Unit:2-Role of Advertising Advertising Management

C.P.PATEL & F.H.SHAH COMMERCE COLLEGE

(MANAGED BY SARDAR PATEL EDUCATION TRUST)
BCA, BBA (ITM) & PGDCA PROGRAMME
BBA (ITM) SEM-5: Advertising Management
UNIT: 2- Role of Advertising

UNIT: 2- Role of Advertising

Sr. No. Topics
1. Role of Advertising
2. Social issues in advertising
3. Ethical issues in advertising
4. Legal issues in advertising
5. AIDA Model
6. Steps for developing Effective communication
Reference Books: Ruchi Gupta

Role of Advertising

Role of advertising can be divided in groups of people in the society

a) Manufacturers
b) Retailers
c) Consumer
d) Salespeople
e) Society and economy
a) Manufacturers
1. Stimulates demand: Advertising cannot create demand but effectively stimulate
latent demand by pre-selling the product or services.
2. Stabilizing demand: Advertising stimulates demand during off season by offering
other uses for the same product (iced tea during summer) or special off-season
discount packages.
3. Increase the width of the market. Advertising helps the manufacturers to reach
national and even international markets for e.g. tea cultivated in Assam finds a market
in England and through advertising its image and reputation is built.
4. Economy: Advertising is the cheapest tool of mass communication when a number
of consumers have to be reached quickly. Advertising saves both time and money.
5. Large scale economies: By increasing and stabilizing demand it enables

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manufacturers to increase the size of operation giving them the benefit of large scale
economies.
6. Quick sales turnover: As the sales turnover is quick, warehousing and storage
costs are reduced.
7. Innovation and re- Popularizing the symbol search and development:
Advertising persuades the masses to try a product. It gives manufacturers the
confidence to innovate and develop new products since advertising is an effective mass
persuasion technique.
8. Builds brand loyalty and brand Image: Perhaps the greatest advantage of
advertising is its value addition that makes consumers loyal to the brand. By building a
brand personality advertising creates a brand image that cannot be duplicated by
competitors. For example, a manufacturer can make a soap that has all the physical
attributes of Lux but he cannot add the glamour enjoyed by Lux through its ad campaign

— a beauty soap for film stars.

9. Builds brand equity: A strong brand franchise is one of the most priceless assets in
a company’s balance sheet. Brand equity involves increasing the value of the brand
throughout its life.
10. Encourages competition: Advertising makes room for more players to enter the
market. It enables small manufacturers to enter the market and break the monopoly of
longstanding brands of large companies. For example, Wipro has launched a range of
baby care products in direct competition with the well established brand Johnson &
Johnson.
11. Builds corporate image: Institutional advertising promotes the image of the
company not only as a marketer but also as a desirable employer and a sound financial
investment.
12. Improves dealer support: Manufacturers have to pay lesser margins to middlemen
for advertised products. The clout of the middlemen is also reduced as manufacturers
directly appeal to consume through advertising and retailers are compelled to stock
products that are demanded by consumers. Advertising uses the pull strategy to bring
consumers into the retail outlets. Simultaneously retailers are induced to push the
product offering attractive schemes and trade deals.

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13. Crisis management: Most companies experience a crisis atleast once in their life. If
they have not built a desirable image, over t years, they may just go under and collapse.
Advertising helps company tide over their crisis.
14. Defends a company’s position: Finally, a large volume d advertising is defensive
in nature. Seller “A” feels it necessary to advertise because its competitors “B” and “C”
are advertising their products. Seller “A” advertises to ensure that his market share is n
snatched away by a competitor.
b) Retailer
1. High sales turnover: Retailers usually have limited shelf space .they prefer articles
that are fast moving and do not occupy their shelf space for long periods. Quick
turnover increases their cash inflow and stabilizes their business.
2. Fixed prices: Advertised products have fixed prices and this improves the retailer’s
reputation and service to customers.
3. Self-service is possible: In departmental stores and super markets (for eg. Garware
super market) advertised products are immediately recognized and accepted by
consumers. Thus the retailer’s efforts are minimized.
4. Builds reputation: A retailer who stocks well-known brands is considered more
reputed than the one who does not do so. By stocking advertised brands the retailer is
projecting his image as a prestigious outlet.
5. Pop and. other display material: Manufacturers give retailers attractive POP
material to display. They also maintain window displays that improve the appearance of
the store.
c) Benefit to Consumers.
1. As a source of information: Advertising is an interesting source of information
about new products in the market and where and at what prices they are sold.
2. Entertainment: Advertising especially on television entertains as it inft)rms. Most
consumers like to watch ads.
3. Consumers’ range of choice. Advertising offers consumers an opportunity to
select from a range of products and several brands within each product range. For
example, there are more than 86 brands of cigarettes in the market.
4. Ensures fixed price and consistent quality: When a consumer repurchases a
branded and advertised product he is sure that he will get a similar quality at a fair
price.

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5. Lowers product prices: Effective advertising reduces production and marketing

expenses. If manufacturers decide to share their gain with consumers they will
benefit in the form of lower prices.
6. Increases consumer satisfaction: A consumer is looking for both physical and
psychological satisfaction. For example, when he buys Old Spice after shave, he
wants to experience its refreshing fragrance (a physical need) as well as experience
self-confidence (a psychological need).
7. Planning household budgets: Advertising informs consumers about bargain offers
and discounts and this helps consumers plan their expenditure. This is especially
important in the United States, where departmental stores and manufacturers offer
discount coupons via print advertisements.
8. Increases aspiration levels: Advertising makes consumers desire new
products. This in turn motivates them to earn more so that they can afford the
advertised products. Hire purchase schemes also motivate consumers to buy the
much advertised, expensive products.
d) Benefit to Salespeople
1. Open doors: Advertising familiarizes consumers with the brand name and company
reputation. It is easier for sales people to get consumers to listen to them when they are
selling advertised products.
2. Selling is more effective: Advertising has pre-sold the pr and the job of the sales
person is much easier.
3. Confidence level increase: Sales people feel more confident while selling
advertised products. This is evident in the performance sales people from Eureka
Forbes and Ceasefire.
4. Creditability is established: It is easier for the sales person get cash payment or
cheque payment immediately, as the creditab of a sales person of a reputed company is
easy to establish
e) Benefit to Society and Economy
1. Stimulate the growth in the economy: Advertising stimulates demand,
encourages research and development, and fosters a competitive business
environment. All this leads to a vibrant economy.
2. Standard of living: Advertising increases aspiration levels which in turn
improves standard of living. It also encourages product increases employment and

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therefore increases wage levels.

3. Public service advertising: Advertising such as anti-population growth, public
health care, safe driving and national integration have improve our social life.
4. Supports media: Advertising supports media by contribute almost 60% of its
costs. Without advertising support newspapers would be more expensive and we
may have to pay a tax on television radio usage.
5. Reflects societal values: Advertising gives us a glimpse of value in our social
life. It brings people closer by communicating value cultures and attitudes through
the advertised messages.
6. Provides employment: Advertising is a well developed Profession which
provides an opportunity to creative writers and art among others.

Social issue in advertising

Culture is total of tangible and intangible concepts that define a way of life culture
include art literature, music (tangible) and knowledge, morals, customs, laws etc.
intangible). It covers the attitude and values of the whole society which are passed from
one generation to another. Habits, customs, attitude, beliefs and values are thus, a part
of culture. Advertising is a product of culture. Advertising is an art of persuasion, but still
people buy only those goods and services which they needs. What they purchase is the
outcome of the cultural values. The consumer’s behaviour is influenced by his family
status, family life cycle, social relations, opinion leaders, reference groups etc. The
value system is ever changing with the passage of time. With these changes on value
system, the role of advertising keeps pace with the changing times. Once a particular
set of values have been accepted by a society, the advertising as a social and business
process tries to bring all those goods and services which are made to respect the value
system.
Critics of advertising points out that mass media supported by advertising have
encouraged what is popular rather than what is good and in doing so have encouraged
materialistic values rather than cultural ones. They cite the examples of films, serials
that are shown on TV and on the big screen, which depicts scenes of rape, murders,
and other acts of violence and crime. However, there are various social, religious and
educational institutions to guide the people of a particular society in their behaviour. On

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the other hand, supporters claim that advertising do upgrade the cultural values for the
betterment of the society. They cite the instances of advertising campaigns on family
planning, drug abuse, noise pollution and other such public awareness advertising.

You may criticize advertising but cannot ignore it. You may dislike it but cannot escape
its influence. Advertising is an inescapable component of our lifestyles and it influences
us in several ways. Advertising is a tool that is used to achieve commercial objective. Its
primary task is NOT to act as a societal force but to sell a product/service.

Advertising and Dissemination of Information

It is often said: Knowledge is power. Advertising informs consumers. It is a medium of

communication between producers and consumers.. The power of retailers to
manipulate prices, indulge in hoarding and creation of artificial scarcity is reduced. This
is the single most important social function of advertising. Example: the National Dairy
Development Board (NDDB) has used such advertising to combat malpractices of
retailers, when the supply of Amul butter and Dhara cooking oil was erratic.

Advertising: A Positive or Negative Societal Force

Advertising is a powerful weapon which can be used by government, commercial

organizations, and consumer pressure groups.

The power of advertising is evident in the non-smoking campaign launched in the

different countries. The campaign is very successful. It has converted a permissive
society that placed individual freedom above all other considerations, to one that treats
smokers as social outcasts. Public awareness advertising in India is still in its infancy. It
does not have enough financial support but it has successfully challenged dogmatic
beliefs and practices such as discrimination against the girl child, and the dowry
menace. Advertising campaigns having themes such as: anti-illiteracy; anti-population
explosion; public health and cleanliness; pro-minorities and national integration;
conservation of water, petrol, electricity; road and pedestrian safety, have become a
positive societal force.

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Apart from public service advertising, commercial advertising can also indirectly act as a
positive change agent. The advertising of water filters and branded mineral water has
increased public awareness of safe drinking water. The entries of low-cholesterol, high-
nutrition products, that are heavily advertised, make people more health conscious.
All this leads to a more healthy society.

In India, advertising has also helped bridge the rural-urban divide. Advertising has
channelized latent demand in rural areas, which are now flooded with branded products.
When rural and urban Indians use similar products, the differences in their lifestyles are
reduced.

But advertising can also be a negative societal force when it perpetuates stereotypes,
such as, a wife is a super woman in the kitchen and office (Superflame cooking range)
and fair women are beautiful (Fair and Lovely, Fern bleaching cream). Advertising of
harmful products such as pan masalas, cigarettes, and liquor also have a negative
impact. Political advertising is a potentially dangerous weapon which can be used to
spread party propaganda.

Advertising and Cultural Values

There are certain values that are universal. Happiness as against sorrow, achievement
as opposed to failure, parenthood and work ethics. Yet, the manner in which these
values are defined and expressed may vary across cultures. These varying values,
which are commonly called cultural values, are derived from universal values that are
specific to a particular group, region or community. India. Even within a country like
India, success is defined differently, by people in the North, South, East and West.
Within each culture there are sub-cultures that have characteristics that may be different
from the group culture. For example, though Indian women are home loving, traditional,
conservative and religious, a subculture within this group is fast emerging that follows
different values. Members of this sub-culture are independent, modern, permissive and
ambitious
It is often asked: does advertising influence or does it reflect the cultural values of a
society? The goal of advertising is to promote a product/service and not to change
society. Advertising has to reflect and follow trends in society. If it moves in an opposite

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direction it will invariably fail. One striking example of this is the family planning
campaign launched by the government of India. Despite years of concerted effort, the
family planning programme has met with limited success. This is because traditionally
Indians believe that a large family is a happy family. A small family is only a compromise
situation borne out of economic necessity. It will take several generations for such a
belief to be altered by advertising.
Advertising does not in itself promote a culture. It merely depicts the lifestyles or values
inherent in the society. But it does so, aggressively- and dramatically. It projects even
the negative, often hidden values of a society and is therefore exposed to criticisms. For
example: The ad of Onida TV which says, Neighbour’s Envy, Owner’s Pride,” clearly
goes against the doctrine “Love thy neighbour as thyself.” Yet, it has been successful
because it exploited values that are not overtly expressed.
In international marketing, advertisers have realized the importance of adapting
advertising messages appropriate to varying cultures. Thus the ad of Lux—a beauty
soap for filmstars has the same theme in all countries, but uses different models, as the
concept of beauty varies across .
’ Public service advertising also tries to create new attitudes within the framework of our
culture. Apart from the content of the advertisements, advertisers can also enhance or
preserve our culture by sponsoring cultural events such as music, dance, puppetry,
books and journals.
Advertising and Standard of Living It has been generally agreed that advertising
helps improve the standard of living.
1. First is the economic effect that has been discussed at length in an earlier section. By
stirnulating growth in the economy, advertising increases productive use of resources,
increases employment levels, improves wages and therefore may lead to better
standard of living. This is true only if the expenditure on advertising is offset by
increased value of sales.
2. Secondly, advertising increases aspiration levels in society. Consumers become
aware of new products and services and aspire to enjoy them. The demonstrative
aspect of advertising is tremendous. In India, the rural areas are fast becoming
important consumption centres. Wrist watches, radios, shampoos, television sets and
even hair dyes are finding users amongst the rural population. This has been attributed
to television advertising.

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Financial advertising has a crucial role to play in improving standards of living. Till a
few years ago, Indians kept their savings either in the form of gold, estate or s bank
deposits. Though India has one of the highest rates of saving in the world, the savings
were channelized to buy physical assets and were not available for productive
investment. This has changed for the better since 1985. Financial advertising has
reached villages, towns, and cities and today farmers in the hinterland invest in mutual
funds, LIC policies and Unit Trusts. Groups such as Reliance have also successfully
used financial advertising to reach the masses. These efforts improve the real income of
consumers as their investments bring higher returns. The natural outcome of such
efforts is an improvement in the standard of living.

Ethical Aspects of Advertising

Advertising is any paid form of non-personal presentation and promotion of ideas,
goods, or services by an identified sponsor.. Advertising reflects contemporary society.
The making of an ad copy, its message, its illustrations, and the product advertised the
appeal-used all these have a social flavor. Advertising affects society and gets affected
by it. It is therefore, necessary to use this weapon with caution to avoid a corrosive
effect on social values.
To reach target markets and build brand equity in this cluttered market advertisers
sometimes overstep social and legal norms. Ethical norms deal with character, norms,
morals and ideals. They give an idea of what is fair or unfair or what is right and wrong.
The ethical principles underlie social policies and are dictated by the society we live in.
Like any other profession, the advertising field is governed by the laws and enactment
governing the mass media.
Ethics is a set of moral principles, norms or values. It is branch of social science. It
deals with good and bad with reference to a particular culture. It refers to the moral duty
and obligation and advertiser has towards the society. Moral principles are the rules or
Standards of what are “right” or “wrong”. Every advertising tries to persuade the people.
In the modern competitive market each advertiser wants to win over his rivals by
effective advertising. In this process, there are chances of hiding truth and facts in order
to succeed in increased sales and profit. But the advertiser has social and moral duty or
obligation towards consumers. An advertiser should maintain a high degree of ethical

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stands i.e. he must inform the facts or truth to consumers. An advertisement with false
claims may succeed in short run but it will definitely give a bad name to the product in
long run. Because one can fool some people all the time, and all the people for some
time, but one cannot fool all the people all the time.
If unethical practices are continued they will destroy the image of the business as a
whole and advertising itself will become less effective. Some of the moral codes
developed in advertising are :
1. It should avoid attacking competitors unfairly.
2. It shall be free from offensive to public decency.
3. It shall make clearest claims regarding price reduction guarantees etc.
Ethics, as a tool of communication, plays a significant role both in business as well as in
the profession of advertising, norms or ideals, that are accepted and upheld by the
society as essential to good life should be followed while advertising any products or
service, or, idea.
1. Ethics in advertising means that the advertisers should do only good advertising,
meaning thereby honest advertising. It means that only true facts, no exaggeration and
no lies, about the product, service, idea or institution should be stated, in clear Tenos, in
the ad.
2. Ethics in advertising also means that only good products, services and ideas should
be advertised and that took to the right consumers. Advertising for products like
cigarettes, beer, whisky, rum, gin, tobacco, pan parag and other harmful products
should be avoided.
3. Ads showing testimonials should be restricted to competent persons, who must
express honest views and choices.
4. Ads in poor taste and offensive to public decency with double meaning tone must be
avoided.
5. Ads should avoid attacking unfairly competitors. In sum, advertising should be
honest, objective, informative and persuasive in contents.
When is advertising deceptive- An advertisement is called deceptive when it misleads
people, alters the reality and affects buying behaviour.
1. Violates Consumers' Right to Information: Use of untrue paid testimonials to
convince buyers, quoting misleading prices, disparaging a rival product in a misleading
manner are some examples of misleading. Advertisers of anti- aging creams,

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complexion improving creams, weight loss programs, anti-dandruff shampoos, and

manufacturers of vitamins or dietary supplements are usually guilty of making
exaggerated product claims. Some of the examples of advertisements in this category
are:
" A fairness cream is advertised with the claim that its user will get a fair complexion
within a month.
" Parle G Original Gluco Biscuits puts a tall claim of being 'the World's largest selling
biscuits' on its package on the basis of the results of a survey done in the Year 2003 by
A. C. Nielsen.
" Advertisements by some financial companies such as doubling money in a given time
without base to justify claim are deceptive in nature.
2. Violates Consumers' Right to Safety When an advertisement for cooking oil says
that using the said oil frees the user from heart problems, then such an advertisement is
misrepresenting the facts. Companies advertise products highlighting health cures and
drugs of questionable efficacy and health gadgets of unknown values.
3. Violates Consumers' Right to Choice: When material facts which are likely to
influence buying decisions are not disclosed the advertisement becomes deceptive. In
several advertisements it is stated that 'conditions apply' but these conditions are not
stated.
4. Advertisements directed at children
. The ethical issues involved are advertisers try to exploit Young children by advertising
products that are not conducive to their health.
“Children are naïve and gullible and are vulnerable to advertiser's enticements.
“They lack independent judgment and experience.
“The line between the children's shows and commercials is fading
“Is the strategy of selling to parents by convincing the children a fair one? Most parents
would think it is unfair.
5. Puffery
It means the use of harmless superlatives. The advertisers use them to boast of the
merits of their products (best, finest, number one, etc.). Even law permits trade puffing
or exaggeration. But subjective statements of opinion about a product's quality are so
untrue that it becomes an outright spoof and which is not true
6. Use of sex appeals

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Sex appeal is used explicitly to sell all kinds of things. It is used to gain consumer
attention. It is used where it is not even appropriate to the product or service being
advertised. Women are shown as decorative objects or as sexually provocative figures
for advertisements for products and services where women are not required. The
corporate sector should be encouraged to eliminate the violation of women's rights
online and the internet service providers to undertake efforts to minimize pornography,
trafficking and all forms of gender based violence.
7. Bait advertising
It means taking advantage of consumer psychology and depriving consumers of a
choice. For example, a consumer is lured into a retail outlet by an advertisement for a
low cost item and then is sold a higher priced version or to be defective. Once the
consumer enters the store, he or she is pressured to purchase another more expensive
item. On visiting such stores, one finds a handful of outdated products on the discount
announced and other better products as 'fresh stock'.
8. Advertising of harmful products
Advertising is not restricted to products that are good for people. According to law in
India advertisements for cigarettes, liquor, paan masala, products that are harmful to
the public continue to find a place despite the ban imposed by the government in private
channels, cable, and through the use of surrogates. Examples include Mc Dowell's
Soda, and Wills lifestyle stores which are seen as surrogate advertising for Mc Dowell's
Whiskey and Wills cigarettes respectively. The issues involved are:
- Whether such products should be advertised or not?
- If they should be advertised, and they will need to be advertised so long as their
production is not banned, in what media should they be advertised?
- Further, if they are permitted to be advertised, whether the warning signs on the
packages of these products really serve any purpose?
The role of in-film advertising and surrogate advertising in promoting the sale of these
products also needs to be examined more closely. Advertisers pay film producers to
place their products in certain film scenes by integrating the products in the film scripts
and screen plays.

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Legal Aspects of Advertising

Unfortunately despite several laws meant to protect consumers against such unfair
trade practices, false and misleading advertisements continue to exploit the consumer.
A number of institutions are involved in regulating advertising. These are:
1. Self regulation by the industry
2. Regulation by the Government
In India the government assumes the role of regulating the business activity by bringing
a number of laws, regulations and codes.
The following laws have been enacted by the government, which contain provisions that
regulate advertising in India.
These laws can be divided into two categories.
Laws having horizontal application on advertising
1. The Consumer Protection Act, 1986.
2. The Emblems and Names (Prevention of Improper Use) Act, 1950
3. Trade and Merchandise Marks Act, 1958.
4. Cable Television Networks (Regulation) Act, 1995
5. Indecent Representation of Women (Prohibition) Act, 1986.
6. Monopolies and Restrictive Trade Practices Act, 1969.
7. Motor Vehicles Act, 1988
Laws having vertical application on advertising
1. Section 58 Companies Act, 1956
2. Drugs and Cosmetics Act, 1940.
3. Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954.
4. Pre-natal Diagnostic Techniques (Regulation and Prevention of Misuse) Act,
1994.
5. Prevention of Food Adulteration Act, 1954/ Food Safety and Standards Act,
2005.
6. Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
7. Prize Competition Act, 1955
8. The Infant Milk Substitute, Feeding Bottles and Infant Foods (Regulation of
Production, Supply and Distribution) Act, 1992 and Amendment Act, 2002.
9. Transplantation of Human Organs Act, 1994

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10. The Young Persons (Harmful Publications) Act, 1956

The following Regulatory authorities have power to regulate advertising in their
respective domain.
a. Insurance Regulatory Development Authority
b. Telecom Regulatory Authority of India
c. Securities and Exchange Board of India
d. Reserve Bank of India
e. Medical Council of India
Some of the important features of various laws concerning advertising are:
1. The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954
prohibits advertisements for products and services claiming to cure certain medical
conditions. As per the law, no advertisement should promise magical cure for any
ailments or disease and the rules specify the diseases and ailments that cannot be
advertised promising cure or remedies.
2. the Monopolies and Restrictive Trade Practice act, 1969, this Act is being
replaced by the Competition Act, 2002 but the cases pending under the MRTP
Commission are still being heard. Moreover, a Competition Commission has been set
up under the Competition Act to deal with monopolies and restrictive trade practices.
The complaints pertaining to unfair trade practices are still being handled by the MRTP
Commission or the consumer courts. The MRTP Act has been very effective in hauling
a number of advertisers to stop advertisements which are prejudicial to consumer
interest through its 'cease and desist orders'.
3. The Consumer Protection Act, 1986: The Consumer Protection Act, 1986, applies
to advertisements for all products in the market place. A consumer may file a complaint
related to false and misleading advertisements, which are included under the definition
of unfair trade practice (Section 2 (r) The law mentions seven classes of unfair trade
practices in six subsections of this section of the law. The consumer courts can
however, take the following actions under section 14 of the Consumer Protection Act,
1986:
" Issue interim orders stopping such advertisements pending disposal
" To pass cease and desist orders.
" Award compensation for loss or suffering, punitive damages and cost of litigation to
the affected party.

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" Direct the advertiser to issue corrective advertisement

4. Cable Television Networks (Regulation) Act, 1995: This law lays down the
procedure for registration of a cable television network and also regulates the
programmes and advertisements transmitted on cable network in India. The registering
authority is the Head Post Master of a Head Post Office of the area within whose
territorial jurisdiction the office of the cable operator is situated.
5. Drugs and Cosmetics Act, 1940
This law regulates the production, manufacture and sale of all drugs and cosmetics in
the country. The Act prescribes a fine of up to Rs. 500 for any person using any report
or extract of report of a test or analysis made by the Central Drugs Laboratory or a
government analyst for advertising of a drug or cosmetic.
6. Section 292 and Section 293 of the Indian Penal Code, 1860, prohibits the
dissemination of any obscene matter. The Indian Post Office Act, 1898, imposes a
similar prohibition on the transmission of obscene matter through the post. The
Customs Act, 1962, allows the detention and seizure of any obscene matter sought to
be imported into the country.
7. The Children's Act, 1960, prohibits the disclosure of names and address and other
particulars of any child involved in any proceedings.
8. The Indecent Representation of Women (Prohibition) Act, 1986 forbids the
depiction of women in an indecent or derogatory manner in the mass media. No person
shall publish, or cause to be published, or arrange or take part in the publication or
exhibition of, any advertisement which contains indecent representation of women in
any form.
9. The Emblems and Names (Prevention of Improper Use) Act, 1950, prohibits the
use by any private party of certain names, emblems, etc.
10. Motor Vehicles Act, 1988: This law affects outdoor advertisements, like bill boards,
posters, neon signs, etc. The Act, grants powers to remove such advertisements which
may distract drivers and have the potential of causing road accidents.
A number of regulatory agencies have also formulated advertising codes to ensure that
advertisers do not mislead consumers.
 Self regulation by the advertising industry
With the increasing criticism of advertising, advertisers have devised self regulation to
ensure true and accurate messages. Moreover, with the advent of new communication

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and information technologies, the national policy makers have also become less willing
and less able to intervene. Since print and audio-visual media exercise the essential
freedom of speech and they are financed by advertising revenues, media has always
resisted curbs thereby constraining the capacity of national governments to influence
media. Further, the business also realizes that the long term profitability of the
organization depends upon acting responsibly.
Agencies involved in self regulation
A number of agencies are involved. These can be classified into the following:
“Advertising trade associations
1. Advertising Standards Council of India (ASCI)
2. Advertising Association of India (AAAI)
3. Press Council of India
4. Prasar Bharti
“Individual media and media groups
1. Code for commercial advertising on Doordarshan
2. All India Radio Code for commercial advertising
 ASCI's code of Self Regulation says: "Advertisements should be truthful and fair
to consumers and competitors within the bounds of generally accepted standards of
public decency and propriety. Not used indiscriminately for the promotion of
products, hazardous or harmful to society or to individuals particularly minors, to a
degree unacceptable to society at large".
Unfortunately despite several laws meant to protect consumers against such unfair
trade practices, false and misleading advertisements continue to exploit the consumer.
Outdated laws, poor enforcement of them are some of the lacunas in order to control
advertising. The need of the hour is better laws in keeping with the times, better
enforcement, corrective advertisements, better self-regulation by industry independent
regulator to regulate health and children -related advertisements. Several consumers
and consumer organizations such as, Consumer Voice are fighting against the
misleading advertisements. Magazines such as, Consumer Voice, Insight publishes
advertisements running a column on misleading advertisements. They also request
consumers to share their opinions regarding various advertisements so that any
advertisement which is deceptive and false can be brought to the notice of the
regulators.

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Regarding misleading advertisements related to banks, consumers can complaint to the

Reserve Bank of India (RBI). Grievances regarding false advertisements by telecom
companies can be made to Telecom Regulatory Authority of India and insurance related
matters to IRDA.

AIDA MODEL of Advertising

The AIDA model is an approach used by advertisers to describe the different phases of
consumer engagement with an advertisement.
 AIDA stands for attention, interest, desire, and action.The AIDA model can be
used by organizations to guide marketers to target a market effectively.
 American advertising and sales pioneer, Elias St. Elmo Lewis, is credited for
developing the AIDA model.
AIDA Model

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.

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Car advertisements are prime examples of results stemming from the use of the AIDA
model to narrow the target market (Figure 1). 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.

History of the AIDA Model

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.

Lewis believed that if an advertisement contained these three qualities, then it was an
effective advertisement.

Improvements to the AIDA Model

New phases such as satisfaction (AIDAS) and confidence (AIDCAS) have been added
to the original AIDA model. These later models acknowledge the need to satisfy the
customer so as to encourage repeat purchases and generate product referrals. Other
modifications include the model’s reduction to the three steps known as the CAB model.
The steps include cognition (awareness or learning), affect (feeling, interest, or desire)
and behavior (action).

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Later developments also introduced more flexible uses of the AIDA model such as the
reordering of steps for different consumer-to-product relationships. Additionally, as
experts have examined the AIDA Model, more defined practices and theories have
been developed. These practices include the TIREA scale, which focuses on breaking
down the decision-making process into more defined components. The TIREA
represents thought, interest (desire), risk (evaluation), engagement, and action.

If you've ever been motivated to take action due to an advertisement, you've likely been
influenced by a technique called A.I.D.A, which stands for "attention, interest, desire,
action." This process is used by many marketers in their communications to entice
prospects to make a purchase or take a desired action. The technique is commonly
used in advertising vehicles such as television commercials and direct mail pieces.
Attention
The attention portion of the marketing message occurs at the beginning and is designed
to give the prospects a reason to take notice. Presenting a shocking fact or statistic that
identifies a problem which can be solved by the product or service is one common
method of gaining attention. Other methods can include asking a thought-provoking
question or using the element of surprise. The purpose is to give the prospects a reason
for wanting to learn more.
Interest
Once you've gained the prospects' attention, the next step is to maintain interest in your
product or service to keep the recipients engaged. Explain to the recipients how the
problem you've identified in the attention step is adversely affecting their lives. A
demonstration or illustration can help the recipients to further identify with the problem
and want to actively seek possible solutions. By personalizing the problem, you're
making it hit closer to home.
Desire
In the desire stage, your objective is to show the prospects how your product or service
can solve their problem. Explain the features of the product or service and the related
benefits and demonstrate how the benefits fulfill the need. A common advertising
process is the "before and after" technique, such as when a cleaning product makes a
soiled item look brand new. If done effectively, the prospects should now have the
desire to make a purchase.

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Action
Now that you've created the desire to make a purchase, the final step is to persuade the
prospects to take immediate action. In a one-on-one sales process, this is the time to
ask for the sale. In the advertising world, techniques involve creating sense of urgency
by extending an offer for a limited time or including a bonus of special gift to those who
act within a specific time frame. Without a specific call to action, the prospect may
simply forget about your offer and move on.

Car Advertisement
Advertisers can target a precise market by using the AIDA model to identify a narrow
subset of consumers that may be perceptive to the product offering. Car advertisements
are especially made to grab attention, pique interest, meet desires, and evoke action in
consumers.

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Integrated marketing communications (IMC)

Integrated marketing communications (IMC) is a process of managing customer
relationships that drive brand value primarily through communication efforts.
Advertising, Publicity, Public Relation, Sales Promotion, Personal Selling, Packaging,
Internet, Trade fairs and Exhibition, Sponsorship these are the main tools of IMSIMC
helps to create awareness of the products, provide the information of the new products,
act as a communication channel between the seller and the intermediaries and expand
the business.

Figure 17.4 Steps in Developing

Effective Communications
Identify target audience
Determine objectives
Design communications
Select channels
Establish budget
Decide on media mix
Measure results/ manage IMC
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 17-17

Identification of target audience, Determining the communication objectives,

Determining the message , Selecting the communication channel, Determining the
budget, Promotion Mix decision, Implementation of promotion mix and then Follow up
these are the main steps in designing IMC.

STEPS INVOLVED IN FRAMING INTEGRATED MARKETING COMMUNICATION:

It is likely that integrated marketing communication will be expected to make a number
of contributions toward meeting the marketing objectives. Thus the main steps in
designing IMC are:

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1) Identification of target audience: Defining the target audience is one of the first
steps in designing the IMC. While thinking about the target audience one must look well
beyond traditional demographic considerations. It is also important to 'think ahead 'and
ask the following question.
• What are the relevant target buyer groups?
• What are the target group's demographic, lifestyle, and psychographic profile?
• How is the trade involved?
2) Determining the communication objectives: The next step is setting the
communication objectives. There may be different communication objectives like
increase in sales, brand image and good will, expansion of business. Thus the seller
has to evaluate all this objectives and select the one which he intends to achieve.
3) Determining the message: An effective message should get attention, hold interest,
arouse desire, & obtain action (AIDA model). In practice, few messages take the
consumer all the way from awareness to purchase, but the AIDA framework suggests
the desirable qualities of a good message. In putting the message together, the
marketing communicator must decide what to say & how to say it. , who should say it.
Thus the communicator should focuses more on message content, message format and
message structure.
4) Selecting the communication channel: There are two broad types of
communication channels - Personal and Non personal.
a. Personal Communication Channels: In personal Communication channels, two or
more people communicate directly with each other. They might communicate face-to-
face, over the telephone, through the mail or even through an internet chat. Personal
Communication channels are effective because they are allowed for personal
addressing the feedback.
b. Non Personal Communication Channels: Non personal communication channels
include media at most yearend events.
Media consists of:
1. Print media -newspapers, magazines, direct mail etc.
2. Broadcast media-radio, television etc.
3. Electronic media-audiotapes, videotapes, CD-ROM, web page etc.
4. Display media-billboards, signs, posters, banners, hoardings etc.
Most of the non personal messages come through paid media.

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5) Determining the budget: This is one of the most important decisions of IMC
process. The effective IMC depends upon the budget set for communication Mix. The
marketer prepares the budget taking into nature of the customers, objectives, nature of
competitions and also availability of funds.
6) Promotion Mix decision. After determining budget it is essential to determine the
promotional mix. Promotional mix is the combination of various tools like advertising,
public relation, personnel selling and so on. Because of different marketing environment
thee has to be variation in communication mix. One medium which is effective in one
market may not be equally effective in another market.
7) Implementation of promotion mix: The marketer then makes an arrangement to
implement the communication mix. The seller has to select the right media in order to
put across the promotion message.
8) Follow up. Here the advertiser has to review the performance in terms of sales and
purchase. If the performance is as per communication objectives there is nothing to
worry. On the other hand if the performance falls below the communication objectives
then certain corrective step have to be taken.

*******

Disclaimer: The study material is compiled by Ashok GAUR The basic objective
of this material is to supplement teaching and discussion in the classroom in the
subject. Students are required to go for extra reading in the subject through
Library books recommended by Sardar Patel University, Vallabh Vidyanagar.

QUESTION BANK
(Use Ready Made QB provided by Department/ University (For Semester Programs)
Use probable questions (For Yearly Programs, Also refer latest question papers from
library))

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