Family Economics And Consumer Education 3 (2+1)

Lesson 29 :Advertisements

Elements of Advertising

1. It is a mass non-personal communication, reaching large groups of buyers. It is not delivered by an actual person, nor it is addressed to a specific person.
2. It is a matter of record, gives information for the benefit of buyers, it guides them to a more satisfactory expenditure of their hard earned money. The contents of advertisements are what the advertiser wants.
3. It persuades buyers to purchase the goods advertised, which means that advertising devoid of persuasion is ineffective. To persuade the buyers the advertiser makes his products buyer satisfying.
4. The ultimate objective of advertising is to earn maximum net profit in the long run.

Functions of advertisements:

1. It leads to cheaper prices. No advertiser could live in the highly competitive area of modern business if his methods of selling were more costly than those of his rivals.
2. It acquaint the public with the features of the goods and advantages which buyers will enjoy.
3. It increases demand for commodities and this results in increased production.
4. It reduces distribution expenses. Information on a mass scale relieves the necessity of expenditure on sales promotion staff, a quicker, wider distribution leads to diminishing of the distribution costs.
5. It ensures the consumers better quality of goods. ; Here F.P.Beshop quotes “An advertisement is either a finger print pointing in the direction of good bargains or a danger signal warning all the Sunday to do no business in a given direction”.
6. It raises the standard of living of the general public by compelling it to use the articles.
7. It establishes good will of the concern.

Groups involved in Advertising:
Five groups are generally involved in product promoting advertises,

1. Buyers
2. Media
3. Middlemen
4. Advertising agencies
5. Advertisers.

1. Buyers may be the persons who do not use the advertisers’ products, or they may be the consumers of the products which the advertiser sells. Here the advertiser may use different devices, the first one may be converted to use the product, The second type may be held and their frequency of purchase increased.
2. Media is a commercial vehicle that carries advertisers’ message to his prospects- news papers, Magazines, radio, televisions etc.
3. Middlemen, the wholesalers and retailers through whom the goods advertised may be purchased.
4. Advertising agencies are the organizations which construct the actual advertisements that consumers see and hear.
5. Advertisers may be retailers and manufactures.