Lesson 2

Question 1

Characteristics of Advertising

Answer 1

It is paid for
It is non-personal
Identifiable to a sponsor or organization
Takes any form of presentation
It is action oriented
Promotes goods services and ideas as well as events, parties, institutions and places

Question 2

Aims of Advertising

Answer 2

To inform prospective buyers and improve on existing ones
To maintain sales volume and market share in the face of intense competition
To create demand and expand market
Promote sale of goods and services
To create the good will of the firm
To improve dealer relations
To educate consumer on better behaviour
To communicate with consumers and to maintain loyalty of present and former consumers

Question 3

Functions of Advertising / Benefits of Advertising

Answer 3

Helps in introducing new products into the market
Helps to promote the scale of products and services by informing consumers
Educates people about new products
Helps in building up a reputation which is essential to the face of market
Facilities large scale production
Provides an important source of revenue for various mass media outlets
Encourages research and development
Provides employment without advertising products and services which could not be sold in large quantities
Has improved living standards of people by developing new and better ways of life

Question 4

Importance/ Benefits of Advertising to traders and Producers

Answer 4

Meeting the competition in the market thus helps in maintain sales and market share by creating brand loyalty
✓Creating a steady demand by churning out seasonal challenges and other fluctuations
✓Promotes higher sales volume
✓Creates demand and expands the market by enhancing sales
✓Introduction of new products
✓Simplifies tasks of sales force, makes it easier for traders because products/ service are already in the mind
✓Facilitates mass distribution of goods and reduces dependency on middlemen since dealers are more willing to sell the most advertised goods
✓Goodwill: creates a good image and reputation of the firm for it’s products and hence increases capacity to survive competition
✓Builds a good reputation of the firm and provides a sense of security to employees and psyches them up
✓Communication: Enables advertisers and traders to communicate effectively with consumers

Question 5

Benefits of advertisers to consumers

Answer 5

✓Fair prices
✓Education to consumers
✓Better quality
✓Convenience: reduces time
✓Consumer surplus

Question 6

Advantages of advertising

Answer 6

✓Offers direct employment to large numbers
✓Improves living standards by promoting variety and quality in consumption
✓Sustains the price
✓Promotes research and development
✓It is an incentive of progress ; a great motivating force
✓Promotes creative energy of people

Question 7

Disadvantages of advertising

Answer 7

✓Expensive; large amounts of money is spent on creating and distributing adverts
✓Wasteful expenditure; multiplies the needs of the people and encourages unhealthy consumption
✓Misleads customers; most adverts are deceptive and manipulative thanks to misinterpreted and exaggerated facts by bogus testimonials and false comparison to buy goods of doubtful value
✓ Creates monopoly or a brand reference
✓Undermines social values through photographs and indicent language
✓ Wasteful of receives; producer like creating trivial differences in their producers

Question 8

Causes of failures in Advertising

Answer 8

1.Not carefully investigating marketing dynamics
2. Failure of unoutlined work performed by products advertised
3.Lack of co-ordination on the paths of various departments
4. Inconsistent policy
5. Lack of plan in an advertising campaign
6. Not following a plan for the advertising campaign
7. Lack of cooperation and unity of staff
8. Poor execution of adverts
9. Pushing sales for defective adverts
10. Untimely or seasonal adverts
11. Covering a large area without proper planning and sales distribution

Question 9

Advertising Process

Answer 9

1. Briefing
2. Objectives
3. Research
4. Target audience
5. Media selection
6. Setting the budget
7. Designing and creating an advert
8. Perfection
9. Place and time
10. Execution
11. Performance

Question 10

Full service agencies functions

Answer 10

1. Account managing
2. Creation production
3. Media planning and buying
4. Research services

Question 11

Interactive agency functions

Answer 11

1. Attracting clients; seek attention by offering services
2. Research function ; gathers information concerning products and clients , advantages and limitations market policy and competition
3. Advertising planning
4. Creative function
5. Monitoring feedback
6. Media selection
7. Advertising budget

Question 12

Advantages of an advertising agency

Answer 12

1. Invaluable experience to the advertiser
2. Advertiser learns lessons
3. They employ specialist in various agencies of preparations and implementations
4. Are offered discounts by the media
5. An agency can do more for the same amount in planning

Question 13

Guidelines for working with an agency

Answer 13

1. All information should be given all possible information if good services are expected from it
2. The client should keep the agency on toes
3. The agency should be challenged to produce quality
4. Criticism should be done favourable
5. Agency should be paid extra if it does any extra work
   6.The advertiser should examine work to get new ideas
6. Should appoint an independent person to liase with agency

Question 14

How agencies loose clients

Answer 14

1. Poor performance services
2. Poor communication
3. Unrealistic demands
4. Personality conflict
5. Personnel changes
6. Conflict of interest
7. Changes in clients, cooperate or marketing strategy
8. Changes in size of client and agencies
9. Declining sales
10. Conflicting compensation philosophy
11. Changes in policy

Question 15

How agencies gain clients

Answer 15

1. Referrals
2. Solicitations; gaining clients
3. Presentation
4. Public relations
5. Image and reputation