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SS2 Commerce

Advertising in Commerce

Transcript

00:00 Hello, good day, my name is Ms. Lydia and welcome to our Commerce Class today.

00:15 Today we will be treating topic advertising and at the end of this class, I expect you

00:21 to be able to state the meaning of advertising, discuss the role of advertising in business

00:25 and commercial activities, animate the different types of advertising, the different scenes between

00:31 direct and indirect methods of advertising, and finally, list and describe each of the

00:36 advertising media.

00:39 Now, advertising may be defined as any paid form of non-personal communication, which

00:47 is directed to the customers or target audience through various media in order to present

00:54 and promote products and services.

00:56 It is an intentional influence on customers or clients buying decision as regards a particular

01:04 product or service.

01:05 Now the main aim of advertising is to target new customers, to get new customers to buy

01:11 a particular product and this is usually done through targeted ad campaigns.

01:17 Now, advertising is also a branch of commerce and it is used to create awareness like we said

01:23 and the definition is used to create awareness for various products and services and most

01:28 of the time it is usually used for new products.

01:32 Now, what is the role of advertising?

01:36 Advertising increases and stabilizes sales turnover because as a result of advertising more

01:42 people are able to know about the product, maybe people are able to hear about the availability

01:47 of the products in the market so it attracts new customers.

01:52 Which in turn leads to high sales turnover.

01:55 Now, it is also used to introduce a new product, like we said while defining it that one

02:02 of the main aim of advertising is to get new products to the market for people to be able

02:07 to be aware of that product.

02:10 So one of the major roles of advertising is to inform the public about the existence of

02:15 new products in the market.

02:20 Then also place the role of creating demand for a particular product by reminding targets

02:26 customers about the availability of such products.

02:29 It also builds value, brand preference and loyalty for a product.

02:36 Then advertising educates people on the uses of a product.

02:40 It is educates consumers on the benefits that can be derived from the usage of a product.

02:45 I mean, while advertising, they don't just tell you, "Hey, this or this is available to

02:51 tell you, okay, this is what it is used for and this is how it can be of benefit to you

02:57 the consumer."

02:58 Now, let's discuss the types of advertising.

03:01 There are various types of advertising but there are about four major types.

03:06 So let's take them one by one.

03:09 We have informative advertising.

03:11 Now, this type of advertising is usually used for new products and it is used for introducing

03:16 brand new products to the market.

03:19 It is aimed at giving information that would let consumers or clients or the general public

03:28 to know about the uses of a product about, "Okay, here, this is something new, it is coming

03:33 to the market to create awareness to the public."

03:36 Also as they understand, "Okay, it is available and they know the benefits and the uses of such

03:41 products."

03:42 Then we have persuasive advertising.

03:44 Now, this type of advertising is usually emotional in nature and it tries to persuade customers

03:50 to buy a particular brand of products and they, while advertising, this type of advertising

03:56 focuses on telling you that, "Okay, brand A is better than brand B."

04:00 In terms of quality, in terms of uses, in terms of benefits, brand A is better than brand

04:10 B.

04:11 It persuades you to make sure you buy the products.

04:16 Then we have competitive advertising, quite similar with persuasive advertising is the

04:21 type of advertising that aims at making customers buy a particular brand.

04:27 They help you see a brand's feature and tell you that it is better than the other.

04:33 It is good for this type of advertising, it is good for products that are close substitutes.

04:39 For example, Milo and Bombita, I tell you, "Okay, Milo is better than Bombita or Bombita

04:43 is better than Milo."

04:45 This is the type of advertising.

04:47 Then we have mass and specific advertising.

04:50 Now, this type of advertising is not necessarily aimed at use for similar products for manufacturers

04:56 of the same commodity they jointly come together is when manufacturers of the same commodity

05:01 jointly come together to publicize their products.

05:04 No particular brand is usually stated in this type of advertising and this type of advertising

05:09 is usually done to reduce the costs of advertising.

05:15 Now this type of advertising, the specific advertising, provides information specially on some

05:21 lines of particular brand, which is unique in nature.

05:28 Now let's look at the methods of advertising.

05:30 There are two major methods of advertising which are direct advertising and indirect advertising.

05:36 Now let's take them one by one.

05:37 For direct advertising it is a method in which is aimed at providing information to ex-section

05:43 target market segments or a group of people with similar needs.

05:47 Now, for example, when you see an advert about a book on TV, you know that this is targeted

05:57 at readers, targeted at students, when you see an advert about hospital beds or hospital

06:03 drips or whatever, you know that this particular type of advert is targeted at hospital.

06:08 This direct advertising is not for the general public.

06:14 They have a group of people that are trying to push their products to hence the need for

06:20 direct advertising.

06:21 Then we have indirect advertising.

06:23 Now this type of advert is the opposite of direct advertising.

06:30 It is not aimed at a particular set of people or a particular group.

06:35 It is aimed at the public at large.

06:38 It is aimed not aimed at providing information to a specific section or group but to all categories

06:45 of people.

06:46 For example, Milo or Chivita drink.

06:52 Of course, not just young people take Chivita or not just old people take Chivita.

06:57 Everybody takes Chivita.

06:58 So, this type of advertising is indirect.

07:02 Let's discuss advertising medias now.

07:05 Advertising medias refers to various media channels, through which advertising is done.

07:10 Advertising media is used for showcasing promotional content which is communicated in various

07:16 forms, such as we have the press, we have television, we have radio, we have the cinema, we

07:24 have hand fliers and handbills, we have billboards, we have catalogues, we have exhibition and trade

07:31 fliers, these are various media platforms through which advertisements is done.

07:38 Now, what are the merits or advantages of advertising?

07:44 Now, advertising creates job opportunities.

07:48 Just like every other commercial activity, it creates job opportunities to do in that

07:54 field.

07:55 Then it provides adequate information about the features of a product.

07:59 You know, they don't just advertise or tell you that, okay, this product is available to

08:02 tell you what it is used for, the features, the benefits and advantages of using such

08:08 products and how to use it as well.

08:10 Then it increases sales which in turn leads to higher profits.

08:15 Because many more people have gotten to know about this particular product and so it's

08:20 in turn increases sales for the company of which is the major aim of advertising anyway.

08:25 Then it provides information about the existence of goods and services.

08:32 Now, a company cannot just go into the market and release a particular product without letting

08:36 the public be aware to be aware about this particular product.

08:40 There has to be, advertisement has to be done for people to know, okay, such so so product

08:45 is available.

08:47 It improves the quality of goods.

08:50 Now, let's go ahead and discuss the merits of advertising.

08:55 One can be false and misleading because there are many dishonest marketers in the market

09:00 so they tend to tell us what a product can do and at the end of the day it is not true.

09:07 Then it interferes with customers' free choice.

09:10 Like persuasive method of advertising, they persuade you they convince you that you

09:15 should be a particular brand or a particular product is what you need.

09:19 Meanwhile, a consumer has another product in mind, hence they are unable to freely decide

09:27 because consumers are unable to freely decide on what they actually want.

09:31 Then advertising attracts high costs to carry out.

09:35 Also, it encourages many brands which may lead to indecision amongst customers.

09:41 Now, advertising does not discriminate which brand to advertise or which product to advertise

09:46 although they may be but do not discriminate between brands.

09:51 Hence, the consumer is open to so many choices which could lead to indecision.

09:57 Now, let's discuss on consumer protection in advertising.

10:02 Now, to protect consumers from dishonest marketers or from fake goods in the market, a restriction

10:09 is placed in various media.

10:11 Now, some voluntary and statutory systems of control can be applied and some of them are

10:16 code of advertising practice.

10:18 Now, this code must be accepted by all organizations operating in the advertising media.

10:25 Now, for the advertising code usually covers public decency that is what way, like how is

10:33 this method being passed across?

10:35 Indecency, exploitation and superstition that is a product should not be, should not mislead

10:42 consumers in any way.

10:45 Then misleading descriptions and claims, then too.

10:49 We have establishment of advertising practitioners in Nigeria.

10:53 Now, this is a body that is concerned with the overall regulations and conduct of advertising

10:58 in Nigeria.

10:59 So, under this advertising practitioners we have the AAPN which is the association of advertising

11:07 practitioners in Nigeria.

11:09 Now, they are a member of this body.

11:13 Then we have an establishment of a professional group like we discussed in the previous slide.

11:20 The AAPN was established in Nigeria, they are a professional body.

11:24 So, they were established in Nigeria to regulate the practices of advertising media that is

11:31 TV, radio stations and all that.

11:33 So, a code of members and a code of standards is relating to advertisements in medicine and

11:39 treatment have been developed to put in place and put in place for practitioners.

11:46 Then we have statutory control.

11:48 Now, there are many acts of parliament restricting or controlling particular aspects of

11:54 advertising and some of these acts that have been passed into law are Trade Description Act

12:00 of 1968.

12:01 We have the sales of goods act of 1893.

12:04 We have in descent advertisement act of 1889.

12:08 We have copyright act of 1956.

12:12 We have obscene publication act of 1959.

12:14 We have the advertisement act of 1967.

12:18 Now, all these laws are passed to be able to protect consumers.

12:23 Now, we have come to this end of this class, but before we go on, I would like us to take

12:28 a look at the following evaluation questions.

12:30 On sheet of paper, I will turn one beside you, discuss these questions.

12:35 Now, for number one, explain the meaning of advertising doesn't have to be according

12:39 to what I said, but in your own, according to your own understanding after this class.

12:43 Then mention the two rules of advertising, describe the methods of advertising, mention

12:49 four medias of advertising, list and explain consumer protection in advertising.

12:57 Now, we have come to the end of this class.

13:00 Thank you for watching.

13:01 I remain your comments teacher, Miss Lydia.