Introduction to Advertisement

1. Concept of Advertisement
 Advertisement/Ad/Ad-Film/Commercial
 From Latin word which means “to turn attention of people to specific
thing”
 Is a from of communication
 Represents the message/idea of the sender
 Targeted at a mass audience – mass persuasion apart from
disseminating information to target customers
 Not always the efficient way of reaching people
 Usually paid by sponsors and viewed on different media
 A combination of creativity, market research & economic media
buying
 Diverse field
 Ultimate aim is to increase sales
2. Meaning & Definition
 Derived from Latin word ‘advertere’ which means to turn on
attention
 Powerful communication medium & vital marketing tool to help sale
of goods
 Convinces people to buy product
 Contains information & persuasion
 According to America Marketing Association, “Advertising is any
paid form of non-personal presentation of ideas, goods or services
by an identified sponsor”
 According to William J. Stanton, “Advertising consists of all activities
involved in presenting to a group, a non-personal, oral or visual,
openly-sponsored message regarding a product, service or idea,
this message is called advertisement, is disseminated through one or
more media and is paid for by an identified sponsor”
3. Features of Advertisement

 Paid form  Non-personal

 Ideas, goods & services presentation &
promotion
 Controlled
 Identified sponsor
 Persuasive act
 Mass communication
 Competitive act media
 Not neutral; not unbiased
 Informative act
4. Scope of Advertisement

1. Message 5. Advertiser
2. Media 6. Objectives
3. Merchandise 7. Activities
4. Advertising functions 8. Art & Science
5. Objectives of Advertisement
1. Informing
2. Influencing
3. Reminding
4. Adding Value
5. Assisting with other company efforts
6.Functions of Advertisement
1. Communication with 8. Reduce costs
customer
9. Lower prices
2. Persuasion
10.Competitive weapon
3. Contribution to
11.Brand image building
economic growth
12.Innovation
4. Catalyst for change
13.Growth of media
5. Stimulates demand
6. Strengthens other
promotion mix element
7. Develops brand
preference
 Principles of Advertisement
 Grab people
 Be clever & creative
 Speak loudly
 Do not make people think
 Use colors that make sense
 Be informative
 Be memorable
 Show not tell
 Use humor
Types of Advertisement
 Classification

 On basis of geographical spread

 On basis of target group
 On the basis of demand influence level
 On the basis of Corporate Philosophy
 On the basis of Timing of the response it elicits
 On the basis of media
 Miscellaneous
 A. On the basis of Geographical
Spread
 Global Advertising
 National Advertising
 Local Advertising
 B. On the basis of Target Group

 Consumer Advertising
 Trade Advertising
 Industrial Advertising
 Professional Advertising
 C. On the basis of Demand Influence
Level
 Primary Demand (Stimulation)
 Selective Demand (Stimulation)
 D. On the basis of Corporate
Philosophy
i. Corporate Advertising
ii. Brand Advertising
a. Informative Brand Advertising
b. Persuasive Brand Advertising
c. Reminder – Oriented Brand Advertising
d. Negative Advertising
 E. On the basis of the Timing of
Response it Elicits
i. Direct action advertising
ii. Indirect action advertising
iii. Surrogate advertising
 F.On the basis of media

 Audio
 Visual
 Audio-Visual
 Written
 Internet
 Verbal
 G. Miscellaneous

 Covert
 Institutional
 Product
i. Pioneering Advertising
ii. Competitive Advertising
iii. Reminder Advertising
Advantages of Advertisement
 To Manufacturers

 Increased sales
 Steady demand
 Lower costs
 Greater dealer interest
 Quicker turnover & smaller inventories
 Supplementing salesmanship
 Encouragement to better performance
 Creating goodwill
 To Consumers

 Facility of Purchasing
 Improvement in Quality
 Elimination of unnecessary intermediaries
 Consumer’s surplus
 Education of consumers
 To Society

 Generates employment
 Standard of living
 Stimulates research & development
 Promote art & culture
 Disadvantages of Advertisement

1. Multiplication of needs 7. Product proliferation

2. Misrepresentation of 8. Inefficient manufacturers
facts stay in business
3. Consumer's deficit 9. Propensity to consume
4. Increased cost 10.Deferred revenue
5. Wastage of national expenditure
resources 11.Managerial difficulties
6. Barriers to entry
Implications of Advertising
 Introduction
 Ads have social & legal implications
 When violated, social issues arise & government may
take corrective measures
 Society – decides what is offensive, excessive &
irresponsible
 Government – decides what is deceptive & unfair
 The implications are:
1. Social aspects of advertising
2. Economic aspects of advertising
3. Legal aspects of advertising
 1. Social Implications of Advertising

 To direct the desires of human beings

 Ads are the integral part of mass distribution of Industrial
Capitalism
 Objectives of marketers influence social values, lifestyle
and society’s tastes
 Generally agreed – Ads exert a powerful social influence
& is criticised for encouraging materialism in society
 Critics say ads should be informative instead of using
persuasion to influence the emotions, anxieties, etc
Positive Social Implications of Ads

 Informed society  Preventive course if

 Rights of Consumers dreaded diseases

 New ideas  Contribute to creativity

of people
 Environmental protection
 Social changes
 Quality consciousness
 Promotion of national
 Health & hygiene interest
awareness
 Negative Social Implications of Ads

 Children & advertisement  Control of media

 Materialism &  Stereotypes
consumption  Religion & culture
 Wrong message  Undermines social values
 Message problems
 2. Economic Implications of Ads

 Subsystem of economy – plays an important role in

economy
 Helps producer reduce costs
 Helps consumers widen choices
 Principles of free economies:
1. Self – interest
2. Perfect information
3. Many buyers & sellers
4. Absence of externalities
 Positive Economic Implications of Ads

 Effect on cost –  Effect on demand

Production, Distribution &
Prices
 Effect on competition
 Effect on business cycle
 Advertising & creation of
utility
 Effect on product quality
 Effect on consumer
choice
 Effect on national
income
 Effect on employment
Negative Economic Implications of Ads

 Not productive  Forces people to desire &

 Multiplies needs buy things

 Monopoly argument  Increases cost of goods

 Restricts entry of new  Encourages waste

business units  Reduces consumer
 Widens business cycle choice
 Wastage of National
Resources
 3. Legal Implications of Ads

 Ads have been accused of many crimes – social,

economic & moral
 Gives exaggerated hopes to people
 Despite pitfalls, ads cannot be wished away
 Ads face legal restrictions
 Consumer-movement has forced government to
enforce laws to regulate advertising
 Need to Regulate Ads

 Morality & tastes

 Untruthful advertising
 Ads as Environment pollutant
 Legislative codes controlling Ads
 Prevention of Insults to
 Indian Penal Code (IPC),
National Honor Act, 1971
1860
 Infant Milk Substitutes, Feeding
 Drugs & Cosmetics Act,
Bottles & Infant Foods
1940
(Regulation of Production,
 Drugs Control Act, 1950 Supply & Distribution) Act,
 Young Persons (Harmful 1992
Publications) Act, 1950  Indian Copyright Act, 1957
 Indecent Representation of  Trademarks Act, 1999
Women (Prohibition) Act,
1986  Monopolies & Restrictive Trade
Practices (MRTP) Act, 1984
 Emblems & Names
(Prevention of Improper  Consumer Protection Act,
Use) Act, 1950 1986

 Prize Competitions Act,  Cigarettes & Other Tobacco

1955 Products Act, 2003
Setting Advertisement Objectives
 Introduction

 Objectives – end point towards which every activity of

an organization is oriented
 Philip Kotler – “The objectives of advertising is to
communicate to a defined audience, the necessary
information that simulates action in a given period of
time”
 Setting objectives is the integral part of planning process
 If objectives are not formulated clearly, ads can fail
Functions of Advertisement Objectives

 Serves as Communication & Coordination Device

 Criterion for Decision-Making
 Evaluation of Advertising Effectiveness
 Types of Advertising Objectives

1. Sales Objectives
2. Communication Objectives
3. Specific Objectives of Advertising
 1. Sales Objectives

 To sell product & raise level of present sales

 When objectives are sales, a definite & quantifiable
perspective should be present
 If sales increase after an ad campaign, the campaign is
successful
Limitations:
 Ads not the only factor affecting sales
 Effect on sales is in long run
 2. Communication Objectives

1. To increase brand awareness

2. To increase knowledge
3. To create linking
4. To induce preference
3. Specific Objectives of Advertisement
1. To increase demand 9. To reach customers left
2. To sell new product/ out by sales man
build new brand 10.To inform about changes
3. To educate masses in marketing mix

4. To build brand 11.To neutralize

preference competitor’s ads

5. To build good will 12.To enter in new

geographical area
6. To attract & help
middlemen 13.To do entire selling job

7. To support sales team 14.To overcome

dissonance of buyers
8. To remind customers of
product & company 15.Specific objectives of
classified ads
DAGMAR Approach for setting
Advertising Objectives
 Introduction

 DAGMAR – Define Advertising Goals for Measured

Advertising Results
 Approach to setting objectives in which advertisement
effectiveness can be measured
 Prepared by Russel Collay for Association of National
Advertisers in the year 1961
 “The main objective of advertising is to communicate
with the defined audience, the necessary information
that simulates action. Advertisement succeeds or fails
depending on how well it communicates the desired
information to right people at right time at right cost”
 Features of Advertisement Objectives
in DAGMAR
1. Well defined objectives
2. Benchmark & degree of change sought
3. Well defined target audience
4. Specific time period
 Contributions of DAGMAR

 DAGMAR – many advertising planners use this to set

objectives
 DAGMAR focuses on communication objective as the
criteria for evaluating ad-effectiveness
 According to this approach sales is not the main
objective because:
1. Advertising is not the only factor affecting sales
2. Impact of advertising on sales can be measured in long
run
 Criticisms of DAGMAR Approach

1. Sales objective
2. Difficult to measure benchmark
3. Costly
4. Problem with communication hierarchy
5. Effect of other factors
6. Inhibits the creative idea
 Requirements for setting Suitable Ad
Objectives
1. A precise statement of whom, what & when
2. Objectives must be quantitative & measurable
3. Specifying the amount of change
4. Objectives must be realistic
5. Objectives must be internally consistent
6. Objective must be clear and in writing
Advertisement Agencies
 Introduction

 A service business dedicated to creating, planning &

handling advertising (and sometimes other forms of
promotions) for its clients
 George E. Belch – “Advertising agency is a service
organization that specializes in planning and executing
advertising programs for its clients”
 Functions of Advertising Agency

1. Contacting clients 7. Ad-Execution

2. Advertising Planning 8. Evaluation Function
3. Creative Function 9. Marketing Function
4. Developing & Preparing 10. Research Function
Advertising Copy 11. Accounting Function
5. Approval from Client
6. Media selection & Media
Scheduling
Organizational Structure of Advertising
Agency
 Types of Advertising Agencies

7. Sweet Shops
1. Full-Service Agencies
8. Interactive Agencies
2. In-House Agencies
9. Search Engine Agencies
3. Creative Boutiques
10. Health Care
4. Media Buying Services Communications
5. A La Carte Agency Agencies
6. Special Service 11. Medical Education
Agency(Group) Agencies
i. Promotional Education
ii. Continuing Medical
Education
 Services offered by various Agencies

1. Account services 6. Media buying services

2. Marketing Services 7. Special services
3. Research services 8. Direct response services
4. Media services 9. Sales promotion services
5. Creative services 10.Sponsorship services
 Selection of Advertisement Agencies

 Agencies vary widely in their focus

 Some cater to only a few larger clients & do not
generally accept new accounts
 Others have hundreds of clients
 It is important for businesses to work hand in hand with
agencies
 Many factors come into play when choosing advertising
agency
 Criteria for selection & evaluation of
Ad agencies
1. Location 7. Creative skills & new
2. Size ideas

3. Agency working for 8. Past record of agency

competitors 9. Quality & calibre of staff
4. Image of agency 10. Financially sound
5. Service offered by 11. Agency experience
agency
6. Rates charged
 Remuneration Strategies for Ad
agencies
1. Commission
2. Fee arrangement
3. Cost plus agreement
4. Incentive based compensation
5. Percentage charges
6. Speculative basis
5. Advertisement Campaigns
 Meaning & Definition

 Advertising campaign is a series of advertisement

messages that share a single idea & theme which make
up an IMC
 Advertising campaigns appear across different media
such as radio, tv & internet
 According to Dunn & Barban “ An advertising campaign
includes a series of ads, placed in various media, which
are designed to meet objectives, and are based on
analysis of marketing & communication situations”
 Importance of Ad Campaigns

 Establish a feel of urgency for the buyer

 Advertiser’s benefit concerns
 Avoiding failure
 Consumer’s benefit concern
 Compliments to production area
 Factors influencing planning of Ad
campaigns
1. Organization 7. Media
2. Advertising budget 8. Sales promotion efforts
3. Product 9. Identification of current
4. Consumers problems

5. Language 10. Government regulations

6. Competitors 11. Advertising objectives

 Successful Ad Campaigns

 Nike – Just Do it
 Intel – Intel inside
 Coca-Cola – Open Happiness
 Dairy Milk – Sweet edu kondadu
 Amul – Taste of India (Mascot Girl)
End of Unit - I

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