BA (JMC) 2014 – Basics of Advertising

Unit 1: Concept of Advertising

Sukriti Arora

Advertising: Meaning and Purpose

Advertising is a form of communication that utilizes several types of media for the
promotion of goods, services, and ideas. The objective of this chapter is to introduce the
concept of advertising and its definitions. The chapter will also discuss the functions served
by advertising as a tool for marketing.

Introduction
The word ‘advertising’ finds its origin in a
classical Latin word ‘Advertere’. It is an
amalgamation of two words Ad (meaning - to/
towards) and Vertere (meaning - to turn).
Collectively, the meaning of advertising is to
turn towards something; rather to turn one’s
attention towards something. The English word
‘Advertise’ is also linked to the old French word
‘Advertir’, which means “to (take) notice (of
something).”
According to the American Marketing Association (AMA),

"Advertising means any paid form of non-personal presentation and promotion of ideas,
goods, or services by an identified sponsor."
Let us break this definition into separate parts to decode the meaning and characteristics of
advertising.

1. Any Form: An advertisement can be in any form implies that it could be a print ad in
a newspaper or billboard, an audio ad on radio, an audio-visual commercial for
television or any of these on online platforms. One form of ad can also be adapted or
replicated for another form of media.

2. Paid communication: Anyone who is trying to communicate with the masses by means
of an advertisement (known as the advertiser) has to pay the owners of mass media such
as television channels, radio, newspapers, websites and hoardings etc. In exchange for
this payment, the advertisers are provided with space in the particular media channel
which reaches the masses.
 3. Non-personal form of presentation: There is no one-to-one communication between
the advertisers and the potential customers. An advertisement communicates to its
entire audience in one go without addressing any particular individual. Other tools of
marketing such as direct selling and word-of-mouth marketing use a more personalized
approach for the sales and promotion of a product.

4. Promotion of ideas, goods or services: The primary objective of any advertisement is

to promote goods, services and ideas. Here, goods can be products of daily use or
occasional use such as food, electronic objects, grocery items or industrial equipment;
services can vary from salon services to car repairs to travel assistances; and ideas can
be about encouraging the public to vote, to keep their surroundings clean, to use proper
contraceptives, or to discourage harmful practices such as smoking or use of tobacco.
Advertisements may also promote personalities such as during the time of elections and
events such as concerts and book fairs.

5. Identified Sponsor: The advertiser pays for the advertisement and is, therefore, its
sponsor. The sponsor is clearly identifiable as the name, logo, and other trademarks of
the brand are included in the advertisement. In some ads, the contact details and address
of the advertiser are also plainly mentioned. This is done for the promotion of particular
outlets such as malls, retail shops and service providers.

Other characteristics of advertising, aside from those mentioned above by AMA, are:
6. Marketing Tool: The practice of marketing refers to the promotion of goods, ideas and
services in the market through any means. It includes market research, door to door
promotions, direct selling, and delivery of products amongst others. Advertising is also
one of these tools working towards the same objective but in an impersonal manner, as
mentioned above.

7. Creative Process: Advertising involves the use of imaginative and creative ideas for
effective promotions. It requires brainstorming to develop new and interesting concepts
which would attract the attention of potential customers and persuade them to respond
favourably. Creative ads are more memorable and help achieve the advertising goals.

8. Requires Planning and Preparation: An advertisement is an investment that should

yield results in the form of sales or acceptance of ideas from the potential customers.
Like every other investment, this too, should be meticulously planned prior to its
execution. Before making an advertisement, the makers should be clear about its
objectives. There should be clarity about who are the potential customers and what
would appeal most to them. Advertising messages have to be drafted with careful
consideration of each word, image and graphic in order for it to have the desired impact.
Functions of Advertising
The quintessential purpose of an advertisement is to inform, educate and persuade the masses
to respond to their call to action.
Informing refers to creating awareness about the product, service or idea or its ongoing offers.
Educate refers to giving detailed information about the pros and cons of its use.

Persuade refers to convincing people to respond in the manner desired by the advertiser.
Call to action can refer to any of the following:

 To purchase a product or avail a service.

 To invest in a project.
 To adopt a lifestyle or practice.
 To attend or participate in an event.
 To travel to a specific location
amongst others…

The functions of advertising are not limited to the aforementioned. It also helps in the
following:
1. Generating demand: Any product in the market, especially one that has been recently
launched, needs to develop, maintain and improve its sales. Advertisements help spread
knowledge about the product which, if done effectively, directly results in increasing
demand. It may induce new customers to buy an existing product by informing them
about its superior qualities.

2. Product Differentiation: Markets are filled to the brim with products and service
providers in stiff competition with each other. They are competing for higher sales and
a larger chunk of the market share. Advertisements help in differentiating one product
from its competitors. Brands such as Coca Cola and Pepsi, Surf Excel and Ariel, Axe
and Wildstone, Colgate and Pepsodent are similar to each other but the consumers are
able to differentiate between them because of their advertisements.

3. Increase Brand Preference

and Loyalty: Advertisements
often establish emotional
bonds with the consumers
such as through campaigns
like Meri Maggi. Ads also
project their brand as superior
to their competitors and often
associate the use of their
product as means to gain
respect in the society.
 4. Public Image: Advertisements help companies become brands. Prior to advertising and
marketing efforts, companies are often not recognized by customers and therefore not
trusted. Ads help the companies create a brand image for themselves in the minds of
the public. Some are perceived as luxury brands and some as economical brands
through their advertisements, much before the customers become aware about their
prices.

5. Support to Media Channels: The relationship between advertisers and media channels
is symbiotic. Media channels offer space to advertisers for promotion of their products
and services in exchange of payment. This payment or advertisement expenditure by
companies becomes the biggest source of revenue for media channels.

6. Brand Reminders: Companies advertise themselves and their offerings despite having
steady sales and market share. This is to ensure that people are reminded about the
brand’s continued presence in the market. Out of home ads on hoardings and billboards
often serve this purpose.

Summary
Ads, today, are all pervasive. We come across them anywhere we go, from our televisions to
mobile phone to social media platforms and out of homes on billboards and public transport. It
is an indispensable task for promoting any product, service or idea in today’s excessively
competitive scenario. It offers multiple benefits to advertisers, sellers, media outlets, consumers
and several other stakeholders by performing its marketing, communication and economic and
social functions.