Advertising 2018 – SOLVED QUESTION PAPER – DIBRUGARH UNIVERSITY – Semester 6 – B.Com

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SOLVED QUESTION PAPER-DIBRUGARH UNIVERSITY

B.Com 6th Semester

ADVERTISING – 2018

1) Answer the following as directed: 1×6=6

(a) What is an ambient medium?

i. A new medium ii. Real-estate magazine iii. Weather-related news iv. None of the above

(b) The extent to which an organization fulfills a consumer’s needs, desires, the expectation is-

i. Customer satisfaction ii. Goods manufacturing practices iii. Job satisfaction iv. All of the above

Answer: Customer satisfaction.

(c) Promotion mix includes sales promotion, personal selling, advertising, and public relation.

(d) Newspaper advertising is a waste when masses are illiterate

(TRUE/FALSE)

Answer: True.

(e) At outdoor advertising, which has longer life span?

i. Banner ii. Painted posters

iii. Balloons

Answer: Banner

(f) Components part have two markets one is an original equipment manufacturer and the other is-

i. Retail market ii. Consumer market iii. None of the above

2 (a) Discuss the major internal and external factors involved in advertising planning and decision making.

Answer: Advertising planning and decision making depends on internal and external factors-

Internal factors:

1. Situation analysis- It involves an analysis of all important

factors operating in a particular situation. This means that new research studies will be undertaken on company history and experience. 2. Consumer and market analysis- Situation analysis begins by

looking at the aggregate market for the product, service or cause being advertised, the size of the market, its growth rate, seasonality geographical distribution. Whereas consumer and market analysis is concerned with the following factors- (a) nature of demand (b) extent of demand (c) name of competition (d) environmental climate. 3. Competitive Analysis- Advertising planning and decision making are affected by competition and the competitive situation facing the advertiser. Competition is such a persuasive factor that it will occur as a consideration in all the phases of the advertising planning and decision making.

External factors:

The external factors in the planning and decision making are environment social and legal considerations. To a considerable extent, these exists as a constraints on the development of an advertisement plan and decision making. In developing specific advertisement, there are certain legal constraints that must be considered. Deceptive activities is forbidden by law. What is deceptive is often difficult, because different people can have different perspective of the same advertisements. Thus an advertiser who attempts to provide specific, relevant information must be well aware of what constitutes deception in a legal and ethical sense and of other aspects of advertising regulation. Even more difficult consideration for people involved in the advertising efforts is broad and economic issue

(b) Discuss the different ethical aspects of advertisement and how untrustworthy advertising can be controlled.

Answer: The different ethical aspects off advertisement—

1. False, not misleading : The basic legal standard for advertising is that ad’s must be truthful and not misleading several factors are considered when analysing whether an ad is truthful and not deceptive. These includes whether the claim made by the advertisement is expressed or implied, who the reasonable consumer is for the product and whether the false or misleading content ( if any) is material enough such that it would influence consumer buying behaviour.

2. Evidence for claims: The other legal standard for advertisement is reliable evidence that supports any claim being made by the advertisements. According to the federal trade commission the exact level of evidence needed varies depending on the claim.

3. Ethical consideration: Ethical consideration fall into a grey area for advertisements it is possible for an advertisement to be legally permissible, but for to be ethical. Ethical consideration relate to the manner in which the content is been delivered and the message of the advertisements.

4. Advertising regulation: The federal trade commission regulates advertising in the United State. False misleading ads fall into the sphere of federal trade commission jurisdiction. Advertisers face criminal and civil penalties for illegal ads. The same penalties may not apply for unethical ads.

5. Bad taste in advertising- Bad taste is affected by the factors like time, age and of course an personal perception of an individual about that advertisement.

6. Exaggeration and puffs- Puffing or exaggerating or tall claims in advertising is legal, hence the issue of puffing involves how much exaggeration should be accepted.

7.Advertising tactics- Advertising tactics present additional ethical challenges. Advertisers has a range of less than ethical yet legal tools at their disposal, including emotional appeals, taking advantage of less educated individual and other tactics where ethical advertisers consistently refrain from using.

Untrustworthy advertising is the use of false, misleading or unproven information to advertise products to consumers. Consumer ability to distinguish false advertisement is affected by their emotions. People with positive emotion are more sensitive to false advertisements. Many government use regulation to control false advertisement. A false advertisement can further be classified as deceptive if the advertiser deliberately misleads the consumer, as opposed to making an honest mistake. But it is difficult to judge whether advertising violates regulations. It is hard to tell if some tiny misleading expression are false ads.

3 (a) What factors would you consider while selecting an appropriate medium for advertising.

Answer: The factors that are consider while selecting an appropriate medium for advertising are-

1) The nature of the products– The nature of the products

determines which type of advertising media is the most effective. If the product require demonstration, television and digital advertising will work best. Items like wines, alcohol and cigarettes are only ever advertised in print media. 2) Objective of the firm– Company’s general and advertising objectives are the prime consideration in media selection. Those media capable to meet company’s expectation are likely to be selected. Advertising objective may be to inform remain convince, create prestige or to increase sale and profit. 3) Cost media and company financial position – Media selection

decision is highly influenced by media costs and firm’s ability to pay. Company has to pay for buying space or time and preparing advertising copy fit for the media to be selected. T.V., radio, films are costly in terms of buying time and preparing advertising copy. 4) Company’s advertising policy and approach– Company’s

advertising policy and approach determine which of the media should be selected. For example- if company policy is not to spend more money for advertisement and to offer the product at a low price, it may go for cheaper media. 5) Types of buyer– People to be influenced should be taken into account while selecting the media. Buyer can be classified into various classes as discussed in market segmentation. For the firm it is important to know whether the target group can be exposed by the particular medium.

6) Coverage– The area covered by the medium is an important criteria. Some media are capable to cover the globe while some can cover only the limited locality. 7) Past experience– Company own past experience may be

instrumental to decide on advertising media. For example if the company has satisfactory experience of using a particular medium, there are more chances to use the same medium and vice versa. 8) Experience of other companies– Experience of other

companies is one of the important consideration in media selection. Company may try to know what other companies say about applicability and usefulness of various media. Views of other companies must be followed with care and caution. 9) Type of advertising message– Each advertising message

needs specific advertising vehicle. If a message is simple, print media are sufficient. If the message is complicated and the company wants to demonstrate and explain audio visual media suit the need. 10) The budget available– A manufacturer may have a very

colourful and bold plan of advertising. He may be dreaming of advertising on a national television network and films. If the budget does not allow, then he is to be happy with a low budget media like newspaper and outdoor advertising. Instead of colour print in magazines, he may be forced to go in for black and white. Thus it is the resource constraints that decides the choice. 11) Media availability– The problem of Media availability is of such relevance because all the required media may not be available at the opportune time. This is particularly true in case of media like radio and television so is the case with screen medium. Thus non availability of medium or a media passes a new challenge to the media planners and the people advertising industry.

12) Potential market– The aim of every advertising effort is to carry on the ad message to the prospects economically and effectively. This crucial tasks rest in identification of potential market for the product in terms of the number of customer, geographic spread, income pattern, age group, tastes, like and dislikes and the like.

(b) Mention the various advertising media and discuss their relative advantage and disadvantages.

Answer: The various advertising media are-

(A) Indoor advertising media– It can be further classified as-

(a) Print media– Advertising in newspaper, magazines and journal etc. can be called as print media advertising. It is the most economical media of advertising.

Following are the characteristics of print media- 1. Wide coverage is possible 2. It is more effective for all purpose 3. It is economical

The various print media are-

A. Newspaper- The newspaper is the most popular media

in the print category. It reaches every nook and corner of the country. Newspaper is the one that gives new views, ideas, interpretations, opinions, comments and explanation regarding the social, economic, political, educational, moral, cultural, ecological etc. Advantages: 1. Newspaper are having a large demand and wide coverage

2. The cost of newspaper is less when compared to its used. Disadvantage: 1. It is having the shortest life. Today’s newspaper is tomorrow’s wastepaper. 2. People read newspaper in a hurry. Hence they do not take notice of the advertisement. Hence advertisement becomes a waste.

B. Magazines and Journals– They are periodically

published. They are published weekly or monthly. Magazines are read leisurely. They are published according to the tastes and liking of the public. Advantage: 1. It is having longer life than a newspaper. 2. It is having greater reference value of ad. 3. Colour advertising attracts the people very much. 4. Cost is comparatively low. Disadvantage: 1. It is less flexible. 2. It reaches only a limited section of people.

(b) Electronic media

A. Radio– Radio is the quickest medium of advertising when compared to newspapers or magazines. Sound moves faster than other media. It is popular means of advertising for a commercial firm. Advantage: 1. It is best means for illiterate people. 2. Spoken words are more effective than written words. Disadvantage: 1. It is quite costly.

2. Only limited time will be allowed.

B. Television– It is of recent origin. Television advertising is the latest medium of mass communication and is widely used for advertisement. It is an audio visual medium because one can see and hear. Advantage: 1. People are impressed by pictorial presentation. 2. It appeals to the eye and the ear. Disadvantage: 1. It is an expensive medium 2. It is suitable only for large firms.

C. Film: Film advertising is also advantageously used by advertiser. Cinema is an audio-visual medium of communication and offers opportunities to advertisers for screening commercial films and slides. Advantage:

1. It can create a good impact on the audience 2. It cover all classes of people poor, middle and rich. Disadvantage: 1. Producing a film is costly. 2. The co-operation of theatre is essential.

(B) Outdoor advertising: Outdoor advertising passes the message to those people who are moving audience. Generally almost all the people go out on some purpose or other office, walk, sightseeing, journey, park visit etc. This outdoor advertising has the effect of advertising.

Types of outdoor advertising –

a) Postures- At present this is a common form of advertising. The posters are made in attractive colours in brief and printed. The posture is a sheet of paper. The matter is depicted on it. Then the prepared posters are pasted on walls or boards. b) Advertising boards– These are also posters but have better

status than ordinary postures. The boards are fixed at the areas where people frequently assemble. Such boards are fixed at decent and next places. c) Vehicular Advertising– This moving advertisement find place on vehicles- buses, trains etc. The vehicles passes through many places and many people happen to see it. d) Painted display– It is an artist’s work. This display is large in

size. It is visible from a distance. It finds place at crossings, compound walls or erected structures built of poles or pillars. e) Travelling display– These are the advertisements as posters,

small in size, written beautifully and placed inside trains, buses etc. The travelling people in these vehicles repeatedly notice it and keep it in their memory. f) Sky advertising– Sky advertising and sky writing have become

popular. Big balloons with messages written on them or attached to them are allowed to float in the air. Big kites containing advertisement may be floated in the open air.

4 (a) What are the various elements of a copy? Give guidelines for the presentation of headlines in a copy. Explain the steps in copy development process.

Answer: The various elements of a copy are-

1) Headline- The headline is the word in the attractive position in

the advertisement. That is the word that will read first and situated to get more attraction. Usually the letters of the headlines are larger than other parts.

2) Subheads and body copy– This is the sub head captions that

simply expand the headlines thoughts. This headlines takes the readers to read further. Subhead lines are known as the transitional bridge between the headline and copy text. Body copy is telling about the whole story of the product or service that a marketers want to communicates. Body copy covers the features, benefits and utility of the product. 3) Slogan and illustration– Many slogan begin as successful

headlines. Repeated usage become a popular one in among viewers slogan has two purpose, one is to provide continuity another is to memories and repeat the statement among consumer. Illustration parts consists of photo, drawing charts etc. 4) Identification and closing idea– This is the content in which the seal, signature or logo of the firm is provided. This is to identify the sponser or adventures closing idea component emphasis on an action. The closing idea summarises the message, changes in the products, attitudes, all the information etc.

The guidelines for the presentation of headlines in a copy are – 1. Understand the target 2. Write an outline of the ad first then write headlines 3. Write several different headlines and read them out loud. 4. Pick the most important benefit and include that benefit in the headline. 5. Include the product or problem in the headlines. 6. use on of the headline formula below. 7. Use a fairly standard, straight forward headline based off a formula.

The steps in copy development process are 1. Check the products/services- To write an effective copy it is essential to understand the USP of the product or services.

People are interested in their own benefit. ‘’What is in it for me?’’ is all everyone asks. 2. Know your target audience- It is better to have a clear picture of exactly who these people are housewives, working mon, student, office goers business man or farmer. The more specific you are the better you can write your copy. 3. Figure your aim– Figure out what is the end result that you want to obtain from advertising or promotional material. Do you want to see a product or services inform people or bring awareness. 4. Understand your median – Different form of advertising or promotional medium requires the different set of approach while writing copy to suit the taste of specific people related to medium. 5. Write copy- Once you figure out your product, target audience, aim and medium then you need to craft a copy. Write attention grabbing headline and subheading and also make sure body copy interesting precise and imported. 6. Proofread your copy- After you finished writing you should proofread it to check for spelling punctuation and grammer mistakes. It is completely unprofessional when there is an error in your copy.

(b) Explain precisely the advantage of advertising to different groups of society.

Answer: The advantage of advertising to different group of society are –

1. Helping in generating more employment– Advertising is a complicated task and lot of people are involved in the making of an advertisement. Advertising is instrumented in generating more employment and opportunities and creating diverse kinds of job.

2. Helpful in the economic development of the country- Advertising increases sales, employment and profits. The overall effects of all this is economic progress for the nation as well as the world as a whole. Thus advertising proves helpful in the economic development of the country.

3. Helpful in improving the standard of living- Though the medium of advertising people get information regarding new products. As people use these new and latest products, their standard of living gets a boost. Advertising is helpful in providing employment and increasing income of the people.

4 .Information to the customer- Advertisement about new products keeps the customer informed about the new developments in the industry. They help to provide them information regarding the newly launched products and service, their utilities, cost and other requirements and help the customers in making better purchases.

5. Takes care of customers- Advertising takes care of customers. It helps in holding on to the loyal customer, decreasing the number of lost customers and enlisting new customers. Thus the overall effect of advertising will be increase in the number of customers that will gradually become loyal to the product.

6. Improves the sale of product- Advertising facilitates a noticeable increases in the sale of the products. Advertising also attract huge number of potential customers and make positive impact about their products and services.

7.Religious and moral benefits- Social and religious institutions use advertising for communicating their messages like message of patriotism, faith, compassion, tolerance and charity towards needy, messages related to health and education. These advertisement educates people and guide better behaviour.

8. Promotes brand name of the product- Advertisement creates and promotes brand names for the products. People recognise the products from the catchy ads they see and thus sales are also improved.

9. Alters the attitude of the people- An effective advertisement results in a swift change in the attitude and habit of the people.

10. Feedback from customers- Advertisement can also lead to direct feedback from customers. It has been researched that a lot of opinions and view point are received by the advertisers on their product and services which help them in improving their products and services further

5. Write short notes on any four of the following.

a) Indoor advertising media- It can be further classified as-

(a) Print media– Advertising in newspaper, magazines and journal etc. can be called as print media advertising. It is the most economical media of advertising.

Following are the characteristics of print media- 1. Wide coverage is possible 2. It is more effective for all purpose 3. It is economical

The various print media are-

A. Newspaper- The newspaper is the most popular media

in the print category. It reaches every nook and corner of the country. Newspaper is the one that gives new views, ideas, interpretations, opinions, comments and explanation regarding the social, economic, political, educational, moral, cultural, ecological etc. Advantages:

1. Newspaper are having a large demand and wide coverage 2. The cost of newspaper is less when compared to its used. Disadvantage: 1. It is having the shortest life. Today’s newspaper is tomorrow’s wastepaper. 2. People read newspaper in a hurry. Hence they do not take notice of the advertisement. Hence advertisement becomes a waste.

B. Magazines and Journals– They are periodically

published. They are published weekly or monthly. Magazines are read leisurely. They are published according to the tastes and liking of the public. Advantage: 1. It is having longer life than a newspaper. 2. It is having greater reference value of ad. 3. Colour advertising attracts the people very much. 4. Cost is comparatively low. Disadvantage: 1. It is less flexible. 2. It reaches only a limited section of people.

(b) Electronic media

A. Radio– Radio is the quickest medium of advertising when compared to newspapers or magazines. Sound moves faster than other media. It is popular means of advertising for a commercial firm. Advantage: 1. It is best means for illiterate people. 2. Spoken words are more effective than written words.

Disadvantage: 1. It is quite costly. 2. Only limited time will be allowed.

B. Television– It is of recent origin. Television advertising is the latest medium of mass communication and is widely used for advertisement. It is an audio visual medium because one can see and hear. Advantage: 1. People are impressed by pictorial presentation. 2. It appeals to the eye and the ear. Disadvantage: 1. It is an expensive medium 2. It is suitable only for large firms.

C. Film: Film advertising is also advantageously used by advertiser. Cinema is an audio-visual medium of communication and offers opportunities to advertisers for screening commercial films and slides. Advantage:

1. It can create a good impact on the audience 2. It cover all classes of people poor, middle and rich. Disadvantage: 1. Producing a film is costly. 2. The co-operation of theatre is essential

b) Buying motives- Buying motive is the motive to persuade the desire to people so that they buy a particular goods or service. Buying motive relates to the feeling or emotion of people which generates a desire to purchase. Any person does not buy a product or services just because of excellent salesman pitch but he does also due to the desire generating within him towards the products or

services. Understanding the buying motive of a consumer is essential for a company as it helps the company to target the customer better. Buying motive means that the customer require a particular product to fulfil a certain need. No matter how good a product is or how good the marketing is unless the customer has a need it would not matter. This makes motive extremely important in business.

c) Target market – A target market is a select group of potential or current consumer which a business decide to aim its marketing and advertising strategies at in order to sell a product or services. Defining a ‘target market’ is the first stage in the marketing strategy of a business and is a process of market segmentation. A target market is a common tool utilised by many marketers and business to determine the set of customer they intend to focus on and serve their marketing message to. A target market is determined and defined by the goals set out in the marketing plan. The target market typically consists of consumer who exhibit similar characteristics and are considered most likely to buy a business market offering or are likely to be the most profitable segment for the business to services. Once the target market have been identified, the business will normally tailor the marketing mix (4ps) with the needs and expectation of target in mind.

d) Advertising message – An advertising message is the visual and/ or auditory information prepared by an advertiser to inform and/ or to persuade an audience regarding a product, organisation or idea. It is sometimes called the creative work by advertising professionals in recognition of the talent and skills required to prepare the most effective pieces of advertising. The underlying message or point that the customer should get upon seeing the ad is called the advertising message.

Advertisement message tend to have the following common components-

i. The appeal– It is the component that captures the attention of

the consumer. It may be humorous like Mentos ad, adventurous like in Thumps-Up ads or emotional as in insurance ads etc.

ii. The value preposition– This component includes the basic value preposition offered to the consumer. This forms the main part of the advertising message.

iii. The tagline/ catchphrase– Every good ad campaign has a

tagline, slogan or catchphrase that is repeated across all the different media in order to place firmly the product in the consumer mind.

e) Public services advertising- Public services advertising also known as public services announcement is a message in the public interests disseminated without charge, with the objectives of raising awareness of and changing public attitudes and behaviour towards a social issues.

Advertising agencies, working with non-profit organisation create public services advertisements, also known public services announcement designed to persuade consumer top engage in behaviour or good citizenship.

A public services advertisement or PSA often publicizes a federal, state or local governments program or services. Public services advertisement also address timely or critical social issues, such as a state government response to a regional flood or other natural disaster. The non-profit advertising council produces most PSAs using skilled volunteers from communication and advertising firms. Local or national media outlets publish or air the PSAs at no charge to the sponsoring agencies or organisation.

F) Sales display- Stole display are in store presentation and exhibition of the product along with relevant information, believing

in the concept of come and get it, we have it. Sales display have come to form an integral part of store atmospherics and play a useful role in retail store promotion.

A point of sales in retail store promotion of sales promotion that is found near on, or next to checkout counter. They are intended to draw the customer attention to products, which may be new products, or on special offer, and are also used to promote special events. Example seasonal or holiday time sales. A point of sale display is a specialised form of sales promotion. Sales display are designed to meet specific marketing objectives and uses both creative, structural and graphical design to maximise brand impact and drive increased sales. They are also known as point of purchase display, kisoks display.

g) Ethical aspects of advertisements-

1. False, not misleading : The basic legal standard for advertising is that ad’s must be truthful and not misleading several factors are considered when analysing whether an ad is truthful and not deceptive. These includes whether the claim made by the advertisement is expressed or implied, who the reasonable consumer is for the product and whether the false or misleading content ( if any) is material enough such that it would influence consumer buying behaviour.

2. Evidence for claims: The other legal standard for advertisement is reliable evidence that supports any claim being made by the advertisements. According to the federal trade commission the exact level of evidence needed varies depending on the claim.

3. Ethical consideration: Ethical consideration fall into a grey area for advertisements it is possible for an advertisement to be legally permissible, but for to be ethical. Ethical consideration relate to the

manner in which the content is been delivered and the message of the advertisements.

4. Advertising regulation: The federal trade commission regulates advertising in the United State. False misleading ads fall into the sphere of federal trade commission jurisdiction. Advertisers face criminal and civil penalties for illegal ads. The same penalties may not apply for unethical ads.

6(a) What is an advertising appeal and how will you classify them? Describe the essential of advertising appeal.

Answer- An advertising appeal is the device by which specific consumer response is solicited in the advertisement. It is the basic use of service or satisfaction which the product can render and which the advertisement is to present. An appeal in an advertisement is an earnest request or a plea to prospect. Every advertiser aims to appeal to the prospects whether he succeeds or not in achieving his goals. In that sense, every piece of advertisement is on appeal telling the story of his with reasons as to why a prospects should prefer his product to those of his competitors.

The classification of advertising appeal are-

1. Products/service related appeals.

2. Consumer related appeals

3. Non consumer or non-products related appeals

1) Product/ services related appeals- A product/services related appeal focuses on the product/services and characteristics it describe some features or aspects of a products. Consumer benefits is of secondary importance. There are five such advertising appeal.

a) Features appeal- The advertisement that uses a products/ service feature appeals describe the products/ services and its dominant features. Various assertion are made about its capabilities

b) Competitive advantages appeal- Such an appeal makes an explicit reference to competitive product/services, very often by name and the product/services advantage depends upon the performance that is superior to competitors on some particular criteria.

c) Price appeal– This kind of appeal makes a direct offer of product/services at a particular price at a reduced price

d) News appeal- The key aspect of news appeal is that news about the products dominate the advertising. Many a times such appeal tell that the products is entirely new.

e) Popularity appeal- A product/services popularity appeal asserts that the product/services is widely used, that it is popular brand or that it is number one in category.

2) Consumer related appeals- Consumer related appeal describe the product/services in term of event consumer benefit. The primary emphasis is on what a product/services will do for the consumer than what a product/services is. There are five such consumer appeal-

a) Services appeal- The advertisement that offer a consumer services, instruct the consumer as to how the product or services may be used to his or her advantage.

b) Saving appeal– consumer savings through the use appeals offer the consumer an opportunity to save money or reduce expense through the use of product or services.

c) Self enhancement appeal- The appeal of this kind suggest that use of a particular product/services will enhance or improve some inherent quality of the user.

d) Fear appeal– Fear appeal are used in advertising to portray a threatening situation that can be resolved through product or services use.

e) Product trial appeal– When this appeal is used, the advertiser offers free sample, a price reduction or some other purchase incentive to encourage consumer use or trial.

3) Non consumer/non product related appeals- These are the appeal based either upon the good work of companies or non profit organisation or upon some of generalised corporate or organisational activity for which public support is desired. There are two such appeals-

a) Corporate citizenship appeal– Advertisements based on corporate citizenship appeals seek to portray a company or a corporation in some part of favourable light or to present its side of a controversial issue.

b) Invertor solicitation appeal- These appeals are to the investment community. The purpose of such appeal is to suggest to the potential investor that the company is well managed, profitable and makes a wide range of well-known products.

The essentials of advertising appeal are-

1) It is communicable- An advertising appeal is communicable, the prospect must understand the message to be conveyed by the advertiser.

2) It has good theme– Substance of an advertisement constitutes its theme. A price of advertisement can communicate effectively if it has anything communicable.

3) It its interesting creating- The prospect envince interest in the advertisement only if it is appealing to their mind and it is appealing provided it stirs his imagination and makes him to show his interest.

4) It is believable- The theme so presented must be believable. Incredible and fantastic claims made can only produces negative results.

5) It is complete- A good appeal is complete but not superfluous. In order to make an appeal very effective, the advertisement must tell everything about the products, producers and the dealer to make the prospect to commit for purchase.

6) It is true- The appeal made must be true while giving the features, merits or benefits there should not be the attempts of mis presenting or exaggerating the fact.

b) What role does advertising play in the economic development of the country. Enlist the benefits of advertising.

Answer:

1. Advertising performs an economic function for an advertiser,

affect economic decision of the audience and is an integral part of the whole economic system. 2. Advertising stimulates demand, educate consumer about new

product policies, programmes services and organizations, increase competition and improve standard of lifestyle by helping to bring new product to the consumer. 3. Advertising boosts the economy by helping to introduce new

products faster and more effectively to consumer by supporting to achieve the economies of scale faster and by helping to remove the monopoly of the products. 4. The advertised products are not always the best products in

the markets. There are some unadvertised products also present which are good enough. But advertising helps to increase the value of the products by showing the positive image of the products which in turn helps convincing customer to buy it. 5. Some advertised products do cost more than unadvertised product but the vice versa is also true. But if there is no

competition in the market for those products, the prices have to come down. 6. Even if the products is heavily advertised, it does not mean that

demand or say consumption rates will also increase. The product has to be different with better quality and more variety than other. 7. Advertising no doubts helps in employing more number of

people. It helps in collecting more revenues for sellers which they use for betterment of products and services.

The benefit of advertising are-

1. Helping in generating more employment– Advertising is a complicated task and lot of people are involved in the making of an advertisement. Advertising is instrumented in generating more employment and opportunities and creating diverse kinds of job. 2. Helpful in the economic development of the country- Advertising increases sales, employment and profits. The overall effects of all this is economic progress for the nation as well as the world as a whole. Thus advertising proves helpful in the economic development of the country. 3. Helpful in improving the standard of living- Though the medium of advertising people get information regarding new products. As people use these new and latest products, their standard of living gets a boost. Advertising is helpful in providing employment and increasing income of the people. 4 .Information to the customer- Advertisement about new products keeps the customer informed about the new developments in the industry. They help to provide them information regarding the newly launched products and service, their utilities, cost and other requirements and help the customers in making better purchases.

5. Takes care of customers– Advertising takes care of customers. It helps in holding on to the loyal customer, decreasing the number of lost customers and enlisting new customers. Thus the overall effect of advertising will be increase in the number of customers that will gradually become loyal to the product. 6. Improves the sale of product– Advertising facilitates a noticeable increases in the sale of the products. Advertising also attract huge number of potential customers and make positive impact about their products and services. 7.Religious and moral benefits– Social and religious institutions use advertising for communicating their messages like message of patriotism, faith, compassion, tolerance and charity towards needy, messages related to health and education. These advertisement educates people and guide better behaviour.

8. Promotes brand name of the product– Advertisement creates and promotes brand names for the products. People recognise the products from the catchy ads they see and thus sales are also improved.

9. Alters the attitude of the people– An effective advertisement results in a swift change in the attitude and habit of the people.

10. Feedback from customers– Advertisement can also lead to direct feedback from customers. It has been researched that a lot of opinions and view point are received by the advertisers on their product and services which help them in improving their products and services further.

7(a) What do you mean by the term ‘Direct mail advertising’? What factors would you consider while selecting an appropriate medium for advertising?

Answer: Direct mail advertising is the process of sending offers or promotion by mail to current customer or other consumer. Direct mail advertising pieces often includes a sales letter, brochure order form and prepaid envelope. Small companies will also advertise in direct mail magazine or inserts with other companies to save on costs. A number of benefit accrue to using direct mail advertising. Direct mail composes a wide variety of marketing material including brochures, catalogues, postcards, newsletters and sales letter. Major corporation known the direct mail advertising is one of the most effective and profitable way to reach out to new and existing clients.

Direct mail is a type of advertising medium in which messages are sent to target customers through the mail. The term direct mail and mail order are often use interchangeably. Direct mail is particularly attractive option for small business owners, as it can communicate complete information about the product or service and reach almost any conceivable target group, all for a relatively low cost. It can provide the basis for a business, or it can be used tto supplement a company’s traditional sales efforts.

The factors that we would consider while selecting an appropriate medium for advertising are-

1) The nature of the products– The nature of the products determines which type of advertising media is the most effective. If the product require demonstration, television and digital advertising will work best. Items like wines, alcohol and cigarettes are only ever advertised in print media. 2) Objective of the firm– Company’s general and advertising objectives are the prime consideration in media selection. Those media capable to meet company’s expectation are

likely to be selected. Advertising objective may be to inform remain convince, create prestige or to increase sale and profit. 3) Cost media and company financial position – Media selection

decision is highly influenced by media costs and firm’s ability to pay. Company has to pay for buying space or time and preparing advertising copy fit for the media to be selected. T.V., radio, films are costly in terms of buying time and preparing advertising copy. 4) Company’s advertising policy and approach– Company’s

advertising policy and approach determine which of the media should be selected. For example- if company policy is not to spend more money for advertisement and to offer the product at a low price, it may go for cheaper media. 5) Types of buyer– People to be influenced should be taken into account while selecting the media. Buyer can be classified into various classes as discussed in market segmentation. For the firm it is important to know whether the target group can be exposed by the particular medium. 6) Coverage– The area covered by the medium is an important criteria. Some media are capable to cover the globe while some can cover only the limited locality. 7) Past experience– Company own past experience may be

instrumental to decide on advertising media. For example if the company has satisfactory experience of using a particular medium, there are more chances to use the same medium and vice versa. 8) Experience of other companies– Experience of other

companies is one of the important consideration in media selection. Company may try to know what other companies say about applicability and usefulness of various media. Views of other companies must be followed with care and caution.

9) Type of advertising message– Each advertising message

needs specific advertising vehicle. If a message is simple, print media are sufficient. If the message is complicated and the company wants to demonstrate and explain audio visual media suit the need. 10) The budget available– A manufacturer may have a very

colourful and bold plan of advertising. He may be dreaming of advertising on a national television network and films. If the budget does not allow, then he is to be happy with a low budget media like newspaper and outdoor advertising. Instead of colour print in magazines, he may be forced to go in for black and white. Thus it is the resource constraints that decides the choice. 11) Media availability– The problem of Media availability is of such relevance because all the required media may not be available at the opportune time. This is particularly true in case of media like radio and television so is the case with screen medium. Thus non availability of medium or a media passes a new challenge to the media planners and the people advertising industry. 12) Potential market– The aim of every advertising effort is to carry on the ad message to the prospects economically and effectively. This crucial tasks rest in identification of potential market for the product in terms of the number of customer, geographic spread, income pattern, age group, tastes, like and dislikes and the like.

(b) Explain the economic and social perspective of advertising.

Answer: Social perspective of advertising

1. Informed society– Through advertisement, the society is

informed about various products, their uses, best bargains,

safe handling of dangerous goods, effective use of scarce resources like petroleum and electricity, technology advances etc. But for advertising, the society would have remain the less informed one. 2. Health and hygiene awareness– The advertisements on health drinks, toiletry products, sanitary ware and their installation etc. make the people become aware health and hygiene. Also advertisement on protected drinking water, effluent treatment etc. help people live better. 3. Right of consumer– The right of consumer are made aware

through advertisement only. The spread of consumerism and awareness of consumer rights are also due to advertisements. 4. Preventive case for dreaded diseases– Dreaded disease like

AIDS are informed to the people as to their cause, spread and preventive measures against them. 5. New ideas– Generally people are traditional. They should be

informed of the development of latest technology. Creative advertisement render an effective service here. 6. Advertisement contribute to creativity of the people– Look at certain advertisements. Your bathroom can be a glamour room is presented by the Parry’s sanitary ware. Perhaps next to the nature the art of advertising is more creative in anybody’s knowledge. 7. Environmental protection– Environmental protection is the need of the hour. For example- the Tamil Nadu Pollution Control Board has launched an effective campaign highlighting against the indiscriminate use and burning of plastics. Such messages are brought to the notice of people through advertising. 8. Social change– Social changes like accepting women as equals,

empowerment of women, concern for the girl child and curbs on female infanticide, developing public opinion against child labour etc. are created through advertisements only.

9. Quality consciousness– Concern for quality of a product,

process or even life, work, education and investment etc. is promoted through advertisement. 10. Promotion of national interest– National interest is

promoted through advertisements as well. Complying with tax laws, complimenting export achievement, promotion of tourism, protection of monuments, creating political awareness of citizens are pursued through advertisements.

Economic perspective of advertising-

1. Advertising performs an economic function for an advertiser,

affect economic decision of the audience and is an integral part of the whole economic system. 2. Advertising stimulates demand, educate consumer about new

product policies, programmes services and organizations, increase competition and improve standard of lifestyle by helping to bring new product to the consumer. 3. Advertising boosts the economy by helping to introduce new

products faster and more effectively to consumer by supporting to achieve the economies of scale faster and by helping to remove the monopoly of the products. 4. The advertised products are not always the best products in

the markets. There are some unadvertised products also present which are good enough. But advertising helps to increase the value of the products by showing the positive image of the products which in turn helps convincing customer to buy it. 5. Some advertised products do cost more than unadvertised product but the vice versa is also true. But if there is no competition in the market for those products, the prices have to come down.

6. Even if the products is heavily advertised, it does not mean that

demand or say consumption rates will also increase. The product has to be different with better quality and more variety than other. 7. Advertising no doubts helps in employing more number of

people. It helps in collecting more revenues for sellers which they use for betterment of products and services.

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