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Semiester - 4
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 Advertisi 2

Unit:-1 Advertising
The word advertising is derived from a Latin word advertising which means to turn attention toward a specific thing .Advertising
is any paid form of non personal presentation and promotion of ideas, goods or services by identified sponsor. Advertising can be
cost effective way to disseminate messages, whether to build a brand preference or to educate people. In developing an
advertising perform, marketing manages must always stand by identifying the target market and buyer motives.
Then they can make the five major decisions, known as "the Five M5.
 Mission: what are own advertising objectives?
 Money: How much can we spend?
 Message: What ménage should we send?
 Media: What media should we use?
 Measurement: How should we evaluate the results?
According to Wheeler- Advertising is any form of paid non-personal presentation of ideas, goods or services for the purpose of
inducing people to buy.

Characteristics of Advertising
 It is non-personal communication to specific audience or consumers.
 It is a paid form of communication.
 It may be visual spoken or written.
 It presents the massage about the product.
 It is the promotion of idea, goods and services.
 It stimulates sales or patronage for the product.
 It helps indirectly for position the product in the market.
 It persuades people to buy a product.

Nature of Advertising
 Does the product possess unique, important features to focus on Unique Selling Point (USP?)
 Are the hidden qualities important to the buyers?
 Is the general demand trend for the product adequate?
 Is the market potential for the product adequate?
 Is the competitive environment favorable?

Scope of Advertising
 Mass communication of consumers, user, manufactures e.tc
 Providing support to the dealer distributer whole seller & the sale force.
 Maintenance and development of brand image and loyalty amongst the customer
 Increasing the area of advertising from local to regional, national and international fields.
 Evolution & development of different media of advertisement

Functions of Advertising
 To differentiate the product from their competitors - It includes the ability of advertising to differentiate a product so that
it has its own unique identity or personality. This creates an awareness of the product & chooses the advertised product
over other products this creates an awareness of the product Example: GARNIER FRUTICS (shampoo) bottle have the
different color from all other shampoo.
 To urge product used - advertising is to induce consumers to try new products and to suggest reuse of the product as well
as new uses; this is the persuasion function becoming the base on which they shape their future decisions. Sampling in the
way to urge the product using Example: Neutrogena acne treatment cream will remove your pimple is 24 hours.
NEUTROGENA say no to pimples!!
 To expand the product distribution - When the consumer comes to know about the particular product from the
advertisement he/she wants to try that new product. They go to shops to buy the product; if the new product is not
available in a shop then the shopkeeper consults the distributor to make that product available in his shop.
 To increase brand preference and loyalty - When the product delivers the promised quality, service and value .Satisfied
customers also develop brand preference; each product features and uses are written on the product. Example: 99%
girls
 Advertisi 3

who are not married will not look at the ad of pampers or any milk powder for children but when they will get married
their interest will automatically move towards such ad'
 Brand loyalty – It is a long-term customer preference for a particular product or service. It can be produced by factors
such as customer satisfaction with the performance or price of a specific product or service. For instance, when one buys
a tube of Colgate toothpaste and finds it ok, one will not have to spend any valuable time on looking for other toothpaste
brands.
 To reduce overall sales cost - When a product is selling you have to teach the people about the product. Like if we would
advertise through newspapers, TV, broachers & internet, it would cater huge sum of masses and if you do individually it
would be more costly & time consuming.
 Creates new demands - Each year new products, including line extensions and new brands are introduced into groceries and
drugstores. Example: Wateen telecom is offering wireless internet chips, video conferencing and WIMAX services as they are
introducing new services in market its creating new demands.

Types of Advertising
 Print Advertising - Newspapers, Magazines, Brochures, Fliers
 Outdoor Advertising - Billboards, Kiosks, Trade-shows and Events
 Broadcast Advertising - Television, Radio and the Internet
 Covert Advertising - Advertising in Movies
 Surrogate Advertising - Advertising Indirectly
 Public Service Advertising - Advertising for Social Causes
 Celebrity Advertising

Role of advertising
1. Manufacturers –
 It make mass selling possible
 It helps easy introduction of products in the market
 It protect from unfair competition
 It helps in creating brand image & goodwill.
2. Wholesaler & Retailers –
 It ensure economical selling
 It enables them to have production information
 It facilities selling
 The reputation created by advertising is also shared by wholesaler & retailers.
3. Consumer –
 It helps in decision making (selection)
 It helps the consumer to know where and when the products are available.
 It acts as an informative service and educates the consumers.
 It enhances consumer's satisfaction.
4. Sale Force –
 It makes the task of the salesman easier and simpler
 It makes the introduction of the product quite easy and convenient for sales man
 It helps in establish permanent relations with the customers.
5. Community or Society –
 It creates employment directly or indirectly.
 It is responsible for higher standard of living of the people.
 It is educative in nature.
 It makes newspaper e.tc alive
 It promotes art and initiative

Limitation of advertising
 Advertising is repetitive in nature.
 Without effective salesmanship advertising cannot achieve the desired objectives.
 If the demand of the product is inelastic then it cannot be increasing by advertising.
 Products have life circle and need to be advertised as long as they survive.
 Advertisi 4

Unit 2 Economic & Social Aspects of Advertising

Advertising is praised but also criticized by critics in their own ways. Advertising has many positive impacts along with its negative
pictures. As the President of American Association of Advertising Agencies, John O’ Toole has described advertise is something
else. And it is not an entertaining device but entertains everyone. Now let’s go through the economic and social aspects of advertising.
Economic role of Advertising
 Value of Products: advertising helps increase value for the products by showing the positive image of the product which
in turn helps convincing customers to buy it. For e.g. mobile phones were first considered as necessity but nowadays the
cell phones come with number of features which makes them mode of convenience for consumers.
 Effect on Prices: some products do not advertise much, and they don’t need much of it and even their prices are high but
they are still the leaders in market as they have their brand name. e.g., Porsche cars
 Effect on consumer demand and choices: Even if the product is heavily advertised, it does not mean that the demand or
say consumption rates will also increase. The product has to be different with better quality, and more variety than
others. E.g., Kellogg’s cornflakes have variety of flavors with different ranges for different age groups thus giving
consumers different choices to select from.
 Effect on business cycle: It helps collecting more revenues for sellers which they use for betterment of product and
services. But there are some bad effects of advertisements on business cycle also. Sometimes, consumer may find the foreign
product better than going for the national brand. This will definitely effect the production which may in turn affect the
GDP of the country.
Economic Aspect Objection:
 It does not produce any tangible goods so it is not productive
 It increase cost of goods
 It multiple the needs of the consumer
 It creates Monopoly
 People are forced to purchase those advertised goods which they do not need at all so it encourages waste
Social role of Advertising:
 Deception in Advertising: The relation between the buyers and sellers is maintained if the buyers are satisfied with what
they saw in advertise and what they got after buying that product. If seller shows a false or deceptive image and an
exaggerated image of the product in the advertisement, then the relation between the seller and buyers can’t be healthy.
 The Subliminal Advertising: The ads are made in such a way that the consumers don’t even realizes that the ad has made
an impact on their minds and this results in buying the product which they don’t even need. But “All ads don’t impress all
consumers at all times”, because majority of consumers buy products on basis of the price and needs.
 Effect on Our Value System: The advertisers use puffing tactics, endorsements from celebrities, and play emotionally,
which makes ads so powerful that the consumers like helpless preys buy those products just because their favorite actor
endorsed that product. This affects in increased the cost of whole society and loss of values of our own selves.
 Offensiveness: Some ads are so offensive that they are not acceptable by the buyers. For example, the ads of denim jeans
showed girls wearing very less clothes and making a sex appeal. These kinds of ads are irrelevant to the actual product.
Btu then there is some ads which are educative also and now accepted by people. Earlier ads giving information about
birth control pills was considered offensive but now the same ads are considered educative and important.
But at the last, there are some great positive aspects which help
 Development of society and growth of technologies
 Employment
 Gives choices to buyers with self interest
 Welcomes healthy competition
 Improving standard of living.
 Give information on social, economical and health issues
Social Aspect Objection:
 Misrepresentation of facts – Most of advertises contain tall claims in favour of their products simply to tempt people to
purchase the same.
 Press in influence by the advertiser – It influence the newspaper and journals as it provide the major source of revenue to
them. They print and publish whatever the advertiser demands and not at their own will.
 Wastage of natural resource – It is responsible for frequent change in the system, fashions and habits of people and
consequently it destroys the utility of the goods much before their normal use. It leads to rejection of old models and
adoption of new ones.
 Advertisi 5

Unit 3 Advertising Process, Objective & Budget

Advertising is to call public attention to, especially by emphasizing desirable qualities so as to arouse a desire to buy or patronize
a product or service. Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an
identified sponsor. “Mass demand has been created almost entirely through the development of Advertising”

Advertisement Process:-
1. Steps 1 - Briefing: the advertiser needs to brief about the product or the service which has to be advertised and doing the
SWOT analysis of the company and the product.
2. Step 2 - Knowing the Objective: one should first know the objective or the purpose of advertising. i.e. what message is to
be delivered to the audience?
3. Step 3 - Research: this step involves finding out the market behavior, knowing the competitors, what type of advertising
they are using, what is the response of the consumers, availability of the resources needed in the process, etc.
4. Step 4 - Target Audience: the next step is to identify the target consumers most likely to buy the product. The target
should be appropriately identified without any confusion. For e.g. if the product is a health drink for growing kids, then
the target customers will be the parents who are going to buy it and not the kids who are going to drink it.
5. Step 5 - Media Selection: now that the target audience is identified, one should select an appropriate media for
advertising so that the customers who are to be informed about the product and are willing to buy are successfully
reached.
6. Step 6 - Setting the Budget: then the advertising budget has to be planned so that there is no short of funds or excess of
funds during the process of advertising and also there are no losses to the company.
7. Step 7 - Designing and Creating the Ad: first the design that is the outline of ad on papers is made by the copywriters of
the agency, and then the actual creation of ad is done with help of the art directors and the creative personnel of the agency.
8. Step 8 - Perfection: then the created ad is re-examined and the ad is redefined to make it perfect to enter the market.
9. Step 9 - Place and Time of Ad: the next step is to decide where and when the ad will be shown. The place will be decided
according to the target customers where the ad is most visible clearly to them..
10. Step 10 - Execution: finally the advertise is released with perfect creation, perfect placement and perfect timing in the
market.
11. Step 11 - Performance: the last step is to judge the performance of the ad in terms of the response from the customers,
whether they are satisfied with the ad and the product did the ad reached all the targeted people.
If these steps are followed properly then there has to be a successful beginning for the product in the market.

The objective of advertising - The long-term objective of advertising, as of every other business activity, is to increase the
firm’s net profits over what they would be without it. In some cases, increased profits are also immediate objectives; but in others,
they are not. Perhaps the most important short-term objective of advertising is to provide support for personal selling and other
methods of promotion. Advertising is almost never used alone; generally it is cast in a supporting role to other means of promotion.
However, advertising is an extremely versatile communications tool. Depending upon the marketing situation, companies use
advertising to achieve various marketing objectives:
 To do the entire selling job (as in mail-order marketing)
 To introduce a new product (by building brand awareness among potential buyers)
 To force middlemen to handle the product (pull strategy)
 To build brand preference (by making it more difficult for middlemen to sell substitutes)
 To remind users to buy the product (retentive strategy)
 To publicize some change in marketing strategy
 To provide rationalizations for buying
 To combat or neutralize competitors; advertising efforts
 To improve the morale of dealers and/or salesmen
 To acquaint buyers and prospective buyers with new uses of the product.
However, for companies operating under the marketing concept, it is important to bear in mind that advertising should also serve
as an effective and efficient source of information for members of the audience. Following the logic of the marketing concept, an
information source can only maximally serve the advertiser’s purposes when it serves the target audience’s purposes.
 Advertisi 6

Budgeting For Your Advertising Campaign - If there is a golden rule for running an advertising campaign, it is that you
have to stick to it. Sustained Advertising = Recognition = Trust = Sales.
Your advertising campaign is a long-term investment that takes time to show a return. Your budget must reflect this reality.
When setting your advertising campaign budget, there are two costs to consider:
 Production costs,
 Media costs.
Budgeting for both is critical for success.
1. Advertising Production Costs: We certainly do not want you wasting money on your advertising campaign. Companies
that cut corners on advertising planning and production are wasting a large percentage of their budget.
 Quality advertising production costs money - high quality advertising production really worth it for your
advertising campaign? If you did everything right with your advertising, in theory you could reach your target
market 100% of the time with the right message
 Here is one more thing to consider: Good planning and production work have a long life span. Many companies
never change their basic message and advertising. They start with professional marketing and production, and
they use it indefinitely.
 Make no mistake: Advertising planning and high quality production are critical to your advertising campaign.
Professionally produced materials make you look good, and they bring you customers. That is what Professional
Advertising is all about.
2. Setting a Media Budget: Setting a media budget for your advertising campaign can be tricky, especially for new
companies. Spending too little on your advertising campaign will cost you more than spending too much. You need to
stay in front of your customers. A random or infrequent advertising campaign schedule equals wasted money. If you
want to grow your business, you will probably want to invest more than your competitors are spending as a percentage
of sales. A larger company will do better to spend money on some combination of print, mail, radio, Internet, outdoor,
and/or television advertising than to spend the budget all in one place. For smaller companies, you will do better to
spread your advertising campaign budget between print and direct mail to get the best return for your investment. But
there are no hard rules in advertising. You will also get a better response if you run smaller, more frequent ads. Don’t
trade frequency for a one-time big bang in your advertising campaign. Don’t trade frequency in print for a less frequent
television schedule.

Here are some of the methods companies use to set their advertising campaign budgets.
 The Task Objective Method: How much money do you need to spend to reach the specific goals for the advertising
campaign? This is especially effective when you are trying to grow rapidly. Some advertising campaign strategies call
for heavy spending upfront in order to win long-term customers.
 The Historical Method: How much did you spend to reach your sales goals in previous years or periods? You will find
that by tracking your ads, you will know in advance what you need to do to accomplish your goals.
 Share of Market & Voice: This method links market share to advertising expenditure. A company with a 20% market
share would spend slightly more than 20% of the total advertising dollars spent in the market for that product or service.
 Competitive Parity: With competitive parity you spend in equal amounts to your competitors as a percentage of
market shares. This is a self-defense method of budgeting marketing and advertising expenditures.
 The Combination Method: The best advertising campaign budget you can set will be based on some combination of
all of the previous models. You want to maintain a minimum level of advertising, fulfill specific goals, maintain your
market share, keep up with your competitors, and compare everything to last year.
 The Percent of Sales Method: The advertising campaign budget is a constant percentage of desired sales. A car
manufacturer may spend less than 1% of sales, while a small retailer may budget 3 -7% of sales. A jewelry store may
budget 8 -12% of sales and other companies may budget 20% or more. If the budget is set to actual sales, and sales
drop, you do not want to cut your advertising campaign budget, or you will get caught in a downward spiral.
 Advertisi 7

Unit 4 Creative Aspect of Advertising

Creating or building of advertising programme:- The Design and production process of the ad involves a
numbers of activities including writing copy , developing illustration or other visual elements to be included in the ad and bringing
all pieces together to create an effective ad message Creative advertising is advertising that sells. It's not necessarily clever, witty
or memorable. It's advertising that simply works.

The key format elements in print advertising are - headline, body copy, logo, illustration, appeal, Layout.
1. Headline: - The headlines are the words in the leading position in the advertisement. These are the words that will be
read first or are positioned with the intent to draw the reader immediate attention. The headlines are almost invariably
set in the large, dark type and generally set apart from the body copy to make them prominent. There is no formula that
can be recommended for writing a good headline. A number of factor need to be considered for writing an effective
headline.
 It should use short simple words
 It should include an invitation to the prospect
 The words in the headline should be selective, appealing only to prime prospect
 It should include an action verb
 It should furnish enough information.
Sub Headline: - Most ad have only headline but one or more secondary heads called subheads. A subhead is an additional
smaller headline that may appear above or below the headline. Sometimes it also appears in the Body copy.
2. Body Copy: - The main text portion included in the advertisement is called a Body copy. It contains completes sales story and
is logical continuation of the headline and sub heads. It covers the attributes, benefits and the utility of the product or
service.
3. Slogans (Themes lines or Taglines):- Many slogans are used as successful headlines. It provides continuity to a series of
ads in a campaign and also helps in creating positioning statements. For example – Nokia uses the slogan "Connecting People"
4. Seals, Logo & Signatures: - A seal is awarded when the product meets the standard established by a particular agency
such as ISI mark, ISO 9002 e.tc these seals provide an independent valued endorsement to the product. Logo & Signature
are special design of the advertisers company or the products name. It appears in all the company ads are immediately
recognized and give the product identity.
5. Illustration or Visual: - Visual are a major component in print advertising. It is often dominant and plays a critical role in
determining effectiveness. The visuals capture a mood and evoke a feeling, a context for the consumer perception of the
product or service. The purpose of visual elements –
 To capture the reader attention
 To clarify claims made by the advertising copy.
 Show the product in actual use situation
 Convince the reader about the copy claims
 Create a positive impression of the brand.
6. Layouts: - It is an orderly physical arrangement of headlines, body copy, slogan, logos, signature &the visual elements into
a finished advertisement. It shows where each components of the as will be placed and gives guidelines to the people working
on the ad creation.
7. Advertising Appeals – The advertising appeal is the central message to be used in the ads. The selection of primary appeal
is key to any ad campaign. Many researches techniques such as concept testing, focus group and motivational research
can be used to determine which appeal to use &attract the attention of consumer, arouse their desire or influence feeling
and thus address human needs or wants
Kinds of appeals – Different appeals can be used as the basis for advertising messages. It can be grouped as –
 Rational / informational appeals – These appeals address the consumer's self interest and focus on negativity
originated motives. The appeals attempts to convince suitability of advertised product to satisfy their needs it
also claim that the product or service will produce particular benefits such as quality, performance, comport e.tc.
William Weilbacher has identified several types of rational appeal. Some of them are - *feature appeal *competitive
advantage appeal *favorable price appeal *news appeal *product or service popularity appeal.
 Emotional / transformational appeals. – This appeal relates to the customers social and psychological needs and
stirs up positive or negative emotion that can motivate purchase of product or service. The appeal promises a
bonus rather than the removal or avoidance of some negative situation. It focuses on psychological states of
feeling such as safety, pleasure, excitement, fear, recognition, status, esteem e.tc. Those appeals are used to
evoke positive feeling that may get transferred to the brand.
 Advertisi 8

Unit 5 Types of Advertising Media, Media Planning & Scheduling:-

Advertising Media - Advertising is a way of promoting a product or a brand through different mediums. In broader terms, we
can say that advertising is an act of getting people's attention towards a brand .If a product is advertised well and its information
reaches to the masses; the chance of it being sold too increases. Therefore, advertising is very essential for the sale of a product.
“An advertising media is the vehicle, carrier or means through which an advertisement on advertising message is conveyed to the
individuals or groups which is hoped to influence.”
While choosing a media for advertising few things must be kept in mind, out of which the most important factors are:
 The media should be easily accessible to the public.
 It should be made sure that medium chosen is popular among the masses.
 The theme chosen for advertising must be attractive and attention diverting.
If the media chosen for advertising something is popular amongst the masses then the chances of more people getting to know
about it increases. Hence, popularity of the medium is most important factor for an advertising media. The ads play a very important
role. People only pay attention to those ads that are compelling and draw their attention towards them.

Types of advertising media are:

 Radio - The radio commercials are audio and not visual it’s important that the audio commercial made is well spoken and
has sounds and words that catch the attention of the listener.
 Hoardings, Boards and Posters - These media are an excellent source for advertising especially large hoardings on the
roadsides. However in order to grab the attention of a passerby these boards and posters of course have to be attractive
and must be bold and clear.
 Newspapers and Magazines - News papers are yet another very common and a very old media for advertising. Small or
large ads can be given on a newspaper either on the side of a news column of in front of the paper. Magazines are also
very popular among the masses and an advertisement given in a magazine is sure to grab attention.
 Telephones and Mobile Phones - These media are not very commonly used but are in many cases used as the media for
advertising. Mobile telecom companies advertise their new packages by sending sms to their users. Companies to
companies advertisement takes place through telephones commonly.
 Internet - Internet in today’s world can be stated as one of the best media for advertising. Ads can be given on the sides
of popular websites most importantly on social networking websites that are extremely popular amongst the youth.
 Television - It is an excellent media for advertising something as it is one of most commonly used medium by the masses.
While making a TV commercial it is very important that the theme of the commercial is good it is well made and the
concept should compel the viewer to look at it rather than changing the channel during a commercial break of a
program. A famous figure used as model for selling the product diverts people attention more.
 Advertisi 9

Media Planning - An advertising media plan is a strategy for marketing your business through certain media channels to
achieve a business goal such as raising brand awareness to obtain new customers. Media planning will ensure you are putting
your advertising message in front of the right audience using the right media channels, where your customers are most likely to
see. And most importantly, effective media planning will improve your advertising ROI. Its success depends on careful research
and implementation, as well as your knowledge of media buying and basic marketing strategies. Media planning process starts
with a review of the industry and competition and an evaluation of available media research to understand the consumer habits
and motivations that may impact their response to your advertising. Then, we design a customized media strategy, based on a
careful examination of your business, your competitive position and your unique marketing goals and objectives. Finally, a strategic
calendar of advertising activity is recommended that provides for effective utilization of your advertising budget. This media plan
will provide a framework within which the media buyers can evaluate various media proposals and then negotiate purchase and
schedule the media.

The components of advertising Plan:

 Setting up Advertising Objectives
 Advertising Budget
 Message Strategy
 Media Strategy.

Why You Need an Advertising Plan - The most creative advertising in the world is worthless if it misses the target audience.
The best offer in the world is worthless if it does not offer the benefits your clients want. Even well planned and executed advertising
has little value if you don’t keep it in front of your customers. Effective advertising comes from good planning, good budgeting, a
long- term commitment, and a lot of work. You need great ads that get results.
 Effective advertising lowers your cost of doing business.
 Minimal, limited duration or random advertising equals wasted money.
 Advertising is not creative or funny if it does not bring in clients.
 Advertising has a cumulative effect, and is a long-term investment.
 Sales response builds over time if advertising is consistent.
 Effective advertising comes from solid planning and high quality production.
 Synergy is a real thing in advertising.
 Advertising cannot make up for poor quality, service, or timing.

Media Scheduling - Media scheduling refers to the programming of media insertions. The media planners are prepare a media
schedule. Media scheduling depends upon a number of factors such as:
 Nature of product- consumer usable, durables or industrial
 Nature of sales-whether seasonal or regular sales.
 Product lifecycle- whether introduction, growth, maturity or decline.
 Pattern of competitor’s programmers'.
 Entry of new competitors.
 Availability of funds for advertising.
The schedule shows the number of advertisements that are to appear in each medium, the size of the advertisements, and the
date on which they are to appear. There are many ways of scheduling any advertising programme. No single way can be said to
be best for all advertisers. Each advertiser must prepare a specific schedule most suitable for its market and its advertising
objectives. What may be good for one advertiser and his product may be bad for another. Even for the same advertiser, the best
at one stage of the product life cycle may not be suitable at another stage. An advertiser, for example, may schedule to buy six pages
space in a monthly consumer magazine. Alternatively, he may buy one-page space every month for the first three months; then he
may not buy space for the next three months; and then again take one-page space every month for the next three months. There
may be a variety of schedules of advertisements. The last method of scheduling is known as the wave method, or the flighting
method. In flighting, advertisements are bunched with the intention of providing a concentrated impact. The other method is the
blitz schedule. The insertion of double-page advertisements in three consecutive issues of a magazine is an example of the blitz
schedule. There are many more methods of bunching advertisements. However, the purpose of bunching is to provide concentrated
impact with a single issue of the publication
 Advertisi 1

Unit 6 Advertising Agency and its Role –

“The work of a tailor is to collect the raw material, find matching threads, cut the cloth in desired shape, finally stitch the cloth
and deliver it to the customer.” Advertising Agency is just like a tailor. It creates the ads, plans how, when and where it should be
delivered and hands it over to the client. Advertising agencies are mostly not dependent on any organizations. These agencies
take all the efforts for selling the product of the clients. They have a group of people expert in their particular fields, thus helping
the companies or organizations to reach their target customer in an easy and simple way. The first Advertising Agency was William
Taylor in 1786 followed by James “Jem” White in 1800 in London.

Why do they need advertising agencies?

 They work with an objective and are very professionals.
 Hiring them leads in saving the costs up to some extent.
 The agencies make optimum use of these people, their experience and their knowledge.
 The agencies are expert in this field. They have a team of different people for different functions like, art directors,
planners, etc.

Role of Advertising Agencies

 Creating an advertise on the basis of information gathered about product
 Doing research on the company and the product and reactions of the customers.
 Planning for type of media to be used, when and where to be used, and for how much time to be used.
 Taking the feedbacks from the clients as well as the customers and then deciding the further line of action.

There are 5 types of advertising agencies.

1. Full service Agencies-
 Large size agencies.
 Deals with all stages of advertisement.
 Different expert people for different departments.
 Starts work from gathering data and analyzing and ends on payment of bills to the media people.
2. Interactive Agencies –
 Modernized modes of communication are used.
 Uses online advertisements, sending personal messages on mobile phones, etc.
 The ads produced are very interactive, having very new concepts, and very innovative.
3. Creative Boutiques –
 Very creative and innovative ads.
 No other function is performed other than creating actual ads.
 Small sized agencies with their own copywriters, directors, and creative people.
4. Media Buying Agencies –
 Buys place for advertise and sells it to the advertisers.
 Sells time in which advertisement will be placed.
 Schedules slots at different television channels and radio stations.
 Finally supervises or checks whether the ad has been telecasted at opted time and place or not.
5. In-House Agencies –
 As good as the full service agencies.
 Big organization prefers these types of agencies which are in built and work only for them.
 These agencies work as per the requirements of the organizations.
There are some specialized agencies which work for some special advertisements. These types of agencies need people of
special knowledge in that field. For example, advertisements showing social messages, finance advertisements, medicine
related ads, etc.
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Functions of Advertising Agencies - Today advertising agencies are found in virtually every major city on the world and their
role in stimulating economic growth is solidly established. To understand advertising, we need to examine the functions of an Ad
Agency.
 Talent & Creative productions: The basic function of an Ad Agency is providing talent. A business organization or person
will contract the services of an ad agency to help market a product. This function involves processing the information
collected from the client and through research and designing communication material in the form of advertisements and
other publicity material. This also includes planning creative strategies, script writing, visualization, designing, layout,
shooting of films, editing, giving music, etc.
 Research: In order to distribute the message to the public successfully, the agency must first know all that it can about
the product. One of the first jobs is to research the product and the company. The research must even take one close to
the heart of the firm’s inner operations. Ad agencies use research as a tool to test consumer reactions to products and
services.
 Distribution & Media planning: Here you decide what type of message you will create for the company and what media
will be most helpful in sending this message to the public. On the basis of the media habits of the target audience, agency
people prepare a media plan. This plan includes which media to be used, which part of the media to be used, when to
place the ads and for how long to place the ads, etc. media planners keep track of the viewer ship, listener ship and
readership of all kinds of media.
 Monitoring Feedback: By monitoring consumer feedback, a decision on whether to revise the message, the medium, the
target audience or all of them can be made. As information is the backbone of all advertising, to prepare ads, one
requires information about the product; its competitors, the market situation and trends.
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Unit 7 Measuring Advertising Effectiveness -

All advertising efforts are directed mainly towards the achievement of business, marketing and advertising objectives i.e., to increase
the sales turnover and thus to market the maximum profit. The advertiser spends lakhs of rupees in to this advertising activity. In the
background of all these efforts, is an attempt to attract the customer towards the product through advertising. As soon as the
advertising campaign is over, a need is generally arisen to measure the effectiveness of the campaign. Whether, it has achieved
the desired results in terms the change in customer’ behavior in favor of the company’s product In order to measure the
effectiveness of advertising copy, two types of tests pre tests and post tests- can be undertaken. There are several pre and post
tests techniques to measure the effectiveness of the advertising copy.

The effectiveness of advertising in a particular media may also be measured in any of the following ways;
 By giving different addresses to different media,
 Different newspapers may be selected for advertisements of different departments,
 Coupon blank etc. May be provided with the advertisement
 Enquiry from consumers should mention the name of the source of information.
The technique is known as keying the advertising. Thus in measuring the effectiveness of advertising we include measuring of the
effectiveness of advertising campaign, advertising copy and the effectiveness of individual media.

Importance of measuring the Effectiveness of Advertising

 It acts as a Safety measure: Testing effectiveness of advertising helps in finding out ineffective advertisement and
advertising campaigns. It facilitates timely adjustments in advertising to make advertising consumer oriented and result
oriented.
 Provides feedback for remedial measures: Testing effectiveness of advertising provides useful information to the
advertisers to take remedial steps against ineffective advertisements.
 Avoids possible failure: Advertisers are not sure of results of advertising from a particular advertising campaign.
Evaluating advertising effectives helps in estimating the results in order to avoid complete loss.
 To justify the Investment in Advertising: The investment in advertising is a marketing investment and its objectives should
be spelt out clearly indicating the results expected from the campaign. If the expected rate of return is achieved in terms
of additional profits, the advertisement can be considered as effective one.
 To know the communication Effect: The main purpose of advertising is communicated the general public and existing and
prospective consumers, various information about the product and the company. It is therefore desirable to seek post
measurements of advertising in order to determine whether advertisement has been seen or heard.
 Compare two markets: Advertising is published in test markets and results are contrasted with other. The measurements
made to determine results may be measurements of change in sales , change in consumer attitudes, changes in dealer
display and so on depending upon the objectives sought by the advertiser.

Methods of Measuring Advertising Effectiveness - Advertising is aimed at improving the sales volume of a concern so its
effectiveness can be evaluated by its impact on sales. Most of the managers believe that the advertisement directly affects the
sales volume and hence they evaluate the effectiveness of the advertising campaign by the increase in the sales volume.
There may be two types' measures –
1. Direct Measures of Advertising Effectiveness - Under direct measures, a relationship between advertising and sales is
established. A comparison of sales of two periods or two markets may be done and the corresponding changes may be
noted. The following are some of the methods that are generally used in measuring that advertising effects.-
 Historical Sales Method - Some insights into the effectiveness of past advertising may be obtained by measuring the
relationship between the advertising expenditure and the total sales of the product
 Experimental Control - This method is quite expensive when related to other advertising effectiveness measures
the sales effectiveness of advertising is test marketing.
 Before-after with Control Group Design: This classic design uses several test and control cities in this
design two types of cities are selected. the normal sales level is calculated for both type of cities prior to
advertising campaign, and then the advertising campaign is presented to the test cities and not the
central cities.
 Multivariable Experimental Designs: Multivariable designs Produce these explanations and are, therefore
used by some very large firm because of their diagnostic value.
2. Indirect Measures of Advertising Effectiveness - These measures do not evaluate the effects of advertisements directing
on sales or profits but all other factors such as customer awareness goals of the business indirectly. Despite the
uncertainties
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about the relationship between the intermediate effects of advertising and the ultimate results, there is no other alternative
but to use indirect measures. The most commonly used measures are;
 Exposure to Advertisement: Advertisers may obtain an idea of exposure generated by the medium by examining
its circulation or audience data which reveal the number of copies of the magazine, newspaper, T.V. and radio
sets at various points of time
 Attention of Advertising Message Content: This is one of the widely used measures of advertising results.
Attention value is the chief quality of the advertisements cannot be said to be effective unless they attract the
attention of the target consumers.
 Brand Awareness: The marketers who rely heavily on advertising often appraise its effectiveness by measuring
the customer’s awareness about the particular product or brand.
 Attitude Change: Since advertising is considered to be one way of influencing the state of the mind of the
audience towards a product, service or organization, the results are very often measured in terms of attitudes
among groups exposed to advertising communication.
 Action: The action or intention to take an action may be measured on the intention to buy measuring
instrument. Consumers are asked to respond why they are interested in purchasing the product or brand.
Thus, these above measures (direct or indirect) are used to evaluate the effectiveness of advertisements. It seems from
the analysis of the above methods of measuring effectiveness that directly or indirectly changes in sales or profits are
taken as the measuring rod of the effectiveness of the advertising
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Unit 8 Legal & Ethical Aspects of Advertising

Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. In
today's fast-paced, high-tech age businesses use advertising to make prospects aware of their products & services to earn profits
through increasing their sales and sales turnover. 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.

When is advertising deceptive/ ethical?

The Constitution of India guarantees freedom of speech. Special restraint is needed in commercial speech including advertising.
An advertisement is called deceptive when it misleads people, alters the reality and affects buying behavior. Deception exists
when an advertisement is introduced into the perceptual process of the audience in such a way that the output of that
perceptual process differs from the reality of the situation
These may include the following:
 Violates Consumers' Right to Information: Use of untrue paid testimonials to convince buyers, quoting misleading prices,
disparaging a rival product in a misleading manner is some examples of misleading. Advertisers of anti- aging creams,
weight loss programs, anti-dandruff shampoos
 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.
 Violates Consumers' Right to Choice: The recent print ad for Videocon mentions a 1-ton split-AC available for Rs. 15,990/,
a very attractive offer. But there is a small asterisk which mentions three things in small font. They are:
 Conditions apply
 Prices valid in Delhi and NCR under exchange only
 Actual products may differ from those displayed in the offer.
 Advertisements directed at children: The advertisers rely on the children's pester power on their parents. The ethical
issues involved are advertisers try to exploit Young children by advertising products that are not conducive to their
health.
 Puffery: 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.
 Use of sex appeals: Sex appeal is used explicitly to sell all kinds of things to gain consumer attention. It is used where it is
not even appropriate to the product being advertised. The corporate sector should be encouraged to eliminate the
violation of women's rights online & all forms of gender based violence.
 Bait advertising: It means taking advantage of consumer psychology and depriving consumers of a choice. For example,
once the consumer enters the store, he or she is pressured to purchase another more expensive item.
 Advertising of harmful products: Advertising is not restricted to products that are good for people. According to law in
India advertisements for cigarettes, pan-masala, products that are harmful to the public continues to find a place despite
the ban imposed by the government.
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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: Regulation by the Government and Self regulation by the industry
1. Regulation by government
 Cable Television Networks Act, 1995: This law lays down the procedure for registration of a cable television
network and also regulates the programmers' 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.
 Drugs and Cosmetics Act, 1940 - 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.
 The Children's Act, 1960, prohibits the disclosure of names and address and other particulars of any child
involved in any proceedings.
 The Indecent Representation of Women Act, 1986 forbids the depiction of women in an indecent or derogatory
manner in the mass media. No person shall publish, arrange or take part in the publication which contains
indecent representation of women in any form.
 The Emblems and Names Act, 1950, prohibits the use by any private party of certain names, emblems, etc.
 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.
 The Drugs and Magic Remedies Act, 1954 - It 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.
 The Monopolies and Restrictive Trade Practice act, 1969: In the year 1984, the government brought, through an
amendment, "unfair trade practices" under the MRTP Commission. 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'.
 The Consumer Protection Act, 1986: It 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
2. 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 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.
Agencies involved in self regulation –
 Press Council of India
 Prasar Bharti
 Individual media and media groups
 Advertising trade associations
 Advertising Standards Council of India (ASCI)
 Advertising Association of India (AAAI)
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.
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Unit 9 Global Marketing and Advertising -

Global marketing as “marketing on a worldwide scale reconciling or taking commercial advantage of global operational
differences, similarities and opportunities in order to meet global objectives.” It is not a revolutionary shift, it is an evolutionary
process. While the following does not apply to all companies, it does apply to most companies that begin as domestic-only
companies.
 Domestic marketing - A marketing restricted to the political boundaries of a country, is called "Domestic Marketing". A
company marketing only within its national boundaries only has to consider domestic competition. Even if that
competition includes companies from foreign markets, it still only has to focus on the competition that exists in its home
market .The biggest obstacle these marketers face is being blindsided by emerging global marketers. Because domestic
marketers do not generally focus on the changes in the global marketplace, they may not be aware of a potential
competitor who is a market leader on three continents. These marketers can be considered ethnocentric as they are most
concerned with how they are perceived in their home country.
 International marketing - If the exporting departments are becoming successful but the costs of doing business from
headquarters plus time differences, language barriers, and cultural ignorance are hindering the company’s
competitiveness in the foreign market, then offices could be built in the foreign countries. Sometimes companies buy
firms in the foreign countries to take advantage of relationships, storefronts, factories, and personnel already in place.
These offices still report to headquarters in the home market but most of the marketing mix decisions are made in the
individual countries since that staff is the most knowledgeable about the target markets. These marketers are considered
polycentric because they acknowledge that each market/country has different needs.

Elements of the global marketing mix - The “Four P’s” of marketing: product, price, placement, and promotion are all
affected as a company moves through the five evolutionary phases to become a global company. Ultimately, at the global
marketing level, a company trying to speak with one voice is faced with many challenges when creating a worldwide marketing
plan. Unless a company holds the same position against its competition in all markets (market leader, low cost, etc.)
 Product = A global company is one that can create a single product and only have to tweak elements for different
markets. For example, Coca-Cola uses two formulas (one with sugar, one with corn syrup) for all markets. The product
packaging in every country is different. The contour bottle design can also includes the country’s native language and is
the same size as other beverage bottles or cans in that same country.
 Price=Price will always vary from market to market. Price is affected by many variables: cost of product development
(produced locally or imported), cost of ingredients, cost of delivery (transportation, tariffs, etc.), and much more.
Whether this product is considered the high-end, expensive choice, the economical, low-cost choice, or something in-
between helps determine the price point.
 Placement - How the product is distributed is also a country-by-country decision influenced by how the competition is
being offered to the target market. Using Coca-Cola as an example again, not all cultures use vending machines. In the
United States, beverages are sold by the pallet via warehouse stores. In India, this is not an option. Placement decisions
must also consider the product’s position in the market place.
 Promotion - After product research, development and creation, promotion is generally the largest line item in a global
company’s marketing budget. The global corporation seeks to reduce costs, minimize redundancies in personnel and
work, maximize speed of implementation, and to speak with one voice. If the goal of a global company is to send the
same message worldwide, then delivering that message in a relevant, engaging, and cost-effective way is the challenge.

Advantages of the global marketing and Advertising

 Lower marketing costs
 Power and scope
 Consistency in brand image
 Uniformity of marketing practices
 Benefits of eMarketing over traditional marketing
 Economies of scale in production and distribution
 Ability to leverage good ideas quickly and efficiently
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Disadvantages of the global marketing and Advertising

 Differences in administrative procedures
 Differences in product placement.
 Differences in consumer response to marketing mix elements
 Differences in consumer needs, wants, and usage patterns for products
 Differences in the administrative procedures and product placement can occur
 Differences in brand and product development and the competitive environment

Dagmar approach - DAGMAR advertising model was proposed by Russell H. Colley in 1961. Term DAGMAR is an acronym of
Defining Advertising Goals for Measured Advertising Results. Colley distinguished 52 advertising goals that might be used with
respect to a single advertisement, a year’s campaign for a product or a company’s entire advertising philosophy. It is basically an
approach to advertising planning and a precise method for selecting and quantifying goals and for using those goals to measure
performance. DAGMAR also focused attention upon measurement, encouraging people to create objectives so specific and
operational that they can be measured.
According to DAGMAR, each purchase prospect goes through 4 steps:
 Awareness = the consumer must first be aware of a brand or company.
 Comprehension = he or she must have a comprehension of what the product is and its benefits.
 Conviction = he or she must arrive at the mental disposition or conviction to buys the brand
 Action = he or she actually buy that product.
These steps are also known as ACCA advertising formula. ACCA/DAGMAR is a descendant of AIDA advertising formula and considered
to be more popular and comprehensive than AIDA. Developed for the measurement of advertising effectiveness Maps the states
of mind that a consumer passes through.

Characteristics or Objectives:
 Concrete and measurable= the communications task or objective should be a precise statement of what appeal or
message the advertiser wants to communicate to the target audience. Furthermore the specification should include a
description of the measurement procedure
 Target audience = a key tenet to DAGMAR is that the target audience be well defined. For example –if the goal was to
increase awareness, it is essential to know the target audience precisely. The benchmark measure cannot be developed
without a specification of the target segment
 Benchmark and degree of change sought:=another important part of setting objectives is having benchmark measures to
determine where the target audience stands at the beginning of the campaign with respect to various communication
response variables such as awareness, knowledge, attitudes, image, etc..
 Specified time period = the specification of the time period during which the objective is to be accomplished, e.g.
6months, 1 year etc. The time period should be appropriate for the communication objective as simple tasks such as
increasing awareness levels can be accomplished much faster than a complex goal such as repositioning a brand.
 Written Goal =finally goals should be committed to paper. When the goals are clearly written, basic shortcomings and
misunderstandings become exposed and it becomes easy to determine whether the goal contains the crucial aspects of
the DAGMAR approach.

Criticism of Dagmar Approach

 Problems with the Response Hierarchy
 Sales objectives
 Practicality and costs
 Inhibition of creativity
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Hierarchy-of-Effects Model - Among advertising theories, the hierarchy-of-effects model is predominant. It shows clear
steps of how advertising works. Hierarchy of effects Model can be explained with the help of a pyramid. First the lower level
objectives such as awareness, knowledge or comprehension are accomplished. Subsequent objectives may focus on moving
prospects to higher levels in the pyramid to elicit desired behavioral responses such as associating feelings with the brand, trial,
or regular use etc. it is easier to accomplish ad objectives located at the base of the pyramid than the ones towards the top. The
percentage of prospective customers will decline as they move up the pyramid towards more action oriented objectives, such as
regular brand use.
 Awareness=If most of the target audience is unaware of the object, the communicator’s task is to build awareness,
perhaps just name recognition, with simple messages repeating the product name. Capturing attention doesn’t mean they will
notice the brand name.
 Knowledge = the target audience might have product awareness but not know much more; hence this stage involves
creating brand knowledge.
 What are the brand’s specific appeals?
 In what way is it different than competitor’s brands?
 Who is the target market?
These are the types of questions that must be answered if consumers are to achieve the step of brand knowledge.
 Liking = If target members know the product, how do they feel about it? If the audience looks unfavorably towards the
product to communicator has to find out why. For product problem it is necessary to first fix the problem and only then
can you communicate its renewed quality.
 Preference = the target audience might like the product but not prefer it to others. In this case, the communicator must
try to build consumer preference by promoting quality, value, performance and other features.
 Conviction = A target audience might prefer a particular product but not develop a conviction about buying it. The
communicator’s job is to build conviction among the target audience.
 Purchase = finally, some members of the target audience might have conviction but not quite get around to making the
purchase. They may wait for more information or plan to act later.
The communicator must need these consumers to take the final step, perhaps by offering the product at a low price, offering a
premium, or letting consumers tried out.