Product Life Cycle

Topics: Advertising, Mass media, Sales Pages: 20 (4085 words) Published: December 8, 2012
According to American marketing association (AMA) “Advertising is any paid form of non – personnel presentation and promotion of goods, services or ideas by an identified sponsor”. To advertise means to notify, inform, or describe (goods) publicity with a view to increase sales, to make a thing or idea publicly known. Features of Advertising:

1. Paid form: Advertising is paid for and hence it is a commercial transaction. This feature distinguishes itself from publicity. In short, advertising is a paid form of publicity. 2. Impersonal Presentation: Advertising is non- personal. The advertiser and consumer do not come into personal contact. Thus advertising is a monologue and not a dialogue. 3. Speedy and mass communication: It is speedy media of communication. Its operation area is also very vast i.e. it reaches millions of people simultaneously. 4. Identified sponsors: Advertisements are identifiable with their sponsor or originator. Sponsor can be seller or the producer of that product.

Difference between Advertising and Personal selling:

Advertising| Public Selling|
* It is mainly impersonal| * It involves face to face contact with the buyer| * It is a mass communication.| * It is inter personal communication.| * It is a one way communication(monologue)| * It involves two way communications (dialogue).| * Delayed feedback.| * Quick feedback.|

* It is costly.| * It is cheaper.|
* It involves use of written, oral and visual messages.| * It involves use of spoken words only (oral message).|

Difference between Advertising and Publicity:

Advertising| Publicity|
* It is a paid form of mass communication.| * It is not a paid form of communication.| * The sponsor is known.| * It need not have identified sponsors.| * All advertising is publicity.| * All publicity is not advertising.| * In case if the message is ignored by the audience it is the advertiser who suffers.| * In case of publicity it is the audience that suffers.|

Difference between Advertising and Sales promotion:

Advertising| Personal Selling|
* It may have long term or short term effect| * It always has short term effect| * It moves the consumer towards the product| * It moves the product towards the consumer| * Advertising media’s are indoor, outdoor direct and display.| * Sales promotion media’s are contest, prizes, offers, gifts, vouchers etc.| * Advertising is both repetitive & frequent| * It is not repetitive and frequent|

Objectives of Advertising:
1. To inform about the new products availability, features, prices etc. 2. To build brand recognition.
3. To modify the buying motives of the existing products. 4. To build overall company image.
5. To increase market share or sales.
6. To increase the frequency of use of a product.
7. To effect immediate buying action.
8. To help salesman in selling the product.

Role of advertising:
Advertising is an integral part of our social and economic system. It is a powerful technique that influences the consumption patterns, production and exchange of goods. The role of advertising can be analysed from 5 distinct angles. Namely: 1. Manufacturers

2. Middlemen
3. Salesmen
4. Consumers
5. Society

* Benefits to manufacturers:

1. It increases and stabilizes the sales volume:
Advertising changes the consumer’s attitude favourably by regular, effective and frequent advertising. It also helps in building more loyal class of customers at all time.

2. It maintains the existing market and explores the new: A company’s success is reflected not only in creating market but its maintenance and extension. In such newly exposed markets,...
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