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) Discuss the concept of Advertising and its impact on social & economic life and

differentiate between advertising and sales promotion.

Ans. Advertising is an art of making known to the present and prospective customers,
the existence of services and commodities meant for sale.
(2) It is a form of impersonal presentation of goods and services and it plays an
important part in inducing people' action in accordance with the intent and desire of the
(3) It is the vehicle of publicity for the sale of articles of commodities. Without it is
impossible task to market the commodities to any large extent. Therefore the need for
advt. problem felt increasingly with the march of our economic life.
(4) Advt. is device through which a producer or a trader may make the existence of his
commodity known to his prospective customers.
It is printed form of publicity in whatever form may assume but it is also called a
cheapest and quickest and most efficient means of marketing and increasing sale,
creating goodwill, volume of any particular commodities or services. It indirect method of
making aware, creating desire and persecution of pre-purchasing of related concern. It
helps Co./org to compete in the market from their competitors.
Impact of advt. on social and economic life :
following the impact for social life -
(1) It create demand - There is no doubt that advt. increases the sale. It helps new
brand to established their goodwill in the market.
(a) to transfer its demand from one producer or trader to another
(b) to increase and maintain the existing demand.
(2) It increases consumption :
(i) It would be right to say that advt. increase the consumption of products or services.
(ii) It persuade and influences the consumers/people to increase per capita
(iii) It has persuasive function to perform to draw attention of the consumers
(iv) It makes possible a wider distribution of the consumers to search to search the
(v) Through advt. people learn about new product.
(3) Establishes superiority of the product :
(i) The competitive advt. provides, incentive to innovations
(ii) researchers and improvements which are on attempt to move up the quality of the
(iii) It spreads the reputation of the product for wide by convincing the impact or advt. on
economic and social consumers of its superiority
(iv) creates a permanent goodwill of the product of the firm.
(v) changes habits : It changes habits styles and fashions of the people
(vi) It help to substitute a better article for a worse one ; a cheaper commodity for a
costlier one.
(4) It ensures all round improvement in business activities - how ?
(i) it creates demand of a particular product
(ii) It creates demand of a particular product
(iii) It increases demand it helps in lowering the cost of lower cost.
(6) Provides scope for employment
(7) Subsidises the media
(8) Reduces selling expenses
(9) Create field for investment
(10) Ensures all round progress :
(i) It educates consumers supplement salesman
(ii) Expends markets.
Distinction between advertisement and sales promotion :
Sales promotion - Sale promotion is an action which increases the volume of sale in a
broad sense the term sales promotion refers to promotion having all the activities of
personal selling, publicity, advertising and sales promotion leading to the enhancement
of sale.
According to Philip Kotler "sales promotion consists of a wide variety of promotional
tools designed to stimulates earlier and/or stronger market response" They include tools
for consumer promotion e.g.. - samples, coupons, money, trading stamps,
demonstration) Trade promotion e.g.- buying allowances, free goods, merchandise
allowances and sales force promotion e.g.. bonuses, contests, sale rallies.)
Advertising :
Concept of advertising
(i) Adv. is an art of making known to the present and prospective customers the
existence of services and commodities meant for sale.
(ii) it is a form of impersonal presentation of goods and services and it play an
important part in indicating peoples action in accordance with the intent and desire of
the advertise.
(iii) It is the vehicle of publicity for the sale of article of commerce without it is an
impossible task to market the commodities to any large extent. Therefore the need for
adv. has been self increasingly with the march of our economic life.
(iv) Advt. is a desire through which a producer or a trade may make the existences of
his commodity known to the productive customers.
(v) It is a printed form of publicity. It is a cheapest, quickest and most efficient means.
(vi) It makes producers positions stable and sound
Differences between sales promotion and advertising :
(i) Advt. is impersonal method to increase sale while sales promotion is personal
(ii) Advt. is cheaper method, the other one is costlier
(iii) Adv can be taken up by new organisation while the other one by organised system.
(iv) Advt. for new product while sales promotion for product already in the market to
increase sale or to capture market.
(v) Advt. is a search of new market while sales promotion to increase sale in the existing
(vi) Advt. no personal contract is required whiles in sales promotion better and cheaper
and personal construction is there.
(vii) Sales promotion is a patent and recognised means of selling of selling goods while
advt. not so.
(viii) Sales promotion is a promotion while adv. is not best at present it is coming as
Ques. (2) Discuss the types of adverting and its roles.
Ans. Advertising contents theme and its focus change on the purpose of advertisment.
The targeted groups to be covered and time and situation of the market. Hence,
advertising is to be classified on the basis of users and uses. The basic classification of
advertising are -
(1) Geographical
(2) TArgeted groups
(3) Product advt.
(iii) Nature of impact intended from the advertisement
(1) Geographical :
(a) local advt. (b) Global advertisment
(2) TArget group :
(a) Trade advt. (b) professional advt.
(3) Product advt : (a) pioneering advt. (b) competetive (c) retaintative.
Role of advertising in a Developing Economy
Role of advertising in a Developing Economy: Has advertising any role to play in a
developing economy ? Such questions are generally asked by laymen.They argue that
the aims of developing economy viz., accelerating the rate of capital formation by
means of encouraging savings and thrifts are in conflict with the aims of advertising i.e.,
promoting mass consumption will reduce savings .In the developing economy , th main
purpose should be to earn more by exporting the production so as to be able to pay for
its imports of capital goods .In this context , it is very apparent that adverting has no role
to play in the developing economy . At first sight , it seems that the aim of advertising
and that of developing economy work at cross purpose .But this conflict is more
apparent than real as is clear from the following analysis.
Advertising plays and can play a very important role in the developing economy .It
may be admitted,without any hitch that squandering is undesirable from national point of
view because it reduces savings but judicious use of earning and saving should be
promoted by all means One must always be chary of providing or implanting a hope and
an expectation of better home .Food or clothing if incentive to earn by hard work is to be
retained . This incentive is crucial to successful implementation of any plan
For any economic development .It is here that advertising has a crucial role to play
.Advertising may be used as a tool for judicious investment of earning and savings .It
should therefore aim at promoting savings awareness to produce more to export and
family planning . It should be a tool to achieve national goal.The advertising done by
nationalized banks and the life Insurance corporation and many other public and private
organization carry out propaganda to further national interest and policies. Sir Winston
Churchill had once pointed out "advertising nourishes the consuming power of men .It
creates wants for a better standard of living It spurs individuals exertion and
greater production".
The second point is support of advertising in developing economy is that it promotes
exports as well .A well known slogan generally heard in such economy s export or
perish but however success on export front requires two things -first, the price must be
competitive in foreign market and secondly the commodities must be of good quality.
Some argue that the advertising raises the cost of production and distribution , and the
prices of the article which hamper its sale and export. But this notion is not well founded
. We have just analysed in our foregoing discussion that advertising helps in improving
the quality of the product if the goods have been acknowledged by the consumers
moreover ,it has been the experience of all advanced nations like the U.K,the U.S.a,the
Germany, Japan etc. That increase internal sales are necessary to lower the average
cost or prices of the commodities intended to export. It also confirmed by our own
experience in the field of bicycle and sewing machines which we have been able to
export only because of low cost made by possible by wider domestic market. It reduces
the prices in two ways -(1) It reduces the average cost of production due to its mass
production for internal as well as foreign market and (2) A reasonable burden may be
borne by domestic consumer to make the average cost of exportable goods a slight
lower to make the prices competitive in the international market .Moreover advertising
sharpens the competitive selling.
The last but not the least, justification for advertising in developing economy, may
though poorly, to spread literacy among people by infusing an idea in thousand minds at
the same time.
Thus, it can be safely, advocated that advertising plays a very important role in the
developing economy and there is really no conflict between the aims of advertising and
a developing economy.
Advertising is a communication whose purpose is to inform potential customers about
products and services and how to use and obtain them. Every major medium is used to
deliver these messages, including: television, radio, movies, magazines, newspapers,
video games, the Internet and billboards. Advertising is often placed by an advertising
agency on behalf of a company.Advertisements can also be seen on the seats of
grocery carts, on the walls of an airport walkway, on the sides of buses, heard in
telephone hold messages and in-store public address systems. Advertisements are
usually placed anywhere an audience can easily and/or frequently access visuals
and/or audio.