Gr xiib- bs-ch-11-s9
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This document discusses promotion, promotion mix, advertising, and criticisms of advertising. It defines promotion as communication to inform and persuade customers about a product. The promotion mix includes advertising, personal selling, sales promotion, and publicity. Advertising is an impersonal paid form of communication through channels like newspapers, magazines, television and radio. While advertising can confuse customers and add to costs, it also has benefits like mass reach, enhancing customer satisfaction, and allowing economies of scale. Common criticisms of advertising are that it raises prices, undermines social values, and encourages inferior products, but advertising is considered important for informing customers.
Gr xiib- bs-ch-11-s9
- 2. Business Studies Chapter 11 Marketing Grade XII
- 3. Learning Objectives • To understand about promotion • To analyze promotion mix • To understand about advertising • To criticize advertising
- 4. PROMOTION • Promotion refers to the use of communication with the twin objective of informing potential customers about a product and persuading them to buy it.
- 6. PROMOTION MIX • Promotion mix refers to combination of promotional tools used by an organisation to achieve its communication objectives. • Various tools of communication are used by the marketers to inform and persuade customers about their firm’s products. • These include: (i) Advertising, (ii) Personal Selling, (iii) Sales Promotion, and (iv) Publicity.
- 7. Advertising • Advertising is an impersonal form of communication, which is paid for by the marketers to promote some goods or service. • The most common modes of advertising are ‘newspapers’, ‘magazines’, ‘television’, and ‘radio’.
- 8. Features of Advertising • (i) Paid Form: Advertising is a paid form of communication. That is, the sponsor has to bear the cost of communicating with the prospects. • (ii) Impersonality: There is no direct face-to-face contact between the prospect and the advertiser. It is therefore, referred to as impersonal method of promotion. Advertising creates a monologue and not a dialogue. • (iii) Identified Sponsor: Advertising is undertaken by some identified individual or company, who makes the advertising efforts and also bears the cost of it.
- 9. Merits of Advertising • (i) Advertising is a medium which has mass reach. • (ii) It Enhances Customer Satisfaction and Confidence as they feel more comfortable and assured about the product quality. • (iii) With the developments in art, computer designs, and graphics, advertising has developed into one of the most expressive communication. • (iv) Because of its wide reach, the overall cost of advertising gets spread over numerous communication links established.
- 10. Limitations of Advertising • (i) Less Forceful: It is less forceful than the personal selling as there is no compulsion to pay attention to the message. • (ii) Lack of Feedback: There is no immediate and accurate feedback mechanism of the message that is delivered. • (iii) Inflexibility: Advertising is less flexible as the message is standardised and is not tailor made to the requirements of the different customer groups. • (iv) Low Effectiveness: As the volume of advertising is getting expanded it is difficult to make it heard by the target prospects.
- 11. OBJECTIONS TO ADVERTISING • 1. Adds to Cost • 2. Undermines Social Values • 3. Confuses the Buyers • 4. Encourages Sale of Inferior Products • 5. Some Advertisements are in Bad Taste
- 12. 1. Adds to Cost: • Advertising unnecessarily adds to the cost of product, which is ultimately passed on to the buyers in the form of high prices. • The increased demand leads to higher production, which brings with it the economies of scale. As a result, the per unit cost of production comes down.
- 13. 2. Undermines Social Values • It breeds discontent among people as they come to know about new products and feel dissatisfied with their present state of affairs. Some advertisements show new life styles, which don’t find social approval. • It helps buyers by informing them about the new products, which may be improvement over the existing products. If the buyers are not informed about these products, they may be using inefficient products.
- 14. 3. Confuses the Buyers • The buyer gets confused as to which advertisement is true and which one should be relied upon. • The rational buyers can clear their confusion by analysing the information provided on the advertisements and other sources before taking a decision to purchase a product.
- 15. 4. Encourages Sale of Inferior Products • Advertising does not distinguish between superior and inferior products and persuade people to purchase even the inferior products. • Advertisements sell products of a given quality and the buyers will buy if it suits their requirements. If a firm makes a false claim about the quality it can be prosecuted for the same.
- 16. 5. Some Advertisements are in Bad Taste • They show something which in not approved by some people say advertisements showing women dancing when not required.
- 17. Review What is promotion? What is promotion mix? What are the merits of advertising? What are the limitations of advertising? Criticize advertising.
- 18. Recapitulation • Promotion refers to the use of communication with the twin objective of informing potential customers about a product and persuading them to buy it. • There are four major tools, or elements of promotion mix, which are. (i) Advertising, (ii) Personal Selling, (iii) Sales Promotion, and (iv) Publicity. • Advertising is the most commonly used tool of promotion. It is an impersonal form of communication, which is paid for by the marketers (Sponsors) to promote some goods or service
- 19. Recapitulation • The merits of advertising, as a medium of communication, include i. Mass reach ; ii. Enhancing customer satisfaction and confidence iii. Expressiveness; and iv. Economy • The limitations of advertising are that it is (i) less forceful (ii) lacks Feedback (iii) inflexibility (iv) low effectiveness • The most common Objections to Advertising are that it i. adds to cost; ii. undermines social Values; iii. confuses the buyers; and iv. encourages sale of Inferior Products: • Most of the criticisms against advertising are not fully true. Advertising is therefore considered an essential function of marketing.
- 20. @ Thank You You rocked in the class