1.1 Origin of advertising
The origin of advertising does not lie in the modern industrial age, but it has its roots in the remote past. Thousand of years ago most people were engaged in hunting, farming, or handicraft related activities. They used to barter products among themselves. Distribution was limited to how far the vendor could walk and distribute, advertising was limited to how loud they could shout. Perhaps the earliest form of advertising was simply the trader shouting out the fact that he existed and naming what he had to sell in the local market place.
As an instrument of marketing, advertising was an effective through multiple sales people reaching many people at one time. Then it had used the media as a tool.
The American marketing association defines advertising as “any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor”. Advertising doesn’t change the physical properties of the product but than also it is the most compulsory expense for creating demand for the product.
1.2 Impact of advertising
Advertising plays an important role in today’s competitive business world. It provides benefits to Manufacturers, Retailers, Customers, Salesman and Society as well.
* Introduces a New Product:
Advertising is used to introduce a new product in the market. It helps to compete with establish brands and, thereby, ensures the survival and success of new product.
* Creates Demand for Product:
Advertising creates demand for the product. Advertising spread information about the product or services and makes consumers aware about it through various mass media which makes positive effect on the mind of the people and create demand for the product.
* Expand Market:
It helps in expanding local markets, to national level and even to international level. Trading at national and international level is impossible without advertising
* Assists Personal Selling:
Advertising reaches a prospect before a salesman could. The prospect is well informed through advertising. Makes the salesman’s job easier.
* Building Brand Image:
The purpose of repeat advertisings is to make people more brands conscious. Once good brand image is developed, buyers generally become brand loyal. Money spent on advertising is a long term investment to build brand and company image.
* Reduces the cost of goods:
Advertising generates more demand, which leads to large scale production and distribution. This results in economies in large scale which in turn reduces cost of goods.
* Persuades prospects:
Every competitor makes superior claims of his product. Therefore, a prospect needs to persuade to buy products. So, the role of Advertising is not only to inform but also to persuade.
Advertising provides employment in the field of advertising to copywriters, models, etc. It provides indirect employment in society due to large scale production and distribution.
1.3 Role of advertising in marketing mix.
Marketing mix refers to advertising combination of four elements of marketing useful for large-scale marketing. Such elements are: Production, Price, Place, and Promotion (4 Ps).
According to W.J. Stanton “Marketing mix is the term used to describe the combination of the four inputs which constitute the core of advertising company’s marketing system: the product, the price structure, the promotional activities and the distribution system”
Advertising and elements of marketing mix:
* Advertising and product:
Product is the core element in the marketing mix. The market demand finally depends on the popularity and utility of the product. Popularity again depends on the Quality, benefits and uses of the product. It is necessary to give publicity to physical and other features of the product. Such information needs to be...