To measure the effect of the businesses advertising, a business can use the DAGMAR (defining advertising goals for measured advertising results). A business can see how far the group targeted has progressed aside a scale of unawareness, awareness, comprehension, conviction and action, as a result of advertising.
The Growth of Advertising
When companies are faced with competition, advertising can be an important factor. In U.K, there are many forms of advertising, from posters, to T.V, to newspapers, etc… It is estimated that the drink’s industry spends over £200, 000, 000 on advertising and between 1 and 2 percent of the national income relies on it.
Informative Advertising-
Is designed to increase the consumer’s awareness of the product.
Persuasive Advertising-
Is designed to convince consumers to purchase a product, often by stressing that it is more desirable than others.
Types of Advertising Media
- Television
- Cinema
- Radio
- Posters
- The Internet
These, with their advantages and disadvantages can be seen below:
Choice of Advertising Media
There are a number of factors that advertisers may take into account on choosing the advertising media they will use, if they want to advertise.
These are:
Small firms will be mainly concerned in the type of media in which they can afford. Larger firms will need to consider the cost effectiveness of each of the different media.
Given that many products are aimed at certain segments, it makes sense for firms to place their advertisements in a medium where its target audience is likely to see or hear.
- The advertising of competitors-
On T.V, for E.G, a advertising may be on to promote a product, then straight after it may be an advertisement from its competitors.
Firms aim to create the largest impact they can, and to do this it may require different media to do this.
There are legal restrictions in the U.K, so some products cannot be advertised in a particular media.
The advertising campaign should be integrated with other types of below the lie promotion.
- The presentation and recording of information-
If an advertisement is designed to be visual, with little written information, then posters on billboards can be effective. Magazine articles can include a lot of text. T.V can show visual images and words can be spoken. A radio advert can provide a certain amount of spoken information. Internet allows a large amount of data to be seen for free.
Controls on Advertising
These are:
- Legislation – This is the most important piece of legislation in the control of advertising.
- Independent bodies
- Pressure groups
Advertising and Society
Advertising has the potential to affect the lived of many people.
- It adds to the cost of marketing products. This money could have been spent on improving products or price reductions. It is likely that consumers will pay more of any advertising costs that firms.
- It argues that advertising encourages people to buy products that they would have not brought usually.
- Environmentalists are concerned about high levels of consumption and advertisings role in this.
- Advertising can encourage people to buy products which are regarded as being damaging to society.
- Advertisement often encourages behavior which might be to the detriment of society as a whole.
- Advertisement offers a choice to consumers, which allows them to make more informed consumption decisions.
- Advertisement gives valuable information to consumers which might otherwise be difficult to come by.
- They respond to the needs, wishes and attitudes of the customers.
- Earns revenue for T.V and radio, and allows newspapers and magazines to be sold at lower prices.
- The advertising industry employs large numbers of people.
Corporate Advertising
Corporate advertising is concerned with promoting a company as a whole, rather than individual products.
There are two reasons why companies need to sell themselves more than ever. First, companies must now be seen as responsible good ‘citizens’. This means communicating. Second, there is a growing pressure for the company to become a brand. Companies need to ensure that their corporate image is positive. Corporate advertising often use slogans or catch lines.
