Advertising - Any paid biin itf non-personal presentation and prornotion of

ideas, goods, or services by an identified sponsor.

C h a racteristb

sf advert{sirs-

Reaches large,

Geographicalty single

atdiarw,

Often with high frequency,

Low cost pcr rryosure, tholh sverall costs

high;

Builds branci image;

l\@' stirmrlrte short-term sdcs,

one-way.

ntgns{ffi
'' gIttuUtESDil
o SfiIEIIGTHEIIS OTffi?milOil

?l

ltllx

El"EltlEllTS

. FTELOPS BRAND PffiE

. GUllS COSTS - Mvertisirp lry f frfrfigttal in cutting dovvn
prq*iion and #ng costg k#tg wfr sales decrease unit costs
. L0frIS PRICES - In any nrtet basfl and cqnpetitive econoffiY,
whefi r* cost of e prortn gFes dctr+ tfiere are o<ternal and internaf
pres$res which ffipd conps*es b ffi prices to the adrantage of
cons$rus. This often leats to ffi'market penetration
. COMPETITWE WEAPTil
. Advertising is a managarent ftmction
. Advgtising rmnagernd is an insryarable part of the marketing
"departrnent

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I rr::rr 1 : ,!: r''1 i "'

advertising, namely 'aboveof

categories
key
two
are
There
tiii- ti n"' a nd' below-the-li ne''
,above-the-line, is any work done-involving media.where a

commissionistakenbygnadvertisingagency,and'belowwhLre a standard charge

the-tine, is ;il';;n" fot . client
advertising is 'above-the-line'
reptaces .o|nriiiiion, sg w
agenilffiitb*i io**"t ill time on behalf of a
since an

in a serie of local newspapers

ctient, but ptalidpn advert
tend to apply their
becaur"-n"*tpaPery
is,below-the-line,'
is taken by the
iorirmission
no
where
approactr
own costing
agensy

plasrlns

Adverrising

ffi
.

ug"

fo,r

rioir,i-addts the

?dYerfEns

31q
fgJlorUlng stages

advertising'

AUDIENCE?
Who is the potefrtial TARGET

'wH*fdolwishtocommunicatetothistarF
-,
audiene?
b $em?

,
.
,
.

Why'is'ttts ryq3g-I-so'IIIPOBT'ltrf
ar messry to'take?
what is *'G$T
Tril.'rrc?
what wJffiL"g* ;oo*
and monitor

ffig|l*rr
#Flate
o'ifrrrUsing
How d;-;fuOt

success?

Infotmative

afvs*lry:

where the
stagp of a product category'
pioneering
the
in
used
heavily
It is
aim is to build Primary dernand'

ad talks about how different

L)jata commercial, where tfte

it is from the age old "neel" bY talking

about its solution

7.

Fsys''*' -"

'

' '':"
contentts

:'

and showing how different Your clothes look

when washed with Uiala.

Petsuasive adveftising
It is generally

used when the product is in the competitive sFge, rvhere

particular
the cornpny's objective is to bsild selective demand for a
.

brand.

ivhirtpwl ice magic

and was the first

pffins itself as reiftg a quick icemaker

one of its kind

to use this as a mar*eting

platform

Hninfrdveil*sing:
It

is very importalt

Thsy

3 uss &cs t#i38 ** proert is in the maturity stage'

re intended to fltd pooplef'prr3*rcc

rffiffi
shosrn

up, cd<e,

ta

yo11. brand.

wst # all these ads no more are

create Afiarefr4g;

or persuasion

because people

are aheady awinte 6 #Eir presetqe and already have

just reminder
chosen the brand of tfieir choic. Ths'e are
ads

to keep the brart or tfie cofiWny fresh in the minds

of the consumers or have tlp brand top of mind.

Rei

nfioncement adveftisi ng :

HLL'I ad's

for

LUX

,LIRIL, REXONA

Classified Adveftisi n9,

This advertising gives information dissemination about
a sale.

TOI classified

*ction

Pr6motional Advstisi
Ttl*S

it
i:

ng :

3{vertising'informs an announcgment about a

sale.

F
!

ADlDAs.fierlngS0o/oDIwwTd'#}oes"

A&cacy A&crtisinlh
Thrs advertisirlg is used

b Ptslicize a particular cause.

All

tfe social ads fall into thii

Do

boofl Zindagi ki

category'

AIDS AWARENESS ADS by Maharashtra Govt.

National Advertising:
Advertising that is done in one nation only.
Dabur Ads or Nirma Ads

Local Adveftising'
Advertising that is carried out in a particular region or'
rnarkeL
BRtt

*rd AMRiLff4IuLIAN selecHl ffi

eampaign

dired,g! towards consumers ln $rtfi India '

Glolal Advetsifi$:
Adverssing that is carrted on.fol a company or

product globallY

I'm loving it was a global ad rcleased by McDonalds

g)N THE BASIS OF TARGET GROUP

l..rri:-r-a

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Consumer Adveftising'
Advertising that is directed towards the consumer
directly.

AttFMCGproductadslikeP&G,NESTLEetc'

Industria I Adve*isin g'

Advertising that is directed by Industri'al Gsods

l4anu@uref to his Filget

ryP'
sKF ffiRINGS d'tffit tlrcir #

in

fi#ffiral

Jwrnals to

TELCO CtC,

Trate Advertising'
pe of advertslrig, the ads are directed to the
Initiatw rather tfian ,the end user of the product'
llost Pfnrmaceuful Go{nrynies dired their ads in
Itdical fournats to hctors, who prescribe the
medicines fo the Patients'

Adveftising to business or profession

'fhis type of advertising is airned at resellers and professionals' The media
which are
direct mail or professional magazines: These are ads
used here is

not directed towards the final consumers

of ads. The target gurys of

corporate ads are also a pwt of these typ{t
are most often customers' stockholders, anployees'
corporate advertising

govemrnent' The objectives of the

financial institutions, political leaders and
or boost corPorate
or the institutional x$ may be to eg*lish
corporate

counter negative attittdes

identity and image,
=
or to

tosrr& s coltrPily' industry

, ^ ^.
+^
^--^hr'
sornc cli
to Gdtrr
the^ company
prorl* and.' relate
ry

srid publlic

group crryBlgn would frt into this

irterest causc. The rcent Aditya Birla

cory

iFn- Product adteftis*;r

depicting an ideq a social cause
In this type of advertising advertisemenB
also a part of strch non- product
etc is includ" Surrogate advertisements a:e
advertisements.

Brand adveftising'
up of a brand'
This advertising helps in the long-term build

It seeks 6tnrur. the buyers that they have made the right choice by
purchasing your brand.

Hamara Bajai advertisements make the owner of the two

wheelers of Baiaj proud of their possession by giving it a
patri oti c Pos iti o n i n g .

Stage in ttrc

pfoffi

life cycle: rpw products q/picafry

reeive large adreftising h$Ets

b fuiH iilv.if,eness ard b lrain

@rlsumers tslal.

Flarkert*re aild oulsumcrlllr tl= brands having a

f'rgfr rnaket shac 515lly re$rire tsrs

#ffifur

dwrfring

producBlrcbrard*rdsb

be

o<penditure

built requircs larger

adr,tdgrp exPenffir'l re.

Cmrpffition

1;j dttsr:

In

bda/s @frpetitive nxrket'

where there are a large nLFrFer d competitorS, a brand nrust

advertise heility to be herd"

A6ffiti$qg @uencln
to be made

put

irr6

the nurnber of repetitions that need

the brard message to consumers has an

impoftant impact on the adveftisirg bdget.

t
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t
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Product substitutability: brands in the commodity

class

For example,
require heavy advertising to establish a different image.

impohant when the

cigarettes, beer, soft drinks. Also advertising is
brand can offer unique phy$cal beneftts or features.

Consumer Adveftising
service advertisernenb
Tttese are basically nothing but product or
the consr.rtner or the customer as such'

ffied

tpidads

$$ advertHtnts cil be in the form d rgffial w locd

wes emoticnal or
a*rcrtisemerFdso.$.dr kind of adrertgr#F
rdisnal appeal Ft fre*r a/ArertisernerR

ffit#tr3ments sudt *

that

of De8ffs, LIC etc u*

tk

emffilatappeattoattrecttfieconsumerc.ontheother
as tfie Kawasaki baiai caliber'
vim Baretc use the rational ap4al to address ifs target
hand

ffitisements

such

audience.
'l'lre advertisement of DeBeers uses an emotional appeal because the
the ground except when I'm
statement "l have my feet firmly planted on
by wearing them u can fly
wearing the millennium diamond' suggests that

in the advertisement
high in rhe sky and feel like what urmita does

FFfs!-*qftjtt'ru"'s11'

:- ti'-\i'e^.''e

Rernihder Adveftising:
This advertiSing is highly important in the mature stage
of tfre product 1e k,egq the consumer thinking ahut the
product.
Fevicol campaigns act

ffi a reminder form of

advertising, bonding Fevicol w+th conswrlers as the strongest

Adhesive

A relaEcl form pf advertising is REIJIfORCEIEilT

ADVEffi:$iEIIEIIT, whicfr

ry
purcha*s that they have Fl*

F *suie curent
tfie right choice'

r'tmun suzuKl tG tell that $e coNsuMER is a part of

1,00, g(X) ha PPY custolrlers'

TyPGtsf

advsltdns*

In- hou* aoencigr

Some cornpanies, in an effort to reduce costs and
maintain greater control over agency activities, have
set up their own advertising agencies internally' An in-

houseagencyisanadagencysetuP,ownedald

IF.nr-'w-!tr$r*':*rr'

compa{lies use lnoperated by the.advertiser' Many

houseagenciesexclusively;otherscombinein-house
efforts with those of outside agencies'

Amajorreasonforusingin-houseagencyistoreduce
advertisingandpromotionalcosts.Companieswith
substantial
very tiarge drertising budgets pay a

amounttooutsideagEnciestntheformofmedia
structure, these
co'Tsnlsgbns. with al inter:nal
ad agency. An in-house
commissions go to sre h?-house

t:,*:::

lvork'
ad agency can also povide relatett
package design,
preser*ations and sales force matertd,

andp$ltcrelationsatalowerqflrantheouEkle
agPncies.

In-house agencies in India are:

l.Levers - Untas (PreviouslY)

2.Videocon

- Confidence

3.Rdiance

- Mudra (when Mudra started out)

Creattrye boutique
:

:ts

ti

is an agency that provides only

creative services, These sped*3gO companies' have

developcd in response to sotTt dlent,s desires to use
only the cFtFtive talent of an ouElde provider while
maintaining the other functbns internally'

The client may seek outside creative talent for two

reasonsI

l,Because he wantS an extra creative effort

z.May be because its own employees of the in-house

that he has appointed do
agency or the agency
not have sufficient skills in this regard'

[2-ry,q1.:;'.

Few

creative boutiques' in India:

1.RMG David

2.Vyas Gianetti Creatives

3.

ChloroPhYtl

Media buyrng agencies

re independent companies that

particularly radio and

specialize in tfie buyirE of mdla'
media
television. The task of purchasing advertising

media,
has gnown more cornptex as specialized

so

mediabuyingserviceshavefoundanicheby
purchase of the
specializing in the analysis and
advertisingtimeandspace.Agenciesandclients

generally develop their own media plans and then hire

the buying services to execute them

Some media buYing agencies

.Mindshare

2.Initiative

Mediia

3.Zenith Media

4.@timedia

5.Stafpm
6.Fulcrgr

Frd

- selvice#Y

The function of an advrti*qg agency is to see to it

$at

its

client's advertising leads tO grecter pnofu in $ tor run

than could be achieved wtttroryt fte ad agency' Most such
agencies are large in size and offbr their clients a full range
of services in the area Of marfteting, communications and

promotions. These include planning, creating and producing

the advertisement, media selection and research. Other
services offered include strategic marketing planning, sales

lftry. Jf1ryt4:!5.br-:.:..1:dr:i,

: :

:J,:.

iii

training,

Package

.design,

sales

promotion,

event

mana,gemnt, trade shows, PublicitY and public relations.

l.communication effct

@@'

it seeks to

determine whether an ad is comfnunicating

effectivbly" called py testing, it can be dofle before
an ad is ,put *flGo mdia and after it is printed or
broadcasted. There are three major methods of
ertising Pre-testing

1. ffi

rating method; in Stis ctxse' $e

are asked to rate Sre alternative ads'

"co-nqtnlilns
These ratFrgB 5r used'to evaluate the ads.

2. Po;4#Ofitf re$b: fr, the consumers are asked

to view tr listen to a prtfolio of advertisements,
taking 6s much as urne as they need. consumeE
ane then asked to recall all the ads and their
content, aided or unaided by the interviewer.

3. LabOratory te$sr

it

uses eguipment

to

measure

the physiolqgical reactions heartbeat, blood

pressure, pup\t dilation, perspiration to an ad '
These tests measure attention g$tting power but
reveal nothing about ttle impbA on beliefs'

at$$des, or it*Ensions'

trect
advertising I's #
rcGalc
ryh:
is g:nerally difficult to measune than its

Dct
2"SaF3 effest

comriffitioneffect.ThisismainlyHausethe
such as
sales are trilf,r'end] bv rnany drer factors,
the product ftatures, price, availability, as well

as

thecompetitor,sactions.Companiesaregenerally
interested in finghg out whether: they are
oveFpendirrgorur*dgspefidingonadvertising.

Attention

Intsest

DdC

Action

#beamdr

nffifit
proroscffit
Be

ilffiested

enough to pay

ffientiort'tlfe

procrct's

features/ffir "d
a

bencfr*Uq tfie prcduds #ringF'

Action, the foufth stage' rould oome as a natrral
Have a desire to

result sf

CRITICISM

mowrt

through

fte first three stagcs

Hierarchy of effecS ttt@.l

nis

been criticized on some points' such

asthatpeopledonotexactlyfollowthesesequel}ces
follwv a sertss of stages
People in all the cases may not stricsy
effiects rnodel' They fnaY in
as are explained in the hierarchy of

certain sihlations, &ecfiy junp

following the stagres h a logical

to a

particrdar stage' not

p#rn'

For e.g. a child acgnpanying

ndler

b a groery store is

liketytodemarrdaproductwittrq.tir*i$nginstageslike

r
beonrirg aware about it, being interes$d by
it. He maY just be lured ry the dsPH

ild spn hrying