Q.How advertisement increases the cost?
🔒You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.
🔒 Start your 14-day free trial to unlock the full solution →Concept understanding — Advertising Definition Features
Advertising: Definition and Features
Think of the last time you saw a billboard, heard a jingle on the radio, or scrolled past a sponsored post on Instagram. That was advertising. But advertising is not just about selling soap or phones — it is a structured, paid form of communication designed to inform, persuade, and remind people about a product, service, idea, or even a cause.
What is Advertising? The Core Definition
At its simplest, advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. This is the definition you will find in your NCERT textbook (Class 12 Business Studies, Chapter 11: Marketing Management). Let's break that down into plain language.
- Paid form: Unlike publicity (which is free news coverage), the advertiser pays for the space or time — whether it is a newspaper column, a TV slot, or a YouTube ad.
- Non-personal: It is directed at a large audience, not a single person. There is no face-to-face conversation like a salesperson would have.
- Identified sponsor: You always know who is behind the ad. The brand name, logo, or company is clearly shown. This builds accountability and trust.
Advertising is not the same as personal selling or publicity. Personal selling involves direct, face-to-face interaction. Publicity is unpaid and not controlled by the sponsor. Advertising is paid, impersonal, and fully controlled by the advertiser.
Why Does Advertising Matter?
Advertising serves three main purposes in the marketplace:
- Informing: It tells potential customers about a new product, its features, price, and where to buy it. For example, a launch ad for a new smartphone.
- Persuading: It tries to convince people that this product is better than competitors' offerings. Think of ads that compare two detergent brands.
- Reminding: It keeps the brand in the customer's mind even after they have bought it. A classic example is Coca-Cola's holiday ads — they are not selling anything new, just reinforcing the brand.
Key Features of Advertising
Your NCERT textbook lists several distinct features that separate advertising from other marketing tools. Here they are, explained simply:
- Paid Communication: The advertiser must pay for the message to be delivered. This is the most fundamental feature. Without payment, it is not advertising — it might be publicity or word-of-mouth.
- Impersonal Presentation: There is no direct interaction. The message is broadcast to a mass audience through media like television, newspapers, radio, billboards, or the internet. The advertiser cannot adjust the message based on a single person's reaction.
- Identified Sponsor: The source of the message is clearly known. This is crucial because it allows the audience to hold the sponsor accountable for claims made in the ad. It also builds brand identity.
- Mass Reach: Advertising can reach a very large number of people simultaneously. A single TV ad during a popular show can be seen by millions.
- Creativity and Persuasion: Ads are designed to be attention-grabbing and persuasive. They use visuals, slogans, music, and emotional appeals to influence consumer behaviour. …
Advertising is a major criticism point because the large sums spent on it are added to the product's cost and ultimately recovered from buyers through higher prices. …
Advertising raises cost because the money spent on it is added to the product's price and borne by the consumer.
Firms spend large amounts on advertising their products. This advertising expenditure becomes a part of the total cost of the product. Since the firm recovers all its costs from sales, the advertising cost is ultimately passed on to consumers in the form of higher prices. This is a co …
Showing the 12 most recent of 24 on this concept.
- CBSE 2026Set MARCH1 markMCQQ.What can happen because of excessive advertisement expenses?(a) (A) It raises the price of the product(b) (B) The product becomes more attractive(c) (C) It improves the quality of the product(d) (D) The product is available everywhere
›Reveal solutionSolution
Excessive advertising expense raises the price of the product.
This GSEB Class-12 Commerce marketing question tests a criticism of advertising. Large advertising outlays are treated as part of cost; to recover them the seller raises the selling price, so the burden ultim …
- CBSE 2026Set MARCH1 markQ.____________ is unpaid form of communication.
›Reveal solutionSolution
Publicity is a non-personal, UNPAID form of communication about a product or organisation carried by the media. Unlike advertising, the firm does not pay for the space or time.
…
- CBSE 2026Set ANNUAL1 markQ.How advertising influences consumer?
›Reveal solutionSolution
Advertising influences consumers by creating awareness, informing them about the product's features and benefits, and persuading them to prefer and purchase it.
Advertising is an impersonal, paid form of communication about a product or service. It influences consumer behaviour in several ways:
- Creates awareness — it informs consumers about the existence of a product and new launches.
- Provides information — it explains the features, uses, quality and price of the product, helping consumers make choices.
- Persuades — through attractive, repeated and appealing messages it builds a favourable image and induces the consumer to prefer and buy the product. …
- CBSE 2026Set ANNUAL1 markMCQQ.Read the following statements- Assertion (A) and Reason (R) and choose one of the correct alternatives given below : Assertion (A) : Advertising involves transmission of standardised messages. Reason (R) : In advertising the cost per person reached is very low. (A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the right explanation of Assertion (A) (B) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the right explanation of Assertion (A) (C) Assertion (A) is correct but Reason (R) is incorrect (D) Both Assertion (A) and Reason (R) are incorrect
›Reveal solutionSolution
Both A and R are factually correct statements about advertising, but R explains advertising's cost-efficiency, not why its messages are standardised — so (B) is correct.
Checking Assertion (A): Advertising is a form of mass, non-personal, paid communication — the same message (text, visuals, tone) is transmitted identically to a large, dispersed audience through media like TV, print or digital, without tailoring it to any individual viewer. A is TRUE — this is in fact a defining feature of advertising.
Checking Reason (R): Because advertising reaches a very large audience simultaneously through mass media, the cost incurred per individual reached works out to be very low, even though the total advertising budget may be large. R is TRUE — this is also a genuine, well-known feature/advantage of advertising.
…
- CBSE 2026Set ANNUAL1 markMCQQ.Which of the following promotion tools can be used to reach masses?(a) Advertisement(b) Sales promotion(c) Personal selling(d) Public relation
›Reveal solutionSolution
Advertisement is the promotion tool best suited to reach the masses.
The promotion mix includes:
- Advertising — a paid, impersonal, one-way mass communication through media (TV, newspapers, radio, digital) — ideal for reaching very large and widely dispersed audiences quickly.
- Sales promotion — short-term incentives (discounts, contests) to boost sales, usually localised/time-bound, not mass-reach by itself.
- Personal selling — one-to-one, face-to-face communication between salesperson and customer; by nature, it can only reach a limited number of people, not the masses. …
- CBSE 2025Set ANNUAL1 markQ.How advertisement increases the cost?
›Reveal solutionSolution
Advertising raises cost because the money spent on it is added to the product's price and borne by the consumer.
Firms spend large amounts on advertising their products. This advertising expenditure becomes a part of the total cost of the product. Since the firm recovers all its costs from sales, the advertising cost is ultimately passed on to consumers in the form of higher prices. This is a co …
- CBSE 2025Set ANNUAL1 markQ.Write any one advantage of advertisement.
›Reveal solutionSolution
One advantage of advertising is its mass reach.
Advertising, through media such as television, newspapers and the internet, can carry a firm's message to a very large number of people spread across different places at the same time. This mass reach makes it possible to inform and persuade a wide audience quickly and at a …
- CBSE 2025Set ANNUAL1 markQ.State one point of difference between advertising and personal selling.
›Reveal solutionSolution
Advertising reaches a mass audience impersonally; personal selling is direct, face-to-face communication with an individual buyer.
Advertising is a paid, impersonal form of communication about a product/service directed at a large, anonymous audience through media such as television, newspapers, or hoardings — there is no direct, immediate interaction with each individual viewer. Personal selling, on the other hand, involves a salesperson communicating directly, face-to-face (or one-on-one), with a specific prospective customer, allowing immediate …
- CBSE 2024Set 66/1/11 markMCQQ.Beenu had a bookstore in Sabad called 'Book-mark'. For years, the bookstore was doing reasonably well but with the rise of digital books and online retailers, her sales had declined. Beenu's daughter, who had just completed her MBA with a specialisation in marketing decided to launch a marketing campaign to revive the bookstore. The campaign's focus was on the joy of reading books in physical form, the joy of turning pages and the warm atmosphere of the bookstore. She organised story writing and other competitions every weekend. The information of these was given to the parents and children through television, radio, children's magazines, etc. Attractive prizes were offered to the winners. This increased the footfall of the children and their parents and the bookstore soon became popular. The tool of communication used by Beenu's daughter to revive the bookstore was: (A) Advertising (B) Personal selling (C) Sales promotion (D) Public relations
›Reveal solutionSolution
The campaign used multiple promotional tools together, but the specific tool of communication that delivered the information about competitions and prizes to parents and children through TV, radio, and magazines is Advertising. The correct option is (A).
The Concept: What is a “Tool of Communication” in Marketing?
In marketing, a “tool of communication” refers to the specific method used to send a message from the business to its target audience. The four main tools in the promotion mix are:
- Advertising – Any paid, non-personal communication through mass media (TV, radio, newspapers, magazines, billboards, online ads). The business controls the message and pays for the space/time.
- Personal selling – Direct, face-to-face or one-on-one interaction between a salesperson and a customer.
- Sales promotion – Short-term incentives or activities designed to stimulate immediate purchase or action (discounts, contests, free samples, coupons, prizes). The focus is on inducing a behaviour.
- Public relations – Building a positive image and goodwill through unpaid or earned media (press releases, events, sponsorships, community activities). The business does not directly pay for the coverage.
The question asks: “The tool of communication used by Beenu's daughter to revive the bookstore was:” — meaning, which one of these four was the primary method she used to get the message across?
Step-by-Step Reasoning
1. Identify what the campaign actually did.
The campaign had two parts:
- Organising story writing and other competitions every weekend.
- Giving information about these competitions to parents and children through television, radio, children's magazines, etc.
- Attractive prizes were offered to the winners.
2. Separate the “tool of communication” from the “incentive”.
The prizes and competitions are a sales promotion element — they are short-term incentives to attract footfall. But the question specifically asks about the tool of communication used to spread the information. The information was delivered via TV, radio, and magazines. That is advertising — paid, non-personal, mass media communication.
3. Why not the other options?
- Personal selling – No salesperson went door-to-door or had one-on-one conversations with each parent. The message was broadcast to many at once.
- Sales promotion – The competitions and prizes are indeed sales promotion, but the communication of that promotion was done through advertising. The question asks for the tool of communication, not the promotional activity itself. …
- CBSE 2024Set 66/2/11 markMCQQ.'JKSD India Ltd.' recently introduced a new range of 'fresh from kitchen' jams, ketchups, salad dressings and peanut butter, etc. They appointed salespersons to contact prospective customers in leading malls to create awareness about their products and develop product preferences with the aim of making sales. Which tool of promotion is being used by 'JKSD India Ltd.' to market its products : (A) Advertising (B) Personal Selling (C) Sales Promotion (D) Public Relations
›Reveal solutionSolution
JKSD India Ltd. is using Personal Selling — a promotion tool where salespersons directly interact with prospective customers to create awareness, build preference, and close sales.
The question asks you to identify the promotion tool based on a specific business scenario. JKSD India Ltd. has launched a new product range and has appointed salespersons to go to leading malls, contact prospective customers, create awareness, develop product preferences, and ultimately make sales. This is a textbook case of Personal Selling.
Let’s understand why the other options do not fit.
Advertising involves impersonal, mass communication through media like TV, newspapers, radio, or online ads. The company here is not using any mass medium; it is using people to interact face-to-face.
Sales Promotion refers to short-term incentives or schemes to boost sales — like discounts, free samples, contests, or buy-one-get-one offers. While the salespersons might offer a taste or a discount, the core activity described is direct interaction with the aim of building preference and closing a sale, not a temporary incentive campaign.
Public Relations focuses on building a favourable image through unpaid, credible communication — press releases, events, sponsorships, or news coverage. There is no mention of any such activity here.
NoteIn the NCERT Class 12 Business Studies textbook, Personal Selling is defined as the oral presentation of a product in a conversation with one or more prospective buyers for the purpose of making sales. The key elements are: direct face-to-face interaction, two-way communication, and the ultimate goal of closing a sale. …
- CBSE 2024Set ANNUAL1 markMCQQ.Advertising and personal selling come under the ______ mix :(a) Placement mix(b) Promotion mix(c) Price mix(d) Product mix
›Reveal solutionSolution
Advertising and personal selling belong to the promotion mix, so the answer is (b).
The marketing mix has four elements — product, price, place (physical distribution) and promotion. The promotion mix (a sub-set of the marketing mix) is the blend of promotional tools used to inform and persuade customers: advertising, personal selling, sales promotion and publicity/public relations. Since advertising and personal selling are two of these tools, they come under the promotion mix.
…
- CBSE 2024Set ANNUAL1 markQ.Write answer in one sentence: What is written, printed, spoken and graphic salesmanship?
›Reveal solutionSolution
Written, printed, spoken and graphic salesmanship is advertising.
Advertising is an impersonal, paid form of communication by an identified sponsor to inform and persuade a large number of people about a product, service or idea. Because it can take written, printed, spoken (audio) or graphic (visual) f …
🎓Unlock everything free for 14 days
- ✓Full step-by-step solutions
- ✓Concept-first explanations
- ✓Methods, shortcuts & mistakes
- ✓PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.