Advertising – The Role of Advertising in Business

Advertising – The Role of Advertising in Business

The competitive nature of Nigerian environment no doubt had compelled the managers of companies to realize that the philosophy of marketing is that a firm makes what it can sell rather than what it can make.

Kotler (1997; P. 220) said that the success of a product in the market is a direct function of programmes designed to create, build and sustain mutually beneficial exchanges and relationship with the target marketer.

In their efforts to market acceptance, organizations develop and use a combination of marketing strategies some having to do with the various promotional tools, others with product quality, pricing, distribution, all for the purpose of maximizing their product.

Again, according to Ketler (1988: P. 617) advertising consists of communication conducted through paid media under clear “sponsorship”.

He went further to state that the possible advertising objectives are:- To inform, this includes felling the market about a new product suggesting new used of the product, informing the market of a new price change. To persuade customers to purchase the product and also receive a sales call.

To remind keeping it in their mind during off seasons, reminding the customers that the product may be needed in the near future and maintaining its top of mind awareness.

In his own contribution, Nwosu (1996; P.49) defined advertising as mass and marketing communication form practice whose aim is to create awareness for products, services, ideas, projects, institutions or individuals and persuade the right target audience or consumers to purchase, accept, adopt, vote or engage in other behaviour desired by the sponsor of the advertisement.

According to Maccarthy (1994; P.48) advertising is any form of non-personal presentation of ideas, goods and services by an identified sponsor.

He further stresses, magazines, radio, television billboards and direct mails. To him advertising is the most economical channel of conveying messages to the target market, since a large part of the target audience is reached at the same time.

Advertising from the foregoing, can force middle/ments stock the product by arousing consumer interest. It can equally build dealers and consumers confidence in company and its product.

Udeagha (1995; P.219) believed that advertising is used to gain access to a large audience that is scattered over wide area at one and the same time, its cost per prospect is usually selling. He equally pointed out that communication by means of advertising is also less susceptible to immediate feedback than personnel selling.

On this note, it is sufficient to say here that advertising presents information on the product features attributes, benefits etc, in a persuasive way to get the consumers to try the product or service being advertised. It is most desirable when the market for the product, service or ideas is wide spread and when the people need to be informed urgently.

Advertising has been known to be most efficient and encourages mass production.

Also Read: Advertising – The Role of Product Advertising on Sales

HISTORY OF ADVERTISING

Institution came into existence when there are recognized needs for them.  No mysterious process of self-generation beings forth an institutions unless a variety of external forces are present to nourish its development. Before the development of modern communication media information were disseminated through the use of the town criers who went about with their metal or wooden gods and spread any piece of news items to those concerned. The method was in operation until business activities became complex that people, to be informed were relative by larger, then other means of disseminating information was sought.

Sedgwick (1978; P.15) noted that the earliest evidence of men’s attempts to communication a visual message to his fellow men was that of the well inscription and longing signs used by the Egyptians and subsequently by the Greek and Romans. According to the Author, these signs were designed to communicate the signs and indispensable fact of men’s trade or as used for entertainment, places or rent and articles cost or stolen.

According to Wright etal (1978; P.15) in Greek during its golden age, public criers were a civil institution. Men were paid to circulate through the streets and city, advertising the citizens or the important news and announcing public events later, during the meddle ages, the only spoken word. Their signs were alter used to notify the populace of important meetings, local politics and even place where certain consumers product can be found.

In the view of Burke (1985; 91 – 92), advertising began with recorded history probably as early as 400BC. According to him the Romans pointed walls to announce context and physician made wall paintings on prominent roads along parade route.

Longman (1980; P.4-14), assumed that advertising came about as a result of the high cost of personnel selling which made the entrepreneurs devices means of informing people where to find the goods and service they were offering.

Baveen and Arens (1982;16) said that the first printed advertising appeared in England in 1972. it was also recorded that the advert was in form of handout cards. These printed cards were distributed to many people. The merchants found them more efficient than signs, which were seen only by those who happened to pass them. The cards were also found to be more than the town criers and had little limitations.

Industrial revolution in the nineteenth century brought changes in nature of advertising radio, firms and television made an in road into the market. The industrial evolution no doubt brought in mass production of goods and areas of specialization, product designs and brands financers, professional marketers and advertising agents, moreover, it led to surplus products, hence the need to make customers buy more. Udeagha (1995: P.23) opinion that during and  immediately after the first world war, production capacity in western Europe and North America increased to such an extent that a new problem; that of excess capacity emerged. As a result, business people reacted by engaging in aggressive activities, advertising personal, selling, branding sale promotion etc. there were competition among the firm and each  firm tried to identify its own product by branding that is distinguishing them from that of its competition.

In tracing therefore, the origin of advertising it becomes obvious that advertising has been in place for very long time.

Modern advertising development came into existence in Nigeria in connection with LINTA Limited, which is the oldest advertising agency in Nigeria that inform buyers about firm and their products. The company was borne under West Africa Publicity Limited (WAP) IN 1928 through the inspiration of Lioyed who became the First general Mange. Original the firm (WAP) sole operation was based on placing posters of advertising products exported to West Africa Countries by British manufactures.

However, these posters continued to dominate the advertising scene until 1948 when the median industries showed a remarkable improvement in their professionalism and production techniques, which attracted more readers.

WAP later introduced the Neon sign advertising in 1951. Although business to a new company founded under the name  Afromedia, which is a leadership name in advertising contractors today. More still, the company gave up contractual obligation for cinema advertising with an international firm contracting organization name pearl and Dean which enables it to operate in Nigeria. Through this process advertising gradually came into full operation in Nigeria.

TYPES OF ADVERTISING

Advertising can be classified according to its function in the following ways.

Product Advertising

The advertising is aimed at promoting or pushing a product. The product advertising could be referred to as either direct actions or indirect action advertising. It is direct action when the advertising makes a strong bid for buyer’s immediate action.  The advertiser may seek a quick response with a coupon or a promise of free sample. The indirect action advertising is designed to push the product or services over a buyer period of time. The advertising informs the customer about the existence of the product and the benefits to be derived in using the product. The product advertising is at times called product reputation advertising because it is aimed at promoting the sales of brand named products.

Institute Advertising

This is “good will” advertising designed to promote the firms overall quality, image or reputation. In institution advertising, there is often no bid for direct action to sell a specific product or service. The institution advertising is also at time labeled corporate advertising because it enhances the corporate image by creating a favourable attitude programme. This may be achieved by promoting good causes and by recommitting the firm’s social contributions and business ethnical products. William Stanton identified three aspects of institutional advertising patronage, public relation and public service institutional advertising patronage institutional focus in attracting customers by appealing to patronage buying motives rather than product buying motives. For example, an advertisement informing customer of the firms improved after sales services, longer opening hours new credit policies and establishment of customer complaint department public relation institutional advertising may explain a form’s position in the face of environmental matters what the form is doing to comply with applicable environment laws and regulations or the advertisements may stress the forms participation in a wide range of social action programme. The public service institutional advertising promotes public cause. For example an advertisement by a sports manufacturing company urging the public to exercise for survival.

National Advertising

Advertisement by manufacturers of consumer product in contrast with the done by retailers are called National Advertising. The aim is to relate consumer demand for the product by emphasizing the benefits to be derived from using the product. National Advertising is also usually embarked upon by old manufacturers rather than new manufacturer who do not immediate national distribution for lack of funds.

Retail Advertising

Retail advertising placed by a retailer it has different goal from national advertising. Product or brand is purchased; but where the consumer makes the purchase. The advertising message of a retail advertiser is happy as long as the customer makes the purchase in his or her stone. Retail advertising therefore appeals to patronages buying motive rather than sometimes employ what may appear as a national advertising or their private label goods. These private brands in effect become national brands that are sold exclusively in their retail and national advertising in at least five ways.

1.       Territory covered.

2.       Customer relationship

3.       Target audience.

4.       Expected response and

5.       Use of price

Local Advertising

The local advertising concept is used to describe the advertising sponsored by local business firms that are not necessarily retail establishment. They are manufactures of services that operate on the local level for example the advertising done by service institutions such as community bank computer training schools, dry cleaners etc. the advertisement is aimed at achieving “brand loyalty” from the local public. The advertising is placed in the local media – local newspaper, local radios and television stations etc. it cannot be classified as retail advertising just because it is placed by a local firm.

Co-operative Advertising

This is visually used to describe advertising that is not paid for by single sponsor. Manufacturers may be interested in identifying retail outlets products for the consumers of their nationally advertising products. Co-operative advertising is used to facilitate this goal. The manufactures usually provides all the necessary materials for the advertising but the media cost are usually shared between the parties concerned. Co-operative advertising could be horizontal co-operative advertising is handled competitions within the same industries for mutual benefit of all members.

          TRADE ADVERTISING

This is advertising induced to retailers to stock the manufacturers products ort o increase their shelf space for the product. Trade advertising encourage the manufacturer to increase inventory of those items advertised that customers will buy and to cooperate with the manufactures national advertising companies. The principle channels of trade advertising are direct mail and various business publications, journals, magazines, (the economist or newspaper i.e. the business times) personal selling by the company’s sales persons are used to complement retail advertising.

INDUSTRIAL ADVERTISING   

Advertisements directed at retailers are trade advertising while those meant for other manufacturers are industrial advertising. Industrial advertising are for such items raw materials, machinery, equipment semi-finished products, parts and component and operating supplies. The message contains details specifications on how the product can be used and the benefits to be derived from purchase of product. Quality, service durability and economy are usually the strong appeals.

FARM ADVERTISING

Farm products are both industrial and consumer goods, but farm advertising is frequently aimed  at the farmer as a producer. The promotional strategies for farm products are similar to those employed for industrial products. There are specialized farm publications designed to reach farmers, more effectively. Such publications are farm journals, successful farming. The big farmers etc.

PROFESSIONAL ADVERTISING:

This is the advertising that aimed at the professional person and not by him or her it is unethical for professional people such as Doctors. Lawyers, architects and Dentists to adverse for charts. Professional advertising are similar to trade advertising, expect that professional does not buy goods for selling to consumers. They help the manufacturers is selling the products by recommending or prescribing them to clients.

ADVERTISING AND MEDIA SLECTION

Ebue (200, P. 100), said that media selection is determining the best medium or vehicle to deliver an advertising message to the prospective customer. Media therefore is the means by which advertisers reach their target audience with advertising message.

Onyebuagu (1995, P.36) noted that advertising media constitution an important part of an advertisement. He said that the search for appropriate media channels of exposure has always constitute a strategy implicit on successful advertising. Media selection is therefore, which media to be used for advertising, where they will be used and how they will be used to achieve their desired company objectives.

Advertisers must choose from among the available media those that best suit their promotional objectives. These media are: newspapers, magazines, radio, television direct mail, out door advertising outlets such as yellow pages, sky writing, calendar etc.

In other for an advert to achieve the desired objective, it is important that careful consideration should be given to selecting the channels to transpire the message because each medium has its own special pros and cons. Any sound advertising campaign must be based upon a thorough understanding of various advertising media. Ebue noted media have some personalities and characteristics much like some products or firms. The major media types vary in reach frequency and impact.

Choosing from among the media will depend on many considerations such as according to Ebue (200; P. 106) they are:-

• Target audience media habit
• Product
• Message requirement
• Cost
• Objectives of the advertisement

He asserted that the cost and impact of each media must be periodically r-examined to check if they are consistence with the objective of the campaign and also to determine what the advertiser is getting from the money spend on different media.

THE ROLE OF ADVERTISING IN BUSINESS

The role of advertising in an organization need to be over emphasized. Lodiah 19996:9 P. 262 pointed out that an explicit statement in the marketing plan about the appropriate role of advertising has many benefits for the firm. According to him, the most important benefit is that the specific roles that the advertising or promotion is to fill can then be translated into objectives to the advertising and promotion to achieve.

He went further to state that there are number of interlocking roles advertising can form. Basically these roles can be categorized in three groups.

The function of the role is to increase the number of customers or increasing the rate of the use of the product or services by current customers.

The second grouping of roles postulates the perpetual changes that advertising is supposed affect.

The third role grouping concentrates on the creating advertising that will by itself cause people to do something.

Drake (1978: P. 78), noted that our advertising may be launch a new product, it could be to changes the positioning a well established product or to take advantage of a seasonal in an areas that varies from national norm, or perhaps to achieve a fast rate of trial and sampling. This to the researcher means that advertising could be used to launch a new product into the market like Iso germicide

In an article Dogbuge said that minus advertising brands, would be dead and advertising is known to create good image of itself before the public. Writing further dugbug remarked that advertising contributed to the economy by contributing to personal selling and making it cheaper operation. He went further to say that advertisement helps to raise the standard of living of the masses and create awareness and also contributes to the improvement of locally manufactured goods. He said that advertising effort has forced manufacturers rise the standard of goods and services.

Concluding, he argued that there is no doubt therefore that we need it for the employment it provides for thousand of Nigeria citizens. We need it to help to raise our standard of locally manufactured goods.

In the view of Olusola 91993: P. 10) he asserted that the primary motive of advertising is persuasiveness by way of informing the target market that a given product exist having specific attributes and capable of satisfying, specific need and finally arguing them to try it. In another development Ogbuitse  (1995: P.19) shared a similar view that basically, advertising messages are intended to create this awareness and generally stimulate interest, trial and adoption of a product.

Udeagha (1995: P.219) stated very clearly that advertising objectives are generally similar to those of the marketing communication, they include informing and educating the buyer about an organization, products and services. Particularly the new ones reminding the buyer of the old they are at high of quality affordable prices meant for him or her.

The role of advertising in exhaustible but most of the producers see advertising communication as primary a tool for selling products services of ideas. In short, in the words of Emodi in an article, warned that those who have not given attention to advertisement simply because they feel they have obtained enough customers to know that advertisement apart from seeking out new customers are also designed to retain existing customers.

EVALUATING OF ADVERTISING EFFECTIVENESS

Effectiveness of advertising and even the place of advertising in the society has been a subject of controversy. Effective advertising according to Amechi (1991: P.6) is the one express the brand message to the identified target audience at the right time, right price and the most effective cost towards realization of the set of marketing objectives.

Lord Leverhelme and Martin major in Ebue, Adirika and Nnolim (1996: P.24) stated that one half of each advertising money is wasted but I do not know which half, while Martin explained that only the very brave or the ignorant can say exactly what advertising does in the market. These and other critical comments show that the effectiveness of advertising is difficult to measure.

Udeagha (1995: P.220) noted that the effectiveness of advertising campaign depends on a thorough knowledge of the target market. He maintained that marketing research is expected to provide a market with data to facilitate the segmentation of the market and the choice of the target market. According to him, to reach the target market effectively with the tool of mass communication, data on the following attributes of market must be provided by the organization marketing research.

(a)     Stages in the process buying decision process.

(b)     The image of the organization has cut in the minds of prospects.

(c)      Evaluating criteria that underline the product choice.

(d)     The demographic and psychological characteristics.

(e)     Attitude of the target markets towards the product and the organization.

(f)      Media preference of the target market as well as data on the media circulation and cost.

(g)     Their information stand that is whether there is product awareness of lack of it.

Too often, advertising is ineffective irritating misunderstood or simply ignored because it is not based upon the results of an effective research. Research is the vital bridge that links the firms advertising strategies to kits market.

In the view of Adirika, Ebue and Nnolim (1996: P.134) an effective advertising is noticed read understood, believed remembered and acted upon it is the advert that produces desired response from the target audience. An advert he further opined may be measure in terms of effect and communication effect.

Advertising effectiveness is usually tried to purchasing response or sales effect but is not easily established and sales are not always an evidence of successful advertising. Advertising is not designed to achieved immediate sales.

Adirika, Ebue and Nnolim further maintain that advertising effectiveness needs to be measured in the context of advertising god or communication objectives.

Where the goals of advertising are to increase immediate sales, it is still difficult to establish a direct relationship between advertising and sales increase. This is because advertising is only one element in the whole selling or marketing effort, and it is not easy to isolate the effects of other marketing inputs such as product attributes price distributes, price distribution outlets etc.

In the view of Onyeke (1999: P. 57) to ensure effectiveness in advertising three types or research are necessary. These are market research media research and creative research.

Gilligan crowther as quoted by Adirika (1996: P.135) noted that determining the effect of advertising is often almost impossible and complicated.  ………………………………………………………….

—-This article is not complete———–This article is not complete————

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Advertising – The Role of Advertising in Business