Underwriting, Advertisement & Publicity

Business Organization

Q._Write_a_short_note_on_'Underwriting'.

Ans._Underwriting_is_one_of_the_most_important_process_in_the_financial_World_wherein_an_Individual_or_an_Institution_undertakes_the_risk_associated_with_a_venture,_an_investment,_or_a_loan_in_lieu_of_a_premium.

E.g.__In_the_insurance_world,_underwriters_determine_whether_an_insurance_agency_should_undertake_the_risk_of_insuring_a_client._They_determine_the_risk_and_exposure_of_clients_and_also_how_much_insurance_should_be_granted_to_a_client,_how_much_they_should_pay_for_it_and_whether_or_not_to_offer_an_insurance_policy_to_the_client_in_the_first_place.

Q._Different_between_Advertisement_and_Publicity.

Ans._

Definition_of_Advertising

Advertising_is_one_way_public_communication_medium_that_conveys_a_message_about_a_product,_service_or_company_to_the_viewers_and_listeners._It_is_the_largest_marketing_tool_used_for_non-personal_promotion_of_goods_and_services_to_the_potential_customers,_however,_the_most_expensive_one._Advertising_is_a_sort_of_monolog_activity_done_with_an_aim_to_induce_customers_i.e._to_grab_the_attention_of_the_target_audience_in_such_a_manner_that_they_are_ready_to_buy_the_advertised_product._The_basic_objective_of_advertising_is_to_increase_the_consumption_of_the_product_of_the_sender_company._Most_of_the_company’s_use_this_sales_promotional_tool_because_of_its_reach,_a_single_message_can_reach_millions_of_people_in_nanoseconds._It_is_a_paid_announcement_by_sponsors,_which_can_be_done_with_various_mediums_like_radio,_television,_websites,_newspapers,_hoardings,_magazines,_social_media_like_Facebook,_etc.

Definition_of_Publicity

The_term_publicity_is_a_combination_of_two_words_public_and_visibility._It_refers_to_the_flow_of_information_or_fact,_regarding_general_awareness_about_a_subject_or_hot_topic_or_any_burning_issue._Here_the_subject_may_include_a_person,_product,_service,_business_entity_and_so_on._It_is_used_to_draw_the_attention_of_the_people,_for_any_subject_with_the_help_of_broadcast_media,_print_media_or_social_media._It_is_not_a_promotional_technique_and_thus_free_of_cost._Publicity_can_be_printed_or_just_aired._It_is_either_be_positive_or_negative,_but_it_is_true_and_real_as_well._It_is_an_entirely_unbiased_opinion_as_it_comes_from_an_independent_source_like_it_can_be_given_by_an_expert_or_a_common_man_or_mass_media._As_the_third_party_has_nothing_to_do_with_the_company,_their_responses_and_reviews_are_given_high_weight.

However,_it_can_be_seen_many_times_that_rivals_use_this_tool_deliberately_like_they_spread_false_rumors_to_injure_the_image_of_the_company_and_ruin_its_market_position_too._Positive_publicity_boosts_the_consumption_while_the_negative_hampers_the_same.