Thursday, February 21, 2013

Distribution refers to the process of storing and moving products to customers, often through intermediaries such as wholesalers and retailers. 

It refers to publishing a product in order to create, maintain or expand its market. It is a written or visual presentation of the product. 

Purpose of Advertising 
The main purpose of advertising is to increase demand for the advertised product. It also helps the firm to; 
  1. give information to customers 
  2. create a goodwill 
  3. encourage and help intermediaries 

Advantages of Advertising 
  • It increases sales 
  • It stimulates production 
  • It increases employment opportunities 
  • It helps consumers 
  • It ensures better quality of goods 
  • It creates goodwill 

Types of Advertisement 

1.Persuasive Advertisement 
It encourages people to purchase a particular brand of products. It is aimed at capturing the market of its substitute products. Most advertisements are of this nature. Examples; Coca Cola, Dhiraagu, Anchor Milk etc. 

2.Informative Advertisement 
It is designed to give information which is of benefit to the firm, consumers or the government. Examples; Availability of Sugar from a shop, Changes in income tax rates, the danger of smoking cigarettes etc. 

Media of Advertisement 

1. Television 
  • It is the most effective media of advertising 
  • It shows both message and pictures 
  • It reaches several million people 
  • It is very expensive 

2. Radio 
  • It entertain people through music, dialogue, songs and interviews 
  • It reaches most homes in the country 
  • It is less expensive 
  • It gives only sound 

3. News papers and Magazines 
  • It is less expensive 
  • Advertisement can be kept by the reader for future reference 
  • It is not suitable for timely advertisements 

4. Posters, painted displays and electric signs 
  • It is very effective when located in a suitable place 
  • It is relatively cheap 
  • It is powerful enough to stimulate immediate action 

5. Circulars 
  • It is a document which circulates the advertisement 
  • It reaches several hands 
  • It can be kept for future reference 

6. Exhibition 
  • It brings immediate effect 
  • It is relatively cheap 

7. Own fleet displays 
  • It is a free advertisement 
  • It moves and reaches several customers 
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