A

Seminar Report
On
EFFECT OF ADVERTISEMENT
ON BUSINESS ORGANISATION

Submitted to
Submitted by

Mrs. Sarika
Yogesh Dangi
FACULTY OF MBA MBA – I
SEM.
MAIMT, Jagadhri Roll
No. 756
INDEX
• Introduction
• Advertising
• Aspects of Advertising
• Methods of Advertising
• Best Method of Advertising
• Effects of advertising
• Advantage of advertising
• Various Objections
• Demerits/Disadvantages
• Negative Effects
• Conclusion
• Reference
ADVERTISING
Advertising is a form of communication whose purpose is to
inform potential customers about products and services and
how to obtain and use them. Many advertisements are also
designed to generate increased consumption of those
products and services through the creation and
reinforcement of brand image and brand loyalty. For these
purposes advertisements often contain both factual
information and persuasive messages. 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 and
print
Organizations which frequently spend large sums of money
on advertising but do not strictly sell a product or service to
the general public include: political parties, interest groups,
religion supporting organizations, and militaries looking for
new recruits.
Additionally, some non-profit organizations are not typical
advertising clients and rely upon free channels, such as
public service announcements.
Advertising spending has increased
dramatically in recent years. In the United States alone in
2006, spending on advertising reached $155 billion, reported
TNS Media Intelligence. That same year, according to a
report titled Global Entertainment and Media While
advertising can be seen as necessary for economic growth, it
is not without social costs. Unsolicited Commercial Email and
other forms of spam have become so prevalent as to have
become a major nuisance to users of these services, as well
as being a financial burden on internet service providers.
Advertising is increasingly invading public spaces, such as
schools, which some critics argue is a form of child
exploitation.

ASPECTS OF ADVERTISEMENT
Consumers are the main source of an industry. In this form
each source that can influence the consumers, inspire them
for the purchase of production keeps an importance in the
sales system of an institution. Advertisement is an important
means to influence the consumers. It is not sufficient for a
manufacturer to deliver his product which has been
manufactured according to the choice of consumers at the
shop of retailers. The real sale of product is not possible until
the production does not inspire the consumer buy providing
them sufficient information regarding quality and
characteristics of the product. This work is only possible
through advertisement. Media of advertisement is meant by
the method which message from advertisement is accessed
to the consumers.
METHODS OF ADVERTISEMENT
(1) PRESS ADVERTISING OR PRINT MEDIA
• NEWSPAPER ADVERTISING
• MAGAZINE ADVERTISING

(2) OUTDOOR ADVERTISING:

(3) TELEVISION ADVERTISING:
(4) TELEMARKETING:
(5) ON LINE MARKETING:
(6) FAIRS AND EXHIBITIONS:
(7) DIRECT MAIL ADVERTISING:
(8) WINDOW DISPLAY ADVERTISING:
(9) SPECIALTY ADVERTISING:
(1) PRESS ADVERTISING OR PRINT MEDIA

Press advertising, i.e. advertising thorough newspaper

magazines, journals, etc. is commonly used by modern
businessmen. It may be noted advertising is an important
source of finance for the press or print media. Because of
advertising, the subscribers get newspaper and periodicals
at subsidized rate.

• NEWSPAPER ADVERTISING

Newspaper reading is a common habit among most of the

educated people. Besides daily newspaper also. Newspapers
reach almost every place and are used by all kinds of
people. Therefore, newspaper can be used as a medium of
advertisement with great advantage.

Advertising through newspaper has the following merits:

(1) A newspaper has large circulation and a single

advertisement a newspaper can reach number of people.
(2) Continues advertisement is possible because newspaper
is published daily.
(3) Newspaper provides flexibility in advertising in the sense
that advertising campaign can be initiated and stopped
quickly. One day's notice is sufficient for this purpose.

Newspaper advertising has the following limitation:

(1) The life off a newspaper of advertisement is very short.

Moreover, people devote only an insignificant of their day's
time in reading the newspaper. Thus, advertisements are
likely to draw the reader's attention only casually.
(2) Newspaper advertisement is successful only when the
people to be communicated the message is educated.
(3) Newspaper cannot be used foe colored advertisement.

MAGAZINE ADVERTISING:

Magazines or periodicals are an excellent medium of

advertisement when a highly quality of printing in colored is
desired. Magazine advertisements can be directed towards a
particulars class of people.
Magazine advertising is considered to be superior to

Newspaper advertising because of the following merits:

Magazines are read more carefully and at greater leisure.

Advertising through magazines is more effective.
(1) The life of the magazine advertisement is longer.
Magazines are preserved for a long period of time and are
read time and again.
(2) Since advertisement copy is presented in a colored form,
it creates a better image of the products advertised,

Magazine advertising has the following limitations:

(1) Advertising through magazine is costly.

(2) The circulation of magazine is generally smaller as
compared to the newspapers.
(3) Magazines advertisements are to prepared and sent for
publication well in advance.

(2) OUTDOOR ADVERTISING:

Outdoor advertising has gained wide popularity these days.

Its purpose is to attract the attention of the people at busy
roads and markets. It includes the use of posters displays,
bill board display and electric display.

Outdoor advertising has the following merits:

(1) Outdoor advertising is highly flexible and is a low cost

medium.
(2) It is very useful for advertising consumer products
because posters. etc. can be display at various crowded
centers.
(3) Outdoor advertisement attracts attention quickly and
requires very less time and efforts on the part of the reader

Outdoor advertising has the following demerits:

(1) It can't carry long message as posters, hoarding, etc. are

read by the people at a glance.
(2) It has low retention value because people don't devote
special time to read the message.
(3) It distracts the attention of the passers-by and may even
accidents on busy roads.

(3) TELEVISION ADVERTISING:

Television is the fast growing medium of advertisement

Because of huge expansion of electronic media. It marks its
appeal through both the eye and ear Products can be
demonstrated as well as explained as in film advertisement.

T.V. advertising has all the merits of film advertising.

It has greater effectiveness as the message is conveyed at
their homes to the people. Selectivity of message can also
be achieved. Commercials may be given during that time
period when the prospective buyers are supposed to watch
T.V. programmers.

T.V. adv. has got all the demerits of film advertising.

T.V. is very costly medium of adv. And can be made use of

by the well established companies only. Another limitation of
television advertising is that once it is presented. Its back
reference is not possible as in the radio advertisement.

(4) TELEMARKETING:

Telemarketing involves the use of telephone and call centers

to attract prospects sell to existing customers, and provide
service by taking orders and answering questions.
Telemarketing helps companies increase revenue, reduce
selling cost, and improve customer satisfaction.
Companies use call centers for inbound telemarketing
(receiving calls from customers) and outbound telemarketing
(initiating costs to prospects and customers).
(5) ON LINE MARKETING:

On line marketing is described as company efforts to inform,

communicate, promote and sell its products and services
over the internet. The advent of the internet as greatly
increased the ability of companies to conduct their business
faster, more accurately, over a wider range of time and
space, at reduced costs, and with ability to customize and
personalize customer offerings.

(6) FAIRS AND EXHIBITIONS:

The exhibitions and fairs relating to different industries of all
industries in metro cities are provisionally arranged in which
a number of manufacturers exhibit their products. A huge
population visits at these fairs for recreation. The
manufacturer can advertise their products in these fairs. The
items of daily use and food stuff are advertised through this
method.

(7) DIRECT MAIL ADVERTISING:

Direct mail is probably the most selective of all the adv.

Media. It is used to send customer. For this purpose, the
advertiser has to maintain a list which can be expanded or
contracted be adding or removing names from the list. But a
severe limitation is posed by the difficulty of getting and
maintaining a good mailing list.
Advertisements that are sent by the mail may be in the form
of circular letter, leaf let, calendars, booklets and catalogues,
Booklets and catalogues contain the information about the
products advertised, Information about the terms of scale
and prices of different varieties of the product is given to the
prospective customers through catalogues.

Merits of mail adv. are as under:

(1) Mail adv. has a personal appeal since it is addressed to a

particular person.
(2) It maintains secrecy in adv. The competitors do not get
the information about the advertised material.
(3) It gives an opportunity to the advertiser to provide
detailed and illustrated information about the prospects.

Demerits of direct mail adv. are given below:

(1) The coverage of detail mail adv. is limited.

(2) Its effectiveness is doubtful as it does not create a mass
appeal.

(8) WINDOW DISPLAY ADVERTISING:

Window display is a highly effective medium of

advertisement. Goods can be displayed in artistically laid out
windows at the shop fronts or at important busy centers like
railway stations and bus stops. Effective display of goods
attracts the attention of the on lookers and tries to convince
them to buy the good displayed, Display adv. can also used
by participating in trade fairs and exhibitions.

(9) SPECIALTY ADVERTISING:

Many business firm offer specialty articles to the present and

prospective customers. These articles may be diaries, pen
holder, desk trays, key chains, purses, paper weight,
cigarette cases and calendars. The name and address of
advertiser is printed or inscribed on the specialty items.
They also bear the brand name of the firm. Since these
articles are of daily use, they have greater capacity to
remind their user about the brand name of the firm offering
such articles.

BEST METHOD OF ADVERTISEMENT

Best method of Advertisement depends on the objective of a

business organization.
• If a business organization have objective to provide the
information to overall public then best method of the
advertisement is Television.
• If a business organization have objective to provide the
information to Literate Person then best method of the
advertisement is Print Media.
EFFECTS OF ADVERTISING
Advertising has become an essential marketing activity in
the modern era of large scale production and serve
competition in the market. It performs the following
functions:
1. Promotion of Scales: It promotes the sale of goods and
services by informing and persuading the people to buy
them. A good advertising campaign helps in winning new
customers both in the national as well as in the international
markets.
2. Introduction of New Product: It helps the introduction
of new products in the market. A new enterprise can’t make
an impact on the prospective customers without the help of
advertising. Advertising enables quick publicity in the
market.
3. Mass Production: Advertising facilities large-scale
production. Advertising encourages production of goods in
large-scale because the business form knows that it will be
able to sell on large-scale with the help of advertising. Mass
production reduces the cost of production per unity by the
economical use of various factors of production.
4. Research: Advertising stimulates research and
development activities. Advertising has become a
competitive marketing activity. Every firm tries to
differentiate its product from the substitutes available in the
market through advertising. This compels every business to
do more and more research to find new products and their
new uses.
5. Education of People: advertising educate the people
about new products and their uses. For example, Gits,
Kellogg’s,
Maggie’s etc., are thriving upon the new life-style of Indian
consumer.
6. Support to Press: Advertising provides an important
source of revenue to the publishers and magazines.
Advertising is also a source of revenue for TV network. For
instance, Doordarshan and Zee TV insert ads before, in
between and after various programmers and earn millions of
rupees through ads.

ADVANTAGES OF ADVERTISING
Advertising helps in spreading information about the
advertising firm, its products, qualities and place of
availability of its products, and so on. It helps to create a
non-personal link between the advertiser and the receiver of
the message.
The significance of advertising has increased in the modern
era of large scale production and tough competition in the
market. Advertising is needed not only by the manufacturers
and traders but also for the customers and the society. The
benefits of advertising to different parties are discussed in
the following paragraphs.
Benefits of Manufacturers and Traders

It pays to advertise. Advertising has become indispensable

for the manufacturers and distributors because of the
following advantages:
(i) Advertising helps in introducing new products. A business
enterprise can introduce itself and its products to the public
through advertising.
(ii) It can create new taste among the public and stimulate
them to purchase the new product through effective
advertisement.
(iii) Advertising assists to increase the sale of existing
products by entering into new markets and attracting new
customers. (iv) Advertising helps create steady
demand of the products. For instance, a drink may be
advertised during summer as a product necessary to fight
tiredness caused by heat and during winter as an essential
thing to resist cold.
(v) Advertising help in meeting the forces of competition in
the market-place. If a product is not advertised continuously,
the competitors may snatch its market through increased
advertisements. Therefore, in certain cases, advertising is a
necessity to remain in the market and remind the customer
as done by soft drink companies.
(vi)Advertising is used to increase the goodwill of a firm by
promising improved quality to the customers.
(vii) Advertisements increase the morale of the employees of
the firm. The salesmen feel happier because their task
becomes easier if the product is advertised and known to the
public.
(viii) Advertising facilitates mass product of goods which
enable the manufacturer to achieve lower cost per unit of
product. Distribution costs are also lowered when the
manufacturer sells the product directly to the customers.
Advertising facilities direct distribution of the product
through the retailers.
Retailers are encouraged to purchase and sell the advertised
products.

Benefits to Customers
Advertising offers the following advantages to customers:
(i) Advertising helps the customers to know about the
existence of various products and their prices. They can
choose from the various brands to satisfy their wants. Thus,
they cannot be exploited by the sellers.
(ii) Advertising educates the people about new products and
their diverse uses.
(iii) Advertising increased the utility of existing products for
many people add to the amount of satisfaction which they
are already enjoying.
(iv)Advertising induces the manufacturers to improve the
quality of their products through research and development.
This ensures supply of the products of better quality to the
consumers.
Benefits of Society

The society at large is also benefited because of

advertisement:

(i) Adverting provides employment to persons engaged in

writing, designing and issuing advertisements.
Increases employment brings additional income with the
people which stimulate more demand.
Employment is further generated to meet the increased
demand.
(ii) Advertising promotes the standard of loving of the people
by increasing the variety and quality in consumption as a
result of sustained research and development activities by
the manufacturers.
(iii) Advertising educates the people about the various uses
of different products and this increases their knowledge.
Advertising also helps in finding customers in the
international market which is essential for earning foreign
exchange.

Is advertising a social waste?

Advertising is often criticized as a wasteful activity and an

unnecessary evil. Its critics offer the following arguments to
prove their contention:
1. Multiplies the Needs: Advertising multiplies the needs
of the people by inducing them to buy even those things
which are not required by them. Since an advertisement is
continuously repeated, it creates a desire in the mind of the
public to buy the advertised product.
2. Makes the product more Costly: The amount of money
spent by an advertiser on his products advertisement is
added to the distribution cost of the product. Thus, the
customers have to pay more for the product advertised.
3. Increase in demand at the cost of another
manufacturer: Advertising does not always increase the
demand of the product. When the demand is inelastic,
advertising shifts demand from one producer to another.
That means a large amount of money spent on advertising
by the manufacturers goes waste.
4. Creates brand monopoly: Advertising may lead to
monopoly of a brand. It is argued that big manufacturers
who can afford large amount of money on advertising can
create brand monopoly and eliminate the small producers.
5. Every advertisement is not creative: A large number
of advertisements either escape the attention of the people
or are ignored by them. This leads to waste of money spent
on advertisement.
6. Undermines moral values: Sometimes, advertising
undermines ethical and aesthetic values. It may make the
people start bothering for appearance and design of the
product rather than the physical utility. Some advertisers
also use indecent language and photographs to advertise
their products which are highly objectionable from the
society’s point of view.
7. Corrupt the minds of youngsters: It is felt that
advertisement can corrupt the minds of youngsters. Young
minds run the risk of being carried away by the
advertisements promoting smoking, wine, etc. In some
cases, advertisements have promoted the youths to commit
crimes and undertake ventures at the risk of their lives.

Despite its drawbacks, advertising is a

necessary marketing activity in the present business
environment. It is not a social waste. It enables a
manufacturer to introduce his products in the market and
sell them. Advertising helps in educating the people
regarding new uses of various products. It also strengthens
the freedom of choice of the people. It sustains the press
and gives employment to people. Advertising increases the
standard of living of the people by informing them about the
availability of new products. Thus, we can say that
advertising is a useful marketing activity. Its drawbacks
could be removed if the people and the Government keep a
watch on the advertisers. People should satisfy themselves
about the claims made by a producer before they purchase
his products. The manufacturers or the advertisers should
also avoid wasteful advertising and keep advertising
expenditure within limits. They should also follow the ethical
standards while advertising their products.
DEMERITS/DISADVANTAGES
OF ADVERTISEMENT
(A SOCIAL WASTE)
These are the disadvantages of advertising:

Increases the cost:

It increases the cost of goods. The cost
of the advertisement is included in the price and is
ultimately borne by the customers.

Misleads the public:

It misleads the public by giving false
statements about the product. (It may be true in some cases
but majority of advertisers know the value of honest
statements.)
Creates dissatisfaction:
It creates tastes and desires for
some people whose income may not allow them to buy. Such
people feel dissatisfied.

Creates a monopoly:
It increases monopolistic trend. Due to
advertisement some manufacturers create monopoly in
industry and thus reduce healthy competition. It becomes
difficult for new firms to enter the field.

Creates the confusion:

It creates the possibility of wrong
purchases. Being impressed by the advertisement, in some
cases, a person is not able to purchase the commodity,
which he actually wants to purchase.

Encourages luxury:
This encourages luxury. Mostly the
commodities related to comforts and luxuries are advertised,
for example, cigarettes, cosmetic goods and etc. due to
advertisement of cigarettes several persons start smoking
cigarettes, which becomes habit.

Reduces cleanliness:
It reduces cleanliness. Large number
of posters and writings on the walls are used for
advertisement. This makes the roads and the walls of the
houses look dirty. Thus, it reduces the natural beauty.

Causes wastage:
It is a cause of wastage of natural
resources. As a results of advertisement, style and fashion
change quickly. It makes the goods out of fashion.
FOR EXAMPLE

Hero Honda uses the Advertisement to attract the youngster.

Hero Honda uses the bull in the advertisement of Karizma
bike that bull shows the youngster power. It is very use full
advertisement for attract the youngster.

CONCLUSION
At last it can be concluded that advertising is useful activity
which provides benefits to manufacturer, consumers. But
some time advertiser use untruthful, misleading
advertisement and they ignore moral responsibility by
showing vulgar, indecent advertisement. It is badly affecting
moral values in society. So advertisement should have
ethical values.
In order to be consumer oriented an advertisement will have
to be truth- full and ethical. It should not mislead the
consumer. It means what it promise must be their in the
performance of product, so ethics should be followed in
advertising.

Reference
• www.nicholosonmebride.com
• www.humanresourceabout.com/od/organizationdevel
opment/a/valueslive.html
• www.humanresourceabout.com/od/strategicplanning
/a/organizevalue.html
• http://forumssureshkumar.net/groupdiscussiont opi
cs/12305_ethics-advertising-comments-plz.html
• http://www.managementparadise.com/forems/showthread.php?t=
 24081
• http://www.asa.com
• http://hinduonnet.com