Outline the Main Benefits and Costs to Society from Advertising. Does Advertising Necessarily Lead to a Higher Price for the Product?
Outline the main benefits and costs to society from advertising. Does advertising necessarily lead to a higher price for the product?
Advertising is an important component of the promotion of the marketing strategy, along with direct marketing, PR etc. The aim is to promote business and communicate the information to the intended audience to increase sales. Businesses that continue to advertise regardless of economic times have a competitive advantage over businesses that trim their ad budgets. The whole process of selling products or services to the market is intimately concerned with understanding customers’ needs, motivating the sale of the product or service, and distributing it to customers – whether private consumers or industrial buyers and users.
Advertising is that part of the process which is concerned with informing customers of the existence of the product and service. If you company invents and produces a product, no matter how excellent and desirable it is, it will not sell until people know about it. (Peter, 1989)
Advertising is one element of the marketing mix. The marketing mix is generally accepted as the use and specification of the four Ps describing the strategic position of a product in the marketplace.
The fundamental dogma of marketing typically identifies the four Ps of the marketing mix as referring to:
• PRODUCT - An object or a service that is mass produced or manufactured on a large scale with a specific volume of units. A typical example of a mass produced service is the hotel industry. A less obvious but ubiquitous mass produced service is a computer operating system. Typical examples of a mass produced objects are the motor car and the disposable razor.
• PRICE – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer 's perceived value of the product. The business may increase or decrease the
Advertising is an important component of the promotion of the marketing strategy, along with direct marketing, PR etc. The aim is to promote business and communicate the information to the intended audience to increase sales. Businesses that continue to advertise regardless of economic times have a competitive advantage over businesses that trim their ad budgets. The whole process of selling products or services to the market is intimately concerned with understanding customers’ needs, motivating the sale of the product or service, and distributing it to customers – whether private consumers or industrial buyers and users.
Advertising is that part of the process which is concerned with informing customers of the existence of the product and service. If you company invents and produces a product, no matter how excellent and desirable it is, it will not sell until people know about it. (Peter, 1989)
Advertising is one element of the marketing mix. The marketing mix is generally accepted as the use and specification of the four Ps describing the strategic position of a product in the marketplace.
The fundamental dogma of marketing typically identifies the four Ps of the marketing mix as referring to:
• PRODUCT - An object or a service that is mass produced or manufactured on a large scale with a specific volume of units. A typical example of a mass produced service is the hotel industry. A less obvious but ubiquitous mass produced service is a computer operating system. Typical examples of a mass produced objects are the motor car and the disposable razor.
• PRICE – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer 's perceived value of the product. The business may increase or decrease the
Bibliography: 1. Peter, A. (1989). Selling: Management and practice. London: Pitman Publishing 2. Morden, A. R. (1993). Elements of marketing. London: DP Publications Ltd 3. Anderson, A. H. & Dobson, T. (1994). Effective Marketing: A Skills and Activity –based Approach. Oxfordshire:Blackwell 4. McDonald, C. (1992). How Advertising works?. Oxfordshire: NTC Publications Ltd 5. Yeshin, T. (1993). Inside Advertising. London: Institute of Practitioners in Advertising 6. Brierley, S. (1995) The Advertising Handbook. New York: Routledge 7. Marketing Max. [2008]. [Online]. Available from: http://en.wikipedia.org/wiki/Marketing_mix [Accessed: 7th May 2008].