BBA Marketing Advertising and Sales Promotion PDF

Advertising and Sales Promotion Unit-05 Types of Advertising Semester-04 Bachelor of Business Administration - Marketing  Advertising and Sales Promotion UNIT...

Advertising and Sales Promotion Unit-05 Types of Advertising Semester-04 Bachelor of Business Administration - Marketing  Advertising and Sales Promotion UNIT Types of Advertising Names of Sub-Unit Commercial, Non-commercial, Primary demand and Selective Demand, Classified and Display advertising, Comparative advertising, Co-operative advertising Overview This unit begins with an overview of the various types of advertising, including commercial and non-commercial advertising. Commercial advertising encompasses primary demand advertising, which creates demand for an entire product category, and selective demand advertising, which promotes specific brands. It further explores classified and display advertising formats, comparative advertising that directly compares brands or products, and co-operative advertising, which involves collaborative efforts between manufacturers and retailers to share advertising costs and benefits. Learning Objectives In this unit, you will learn to understand the different types of advertising, such as commercial and non-commercial advertising, and their purposes. You will also gain knowledge about primary demand advertising, which creates demand for an entire product category, and selective demand advertising, which focuses on promoting specific brands. Furthermore, you will explore classified and display advertising formats, comparative advertising techniques, and the concept of co-operative advertising, including its benefits and implementation. 2 Types of Advertising Learning Outcomes At the end of this unit, you would acquaint with the methods of measuring advertising effectiveness and role of ASCI in maintaining the ethical nature of advertising. Pre-Unit Preparatory Material  https://www.g2.com/articles/types-of-advertising  https://inkforall.com/ai-writing-tools/copy-testing/types-of-advertising-research/  https://www.letslearnfinance.com/primary-demand-and-selective-demand- differences.html  https://learn.releasemyad.com/what-is-the-difference-between-classified-and- display-ads/  https://www.wordstream.com/blog/ws/2020/01/13/comparative-advertising Table of Topics 1.1 Introduction to Types of Advertising 1.2 Commercial 1.3 Non - commercial 1.4 Primary Demand and Selective Demand 1.5 Classified and Display Advertising 1.6 Comparative Advertising 1.7 Co – operative Advertising 1.8 Conclusion 3  Advertising and Sales Promotion 1.1 Introduction to Types of Advertising Advertising is a powerful tool used by businesses and organizations to promote their products, services, or messages to a target audience. In this unit, you will be introduced to the different types of advertising. You will explore commercial advertising, which is designed to drive sales and generate revenue. Additionally, you will learn about non- commercial advertising, which aims to convey social or public service messages. The unit will also cover primary demand advertising, which focuses on creating demand for an entire product category, and selective demand advertising, which aims to generate demand for specific brands. Furthermore, you will discover classified and display advertising formats, comparative advertising techniques, and the concept of co-operative advertising, where manufacturers and retailers collaborate to share advertising costs and benefits. By the end of this unit, you will have a comprehensive understanding of the diverse landscape of advertising and its various forms. 1.2 Commercial Commercial advertising refers to the promotion of products, services, or brands with the primary objective of generating sales and revenue. It is a paid form of communication that aims to persuade and influence target audiences to take specific actions, such as making a purchase or engaging with a brand. Explanation of commercial advertising: Purpose and Objectives Commercial advertising serves multiple purposes and objectives, including:  Increasing brand awareness and visibility: Advertising helps to create and maintain brand recognition among consumers.  Promoting products and services: Advertising showcases the features, benefits, and value propositions of specific products or services.  Driving sales and revenue: The ultimate goal of commercial advertising is to generate sales, attract customers, and increase profitability. 4 Types of Advertising  Target Audience: Commercial advertising is tailored to specific target audiences based on factors such as demographics, interests, behaviors, and psychographics. Understanding the target audience is crucial for developing effective advertising campaigns that resonate with the intended consumers.  Advertising Channels and Mediums: Commercial advertising utilizes various channels and mediums to reach the target audience. Traditional channels include television, radio, print media (newspapers, magazines), and outdoor advertising (billboards, signage). Digital channels such as websites, social media platforms, search engines, and mobile applications are increasingly popular for reaching wider and more targeted audiences.  Message and Creative Elements: The message conveyed in commercial advertising is crafted to capture the attention and interest of the target audience. It emphasizes the unique selling points, features, and benefits of the product or service being advertised. The creative elements, including visuals, slogans, jingles, and storytelling techniques, are designed to make the ad memorable and impactful.  Call-to-Action (CTA): Commercial advertising includes a clear call-to-action, which is a prompt for the target audience to take a specific action. This can include visiting a website, making a purchase, contacting the company, or subscribing to a newsletter. The CTA is designed to facilitate the conversion of interest into actual customer engagement or sales.  Advertising Campaigns and Strategies: Commercial advertising often involves the development of comprehensive advertising campaigns. These campaigns include a series of coordinated advertisements across different mediums, aiming to create a consistent brand message and reinforce the desired consumer response. Advertising strategies may include selecting the right advertising channels, setting budgets, conducting market research, and measuring the effectiveness of campaigns.  Measurement and Evaluation: Evaluating the success of commercial advertising is essential to measure its effectiveness and return on investment. Key performance indicators (KPIs) such as sales data, website traffic, brand 5  Advertising and Sales Promotion recognition, customer feedback, and consumer surveys are used to assess the impact of advertising campaigns and make informed decisions for future strategies.  Legal and Ethical Considerations: Commercial advertising must adhere to legal and ethical guidelines set by regulatory bodies and industry standards. It should avoid false or misleading claims, ensure truthful and substantiated information, respect consumer privacy, and comply with advertising regulations specific to each country or region. 1.3 Non - commercial Non-commercial advertising, also known as public service advertising or social advertising, refers to promotional messages that aim to raise awareness, educate, and inform the public about social issues, public health, safety concerns, or other non- commercial causes. Unlike commercial advertising, the primary goal of non- commercial advertising is not to generate sales or revenue but to serve the public interest. Explanation of non-commercial advertising: Purpose and Objectives Non-commercial advertising serves a variety of purposes and objectives, including:  Promoting social causes: Non-commercial advertising raises awareness about social issues, such as environmental conservation, public health, education, or human rights.  Advocating behavior change: It aims to influence people's attitudes, beliefs, and behaviors towards positive actions, such as promoting recycling, reducing smoking, or supporting charitable causes.  Providing information and education: Non-commercial advertising informs the public about important topics, such as disease prevention, safety measures, or civic responsibilities.  Target Audience: The target audience for non-commercial advertising can vary depending on the specific issue or cause being promoted. It may encompass the general public or focus on specific demographic groups, communities, or 6 Types of Advertising individuals who are directly affected by the issue at hand. Identifying and understanding the target audience is crucial to effectively deliver the intended message and achieve the desired impact.  Advertising Channels and Mediums: Non-commercial advertising utilizes a range of channels and mediums to reach the target audience. These can include television, radio, print media, digital platforms, social media, billboards, public transportation, and online video platforms. The choice of channels depends on the target audience's media consumption habits and the available resources.  Message and Creative Elements: Non-commercial advertising aims to convey a meaningful message that resonates with the audience and motivates them to take action. The message may include statistics, facts, emotional appeals, storytelling, or testimonials to evoke empathy, inspire change, or raise awareness. Creative elements such as visuals, music, narratives, and compelling storytelling techniques are often employed to engage and captivate the audience.  Partnerships and Collaborations: Non-commercial advertising campaigns often involve collaborations between government agencies, non-profit organizations, foundations, community groups, or corporate sponsors. These partnerships leverage resources, expertise, and reach to amplify the message and maximize the campaign's impact.  Measurement and Evaluation: Evaluating the effectiveness of non- commercial advertising campaigns is important to assess their impact and determine the success of the intended objectives. Evaluation methods may include tracking changes in awareness levels, behavioral change, surveys, focus groups, or monitoring social media engagement. Measuring the campaign's effectiveness helps refine future strategies and optimize the allocation of resources.  Ethical Considerations: Non-commercial advertising campaigns should adhere to ethical principles, ensuring transparency, honesty, and the accurate portrayal of information. It is essential to avoid misrepresentation, exaggeration, or manipulation of facts. Furthermore, respecting cultural sensitivities and diversity in the message and imagery is crucial for effective communication. 7  Advertising and Sales Promotion Non-commercial advertising plays a vital role in raising awareness, educating the public, and fostering positive social change. It can empower individuals, communities, and societies to take action, support causes, and contribute to the betterment of society as a whole. By leveraging the power of advertising techniques and creative messaging, non-commercial advertising serves as a powerful tool for social impact and public service. 1.4 Primary Demand and Selective Demand Primary Demand and Selective Demand are two distinct concepts in the field of advertising. Primary Demand  Definition: Primary demand refers to the demand for an entire product category or industry as a whole.  Objective: The goal of primary demand advertising is to create awareness and generate demand for a specific product category among consumers.  Category Focus: This type of advertising aims to educate consumers about the benefits, features, and relevance of a particular product category rather than promoting a specific brand or company.  Market Development: Primary demand advertising is often used in emerging or evolving markets where consumer awareness and understanding of a product category may be limited.  Industry Collaboration: In some cases, primary demand advertising may be coordinated efforts by multiple companies within an industry to stimulate overall market growth and expand the customer base. Selective Demand  Definition: Selective demand refers to the demand for a specific brand or product within a given product category.  Objective: The objective of selective demand advertising is to persuade consumers to choose a particular brand over its competitors.  Brand Focus: Unlike primary demand advertising, selective demand advertising highlights the unique selling propositions, benefits, and qualities of a specific brand to differentiate it from other offerings in the market. 8 Types of Advertising  Competitive Advantage: Selective demand advertising often emphasizes factors such as quality, price, innovation, customer satisfaction, or brand reputation to create preference and loyalty among consumers.  Market Share: Companies typically engage in selective demand advertising to capture a larger share of the market for their brand, increase customer loyalty, and gain a competitive edge. 1.5 Classified and Display Advertising Classified and display advertising are two distinct formats commonly used in print media, online platforms, and other advertising channels. Here's an elaboration on each of them: Classified Advertising  Format: Classified advertising typically appears in a categorized section of a newspaper, magazine, or online platform, organized by specific sections such as jobs, real estate, vehicles, services, etc.  Concise Format: Classified ads are usually brief and utilize a limited number of words or characters to convey essential information.  Purpose: Classified advertising is primarily used for advertising specific products, services, or offers, typically targeting a specific audience interested in the respective category.  Cost-effective: Classified ads are often less expensive compared to other forms of advertising, making them accessible to individuals and small businesses with limited budgets.  Contact Information: Classified ads typically include contact details, such as phone numbers or email addresses, to facilitate direct communication between the advertiser and potential customers. Display Advertising  Format: Display advertising consists of visually appealing and larger-sized ads that incorporate images, graphics, colors, and other design elements to attract attention.  Creative Freedom: Display ads provide more flexibility for creative expression, allowing advertisers to create visually engaging campaigns that reflect their brand identity. 9  Advertising and Sales Promotion  Brand Promotion: Display advertising is frequently used for brand building and creating awareness among a broader audience.  Ad Placement: Display ads can be placed throughout various sections of print publications or positioned strategically on websites, social media platforms, and mobile apps.  Ad Size and Pricing: Display ads are priced based on factors such as ad size, placement, and reach. They tend to be more expensive than classified ads due to their larger size and design complexity. 1.6 Comparative Advertising Comparative advertising is a type of advertising that involves directly comparing one brand or product to another. Points to understand about comparative advertising:  Definition: Comparative advertising is a marketing strategy where the strengths or advantages of one brand are highlighted in comparison to its competitors. It aims to persuade consumers that the advertised brand is superior or offers better value than its rivals.  Differentiation: Comparative advertising is used to differentiate a brand from its competitors by emphasizing specific attributes, features, quality, price, or performance. It helps create a perception of superiority or distinctiveness in the minds of consumers.  Legality and Regulations: The permissibility and regulations surrounding comparative advertising vary by country and jurisdiction. Some countries have strict guidelines regarding the truthful and substantiated nature of comparative claims to prevent false or misleading advertising.  Consumer Perception: Comparative advertising can influence consumer perception by leveraging the trust and familiarity associated with established brands or by highlighting perceived weaknesses or shortcomings of competitors.  Effectiveness: Comparative advertising can be an effective strategy when executed appropriately. It can attract attention, generate interest, and potentially influence consumer purchasing decisions by presenting a clear point of differentiation.  Risks and Challenges: Comparative advertising carries certain risks, including potential backlash from competitors and legal challenges if claims are unsubstantiated or misleading. It requires careful planning, research, and adherence to advertising standards and regulations. 10 Types of Advertising  Ethical Considerations: Advertisers need to ensure that comparative advertising is conducted ethically, avoiding false or exaggerated claims and maintaining fairness and accuracy in comparisons. 1.7 Co – operative Advertising Co-operative advertising, also known as co-op advertising or cooperative advertising, refers to a collaborative advertising effort between manufacturers or suppliers and retailers or distributors. An overview of co-operative advertising:  Partnership: Co-operative advertising involves a partnership or agreement between manufacturers and retailers to share the cost, resources, and benefits of advertising campaigns. Both parties work together to promote a product or brand.  Cost Sharing: Manufacturers typically provide financial support or reimbursement to retailers for a portion of their advertising expenses. This can include funding for print ads, radio spots, television commercials, digital marketing, or other promotional activities.  Brand Promotion: Co-operative advertising aims to promote a specific brand or product through joint advertising efforts. It helps create consistent brand messaging and increases the brand's visibility and market reach.  Localized Marketing: Co-operative advertising often focuses on local or regional marketing initiatives, allowing retailers to tailor advertising campaigns to their specific market or target audience.  Guidelines and Requirements: Co-operative advertising programs usually have guidelines and requirements that retailers must follow to qualify for reimbursement or funding. These guidelines may include specific brand usage, advertising formats, media channels, or messaging standards.  Increased Advertising Reach: Co-operative advertising allows manufacturers to leverage the extensive retail network of their partners, reaching a wider audience through multiple retail locations and channels.  Mutual Benefits: Co-operative advertising benefits both manufacturers and retailers. Manufacturers gain increased brand exposure and market penetration, while retailers receive financial assistance and benefit from joint marketing efforts.  Relationship Building: Co-operative advertising fosters closer relationships between manufacturers and retailers, enhancing collaboration and mutual understanding of marketing goals and strategies. 11  Advertising and Sales Promotion  Measurement and Evaluation: The effectiveness of co-operative advertising campaigns is typically evaluated through metrics such as sales data, brand visibility, customer feedback, and return on investment (ROI). 1.8 Conclusion The study of different types of advertising provides valuable insights into the diverse strategies and approaches used to communicate messages to target audiences. Commercial advertising focuses on generating sales and revenue, employing persuasive techniques to promote products and services. Non-commercial advertising, on the other hand, serves the public interest by raising awareness, advocating behavior change, and addressing social issues. Understanding these various types of advertising enables marketers and advertisers to effectively communicate their messages and achieve their objectives in both commercial and non-commercial contexts. By employing the right advertising strategies and channels, organizations can create impactful campaigns that resonate with their target audiences and drive meaningful outcomes. 5.9 Glossary  Advertising: The act of promoting products, services, or messages to a target audience through various communication channels.  Commercial Advertising: Advertising aimed at promoting products or services to generate sales and revenue.  Non-commercial Advertising: Advertising that focuses on conveying social or public service messages rather than promoting specific products or services.  Primary Demand Advertising: Advertising that aims to create demand for an entire product category or industry.  Selective Demand Advertising: Advertising that focuses on creating demand for a specific brand within a product category.  Classified Advertising: Advertising that appears in categorized sections of print media or online platforms, organized by specific sections such as jobs, real estate, vehicles, etc.  Display Advertising: Visually appealing and larger-sized ads that incorporate images, graphics, and other design elements to attract attention. 12 Types of Advertising  Comparative Advertising: Advertising that involves directly comparing one brand or product to another to highlight strengths, advantages, or differences.  Co-operative Advertising: Collaborative advertising effort between manufacturers or suppliers and retailers or distributors to share the cost and benefits of advertising campaigns.  Brand Awareness: The level of familiarity and recognition a brand has among its target audience.  ROI (Return on Investment): A metric used to measure the profitability of an investment, such as an advertising campaign, by comparing the return or gain to the cost or investment.  Substantiated Claims: Claims made in advertising that can be supported or proven by evidence or data.  Metrics: Quantitative measures used to evaluate the effectiveness and success of advertising campaigns, such as sales growth, customer acquisition, brand recognition, etc.  Target Audience: The specific group of people for whom an advertising campaign is intended to reach and resonate with.  Perceptual Differentiation: Creating a distinct perception or image of a brand in the minds of consumers through advertising, positioning, or unique attributes.  Guidelines: Specific instructions or rules provided by advertisers or advertising platforms to ensure compliance and consistency in advertising content and formats.  Reimbursement: Financial compensation or repayment provided to retailers by manufacturers for a portion of their advertising expenses.  Market Reach: The extent to which an advertising campaign is able to connect and engage with the target audience. 5.10 Self-Assessment Questions Essay Type Questions: 1. What is the main difference between commercial and non-commercial advertising? 2. Explain the concept of primary demand advertising and provide an example. 3. Compare and contrast classified advertising and display advertising in terms of format and purpose. 13  Advertising and Sales Promotion 4. What are the key elements of comparative advertising, and how can it influence consumer perception? 5. How does co-operative advertising benefit both manufacturers and retailers? Provide two advantages. 6. Why is it important for advertisers to adhere to guidelines and requirements in co-operative advertising programs? Hints for the Essay Questions: a. Difference between commercial and non-commercial advertising: Revenue generation vs. conveying social messages. b. Primary demand advertising: Creating demand for an entire product category (e.g., introducing a new type of smartphone). c. Classified vs. display advertising: Categorized, concise ads vs. visually appealing, larger-sized ads. d. Comparative advertising: Direct brand comparisons and its impact on consumer perception. e. Benefits of co-operative advertising: Cost-sharing and increased brand exposure. f. Importance of guidelines in co-operative advertising: Ensuring compliance and maintaining fairness. 5.11 Post Unit Reading Material  https://www.acrwebsite.org/volumes/6143/volumes/v10/NA%20-%2010  https://study.com/learn/lesson/cooperative-advertising-overview-methods- examples.html  https://www.safalta.com/careers/classified-advertising-types-advantages-and- disadvantages-with-examples  https://instapage.com/blog/primary-demand-advertising/  https://sendpulse.com/support/glossary/primary-demand 14 Types of Advertising  https://www.researchgate.net/publication/351427889_Non- commercial_Advertisements_A_Study_of_Awareness_Preference_among_Rural_ Women 5.12 Topics for Discussion forum  What are your thoughts on comparative advertising? Do you believe it is an effective strategy, or does it have the potential to harm brands and create unnecessary competition?  In your opinion, what are the key advantages and challenges of co-operative advertising? How can manufacturers and retailers effectively collaborate to maximize the benefits of such advertising partnerships?  Share an example of a memorable advertising campaign that caught your attention. What elements of the campaign made it successful, and how did it impact your perception of the brand or product being advertised? 15  Advertising and Sales Promotion 16 www.onlinejain.com