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Introduction

• Definitionadvertising is the publication or
  broadcast of information,usually with the aim of
  stimulating sales.
  
• Adverting is a major part of modern life.
  Advertisements appear on television , in
  magazines, on billboards and sides of bus
  -even on internet.

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• It is important because it spreads information or
  awareness about goods and services to potential
  customers.It can help a manufacturer or retailer
  to sell more of his stock and it may stimulate
  the sales of new or less popular goods.

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Function of advertising

• to promote sales
• to improve the image of a company
• to warn people
• to promote brand loyalty
• to introduce new products
• to inform customers of change

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to promote sales

• It is to get customers to buy its products.A
  firm will make profit if cosumers buys its
  products in large quantites.Increased sale should
  result in increased the profits.
• So advertising is very important.

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to improve the image of a company

• Some companies use advertising to let people know
  about the companys contributions to charities or
  welfare activities to improve the companys image.

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To warn people

• The government uses advertising to try and make
  people more aware of possible dangers.

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To promote brand loyalty

• Frequent advertising of a brand name can make
  consumers familiar with it .this can result in
  brand loyalty.

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To introduce new product

• When a business brings out a new product,it will
  usually spend large sums of money on advertising
  to make consumers aware that a new product is
  available.

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To inform consumers of charges

• Firms often change the characteristics of feature
  of an old product.Car and camerma manfactures,for
  example,regularly change their products and use
  advertisement to let people knoe the changes.

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Advertising techniques(informative
advertisement)

• It will try to give information about the product
  which can convince people that it is buying.
  
• The advertisement will usually stress how the
  product is superior to its competitors in the
  following ways.
  

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Cost

• The price of the product can be used to advertise
  an item which is cheaper than its competitors.

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Quality

• If the price of the product is similar or even
  more expensive than its competitors, its must
  stress its quality to show it is value for money .

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Work simplification

• With this techniques,the advertisement stress
  that if

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Advertising techniques(persuasive
advertisement)

• Persuasive advertisements, on the other hand, use
  a variety of subtle techniques to persuade
  consumers to buy a product.
  
• These techniques are called hidden persuaders and
  they include the following.

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Romance

• Advertisers often associate a product with
  romance.

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Personality appeal

• This technique uses a famous personality to
  advertise the product.
  
• Famous personalities are often used in
  advertising.

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Sex appeal

• Sexy models are often used to attract attention
  to a product .Although the product may have
  nothing to do with them,this technique is often
  used simply because man are likely to be
  attracted by the sexy models.

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Social acceptability

• Here the product is linked to the avoidance of
  embarrassing social situations.

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Ambition

• This technique tries to link the product with
  successful and rich people.Advertisements for
  brandy and expensive watches always suggest that
  people who use these products are rich and
  successful.

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Types of advertising media

• An advertising medium is a means or vehicle for
  advertising.For example, television and
  newspaper.
  
• It is the channel through which sellers can
  advertise to the public.

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Television

• This is most expensive form of advertising. It
  combines the effects of sound and vision and has
  a wide coverage.
  
• Television advertising reaches consumers in their
  homes where they are relaxed and most receptive
  to persuasive techniques. The high cost of
  television advertising means that it tends to be
  used by large firms which sell products with a
  high turnover.

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Television

• Because the characteristics of television
  audiences vary at different times ,it is
  important for advertisers to choose an
  appropriate time to show their advertisement. If
  a firm wants to advertise a product ,such as a
  car ,it will advertise at the peak viewing time
  for adults which is between 7 p.m. and 11 p.m.If
  they are advertising a product for children ,such
  as Game Boy,then the peak viewing time is from 4
  p.m. to 7p.m.

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Radio

• Although this medium also has a wide audience,its
  audience is not as receptive as that for
  television.People are usually doing something
  else when they are listening to the radio.
• As many radio programmes consist of music,this
  medium is often used to advertise records and
  cassettes.It is also used to advertise car
  products.

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Factors influencing the choice of advertising
media

• We have seen that a wide variety of forms of
  advertising is available to manufacturers and
  retailer. They can use television, newspapers,
  cinema, magazines or posters, etc., to advertise
  a product. We will now look at the reasons behind
  a firms choice of a particular medium in more
  detail.

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Cost

• If a firm does not want to spend much money on
  advertising, its choice will obviously be limited
  to some of the cheaper forms of advertising such
  as newspapers and posters.

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Media available

• It is not always possible to buy advertising time
  or space at the time required. For example, if
  you wish to book an exhibition hall at the Hong
  Kong Convention and Exhibition Centre , you may
  have to do so several months in advance.

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Type of product

• If the product is a consumer product which is
  used by all households, such as soap, then a
  medium which is watched or listened to by the
  general public should be used. However, if the
  product is a specialist producer good, it would
  be more effective to advertise in specialist
  magazines or trade journals. If the product is
  only purchased by a small sector of the
  population, the advertisers will try to use a
  medium which will reach those consumers.

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• So, for example, producers and retailers of
  computers will advertise in specialist computer
  magazines.
  

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The potential customers

• The age, sex and income level of the potential
  customers will also influence the choice of
  media. Childrens toys, for example, will
  probably be advertised in childrens comics,
  whilst jewellery will be advertised in social
  magazines. Similarly, if a property owner whishes
  to sell a 55 sq. metre flat in Tsz Wan Shan, then
  he will advertise it in a newspaper such as the
  Oriental Daily or Sing Pao. However, if he has a
  300 sq. metre flat on the Park, he

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• would advertise it in the South China Morning
  Post. This is because the newspapers are read by
  different groups of potential customers.
  

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The nature of the market

• Obviously, a product which is aimed at a large
  international market will use different
  advertising media than one aimed at a local
  market. For example, cigarettes and brandy have
  international markets and can advertise in
  international magazines such as Time and Newsweek.

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The form of the
advertisement

• If the advertisement is using sex or personality
  appeal, it would be more effective to use an
  advertising media which can be seen (e.g.,
  television) rather than one that can only be
  heard (e.g., radio).

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Government restrictions

• It may not always be possible for a producer to
  use the type of advertising he wants to market
  his product. Some products are prohibited by the
  government from certain type of advertising. For
  example, it is now illegal to advertise
  cigarettes on television.
• When choosing which type of advertising to use, a
  firm will have to try and strike a balance
  between minimizing its costs and increasing its
  sales. It is very difficult for a firm to tell
  how effective its advertising is because
  consumers might buy the

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• product for reasons other than the advertising.
  Therefore, it is difficult to determine whether
  advertising has caused a change in sales. Firms
  also cannot tell easily which part of an
  advertising campaign is effective. It is
  sometimes said that half of all the money spent
  on advertising is wasted but nobody knows which
  half!
• However, successful advertising campaigns can be
  easily spotted. For example, in 1990, market
  research by crocodile Garments discovered that
  there was a big

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• market for fashions catering to career-minded
  women. They then released their Nine-to-Five
  collection of clothing specifically designed for
  the working women. At the same time, they
  released an advertising campaign to market this
  new line. This campaign was extremely successful.
  Not only did it result in better than expected
  sales, it also won many prizes for advertising
  excellence.

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Advertising agency

• There are very many advertising agencies in Hong
  Kong . Many of them are small , providing only a
  limited range of services. However , there are
  large , well-established advertising agencies
  which usually offer a full range of advertising
  service .These companies will normally be divided
  into six department

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• -----Account service department
• -----Media department
• -----Creative department
• -----Studio and production department
• -----Market research department
• -----Accounting and administration department

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Now , let us see the details of these department

• Account service department
• An advertising agency maintains an account for
  each of its clients . The account service
  department is responsible for looking after these
  accounts . It is headed by
• the director of account service with account
  executives serving under him . The account
  executives will look after the need of the
  clients , keeping in close contact with them and
  reflecting their wishes to other department of
  the agency .

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Media department

• The work of the media department is to buy
  advertising space for the advertisements of the
  client . They will need to be familiar with the
  cost of showing advertisements through the
  various media . They should also be able to
  advise the clients on which advertising media
  will be most suitable for their products and
  services .

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Creative department

• This department is responsible for creating the
  advertisement . Based on guidelines given by
  their clients , they will use their imagination
  to produce a concept of the advertisement . The
  department is headed by the creative director
  with copywriters , artists and visualizers
  working under him .

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Studio and production department

• When the creative department has created the idea
  for the advertisement , it will be presented to
  the client . If he is satisfied , the studio and
  production department will then physically
  produce the advertisement . This may involve
  taking pictures , recording music or even filming
  motion sequences in a studio or on location .
  when the final

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• advertisement is ready , it will be handed to the
  media department to be shown publicly .
  

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Market research department

• This department usually consists of a market
  research manager and market research executives .
  Their job is to collect information to help in
  the planning of advertisements for various
  products and services . Information on the
  potential market , how it can best be reached and
  who are competitors will be researched . In
  addition , the department will also carry out
  research on how

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• successful are the advertisements it has produced
  .
  
• Market research can be done in a lot of ways , do
  you realise any of them ?
  
• In the street or shop
• ----- Brief answer of yes or no type is
  obtained .
  
• At home by arrangement
• ----- Usually requires the whole family to be
  present , the questions are in greater depth .

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• Doorstep interviews
• ----- Questions are quite detailed . The district
  and type of house gives extra information .
  
• Blind sampling
• ----- A sample group of people is asked to taste
  different unmarked brands and to make
  comparisons between them .
  

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5.Consumer panels

• ----- A group of people sit together to discuss
  their opinion on a certain brand of product .
  
• 6.TV monitoring
• ----- Electronic monitors are put in a sample of
  viewers TV sets .
  
• These record which programmes are watched .
• Back to the departments again this is the
  last one .
  

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Account and administration department

• Account and administration department As the
  name implies , this department is responsible for
  the administration and financial matters of the
  company . This department will consists of clerks
  , typists , secretaries , and accountants .

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