ADVERTISING

FUNCTIONS AND ROLES

• What is Advertising?
• Advertising is:
– Paid,
– Non-personal Communication,
– From An Identified Sponsor
– Using Mass Media,
– To Persuade or Influence
– an Audience.
 Functions of Advertising :
• To identify and differentiate from other
offerings
• To communicate information about the
product
• To induce consumers to try new products
and to suggest reuse
• To stimulate the distribution of a product
• To increase product use
• To build value, brand preference, and
loyalty
• To lower the overall cost of sales
• To associate feelings with brand
• Provide Product & Brand
Information Provide Incentives
• To Take Action
• Provide Reminders and
Reinforcement Advertising
 Roles of Advertising :

• Roles of Advertising
– Marketing Role
– Communication Role
– Economic Role
– Societal Role
 Roles of Advertising

Marketing Role
•Marketing is the process a business
uses to satisfy consumer needs and
wants through goods and services.
Communication Role
•Advertising is a form of mass
communication.

Economic Role
•Two main views about advertising,
either the market power model or the
economics of information theory.

Societal Role •Informs us about new and improved

products, teaches us how to use these
innovations, etc.
 ECONOMIC ROLE

• Advertising is basically an economic

institution.
• It performs an economic function for an
advertiser affect economic decision of the
audience and is an integral part of the whole
economic system.
• Here are some of the economic role and
benefits of advertising:
– Advertising encourages economic growth.
– Providing information utility.
– Distribution costs
– Effects on business cycles
– Providing product utility
.

• At all economic level,

– advertising stimulates demand,
– educate consumer about new product,
policies, programme services and
organizations,
– increase competition and improve standard
of life-style by helping to bring new product
to the consumer.
• It is a fuel that boosts the economy by
helping to introduce new products
faster and more effectively to
consumer by supporting to achieve the
economies of scale.
 SOCIAL ROLE
• At social level advertising plays upon, derives
from and contributes to the social texture of a
country. Advertising reflects society and society
reflects advertising.
• Various social changes are brought about or
helped by advertising.
• It makes role models who can create societal
change.
• Adult education, family planning and pulse polio
campaign also used to sell the concept of social
advertising.
• It is a positive force in our society. It makes the
nation's social welfare.
• The Societal Role Informs people about
new and improved products and services
that solve their problems in a better way
– use of new technological products
• It mirrors fashion and design trends and
make life more colorful.
• Advertising creates competition and
pushes suppliers to improve in order to
survive.
 There are five roles of
advertising to social welfare
• Efficient source of information for both
consumers and industrial buyers for product
quality, new material or merchandise, new
technology and cost.
• Reduces distribution costs through personal
selling.
• Encourage competition. It increases product
quality through solid brand identity.
• It creates publicity for material and cultural
incentives of a liberal enterprise society.
• It makes able media all mass media to
maintain independence from government,
political parties and other special interest
groups.
 The Marketing Role
• It is a part of 4 Ps Marketing
• Product needs some sort of
communication to reach its target
market.
• The role of marketing is to carry
persuasive message to actual and
potential customers.
• Advertising and marketing play a
vital part in promoting and
developing a business.
• It helps a business in the following ways:
• * It determines the customer’s needs
* It aims at having more profitable sales
volume
* It analyzes the competitive advantages
* It selects specific market to serve their
products
* It reminds the customers about the benefits
of using your products
* It enhances your business reputation by
creating a positive image
* It establishes your discrete identity
* It encourages your existing customers to
buy more of your products
* It attracts new customers
• As the manager of your business,
you need to understand the right
techniques to develop and market
your products and services.
• So, you should know how to use
marketing and advertising programs
in your business, so that these can
make your business grow rapidly
and give you a greater position and
advantage in the marketplace.
 The Communication
Role
• Advertising is a form of mass communication
transmits different types of market
information that brings together buyers and
sellers in the market place.
• Marketing communications can be defined as
the process of:
– presenting an integrated set of stimuli to a market
target with the aim of raising a desired set of
responses within that market target;
– setting up channels to receive, interpret and act on
messages from the market to modify present
company messages and identify new
communications opportunities.
• As both a sender and a receiver of
market-related messages, a
company can influence customers
to buy its brands in order to make
profit.
• And all this can be done through
advertising.