Advertising – SS3 Commerce Lesson Note (Second Term)

Advertising is the branch of commerce that promotes goods, services or ideas through messages that inform, educate and persuade the public.

Behavioural objectives

1. State the functions of advertising.
2. Describe the main types of advertising.
3. List the media of advertising and state the merits and demerits of five of them.
4. State the factors to consider when choosing an advertising medium.
5. State the advantages and disadvantages of advertising.

What are the functions of advertising?

The functions of advertising are the jobs it does for producers, sellers and consumers.

• Creating demand: it makes people want goods and services.
• Informing: it tells customers that new products exist in the market.
• Persuading: it encourages customers to buy particular products.
• Educating: it teaches the public the uses of a product.
• Promoting the firm’s image: it presents the firm as a seller of high-quality goods and a provider of efficient and reliable services.
• Creating brand loyalty: it encourages customers to keep buying the same brand.
• Improving product quality: it pushes producers to keep their products good enough to compete.

What are the types of advertising?

There are seven types of advertising: informative, persuasive, competitive, direct, indirect, mass and specific.

• Informative advertising: it tells consumers that a product exists or has arrived, and explains its benefits and uses.
• Persuasive advertising: it uses convincing words and strategies to make customers buy a particular brand or product.
• Competitive advertising: it tries to show that a product is better than others, by praising the advertised brand over close substitutes.
• Direct advertising: it advertises goods and services used by only a specific class of people. For example, a new brand of chalk can be advertised to schools through an educational journal.
• Indirect advertising: it is not aimed at any one section or class of people. It advertises goods and services meant for all and sundry.
• Mass advertising: producers or sellers of similar products advertise jointly to the public. It promotes the whole industry, not a brand, as in advertising eggs.
• Specific advertising: it directs its appeal to one particular brand which is unique.

How do mass and specific advertising differ?

Mass advertising promotes a whole product class, while specific advertising promotes one brand.

What are the media of advertising?

The media of advertising, also called the methods of advertising, are the channels used to carry advertising messages to the public.

• The press: newspapers, magazines and journals.
• Television: adverts shown with sound and moving pictures.
• Radio: adverts carried by sound alone.
• Cinema: adverts shown on the screen to people who come to watch films.
• Hoarding: large boards placed along roads and in public places.
• Posters: printed sheets displayed on walls, boards and vehicles.
• Neon signs: lighted signs that use electric current, easily seen at night.
• Catalogues: booklets that list goods with pictures and prices.
• Handbills and pamphlets: small printed sheets given out by hand.
• Exhibitions and trade fairs: places where firms display goods for visitors to see.
• Window and interior displays: goods arranged in shop windows and inside the shop.
• Direct mail: letters and brochures sent to chosen people by post.

What are the merits and demerits of some advertising media?

What factors should be considered when choosing an advertising medium?

A firm chooses an advertising medium by weighing six factors.

• Cost: the price of using the medium must fit the firm’s budget.
• Nature of the product: a product that must be seen, such as clothes, suits television or print.
• Reach: the extent of coverage or size of the audience the medium can serve.
• Merits and demerits: the strengths and weaknesses of the medium must be compared.
• Frequency of exposure: the number of times the same viewer or reader may meet the same advert.
• Target audience: the social or age group the firm wants to reach.

What are the merits and demerits of advertising?

The merits and demerits of advertising are its benefits and its harmful effects on firms, consumers and the economy.

What are the advantages of advertising?

• Information: it tells buyers about the availability, price and features of goods.
• Employment: it gives jobs to people working in the advertising sector.
• Corporate image: it builds and sustains the good name of firms.
• Quality: it improves the quality of goods.
• Education: it teaches the public how to use certain goods.
• Increased production: it makes large-scale production possible, which lowers the cost of production.
• Higher sales: it increases the volume of sales or turnover of firms.
• Demand: it creates and sustains demand for goods.

What are the disadvantages of advertising?

• Wrong consumption patterns: it leads people to buy what they do not need.
• Higher prices: it raises costs, which are passed on to consumers.
• Unhealthy competition: an advertiser may discredit the products of rivals.
• Misleading claims: false claims can deceive consumers.
• Dangerous goods: it encourages the use of harmful goods such as cigarettes and alcohol.
• Waste of resources: much advertising spending adds little value.
• Private monopolies: it can keep new firms out of the market.
• Too many brands: it encourages the multiplication of brand names.

Evaluation

1. List five functions of advertising.
2. What is an advertising medium?
3. Give seven examples of advertising media in use in Nigeria.
4. State five factors to be considered before choosing an advertising medium.
5. State three advantages and three disadvantages of using each of these media: (a) newspaper (b) radio (c) television (d) poster (e) direct mail.

Assignment

1. Read Essential Commerce for SSS by O.A. Longe, pages 251 to 259. Then explain five functions of advertising and state five disadvantages of advertising.