ADVERTISING | TYPES. FACTORS, FUNCTIONS, ADVANTAGES, DISADVANTAGES

Advertising is the branch of commerce which deals with promoting sales of goods, services or ideas through messages that are meant to inform, educate and persuade the general public by means of various methods such as newspaper, radio, television.

FUNCTIONS OF ADVERTISING

Creation of demand for goods and services
Informing customers about the existence of new products in the market
Persuading customers to buy particular products
Educating the public about the uses of a particular product
Used to promote the image of firm as producers/sellers of high quality goods and providers of efficient and reliable services
It helps in creating brand loyalty
It improves the quality of the products

TYPES OF ADVERTISING

Informative Advertising: This is aimed at informing consumers about the existence/arrival of products. It also gives information about the benefits and uses of a product
Persuasive Advertising: This type of advertising uses convincing words/strategies to persuade the customers to buy a particular brand of a product
Competitive Advertising: This is aimed at convincing the customer that a particular product is better than others. It usually extols the qualities of the advertised brand over its rivals (i.e. close substitutes)
Direct Advertisement: This is used to advertise goods and services that are used by only a specific class of people e.g. a new brand of chalk could be advertised specifical to schools through the medium of an educational journal.
Indirect Advertisement: This form of advertisement is not directed to any section or class of people. It is used to advertise goods and services meant for all and sundry.
Mass and Specific Advertising: Mass advertising involves the producers/sellers of similar products coming together to jointly advertise their products to the public. Mass advertising promote the industry by convincing the public to use the product/service without reference to particular brands e.g. eggs.

Specific advertising directs its appeal on a particular brand which is unique in nature.

MEDIA OF ADVERTISING/METHODS OF ADVERTISING

(1) The Press (i.e. newspapers, magazines, journals etc.) (2) Television (3) Cinema

(4) Hoarding (5) Radio (6) Catalogues (7) Posters (8) Neon Signs (9) Handbills/Pamphlets (10) Exhibitions / Trade Fairs (11) Window display /Interior displays (12) Direct Mail etc.

EVALUATION

List five functions of advertising
What is an advertising medium
Give seven examples of advertising media in use in Nigeria.

FACTORS TO BE CONSIDERED IN CHOOSING AN ADVERTISING MEDIA

The cost of using any of the media
The type or nature of the product to be advertised
The reach (i.e. the extent of coverage/size of the audience) of the medium
The merits and demerits inherent in using the medium
The frequency of exposures i.e. the number of times the same viewer/reader may be exposed to the same advert
The target audience e.g. social/age group of the audience

ADVANTAGES OF ADVERTISING

It provides information about goods e.g. about the availability, price, features of the goods concerned
It provides employment opportunities to people working in the advertising sector of the economy
It builds and sustain corporate image for firms
It improves the quality of goods
It educates the public on the use of certain goods
It increases production i.e. it makes large scale production possible thereby leading to lower cost of production
It increases the volume of sales/turnover of firms
Advertising creates and sustains demand for goods

DISADVANTAGES OF ADVERTISING

It induces wrong consumption patterns by inducing people to buy what they do not really need
Advertising increases the cost and prices of goods sold to consumers
It creates unhealthy competition by which an advertiser discredits the products of their rivals
Advertising could mislead consumer through false claims
It encourages the consumption of dangerous goods such as cigarettes and alcohol
Advertising is most times wasteful in terms of resources
It may lead to the emergence of private monopolies by preventing new entries to the market
Advertising encourages multiplication of brand names i.e. it encourages too many brands

GENERAL EVALUATION QUESTIONS

Explain five benefits that would be derived when a sole trader admits other partners
State five features common to both public and private limited companies
State five provisions of a memorandum of association
State five disadvantages of international trade
Explain five measures a country can take to solve its balance of payments problems

THEORY

Explain five functions of advertising.
State five disadvantages of advertising.