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ADVERTISING AND BRAND MANAGEMENT TOPIC- ROLE OF ADVERTISING IN SOCIAL

ADVERTISING AND BRAND MANAGEMENT TOPIC- ROLE OF ADVERTISING IN SOCIAL AND ECONOMIC DEVELOPMENT OF ECONOMY SUBMITTED BY-. INTRODUCTION. ECONOMIC IMPACTS OF ADVERTISING. EFFECT ON PRODUCTION COST. VARIOUS ECONOMIES OF SCALE BETTER UTILISATION OF EXPENSES

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ADVERTISING AND BRAND MANAGEMENT TOPIC- ROLE OF ADVERTISING IN SOCIAL

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  1. ADVERTISING AND BRAND MANAGEMENT TOPIC- ROLE OF ADVERTISING IN SOCIAL AND ECONOMIC DEVELOPMENT OF ECONOMY SUBMITTED BY-

  2. INTRODUCTION

  3. ECONOMIC IMPACTS OFADVERTISING

  4. EFFECT ON PRODUCTION COST VARIOUS ECONOMIES OF SCALE BETTER UTILISATION OF EXPENSES AVAILABILITY OF GOOD RAW MATERIAL AVAILABILITY OF BETTER TECHNOLOGY

  5. EFFECTS ON DISTRIBUTION COST • Reduction of personal selling expenses • Less selling efforts • Lesser personal selling

  6. EFFECT ON PRICES • Reduction of per unit production cost • Per unit selling and distribution cost • Advertiser himself reduces prices

  7. EFFECT ON DEMAND • EDUCATING THE AUDIENCE ABOUT THE USES OF PRODUCTS • AD CAN HELP IN SHIFTING THE DEMAND CURVE OF THE PRODUCT

  8. EFFECT ON COMPETITION • Promotes competition

  9. EFFECT ON CONSUMER’S CHOICE Provides information Comparative study Impels the consumer

  10. EFFECT ON BUSINESS CYCLES • HELPS IN REDUCING THE BUSINESS CYCLES • PERIOD OF RECESSION • PERIOD OF BOOM

  11. EFFECT ON NATIONAL INCOME ADVERTISING • PROMOTES DEMAND • INCREASES PRODUCTIVE AND INDUSTRIAL ACTIVITIES • PROMOTES GROWTH IN AGRICULTURE • GROWTH IN SERVICE SECTOR • INCREASE IN EXPORTS

  12. EFFECT ON EMPLOYMENT

  13. EFFECT ON PRODUCT QUALITY • PROMOTES COMPETEION • FOR LONG TERM SUCCESS IN BUSINESS GOOD QUALITY PRODUCTION IS MUST

  14. EFFECT ON STANDARD OF LIVING • PROMOTION OF DEMAND • PRICE REDUCTION • CONSUMER HAS WIDER CHOICE • PERSUADES THE PEOPLE

  15. SOCIAL ASPECTS OF ADVERTISING

  16. INTRODUCTION Advertising affects social aspects of people in both positive and negative ways. It affects lifestyle, cultural values, standard living, tastes, likings and preferences, etc. some advertising appeals badly affect children and undermine the status of women and aged persons in society.

  17. Social aspects of advertising • Untruthful advertising • Effect on culture • Effect on media • Materialism • Effect on children • Stereotyping in advertising • Wrong advertising appeals • Confuses people • Advertising of controversial products • Too persuasive

  18. Untruthful/Deceptive advertising • Ads not disclosing material facts about the product/service. • Such ads are short-lived and illegal under trade practices of MRTP Act.

  19. Effect on culture • Culture includes lifestyles, values, customs, moral values etc. • It can be within the country and with other countries also • It has both negative and positive sides.

  20. Effect on media • Critics argue that media is controlled by advertiser . • Types of media are newspapers , magazine, tv , etc. • Newspapers cover its cost through ad-revenues. • Media does not bother about type of ad the advertiser is given.

  21. Materialism • Advertising make people buy the things which they don’t need and cannot afford.

  22. Effect on children They are unable to assess merits and demerits of the products . They insist their parents to purchase the advertised products.

  23. Stereotyping in advertising • stereotyping refers to presenting a group of people in certain roles only. • Advertising has received criticism for stereotyping women and aged people.

  24. Wrong advertising appeals • Sex appeal • Fear appeal

  25. Confuses the people • Ads creates unnecessary differences in brands while products are not actually different.

  26. Advertising of controversial products • Ads related to tobacco products , alcohol , contraceptives are controversial.

  27. Too persuasive • Repeated ads control the mind of consumer and he is not in a posion to think about other brands.

  28. BENEFITS / IMPORTANCE OF ADVERTISING

  29. BENEFITS / IMPORTANCE OR ROLE OF ADVERTISING 1. BENEFITS TO MANUFACTURERS 2. BENEFITS TO CONSUMERS 4. BENEFITS TO SOCIETY 3. BENEFITS TO DISTRIBUTORS AND SALESMAN

  30. BENEFITS TO MANUFACTURERS • Increase in sales • Mass communication • Lowers production cost • Promotes Brand – Image/ Goodwill • Helps in facing competition • Permanent Demand • Helps in introducing new products • Higher profits

  31. 1. Increase in sales 2. Mass communication 3.Lowers production cost

  32. 4. Promotes Brand- Image/ Goodwill 5 Helps in facing competition 6. Permanent demand

  33. 7. Helps in introducing new products 8. Helps in earning higher profits

  34. BENEFITS TO CONSUMERS • Convenience in purchase of products • Advertising adds to the knowledge of consumers • Products available at low prices • Reminds consumers of essential things • Better quality products • Benefits of direct marketing and online marketing

  35. 1. Convenience in purchase of product 2. Increase knowledge of Consumers 3. Product available at low prices

  36. 4. Reminds consumer of essential things 5. Better quality products 6. Direct marketing and online marketing

  37. BENEFITS TO DISTRIBUTORS AND SALESMAN • Easy selling • No need of advertising by distributors • Increase in sales and profits • Ensures regular sales • Less price bargaining • Selling new products

  38. Manufacturer Salesman 1. Easy selling 2. No need of advertising by distributors 3. Increase in sales and profits

  39. 4. Ensures regular sales 5. Less price bargaining 6. Selling new products

  40. BENEFITS TO SOCIETY • Increase in standard of living • Increase in employment • Increase in national income • Increase in exports • Cultural advancement • Encouragement to research and development

  41. 1. Increase in standard of living 2. Increase in employment 3. Increase in national income

  42. 4.Increase in exports 5. Cultural advancement 6. Encouragement to research and development

  43. LIMITATIONS OF ADVERTISING Unbranded products Less believable message Inflexible and rigid Immediate feedback Product differentiation Size of target customers

  44. IS ADVERTISEMENT A WASTE?

  45. ECONOMIC OBJECTIONS

  46. Increase in cost and price • No Increase in Real Demand • Restricts Entry of New Business Units • Reduces Consumer Choice • Further widens Business cycles • Wastage of National Resources • Creates Monopoly

  47. INCREASE IN COST AND PRICE Increases Selling and Distribution Expenses Passed on to consumers and they become the ultimate Sufferers .

  48. NO INCRESE IN REAL DEMAND

  49. RESTRICTS ENTRY OF NEW BUSINESS FIRMS • Huge advertising expenses by existing firms restrict the entry of new units. • Brand Popularity of Existing Firms

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