Functions of advertising

Functions of advertising

1.   To differentiate the product from their competitors

An important function of advertising is the identification function, that is, to identify a product and differentiate it from others; this creates an awareness of the product and provides a basis for consumers to choose the advertised product over other products

The identification function of advertising includes the ability of advertising to differentiate a product so that it has its own unique identity or personality. There are four additional ways to differentiate your offering from the competition and increase your differentiation: leveraging the brand, innovating your service offering, as well as designing product and packaging in a way that creates an aesthetic beyond the functional. None of these methods are expensive. All are ways that can increase your perceived value to the customer and increase your market share.

           Example: GARNIER FRUTICS (shampoo) the shampoo bottle have the different color from all other shampoo available in the shelf. The bottle of the shampoo is unique from all others.

          Example: apple laptops make them different from others as the WHITE color and logo of APPLE on back of the screen.

2.   To communicate product information

Another function of advertising is to communicate information about the product, its attributes, and its location of sale; this is the information function. Product information communicated to the customers in manner that meets their information needs. Most consumers tend to discount the information in advertising because they understand that the purpose of the advertising is to persuade. Making an advertising message believable is not easy; though often it is sufficient to make the consumer curious enough to try the product. Advertisers use a variety of devices to increase the believability of their advertising: celebrities or experts who are the spokespersons for the product, user testimonials, product demonstrations, research results, and endorsements.

Example:

Ponds age miracle, in that ad the celebrity HADIQA KAYANI is informing the consumers about the benefits of it. That how the old women can look younger by using it continuously. It will make you fair cream plus it reduces wrinkles plus it can be used as a sun block as well it will make you look young.

3.   To urge product used

The third function of advertising is to induce consumers to try new products and to suggest re-use of the product as well as new uses; this is the persuasion function.

The basic function of advertising is to provide constant reminders and reinforcements to generate the desired behavior the advertiser wants from them. This is a particularly effective function in the long run as reminders and reinforcements register in the consumers' minds, becoming the base on which they shape their future decisions.

Example:

Fair and lovely as we know that it will make a girl look fair and prettier in 4 weeks.

Example: Neutrogena acne treatment cream will remove your pimple is 24 hours. NEUTROGENA say no to pimples!!

4.   To expand the product distribution

When the consumer comes to know about the particular product from the advertisement he/she wants to try that new product. They go to shops to buy the product; if the new product is not available in a shop then the shopkeeper consults the distributor to make that product available in his shop. It is basically to provide the product all over market. It is necessary to make sure that product should be accessible to everyone. Availability of product effect the distribution.

Example:

Wateen telecom and Motorola Partner to Expand Distribution of Videoconferencing Product Line in Pakistan. So as many people are getting to know about this facility they are running towards the franchises to avail it. So for that Wateen should expand their distribution all around the cities.

Accessibility is major factor for successful product

5.   Too increase brand preference and loyalty

Marketing is a moving thing. As your needs are changed your preferences are changed. When the product delivers the promised quality, service and value, it creates satisfied customers who become instrumental in spreading a favorable word-of-mouth. Satisfied customers also develop brand preference; each product features and uses are written on the product.

Example: 99% girls who are not married will not look at the ad of pampers or any milk powder for children but when they will get married their interest will automatically move towards such ad'

Brand loyalty

Brand loyalty is a long-term customer preference for a particular product or service. Brand loyalty can be produced by factors such as customer satisfaction with the performance or price of a specific product or service, or through identifying with a brand image. It can be encouraged by advertising.

People often make purchasing decisions based on how a brand makes them feel emotionally rather than based on quality or other objective evaluations. If "Just Do it" strikes a chord with an athlete, he'll buy Nike; the decision may have little to do with quality.

Example: For instance, when one buys a tube of Colgate toothpaste and finds it ok, one will not have to spend any valuable time on looking for other toothpaste brands.

6.   To reduce overall sales cost

Like if we would advertise through newspapers, TV, broachers and internet, it would cater huge sum of masses and if you do individually it would be more costly and time consuming.

Example: Coke targets their consumers on a very large scale through mass media whereas Makka cola advertise on smaller scale or go door to door to advertise their product.

7.   Creates new demands

Advertising have to create new demands they should educate the people about more and more new things coming up in the market. Each year new products, including line extensions and new brands are introduced into groceries and drugstores.

Example: TATA telecom is offering wireless internet chips, video conferencing and telecalling services as they are introducing new services in market its creating new demands.

Example: Maggi is introducing its new flavors in the market and creating the demand.

8.   When a product is selling you have to teach the people about the product

Advertisement teaches and guides the buyers about the product, services and idea. Many times, advertisement talks about the features and the advantages of the advertised product. It gives demonstrations of the product thereby disseminating its easy use feature and comfort ability.

Example: Whirlpool Washing machine advertisement tells about the easy to use feature of their product by demonstrating that a child can use it without adult supervision.

History of Advertising

History of Advertising

It is difficult to trace the history of advertising, because the nature and definition of advertising have changed drastically over time.

The evolution of advertising in the west can be known in the terms of the various phases of the growth of advertising, are as follows:

Advertising in the pre-printing era:

History of advertising goes back to about 5000 years including the modern satellite and internet age.

·       The digging by archaeologists, in countries rimming the Mediterranean Sea, has unearthed the Babylonian clay tablet of about 3000 BC, bearing the inscription for an ointment dealer and a shoemaker.

Before the invention of the printing there were three forms of advertising:

1.   Trademarks: Craftsmen, in early times, wanted to be identified for their skills and their individual marks on goods that they crafted. Buyers learnt to look for distinctive marks just as we look today for the brands and trademarks on the products.

2.   Signs: Phoenicians, and other traders, painted commercial messages on prominent rocks along trade routes.

3.   Town criers: this system of town criers was perhaps, present in all developed civilizations of the ancient world. In Greece, during the Golden Age, town criers were paid to go around the town spreading news and making announcements. Epics and history books about the ancient India reveals that the rulers used the system of town criers in India to inform the public of various public interest matters. In rural India, towns’ criers were used till as late as the 1950’s.

·       In the pre printing era, some form of advertising, through signboards and town criers, did exist. The sign boards were used to identify the places, traders and artisans and to inform people about the location of certain goods and services.

`    For example: the symbol of goat signified a dairy; a mule working a mill signified a bakery; a cobbler would hang the shoe outside his shop to signify the shoe shop ; thousands of year ago, the Greeks used criers to announce the sale of slaves.

·       Advertisement began with the invention of the printing press in 1441. Newspaper began as a medium for advertisements.

·       The first ad, in any language, to be printed on a circulated sheet appeared in German news pamphlets in about 1525.

·       The first advertisement printed in English newspaper came out in 1625.

·       The first ad in America appeared in 1704 in the Boston Newsletter.

·       According to Longman, newspapers carries news item and small classified type advertisement in the latter part of the 18^th century. The Times, carry the advertisements on page till 1966.

·       The first visible signs of advertising came in the form of advertising hand cards and later posters, now days known as leaflets, hand cards carrying information about the goods and services sold by various merchants were distributed on the streets.

·       In 19^th century, so many posters were pasted on the walls of London that it look city made of paper. United Kingdom also follows the same pattern.

The Industrial Revolution/ Development of Modern Advertisement

·       With the industrial revolution, the market was flooded with similar products. The use of expensive machinery required production and consumption on large scale. With similar products available, companies needed persuasive communication to create demand for particular brands and this made advertising more widespread.

·       In the late 19^th century, advertising witnessed magazines becoming an important advertising medium.

·       The invention of bicycle gave rise to competitive advertising according to Cohen 1988.

·       At the same, when some medicines were patented, the idea of brand was born. Dr. Drake and Dr. Lydia Pinkham have introduced medicines to advertisement.

·        Advertisement began in mid 19^th century. Volney B Palmer was the first advertising agent who established an office in Philadelphia. For a fee, he worked as an agent for 1400 newspapers. He sold the space to the advertisers throughout the country. He did not provide any creative service to the client, except the media selection.

·       Advertising historians consider John Powers to be the first copywriting ‘superstar’ in the 1880’s.

·       J.Walter Thompson, a young advertising executive, signed an exclusive contract with twenty five of the best Amercian magazines. He is also known as the inventor of the modern advertising agency.

·       During the 1920’s, modern marketing research entered the world of advertising. As a result of this new development, advertising in this period started stressing on the outcomes of consumer purchases such as health, happiness, status and love etc. Print Advertisement contains the bold headline, artwork, photography and plenty of colour.

·       Before the severe depression of the 1920’s radio was not being used for advertising. Though during this time commercial was emerged but no advertisement was started.

Contemporary Advertisement

Most of the growth in advertising has happened after Second World War. Excessive mechanized production and serious efforts to rebuild nations and economies were under ways. Western Europe and the Far East started to compete in world markets and advertising became an essential part of this new economies. Large economies like General Motors, Coca Cola and IBM had long been active in all over the world.

·       After 1946, quite a number of medium and small companies entered the international market.

·       Large advertising agencies of USA, Western Europe and the Far East started opening their offices in several countries.

·       During 1950’s Specialist In market research, sales promotion, merchandising and public Relations started running the advertising industry. Creativity in advertising was almost nonexistent till then and ads were mostly “me too” type of messages with lot of wordy visualization a small copy.

·       It is during this time Rosser Reeves of Ted Bates Agency was the first most successful among copywriters. He originated the concept of USP (Unique Selling Proposition).

Role of the Advertisement

Role of the Advertisement

Apart, from the marketing function of the advertisement. It can also be explained in the terms of the roles played by it in business and society:

1.    Marketing

2.    Communication

3.    Economic

4.    Societal

THE MARKETING ROLE:

Marketing is the process a business uses to satisfy consumer needs and wants through goods and services. The particular consumers at whom the company directs its marketing effort constitute the target market. The tools available to marketing include the product, price and the means used to deliver the product, or the place. Marketing also includes a method for communicating this information to the consumer called marketing communication and promotion.

 Marketing communication consists of several related communication techniques including advertising, sales promotion, public relation and personal selling. The role of advertising, within the marketing, is to carry persuasive message to actual and potential consumers.

THE COMMUNICATION ROLE

Advertising is a form of mass communication. It transmits different types of product and market information to match buyers and sellers in market place. Advertisement both informs and transforms the product by creating an image that goes beyond straightforward facts.

Advertisement helps in:

·       Guiding

·       Educating

·       Informing

·       motivating

the consumers.

THE ECONOMIC ROLE

Advertising plays two important roles that affect the economy are as follows:

                          i.          In the first, advertisement is so persuasive that it decreases the likelihood that a consumer will switch to an alternative product, regardless of the price changed.

By featuring other positive attribute, and avoiding price, the consumer makes a decision on these various non price benefits.

                        ii.          The second approach views advertising as a vehicle for helping consumers assess value, through price as well as other elements such as quality, location and reputation.

THE SOCIETAL ROLE

§       Advertising also has a number of social roles. It informs us about new and improved products and helps us compare products and features and make informed consumer decisions.

§       It mirrors fashion and design trends and add to our aesthetic sense. Advertising tend to flourish in societies that enjoy some level of economic abundance, in which supply exceeds demand. In these societies, advertising moves from being informational only to creating a demand for a particular brand.

§       Advertising increase the competition among the manufacturer of the goods and thereby, it lead to cut in its cost. The fair and pocket friendly price of the commodity leads to the reasonable price.

But the question is: Does advertising follow trends or does it lead them? At what point does advertising cross the line between reflecting social values and creating social values?

Public Relations and Publics

Public Relations and Publics

In marketing, the efforts are directed to winning over the ‘target market’ advertising reaches its ‘target audience’ with messages. Talking about marketing and advertising the messages are direct at a single group of people who considered as a unified whole.

The same is the case with many other fields like films, books, newspapers etc.

Public relations, however, deals with more than one group. It in fact deals with a numbers of groups. These are special groups, whether large or small have different characteristics needs wants etc. Most importantly they play different roles and differ in the type of relationships they share with the organization.

These different groups of people with different expectations and interests are called the “Public” of an organization. The term public relations is really a misnomer. Public relations or relations with the publics would be more to the point. Practitioners must communicate with many different publics, not just the general public each having its own special needs and requiring different types of communication.

Public relations works towards fulfilling these wants and interests and maintaining better relationships with all the public specific communication programmes are devised and implemented for each specific public.

The success of these programmes leads to goodwill employee good will results in increased efficiency, consumer goodwill leads to better returns over the investment, governmental goodwill leads to favourable treatment, community goodwill results in a better climate to work in. This way the goodwill of all the concerned public results in favourable conditions for the growth and success of the organization.

The basic Public

All organizations differ in their way of functioning, organizational structure and the people with whom they deal. So different organizations have different types of public. However there are few basic types of public that are common to most organization these includes.

I)

a) Employees- People who work for the organizations from the too management to the workers.

b) Potential Employees- Those who are studying or working somewhere else, but wish to work for the organization.

c)Consumers, users and clients- Past, Present and potential

d) Share Holders, investors and other financial associates- All those people and organizations who have financial stakes in the organizations who have financial stakes in the organization including banks, brokers, insurance companies etc.

e) The trade chain- the distributors, dealers and retailers etc.

f) Suppliers- Who supply goods, raw material and services etc.

g) Opinion leaders- People, organization and Institutions who can influence the functioning of the organization in any way. Opinion leaders includes the industry the government , business and industrial bodies (FICCI) and other opinion forming groups like consumer forum, environment groups etc.

h) Media- Who reach the people with news and opinions and work as a link (press, radio, TV etc)

·       General Press

·       Business Press

·       Trade Press

·       Wire service

·       Election media

·       Friendly Journalists

·       Local weeklies

·       Inaccurate Journalists

·       Community publications

·       Foreign Press

 

II) The Community- People who lives near the organization premises public can also be classified in to several categories. These are

a) Internal and External Public- Internal Public are the employees (from top to the bottom). External public are those who aren’t directly connected with the organization like the media, government, customers, suppliers, the trade the community, the investors etc

b) Primary, Secondary and Marginal Public- Primary public an influence the organization directly and include the employees, investors, customers, suppliers trade etc. Secondary public are the media and the community. Marginal public don’t have any direct bearing on the organization.

c) Present and Potential Public- Public are never static and permanent. They keep changing today’s public members may leave or dissociate themselves and new public members may leave join the organization.

d) Proponents, Opponents and Uncommitted type of Public- Every institution must deal differently with those who oppose it and those who support it for supporters. Communications that reinforce belief maybe in order but it is difficult to change the opinion of opponents and it calls for strong persuasive communications

Examples- Educational Institution

Employees – Staff and teachers

Customer or clients – Students (Past, Present and potential)

                              Their Parents

                              All those organizations giving employment to the students

Potential Employees- Those who wish to work for the institution

Suppliers- Those who supply books, equipments etc.

The industry – other educational institutions

Opinion Leaders- Educational bodies such as boards, departments and other funding and regulating organization like CBSE, UGC and AICTE etc.

Media- The Press, radio and television which help others known above the institution

The Community- People who live around the institution

Organizations have many public and they are required to communicate with all the public on a direct and frequent basis. The communication must be sensitive to the interests, desires and concerns of each public. Successful PR requires harmonizing of relations to win and maintain support among all the public.

Nature Of Public Relations

Nature Of Public Relations

ü    Public Relations indicates that it is essentially a task promoting rapport and goodwill between a person, firm or institution and the community at large through dissemination of information.

ü    It uses a two- way communication in dealing with public opinion.  

1) Assesses the attitudes of the public towards the organization.

2) Executes communication programmes to gain public understanding and acceptance of the management’s point of view.

3) PR aims to bring about harmonious and mutually advantageous adjustments between an organization and the community through dissemination of idea and also providing feedback from the public to the management. 

4) It evaluates public attitudes, identifies policies that interests public and executes the programme of communication.

Good Public Relations must stand on a sound moral base.

1) To attract attention

2) To win belief

3) To impart understanding

A Purposeful Public Relations Programme should.

Ø    Understanding the organization’s nature and purpose thoroughly.

Ø    Communicate this understanding to others like publics

Ø    Observe and evaluate the effect of the communication.

Elements in Public Relations

v   Two- way communication

v   Mutual Understanding

v   Caring for Public Opinion

v   Social Responsibility

Ethics of Public Relations Professionalism

Ethics of Public Relations Professionalism

Meaning of Ethics

n     “That branch of philosophy dealing with values relating to human conduct, respect to rightness and wrongness of certain actions and to the goodness and badness of motives and ends of such actions.”

n     By dictionary definitions ethics and morality are inter-changeable. Both are concerned with conduct that is right or wrong, according to the accepted standards or principles.   

Ethics in any profession is governed by two factors:

n     A code of professional ethics developed by a professional body

n     Conscience and grooming of human being.

Code of Ethics and code of conduct for Public Relations

n     In the United States Public Relations first developed as a profession, a code of Professional Standards was adopted as early as 1954 and subsequently revised in 1959, 1963, 1977 to meet requirements of situation.

n     Public Relations Society of America

Public Relations Society of America (PRSA)

n     Code of Professional Standards for the practice of Public Relations adopted and effective April 29, 1977.

n     We Pledge:

n     To conduct ourselves professionally, with truth, accuracy, fairness and responsibility to the public

n     To improve our individual competence and advance the knowledge and proficiency of the profession through continuing research and education.

n     And to adhere to the articles of the code of professional Standards for the practice of Public Relations as adopted by the Governing Assembly of the Society.

Articles of the Code:

1. A member shall deal fairly with clients or employers, past and present with fellow practitioners and the general public.

2. A member shall conduct his or her professional life in accordance with the public interest.

3. A member shall adhere to truth, accuracy and generally accepted standards of good taste.

4. A member shall not represent conflicting or competing interests without the express consent of those concerned.

5. A member shall safeguard the confidence of both present and former clients or employers.

6. A member shall not engage in any practice which tends to corrupt the integrity of channels of communication or the process of          government.

7. A member shall not intentionally disseminate false or misleading information and is obligated to use care to avoid communication of false   or misleading information.

8. A member shall not propose to a prospective client or employer that his fee or other compensation be contingent on the achievement of certain results; nor shall he enter into any agreement to the same effect.

9. In performing services for a client or employer, a member shall not accept fees, commissions or any other valuable consideration in connection with those services from anyone other than his client or employer without the express consent of his client or employer, given after a full disclosure of the facts.

10. A member shall not intentionally injure the professional reputation or practice of another member.

International Public Relations Association (IPRA)

n     The International Public Relations Association was formally established in London on May 1, 1955, with the adoption of constitution and the appointment of the first IPRA Council.

n     Today IPRA constitutes the international forum of public relations practitioners worldwide.

n     IPRA s engaged in promoting exchange of information and co-operation in every sector of the profession and building opportunities for professional development.

n     The Code of Athens as the IPRA General Assembly adopted it in Athens in May 1965.

Code of Athens

n     Each member shall Endeavour:

1. To contribute to the achievement of the moral and cultural conditions enabling human beings to reach their full stature and enjoy the indefeasible rights to which they are entitled under the ‘Universal Declaration of Human Rights’.

2. To establish communications patterns and channels which, foster the free flow of essential information, which make each member in the  society in which he lives feel that he is being kept informed, and also gives him an awareness of his own personal involvement and  responsibility, and of his solidarity with other members.

3. To bear in mind that because of the relationship between his profession and the public, his conduct- even in private- will have an impact on the way in which the profession as a whole is appraised.

4. To respect, in the course of his professional duties, the moral principles and the rule of the ‘Universal Declaration of Human Rights’

5. To pay due regards to, and uphold, human dignity, and to recognize the right of each individual to judge for himself.

6. To encourage the moral, psychological and intellectual conditions for dialogue in its true sense, and to recognize the right of these parties involved to state their case and express their views.

n     Shall undertake:

7. To conduct himself always and in all circumstances in such a manner as to deserve and secure the confidence of those with whom he comes into contact.

8. To act, in all circumstances, in such a manner as to take account of the respective interests of the parties involved: both the interests of the organization which he serves and the interests of the publics concerned.

9. To carry out his duties with integrity, avoiding language likely to lead to ambiguity or misunderstanding and to maintain loyalty to his clients or employers, whether past or present.

n     Shall refrain from

10. Subordinating the truth to other requirements.

11. Circulating information which is not based on established and ascertainable facts.

12. Taking part in any venture or undertaking which is unethical or dishonest or capable of impairing human dignity and integrity.

13. Using any ‘manipulative’ methods or techniques designed to create subconscious motivations which the individual cannot control of his own free will and so cannot be held accountable for the action taken on them.

Public Relations Society of India (PRSI)

n     The Public Relations Society of India (PRSI) is the national association of public relations practitioners and communication specialists in India.

n     It functions primarily for professional development.

n     It also maintains close links with the academic bodies for promotion of public relations as a subject of management studies.

n     PRSI came into being as an informal body in 1958 with its headquarters in Mumbai.

n     The genesis of the Society in kolkata can be traced to 1965 when Sanest Lahiri, Shanker Mitres, R. P. Gupta, Prasanta Sanyal, J. M. Kaul and other pioneers of the profession formed a nucleus, known as the

Public Relations Circle

.

n     However, this was formally merged with the national body in 1968 to strengthen the public relations movement on an all-India basis.

n     The National Council, the apex body of the PRSI, annually organizes All India Public Relations Conferences to highlight its contemporary relevance.

n     It has a quarterly journal 'Public Relations' which seeks to promote the cause of public relations by bringing to its readers news and articles on public relations in India and abroad.

n     The Society has 30 chapters spread all over the country. Members of the Society, numbering over 3000 are drawn from the private sector and public sector corporations as well as from the government, non-profit organizations and academic bodies.