touristic
ad1 of a tavern; in Pompeii a stone wall said ―Traveler, if you go from here to the twelve
tower, there Sarinus have a tavern, with this we invite you to come in, bye‖

Also in Rome, an important media was known as album, which consisted in a board of
blanched wall where they published edicts and laws together with promotions of
gladiators’ fights and theater representations. Another media was the libellus, made with
papyrus, a sort of poster which announced possessions sales, shows programs, and the
lost of several things.
Painted announces were important too. For example a goat meant milk stores, and bakery
could be identified with a mule which has a mill in it back.

2.2 Middle Age and the rising of printing press

In Middle Age, together with street callers, appeared brands in products for identifying
the maker, giving to them a sign of individuality from a manufacturer from other,
allowing to difference, for example, wines and geographical areas such as Osnabruck and
Westphalia.
In this period, a big number of people can´t read. So, signs that today would say cobbler,
miller, tailor or blacksmith would use an image associated with their trade such as a boot,
a suit, a hat, a clock, a diamond, a horse shoe, a candle or even a bag of flour.
Gutenberg’s printing press (1438) really began the era of mass communication in that
now printed materials could be mass produced whereas prior to the printing press, books
and other printed materials had to be made individually. A Londoner printed the first
English newspaper in 1622 and the first ad appeared in 1625.
That 1622´s first newspaper was the Weekly News, by Nicholas Brown and Thomas
Archer. Other newspapers of this time were the MercuriusBritannicus, in 1665 and La
Gazzette from Paris by ThéophrasteRenaudot in 1630. Those were considered beginners
of modern advertising, despite of the fact that the first newspaper´s announce appeared in
1650 in the Several Proceedings in Parliament; it was about offering a reward for
returning twelve stolen horses.
2.3 Travelling To Modern Age

In England, line advertisements in newspapers were very popular in the second half of the
seventeenth century, often announcing the publication of a new book, or the opening of a
new play. The Great Fire of London in 1666 was a boost to this type of advertisement, as
people used newspapers in the aftermath of the fire to advertise lost & found, and changes
of address. These early line ads were predominantly informative, containing descriptive,
rather than persuasive language.
It was around these facts that in 17´s century appeared the first law for controlling
advertising content because false advertising and so-called "quack" advertisements
became a problem.
The first newspaper was published in 1704 in United States (USA). In it pages it
promoted itself as a vehicle for advertising. Later, in England, The Spectator, by Joseph
Addison and Richard Steele published the advertisement of a dentifrice well accepted by
nobility and high class.
In USA, appears in 1729 The Gazette by Benjamin Franklin, which is considered the true
beginning of advertising in that country. That newspaper had advertisements of ships,
birds´ feathers for writing, wines, books, tobacco, chocolate and other wares. It had so
much success, that Franklin is considered a real advertising executive, salesman,
publisher and director.
Progressively, newspapers receipted advertisements, sometimes in the internal pages or in
the specialized ones.

2.4 The 19´s, the explosion

Once technological advances enabled the mass production of soap, china, clothing etc.,
the close personal links between buyer and seller were broken. Rather than selling out
of their back yards to local customers, manufacturers sought market a long way from their
factories, sometimes on the other side of the world.
This created a need for advertising. Manufacturers needed to explain and recommend
their products to customers whom they would never meet personally. Manufacturers, in
chasing far-off markets, were beginning to compete with each other. Therefore they
needed to brand their products, in order to distinguish them from one another, and create
mass recommendations to support the mass production and consumption model.
Newspapers provided the ideal vehicle for this new phenomenon, advertisements. New
technologies were also making newspapers cheaper, more widely available, and more
frequently printed. They had more pages, so they could carry more, bigger, ads. Simple
descriptions, plus prices, of products served their purpose until the mid nineteenth
century, when technological advances meant that illustrations could be added to
advertising, and color was also an option. Advertisers started to add copy under the
simple headings, describing their products using persuasive prose.
The population doubled from 1870 through 1900 providing an expanded labor force and a
new consumer market – the middle class. This growing class was spawned by the
economic windfall of regular wages from factory jobs. New modes of communication
technology (i.e. telegraph, typewriter, Mergenthaler linotype [automated typesetting] and
faster printing presses) increased communication capabilities. Modern magazines
developed during the end of the nineteenth century aided by railroad distribution and
illiteracy was reduced.
In June 1836, French newspaper La Presse, was the first to include paid advertising in
its pages, allowing it to lower its price, extend its readership and increase its profitability
and the formula was soon copied by all titles.
Around 1840, Volney B. Palmer established the roots of the modern day advertising
agency in Philadelphia. In 1842 Palmer bought large amounts of space in various
newspapers at a discounted rate then resold the space at higher rates to advertisers.
The actual ad - the copy, layout, and artwork - was still prepared by the company wishing
to advertise; in effect, Palmer was a space broker. The situation changed in the late 19th
century when the advertising agency of N.W. Ayer & Son was founded. Ayer and Son
offered to plan, create, and execute complete advertising campaigns for its customers.
By 1900 the advertising agency had become the focal point of creative planning, and
advertising was firmly established as a profession. Around the same time, in France,
Charles-Louis Havas extended the services of his news agency, Havas to include
advertisement brokerage, making it the first French group to organize.
At first, agencies were brokers for advertisement space in newspapers. N. W. Ayer & Son
was the first full-service agency to assume responsibility for advertising content.
N.W. Ayer opened in 1869, and was located in Philadelphia. Around those years, it’s
known the first advertising plan, created for Gillette (razor blades).
Advertisements acquired character of art, with new esthetical presumptions. It developed
the idea of the esthetical function of ads, Toulouse Lautrec, Capiello or Casas did not
sales shows or liquors, they rose as artists not publicists, in a new world of announces and
posters.

2.5 The Golden Age: Journalism Loves Advertising

This was the period of mass press, represented by the penny press. The Penny Press was
most famous for its low price, a penny per paper. It became popular with the American
public because while other papers were priced around six cents, they were able to sell
their paper for just a penny. The low price made newspapers and the news available to
more than just upper class citizens for the first time.

The labor and lower classes were able to purchase a paper and read the news. As more
people began buying papers throughout the country, news and journalism became more
important overall.

Newspapers also began paying more attention to the public it served. They were quick
to realize that the same information and news that interested the six cent public, did not
interest the penny public. Newspapers used information from police stations, criminal
courts and divorce courts to fill their paper and make it more appealing to their new
public.

The heavy dependence on advertising as a major source of revenue was a main reason
that the Penny Press was able to sell papers for a lower price than anyone else. Other
papers relied heavily on subscriptions and daily sales. The price of paper and materials
used to produce the newspapers also decreased making the production of the newspaper
itself less expensive.
A pioneer during the Penny Press era was Benjamin H. Day, founder of the New York
Sun. The Sun was the first popular penny paper. The paper's motto, printed at the top of
every front page was:
"The object of this paper is to lay before the public, at a price within the means of every
one, all the news of the day, and at the same time offer an advantageous medium for
advertisements."
The changes made to the newspaper during the Penny Press era set a precedent for the
way newspapers operate today. Newspapers rely heavily on advertising as a main source
of income and that is also a main reason they are still being offered at relatively low
prices today.
Newspapers also pay more attention to their surrounding communities and report of
important information more diligently and objectively. Newspapers changed their
coverage when they no longer relied so dependently on subscriptions or daily sales to
make a profit.

2.7 Advertising grows up

Through twentieth century advertising became a full-fledged industry and agencies

developed. It is important to contextualize these ads as they were created during a period
of rapid urbanization, massive immigration, labor unrest, concerns over the abuses of
capitalism, the first feminist movement (suffrage), motion pictures and mass culture.
By 1914 the Federal Trade Commission was enacted to prevent deception in advertising
as well as protecting one business owner from the unscrupulous behavior of another.
―Unfair methods of doing business are…illegal.‖ Also in 1914 the Audit Bureau
of Circulations (ABC) was established to verify circulation claims. Prior to the
ABC, publications calculated their own circulation rates obviously creating circulation
figures to suit their own needs. Once the ABC was established as an independent agent,
these figures became standardized and accurate. In fact, the ABC can estimate figures
such as pass-along-readers for print.

In 1916, the advertisers themselves established the Better Business Bureau as a self-
regulatory committee.
Advertisers formed other organizations to improve the effectiveness of advertising such
as the American Association of Advertising Agencies in 1917. The 4 A’s remains the
most comprehensive organization with the majority of agencies as members.
During World War I advertising became an instrument of direct social interaction and
was utilized to arouse the public regarding war-related issues and the sale of war bonds.
The power to persuade through this electronic mass medium was realized.
Following the war, the ―roaring 20s‖ were prosperous. The Victorian age was over and
the great social experiment in the joys of consumption began. Modesty gave way to
sexuality and the love of the modern. Advertising encouraged the consumer to enjoy life
and consumption was not only respectable, but expected. The citizen became the
―consumer‖ and advertising instructed the consumer as to how to be modern and avoid
the pitfalls of this new age (i.e., Listerine mouthwash taught customers about ―halitosis‖
and Lifebuoy soap instructed about avoiding body odor).
Products were developed to cure almost every social anxiety and personal failure. Other
ads emphasized themes of modernity (i.e. public work space was the domain of the male
while the private space of home became female). Ads became more visual with less copy
and showed social lessons in a social tableau (slice-of-life) that instructed on how to fit in,
how to be modern.
Truck building factories from the war were retooled from military to commercial and the
ages of transporting by truck was born. Trucking allowed for door-to-door delivery which
in turn spurred the growth of chain stores and supermarkets. Bruce Barton, one of the
founders of the large agency BBDO, was the author of a best selling 1924 book The Man
Nobody Knows that portrayed Jesus as the archetypal ad man. He blended Christian and
capitalist principles which were a very attractive mix to a people struggling to reconcile
the traditional religious dogma, which preached against excess, with the new religion of
consumption.
The emergence of radio as a significant advertising medium, remained dominant until the
1950s. This created a new sense of community as people separated by thousands of miles
experienced the same programming (i.e., the first presidential address was broadcast in
1923 by President Coolidge and the first football broadcast in 1927). In 1927 the Federal
Radio Commission (now the Federal Communication Commission) was created.
During the first years of twentieth decade, advertising turned more sophisticated and
technical. Started the use of radio, with the first commercial radio diffusor WEAF, in
1922 and the presentation of the first radial program sponsoring by ―Eveready (prepared
by N. W. Ayer). It showed new possibilities for advertising evolution, complemented
with the treatment for halitosis Listerine, Pepsodent, cars advertisements, the use of
movies stars for Lux Soap, and the impulse of women´s cigarette consumption for
Lucky Strike.
The crisis in thirtieth decade made people to turn to the debate about advertising tendency
of creating consumerism, allowing the appearance of new legislations about products and
honesty of ads bounded with announcers’ credibility.
By the mid-1930s, the 'hard sell' had become commonplace, with sex, violence and
threats creeping into ads. Items were marketed as necessities, rather than luxuries, with
items like hats or mouthwash positioned as vital tools in the battle to get, and stay, ahead.
Rather than reassuring consumers, ads bullied and hustled, playing on fears in order to
attach their target audience's sparse disposable income to their brand.
One agency that thrived during the Depression was Young & Rubicam. They focused
on research and facts, investigating the impact of successful and failed campaigns. In
1932, agency head Raymond Rubicam hired an academic named George Gallup as the
first ever market research director in ad land. Gallup developed a lot of the techniques
still used today to find out which ads work and why - questionnaires, focus groups,
listeners' panels - as well as devising audience measurement techniques (the coincidental
method for radio, and the impact method for print and TV).

World War II turned the economy around with the production of war goods. The
Congress established the War Advertising Council to mobilize the nation for war,
juxtaposing advertising with the war effort and this positioning to some degree
rehabilitated the tarnished image of advertising.
During the war, American government created the War Advertising Council, with the
purpose of recruiting civil help. This council was composed by several media, advertising
agencies, creative consultant and publicists. The council invested in this project almost
one hundred billion dollars.
After the war, the council changed it name for Advertising Council, this one still
working. In this period the industry had started supplying the growing needs of cars,
houses, electrical issues and other products.
During this period advertisements were characterized by scenes of modernity, social
promise and the attributes of science and technology. It’s allowed the development of
next decades.

2.8 Growth was the motto

In the early 1950s, the DuMont Television Network began the modern practice of selling
advertisement time to multiple sponsors. Previously, DuMont had trouble finding
sponsors for many of their programs and compensated by selling smaller blocks of
advertising time to several businesses. This eventually became the standard for the
commercial television industry in the United States. However, it was still a common
practice to have single sponsor shows, such as The United States Steel Hour. In some
instances the sponsors exercised great control over the content of the show—up to and
including having one's advertising agency actually writing the show. The single sponsor
model is much less prevalent now, a notable exception being the Hallmark Hall of
Fame.
It is interesting to note that during 1960s advertising was slow to reflect the social
revolution in progress (the era of the hippies). The industry was predominately white and
male with minorities and women in subservient roles. Visually however, there was a
―creative revolution‖ in that ads became minimalist and graphic.
In this period, campaigns featuring heavy spending in different mass media channels
became more prominent. For example, the Esso Gasoline Company spent hundreds of
millions of dollars on a brand awareness campaign built around the simple and alliterative
theme Put a Tiger in Your Tank. Psychologist Ernest Dichter and DDB Worldwide
copywriter Sandy Sulcer learned that motorists desired both power and play while
driving, and chose the tiger as an easy–to–remember symbol to communicate those
feelings. The North American and later European campaign featured extensive television
and radio and magazine ads, including photos with tiger tails supposedly emerging from
car gas tanks, promotional events featuring real tigers, billboards, and in Europe station
pump hoses "wrapped in tiger stripes" as well as pop music songs. Tiger imagery can still
be seen on the pumps of successor firm ExxonMobil.
After World War II, major American agencies were on the move again — typically
driven by their clients at home who wanted to do effective marketing of their products in
foreign settings. Not only in Latin America but also in Australasia, South Africa, Western
Europe, and the Middle East, American agencies opened branch offices. Top managers
were frequently Americans, but copywriters, artists, and most other staff members were
locals. This trend has continued and now involves more agencies and countries (for
example, Russia, Eastern Europe, and sub-Saharan countries). Corporate mergers of the
1980s and 1990s resulted in some mega-agencies, all of whom operate international and
domestic offices to service their clients.
The push-and-pull of agency-client relations in the international arena has continually
focused on the option of using the same ad everywhere (with only minor adjustments
such as language spoken) versus the benefits of adjusting, even rethinking, strategies to
better fit local customs and practices. Today markets cross national borders and
international advertising is commonplace. Some corporations have used their advertising
to create truly global brands — products whose identities bridge cultural and linguistic
gaps on a wide scale. Coca-Cola, McDonald's, and Sony are examples.
By the 1970s and the end of the Viet Nam war, the reelection of Richard Nixon, and Kent
State advertisements began to represent minorities and women were presented in
professional roles. Concern began to be voiced as to the effect of advertising on children.
Newer, tougher regulator offices were developed to demand higher standards.
Advertising judged to be misleading included Listerine mouthwash which claimed it
Could prevent and cure colds, Campbell soups for putting marbles in the bottom of the
bowl to bolster the look of the ingredients, and Anacin for claiming it could relieve
tension.

Control within the agencies shifted from the creative department to the account managers,
a change indicating the emphasis from creative executions to more effective business
practices. Companies consolidated and companies such as Proctor & Gamble and Phillip
Morris became umbrellas for dozens of separate brands. The media also consolidated as
with the Turner Empire of networks and Gannet papers.
From the 1970s through the 1980s a fragmentation occurred within the economy. This
was due to numerous factors including: a. the growth in communication technologies with
cable offering options such as ESPN, CNN, and Nickelodeon, and technologies such as
the VCR, laser disks, specialized magazines and direct mail; b. audience fragmentation
where there was no longer a traditional mass market. Advertisers began to identify
markets by demographics and users of products. Television split into hundreds of
channels where as once there had only been 3 networks. Magazines began to be
published that tailored to special interests and newspapers added freestanding inserts so
readers could choose what they wanted to read; and c. direct response advertising grew
while data processing systems developed.
The beginning of ―merger mania‖ in the early 1980s saw most major US agencies
merge with one another as well as foreign agencies entering the US market. The impact
on the creative was that of departmentalizing accounts (to keep clients that may be in
the same product category, offices were designated as handling one or the other but never
both so as not to compromise the security of the client’s work) and adding an
international flavor to the creative.
The 1980s were also a time of conservatism with the election of Ronald Reagan and the
reaffirmation of family and country. It was also the age of the infomercial that was made
possible in 1984 when the FCC rescinded regulations limiting advertising to 16 minutes
per house. An infomercial was a long advertisement that looked like a talk show or demo
and initially aired in late night slots with small audience. They later spread to other time
slots with larger audiences and created new ethical issues due to the fact that they
appeared to be news programming verses paid advertising.

Today the era of ad-supported television programming is over and there is a need for
advertisers to reinvent the process to fit the new ways of reaching audience members.
With VCRs, TiVo and cable systems the viewer has the option of deleting advertising
messages. Viewers are also able to utilize cable systems for on-line services such as
shopping on either TV or the net. Changes in advertising will affect the way in which it is
prepared and delivered to target audiences (interactively) and major advertisers are
participating in integrated programming to better control the content of new media where
viewers can interact with programming to get further information.
Other changes include a change in the concept of power in the distribution channel with
mega retailers such as Wal-Mart gaining power away from the manufacturers. Value
pricing is attractive to customers and retailers are now wresting power from the
manufacturers who have a difficult time getting consumers to demand their products
when the retailer has the power base. Private label brands are also developing to compete
with national brands and offer lower prices.
The late 1980s and early 1990s saw the introduction of cable television and particularly
MTV. Pioneering the concept of the music video, MTV ushered in a new type of
advertising: the consumer tunes in for the advertising message, rather than it being a by-
product or afterthought. As cable and satellite television became increasingly prevalent,
specialty channels emerged, including channels entirely devoted to advertising, such as
QVC, Home Shopping Network, and ShopTV Canada.
With the advent of the ad server, marketing through the Internet opened new frontiers
for advertisers and contributed to the "dot-com" boom of the 1990s. Entire corporations
operated solely on advertising revenue, offering everything from coupons to free Internet
access. At the turn of the 21st century, a number of websites including the search engine
Google, started a change in online advertising by emphasizing contextually relevant,
unobtrusive ads intended to help, rather than inundate, users. This has led to a plethora of
similar efforts and an increasing trend of interactive advertising.
The share of advertising spending relative to GDP has changed little across large changes
in media. For example, in the US in 1925, the main advertising media were newspapers,
magazines, signs on streetcars, and outdoor posters. Advertising spending as a share of
GDP was about 2.9 percent. By 1998, television and radio had becomemajor
advertising media. Nonetheless, advertising spending as a share of GDP was slightly
lower—about 2.4 percent.
 Chapter 03

DESCRIPTION OF RESEARCH METHODOLOGY

A recent advertising innovation is "guerrilla marketing", which involve unusual
approaches such as staged encounters in public places, giveaways of products such as cars
that are covered with brand messages, and interactive advertising where the viewer can
respond to become part of the advertising message. Guerrilla advertising is becoming
increasing more popular with a lot of companies. This type of advertising is unpredictable
and innovative, which causes consumers to buy the product or idea. This reflects an
increasing trend of interactive and "embedded" ads, such as via product placement,
having consumers vote through text messages, and various innovations utilizing social
network services such as Facebook.

3.1 Data collection

The data have been collected from primary as well as secondary sources. The

primary data includes magazines advertisements, press layouts, posters, hoardings and

miscellaneous media. Secondary data sources include books, thesis, periodicals,

articles, journals, and web sources pertinent to the study. The data were collected from

various pieces of print advertisements, outdoor advertisements which include

advertising campaigns of different assorted brands, using cartoons, caricatures,

fictitious characters, advertising mascots, unusual illustrations and photographs as

visual elements with special emphasis on several reputed brands for better

understanding of the usability and importance of humour in advertising. The data set

also includes teaser campaigns used in indoor and outdoor print advertisements with

case studies of two popular brands and their advertising campaigns —Vodafone India

and Perfetti Van Melle India with special reference to its confectionery units such as

Memos, A/penliebe, Ch/ormini, Sour Marbels, and Happydenl While.

3.2 Methodology
The study highlights on various techniques and tools adopted in executing the advertising

message in various print mediums such as press advertisements, magazines and outdoor

advertising campaigns. Analyses of various trademarks, puppets, anthropomorphic

creatures, moppet, mascot etc were examined for the study purpose. Children makes an

important contribution in advertising, therefore several miscellaneous promotional aids

such as packaging of food items, special gift novelties, stationery designs, toys and

gaming items were also taken as study material, where adoption of comic characters

from graphic novels were incorporated for easy recall and acceptance of the brand .Since

advertising creates brand identity and image for a product, therefore it is an important

issue to understand the effective and creative process of advertising which maintains the

growth and trust of a product.

3.3 ORGANISATION OF THESIS

The thesis has been divided into five chapters. The first chapter introduces the

subject with a brief account on the background of advertising, research problem, scope

and objectives, limitation of the study, and hypothesis, highlighting the importance of

humour as advertising appeal in Indian print advertisements. The chapter also focuses

on the fundamental nature of cartoons and caricatures as visual mode of expressing the

advertising message. The review of literature also forms the first chapter which is

divided into three parts - History and evolution of advertising in India, changing aspects

of execution techniques and creative visualisation of advertising appeal in Indian print

advertising, and miscellaneous studies appropriate to the study.

The second chapter highlights upon the historical development of Indian

advertising and the development of pictorial narration in India. The chapter also focuses

on the evolution and expansion of humourous drawings in India which proliferate the

advent of comic culture in India and the application and rendition of cartoons and

caricatures in print advertisements.

The third chapter deals with the approach of advertising strategy, creative

techniques, design elements, rendering and visualisation of the advertising messages in

print advertisement. The chapter also deals with the study of the advertising campaigns

of various assorted brands using effective and creative cartoons and caricatures,

fictitious characters for visual and humourous appeal. The chapter also focuses on the

association of cartoons, caricatures and other imaginative characters with children in

advertising and their responses towards such advertising which had changed the

perception of comic reading in generalised form to persuade and convince the target

audience. The chapter also focuses on the case studies of the advertising strategies of

Vodafone India and Perfetti Van Melle India with special reference to its confectionery
units such as Memos, A/penliebe, Chlorminl, Sour Marbels, Happydenl Wñ/ie through

various print advertisements and teaser campaigns for better understanding of the

application of cartoons and caricatures in advertising.

The fourth chapter examines the changing trends of creativity in Indian

advertising. The chapter also analyses the effectiveness of cartoons and caricatures in

advertising with modern means of communication. The chapter also analyses and

reviews the creative approaches and visual elements used by different brands to

understand the application of modern technological tools such as computer generated

image, animation, digital visual effects, and different design elements adopted in recent

time for humourous appeal in advertising.

The fifth Chapter, also the final chapter forms the conclusion, presenting the

summary of the discussions in the preceding chapters which include some suggestions

and recommendations for further studies on advertising.

 Plate 1.1(a): Cover of Shankar’s feel/yMagazine

Plate 1.1(b): Cartoon strip from Shankar’s Weekly Magazine

47
Plate 1.2 : R K Laxman’s Common Man’

Plate 1.3 : Cartoon strip by R K Laxman

Plate 1.4 : falls, the brand mascot of Asian Paints by R.K Laxman

Plate 1.5 : A typical sketch drawn for /IYa/pvo’/ Days by R.K Laxman
 Plate 1. 6: Five caricature heads, Leonardo Da Vinci

Plate 1.7: The Promís’d I-horrors of the French /nøasion,1796

50
Plate 1.8 : William Hogarth’s caricature, A Rake’s Progress series

51
 Plate 1.9 : Santa Claus, Thomas Nast

Chapter 04
Importance of Advertising

Everything you need to know about importance of advertising. Advertising is an integral part of
our economic and social life. As a powerful technique of promoting sales, it has been doing
wonders in the area of distribution.
The role of advertising can be analyzed from five different angles namely, manufacturers;
middleman; sales force; customer and society.
For an organization, advertising is important both as a promotional and as a marketing activity.
As a business activity it holds its importance for an economy.
Some of the importance of advertising are:-

A: Benefits to Producers and Manufacturers – 1. Successful Introduction of New Product 2.

Creation of Regular Demand 3. Impressing New Uses of a Product 4. Enjoy Economics of Scale
5. Confidence in Facing of Competition 6. Creation of Corporate Image

B: Benefits to Customers – 1. Enhanced Knowledge 2. Planning before Shopping 3. Reasonable

Prices

C: Benefits to Salesman – 1. Less Time 2. Easy Convincing 3. More Coverage 4. Ready to

Receive

D: Benefits to Society- 1. Improved Standard of Living 2. Creates Employment Opportunities 3.

Solves Societal Problems

4. Encourages Media.

Advertising has gained a significant place in the different areas of society. It has now entered
the areas of politics, social achievements and economic growth.

52
Importance of Advertising: For Manufacturers, Middlemen, Consumer and Society
Importance of Advertising – With Benefits to Manufacturer, Middlemen, Sales Force,
Consumer and Society
Advertising is an integral part of our economic and social life. As a powerful technique of
promoting sales, it has been doing wonders in the area of distribution. The role of advertising can
be analyzed from five different angles namely, manufacturers; middleman; sales force; customer
and society.

1. Importance of Advertising to Manufacturers:

Every manufacturer and producer, who wants to make available his goods to people at profit, do
take full advantage of advertising to popularize their products and services.

The major benefits that are available to manufacturer are:

(a) Increasing Sales – Even the best product cannot be sold on its own, unless people know about
the product. In today’s highly sensitive and competitive market, a firm cannot maximize its
profit, unless it multiplies its sales turnover. A regular and frequent advertising helps the
producer to obtain this objective.

(b) Helps in maintain existing market and explore new market – Every forward looking company
eyes on future prospects without losing its current position. A company’s success is reflected by
how it maintains its current position and future expansion. Advertising helps the manufacturer, in
this regard, to face competition effectively.

(c) Helps to control price of product – Through advertising, it is possible to control price of the
product especially in retail market. Very often greedy retailer charge higher price from the
customer. The manufacturer can help them by printing the price on the packages.

2. Importance of Advertising for Middlemen:

Middlemen are essential link between producer and consumer.

The benefits which advertising offers to middlemen are:

(a) Quick Sale – Every retailer holds stock of different producer. Advertising, by making the
range of products known to customer, helps the retailer to quickly sell its stock.

53
(b) Act as Salesmen – Advertising has been rightly described as salesmanship in print.
Advertising perform task of travelling salesmen at least cost. That is why; most of the retail
organizations do not employ large number of travelling salesman. Instead, they spend on
advertising, which attracts customers to the shops, where counter salesmen cater to their need.

3. Importance of Advertising for Consumer:

Ultimate aim of all marketing efforts is to satisfy the needs of the customer by providing the
goods and services.

Advertising is essential for consumer due to following reasons:

(a) Quick decision making and saves time – In today’s competitive world market is full of
different types of product which satisfy needs and want. Every producer claims his product to be
superior one. In such situation, advertising helps the consumer in comparing features; price;
utility; quality etc. of the product, and select the best.

(b) Better Quality Product at Reasonable Price – Advertising promotes good quality product by
printing their image in the minds of consumer. Due to this, bad product goes out of the market.
Moreover, it increases competition in the market, which helps consumer in getting the product at
reasonable price.

4. Importance of Advertising for Society:

Advertising is not only beneficial for manufacturer; retailer and customer but also for the society.

Various benefits offered by advertising to the society are:

(a) Uplift Standard of Living – Advertising has made it possible for general public to use those
products which were luxuries of yesterday. Advertising increases the consumption pattern, it
results in more production at least cost, which in turn increases earning of the society and thus,
standard of living of the society.

(b) Generates Employment – Advertising generates gainful employment opportunities both

directly and indirectly. It directly generates employment painters; artist; photographers;
technician etc. Indirectly, it gives employment by supporting all those industries like – paper;
colour; electronic etc. which supply inputs for the advertising activities.

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Importance of Advertising – As a Promotional, Marketing and Business Activity
For an organization, advertising is important both as a promotional and as a marketing activity.
As a business activity it holds its importance for an economy.
1. As a Promotional Activity:
Advertising could have following effects:
i. To generate awareness for the product.
ii. To impart knowledge about product to the customer.
iii. To cause the change in attitude.
iv. To induce trial behaviour for the product.
v. To have direct purchase action.
Advertising effects differ in different market situations. For a ‘less expensive frequently
purchased product’ the use of repetitive advertising may cause trial purchase. In case the trial
experience is satisfactory, it is expected to result into final purchase of a product. For routine or
habitual kind of purchases like purchase of glucose biscuits, the mere exposure to an
advertisement is likely to trigger a direct purchase action.
On the other hand, for the purchase of a product like automobile advertising is primarily used to
generate awareness and impart knowledge about the product. Since such decision-making
situation requires more of buyer’s deliberations, it is less likely that attitude change occurs due to
advertising only. The use of repetitive advertising, however, provides reassurance like in the case
of Surf Excel ads and helps in reinforcing the product choice.
2. As a Marketing Activity:
Advertising holds its significance for decisions concerning other promotion tools as well as other
marketing decisions concerning product, price, and place. The nature and scope of advertising
for a product in turn depends upon the mix of various marketing tools in a given situation.
Product is at the very heart of an advertising programme. A, successful advertising programme
requires knowledge about product attributes and a clear notion about its positioning. Packaging,
trade mark and various other attributes of product as its taste, colour, texture, aroma, style and
design are other essential elements of effective advertising.
The potential of these attributes in affecting product sale is analyzed before incorporating them
in the advertising message. Though advertising does not add any intrinsic value to the product, it

55
makes possible selling the product by informing the consumers. Advertising is one of the major
parts of brand building exercise.
In case advertising carries a price tag, it helps in comparison between various brands also.
Otherwise the media choice, the message content, and its execution for an advertising activity do
convey a certain notion about the product price to the consumer. There is a perception about
positive relationship between the product price and the level of advertising activity for a product.
Brands with relatively high advertising budget are presumed as charging premium prices and
brands that spend less than their competitors on advertising charge lesser price. At each product
life cycle stage the level and the kind of advertising is related to its price strategy. The positive
relationship between high relative advertising and price level is supposed to be stronger for
products in the later stages of PLC. This is especially found true for market leaders and for low
cost products.
The level of advertising exposure is related to distribution objectives and strategies. Product
distribution can be intensive or selective or exclusive. Advertising as a mass communication
mode facilitates an intensive distribution of product. It works as a pull factor in the market and
creates demand for the product. In case of selective or exclusive distribution strategy adopted for
the product, advertising is mainly used to provide information about the product availability.
Advertising is often regarded as ‘salesmanship in print which pre-sells the product verbally and
makes it comfortable for sales personnel to approach the target audience. Advertising facilitates
the implementation of various sales promotion techniques in the market. Quite often, marketers
make use of sales promotion tools like gifts, coupons, discounts, etc. to give immediate boost to
the declining product sales or to counter the competitive strategy.
Advertising creates awareness about these tools and makes the environment conducive to bring
success in terms of increase in product sales. Similarly, for public relation and publicity to be
effective in their goals, advertising provides a viable platform to make people aware of such
promotional initiatives.
In a nutshell, advertising appears to be one among many marketing activities being taken up to
communicate with the customers. An insight into the interdependencies between advertising
decisions and those on product design, pricing and dealer’s choice. Thus, the ability of
advertising decisions to contribute to the goals of an organization depends on other decisions and
also the coordination with these decisions.

56
The productivity of advertising decisions increases when the quality of decisions in other areas
of marketing mix improves. There is some kind of communication which occurs at every phase
of marketing and at the end product itself performs the principal and decisive act of
communication.
But when advertising is used it generally assumes a dominant position in the overall marketing
and promotional strategy of an organization. The actual aim of advertising is therefore not to
‘sell’ but to induce people to try the product or service offered and to prepare them for
satisfaction in its use by ‘pre-sampling’ it verbally.
Over the years, advertising industry has witnessed the annual growth of over 15 per cent and it
reflects the buoyancy and optimism in Indian economy. The booming stock market, price
rationalization across categories, exploding real estate and entertainment industry has opened up
new markets for the advertisers.
Along with Telecom and Auto sectors the growth of advertising industry is driven mainly by
advertising for new product categories including Mutual Funds, IPO’s, Aviation and also the
increased ad spend for rural markets and the markets with low price points. There is reported an
increase of 45.5 per cent in inbound traffic and additional earnings of Rs 8,274 crores in the year
2005 over that in the year 2003.
3. As a Business Activity:
Advertising as a business activity also has its importance in an economy. The size of advertising
industry, rate of increase in its profitability increased budget allocations for ad spend at the
organizations level, and the multiplicity of products being advertised provide evidence in this
regard.
Advertising informs consumers about the availability of substitutes and helps them in making
informed choices of the products. Consumers learn about new and improved products and how to
use the product innovations for their best purpose.
Advertising affects the sensitivity of product’s demand to changes in its price. But there are no
conclusive evidences that whether advertising reduces or increases price elasticity of demand.
According to one school of thought advertising makes people to learn more about the product
and it substitutes which may reduce the price elasticity of a product’s demand.
On the other hand, the counter view holds that advertising provides information about the
alternatives and makes the demand more sensitive to differences in price across various

57
alternatives. There is also research evidence which supports both the views and holds that
‘advertising not only provides information about which substitutes exist, it also provides
consumers with recall cues so that they consider more substitutes at the time of purchase’.
From producers’ perspective, the increase in product demand due to advertising enables
production at a large-scale. The large-scale production brings economy of scale and affects the
cost of production and in turn the product price. In other words, advertising may be considered as
a cost reducing exercise taking place due to a rise in product demand.
Advertising is not just demand catalyst; it leads to changes in people’s lifestyle too. Advertising
mirrors fashion and design. The exposure to new and improved products, new consumption
situations, new activities and new values encourages aesthetic sense in consumption decisions.
Some of the products, through their repeated exposure at times, become a matter of lifestyle
statement for its consumers.
In a nutshell, when economies achieve abundance, the situation where supply exceeds demand
advertising informs and persuades its members with respect to goods, services, ideas, people and
places and creates demand in the economy.
Advertising is the most important part of functioning of market economies. It helps firms to enter
the market and facilitates the growth of market economic systems based on competition and
availability of information. It is a useful tool for sustaining honest and ethically responsible
competition which works as an impetus to the economic growth.
Growth of media, whether it is print or broadcast, undoubtedly is based on its content. To sustain
its growth, media houses always attempt to improve TRP’s (i.e. target rating points which shows
media preference among its audiences) of their programme/editorial content. There is an
expectation that good TRP’s will attract advertisers. At times, the content is adjusted to the
requirements of the advertisers to ensure the continuity in the flow of advertising revenue which
usually is the major source of revenue for media.
Advertising has an immense potential for employment generation in the economy. It involves
multiplicity of advertising activities involved in the development of an ad which add to its scale
of operation in the economy.
It gives boost to creativity and creates more jobs for copywriters, art directors, film producers,
researchers, analysts and many other people associated with advertising industry. The creation of

58
more and better number of jobs lead to higher levels of income for the people and thus provides a
more decent and human way of life for them.
Since its origin, advertising has undoubtedly been an integral part of economic and socio-cultural
growth of any market based economy. Now there is a global concern about advertising for its
role in saving the earth in the wake of deteriorating environment and the need for sustainable
products. At the same time, ‘…. advertising has power to dictate. The cumulative effects of non-
stop ads on television, radio, print, and outdoor ads can be overwhelming and there is an
involvement of advertising in the increased popularity of socially questionable behavior-cigarette
smoking. The evidence demonstrating the manipulative power of advertising is shaky because so
many factors contribute to the choices we make. Still advertisers are not objective and often slant
and omit information to their benefit.’

Importance of Advertising
Advertising has become increasingly important to business enterprises- both large and small.
Outlays on advertising certainly attest to the management’s faith in the ability of advertising
efforts to produce additional sales.
It would be difficult to conceive of a firm that does not attempt to promote its product in some
manner or another. Most modern institutions simply cannot survive without advertising.
Non-business enterprises have also recognised the importance of advertising. The attempt by
army recruitment is based on a substantial advertising campaign, stressing the advantages of a
military career. The health department popularises family planning through advertising.
Even labour organizations have used advertising to make their viewpoints known to the public at
large. In fact, it is reasonable to say that promotion now plays a larger role in business than it
ever did in the past.
If for no other reason than that it is an activity that employs several thousands of people,
advertising assumes real economic importance. More importantly, however, is the fact that
effective advertising has offered to society benefits not otherwise available.
For example, the criticism that “advertising costs too much” views an individual expense item in
isolation. It fails to consider the possible effect of advertising on other categories of expenditure.

59
Advertising strategies that increase the number of units sold stimulate economies in the
production process. The production costs assigned to each unit of output are lowered. Lower
consumer prices then allow these products to become available to more people.
Similarly, the price of newspapers, professional sports, radio and TV programmes, and the like
might be prohibitive without advertising to share the expense. In short, advertising pays for many
of the enjoyable entertainment and educational aspects of contemporary life, as well as lower
product costs.
The criticism that “most advertising messages are tasteless” and that “advertising contributes
nothing to society’s well-being” sometimes ignore the fact that there is no commonly accepted
set of standards or priorities within our social framework. We live in a varied economy
characterized by consumer segments with differing needs, wants and aspirations. What is
tasteless to one group may be quite informative to another.
An advertising strategy generally suffers from the averaging problem that escapes many of its
critics. The one generally accepted standard in our society is freedom of choice for the consumer;
customer buying decisions will eventually determine what an acceptable practice in the market
place is.
Advertising has become an important factor in the campaigns to achieve such societal-oriented
objectives as the discontinuance of smoking, family planning, physical fitness, and the
elimination of drug abuse. Advertising performs an informative and educative task that makes it
extremely important in the functioning of the modern Indian society.
Importance of Advertising – To Producer, Consumers and Society
Advertising has become inevitable in the contemporary business environment. It is necessary for
producers, consumers as well as the society.
(A) Importance of Advertising to Producers:
1. To Introduce New Products:
Advertisement of the new product is necessary so that consumers become aware about the
product, its availability, its utility, its price etc., thus, advertising is crucial to promote the sale of
a new product.
2. To Induce Potential Customers:

60
Advertising is one of the best means by which the sale of an existing product can be increased.
For this purpose, the advertisement should emphasize the usefulness of the product, its quality,
price advantages, etc., so as to win over the potential buyers and make them actual buyers.
3. Reminding Users:
In a competitive market, new products are introduced frequently. All these products are
advertised in the market. As a result, old brands are likely to be forgotten by the consumers. To
offset this possibility, manufacturers continue to advertise their products to maintain the buyers’
interest. Thus, advertisements are also designed to serve as a reminder to existing customers.
4. To Create Brand Image:
Business firms very often advertise for establishing an image for the product and creating
customers’ loyalty for that product. When customers develop brand loyalty, they are unlikely to
switch to other brands easily.
5. To Highlight Brand Character:
For certain products, consumers feel that a particular characteristic is very important. Its
existence determines the buyer’s choice of a particular brand out of several brands. If the product
has that feature, advertising is used to stress it and demonstrate its advantages.
6. To Educate Customers about New Uses of a Product:
Advertising is sometimes, used to convey new uses of an existing product to the customers or to
draw their attention to some new features of the product. The basic objective of advertising in
this case is to convince the customers about the superiority of a product in comparison with other
products in the same line.
7. To Support Dealers:
Sometimes, the aim of advertisement is to provide support to dealers and distributors. Thus, there
are many advertisements in newspapers in which the list of dealers and distributors is given
along with the particulars of the product.
(B) Importance of Advertising to Consumers:
1. Improved Quality of the Product:
It is absolutely essential to improve the quality of the product to maintain confidence of the
customers and ensure brand loyalty. Hence, advertised goods are usually of good quality.
2. Protects Consumers from Exploitation:

61
Advertising also acts as an information service and educates the consumer. It enables him to
know exactly what he wants and where to get it.
3. Reduction in Price:
Advertising stimulates production and reduces the cost per unit. This reduction in the cost is
generally passed on to the consumer and that is why price of well-advertised goods is found to be
generally lower than other goods of the same quality which are not so well advertised.

4. Facilitates Direct Selling:

Advertising also makes it possible to sell direct to the consumer by Mail Order Business. Thus,
consumers from remote areas can also enjoy the comforts and luxuries available only in the cities
or towns. In this way advertising improves social welfare.
5. Improved Consumer Satisfaction:
As manufacturers control the price of well- advertised goods, price-cutting is not available to the
retailers and the shopkeepers as they try to attract customers by giving better and more
satisfactory service.
6. Enables Comparison:
Advertising helps consumers find best product for themselves by facilitating comparison among
various products available in the market. When consumers are aware about the range of products,
they are able to compare the price, quality and characteristics and pick up the best from among
them.
(C) Importance of Advertising to Society:
1. Advertising helps in increasing awareness among people. Advertising dealing with social
issues such as child labour, liquor consumption, female foeticide, smoking, family planning etc.
and promotes social welfare.
2. Advertising provides direct employment to large number of people engaged in designing,
writing and issuing advertisements. Indirectly, advertising increases employment opportunities
by increasing the volume of production and distribution.
3. Advertising helps in improving the standard of living of people by promoting variety and
quality in consumption. It educates people about new uses of a product and provides information
for developing better ways of leading life.

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Importance of Advertising – Marketing, Politics, Consumer Satisfaction and Economic
Growth
Advertising has gained a significant place in the different areas of society. It has now entered the
areas of politics, social achievements and economic growth.
1. Marketing:
Advertising assists in the realisation of marketing objectives of a company within a specified
period of time. It is a form of communication which informs, persuades and reminds customers
of the qualities of the product. Potential customers are approached through suitable advertising
media.
The producer can put forth the appealing points of his product to influence and attract customers.
Advertising can also evaluate the desires and needs of the people. The four functions of
advertising are – creating demand, retaining the market for established products, increasing the
use of the product, and image-building of the producers.
Advertising can develop the marketing system. New products are made familiar to consumers
through advertising. Middlemen can increase their profits because advertising helps in the
expansion of their sales. The consumers needs and wants are assessed so that suitable products
may be provided for them.
The upgrading of marketing is possible through advertising. Today, the role of advertising has
increased so widely that it has become an essential function of business. No business can succeed
without suitable advertising, for advertising makes people aware of new products, and of the new
want-satisfying attributes of these products. Advertising has become the backbone of modern
national and international marketing.
2. Politics:
The significance of the role of advertising in politics becomes vividly clear when political parties
resort to different media of advertising to present their election manifestoes and promises to
serve the public. The newspaper, the radio, the television and magazines are employed to project
the democratic needs of the country, so that the public may judge their qualifications and
integrity and cast their valuable votes for the most suitable candidates.
Many statesmen have appreciated the role of advertising in politics and business. Sir Winston
Churchill once said that advertising brought together fertile unions. Man can set goals for better

63
homes, clothing and food by selecting appropriate suppliers. Franklin Delano Roosevelt once
said that he would go into advertising in preference to other kinds of business.
3. Consumer Satisfaction:
Advertising promotes consumer satisfaction. It helps them to select the more useful, cheaper and
better quality products. The prices of the same type of product may vary from producer to
producer. Advertising helps people to choose the best and the cheapest goods. Life style and
value systems are modified by advertisements. In India, the materialistic attitudes have won over
spiritual thinking through advertisement.
4. Economic Growth:
Advertising influences the economic growth of a country. The people, the producers and the
working class are made aware of the government policies and plans for the economic
development of the country. These policies and plans are delivered to the public through
newspapers, radio and television with a view to ensuring their participation in the economic
growth of the nation.
Advertising is considered a source of market power. It promotes competition, which is desirable
for the growth of a free economy. It helps maintain competition and discourages monopoly.
Prices are maintained at a competitive level to benefit the masses and producers.
Since customers and producers are well aware of the differing demands of society, economic
development is channelised towards definite objectives and goals. Whatever is produced cannot
be sold and whatever is in demand cannot be produced unless society and the economy can
afford to do so. In this way, scarce resources can be exploited for more essential, purposes.
Importance of Advertising – For Manufacturer, Consumer and Society
In modern marketing, advertising plays a very important role in creating awareness and demand
for the products.

Its importance can be explained as follows:

1. Role of Advertising Related to Manufacturers:
Advertising plays a very important role for manufacturers.

The same is explained as follows:

i. Reputation and Goodwill:

64
Advertising helps to popularize a product among the consumers. It builds a favourable image
about the product in the minds of the consumers and hence enhances the image of the brand. This
builds long term goodwill and reputation for the organization.

ii. Wider Market:

Advertising creates awareness about the products on a large scale. It also highlights the benefits,
advantages and the method of usage of the product. Hence, a customer may get interested in
purchasing the product. Advertising thus increases the demand for a product. Since advertising is
done on a large scale, the demand of the product increases in wider and unexplored markets too.

iii. Increases Production:

Advertising helps in creating awareness about a product which leads to increase in its demand.
However, the level of production needs to be increased in order to meet this increase in demand.
The producer thus tries to introduce innovative production techniques to increase the level of
production. The innovative production techniques not only help to increase the level of
production but also improve the quality of the product. Most modern production techniques also
ensure a reduction in the overall cost.

iv. Creation of Demand:

Advertising helps in keeping the consumers informed about the arrival of a new product. This
arouses the interest of the consumers in the product and motivates them to try it out once. Thus,
advertising leads to the creation of demand for the product.

2. Role of Advertising Related to Consumer:

Advertising helps the consumers in the following ways:
i. Quality Products:
Advertising plays an important role in the modern competitive market. It keeps the consumer
posted about the latest products available in the market. Since the customer is aware of the
products, he selects the product that is best suited for his needs. At the same time, advertising
also keeps the producers updated about the competing products available in the market.

This enables a producer to improve the quality of his product in comparison to the competitors’
products. To ensure that customers are retained and new customers are attracted, the

65
manufacturer has to adhere to quality standards and offer the best quality of goods to the
consumers.

ii. Knowledge of New Products:

Advertising provides information about new products to the consumers. Thus, consumers can
make an informed decision and buy a product that suits their preferences.

iii. Saves Time and Money:

Advertisements provide detailed information about the product to the consumers. The consumer
thus gets the detailed information effortlessly and does not have to spend any additional time and
money in procuring the information.

iv. Low Price:

Advertising helps in generating demand for the product. This encourages the manufacturer to
increase production. Increase in production leads to lower cost of production per unit. This
benefit is ultimately passed on to the consumers in the form of reduction in price.

v. No Cheating:
Advertisements create awareness about the product. It promotes all the features and attributes of
the product. Since the consumer is aware about the product, the manufacturer cannot supply an
inferior product than what was promised. In case the manufacturer tries to do so, the consumers
can seek protection under the Consumer Protection Act.

3. Role of Advertising Related to Society:

The role of advertising related to society is as follows:
i. Employment Opportunities:
Advertising is a large function that needs the services of artists, painters, writers, designers,
publishers etc., every single day. All the activities related to advertising need human resources to
work creatively, efficiently and constructively. Thus, advertising creates employment
opportunities for a large section of people.

66
ii. Standard of Living:
Advertising- helps in launching many new products in the market. Thus, the consumers become
aware about the products available in the market. Purchasing these products helps in raising their
standard of living. Also, advertising raises the demand for the product and hence the level of
production goes up. This increase in the level of production leads to reduction in cost.
Consumers can thus avail products at a much lower rate which helps in raising their standard of
living.

iii. Education / Educative Value:

Advertisements provide qualitative information about various products using facts, figures,
slogans etc. This helps in educating the general public about the benefits of the products.

iv. Exchange of Culture:

Advertising plays a very important role in highlighting the culture of a nation across various
nations. Since the advertisements have educative value, they affect the thoughts, gestures and
behavior of people.

v. Low Cost:
Advertisements help various media like newspapers, magazines etc., to cover a major portion of
their costs. This cost benefit is passed on to the readers.

Importance of Advertising – With Direct Beneficiaries: Benefits to Producers and

Manufacturers, Customers, Salesman and Society
Advertising is considered to be an important and compulsory activity on the part of
manufacturers. They are compelled by the recent developments and the cut throat competition
resulting into the question of survival. It has become promotional tool not only for producers but
also for consumers and society at a large to know about the availability of goods and services.
Mainly, the four groups can be identified who are the direct beneficiaries of advertising. They
are the producers and manufacturers, customers, salesmen and the society as a whole.
Importance # 1. Benefits to Producers and Manufacturers:
Every producer introduces a new product or services to the consumers. Every product is distinct
and unique in nature as compared to other competitors. Therefore, it is necessary for him to make

67
it known to the users, convince and appeal to them to create demand. In this way, he finds to
reach the consumers and operate profitably in the market. His survival and continuation depends
on has best he reaches the users and makes them to buy his/her products.
Therefore, the following benefits accrue to producers:
i. Successful Introduction of New Product:
The advertising is undertaken to introduce an altogether new product. There cannot be 100%
similarity between two products. A producer can introduce a new product by explaining the
unique features of his product and can create awareness among consumers in order to gain their
acceptance. Almost all producers introduce their products to market through celebrities who have
powerful impact on consumers. An indelible impact can be created by effective advertisement
which lays foundation for rushing of a product in any intended market.
ii. Creation of Regular Demand:
Advertising is helpful to create regular and steady demand for products. The public memory is
short, if an advertisement is stopped, there are chances of consumers forgetting about that
product and direct to other products which repeatedly appear before them. Production and
marketing heed to be continuous and throughout the year, both in busy and off seasons.
Therefore, manufacturers advertise about the usefulness of product in all the seasons.
iii. Impressing New Uses of a Product:
The consumer’s base is to be expanded. The more and more uses of a product are convinced, the
widest base for product can be created. It warrants production on large scale to meet the demand
of increased number of consumers. It is helpful in explaining how a single product is useful to
every kind of customers. By promoting different uses of a product, advertising helps
consumption of that product at a variety of occasions. This will result in increased product usage
and the demand for the same. A producer can shift from small scale to medium and to large scale
production.
iv. Enjoy Economics of Scale:
As advertising helps to create and maintain sustained demand throughout the year, the large scale
production needs to be undertaken. With large scale operations, the cost of production decreases
and results in increased earnings. Because, there are certain fixed costs which are incurred at all
levels of production. If production is at small scale, the burden of fixed costs will be more and

68
profitability would be lesser. On the contrary, the large scale production reduces the average cost
per unit and increase earnings.

v. Confidence in Facing of Competition:

Advertising is an attempt to attract consumers. In most of the advertisements, the producers
makes efforts to convince the superiority of products by comparing with that of competitors
brand loyalty is created by highlighting the strong uses of one’s products. It is quite common that
the products known to customers are demanded by them in market. Most of the children demand
products in the market by being impressed and influenced by advertisement. Lack of information
throws away any producers out of market.
vi. Creation of Corporate Image:
Advertisement is not only carrying messages of a product but also the history and culture of a
firm. It helps in creating a good image and reputation for a firm and helping to fight competition
in the market. It ensures repeated demand from the satisfied services provided by a firm.
Majority of consumers can repeat the names of Tata, Reliance, Airtel, Sony, Vodafone etc.
Because, they have created their corporate image and become household names.
Importance # 2. Benefits to Customers:
The customers in particular and the whole society in general shall be benefited from the
advertisement. The advertisements not only provide information about products but also some of
healthy lips, psychological changes, good behavior etc. This will enhance the understanding
level and knowledge of remote areas.
Some of the benefits enjoyed by customers are:
i. Enhanced Knowledge:
An advertisement gives many information relating to product, firm, nation etc. Such information
increases the knowledge base of customers; who can develop the ability of evolution and
analysis. The customers are educated about proper way of using a product, the comparative and
competitive prices, promotional offers with limited time frame etc.
These will certainly help customers and general public to gauge the growth and sophistication of
manufacturing sector, distribution efficiency and role of a firm in national development also. For

69
instance, the water purifier advertisement enriches the knowledge of safe drinking water,
motorbike advertisement tells about economy in oil usage etc.
ii. Planning before Shopping:
As the advertisements give almost every information about product, availability, prices offers
etc, the customers can plan well before going for shopping. It may be about availability of family
budget, how to bring a product, packing, payment, quantity needed etc. A planned shopping
gives happiness and the unplanned results into either dissatisfaction or sadness. Where? When?
How much? What? Who? Of the shopping can be precisely planned and executed.
iii. Reasonable Prices:
The advertisement facilitates quick sales and also increased demand. These will force to
undertake production on large scale and this will reduce the per unit cost of production. The
result of this will be in reduced prices and availability of needed goods at reasonable prices.
Importance # 3. Benefits to Salesman:
The personal salesmanship is not possible and not suitable also for all the products. It has limited
access. This requires more time to convince all the customers personally about each and
everything about product. Therefore, the advertisement reaches the customers much before a
salesman visits.
The benefits enjoyed by salesmen are:
i. Less Time – They need to explain only those things not cleared by an advertisement.
Therefore, the salesmen have to spend little time with customers.
ii. Easy Convincing – As the advertisements had done some part of giving information to
customers, salesmen can very easily convince the customers.
iii. More coverage – The necessity of spending less time for each customer definitely helps
salesmen in covering more number of customers in a single visit.
iv. Ready to receive – The brand image created by advertising prepares the ground for the visit of
salesman. In fact, the customers wait for the visit of salesman to get confirmed about the
advertised products.
Importance # 4. Benefits to Society:
While the manufacturers, customers and salesman are the direct beneficiaries, the indirect
benefits will be for the whole society. Advertisements introduce new products and services. This
will help in raising the standard of life of people. There will be peaceful life among the people

70
when they regularly get what they wish. Advertising is emerging as a profession which offers
vast employment opportunities. All Medias of advertising flourish in operations and provide
solution to many of the societal problems.
The society benefits in the following ways:
i. Improved Standard of Living:
Advertisement introduces successfully the new variety of products and convinces about the
reasonableness of prices. It also educated the people regarding the use of products, better ways of
life, healthy family etc. The matured thinking about their life and acquiring new products will
increase the standard of life. For example, Ola cab, Uber services have reached customers
through advertisement and people prefer cabs to bikes or auto services. This makes their life
comfort.
ii. Creates Employment Opportunities:
With the technological advancements, the variety of Medias has made their entry in advertising
sector. Advertising agencies need designers, copywriters, graphic designers, media planners,
production houses and many other agencies. Thus, the advertising sector generates direct
employment to large number of creative and enthusiastic people.
iii. Solves Societal Problems:
In every society, there are problems like drug addiction, illiteracy, female feticide, gender bias
etc. The advertisement helps in fighting there societal problems. The products are offered to all
types of customers regardless of the caste, religion, and creed, such advertisements plead about
eradication of casteism.
iv. Encourages Media:
Advertising is a good source of revenue which encourages entry of number of agencies. The
press media gets sustenance due to good circulation of newspapers and at reasonable price. Press
media cannot continue only with price paid by the readers, the advertisements bring sizeable
amount revenues and it will be a strong financial support for the press.
Importance of Advertising in the Retail Sector
Advertising is not only a provider of information about products, services, and availability at
different retail locations, but also an important link between the advertiser and the receiver of the
message in the retail sector. Its imperativeness has increased in this era of ‘globalization and
liberalization’ around the world.

71
It has certain benefits not only for the manufacturers and traders but for the retailers as well.
Raymond, the apparel retail chain, primarily used television and print advertising to promote the
experiential aspects associated with shopping at its stores.
Benefits of Retail Advertisements for Customers:
The benefits of retail advertisements for customers are as follows:
i. It helps in creating awareness among the customers about the existence, prices, and availability
of products at different locations
ii. It educates customers about new products and their diverse uses
iii. It increases the utility of existing products, and
iv. It encourages manufacturers to improve the quality of products through research and
development. Thereby it ensures the supply of products of better quality to customers.

Importance of Advertisement – Introduction of New Product, Mass Appeal, Increasing

Sales Volume, Providing Information to Customers and a Few Others
1. Introduction of New Product:
Advertisement helps to introduce a product to the customers by providing every detailed feature
about the product. Customers are introduced with the new products available in the market and
are induced to buy the new product available. Advertisement displays the features, uses and
benefits of the new product. Advertisement draws the attention of the prospective buyers, creates
consciousness among the buyer about the need for the product and creates demand for the
product.
2. Mass Appeal:
Advertisement has a mass appeal and can create demand amongst a large number of customers
and can stimulate the interest of the large number customers. This helps to create a large market
base for the firm.
3. Increasing Sales Volume:
Advertisement creates and increases demand of the consumers for the product and thus helps to
increase and maintain the sales volume. Advertisement also helps to expand the scope of the
market geographically. Advertisement induces the current customers to buy the product and aims
at retaining the current customers and also attracts new prospective customers towards the

72
product and converts them into loyal customers. It not only assures maximising current sales
volume but also improves future sales volume.
4. Providing Information to Customers:
Competitive business environment requires efficient communication of information to the
customers about the product. This helps customer in their buying decision. It provides
information regarding the quality, weight, price, size, packaging and the brand.
5. Cost Effective:
Advertisement is a cost effective tool for promotion of a product. Wide reach of advertisement –
its ability to reach a large number of targeted customers simultaneously and its long lasting
impact on the mind of customers makes this mode of promotion more cost effective in
comparison to other promotional techniques like personal selling.
6. Long Lasting Impact:
Advertisement is an audio – visual mode of communication and hence its impact on the customer
is long lasting and people remember the product for a long time. This improves the popularity
and familiarity of the product. This also enhances the goodwill of the manufacturer.

7. Countering Competition:
Advertisement helps to counter competition. When competition is intense and the competitor
undertakes intensive advertisement to promote their product, it becomes essential for the
marketer to advertise for their product. Advertisement helps to create product differentiation and
build a favourable image in the mind of the consumer.
Importance of Advertising
Nothing except the Mint can make money without advertising. Mass production and mass
distribution totally depend on all forms of advertising and publicity. We can tell numerous
people about a product or service in the quickest time interval at the lowest possible cost.
Advertising by facilitating mass production and mass distribution has provided immense
employment opportunities to people. It is responsible for creating and delivering rising standard
of living to innumerable people. It has made possible tremendous industrialisation and economic
development in many countries. It is the backbone of modern national and international
marketing.

73
Many modern amenities like refrigerators, motor cars, cameras, radio, vacuum cleaners, and
other appliances are sold in mass markets at very reasonable prices —much lower than the prices
at which they were initially introduced in the market. Modern advertising informs, guides,
educates as well as project buyers, so that they can buy intelligently and raise their standard of
living.
In the marketing programme of a business enterprise, advertising is an indispensable tool
supplemented by salesmanship and sales promotion. Advertising is to business what steam,
electric or nuclear energy (motive power) is to industry. The wheels of industry and commerce
cannot move with desirable speed without the propelling power of promotion-mix.
The importance of advertising lies mainly in the assistance that it provides to salesmen in the
process of selling. Advertising allows manufacturers and sellers to place their products before the
likely prospects, to attract their attention and awaken their interest. It provides the likely
prospects with information about the product, and, by the use of apt words, and pictures attempts
to persuade them to buy the product.
Advertising makes an appeal to the prospects to buy and use the product. This prior
communication with the prospects makes the work of the salesman much easier and simpler.
When the salesman goes to visit the prospect with a view to persuade him to buy the product,
advertising has already prepared the customer’s mind to the uses and benefits of the product –
consequently, the salesman does not have to educate the prospect. He has only to remove the
objections of the prospect and apply the close. Advertising thus prepares the ground work for the
salesman to complete his sale.
In recent times, the importance of advertising has increased many-fold due to many reasons. The
complexities of modern distribution have made advertising very essential for successful
marketing of goods.
One factor which has led to this increase in importance is the growth in the size of the market.
Both numerically and geographically, the size of the market has greatly increased, making it
well-nigh impossible for manufacturers to reach the prospects through salesmanship alone.
Salesman can only cover a limited market, while advertising can reach a very large and
geographically widespread market with complete ease.
The introduction of a new product is also made possible by the use of proper advertising.
Advertising prepares the way for the launching of a sales campaign or sales promotion campaign

74
for the introduction of a new product. Creating awareness and interest among the public in
respect of the new product is easily achieved through the use of advertising media.
In this era of fierce competition, advertising comes to the assistance of the manufacturer in
facing the competition and creating and maintaining the demand for his products. Many
advertisers carry on advertising to create a brand image or an institutional image of their
organization.
Advertising is also important for the role it plays in social education and welfare. Advertising
can be successfully used to build up or change public opinion, to create awareness of social
problems, and to introduce social reforms.

75
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