Discuss the types of advertising on the basis of effects on demand.

Ans.

Types of Advertising on the Basis of Effects on Demand

Types of advertising on the basis of effects on demand is a customer oriented advertising. It is to promote demand of the product.

On the basis of effects on demand advertising can be of the following types –

1. Pioneering Advertising or Primary Demand Advertising: This type of advertising affects the demand for a type of product and not a particular brand. Primary demand advertising refers the demand of a class of product and not the demand of a particular brand in the class of product.

Example – Advertising for eggs by Eggs Co-ordination Committee is primary demand advertising.

Merits – These are as under:

(i) Stimulation of Overall Demand: Pioneering advertising or primary demand advertising stimulates the overall demand of the product.

(ii) Useful in Introducing New Product: Primary demand advertising is most useful when a new type of product is launched or when product is in its introductory stage.

(iii) Creation of Permanent Demand: Primary demand advertising is helpful in creating permanent demand in the near future.

2. Competitive Advertising Selective Demand or Advertising: When an advertiser follows such type of advertising, he attempts to establish a differential advantage. He seeks to acquire an accountable share in the marketing. Selective demand advertising is to stimulate the demand for a particular brand in a class of product.

Example – Advertising for stimulating or creating demand for Pan Parag Pan Masala, Rin Washing Powder etc.

Merits – These are as under:

(i) Advertiser stimulates demand for the brand by featuring superior characteristics of the brand.

(ii) It affects total demand for the product class which the advertiser’s brand falls.

3. Individual Advertising: When advertising is done by an individual company, it is said to be an individual advertising.

4. Co-operative Advertising: When business concerns jointly sponsor and share the expenditure of advertising, it is called co operative advertising. Co-operative advertising carries the names of all the firms.

Co-operative advertising can be of the following types –

(i) Horizontal Co-operative Advertising: It occurs when firms carrying on the some activities advertised jointly. Expenditures are shared by those who are benefitted.

(ii) Vertical Co-operative Advertising: It takes place when firms distributional channel take advertising jointly.

Merits of Co-Operative Advertising: These are as under –

(i) It increases the primary demand for a product.

(ii) It is in the interest of manufacturer and wholesaler to promote the product to retailers.

5. Display Advertising: This type of advertising provides detailed information regarding the product and producer. It is published in attractive way on full or half or quarter or a certain part of page.

6. Classified Advertising: Publisher print are type of advertisement at one place in newspaper or magazine, provided for the purpose. They are regularly published at the same page.

Example – Advertisement in Times of India under the captions ‘For Sale’, Situations vacant etc.

7. Direct Action Advertising: It persuades or stresses for immediate buying. It is suitable for consumer goods.

Examples – Coupons, retail message, request consumers to buy, etc.

Merits – These are as under-

(i) Advertiser may achieve immediate action to a large extent.

(ii) It generates immediate response and induces to order at once.

8. Indirect Action Advertising: Indirect action advertising is done for higher priced goods which are not bought frequently e.g. car, refrigerator etc. Such type of advertising does not create. immediate response.

Merits – These are as under-

(i) Indirect action advertising creates favourable attitudes towards the manufacturer and his items.

(ii) Exposure, attention etc. of the advertisement provide benefits.