Advertising is that activity by which visual or oral messages are addressed to the general public. Its purpose is to inform or influence them in order to increase the sales of the advertising. The final aim is to persuade people to buy more. Introduction Advertising is the most commonly used tool of promotion. The most common methods of advertising are newspapers, magazines television and radio. Advertising is a paid form of communication. The marketer bears the cost of communicating with the prospective buyers.
There is no direct face-to-face contact between the prospective buyer and the advertiser. Companies spend an immense amount on advertisement because demand for product increases, which brings an increase in sales and this lead to an increase in production, the companies can get economies of scale which reduce the per-unit cost of production and thus, the increase in cost due to expenses on advertisements gets compensated. It helps buyers by informing them about the new products which may bring improvement over the existing products.
They only inform the customers, the final choice of buying or not lies with the customers only.
Consumers, being rational human beings can judge their needs accordingly as advertisement gives wider choice to customers and today’s customers and today’s customer is smart enough to know and select the most suitable brand for him/her. Buyers can analyze the information provided on the advertisement and other sources before making a decision to purchase a product. They may consider several factors such as price, style, size, etc.
Role of advertising in business Creates demand Advertising helps to create demand by making people aware of new products and new users of existing products. Consumer education It educates consumers by providing useful information about how products can be used for better satisfaction. It also helps in describing new features installed to a consumer. Enhances customer confidence Advertising enhances consumer confidence as they feel more comfortable and assured about the quality of the advertised product. Creates customer loyalty Advertising helps in creating customer loyalty through repeated communication. Ensuring feedback is the most important aspect of customer loyalty.
Improves standard of living Advertisement helps buyers by information helps buyers by informing them about the new products, which may be an improvement over the exciting products, thereby. Kellogg’s Super Noodles: Advertising: Key to the success of Kellogg’s Super Noodles. The national launch of Kellogg’s Super Noodles in 1979. Objective: to establish a major new non-cereal Kellogg brand worth £5 million RSP within 3 years. To create awareness and inspire trial. Target market: housewives with children. Media: press and posters. Some TV. Evaluation: was mostly an impulse buy. Advertising was modified, media budget was increased, additional TV support. Advertising was shown to have played a significant role in the brand’s undoubted success over two years.
Cadbury India Cadbury was founded in 1824 by John Cadbury. It is accompanying which manufactures chocolate products. It holds 75% of the confectionery market. The main corporate office is in Mumbai which operates since 1948. The main 5 plants of Cadbury are thane, Induri (Pune), Malanpur, Bangalore, Himachal Pradesh. Cadbury India is a fully owned subsidy of Kraft Foods. With annual revenues of approximately $50 billion, the combined company is the world’s second-largest food company, making delicious products for billions of consumers in more than 160 countries. They employ approximately 140,000 people and have operations in more than 70 countries. Print media, newspapers, advertisements, posters have been the main media communication for Cadbury.
Cadbury has discovered many new ways of spreading its market share. The greatest feature behind Cadbury’s success is that targets all types of age groups but it differs its products to different consumer class groups. Chocolates have usually been viewed as something meant only for children. Perhaps realizing that children would be attracted to any chocolate, irrespective of the brand, CIL targeted adults with their advertising since the early 1990s. Most, if not all, of Cadbury’s advertisements in India, feature people over 18 years of age. The message that CIL seems to be attempting to put across is this: In every adult, there is a child – let that child express itself, give in to temptation, and satisfy his or her desire to sink teeth into a smooth, creamy, delicious chocolate´.