What is advertising? The process of advertising is an important process that exists to encourage consumers to follow specific commands such as making purchases of products or services. The regulated form of communication operates through paid channels with various influencing methods to control consumer actions. An advertising campaign does more than present information about products since it communicates details about product worth, functional qualities, and distribution channels to consumers.
What is Advertising?
The ad creates fundamentally impressive informative messages that connect to the audience to inspire them. Developing these messages involves specific goals: to increase the market for market, promote sales or build brand identity. The advertising process educates the strategic market through campaigns that increase consumer options and increase market understanding.
The Importance of Advertising
Modern society together with the business world depends heavily on advertising as a crucial foundation. The marketing mix includes advertising as its essential feature since it enables effective product and service representation. Below are the essential factors that explain why advertising holds such great importance:
Drives Sales: The main sales goal of advertising becomes reality when it attracts attention which leads to more profits from consumer buying behavior.
Brand Building: Efforts to build brands should explain to customers what their brand stands for and why it is special.
Educates Consumers: Beyond promotion, advertising informs consumers about new products and services, explaining their features and benefits while contributing to societal progress.
Supports Economic Growth: By stimulating consumption and demand, advertising fuels economic growth and creates employment opportunities.
Facilitates Innovation: The creativity within the advertising industry spurs the rapid spread of new ideas and technologies.
Types of Advertising?
Commercial Advertising: Business uses strategic commercial ads as an important marketing method to effectively display its various products or valuable services to potential customers, and as the goal is to generate revenue from resulting sales.
Let us understand this by an example:You see them everywhere like TV commercials showing off the latest cars, online banners popping up while you scroll, and those eye-catching magazine spreads. And let’s not forget social media, where celebrities casually promote brands in their posts.
Surrogate Marketing: Companies use surrogate advertising when advertising certain products becomes illegal through specific restrictions. When certain products get banned from advertising process the company promotes related services instead under its brand names to keep its brand memorability alive. The banned product becomes visible only through its suggested elements in the materials of the campaign.
Example for this you can take from alcoholic products. In regions where you cannot advertise alcoholic products, a company advertise soft drink or bottled water under the same brand name to keep the brand name in consumer’s mind.
Pros and Cons of Advertising?
Advertising provides many benefits: significant sales effects, increase in branding and market expansion. Smart campaigns allow businesses to influence consumer behavior, cultivate loyalty and gain discrimination.
However, the ad also presents deficiencies, especially the risk of misleading materials to eradicate consumer confidence and damage the brand image. Advertising costs in competitive markets are another important concern.
In order to reduce these problems, it is important to measure advertising efficiency through analysis and trekking.
What is the difference between Advertising and Personal Selling?
Major Differences between Advertising and Personal Selling:
1.Communication Approach:
- Advertising process uses mass communication to deliver a consistent message.
- Personal Selling engages individual customers directly, allowing for a customise discussion between both the parties.
2. Reach and Cost:
- Advertising reaches a broader audience at a lower cost per impression(which is the amount marketers spend to show ads to the consumer once.).
- Focuses on personal interaction at a higher cost per interaction but deliver customize experience to customers.
3.Feedback:
- In advertising, feedback is usually delayed and indirect. Also there is less flexibility in adjusting the message.
- In Personal Selling, customers give direct feedback and we can adjust the message during the interaction.
When to use Advertising and Personal Selling?
When the product/services is complex or requires detailed explanations, then personal selling is preferred over Advertising. When you wanted to reach larger and general audience then advertising is preferred while you are focusing on high value customers then personal selling is the method that you should look upon.
There is approach where you can use advertising at the early stage to create interest and awareness in the audience then you can use personal selling to close the deal. By using the combined approach of advertising and personal selling you can make most out of the resources.
Cost of Advertising in Monopoly Market
Advertising companies use advertising costs to market products. Companies determine their advertising budget by comparing marginal costs (extra advertising expenses) and marginal profits (extra revenue).
Even for monopolists, advertising makes demand less elastic, leading to an increase in value without losing significant buyers. Advertising also promotes demand, attracting more customers and the total company increases sales.
Conclusion
In summary, Advertising is the way by which you can drive sales, build brands and also educate your potential customers about your product or services. In monopolistic market, advertising can help you increase the demand and making the demand more inelastic.However, it provides ample of benefits its important to carefully manage the cost against the revenue so that advertising cannot become nightmare for your brand.