Advertisement – meaning & definition

Advertising is nothing but a paid form of non-personal presentation or

promotion of ideas, goods or services by an identified sponsor with a view to
disseminate information concerning an idea, product or service. The message
which is presented or disseminated is called advertisement.
According to Wheeler, “Advertising is any form of paid non-personal
presentation of ideas, goods or services for the purpose of inducting people to
buy.”

According to Richard Buskirk, “Advertising is a paid form of non-personal

presentation of ideas, goods or services by an identified sponsor.”

The main features of advertise are as under:

 It is directed towards increasing the sales of business.
 Advertising is a paid form of publicity
 It is non-personal. They are directed at a mass audience and nor at the
individual as is in the case of personal selling.
 Advertisement are identifiable with their sponsor of originator which is
not always the case with publicity or propaganda.

Objective / Functions of advertising

The purpose of advertising is nothing but to sell something -a product, a service

or an idea. The real objective of advertising is effective communication between
producers and consumers. The following are the main objectives of advertising:

Preparing Ground for New Product

New product needs introduction because potential customers have never used
such product earlier and the advertisement prepare a ground for that new
product.

Creation of Demand
The main objective of the advertisement is to create a favorable climate for
maintaining of improving sales. Customers are to be reminded about the product
and the brand. It may induce new customers to buy the product by informing
them its qualities since it is possible that some of the customers may change
their brands.

Facing the Competition

Another important objective of the advertisement is to face to competition.
Under competitive conditions, advertisement helps to build up brand image and
brand loyalty and when customers have developed brand loyalty, becomes
difficult for the middlemen to change it.

Creating or Enhancing Goodwill: Large scale advertising is often undertaken

with the objective of creating or enhancing the goodwill of the advertising
company. This, in turn, increases the market receptiveness of the company’s
product and helps the salesmen to win customers easily.

Informing the Changes to the Customers

Whenever changes are made in the prices, channels of distribution or in the
product by way of any improvement in quality, size, weight, brand, packing,
etc., they must be informed to the public by the producer through advertisement.

Neutralizing Competitor’s Advertising

Advertising is unavoidable to complete with or neutralize competitor’s
advertising. When competitors are adopting intensive advertising as their
promotional strategy, it is reasonable to follow similar practices to neutralize
their effects. In such cases, it is essential for the manufacturer to create a
different image of his product.

Barring New Entrants

From the advertiser’s point of view, a strongly built image through long
advertising helps to keep new entrants away. The advertisement builds up a
certain monopoly are for the product in which new entrants find it difficult to
enter.

In short, advertising aims at benefiting the producer, educating the consumer

and supplementing the salesmen. Above all it is a link between the producer and
the consumer.

Benefits or Importance of Advertisement

Advertising broadens the knowledge of the consumers. With the aid of

advertising, consumers find and buy necessary products without much waste of
time. This speeds up the sales of commodities, increases the efficiency of labor
in distribution, and diminishes the costs of selling. It is an accepted fact that
without market stimulus of heavy advertising, consumers might have waited
another sixty years for the product evaluation that took place in less than ten
years – it took after all over sixty years from the invention of the safety razor
before the first acceptable stainless steel blades appeared in the market. These
words are more than enough to testify the potentialities of advertising in the
field of modern marketing system. The main benefits of advertising may be
narrated as follows:
 Benefits to Manufacturers
 It increases sales volume by creating attraction towards the product.
 It helps easy introduction of new products into the markets by the same
manufacturer.
 It helps to create an image and reputation not only of the products but
also of the producer or advertiser. In this way, it creates goodwill for the
manufacturer.
 Retail price, maintenance is also possible by advertising where price
appeal is the promotional strategy.
 It helps to establish a direct contact between manufacturers and
consumers.
 It leads to smoothen the demand of the product. It saves the product from
seasonal fluctuations by discovering new and new usage of the product.
 It creates a highly responsive market and thereby quickens the turnover
that results in lower inventory.
 Selling cost per unit is reduced because of increased sale volume.
Consequently, product overheads are also reduced due to mass production and
sale.
 Advertising gives the employees a feeling of pride in their jobs and to be
in the service of such a concern of repute. It, thus inspires the executives and
worker to improve their efficiency.
 Advertising is necessary to meet the competition in the market and to
survive.
Benefits to Wholesalers and Retailers
 Easy sale of the products is possible since consumers are aware of the
product and its quality.
 It increases the rate of the turn-over of the stock because demand is
already created by advertisement.
 It supplements the selling activities.
 The reputation created is shared by the wholesalers and retailers alike
because they need not spend anything for the advertising of already a well
advertised product.
 It ensures more economical selling because selling overheads are
reduced.
 It enables them to have product information.

Benefits to Consumers
 Advertising stresses quality and very often prices. This forms an indirect
guarantee to the consumers of the quality and price. Further large scale
 production assumed by advertising enables the seller to seller product at a lower
cost.
 Advertising helps in eliminating the middlemen by establishing direct
contacts between producers and consumers. It results in cheaper goods.
 It helps them to know where and when the products are available. This
reduces their shopping time.
 It provides an opportunity to the customers to compare the merits and
demerits of various substitute products.
 This is perhaps the only medium through which consumers could know
the varied and new uses of the product.
 Modern advertisements are highly informative.

Benefits to Salesmen
Salesmanship is incomplete without advertising. Advertising serves as the
forerunner of a salesman in the distribution of goods. Sales is benefited the
advertisement in following ways:

 Introducing the product becomes quite easy and convenient because

manufacturer has already advertised the goods informing the consumers about
the product and its quality.
 Advertising prepares necessary ground for a salesman to begin his work
effectively. Hence sales efforts are reduced.
 The contact established with the customer by a salesman is made
permanent through effective advertising because a customer is assumed of the
quality and price of the product.
 The salesman can weigh the effectiveness of advertising when he makes
direct contact with the consumers.

Benefits to Community or Society

 Advertising, in general, is educative in nature. In the words of the late
President Roosevelt of the U.S.A., “Advertising brings to the greatest number of
people actual knowledge concerning useful things: it is essentially a form of
education and the progress of civilization depends on education.”
 Advertising leads to a large-scale production creating more employment
opportunities to the public in various jobs directly or indirectly.
 It initiates a process of creating more wants and their satisfaction higher
standard of living. For example, advertising has made more popular and
universal the uses of such inventions as the automobiles, radios, and various
household appliances.
 Newspapers would not have become so popular and so cheap if there had
been no advertisements. The cheap production of newspapers is possible only
through the publication of advertisements in them. It sustains the press.
 It assures employment opportunities for the professional men and artist.
 Advertising does provide a glimpse of a country’s way of life. It is, in
fact, a running commentary on the way of living and the behavior of the people
and is also an indicator of some of the future in this regard.

Advertisement copy - meaning

An advertisement copy is the ideas and message content which are reached to
the viewers. The ad copy refers to all reading matter of an advertisement
including the headline, subheads, texts or body. An advertiser or a copy writer
should sacrifice a lot of time in making a copy. Advertising copy must arrest,
inform, impress and impel the reader.

Advertising copy is the sum of all the elements of a creative work. These are
elements annex to produce a ready-to-disseminate advertising message. The
elements that make up a copy include: Headlines, sub-headline, text, pictures,
sounds, and every other thing that would make the success of the advertising
campaign; be it, electronics, print or social media

A well defined advertising copy must perform the following functions:

(AIDIA)
(a) Attract Attention

(b) Command Interest

(c) Create Desire

(d) Inspire Conviction

(e) Provoke Action.

Elements of an Advertising Copy

There are Seven (7) basic elements of an advertising copy. Some advertisement
may contain almost all or while some may contain two or three elements, the
most important to the copy, is its ability to deliver and get desired result. As
said elsewhere, no rules guide the application or usage of copy elements; it is
solely the creative responsibility of the copy writer to determine that. The
followings are the basic elements of an advertising copy, these are: 1. The
headline 2. The sub-head 3. The body copy 4. The caption 5. The blurb of
balloon 6. The box and panels 7. Slogans, logotype and signature.
1. The Headline: This is the first copy interface which anyone would come in
contact with, it is usually written in large type face. Also referred to as caption,
the headline is designed alongside a catchy illustration to capture and attract
attention to the advertisement. It drives prospective buyers to further investigate
the brand.
2. The Sub-Head: This goes after the headlines often, sometimes some copy
writers, display the subhead first before the headlines, this is basically for a
purpose which they deemed would drive in audience to the entire copy. The
subhead is written in a smaller type face lesser than headlines but larger than the
body text.
3. The Body Copy:This is the illustration text, always in the smallest type face
in the copy than the headline and the subhead. The body copy explains a brand
in a few and concise but creative words that stick faster in the mind of the
audience. It explains a brand in the best possible ways.
4. Captions: These are written in a smaller type face than the body copy to
represent sales points by illustrating and explaining them at the same time.
Captions are less important to the main selling points in the advertisement than
the body copy
5. The Blurb or Balloon: This is term used in advertising to represent that the
illustration of an advertising copy is coming out from mouth of one of the
characters used in the advertising campaign. At times they are used as headlines
and displayed in large size.
Box and Panels: These are elements in a copy which display unique and
special information other than those already displayed by the advertisement.
They are use in such features as coupons, special offers and contest rules
7. Slogan, Logotypes, Trade – Mark and Signatures: These elements often
show themselves in every advertisement. They are companies identifying tags;
they differentiate one organization from another especially when they offer
competitive brands. For instance: MTN, GLOBACOM, ETISALAT, and
AIRTEL, all these organizations offer telecommunication services, if they have
none of these elements, they might just confuse customers in a bid to identify
with their preferred brand.

CLASSIFICATION OF ADVERTISEMENT COPY

It is true that copywriting is an art and the copywriter has a very important role
to play in advertising creativity. Copywriting does not admit any stereotyped
rules and classification. There are various styles in which a copy can be
prepared and presented. The following types of copy may be studied-

1. Descriptive Copy – This type of copy describes the pertinent and relevant

characteristics features of the product. It is very simple and of non-technical
nature. It does not have any specialty which can attract the attention of the
target consumers or may compel them to read it. It is very much similar to a
press account or news item simply giving relevant information to the public
without any stylish touch
2. Scientific Copy – Such types of copies are technical in nature and generally
used by drugs and pharmaceutical firms elaborating the propositions of
properties and constituents of the product. It provides full information about the
product and the producer. This type of copy is usually meant for professional or
for those who are really interested in such types of information.

3. Institutional Copy – Institutional advertisement copy aims at selling the

name of the advertiser or the institution that is producing or selling the products
or services. The main objective of such type of advertisements is to create,
maintain or increase the goodwill of the product or of brand or of the
department or of the selling house as a whole, Institutional copy invites the
target consumers to the selling outlet. Such a copy seeks to build goodwill
through publicizing the policies, customer services, Conveniences and general
features of superiority of the store over the rivals.

4. Topical Copy – Herein and attempts is made to appeal to the general public

by linking the theme of the copy with some current event but it should not look
absurd. It commands a good deal of interest because of that sensational event
which lives in the minds of the public.

5. Reason why Copy – This type of advertisement copy offers the readers

reasons why they should buy the advertised goods. It narrates the positive points
of difference from other brands of the same product category in an endeavour to
convince the reader from product’s qualitative aspect. It directs its appeal to the
intellect or judgment rather than to emotions or senses. It substantiates the
superiority of the merchandise with the tests performance. Records testimonials,
guarantees or construction data.

6. Human Interest Copy – It makes its appeal to the emotions and the senses
rather than to the intellect and judgment. Sympathy fear, bonus, curosity and
other emotional appeals like appeals to the senses of sight hearing touch taste,
and smell are used in such type of copy. Human interest copy presents the
product in relation to people instead of confirming to facts about product. As
emotions are many and always new it may be made more exciting an artful than
reason why copy. It affords a refreshing change. Human interest copy can take
various forms:-
 Humorous Copy - It exploits the sense of humor of the people. It turns
the reader laughter. All examples and statements in such copy are fully to make
the reader smile.
 Fear Copy - It appeals to the sense of fear and arouses the interest of
people to save their lives, properties and other belongings. Such copy of
advertisement should be drawn carefully so that it may not carry an unpleasant
association of readers’ minds with the advertiser’s product of business Lifer
Insurance Corporation General Insurance Companies and Bank generally use
this type of copy.
 Story Copy - In such a copy a story is narrated me a very interesting
manner to create manner to create an impression in the minds of the people
about the product. Its ability to create interest depends upon dramatic impact it
produces. Experience of customers can also be narrated in the story.
 Predicament Copy – It is often used to advantage when it shows an
article of merchandise in a case that provides a dramatic explanation of its
advantages. Predicament copy usually overlaps the other three kinds of human
interest copies

7. Colloquial copy or Conversational Copy – The colloquial copy presents the

message in the way of conversation. It uses an informal language and
conversation takes place in terms of ‘I’ and ‘You’ with personal reference to
reader and the advertiser. In such copy the style is one of a personal talk or one
of an eyewitness account.

8. Personality Copy - This copy attempts to encase the opinion of personality –

real or imaginary – about the product. Usually the personality is real. The
photograph of the personality (a person specialized to concerned field) is given
with the text of the copy with a view to convince the readers through the moral
influence of his name. Invariably, such copy shows a certificate or a testimonial
of such influential person.

9. Prestige Copy - This pattern is usually for in institutional advertising which

aims at creating an atmosphere about the product or the firm and may not
directly advise the product for sale. Such a copy is occasionally used and is very
much similar to the personality copy in impression which also strives to
enhance the prestige of the advertising firm indirectly by visualizing the name
of the eminent personality.

10. Educational Copy – The copy is designed to educate the general public

about the attributes of the product. Usually introductory appeal is made in this
style when the product is introduced in the market for the first time; it is the
duty of every producer or advertiser to tell everything relevant about the product
to the public in such a manner that it may get a warm welcome among
customers. Such an advertisement copy depicts the specialties to the product
category. The advertiser may insist only one or two attributes of the product
which is more sensational such as introduction of a low priced item without the
loss of quality or a product developed from a new technology indigenous or
imported etc.
11. Suggestive Copy - A suggestive copy tries to suggest or convey the
message to the readers directly or indirectly to pursue them to purchase the
product. It is useful where the reader is confused about the quality of a product
brand and is not in a position to take a decision about the purchase of the
product.

12. Expository Copy – Just opposite of suggestive copy it expository copy. It

does not conceal anything about the product but exposes. The message is quite
clear and it needs no inference, no taxing on mind, no thinking, Even a cursory
glance rakes it quite easy to remembers or to pick – up.

13. Questioning copy – Questioning copy as the term suggests. In Corporate a

series of questions expected to be answered by them readers. The advertiser
puts no narration, statement or reason of its own in order to pursue the readers
to buy the product. The question arouses the curiosity in the minds of the
readers and makes them think of it.
Thus there are various types of copies of advertisement on the basis of their
style of presentation.

Qualities of a Good Advertisement Copy:

An effective advertisement copy must have certain qualities which make it the
best one. They are:
1. It Must Be Simple:
It must be simple and easy to understand. A copy writer must use short, simple,
understandable words and sentences. The words or sentences used must be
remembered by intelligent persons and non-intelligent persons. It must make
people to see it, i.e., it should arrest their attention.

2. It Must Be Informative:
The copy must give the information which the reader wants to know about the
products, in order to buy. Hence it must give the real fact. The information must
be natural and straightforward. It must make people read it, i.e., people should
be informed.

3. It Must Be Concise and Complete:

The copy must be complete and brief. If it is incomplete, it fails. Brevity is
essential (condensation). Completeness should never be sacrificed for brevity. It
must make people to understand it.

4. It Must Be Enthusiastic:
Salesman’s talk in the written form is the copy. The copy must tell the reader
what the product or merchandise will do for him.
5. It Must Be Honest:
It must be honest and truthful towards the public. If the copy is untrue, then the
confidence and the value of publicity go down. The public should not be
cheated. The public, who are the final users of the products, are the witness of
the product quality.

If inferior products are sold through false advertising, they have a short life. If
the firm is hiding the facts, not exposing the real position, the product tells its
own weakness to the users. If the advertisement is not honest, then the products
will disappear from market and the firm will be closed down within a short span
of time.

6. It Creates An Urge:
It must reveal unknown or unseen features of the products. The public should be
informed about the product’s use and merits by the advertiser. It must create a
goodwill in the minds of the public. Its aim must be to trust the firm and its
products. It should have an effective salesmanship in absentia.

A Good Advertisement Copy:

1. It must make people to see it.

2. It must make people to read it.

3. It must make people to understand it.

4. It must make people to believe it.

5. It must make people to buy the product.

Values of an Advertisement Copy:

There are certain principles, which an advertisement should have. That is it
must aim to arrest, inform, impress and urge the readers to act on the
advertisement.

1. Attention Value:

People are busy. They find time rarely. Almost all the people, who are able to
make a purchase, do not have enough time. Under such situations, the
advertisement must be able to attract the attention of readers, at a glance. There
must be some specialty in the advertisement.

To make it more attractive, we may adopt the following devices:

(a) Pictures and drawings should have a direct bearing on the product.

(b) The headline must be good with a proper border.

(c) It must have a pleasing colourful presentation.

(d) It should not be congested i.e., there must be enough inter-space.

(e) The slogans must be lively.

(f) The coupons must be part of the advertisement.

By filling the coupons the needy customer must be able to get full information
and thereby it becomes repeated advertisement to the seller.

2. Suggestive Value:
The message advertised should have some suggestive and useful value to those
who go through the advertisement. The words or pictures in the advertisement
should have commanding power on the readers. Repetition has good effect.
When one comes across the advertisement every time, he begins to consider the
product.

3. Conviction Value:
To be more effective, the statements in the advertisement must be genuine and
accurate. Misrepresentation or exaggerative words must be avoided. Simple and
plain facts have more effect on the readers to convince them than colourful or
flattering wordings.

4. Sentimental Value:
The sentimental feelings or the prejudiced attitude of the reader should not be
affected by the advertiser; but rather, they must be respected. The likes and
dislikes, habits and customs etc., of the readers may be highly considered. It
must appear that the advertiser is doing it for the readers.

5. Educative Value:
When products are manufactured for the first time, it is the duty of the producer,
through advertisements, to draw the attention of the people and to tell them the
use, merits, ingredients, special features etc., of the products. All people are
alike, but their behaviour is different.

When the advertisement is able to change their habits and mould the tendency
to use the products, the market for the products increases. People must have a
feeling to see the advertisement through bearing eyes. It gives new information,
suggestion and knowledge to people and directs them to go for the product.

6. Memorizing Value:
Advertisement must create a good impression on the reader’s mind. Slogan, if it
is good to read and charming to hear, has good memorizing value. Repeating
the advertisement often, through attractive brand name and catchy wordy
slogans, may have a memorizing value in the minds of the readers.
7. Instinctive Value:
The advertiser must have a well-thought out plan to make a copy to be
advertised. The matter or message must be arranged in such a way that the
reader is able to understand and act on the message. The presentation is brief
with questions tempting or compelling the people to act on. We can come
across, an inducement, an aroused feeling, a temptation, an inclination etc., in
such advertisements.

Headline:
It is a sentence, phrase, word, or group of words set in large, bold type on a
newspaper front page or above a body of text on any page of a newspaper or
magazine, or in a printed advertisement .

Basic types of headlines

 Direct: Tell your prospect exactly what’s coming.
This type of headline is direct, and goes straight to the heart of the matter, wit
hout any attempt at cleverness.  Example: Pure Silk Blouses – 30% Off
Indirect: Use curiosity to raise a question in the reader’s mind. Use this with
some caution as you don’t want to attract and then disappoint
visitors. Example: An article might have the headline Fresh Bait Works Best 
and yet has nothing to do with fishing, because it’s actually about writing tim
ely content that acts as link bait. 
News: If your product or service is newsworthy offer it in your headline.
This headline is pretty selfexplanatory as long as the news itself is actually, w
ell… news. A product announcement, an improved version can be the basis o
f a compelling news headline.
Howto: Headline
This type of headline is effective both online and offline. Bly says that “Man
y advertising writers claim if you begin with the words how to, you can’t 
Write a bad headline.” 
Question: Ask an industry or market specific question but be careful when
using this one. You must know your market backwards otherwise you can
blow your whole advertising campaign. The best types of questions to ask are
questions which get your prospect involved.
Command: this tells your customers what to do – encourage action by also
offering a benefit
The Reason Why: 
This type of headline is useful when the body of the article consists of a num
bered list of product features or tips, which you then incorporate into the head
line. Example: Twenty Reasons Why Linux is Better Than Windows
Testimonial:
This headline is effective because it presents outside proof that you offer grea
t value. This involves taking what someone else has said about you, your web
site or service, and using their actual words in your headline. Using direct qu
otes lets the reader know that they are reading a testimonial. 
The body of the article should discuss further the testimonial quote.
Example: “Open Source software are more effective,” admits Bill Gates. 
Benefit: Benefits sell, features don’t. Know your market well so the benefits
you are writing about resonate.
Guarantee: State a desirable benefit and guarantee results or other benefits –
be sure you can back up your promises

Guidelines to be followed while framing a Headline

 Keep your headline straight, simple and to-the-point. The best headlines
don’t need to be witty, clever or complex. Simple sells.
 Let the facts speak for you. If your company was featured in the news,
you’ve created an amazing case study or otherwise “made headlines”, use
that information to make your own headlines!
 Put the user in control. Just because people use your service one way,
doesn’t mean it’s the only way. Put the control in the user’s hands and let
them explore everything you have to offer.
 Make it personal. Whether you’re selling lingerie or lawnmowers, there’s
a part of your business that many people might find intimidating, frustrating
or confusing. How can you make the process friendlier and more welcoming
to them?
 Don’t forget the supporting cast – Although your headline will do most of
the selling for you, don’t forget that great visuals, strong “feature pillars” and
a clear, concise sub-headline add so much more.
 Ask questions that make people think – If you’ve got a feature that others
might term brilliant or revolutionary, why not ask the kinds of questions that
make people think? Jolt them out of their rut and make them start
questioning. They’ll thank you for the insight.
The Elements and Principles of Design
An effectively designed sign can be a powerful tool to create a first and lasting
impression. Signs build awareness through low cost, multiple impressions.
These repeat sightings reinforces your advertising message. Effective use of the
elements and principles of design can help your advertising message stand out
 from your competitors . The elements and principles of design are the building
blocks used to create a work of art, painting, drawing or design. The elements
can be thought of the things that make up the artwork. Good or bad – all
artworks will contain most, if not all, of the seven elements of design.

Elements of Design
 Line
 Value
 Color
 Texture
 Shape
 Size
 Direction
Line
The path of a moving point at the edge of a flat shape or outline of a solid
object. It is a mark that spans a distance between two points. Lines are most
often used to define shape in two-dimensional work. They can also defines
contours and outlines and sometimes also suggest mass and volume. A line is
 longer than it is wider. The ratio between a line's width and length is called its
measure.
Types of lines
 Outlines – Lines made by the edge of an object or its silhouette.
 Contour Lines – Lines that describe the shape of an object and the interior
detail.
 Gesture Lines – Lines that are energetic and catches the movement and
gestures of an active figure.
 Sketch Lines – Lines that captures the appearance of an object or
impression in place.
 Calligraphic Lines – Greek word meaning “beautiful writing”. Precise,
elegant handwriting or lettering done by hand. Also, artwork that has flowing
lines like elegant handwriting.
 Implied Lines – Lines that are not actually drawn but created by a group
of objects seen from a distance. The direction an object is pointing to or the
direction a person is looking at. Implied line is the path that the viewer's eye
takes as it follows shapes, colors, and form along a path, but it may not be
continuous or physically connected.
Different lines have different meanings and uses. Horizontal lines imply
tranquility and rest, whereas vertical lines imply power and strength. Oblique
lines imply movement, action and change. Curved lines or S shaped lines imply
quiet, calm and sensual feelings. Lines that converge imply depth, scale and
distance - a fence or roadway converges into the distance provides the illusion
that a flat two-dimensional image has three-dimensional depth. A line is an
effective element of design because it can lead the viewer's eye.
Value
Value is the range of lightness and darkness within a picture. These range from
white to black with numerous shades of gray in between. Value is directly
related to contrast. It is created by a light source that shines on an object
creating highlights and shadows. It also illuminates the local or actual color of
the subject. Value has the ability to create depth by making objects look three-
dimensional or highlighting lighter, foreground aspects and receding as it hits
the background.
Categories of Values
 Tint is adding white to color paint to create lighter values such as light
blue or pink.
 Shade is adding black to paint to create dark values such as dark blue or
dark red.
 High-Key is where the picture is all light values.
 Low-Key is where the picture is all dark values.
 Value Contrast is where light values are placed next to dark values to
create contrast or strong differences.
 Value Scale is a scale that shows the gradual change in value from its
lightest value, white to its darkest value black.
 Color
The character of a surface created by the response of vision to the wavelength of
light reflections. Color pertains to the use of hue, saturation and brightness.
Color has the ability to identify objects, create moods, and affect emotions.

Texture
Texture is the quality of a surface or the way any artwork is represented. It is
the roughness or smoothness of a surface. Lines and shading can be used to
create different textures as well. Texture is often emphasized in oblique lighting
as it strikes the objects from one side.
Categories of Texture
 Real Texture is the actual texture of an object. Artists may create real
texture in art to give it visual interest or evoke a feeling. A piece of pottery may
have a rough texture so that it will look like it came from nature or a smooth
texture to make it look like it is machine made.
 Implied Texture is the where a two-dimensional piece of art is made to
look like a certain texture but in fact is just a smooth piece of paper. Like a
drawing of a tree trunk may look rough but in fact it is just a smooth piece of
paper.

Shape
A two-dimensional area made by connecting the lines that establish the contour
of an object. A shape can be defined by edges, setting one flat specific space
apart from another. When a line crosses itself or intersects with other lines to
enclose a space it creates a shape.
Categories of Shapes:
 Geometric Shapes
Circles, Squares, rectangles and triangles.
 Organic Shapes
Leaf, seashells, flowers.
 Positive Shapes
In a drawing or painting positive shapes are the solid forms in a design such as a
bowl of fruit.
 Negative Shapes
In a drawing it is the space around the positive shape or the shape around the
bowl of fruit.
 Static Shape
Shapes that appears stable and resting.
 Dynamic Shape
Shapes that appears moving and active.
Shapes may stand out also by a difference of value, color, or texture. Shapes can
be visible without lines when an artist establishes a color area or an arrangement
of objects.
 Size 
In a two dimensional space, size is the relationship between the area occupied
by one shape compare to the area occupied by another. When you are looking at
a flat image, two shapes of the same size do not clearly represent whether they
are large or small. There is nothing else to compare it to. It creates confusion
where as a dominant figure gices the eye a place to rest. To illustrate a large
sized shape requires the existence of a smaller size shape. By varying the size of
shapes in a given space, the eye is drawn to the larger, dominant shapes.

Direction
There are basically three options for direction - horizontal, vertical, or oblique.
The dominant direction in an artwork has a powerful influence over the
atmosphere generated by the artwork.

Principles of Design
The principles of design can be thought of as what we do to the elements of
design. How we apply these principles determines how successful we are in
creating a work of art.

 Unity
 Contrast
 Dominance
 Repetition
 Emphasis
 Harmony
 Balance
 Gradation
Unity

Unity is the visual linking of various elements. It refers to the ordering of all
elements so that each contributes to a unified aesthetic effect which helps the
artwork be seen as a whole. The results of failing to accomplish are the
premature termination of the viewer's experience. They look away. There are a
number of ways to achieve unity to attract and keep the viewers attention. For
example, if the artwork is meant to be active aggressive, it would be better to
work with a dominant oblique direction, using coarse, rough, texture, and/or
angular lines. The opposite of that would be quite passive artwork: horizontal
lines, soft texture and less tonal contrast.

Contrast
Contrast is the just a position of opposing elements. It can be a contrast in color
( opposite colors on the color wheel), in tone (light vs dark), or in direction
(horizontal vs vertical). The major contrast in a design should be located near
the center of interest. Too much contrast scattered throughout can destroy unity
and make it difficult to look at. Unless chaos and confusion are what you are
seeking.
Positive and Negative Space
Positive space can be thought of a where shapes and forms exist. Negative space
is the empty space around the shapes and forms. Areas that contain “nothing”
are important visual elements that provide balance.
Dominance
Dominance counteracts confusion and monotony. It gives artwork interest and
can be applied to one or more of the elements to give it emphasis. Making an
element dominant can be done through size and color. Large objects dominate
smaller ones and warm colored objects dominate cooler pale colored objects.
Another way to achieve dominance is by positioning various elements within
the frame. A centrally located object will draw more attention than one at the
periphery. However, directly center is not the best place to position the most
dominant element – usually just to one side of the center is more effective.
Another method of dominance is by convergence or radiation or lines. The eye
tends to follow these lines to the point where they converge.
Repetition
Although the word repetition is defined as the act of repeating something,
repetition without variation can become monotonous. Repetition with variation
is interesting and will hold a viewer's eye longer as it cannot be absorbed
properly with a single glance. The individual characteristics needs to be
considered before a pattern can be distinguished.

Emphasis
A common method used to attract a viewer's attention in a design is the use of
focal points. It draws your attention to the most important element on the page.
There are a few different techniques used to create a focal point: by contrast, by
isolation, or by placement.
Harmony
Harmony in artwork is the visually satisfying effect of combining similar,
related elements. Examples are adjacent colors on the color wheel, similar
shapes, etc.

Balance
Balance implies that the visual elements within the frame have a sense of
weight. Large objects generally weigh more than small object and dark objects
weigh more than light colored objects. The position of the elements is also
critical. A large shape close to the center can be balanced by a small shape close
to the edge. A large, light toned shape will be balanced by a small, dark toned
shape. Another way to achieve balance is through symmetry. A reflection in still
water is an example of almost perfect symmetry.
Gradation
Using a gradient tool to produce a gradation will give different perspectives to
objects. Gradation of size and direction produce linear perspective, whereas
gradation of color from warm to cool and tone from dark to light will produce
aerial perspective. Gradation can add interest and movement to a shape. A
gradation from dark to light will cause the eye to move along a shape.
The elements and principles of design serve as building blocks. They combine
and oppose to create individual works of art in every realm of design. They are
important for describing, analyzing, and building art. Once you know what the
elements and principles are, you can use them, time after time, and never put a
wrong foot forward. What the designs look like is completely subjective, but
when it comes to right and wrong, just think of the information in today's blog,
and you'll know what the elements and principles can mean for your sign
design.

Communication definition and process

Communication is a process by which information is exchanged between
individuals through a common system of symbols, signs, or behavior 
Seven major elements of communication process are: (1) sender (2) ideas (3)
encoding (4) communication channel (5) receiver (6) decoding and (7)
feedback.

Communication may be defined as a process concerning exchange of facts or

ideas between persons holding different positions in an organisation to achieve
mutual harmony. The communication process is dynamic in nature rather than a
static phenomenon.

Communication is the activity of conveying information through the exchange

of thoughts, messages, or information, as by speech, visuals, signals, writing, or
behavior.
Communication requires a sender, a message, and a recipient, although the
receiver need not be present or aware of the sender's intent to communicate at
the time of communication; thus communication can occur across vast distances
in time and space. Communication requires that the communicating parties
share an area of communicative commonality. The communication process is
complete once the receiver has understood the message of the sender.
Source Encoding

The sender, or source, of a communication is the person or organization that has

information to share with another person or group of people. The source may be
an individual (say, a salesperson or hired spokesperson, such as a celebrity, who
appears in a company’s advertisements) or a non-personal entity (such as the
corporation or organization itself).
The communication process begins when the source selects words, symbols,
pictures, and the like, to represent the message that will be delivered to the
receiver(s). This process, known as encoding, involves putting thoughts, ideas,
or information into a symbolic form. The sender’s goal is to encode the message
in such a way that it will be understood by the receiver. This means using
words, signs, or symbols that are familiar to the target audience. Many symbols
have universal meaning, such as the familiar circle with a line through it to
denote no parking, no smoking, and so forth.

Message

The encoding process leads to development of a message that contains the

information or meaning the source hopes to convey. The message may be verbal
or nonverbal, oral or written, or symbolic. Messages must be put into a
transmittable form that is appropriate for the channel of communication being
used. In advertising, this may range from simply writing some words or copy
that will be read as a radio message to producing an expensive television
commercial.

In the adjacent ad published by DHL in a magazine, the message portrayed is

quite clear. They have used a see through page to show the quickness in the
delivery standards from one place to another. The person delivers a package
from the man to the women as quickly as one turns over a page. That is creative
marketing!!!
To better understand the symbolic meaning that might be conveyed in a
communication, advertising and marketing researchers have begun focusing
attention on semiotics, which studies the nature of meaning and asks how our
reality—words, gestures, myths, signs, symbols, products/services, theories—
acquire meaning. Semiotics is important in marketing communications since
products and brands acquire meaning through the way they are advertised and
consumers use products and brands to express their social identities.

Channel

The channel is the method by which the communication travels from the source
or sender to the receiver. At the broadest level, channels of communication are
of two types, personal and non-personal. Personal channels of communication
are direct interpersonal (face-to-face) contact with target individuals or groups.
Salespeople serve as personal channels of communication when they deliver
their sales message to a buyer or potential customer. Social channels of
communication such as friends, neighbors, associates, co-workers, or family
members are also personal channels. They often represent word-of-mouth
communication, a powerful source of information for consumers.
              
Non-personal channels of communication are those that carry a message
without interpersonal contact between sender and receiver. Non-personal
channels are generally referred to as the mass media or mass communications,
since the message is sent to many individuals at one time.

Receiver/Decoding

The receiver is the person(s) with whom the sender shares thoughts or
information. Generally, receivers are the consumers in the target market or
audience who read, hear, and/or see the marketer’s message and decode it.
Decoding is the process of transforming the sender’s message back into thought.
This process is heavily influenced by the receiver’s frame of reference or field
of experience, which refers to the experiences, perceptions, attitudes, and values
he or she brings to the communication situation. Effective communication is
more likely when there is some common ground between the two parties. While
this notion of common ground between sender and receiver may sound basic, it
often causes great difficulty in the advertising communications process.
Marketing and advertising people often have very different fields of experience
from the consumers who constitute the mass markets with whom they must
communicate.

Response/Feedback

The receiver’s set of reactions after seeing, hearing, or reading the message is
known as a response. Receivers’ responses can range from non-observable
actions such as storing information in memory to immediate action such
as dialing a toll-free number to order a product advertised on television.
Marketers are very interested in feedback, that part of the receiver’s response
that is communicated back to the sender. Feedback, which may take a variety of
forms, closes the loop in the communications flow and lets the sender monitor
how the intended message is being decoded and received.
 The AIDA Model identifies cognitive stages an individual goes through during
the buying process for a product or service. It's a purchasing funnel where
buyers go to and fro at each stage, to support them in making the final purchase.
American advertising and sales pioneer, Elias St. Elmo Lewis, is largely
credited for developing the AIDA model. In one of his publications on
advertising, Lewis identified at least three principles that should be present in an
advertisement:
 The mission of an advertisement is to attract a reader, so that he will look
at the advertisement and start to read it.
 The advertisement must then interest him, so that he will continue to read
it.
 Finally, the advertisement must convince him, so that when reads it, he
will believe it.

AIDA stands for attention, interest, desire, and action. It is an acronym used
in marketing and advertising, which helps marketing managers develop
 effective communication strategies and communicate with customers in a way
that better responds to their needs and desires. AIDA describes a common list of
events that occur when a consumer views an advertisement. Each letter in the
acronym stands for the following:
 The "A" represents attention or awareness, and the ability to attract the
attention of the consumers.
 The "I" is interest and points to the ability to raise the interest of
consumers by focusing on and demonstrating advantages and benefits (instead
of focusing on features, as in traditional advertising).
 The "D" represents desire. The advertisement convinces consumers that
they want and desire the product or service because it will satisfy their needs.
 The "A" is action, which leads consumers toward taking action by
purchasing the product or service.
The system is used to guide marketers to target a market effectively. Naturally,
as organizations move through each step of the AIDA model, a percentage of
initial prospects are lost throughout the sales cycle.
Car advertisements are prime examples of results stemming from the use of the
AIDA model to narrow the target market . Marketers in the automotive industry
know their advertisements must grab the attention of consumers, so they use
colors, backgrounds, and themes that would appeal to them. Next, automotive
marketers pique interest by showing the advantages of owning the car. In the
case of the Mini-Cooper, for instance, marketers imply that a small car can get
the consumer to open spaces and to fun.

Third, automotive marketers find what their consumers desire. For Mini-Cooper
drivers, it's the "fun" of driving, while for Prius consumers it may be the fuel
economy or the environmentally friendliness. Only after evaluating consumer
desires are marketers able to create effective campaigns. Lastly, marketers
encourage consumers to take action by purchasing the product or service.
Innovation Adoption model

The innovation adoption model evolved from work on the diffusion of

innovations. This model represents the stages a consumer passes through in
adopting a new product or service. Like the other models, it says potential
adopters must be moved through a series of steps before taking some action (in
this case, deciding to adopt a new product). The steps preceding adoption are
awareness, interest, evaluation, and trial. The challenge facing companies
introducing new products is to create awareness and interest among consumers
and then get them to evaluate the product favorably.
Stage 1 – Product Awareness
This first stage is about creating awareness that your product is in the market.  It
is important that your company develops a successful avenue for your
consumers to become aware of your product. If consumers do not know your
product exists, than it might as well not exist!  Create marketing material.
These can be one-sheets, video teasers, images, and landing pages.  Make these
marketing materials easily accessible.  Utilizing creativity and wit is a great way
to engage consumers in this awareness stage.  I recommend creating a strong
social presence for said product. In the era of social media, many tools are
available in the market that provide companies with the techniques and methods
to increase product awareness through social channels – enabling them to reach
a large number of customers at a low cost!

Stage 2 – Product Interest

In this stage consumers are ready to learn more about your companies product
and / or service. Your organization must guide the consumer through the
interest stage by providing easily accessible information on your product.
Among the methods used in the todays business landscape include a website
describing the product, blog posts, tutorial or instructional videos, white papers,
and other sources of info that the potential consumer can discover and review.

Stage 3 – Product Evaluation

Prior to purchasing, consumers examine, compare and evaluate the product.
Such behavior increases in intensity and need once the item in question is more
expensive, sophisticated and complex, or critical. Consumers are searching for
information. We are now finding that consumers go online and utilize social
media channels to ask other individuals about your product or service. In
addition, they find online reviews and recommendations. In order to simplify a
customer’s search and evaluation of your product, I suggest creating
information that outlines the difference between your product and other similar
products, or differences within the different products and services you sell.
Outline what separates your product from others, and emphasize on strength.
Another great system to utilize is the  webinar. This platform allow you to
communicate with potential customer in depth information about your product
and provides time for Q&A.

Stage 4 – Product Trial

This is the stage where the consumer “kicks the tires”.  Nothing helps a
consumer make a decision about your product more than actually trying your
product out! There are many ways this is accomplished. For example, your
company can provide your consumer with a free trial or a proof of concept
campaign. In this stage it is very important to set the customer expectations
correctly and deliver on said expectations.

Stage 5 – Product Adoption

When the consumer enters the product adoption phase, he/she is ready to
purchase your companies product. This is the critical stage that businesses need
to get their consumers to. When the customer is here, you need to make the
payment process simple, intuitive, and pain free. In addition, you need to ensure
that the consumer can easily obtain the product. If you make it to and through
 this last phase successfully, than you can take money to the bank – A job well
done!

There are groups of consumers who are categorized on the basis of adoption of
innovation. They are as follows:

 1. Innovator. They are a small group of people exploring new ideas and
technologies. It includes "gadget fetishists!" In an online marketing
context there are a lot of specialist blogs and media sites to engage them,
Engadget and Gizmodo for examples.
 2. Early Adopters. Considered to be Opinion Leaders who may share
positive testimonials about new products and services, seeking
improvements and efficiency. Engagement requires little persuasion as
they're receptive to change. Provide guides on how to use the
product/service.
 3. Early Majority.  These are Followers who will read reviews by earlier
adopters about new products before purchasing. They can be engaged
with reviews and via YouTube, where they will look for your products.
 4. Late Majority. To generalise, these are sceptics who are not keen on
change and will only adopt a new product or service if there is a strong
feeling of being left behind or missing out. They can be engaged with
providing marketing material, evidence, reviews from Opinion Leaders
and case studies to show how it works.
 5. Laggards. The descriptor says it all! Typically they prefer traditional
communications and will adopt new products when there are no
alternatives. Laggards will come on board when 'others' have written
about your products/services, they have research evidence, statistics or
felt pressure from others.

The Hierarchy of Effects is a model by Lavidge and Steiner (1961) usually

applied to advertising. Here I want to explore how this model can be applied to
content marketing to help you create the right sorts of content for the type of
influence you’re looking to have on your audience.
The Hierarchy of Effects model presents six stages a customer is deemed to go
through from first becoming aware of a product to making the purchase.
The classic order of the stages in the Hierarchy of Effects model is:
1. Awareness
2. Knowledge
3. Liking
4. Preference
5. Conviction
6. Purchase
These 6 stages, a clear reflection of the sales funnel, are divided into 3
categories of human behaviour:

Awareness and Knowledge = Cognitive

The cognitive stage is all about information processing. The extent of

processing a customer does depends on both their ability and motivation to
parse the information at hand (Petty, 1980). As such, to appeal to customers at
the earliest stages of the sales funnel, your content should:
 Clearly convey the important information you want your customers to
know, like a key product benefit or a brand attribute.
 Be designed and written with the abilities and capabilities of your
target customers in mind.
 Motivate engagement by, for instance, including a fun hook that makes
your target audience personally identify with the content.

Liking and Preference = Affective

This stage is about attitude formation – the way customers feel about your
brand. To influence your customers at this stage, your content should bring
across the sort of feeling you want your brand to be associated with. As a
result, this content shouldn’t be focused on a product, but rather on
emotions, lifestyle, values and other factors that can help you to change and
shape your customer’s attitude.
To make the difference between Cognitive and Affective focused
communications clearer, I’d like to show you two examples from Dove.
The first one is cognitive, it’s very straight forward and communicates the
benefit of using the brand’s product. Now watch the second one:
The second one is affective, it’s one of the videos from their real beauty
campaign.This content is not about any of their products in particular at all, it’s
about the emotions Dove would like customers to associate with their brand.

Conviction and Purchase = Conative

Yeah, I didn’t know what Conative was when I first encountered it either. It’s
defined as

“The aspect of mental processes or behaviour directed towards action or

change and including impulse, desire, volition and striving”

Brand positioning meaning
The brand`s positioning is the place in the consumers mind that you want
your brand to own. It is the benefit you want your consumer to perceive when
they think of your brand. ... A strong brand position means that the brand has a
unique, credible and sustainable position in the mind of the consumer.
Positioning strategies can be conceived and developed in a variety of ways. It
can be derived from the object attributes, competition, application, the types of
consumers involved, or the characteristics of the product class. All these
attributes represent a different approach in developing positioning strategies,
even though all of them have the common objective of projecting a favorable
image in the minds of the consumers or audience. There are seven approaches
to positioning   strategies:
(1) Using Product characteristics or Customer Benefits as a positioning
strategy
This strategy basically focuses upon the characteristics of the product or
customer benefits. For example if I say Imported items it basically tell or
illustrate a variety of product characteristics such as durability, economy or
reliability etc. Lets take an example of motorbikes some are emphasizing on
fuel economy, some on power, looks and others stress on their durability. Hero
Cycles Ltd. positions first, emphasizing durability and style for its cycle.
At time even you would have noticed that a product is positioned along two or
more product characteristics at the same time. You would have seen this in the
case of toothpaste market, most toothpaste insists on ‘freshness’ and ‘cavity
fighter’ as the product characteristics. It is always tempting to try to position
along several product characteristics, as it is frustrating to have some good
characteristics that are not communicated.
(2) Pricing as a positioning strategy – Quality Approach or Positioning by
Price-Quality – Lets take an example and understand this approach just suppose
you have to go and buy a pair ofjeans, as soon as you enter in the shop you will
find different price range jeans in the showroom say price ranging from 350
rupees to 2000 rupees. As soon as look at the jeans of 350 Rupees you say that
it is not good in quality. Why? Basically because of perception, as most of us
perceive that if a product is expensive will be a quality product where as
product that is cheap is lower in quality. If we look at this Price – quality
approach it is important and is largely used in product positioning. In many
product categories, there are brands that deliberately attempt to offer more in
terms of service, features or performance. They charge more, partly to cover
higher costs and partly to let the consumers believe that the product is, certainly
of higher quality.
(3) Positioning strategy based on Use or Application – Lets understand this
with the help of an example like Nescafe Coffee for many years positioned it
self as a winter product and advertised mainly in winter but the introduction of
cold coffee has developed a positioning strategy for the summer months also.
Basically this type of positioning-by-use represents a second or third position
for the brand, such type of positioning is done deliberately to expand the
brand’s market. If you are introducing new uses of the product that will
automatically expand the brand’s market.
(4) Positioning strategy based on Product Process – Another positioning
approach is to associate the product with its users or a class of users. Makes of
casual clothing like jeans have introduced ‘designer labels’ to develop a fashion
image. In this case the expectation is that the model or personality will influence
the product’s image by reflecting the characteristics and image of the model or
personality communicated as a product user. Lets not forget that Johnson and
Johnson repositioned its shampoo from one used for babies to one used by
people who wash their hair frequently and therefore need a mild people who
wash their hair frequently and therefore need a mild shampoo. This
repositioning resulted in a market share.
(5) Positioning strategy based on Product Class – In some product class we
have to make sure critical positioning decisions For example, freeze dried
coffee needed to positions itself with respect to regular and instant coffee and
similarly in case of dried milk makers came out with instant breakfast
positioned as a breakfast substitute and virtually identical product positioned as
a dietary meal substitute.
(6) Positioning strategy based on Cultural Symbols – In today’s world many
advertisers are using deeply entrenched cultural symbols to differentiate their
brands from that of competitors. The essential task is to identify something that
is very meaningful to people that other competitors are not using and associate
this brand with that symbol. Air India uses maharaja as its logo, by this they are
trying to show that we welcome guest and give them royal treatment with lot of
respect and it also highlights Indian tradition. Using and popularizing
trademarks generally follow this type of positioning.
(7) Positioning strategy based on Competitors – In this type of positioning
strategies, an implicit or explicit frame of reference is one or more competitors.
In some cases, reference competitor(s) can be the dominant aspect of the
positioning strategies of the firm, the firm either uses the same of similar
positioning strategies as used by the competitors or the advertiser uses a new
strategy taking the competitors’ strategy as the base. A good example of this
would be Colgate and Pepsodent. Colgate when entered into the market focused
on to family protection but when Pepsodent entered into the market with focus
on 24 hour protection and basically for kids, Colgate changed its focus from
family protection to kids teeth protection which was a positioning strategy
adopted because of competition.
Advertising budget

An advertising budget is the money a company is willing to set aside to

accomplish its marketing objectives. When creating the advertising budget, a
company must weigh the trade-offs between spending one
additional advertising dollar with the amount of revenue that dollar will bring
in as revenue.

FOLLOWING   ARE   THE   FACTORS   THAT ARE CONSIDERED IN

DETERMINING THE ADVERTISING BUDGET.
 
1)  Corporate objectives:
Using the objective task method, linkage between advertising expenditure and
corporate   objective   will   be   established.   The   advertising   expenditure   
varies depending upon corporate philosophy and priorities. For example in
India, we find  that  public sector corporations such as  BEST  or the
Mahanagar Telephone Nigam  Ltd  spend  less  on  advertising  than  private
sector  companies  such  as Reliance Industries or Tata Industries.
 
2)  The product Life Cycle:
This has a very important influence on the ad budget and companies use the
brand history method for deciding how to spend on the product.
 
3)  The budgeting  period:
Usually  companies  have  a  yearly  budget  but  some  may  prepare  long  term
budget that match the long-term objectives.
 
4)  The competitors  strategies:
Product categories, which  have stiff competition,  witness  a  greater
expenditure on  advertising. For example, in India television  manufacturers
spend more than the  manufacturer  of  ear  buds.(manufactured  mainly  by
Johnson  &  Johnson  ). When  competitors  increase  their  advertising
expenditure  others  are  forced  to follow them.
 
5)  Affordability:
While the affordability level depends upon the advertisers priorities ceilings on
how much to spend is fixed by the advertisers in order to avoid overspending.
 
6)  Crisis management:
Even  the  best-laid  plans  can  be  affected  by  the  changes  in  the
marketplace. Advertisers  have  to  keep  aside  contingency  funds  that  can  be
used  to  tackle unexpected market challenges.
 
 
7)  The type of product:
Consumer  products  need  more  advertising  than  industrial  products.  Among
consumer products shopping items such as toothpaste, shampoo and soaps need
to  be  advertised  consistently  in  order  to  maintain  their  brand  position.
Such products will have a higher budget appropriation.
 
8)  Importance  of middlemen:
In  product  categories  where  middlemen  or retailers  have  to  push  the
product, manufacturers may prefer to spend more on dealer commission than
advertising. For  example Sumeet washing machines and kitchen  mixers and
food processors are not advertised heavily. This is because the brand name
Sumeet is familiar to consumers   who  have  accepted  the  product  image  of
quality  and  after  sales service. The company prefers to use retailers to push
the brand. In most common durables such as  televisions, VCRs, microwave
ovens and so on, the influence of retailers  is  very   strong.  Unlike  impulse
purchase  products  such  as  chewing gums, chocolate and ice cream, which
therefore use more of advertising.
 
9)  Scope  of the market:
If the advertiser  wants  to approach  the national market his  budget has to  be
much more than that required for local or regional market.
 
10) The quality of the campaign:
When   the  advertising   campaign  is  striking  and  is  unusually   creative,  it
is immediately noticed  by consumers. In  this case the advertisers  need not
spend on  buying media, time and space. To compensate  on poor quality
campaign an advertiser  may have to spend more on media, in order to enjoy the
same degree of visibility. For  example the Cherry Blossom  ad, which used a
Charlie Chaplin look   alike,   was   a   striking   television   commercial   that   
immediately   gained attention.

METHODS OF SETTING THE ADVERTISING BUDGET

 
One of the most difficult tasks facing advertisers and ad agencies is the decision
on the optimum money to be spent on advertising. Advertisers want to minimize
expenditure  and   maximize   the   returns.   Though   advertising   expenditure   
is considered to be an investment, its utilization has to be intelligent and
profitable.
Though   there  are  several  accepted  methods   of  arriving  at  the  budget,  the
individual brand budget will depend upon several factors  such as  profitability,
marketing objective and competitor’s  position. The various  methods, which
are used, for setting advertising budgets are:
1.  Percentage of sales method
2.  Unit of sales method
3.  Task and objective method
4.  The competitive parity method
5.  Brand history method
6.  All you can afford method
7.  The break even method
8.  The quantitative method
9.  Share of voice method
 
Each of these methods has certain advantages and disadvantages. In reality, a
combination of these methods will be used.
 
1.  PERCENTAGE OF SALES METHOD:
The percentage of sales method is the most widely used widely used method of
setting   the   appropriation,   although                          it   has   been   criticized   
by   many.   The percentage is based on the past years’ sales or on estimated
sales for the coming year or on some combination of these two. This is simplest
method, as it requires little  decision  making. Many companies  in India use
this  method to arrive at a tentative budget appropriation. But this method
suffers from a basic drawback in that  it  does  not  take  into  account  any
specific  need  of  the  market  situation. Moreover, when  past  sales  are used
to arrive  at  the current  year’s  budget, the figure  may  have  more  historical
value  rather  than  current  utility.  Advertising leads to sales and the amount of
advertising expenditure depends upon the sales target and therefore, when the
percentage of future sales is used the estimates are more realistic.
In  conclusion   one  can   say   that  this   method   is  not  appropriate  as   
market situations change rapidly and past sales alone are not an effective
indicator of the company’s communication needs.
 
2.  UNIT OF SALES  METHOD:
The  unit  sales  method also  relates  the advertising  expenditure  of sales.  In
this approach, a  percentage of the price of each unit of the item sold  is
allocated to advertising. Thus a soap manufacturer might budget that a cake of
soap costing Rs.6/- will have Rs.1.50 as the advertising expenditure. Thus, if the
manufacturer sells  one  lakh  units,  his  expenditure  on  that  brand  will  be
Rs.  1.5  lakh.  This approach   is   useful   as   it   links   the   price   of   a   
brand   with   its   advertising expenditure. This  approach is simple to plan and
execute. However, it does not lead to  efficient  marketing since past sales
determine how  much a  firm should spend  on  advertising,  when  in  fact
advertising  is  a  tool  to  create  sales  and expand  markets.  This  also   
assumes  that  the  advertiser  is  satisfied  with  the current  rate  of  growth  in
sales.  This  is  rarely  so,  as  every  advertiser  aims  at improving the rate of
growth.
In an extreme situation if sales go down, a firm following this method will also
reduce  advertising  expenditure.  This  will  be  disastrous  for  the  company
as  it may lose its market rapidly to competitors.
 
In conclusion the unit of sales and percentage of sales method are not suitable to
a dynamic  market situation. However they are useful guides  to give  direction
to planners  who  use  them as  a  basis  for deciding  the ad  budget,  in
combination with other methods.
 
3.  TASK  OBJECTIVE METHOD:
This method is gaining more popularity because it provides a more logical basis
for  deciding advertising appropriation. The objective  task  method
concentrates on  the   marketing/advertising  objectives   that  are  pre-decided  
and  ask  these questions:  what  is  the  role  of  advertising  in  obtaining  these
objectives?  How much should we spend to achieve these objectives?
Thus  under  this  method  a  company  launching  a  new  product  will  decide
to spend more money as it has to create immediate awareness amongst
consumers.( for  example  Ranbaxy  will  spend  more  on  its  new  product
Olesan).  For  an existing  well  know  brand,  the  company  may  spend  less
on  advertising  (for example Ranbaxy will spend less to advertise its product
Garlic Pearls.)
As it is obvious in the above example, the objective  task approach directs the
efforts of manufactures to think through the objective while setting the budget.
There   is  one   problem   involved   in   the  use   of   this   method   of   setting   
the appropriation and  that is: how does  one  determine  just how  much
advertising and  what  type  of  advertising  will  achieve  the  stated  objectives.
The  present methods  of  research do not give a direct link between advertising
expenditures and   achievement   of   the   objectives.   Until   more   
sophisticated   methods   are developed  managers will have to face this problem
of uncertainty while deciding the optimum budget.
 
4.  THE COMPETITIVE PARITY  METHOD:
This is the most controversial method and few executives admit that they use it
while  preparing  the  budget.  In  this  approach  an  advertiser  bases  his
budget decision  primarily  on  the expenditures  of competitors.  That  is  they
try to  keep pace with their competitor’s advertising budgets. This method could
be useful in deciding individual  brand ad expenditures.  It has  the advantage of
recognizing the importance of  competitors  and  ensure  that the competitors
do  not increase their ad expenditure to a  level that affects the advertiser’s sales.
But the approach has  disadvantages.  Firstly  your  objective  may  be  different
from  that  of  your competitors.  And   secondly   it   assumes   that   your
competitors   are  spending optimally. It also maintains the  present  market
position rather than bringing any positive change for the company. If  you want
to overtake your competitors you may have to spend more than them and spend
this money more efficiently.
 
5.  BRAND HISTORY METHOD:
Under this method the brand’s product life cycle is considered while setting the
budget.  Thus  a  brand  at  the  introductory  or  pioneering  stage  will  use
more advertising  appropriation  than  an  established  brand.  Brands that are
facing a decline may also use more advertising to add new life into it. For
example Close Up,  the  toothpaste  manufactures  by  Hindustan  Lever  had a
stagnating  market share till  recently. In 1990 it’s spent Rs. 3.45 crore on
television advertising with its new theme close up: “a mouth wash in tingling
red and blue colours”.  The result was that close up has over taken Promise and
is now number two in the toothpaste market behind Colgate.
 
 
7.  THE BREAK EVEN METHOD:
The  break  even  or  the  marginal  analysis  method  attempts   to  quantify  the
advertising spending level that will offer an organization the highest additional
gross profits. That is the firm continues to spend on the advertising as long as
the incremental expenditure are exceeded by the marginal revenue they
generate, thus maximizing the gross profits of the firm.
This method has an advantage because it helps in diagnosing any problem, that
is when the company is overspending or under spending. But it suffers from the
disadvantage  of  limited  research  techniques  that  cannot  isolate  the  effect
of advertising  on  marginal  revenues  and  gross  profits.  Other  activities
such  as personal  selling  and  sales  promotions  also  influence  the  revenue
earned  
by a company. Moreover, it assumes that there is an immediate effect of
advertising expenditure. This is possible in direct mail advertising. In most
other advertising there  is a carryover effect that is a potential consumer may be
influenced by the ad, in the  month  of June  but may  make a  purchase  in
December.  Advertising may also attract customers who become loyal
customers for several years.  The immediate  purchase  measures  up  to  only  a
small  part  of  the  value  the  firm enjoys  from  such  continuous  purchases.
This drawback can be overcome by using the experimental method.
In   the   experimental   method   varying   advertising   expenditures   are used   
in different cities. For example the advertising expenditure in Pune may be
greater than the advertising expenditure in Hyderabad. Then sales in the two
cities are compared to find out which is optimum level of expenditure.