ADVERTISING INDUSTRY CONTRIBUTION TO THE NATIONS ECONOMY, A CASE STUDY OF APCON
Chapter one
Introduction
Background to study
Advertising is a prominent feature of the Integrated Marketing Communication plan drawn by the marketing manager. Below are the various definitions attributed to advertising by scholars and authors:
“Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor” (Kotler, 1997).
“Advertising consists of all the activities involved in presenting to a group, a non-personal, oral or visual, openly sponsored message regarding a product, service or idea”. (Osuagwu, 2002).
“Advertising can be defined as “communicating a firm’s offer to advertising companies by paid media time or space” (Gerard, 1998).
“Advertising is any paid form of non-personal communication about an organization, product, service or idea by an identified sponsor” (George and Michael Belch, 1998).
“Advertising is a paid non-personal communication from an identified sponsor using mass media to persuade or influence an audience” (Wells, 2003).
Advertising differs depending on whether the target market is the consumer, middleman, industrial user or professional user
Kotler (1997), classified advertising based on it’s objectives.
Information advertising; which figures heavily in the pioneering stage of product category, where the objective is to build a primary demand.
Entertainment demographics (population in age groups that are the highest consumers of entertainment) are more acute indicators of the future of the entertainment business: North America has 65 million in that demographic, while China and India have almost 700 million. In India alone over the next 10 years, 40% of existing population will come from this demographic. The corresponding figure for the US is just 15% (Barathi et al. 2011). This statement sums up the potential of China and India in the media immersive world of today.
In the USA the creative industries led by Hollywood account for about $504 billion, or at least 3.2 percent of the U.S. goods and services (TAP, 2013). The developed nations spend between 0.8 per cent to over one per cent of their GDP on advertising with the US spending nearly 1.3 percent of it in India advertising was to supposed to be 0.55 per cent of the country’s gross domestic product by 2010 IBN (2007).
