Classification of Advertising PDF

BASIC OF ADVERTISING MANAGEMENT & BRANDING I Chapter 1, INTRODUCTION: What is advertising? The word advertising is derived from the Latin word “adverter” which means ‘to turn the minds of toward’. Advertising helps turn one’s mind or attention towards something. Advertising is a...

BASIC OF ADVERTISING MANAGEMENT & BRANDING I Chapter 1, INTRODUCTION: What is advertising? The word advertising is derived from the Latin word “adverter” which means ‘to turn the minds of toward’. Advertising helps turn one’s mind or attention towards something. Advertising is a message designed to promote a product, a service, or an idea.The purpose of advertising is to sell products or services.Advertising reaches people through various forms of mass communication.These media include newspapers, magazines, television, radio, the internet, direct mail, outdoor signs, transit signs, window displays, point-of-purchase displays, telephone directories, novelties. DEFINITION 'Advertising is a non-personal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media." OBJECTIVES To promote a single product or service. To make an immediate sale. To create the branding of the product. To introduce a price deal. To inform about new products availability or features. To build an overall company image.  To effect immediate buying action. To increase market share. CLASSIFICATION OF ADVERTISING CLASSIFICATION OF ADVERTISING BASED ON DESIGN: Now a day’s without advertisement you can’t promote your business. Newspaper advertising has been around longer than any other form of advertising we see today and is still the first kind of advertising that businesses think about doing. Generally companies have three primary categories of newspaper ads to use when advertising. These types include display or box ads, inserts and classifieds. Some businesses use all three, while others focus newspaper messages on one format. Below you find what are the main types of advertisement we see in the newspaper? 1. ClassifiedAdvertisements:-They are small insertions chargeable per word. Classified advertisements are sub-divided under headings like public appointments, situations vacant, situations wanted, matrimonial, educational, to let, business, property, court and company notices, tender notices, public notices, auction notices, etc. 2. Classified Display: – This ad format has more scope for implementing creative adverts. Though display classifieds are also published only in the classified pages, they stand much more prominent than text ads. Images, logos and even contrasting hearers and footers can be incorporated in these ads. CD ads are priced as per their size in terms of columns or sq.cm unit. These ads are more expensive and creative than text ads, but less expensive than Display ads. Obituary and matrimonial advertisements published ads under this specific format. 3. Display Advertisements:-Display ads run from one-eighth of a page up to one full page. They cover every-day life products like cosmetics, domestic items, kitchen ware, electronic goods, sanitary products, etc. They are known as box ads, because they occupy a square or rectangular space, similar to a box, within a particular newspaper page. The larger the space, the greater the expense. However, half-page or full-page display ads attract much more attention than smaller box ads 4. Insert Advertisement:-An insert ad is a full-page included with the distribution of a newspaper issue. The advertiser’s rate is based largely on circulation, though you have to pay for the production costs on the flyer as well. A primary advantage of an insert ad is that it stands alone. Readers pull the insert out of the paper to look at it. Newspapers typically allow you to distribute inserts to select markets, enabling greater cost control. As a result, inserts are a lower-cost alternative to direct mail for many small businesses. 5. House Ads: - it is another type of ad in newspapers. These are ads placed by the publisher to promote the value of purchasing ad space. While most publishers include some house ads in each edition. CLASSIFICATION OF ADVERTISING BASED ON ADVERTISER AND CONSUMER In advertising, the word “target audience” refers to a particular group of people that each advertisement aims to communicate. For instance, the ad of cosmetic products aims to communicate to women, so the ad is designed specifically to attract women who are its target audiences. Hence, men seem not so interested in that kind of advertisements, simply because they are not its target audiences. This explains why sometimes you see some ads and you feel like they do not appeal to you at all. There are two major types of target audiences, consumers and businesses. Consumer and Business advertising Consumer advertising is the advertising that typically aimed or directed to consumers, people who buy the product or use the service for their own use as well as someone else's personal use. The advertisements that we see or hear daily on TV, Radio, newspapers and magazine are considered consumer advertisings. It is the producers or the manufacturers of the products or services themselves who sponsors this kind of advertisings. The non-commercial public announcements of the non-profit organizations are also included in this category of advertising. Business advertising Business advertising or business-to-business advertising is the advertising that directed to people who buy or influence the purchase of goods and services used in various business situations. This kind of advertising appears mostly in business publications or professional journals, in direct mails sent to businesses, or in trade shows, but not in the mass media. That is the reason why we, as consumers hardly see this kind of advertisement. The example of business ad is the one of Federal Express or FedEx that we sometimes see on TV and in magazines. There are altogether three types of business advertising: trade, professional, and agricultural. 1. Trade advertising is used by companies to target at resellers (wholesalers, dealers, and retailers) in order to obtain greater distribution of their products. 2. Professional advertising is the ad that aimed at teachers, accountants, doctors, architects, engineers, and lawyers. They are normally appears in official publications of professionals societies. Professional advertising has three objectives. First, it aims to convince professional  people to buy particular brands of equipment and supplies for use in their works. Second, it aims to encourage professionals to recommend or prescribe a specific product or service to their clients or patients. Third, it aims to persuade professionals to use the product personally. 3. Agricultural or farm advertising is used by companies to promote products and services in agriculture to those who involved in agriculture, for example farmers, employees in agribusiness. Characteristically, agricultural advertising attracts farmers by showing how efficient the advertised products are in helping them risk lessening and profit making. Industrial advertising Industrial advertising promotes products and services to companies that will use them in their business. Industrial advertising may refer to advertising directed at manufacturers buying raw materials or equipment used in their manufacturing process, it refer to business-to-business (B2B) advertising in general. Industrial advertising can refer to marketing designed to obtain the business of a manufacturing firm. It might advertise essential materials, equipment, or technology needed to keep a manufacturing business running. Industrial advertising can also refer to any B2B advertising, even if it is not specific to the manufacturing industry. Industrial advertising is usually placed in industry-specific channels, allowing businesses to narrowly target other businesses who need their goods and services. These channels include: Trade shows or business fairs Industry publications, such as trade magazines or websites Direct mail advertisements, including brochures, postcards, or catalogs Cold calling or emailing Word-of-mouth or referral advertising Financial advertising. Financial advertising is the practice of advertising to stakeholders of financial services-Investors, Loan seekers, Banking and Mortgage Customers. Financial advertising works to the world of finance, such as banks, or insurance companies. Typical products in financial advertising are publicly offered financial products such as mutual fund shares or limited partnership shares. The Securities and Exchange Commission (SEC) enforces strict legal regulations in regard to promotional advertising of public offerings of securities and requires some amount of mandatory copy on most other products. Types of financial Advertising are General and Life Insurance(LIC,SBI Life, Bharat AXA) Mutual Funds(Aditya Birla, ID Banking facilities Loans Brokers Mortgage Trade advertising Trade advertising aimed at a business and designed to entice it to purchase a product to sell to its customers or at least to recommends it to its customers. Trade advertising is directed at stockbroker s, wholesalersand others who are not intended to be the end user of a product. It is also called business- to-business advertising. This kind of advertising is carried out by a producer which is directed towards the wholesaler, traders and distributors rather than the end consumers of the product. This kind of advertising is strategically important for firms so that they can establish good relations with the trader, wholesaler or the distributors associated with the selling of the company’s products. It is also known as business to business advertising. Agricultural or farm advertising This kind of advertising is basically aim for Farmers. It is used by companies to promote products and services in agriculture to those who involved in agriculture, for example farmers, employees in agribusiness. Characteristically, agricultural advertising attracts farmers by showing how efficient the advertised products are in helping them risk lessening and profit making. Co-operative advertising Co-operative advertising is done by group of advertisers to achieve the goal. This kind of advertising are used for increase the primary demand of the product. In this advertising retailer or wholesale share the cost of an advertising campaign with the manufacturer of the product being advertised. It refers to an agreement that is sealed between a manufacturer and a distributor/retailer or wholesaler. It can also be made between 2 or more marketers that have complementary products. In the first case, the manufacturer either contributes with a fixed sum or shares a percentage of the promotion costs of the other members. In the second case, the marketers sell or promote each other’s products together with their own. This procedure is also called co-marketing. Cooperative advertising is a great tool for small businesses to market themselves. Associating with a large manufacturer helps them build their brand and make people hear about them faster. Moreover, the reason why many of them choose this type of advertising is the fact that it helps them cut costs. Government and Educational advertising This kind of advertising is for educating public and not for increasing the sale of the products. Government Advertising involves experts and professionals for communicating government information to general public in efficient and effective way. Advertising is enabled by effective planning and strategy. Various media are used for enlightening general public. Media for advertisement are television, radio, internet, newspapers etc. With proper advertisements, people are informed about various issues of government on regular basis. Testimonial advertising Testimonial advertising increases the faith of the consumer towards the product by building a solid reputation in the form of testimonials. Testimonial advertising is a promotion methodology and is one of the most potent tools of marketing in recent times. The testimonials contain the recommendations/letters/written statements from the satisfied customers or a celebrity that certifies or authenticates the product or service in terms of performance, quality, value, excellence, worthiness etc. Testimonials are few statements typically a few sentences. Testimonial service from satisfied customers may contain only a few words. For example if it is an Airline Industry the testimonial advertising may include –“excellent service”, “punctual”, “extremely friendly staff”, “outstanding journey” etc. The testimonials are usually included in advertisements. The names of the customers or the celebrity is usually mentioned along with the testimonial Testimonials are primarily used for endorsing a product as it uses the feedbacks/comments from the actual customers and qualified people. It presents the company in the positive light and hence builds up the trust and reputation of the company. Direct mail advertising Direct mail advertising is a form of marketing in which print materials are sent directly to the consumer’s mailbox. There are many different types of ads that fall under the umbrella of direct mail. For example, businesses often purchase print coupons that are included in newspaper inserts or will send a letter or postcard directly to the customer’s address. Other forms include catalogs, brochures, and fundraising letters. Direct mail advertising campaigns can often be custom designed to fit within a budget. It differs from other forms of marketing in that it directly makes an offer to the consumer and often gains a response to that offer. There are many advantages to using direct mail advertising to reach customers. It’s often very cost effective, because it can use bulk mail rates to reach a large number of customers. It also tells the business owner how effective it is as a means of drumming up new business. For example, the number of coupons that are used can be tracked, or the owner can see how much of an increase occurs in sales following the campaign. Direct mail advertising can also allow start-up companies to tell customers about their new product or service and often at cheap rates compared to broadcast or newspaper ads. CLASSIFICATION OF ADVERTISING BASED ON GEOGRAPHICAL AREA : If we classify the advertising according to the geographic areas, we are talking about four kinds of advertising: local, regional, national, and international advertising. Let us examine these four kinds of advertisings one by one. Local or retail advertising : Local or retail advertising is the advertising used by businesses whose customers come from only one city or local trading area. For instance, the advertising of California Fitness Centre, which its customers are only in Bangkok. Regional advertising: The second type of advertising is regional advertising. As the name suggested, regional advertising is the advertising for products sold in one area or region, but not the entire country. National advertising: National advertising is the advertising that aimed at customers in several regions of the country. International advertising: The fourth and the last kind of advertising is international advertising. This kind of advertising directed at foreign markets. For example, the advertising of the alcohol drink, like Beer: Singha Beer of Thailand , Carlsberg Beer. CLASSIFICATION OF ADVERTISING BASED ON MEDIA 1. Print advertising media:- Magazine and newspaper advertisements are another way to spread the word about a product or service. Print advertising also offers the ability to target specific audience based on geography or com-mon interests. Print advertising usually includes larger display ads, as well as classified advertising. The classifieds are typically very affordable, whereas display ads are a bit pricey. 2. Broadcast advertising media:- 1 Television Advertising – TV advertising is a popular way to mass-market messages to large audiences. Although this medium has the ability to reach a high number of potential buyers, it is also one of the most costly forms of advertising  2 Radio Advertising-Radio advertising is an effective way for businesses to target a group of people based on location or similar tastes. 3. Outdoor advertising media:- Billboard Advertising- Outdoor advertising is designed to promote your business in open spaces. It is focused to reach the people who are on the road or in public places. The advertising is placed at a strategic location in order to attract the customer’s attention. Outdoor advertising could be: Billboards, banners, awnings, volumetric letters, neon signs, road signs, posters, flags etc. 4. Transit advertising media:- Transit media refers to advertising placed in, on, or around modes of public transportation: buses, subways, and taxis, as well as at bus, train, and subway stations. Transit media can be a great way to reach a really diverse audience: families traveling to daycares, professionals heading to work, tourists navigating a new town, or even students making their way to a local coffee shop. 5. Direct mail advertising media:- Direct advertising is a very comprehensive phrase covering all forms of printed advertising delivered directly to the prospects or customers instead of indirect distribution like newspapers or the magazines. The printed matter is distributed house to house by personal delivery, handed over to passersby on the sidewalks, placed in automobiles, stuck under the wind screen of an automobile, handed over to retail counters, or may be sent through post or courier. It is direct mail advertising if it reaches by mail or courier. Contrary to the above, mail order advertising does not refer to the channels through which the message is delivered. It is a method of product distribution — a direct marketing method under which orders are secured for the goods and services without the aid of intermediaries. 6. Internet and social media advertising:- Online Advertising-Advertising online is an increasingly popular method for promoting a business. There are many forms of online advertising. Banners are image advertising displayed on web pages. Google advertisement is another popular form of online advertising that matches an ad to an internet user's search inquiry.  Social media advertising is a category of digital advertising that places ads on social networking sites. It has one of two purposes: branding or response. It is one of two major social media marketing tactics: paid and organic. Unlike paid advertising, organic marketing requires no upfront cash expense. But it does require the expense that comes with labor. Other media of advertising: In-store Advertising-In-store advertising, takes place within a retail store. For example, a company that produces a new cleaning product might include an end cap display when they ship the product to stores. This gives the store an attractive display that draws attention to the new product. Other types of in-store advertising include banners and display cases. Word of Mouth Advertising- While some may argue that word of mouth is not advertising because it is free, this form of promotion is one of the best and the most credible and priceless asset of any business. Even if business owners cannot buy word of mouth advertising, they can encourage their customers to tell their friends and family about the great product or service they purchased. Endorsements- Endorsement is similar to word of mouth promotion but typically does involve money. Having a product or service endorsed by a celebrity can increase sales and product awareness. Not every company can afford to have major A-list celebrities promoting a product. Smaller companies consider using local celebrities or well-known individuals within the product's niche market. CLASSIFICATION OF ADVERTISING BASED ON MESSAGE AND PURPOSE Product/Non Product Advertising: - Product advertising is the actions taken by different businesses to promote and sell their products and services. For example: toothpastes, coupons, cosmetics etc. Non-product advertising (sometimes also called PR) is done by various businesses and groups to generate awareness if different issues and programs in the society. For example:  pro choice, pro life, different non-profit organizations' awareness programs, promoting vegans etc. Commercial/Non Commercial Advertising: - Commercial and non-commercial advertising are both strategies that are designed to reach the public and motivate them to become more interested in the subject matter of the advertisements. While sharing a common goal that of generating consumer interest, the two forms of advertising do focus on different types of products. Essentially, commercial advertising has to do with selling goods and services, while non- commercial advertising is more about providing information and motivating people to act after being exposed to that information. There are examples of campaigns in which marketers combine elements of commercial and non-commercial advertising to create an approach that both informs and motivates consumers to buy. Primary Demand/selective demand Advertising: - Primary demand refers to that demand which is intended to drive interest in the product irrespective of the brand of the product while selective demand refers to that demand which is intended to drive interest in the particular brand of any product as compared to competitors Selective and primary demand are two different approaches to presenting advertising messages. Selective demand occurs when companies deliver messages that depict their brand as the best match for the needs of the target market. Primary demand is advertising intended to drive interest to the general product category, rather than a specific brand in particular. For example of primary demand advertising is when car manufacturers together advertises that how car is beneficial as compared to two-wheelers by mention advantages of owning cars so that more and more people switch from two-wheeler to four-wheelers thus giving business to the whole car industry while an example of selective demand advertising is when BMW or Toyota advertises about the unique features and quality of their cars as compared to other cars so that customers buy their car rather than buying other cars. Direct action/Indirect action advertising:- Advertising that stresses and persuades immediate buying of the product is known as direct action advertising. Direct mail advertising is capable of  achieving immediate action to a large extent. Indirect advertising occurs when a business chooses to not simply promote a product, but instead work to establish a relationship with the people that read, hear and see the advertising. Indirect advertising is the opposite of direct advertising, which explicitly tells potential consumers that they should buy a specific product. ADVANTAGES OF ADVERTISING Broadens the knowledge of the consumers. Helps easy introduction of products into the market. Increases sale volume. Helps to create image of the product and the company. Enables them to have product information. Creates awareness on product and service. Maintains retail price. Increases the rate of the turnover of stock.  Provides an opportunity to the customers to compare the merits and demerits of various substitute products. Helps to establish direct contact between manufacturers and consumers. Leads to large-scale supply for demand, creating more employment opportunities. CONCLUSION The advertising is a highly cost incurring method, its efficiency and effectiveness should be ensured. It is for this, purpose that concept of scientific advertising should be carefully planned and efficiently implemented and promptly monitored and controlled.