Advertising

Refers to drawing attention to or describing a product in a public medium e.g. newspapers, radio, television etc.

 Reasons for Advertising

·       To introduce new products

·       To stimulate desire for more quantities of the product

·       To persuade the public to buy the product

·       To explain new uses of a product

·       To remind customers of the existing product

·       To explain new used of a product

·       To create recognition of a particular brand of products

·       To maintain the products name or slogan in public

·       To prepare way for sales persons in selling ‘

·       To remove any bias that customers may have developed about the product.

·       To inform customers of new prices, packaging changes or any other changes

·       To supplement the efforts of salesmen

·       To reach out for few markets.

Types of Advertising

Any advert may be classified on the basis of:

Product advertising: which basically promotes the sale of a particular brand of a product no mention of the manufacturer and emphasis is on the product e.g Accountancy profession”

Institutional advertising: tends to focus on creating a positive attitude on the business producing or providing the product / service emphasis in on the institution.

Primary demand advertising: targets demand stimulation for arrange of products without mentioning a specific brand or manufacturer e.g. Adidas products or GNLD products.

Celebrity advertising:  the advert uses a famous personality to enclose the use of a given product. The aim is to use these people to attract attention.

Corrective advertisement: seeks to correct errors or misleading claims made in an earlier advertisement.

Advertising Media

An advertising media is the means through which an advertised message is conveyed to the members of the public who are consumers.

The following are some of types of media available to advertisement.

The press e.g newspapers; Posters; Billboards; Brochures; Shopping news; Radio; Television;

Neon signs e,t.c

 Factors which determine choice of an advertising medium

The intended target group: The nature of the target group in terms of habits customers age, e,t.c will determine choice of the right medium.

The physical characteristics: The mediums physical characteristics i.e visual aspects, colour, movement’s e.t.c.

Media circulation: Where an advertiser aims to reach countrywide cliental, choice of a nationwide media is necessary.

Cost of advertising: Should be affordable and that they should be reasonable compared to the returns.

Urgency of the advertisement: Urgent and quick adverts may require mediums such as Radio , TV e.t.c

Advantages of advertising

To the advertiser (business enterprise)

It provides a business enterprise with opportunity to inform the public on what they offer.

It stimulates demand for a product thereby increasing sales and the sellers profits.

Acts as a reminder to customers of the existing products;

Helps sustain brand loyalty

It quickens brand recognition

Enables quick access and purchase of the product after knowledge of placement and quantities;

To the customer

It increases customers’ awareness of a new product

Helps indicate the variety of products available in the market facilitating choice

Leads to better quality products due to competition 

Leads to increased qualities being produced

Disadvantages 

To the advertiser

A costly method of promoting products

Where offensive or erroneous may be negative

One can be sued where advert is misleading.

Competitive advertising may cause a seller t o be pushed out of business. 

Difficulty due to existence of several media;

To the customer

Advertising costs are normally borne by the consumer

Misleading especially where there is consumer ignorance

Encourage impulse or irrational buying

Some adverts are irritating, anti-cultural and offensive.

b) Sales Promotion

Sales promotion refers to the strategies and incentives which are aimed at promoting the purchase of a given product.

The sales promotion strategies are divided into two namely.

The strategies aimed at the customer directly these include

Direct main i.e. cards, postcards etc.

Gifts and other premiums e.g. soap, toothbrushes

Discounts

Displays e.g. supermarket

Credit facilities

Use of loss leaders: one good is sold cheap to attract customers.

Use of free samples

After sale services

The strategies aimed at the sales force

·       Commissions – money given to dealers

·       Commissions – money given to dealers

·       Demonstrations models 

·       Push money- to facilitate movement of the salesmen

·       Training

·       Provision of point of sale displays

Advantages of Sales Promotion

·       Promotion activities persuade and convince potential customers

·       Expand the market scope

·       Discounts reduce prices for consumers and credits stimulate a greater turn over

·       Attracts customers through use of price leaders

·       Good will is built by after sales services and sample giving.

·       Training and demonstrations remove fear of using a product

 Disadvantages of Sales Promotion

·       The sales promotional incentives are expensive i.e. free sample

·       Bad debts may arise from credit facilities

·       Time and money consuming for sales services especially

·       After sale services ties customers to one seller.