18-10-2014, 04:23 PM
Define advertising.
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According to AMA(American Marketing Association) proposed the following definition for advertising "Advertising is any paid form of non personal presentation and promotion of ideas,goods and services by an identified sponsor".
define advertising agencies.
According to AA(American Association of Advertising Agencies)has given the following definition"Advertising Agency is an independent business composedof creative and business people who developed ,prepare and plays advertising media for sellers seeking to find customers for their goods or services".
What are the functions of advertising.
• Stimulates demand
• Strengthens other promotional mix elements
• Develop brand preferences
• Lower prices
• Competative weapons
what are the benefits of advertising,
• Information
• Brand image building
• Innovation
• New products launch
• Growth of media
List out the economic issues in advertising
1. Effects on consumer choice
• differentiation
• brand loyalty
2. Effects on competition
• barriers to entry
• economics of scale
3. Effects on product costs and price
• advertising as an expense that increases cost of products.
• increased differentiation.
What are the 3 methods used to compensate the agencies
• Commissions
• Negotiated fees
• Incentives
Define cooperative advertising
Cooperative advertising involves the sharing of the cost of advertising by two or more sponsors.