Broadly speaking, advertising may be classified into two categories which are.
Product Advertising:
Institutional advertising
Other types
Product Advertising:
The purpose of such advertising is to inform and stimulate the market about advertiser’s products or services and to sell these. This type of advertising usually promotes specific, branded products in such a manner as to make the brands seem more durable.
Institutional advertising:
It is designed to create a proper attitude towards the seller and to build good will, rather than to sell specific product or services. It’s purpose is to create a frame of mind and to implant feelings favorable to the advertiser’s company it is subdivided into three categories.
The patronage institutional advertising- the manufacturer tells his policies and customers about himself, his policies and his personnel.
Public relations institutional advertising is used to create a favorable image of the firm among employees, stock holders or the general public.
Public services institutional advertising urge public support.
Other types:
National or local: when it is sponsored by manufacturers it is known as national when it is placed by retailers it is local.
Consumer adverting /industrial advertising: when it is aimed at ultimate consumers who purchase for personal use, it is consumer advertising. Industrial advertising is the one where an industrial user is urged.
Sometimes advertising is also classified by type of appeal used or motives towards which advertising is aimed. Where an advertisement is done to create an image that the house-wife would look like a glamorous movie star and thus attempts to create a common bond between them through common use of a brand, it is said to be emotional advertising.
Regulations of Advertisements: Regarding the harassment done by untruthful advertisements to the community and the individual consumer, the manufactures of good products, advertising agencies and even the government in the certain standards and finishing the violators. The advertising Agencies Association of India has formed the following rules. Members shall place any advertisement in any medium which,
Is knowingly a copy of other advertisement
Make attack on personal character.
Is indecent, Vulgar, suggestive, repulsive or offensive.
Is objectionable medical advertising and an offer of free remedial, relief or by inference?
Which is regarded by the Executive council of the A.A.A of India as unworthy.
ADVANTAGES
Advertising informs the buyers about the existence of the products its features its benefits and its availability.
Advertisements offer an incentive to buy by making several direct offers like price offer an exchange of old TV on buying a new T. V
Advertisements provoke us to try the product and once tried to remind us about its benefits
So that we can buy it time and again.
An advertisement builds brand gives an image and personality to the brands over a period of time. It works along with other elements of marketing mix to create brand equality.
Advertisements help us to choose out of several brands available. It provides us reasons to buy a particular brand .It thus contributes to our preference and brand loyalty.
Advertising being mass communication is the most cost effective way to reach our consumers. In absolute terms the cost of a full page and in a magazine is very high. But when we divide the cost by the number of readers reached the per reader cost is very low.
DISADVANTAGES: Advertising attracts the interest of government officials as well as consumer group. F Turner in 1966 expressed his views in advertising. While admitting the economic benefits which advertising provides to society he mentioned that “Advertising has significantly adverse effects on competition in consumer good market”. The point was made that in some consumer goods industries there was a significant correlation between the proportion of industry sales devoted to advertising and the average profit rates which were earned.”The implication of course is that high advertising outlays by certain firms give them an economic advantage which is difficult to overcome by companies which cannot match the expenditure. According to Turner, there may be several ways in which advertising expenditures promote industrial concentrations. One of the most significant ways is that extensive advertising create barriers to the entry of new firms into markets. In competitive industry we normally expect to find firms entering and leaving the market during any given period of time although the exit of firms will be made more difficult as a result of the barriers created through extensive advertising that consumer are unable to evaluate the relative merits of competing products the established products may have a considerable advantage and it is this advantage that advertising massagers tend to accent rude. .A further significant factor is the existence of economic of scale in advertising and other forms of promotions to the extent that larger firms can provide more messages per dollar than their smaller rivals they will have a strong competitive advantage and this will be so even if smaller firms spend proportionally as much. Economics of this sort lead directly to the expansion of larger firms relative to their smaller rivals and thereby to more concentrated market structures.
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