204 New

BJMC 204 Unit 1 Lesson 1
Unit I Introduction
Lesson 1 Definition & Meaning of Advertising
Lesson 2 Role and functions of Advertising
Lesson 3 Nature & Scope of Advertising
Lesson 4 Growth & Development of Advertising in India & World
Lesson 5 Global Scenario of Advertising
Lesson 6 Ethical & Regulatory Aspects of Advertising
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STRUCTURE
1.0 Objectives
1.1 Introduction
1.2 Definition of Advertising
1.3 Nature of Advertising
1.4 Uses of Advertising
1.5 Types of Advertisements
1.6 Assignments
1.6.1 Class assignment
1.6.2 Home assignment
1.7 Summing Up
1.8 Possible answers to self check questions
1.9 Terminal Questions
1.10 References
1.11 Suggested Further Readings
1.12 Keywords
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In unit 1 we shall discuss Advertising meaning, development, growth in

global market. Ethical parameters are included to provide
understanding about advertising industry conduct. Advertising help to
recall ,remind and place ad message in target audience mindset.
1.0 Objectives
After going through this lesson you will be able to:

 Describe Advertising Concept
 Describe Nature of Advertising
 Describe Types and uses of advertisement
1.1 Introduction
Advertising is nothing but a paid form of non-personal presentation or

promotion of ideas, goods or services by an identified sponsor with a
view to disseminate information concerning an idea, product or service.
The message which is presented or disseminated is called
advertisement and the process involved in creating advertisement is
called advertising.
1.2 Definition
According to American Marketing Association (AMA) advertising is “any

paid form of non-personal presentation of ideas, goods, and services
by an identified sponsor”.
Advertising is a single component of the marketing process. It involves

in getting the word out concerning the business, product, or the
services offered. Of all the promotional activities conducted by
businesses and other organizations, advertising is probably the most
evident because it touches the greatest number of consumers.
It involves the process of developing strategies such as ad placement,

frequency, etc. Advertising includes the placement of an ad in such
mediums as newspapers, direct mail, billboards, television, radio, and
of course the Internet. Advertising is the largest expense of most
marketing plans, with public relations following in a close second and
market research not falling far behind.
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Used by many types of organizations including educational institutes,

companies, civic groups, politicians, NGOs, government organizations
etc
In advertising we need to consider the following issues:
 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 favourable?
 Is the organization able and willing to spend the required money

to launch an advertising campaign?
1.4 Uses of Advertising
1. Promoting Products or Organizations
Institutional Advertising promotes organizations, images, ideas or

issues.
Advertising promotes goods and services.
2. Stimulating Primary and Selective Demand
First to introduce product needs to stimulate primary demand. Pioneer

Advertising informs people about the product (introduction stage of the
product life cycle). Do not emphasize the brand name. It can also be
used to stimulate the demand for a product group
For Selective demand, advertisers use Competitive advertising, brand

uses, benefits not available with other brands.
3. Offsetting Competitors Advertising
It is a defensive advertising technique used to offset the effect of

competitors advertising. Used in FMCG industry. It can be effectively
used for mainly in extremely competitive consumer products markets.
4. Making salespersons more effective
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Tries to pre-sell product to buyers by informing them of uses, features

and benefits- encourage them to contact dealers etc. Cars...bring to
retail store.
5. Increasing use of product
Consumer can consume only so much of a product, this limits absolute

demand. Try to convince the target audience to use the product in
more than one way.
6. Reminding and reinforcing customers
Reminder, need to keep company/product name at the forefront of

consumers' minds in the competitive marketplace. Reinforcement
prevents cognitive dissonance.
7. Reducing Sales fluctuations
Increase sales during slow periods will help increase production

efficiency.
1.5 Types of Advertisements
The types of advertisements are distinguished by the content and

purpose of advertisers, the target audience, and the sponsors of ad.
1. Product Advertising presents information and/or persuasive

appeals about products and services.
2. Pioneer Advertising consists of messages about a product class

and is designed to stimulate primary demand.
3. Competitive Advertising consists of brand-oriented messages

designed to stimulate selective demand.
4. Comparative Advertising makes direct comparisons between the

advertised brand and one or more competing brands, usually across
several attributes.
5. Institutional Advertising seeks to enhance the overall image of

and build goodwill for the organization.
6. Trade Advertising consists of messages directed at resellers that

appeared in specialized trade publications or are sent through the mail.
7. Cooperative Advertising occurs when the costs of an advertising

message are shared by more than one party.
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Self Check Question
1. ______________consists of brand-oriented messages designed to

stimulate selective demand.
2. _______________messages directed at resellers that appeared in

specialized trade publications or are sent through the mail.
3. _______________seeks to enhance the overall image of and build

goodwill for the organization.
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1.6 Assignments
1. Collect various types of advertisement from newspaper
1. Write short notes on
a. Selective Demand
b. Competitors Advertising
1.7 Summing Up
Advertising includes the placement of an ad in such mediums as

newspapers, direct mail, billboards, television, radio, and of course the
Internet. It try to convince the target audience to use the product in
more than one way.
1. Competitive Advertising
2. Trade Advertising
3. Institutional Advertising
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1. Write the definition of Advertising given by the American Marketing

Association. Explain the meaning and concepts of advertising.
1.10 References
1. Sandage C H, Fryburger Vernon,Advertising Theory and Practice:

A.I.T.B.S.
& Rotzoll Kim Publishers & Distributors, Delhi
2. Mohan Mahender,Advertising Management: Concepts & Cases;

Tata McGraw Hill Publishers
3. Ogilvy David :Ogilvy on Advertising; Prion Books Ltd.
4. Lewis Herschell Gordion :The Complete Advertising and Marketing
Handbook: East West Books(Madras) Pvt. Ltd., Chennai
1. Little Field James E & Kirkpatrik C.A.: Advertising: Mass

Communication in
Marketing; Vakils, Feffer & Simons Pvt. Ltd., Bombay
2. White Roderick:Advertising: What it is and How to do

it:McGrawHill Book Company, London
3. Bulmore Jeremy:Behind the scenes in Advertising; NTC Publishers,

Henley
4. Douglas Torin:The Complete Guide to Advertising: MacMilan, London
5. Jethwaney Jaishri: Advertising: Phoenix Publishing House Pvt. Ltd.,

New Delhi
1.12 Keywords
a. Pioneer Advertising consists of messages about a product class

and is designed to stimulate primary demand.
b. Competitors Advertising- It is a defensive advertising technique

used to offset the effect of competitors advertising
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STRUCTURE
2.0 Objectives
2.1 Introduction
2.2 Role of advertising
2.3 Functions of Advertising
2.4 Assignments
2.5 Summing Up
2.8 References
2.10 Keywords
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In the last lesson we had discussed Definition and meaning of advertisement. In this
lesson we shall study role and functions of advertising.
2.0 Objectives
After going through this lesson you should be able to:
 Describe Role of advertising in an organization
 Describe Functions of advertising
2.1 Introduction
Advertising plays the following roles in an organization:
1) Advertising informs, persuades, and reminds: It informs buyers

of existence and nature of a product, may attempt to persuade them
to purchase the advertised brand, and reinforces the buying
behavior of the brand’s existing users.
2) Advertising can substitute for personal selling: Advertising

performs functions that personal selling performs but in much
different fashion.
3) Advertising complements personal selling: While advertising

may substitute for personal selling, it usually exists in conjunction
with it.
2.2 Role of advertising
(a) advertising makes jobs.

(b) advertising reduces selling costs.
(c) advertising increases company profits
(d) advertising increases company security.
(e) Enormous and growing productivity needs advertising to speed up
consumption.
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The new instant dessert puddings can be cited as another example.

Puddings have not moved as rapidly as they might have in recent
years. Along came the instant pudding and look what happened. Sales
of all dessert puddings are up one-third as the result of the introduction
of something new, the instant pudding, which revitalized an old and
somewhat static business by the introduction of a new product idea,
extensively promoted through advertising.
It all adds up to the fact that mass consumption makes mass

production possible and mass production means more jobs.
Advertising, because of its ability to accelerate the regular acceptance
of new products and to lift the level of acceptability of established
products, unleashes a tremendous flood of new demand, and new
employment.
The critics say advertising causes people to spend needlessly. By a

narrow definition this may be true. But our whole economy, which has
brought us so much prosperity, emphasizes consumption. And
psychological obsolescence is a factor of importance in that
consumption.
What advertising does, and does well, is to increase what might be

called the "want ability" of goods. The more want able goods become,
the greater the prospect that money will be exchanged for those goods,
and this in turn spells continued employment and more jobs.
2.3 Functions of Advertising
Advertising aims at fulfilling a variety of different purposes depending

upon the needs of the particular enterprise provided a painstaking
analysis is made regarding the various factors such as demand
potentialities, cost, media etc. The main purpose of every advertising
effort is to stimulate maintain and secure the distribution and
consumption of a product resulting in an increase in sales and profits of
the concern. Advertising serves every sect of the business society-
consumer producer and the middlemen (agency and salesman). The
various functions of advertising may be grouped in two classes- (i)
Primary function, and (ii) Secondary functions.
1. Primary Functions:
Among primary functions the following are more important:
(i) To increase sales- The main function of advertising is to increase

the sales of the product of the company by securing greater
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consumption by attracting new buyers and by introducing new uses for

a commodity. The main aim of all advertising is to get this end.
(ii) Persuasion of dealers- Advertising persuades dealers to stock

more and more advertised goods. It makes far wider distribution of
goods to the farthest corner of the country. Where the product is not in
much demand the advertisers or producers directly contact dealers to
stock the goods and to persuade the consumers to buy their goods.
(iii) Help to dealers- Advertising not only assists the producer or

advertiser but also helps dealers (wholesalers and retailers) to sell the
advertised goods. Thus wholesalers and retailers are able to clear their
shelves speedily resulting in higher profits. This is all possible due to
effective advertising.
(iv) Increase in per-capita use –Advertising may tend to increase the

per capita use of commodity by repeating the desirable features and
uses of an article constantly. Advertising is effectively used to increase
the per capita consumption by describing new uses of articles that may
never have been thought of by general user new ways of using
products already familiar or new scientific discoveries that tell of the
new use of a certain product.
(v)Receptiveness of new product or model- Advertising earns a

name for the producer. If a producer has earned a name as a producer
of good quality products the new product in the same line or new model
or form of an existing familiar product will get quick receptiveness from
the public for that item. Generally the producer advertises it as
belonging to a group of products whose quality is well known.
(vi)Insurance for manufactures business- The next function of

advertising is to create insurance for the manufactures business
through the advertising of trademarks or brand names or the general
appearance of the products and their packages public recognition and
acceptance are secured and accordingly goodwill of the manufacturer
is established over the time and a kind of insurances affected. This
makes the manufacturer more confident and independent of
wholesalers and retailers. It also protects the manufacturers from the
competition who will find it difficult to develop the substitute for the
nationally or internationally advertised products advertising cultivates
brand and company image. It creates good-will that is more valuable
asset than the physical assets like plants etc, and insures the
manufacturer against all business risks.
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(vii)Confidence in quality- By advertising the producer creates

confidence in the minds of consumer public for his products. Buyers
beware is the rule of the market where buyer is to choose the product
of his choice and he is to tell the quality. It was not always duct of his
choice and he is to tell the quality. It was not always possible for an
ordinary consumer to tell whether he was buying gold or tinsel before
there were widely advertised products. In case of widely advertised
goods the buyer has every reason to believe because of his past
experience that the quality of the goods is the same advertised by the
producer. Thus advertising creates confidence in the quality of the
product.
(viii)To eliminate seasonal fluctuations- One of the functions of the

advertisement is to eliminate of lessen the seasonal fluctuations mainly
for the seasonal products by describing their various uses during off
seasons. For example by advertising the use refrigerators all the year
round has been brought home to people.
(ix) More business for all – Competitive advertising of two of more

manufacturers in the same field expands market and creates more
business for all. It creates demand for the kind of the product and not
for a particular brand. For example a portable Type-writer is widely
recommended and vigorously suggested. It results that more portable
typewriters of different makes are sold.
(x) Raising of standard of living- Advertising also deserves credit in

raising the standard of living of the consumers by instigating them to
use newer and better things at competitive rates. It is only become the
necessity of today and it would have been possible that things enjoyed
by rich people today may become very common to be enjoyed by a
common man. For example, T.V. which had been only a dream for
common man has bow become very popular among them only due to
advertising.
2. Secondary Function:
In addition to primary functions of advertising discussed above there

are many other functions which have gained importance during the
course of time and some of them may assume prime role. Such
functions may be classified as “Secondary functions” and have been
discussed as follows:
(i) To encourage salesmen and lend them moral support-

Advertising helps salesmen a lot Although a salesman has the prestige
of the goods and of the firm behind him he feels at times the need of
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greater confidence in himself his sales message and his product. This
is particularly so when he meets a typical buyer he gets support from
the advertising because it supplies the necessary information to
supplement his message. Advertisement boosts his morale. It makes
easier for him to sell advertised goods for part of the selling has
already been done for him. It in turn will increase his remuneration
because increased sales volume will give him higher return.
(ii) To furnish information- Advertisements supply the necessary

information about the product producer stockist and salesmen.
Salesmen and dealers are benefited by the use of information given in
the advertisement. Many times they (information) serve as a check
upon erroneous and extravagant claims. The printed words are
manufacture’s guarantee.
(iii) To impress executives- Advertisements create a feeling among

the executives and the administrative staff that they are working in the
spotlight and are responsible to the public in a peculiar way. In many
ways they become more enthusiastic when they see or read one of the
advertisements. They are likely to strive to improve the product to
adopt better packages and style and to give public more for their
money.
(iv) To impress factory workers- It creates often a good effect on

workers who work in a factory producing advertised goods. They
consciously or unconsciously take pride in helping to produce
something known far and wide. They feel themselves a part of the big
organization and have some for the responsibilities.
(v) Feeling of Security- The workers of a concern of well advertised

goods feel that their job is permanent and they will have better chances
for promotion as the business grows. As the advertising earns goodwill
for the concern and secures steady work and prosperity.
(vi)To secure better employees- Advertising tends to make possible

for manufacturers to secure and appoint better employees i.e.
executives salesmen and factory workers. As because the company
gains much popularity and is identified with a widely known company
any good applicant will feel pride to approach the company for the job.
Thus advertising helps the advertiser to choose better employees.
To sum up advertising aims at committing the producer for more

turnovers educating the consumer supplementing the sales men
converting the dealer to eliminate the competitor and above all it is a
link between the producer and the consumer.
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Self-Check Questions
1. ______________supply the necessary information about the

product producer stockist and salesmen.
2. Advertising also deserves credit in raising the____________ of

the consumers by instigating them to use newer and better things at
competitive rates.
2.4 Assignments
1. Describe the advantage of advertisement for salesman of an

organization
a. Receptiveness of new product
b. Advertising complement personal selling
2.5 Summing Up
Functions of advertising are to reinforce brand image among primary

and secondary consumers. Every advertising effort is to stimulate
maintain and secure the distribution and consumption of a product
resulting in an increase in sales and profits of the concern.
1) Advertisements
2) standard of living
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1. What are the functions of advertising? Why do business houses feel

the need to invest a sizable amount of money in advertising?
2.8 References

A.I.T.B.S.
2. & Rotzoll Kim Publishers & Distributors, Delhi

6. Handbook: East West Books(Madras) Pvt. Ltd., Chennai

Communication in
2. Marketing; Vakils, Feffer & Simons Pvt. Ltd., Bombay
3. White Roderick:Advertising: What it is and How to do it:McGrawHill

Book Company, London

Henley
5. Douglas Torin:The Complete Guide to Advertising: MacMilan,

London

New Delhi
2.10 Keywords
1 .per-capita use- new uses of articles that may never have been
thought of by general user new ways of using products already familiar
or new scientific discoveries that tell of the new use of a certain
product.
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STRUCTURE
3.0 Objectives
3.1 Introduction
3.3 Importance of Advertising
3.4 Assignments
3.5 Summing Up
3.8 References
3.10 Keywords
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In the last lesson we had discussed role of Advertisement and its

function. In present lesson, we shall study about the nature and scope
of advertising.
3.0 Objectives
After going through this lesson you should be able to :

o Define Nature of Advertising
o Describe Scope of Advertising
3.1 Introduction
According to American Marketing Association (AMA) advertising is

“any paid form of non-personal presentation of ideas, goods, and
services by an identified sponsor”.
Used by many types of organizations including educational institutes,

companies, civic groups, politicians, NGOs, government organizations
etc
In advertising we need to consider the following issues:
 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 favourable?
 Is the organization able and willing to spend the required money

to launch an advertising campaign?
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3.3 Importance of Advertisement
Advertising broadens the knowledge of the consumers. With the aid of

advertising, consumers find and buy necessary products without much
waste of time. This speeds up the sales of commodities, increases the
efficiency of labour in distribution, and diminishes the costs of selling. It
is an accepted fact that without market stimulus of heavy advertising,
consumers might have waited another sixty years for the product
evaluation that took place in less than ten years. The main benefits of
advertising may be narrated as follows:
a. Benefits to Manufacturers
 It increases sales volume by creating attraction towards the product.
 It helps easy introduction of new products into the markets by the

same manufacturer.
 It helps to create an image and reputation not only of the products but
also of the producer or advertiser. In this way, it creates goodwill for
the manufacturer.
 Retail price, maintenance is also possible by advertising where price

appeal is the promotional strategy.
 It helps to establish a direct contact between manufacturers and

consumers.
 It leads to smoothen the demand of the product. It saves the product

from seasonal fluctuations by discovering new and new usage of the
product.
 It creates a highly responsive market and thereby quickens the

turnover that results in lower inventory.
 Selling cost per unit is reduced because of increased sale volume.

Consequently, product overheads are also reduced due to mass
production and sale.
 Advertising gives the employees a feeling of pride in their jobs and to

be in the service of such a concern of repute. It, thus inspires the
executives and worker to improve their efficiency.
 Advertising is necessary to meet the competition in the market and to

survive.
b. Benefits to Wholesalers and Retailers
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 Easy sale of the products is possible since consumers are aware of the
product and its quality.
 It increases the rate of the turn-over of the stock because demand is

already created by advertisement.
 It supplements the selling activities.
 The reputation created is shared by the wholesalers and retailers alike

because they need not spend anything for the advertising of already a
well advertised product.
 It ensures more economical selling because selling overheads are

reduced.
 It enables them to have product information.
c. Benefits to Consumers
 Advertising stresses quality and very often prices. This forms an

indirect guarantee to the consumers of the quality and price. Further
large scale production assumed by advertising enables the seller to
seller product at a lower cost.
 Advertising helps in eliminating the middlemen by establishing direct

contacts between producers and consumers. It results in cheaper
goods.
 It helps them to know where and when the products are available. This
reduces their shopping time.
 It provides an opportunity to the customers to compare the merits and

demerits of various substitute products.
 This is perhaps the only medium through which consumers could know
the varied and new uses of the product.
 Modern advertisements are highly informative.
d. Benefits to Salesmen
Salesmanship is incomplete without advertising. Advertising serves as

the forerunner of a salesman in the distribution of goods. Sales is
benefited the advertisement in following ways:
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 Introducing the product becomes quite easy and convenient because

manufacturer has already advertised the goods informing the
consumers about the product and its quality.
 Advertising prepares necessary ground for a salesman to begin his

work effectively. Hence sales efforts are reduced.
 The contact established with the customer by a salesman is made

permanent through effective advertising because a customer is
assumed of the quality and price of the product.
 The salesman can weigh the effectiveness of advertising when he

makes direct contact with the consumers.
e. Benefits to Community or Society
 Advertising, in general, is educative in nature. In the words of the late

President Roosevelt of the U.S.A., "Advertising brings to the greatest
number of people actual knowledge concerning useful things: it is
essentially a form of education and the progress of civilization depends
on education."
 Advertising leads to a large-scale production creating more

employment opportunities to the public in various jobs directly or
indirectly.
 It initiates a process of creating more wants and their satisfaction

higher standard of living. For example, advertising has made more
popular and universal the uses of such inventions as the automobiles,
radios, and various household appliances.
 Newspapers would not have become so popular and so cheap if there

had been no advertisements. The cheap production of newspapers is
possible only through the publication of advertisements in them. It
sustains the press.
 It assures employment opportunities for the professional men and

artist.
 Advertising does provide a glimpse of a country's way of life. It is, in

fact, a running commentary on the way of living and the behavior of the
people and is also an indicator of some of the future in this regard.
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___________________________________________________________________
1. Advertising leads to a large-scale production creating more

employment opportunities to the public in various jobs directly or
indirectly. ______________
2. Advertisement does not provides an opportunity to the

customers to compare the merits and demerits of various substitute
products._____________
3.4 Assignments
3.4 .1 Class assignment
1. Prepare the list of Brands selling products with advertisement with

information
3.4 .2 Home assignment
a. Consumer
b. salesman
c. Manufacturer
3.5 Summing Up
Advertisements are important for: standardized products ,products

aimed at large markets ,products that have easily communicated
features products low in price
1 True 2 False
1. Explain the nature and scope of advertising from the point of views
of consumers and advertisers with suitable examples.
3.8 References
28

A.I.T.B.S. & Rotzoll Kim Publishers & Distributors, Delhi


Communication in
2. Marketing; Vakils, Feffer & Simons Pvt. Ltd., Bombay
3. White Roderick:Advertising: What it is and How to do it:McGrawHill

Book Company, London

Henley
5. Douglas Torin:The Complete Guide to Advertising: MacMilan, London

New Delhi
3.10 Keywords
American Marketing Association (AMA) advertising is “any paid form of
non-personal presentation of ideas, goods, and services by an
identified sponsor.
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STRUCTURE
4.0 Objectives
4.1 Introduction
4.2 Brief History of Advertising in India
4.3 Assignments
4.4 Summing Up
4.7 References
4.9 Keywords
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__________________________________________________________________
___________________________________________________________________
In the last lesson we had discussed nature and scope .In present
lesson, we shall study about the Growth & Development of Advertising
in India & World.
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4.0 Objectives
 Describe Glimpse of Advertising over the Years in India
 Define Indian history of advertising
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4.1 Introduction
As it is understood today advertising is only a couple of centuries old.

Over the years advertising has come to acquire a distinct positioning in
the overall marketing mix as we saw in the various definitions of
advertising. Advertising it is said is a reflection of society. One can
broadly divide the various periods in India as under:
The “Personal Selling” Era: The “Sunye mehrban kadrdan” period.

The barter system which sold goods against goods. The sale of slaves
animals and various commodities was through the process of personal
selling. In the absence of any mass media advertising a mediated
communication was not possible.
The “Product” Era: “How to build a better mouse trap” phase. The
emphasis in this period was on how to manufacture a better product
and disseminate information about it.
The “Sales” Era: In this era, the process was gered towards hard-sell
–the “salesman approach”. The advertising changed from information
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to persuasion- “Meri kameez uski kameez se safed” or “My dad

stronger than yours”.
The “Consumer” Era: During this period a study of human behaviour

and its role in the purchase of products came into focus. Abraham
Maslow and Sigmund Freud were “employed” to understand the
complexities of the human mind. This was the beginning of modern
advertising in the face of too many “me-too” products.
This period witnessed the emergence of the following phenomena:
1. Consumer Psychology
2. Lifestyle Advertising
3. In-depth Research
4. Subliminal Advertising
5. Marketing
6. Emergence of USP (unique selling proposition).
The “Positioning” Era: Half a mind is better than none was the core
philosophy of this era. Instead of abider scattered segment the
advertisers opted for a small and consistent share in the market. The
period witnessed the following major trends:
1. Demise of USP
2. Intelligent sacrifice
3. “In mind” vs. other brands to evolve a strong appeal.
The “Value Marketing” Era: The current age can be designated as

thevalue marketing period. Internationally there is a movement towards
more responsible advertising. Following are some of the emerging
trends
1. Niche or micro-marketing.
2. Orchestration or integrated marketing.
3. Maxi marketing or value-based direct marketing.
A greater felling of value is passed on to the consumer. More and more

marketers are using sales promotion gimmicks like discounts exchange
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of old products buy one take another free thus enticing the consumer
by a variety of means.
In retrospect one can say that the 1950s was an era of functional
advertising with the concept of hard-sell hammering home the
message through thick and bold headlines dark prints and monograms.
It was a matter of fact functional advertising that worked through
repetition.
The 1950s can be reckoned as the watershed era for advertising. With
the national planning many industries were set up. Cinema advertising
began in the 50s. Calcutta pioneered in setting up Indias first Ad Club
in 1956. National Advertising created the much acclaimed” Murphy
baby”
The 1960s witnessed advertising which was a lot more creative- a pop
art movement the fusion of art with everyday products- an indulgent
phase. The Lux ads using celebrities the Pears ad. “some complexions
never grow old” the Dalda vanaspati ads which made it almost a
hallmark the Binnies and the Mafatlal ads dominated the scene.
India’s first advertising convention was held in Calcutta in the year

1960 followed vt Asian Advertising Congress in Delhi.
The decade of seventies witnessed the media boom. The Asian

Advertising Congress was held at New Delhi. The decade of eighties
was path breaking in the advertising field. This can be summed up by
an ad headline “If you have it. Flaunt it”. It was an era of materialistic
advertising but at the same time of well researched structured and slick
campaigns.
The 1980s saw a boom in Public sector advertising. Advertising

agencies expanded. Television emerged as a powerful media
beginning from 15 August 1982. All Insia Radio also introduced
commercials during the same year.
The current phase of the nineties can be said to the “introspective” era.
Advertising is far more realistic and sober. It is less indulgent and more
restrained Thanks to the increasing awareness about consumer right
and an active judicial system especially in regard to the Public Interest
Litigations the emergence of special interest groups and above all the
emergence of a new consumer class one finds the advertising world
taking a cautious path.
In the current phase one finds more emphasis on the brand equity
leading to Institutional advertising. Globalisation of advertising is
27
another visible aspect. The earliest forms of advertising, of course,

would have been through word of mouth. Advertising - for sales, and
lost-and-found - was commonly created on papyrus in ancient Egypt,
Greece and Rome. Commercial advertising, through wall or rock
paintings that goes back to 4000 BC, has been found in many parts of
India, Africa, and South America. Commercial and political advertising
displays have been recovered from the ruins of the ancient Pompeii, a
Roman city destroyed by the volcano -Mount Vesuvius - in 79 AD.
4.2 Brief History of Advertising in India
The dawn of Indian Advertising marked its beginning when hawkers

called out their wares right from the days when cities and markets first
began. The modern history of advertising in India can be traced from
the 18th century.
In 1912 ITC, the giant tobacco company launched Gold Flake. Major
advertisers during that time were retailers like Spencer’s, Army & Navy
and Whiteaway and Laidlaw. Retailers’ catalogues that were used as
marketing promotions provided early example.
The first advertisements appeared in the Hickely's Bengal Gazette,

India's first newspaper, a weekly magazine. Advertising in the
beginning was mainly for informative purposes rather than promotional
reasons. B Dattaram and Co. claims to be the oldest existing Indian
agency in Mumbai which was started in 1902. Ogilvy and Mater and
Hindustan Thompson Associate agencies were formed in the early
1920s.
In 1939, Lever’s advertising department launched Dalda – the first

major example of a brand and a marketing campaign specifically
developed for India. In the 1950s, various advertising associations
were set up to safeguard the interests of various advertisers in the
industry.
The Advertising Club was thus formed in 1954. In 1967, the first
commercial was aired on Vividh Bharati and later in 1978 the first
television commercial was seen. Various companies now started
advertising on television and sponsoring various shows including
Humlog and Yeh Jo Hai Zindagi.
Arun Nanda and Ajit Balakrishnan formed Rediffusion in 1974. Ravi

Gupta formed Trikaya Grey, RK Swamy merged with BBDO. But it
was only in 1982 that Bombay Dying aired its first colour TV
commercial. Between 1985 -86 a whooping 915 brands and services
28
were visible in the Indian market. Abbey is the award name christened
by the advertising club to motivate ad industry.
In 1986, Mudra Communications created India’s first folk-history TV

serial Buniyaad which was aired on Doordarshan.
Broadly speaking the history of advertising might be divided irito six

periods or stages as follows:
a. Pre-printing period, prior to the Fifteenth century.
b. Early printing period from the Fifteenth century to about 1840.
c. Period of expansion, from 1840 to 1900.
d. Period of consolidation from 1900 to 1925.
e. Period of scientific development, from 1925 to 1945;and
f. Period of business and social integration from 1945 to the present.
a. Pre- Printing Period
The 'Town crier' was the first means of supplementing sign advertising
during the Pre-printing period. The 'criers' had charters from the
Government and were often organized in a sort of union. Their
numbers were usually restricted. In the province of Berry, in France, in
the year 1141, twelve 'criers' organized a company and obtained a
charter from Louis VII giving them the exclusive privileges of town
crying in the province . The Power of commercial criers grew until they
were able in some instances to obtain an edict from the ruler of the
land forcing shopkeepers to employ a 'crier'.
b. Early Printing Period
The invention of the printing press and the revival of learning meant
much to business. It had led to the production of advertisements in
large quantities for wide distribution. The first printed English
advertisement was a 'handbill' or 'poster' announcement written by
William Caxton in 1472.
C Period of Expansion
This period includes, roughly, the sixty years between 1840 and 1900.
It was during these six decades that the great changes, which had a
vital influence on the business of advertising, were witnessed in the
United States.
29
By 1840, railroads in the United States were recognized as an efficient

means of transportation. This had led to the broadening of markets and
had resulted in an increase in the number of advertisements in
magazines, which served large territories. The growth in the numbers
and the circulation of magazines were mainly due to the development
of rapid and long distance transportation.
d. Period of Consolidation
This period stretches over a period of 25 years from 1900 to 1925.1n

1911 a crusade against the ranker types of untruthfulness in
advertising was launched in the United States". Printers Ink. Inc., the
Curtis Publishing Company and other organizations led the fight to
reduce or eliminate the use of gross exaggeration, false testimonials
and other forms of misleading and untruthful advertising'. It was also
during this period that trust - busting, expose and reform programs
became popular.
e. Period of Scientific Development
This period saw the application of the scientific methods to resolve the
problems of advertising. Knowledge was systematized to a much
greater degree than before; and facts were observed, recorded and
classified through the application of various scientific devices. There
were a few "radical" advertising men who were so bold as to suggest
that advertising be subjected to tests to prove or disprove its ability to
work the wonders claimed for it.
f. Period of Business and Social Integration
The post war years were characterized by prosperity in advertising. In

the 1950s came television developed as advertising-media .The
growing popularity of T.V as an important media of mass
communication and recreation had contributed greatly in bringing about
this situation and had also provided the much needed momentum to
the advertising business. This, in its turn, had led to a host of American
companies to start sponsoring T.V programmes. These advertisers
could demonstrate the use of their products and services and present
well-known figures to praise such products and services. They also
could arrange emotions through television.
30
Self check Question
1. By 1840, railroads in the United States were recognized as an

efficient means of transportation.________
2. The first printed English advertisement was a 'handbill' or 'poster'

announcement written by _______in ______.
__________________________________________________________________
4.3 Assignments
1. Collect the regional ads sample
a. Value marketing Era
b. Pre- Printing Period
c. Positioning Era
4.4 Summing Up
The first printed English advertisement was a 'handbill' or 'poster'

announcement written by William Caxton in 1472.The transformation
from Personal selling to value marketing is new beginning in adverting
development
1. True
2. William Caxton in 1472
1. Write briefly about the history and growth of advertising in the world
with special reference to India.
31
4.7 References
1. Sandage C H, Fryburger Vernon,Advertising Theory and

Practice: A.I.T.B.S. & Rotzoll Kim Publishers & Distributors, Delhi

4. Lewis Herschell Gordion :The Complete Advertising and

Marketing

Communication in
a. Marketing; Vakils, Feffer & Simons Pvt. Ltd., Bombay
2. White Roderick:Advertising: What it is and How to do

it:McGrawHill Book Company, London
3. Bulmore Jeremy:Behind the scenes in Advertising; NTC

Publishers, Henley
4. Douglas Torin:The Complete Guide to Advertising: MacMilan,

London
5. Jethwaney Jaishri: Advertising: Phoenix Publishing House Pvt.

Ltd., New Delhi
4.9 Keyword
The “Consumer” Era: During this period a study of human behaviour

and its role in the purchase of products came into focus
32
_________________________________________________________________________
__________________________________________________________________
STRUCTURE
5.0 Objectives
5.1 Introduction
5.2 Global Advertising Environment
5.3 Assignments
5.4 Summing Up
5.7 References
5.9 Keywords
33
_________________________________________________________________________
In the last lesson we had discussed growth and development in

advertising .In present lesson, we shall study about the global
advertising and it is scenario
5.0 Objectives

 Understand Global advertising Environment
5.1 Introduction
This chapter is devoted to give an overview of the global scenario of

advertising and also to study and understand ethics of advertising.
5.2 Global Advertising Environment
Today, advertising is widespread all over the world in different

countries. But advertising trends vary from country to country. The
turbulent environment of the 20th century, with rapid changes in
technology, products, processes, methods, cut throat competition
and emergence of new marketing challenges only indicates the
significant role of advertising, which is expected to play in the survival
and growth of business units.
Advertising is considered as an important variable in the global

business. Advertising is second only to films as far as its influence on
the society is concerned. Advertising is, in fact, the most influential and
powerful medium in the present commercial society. It creates an entire
worldview, shaping our attitude and beliefs. Advertisements influence
every aspect of our life and most of us are hardly aware of it.
The central position of media in daily life ensures its role in advertising
business. The meanings that are created by media are not fixed, but
they vary according to cultural, historical and social context of the
people concerned. The common man judges the products on the basis
of the understanding his society and culture has inculcated into them.
34
The advertising industry although a few centuries old, has grown by

leaps and bounds since the industrial revolution, but more specifically
in the current century. In India from a mere 14 agencies in 1940, the
number of accredited agencies has now increased to 695 in 1997. The
turnover has also increased many hundred fold. According to industry
estimates, the turnover in 1996 stood at a whopping Rs. 4727 crores.
There has been roughly an increase of 20 per cent in the year 1997
(about Rs.5, 500 crores).
Global media is now driven by economics than creativity. Those

players who are changing with times would survive. Digitisation has
blurred the difference between the various media. Convergence is here
to stay, and those players who can quickly adapt and pounce on the
opportunities are the ones who are going to dominate advertising
scene for years.
_____________________________________________________________________
Self check Question
1) The central position of media in daily life ensures its role in

advertising business.________
2) ______ influence every aspect of our life and most of us are

hardly aware of it.
_____________________________________________________________________
5.3 Assignments
1. Prepare the list of online shopping portal
a. Global Media
b. Global Advertising
35
5.4 Summing Up
Global advertising scenario and the opportunities are the ones who are
going to dominate advertising scene for years. Advertising is
considered as an important variable in the global business. Advertising
is second only to films as far as its influence on the society is
concerned.
1. True
2. Advertisement
1. Enumerate the new global trends of advertising with suitable

examples.
. 5.7 References
1) Philip Kotler, Marketing Management, Prentice Hall of India

2) Jethwaney, Jaishri, Advertising, Phoenix Publishing House Pvt.
Delhi
3) Chunawala, S.A., Sethia K.C, Foundations of Advertising Theory
&Practice Himalaya Publication House, Mumbai
4) J.V. Vilanilam & A.K. Verghese, Advertising Basics
1) Brand Equity – The Economic Times

2) Pitch
3) Brand Reporter
4) Ogilvy, David, Ogilvy on Advertising, Prion Book Ltd
5.9 Keywords
 Ad space- space on a web page that is reserved for ads
36
_________________________________________________________________________
__________________________________________________________________
STRUCTURE
6.0 Objectives
6.1 Introduction
6.2 ASCI
6.3 Doordarshan Code
6.4 Laws and acts Concerning Advertising
6.5 Summary
6.6 Assignments
6.7 Summing Up
6.10 References
6.12 Keywords
37
____________________________________________________________________________
______________________________________________________________________
In the last lesson we had discussed Global scenario of.In present lesson,
we shall study about the Ethical & Regulatory Aspects of Advertising .
6.0 Objectives

o Understand ASCI
o Understand Broadcasting Code
6.1 Introduction
There are Regulation and Control over Advertising business. The

Government of India has setup separate ministry to promote, regulate and
control over advertising. We shall discuss each of regulatory and
controlling agencies of advertising separately as follows :
6.2 Advertising Standards Council of India (ASCI)
There are certain laws, standards and codes which provide guidelines for
ethical and professional management of business. These laws are called
self regulation laws.
These self-regulation laws provide guidelines for the advertisers,

publications and advertising agencies. These laws mainly prohibit those
aspects of advertising which are either untruth or harmful to the society.
There are more chances of being wrong or untruth advertisements in the

market, which mislead the consumers. Unethical advertisements not only
harm the consumers but it also produces losses to the society. In long run
such advertisements do not succeed.
38
Codes of ASCI :
The main objective of the code is to control the content of every

advertisement. This is helpful to manufactures also as it regulates their
ads. Because of these codes the consumers are mostly benefited as they
are not supplied wrong information and they are not misled.
Objectives:
The codes of ASCI have following objectives:
1. It ensures the truthfulness in the advertisements and checks that no

misleading information is presented.
2. It puts control on offensive ads of public decency.
3. It ensures true and fair competition and avoids artificial
competition.
4. It restricts ads of hazardous products from the society.
Characteristics:
The codes laid-down by ASCI have following characteristics:
1. Extent of Application : The codes applies to all the advertisements

that appear by any media. For example it may be on television, over radio,
in cinema or posters.
2. Code and Consumers : The code does not permit any ad
misleading the consumers. The untruthful advertisements with false
information are not allowed. If any such ad is presented, the consumers
can bring it to the notice of ASCI.
3. Aim of Code : The code is laid down with the aim to ensure the
public protection and guard them against false and untruthful
advertisements
4. Responsibility of Media Owner : Any media owner must view each
advertisement offered for publication to them from the point of view of the
code. If the feels that any particular ad is against the code, he can
approach to ASCI and inform accordingly. If ASCI finds the violation of
code, the media owner must not publish the advertisement.
5. Ads for Children : The ASCI code also keeps control on ads meant
for children. Such ads should not contain any information or idea either in
39
illustration or words, which might cause moral, physical or mental harm to

children.
6. Code and Foreign Ads : The ASCI code is limited to advertisements
Published in India only. It does not apply to advertisements on foreign
medias.
7. Identical Ads : The code also requires that an ad should not be just
a copy of other advertisements. It should not be identical in respect of
general layout, copy clogs, visual, presentation, music, etc. This restriction
is put in order to avoid confusion and misleading of consumers.
ASCI CODES- Codes of Self Regulation
. CHAPTER-I.
To ensure the Truthfulness and Honesty of Representations and Claims

made by Advertisements and to Safeguard against misleading
Advertisements
1. Advertisements must be truthful. All descriptions, claims and

comparisons which relate to matters of objectively ascertainable fact
should be capable of substantiation. Advertisers and advertising
agencies are required to produce such substantiation as and when
called upon to do so by The Advertising Standards Council of India.
2. Where advertising claims are expressly stated to be based on or

supported by independent research or assessment, the source and
date of this should be indicated in the advertisement.
3. Advertisements shall not, without permission from the person, firm or

institution under reference, contain any reference to such person, firm
or institution which confers an unjustified advantage on the product
advertised or tends to bring the person, firm or institution into ridicule
or disrepute. If and when required to do so by the Advertising
Standards Council of India, the advertiser and the advertising agency
shall produce explicit permission from the person, firm or institution to
which reference is made in the advertisement.
4. Advertisements shall neither distort facts nor mislead the consumer by

means of implications or omissions. Advertisements shall not contain
statements or visual presentation which directly or by implication or by
omission or by ambiguity or by exaggeration are likely to mislead the
40
consumer about the product advertised or the advertiser or about any

other product or advertiser.
5. Advertisements shall not be so framed as to abuse the trust of

consumers or exploit their lack of experience or knowledge. No
advertisement shall be permitted to contain any claim so exaggerated as
to lead to grave or widespread disappointment in the minds of consumers.
For example:
(a) Products shall not be described as `free’ where there is any direct
cost to the consumer other than the actual cost of any delivery, freight, or
postage. Where such costs are payable by the consumer, a clear
statement that this is the case shall be made in the advertisement.
(b) Where a claim is made that if one product is purchased another

product will be provided `free’, the advertiser is required to show, as and
when called upon by The Advertising Standards Council of India, that the
price paid by the consumer for the product which is offered for purchase
with the advertised incentive is no more than the prevalent price of the
product without the advertised incentive.
(c) Claims which use expressions such as “Upto five years’ guarantee”
or “Prices from as low as Rs. Y” are not acceptable if there is a likelihood
of the consumer being misled either as to the extent of the availability or
as to the applicability of the benefits offered.
(d) Special care and restraint has to be exercised in advertisements

addressed to those suffering from weakness, any real or perceived
inadequacy of any physical attributes such as height, obesity, illness,
impotence, infertility, baldness and the like, to ensure that claims or
representations directly or by implication, do not exceed what is
considered prudent by generally accepted standards of medical practice
and the actual efficacy of the product.
(e) Advertisements inviting the public to invest money shall not contain
statements which may mislead the consumer in respect of the security
offered, rates of return or terms of amortisation; where any of the
foregoing elements are contingent upon the continuance of or change in
41
existing conditions, or any other assumptions, such conditions or

assumptions must be clearly indicated in the advertisement.
(f) Advertisements inviting the public to take part in lotteries or prize

competitions permitted under law or which hold out the prospect of gifts
shall state clearly all material conditions as to enable the consumer to
obtain a true and fair view of their prospects in such activities. Further,
such advertisers shall make adequate provisions for the judging of such
competitions, announcement of the results and the fair distribution of
prizes or gifts according to the advertised terms and conditions within a
reasonable period of time. With regard to the announcement of results, it
is clarified that the advertiser’s responsibility under this section of the
Code is discharged adequately if the advertiser publicizes the main results
in the media used to announce the competition as far as is practicable,
and advises the individual winners by post.
1. Obvious untruths or exaggerations intended to amuse or to catch

the eye of the consumer are permissible provided that they are clearly to
be seen as humorous or hyperbolic and not likely to be understood as
making literal or misleading claims for the advertised product.
2. In mass manufacturing and distribution of goods and services it is

possible that there may be an occasional, unintentional lapse in the
fulfilment of an advertised promise or claim. Such occasional,
unintentional lapses may not invalidate the advertisement in terms of this
Code.
In judging such issues, due regard shall be given to the following:
(b) Whether the claim or promise is capable of fulfilment by a typical

specimen of the product advertised.
(c) Whether the proportion of product failures is within generally

acceptable limits.
(d) Whether the advertiser has taken prompt action to make good the
deficiency to the consumer.
CHAPTER II
To ensure that Advertisements are not offensive to generally accepted

standards of Public Decency.
42
Advertisements should contain nothing indecent, vulgar or repulsive which

is likely, in the light of generally prevailing standards of decency and
propriety, to cause grave or widespread offence.
CHAPTER III
To safeguard against the indiscriminate use of Advertising in situations or

of the Promotion of Products which are regarded as Hazardous or Harmful
to society or to individuals, particularly minors, to a degree or of a type
which is Unacceptable to Society at Large.
1. No advertisement shall be permitted which:
i. Tends to incite people to crime or to promote disorder and violence or

intolerance.
ii. Derides any race, caste, colour, creed or nationality.
iii. Presents criminality as desirable or directly or indirectly encourages

people - particularly minors - to emulate it or conveys the modus
operandi of any crime.
iv. Adversely affects friendly relations with a foreign State.
2. Advertisements addressed to minors shall not contain anything,

whether in illustration or otherwise, which might result in their physical,
mental or moral harm or which exploits their vulnerability. For example,
Advertisements:
i. Should not encourage minors to enter strange places or to converse

with strangers in an effort to collect coupons, wrappers, labels or the
like.
ii. Should not feature dangerous or hazardous acts which are likely to
encourage minors to emulate such acts in a manner which could cause
harm or injury.
iii. Should not show minors using or playing with matches or any
inflammable or explosive substance; or playing with or using sharp
knives, guns or mechanical or electrical appliances, the careless use of
which could lead to their suffering cuts, burns, shocks or other injury.
43
iv. Should not feature minors for tobacco or alcohol-based products.
v. Should not feature personalities from the field of sports, music and
cinema for products which, by law, either require a health warning in
their advertising or cannot be purchased by minors.
3. Advertisements shall not, without justifiable reason, show or refer to

dangerous practices or manifest a disregard for safety or encourage
negligence.
6.3 Doordarshan Code
Advertising should be designed as to conform to the laws of the country

and should not offend against morality, decency and religious
susceptibilities of the people.
1. No advertisement should be permitted :
i. To derides any race, caste, colour, creed, nationality except wherein

such usage would be for the specific purpose of effective
dramatisation, such as combating prejudice;
ii. Which is against any of the objective principles, or provision of the
constitution of India;
iii. Which will tend to incite people to crime or to promote disorder,
violence, or breach of law or glorifies violence or obscurity in any
way;
iv. Which presents criminality as desirable;
v. Which would be adversely affect friendly relations with foreign States;
vi. Which exploits the national emblem, or any part of constitution, of the
person or personality of a national leader of State Dignitary;
vii. No advertisement shall be permitted the objects whereof are mainly
of a religious or political nature.
viii. Advertisements must not be directed towards any religious or political
end or have any relations to any industrial dispute;
ix. Advertisement for services concerned with the following are not
acceptable : (a) Money lenders; (b) Chit Funds and Savings
Schemes other than those conducted by nationalised banks; (c)
Matrimonial agencies; (d) Unlicensed employment services; (e)
Fortune-tellers or sooth-Sayers, etc., and those with the claim of
hypnotism would be excluded from advertising on TV;
x. Betting, tips and guide books, etc., relating to horse-racing or other
games of chance shall not be accepted;
44
xi. No advertisement shall contain reference which are likely to lead the
public to infer that the product advertised or any of its ingredients has
some special property or quality which is incapable of being
established, e.g., cure for baldness;
xii. Scientific or statistical excepts from technical literature, etc., must be
used only with a proper sense of responsibility to the ordinary viewer.
Irrelevant data and scientific jargon must not be used to make claims
appear to have a scientific basis they do not possess. Statistics of
limited validity should not be presented in such a way to make in
appear that they are universally true;
xiii. Advertisers of their agents must be prepared to produce evidence to
substantiate any claims or illustrations.
2. No advertisement message shall in any way be presented as News.
3. The items advertised shall not suffer from any defect or efficiency as
mentioned Consumer Protection Act, 1986.
4. No advertisement shall contain the words „Guarantee tee‟ or

Guaranteed‟, etc., unless the full terms of the guarantee are available for
inspection by the Director General Doordarshan, and are clearly set out in
the advertisement and are made available to the purchaser in writing at
the point of sale or with the goods.
5. In its depiction of women no ad shall violate the constitutional

guarantees to all citizens such as equality of status and opportunity and
dignity of the individual. In particular, no advertisement shall be permitted
which projects a derogatory image of women. Women must not be
portrayed in a manner that emphasizes passive, submissive qualities and
encourages them to pay a subordinate, secondary role in the family and
society. The portrayal of men and women should not encourage mutual
disrespect. Advertiser shall ensure that the portrayal of the female form is
tasteful and aesthetic, and is within the well established norms of good
taste and decency.
6. No advertisement for a product or service shall be accepted if it

suggests in any way that unless the children themselves buy or encourage
other people to buy the products or services, they will be failing in their
duty or lacking in loyalty to any person.
45
7. No advertisement of any kind of jewellery or precious stones shall be

accepted. Also no ad should be permitted on cigarettes, alcohol, tobacco
products and other intoxicants.
8. Information to consumer in matters of weight, quality or prices of

products where given shall be accurate.
9. Any such effects which might startle the viewing public must be
incorporated in advertisements. For example the use of the following
sound effects will not be permitted:
(i) Rapid gunfire or rifle shorts (ii) Sirens
(iii) Bombardments (iv) Screams
(v) Raucusus laughter and like
Case Study: Bacardi: In 1998 the then Union Minster for Information and
Broadcasting summoned heads of various satellite channels and advised
them to take "objectionable" programmes and ads off air. Commenting on
it, columnist Gurbit Singh in Brand Equity commented that in the absence
of a comprehensive broadcasting law, there were doubts whether the
government had the powers to issue edicts on this score. The
broadcasters, however, did not like to take any chances. The Bacardi Rum
as was withdrawn by the Star TV's channels and later introduced only
after prime time hours. Pre-empting governmental code on liquor
advertising, the industry has offered a self-regulatory code, developed
under the chairmanship of Kiran Karnik of the Discovery Channel in India.
Some highlights:
Advertisements shall not
 Encourage minors, non users to consume liquor products; abstinence,

moderation not to he presented in a negative light.
 Suggest liquor consumption leads to extraordinary success in various
areas of human endeavour.
 Overtly seek to encourage increased consumption and buying large
stocks of liquor products.
 Resort to surrogate advertising to contravene the existing law, rules and
code. Be aired between 6.00 a.m. and 9.00 p.m. for spirits.
Curbs on contents
46
• Content should not target youth below 18, and models should be in
the above 21 age group.
• Ads should not suggest that liquor consumption is safe, healthy and
natural.
• No link to be established with manliness, courage or daring or a
sign of female emancipation or be associated with success in sports or
academic or sexual performance.
• Celebrity endorsements to be avoided.
• Avoid suggestions that liquor is a stimulant or a sedative or that it
enhances mental or physical performance.
Media exposure
• No liquor as on programmes directed wholly/mainly at minors under

18s.
• No liquor ads between 6.00 a.m. and 9 p.m. display of logo or
mention of brand name to be permitted, provided
product/container/likeness not shown.
Surrogate code
 No advertising for non-liquor products bearing the same name as a

liquor product, which are not made available in reasonable quantities with
regard to the scale of the advertising, media used, markets targeted.
The brighter side of all this is that as consumer awareness grows,

marketers are fast learning that in these days when the consumer is king,
nothing but the best would do.
6.4 LAWS AND ACTS CONCERNING ADVERTISING
Some of the major legal provisions are as follows:
1. Section 292 and 293 of the Indian Penal Code, 1860, prohibit 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.
2. The Young Persons (Harmful Publications) Act, 1956, prohibits the
47
dissemination of publications deemed to be harmful to persons under the

age of twenty years.
3. The Indecent Representation of Women (Prohibition) Act, 1986,

forbids the depiction of women in an indecent or derogatory manner in the
mass media.
4. The Children Act, 1960, prohibits the disclosure of the name and
address and other particulars of any child involved in certain proceedings.
5. The Emblems and Names (prevention of Improper Use) Act, 1950,

forbids the use by any private party of certain names, emblems, etc.
6. The Prevention of Insults to the National Honour Act, 1971, forbids

the bringing into contempt of the national flag or the Constitution of India in
any manner.
7. The Indian Penal Code, 1860, prohibits the publication of matters

connected unauthorized lotteries, while the Indian Post Office Act, 1898,
imposes a similar prohibition on the transmission by the post of such
matter. The Indian Penal Code, 1860, also prohibits the publication of
appeals using national symbols for furthering the prospects of any
candidate at an election.
8. The Drugs and Magic Remedies (objectionable Advertisement) Act,

1954, prohibits advertisements for products and services claiming to cure
certain medical conditions.
9. The Prize Competitions Act, 1955, prohibits the publication of

matter with unauthorized prize competitions, while the Prize Chits and
Money Circulation Schemes (Banning) Act, 1978, imposes a similar
prohibition in respect of chits and money circulation schemes.
6.5 Summary
The main objective of the advertisement is to create a favourable climate

for maintaining and improving sales. Customers are to be reminded about
the product and the brand. It may induce new customers to buy the
product by informing them its qualities since it is possible that some of the
customers may change their brands. So advertiser makes ethical
showcase of content
48
______________________________________________________________
Self check Question
1. ______________, prohibits the publication of matters connected

unauthorized lotteries.
2. ____________, prohibits the disclosure of the name and address

and other particulars of any child involved in certain proceedings
______________________________________________________________________
6.6 Assignments
1. Collect the banned/controversial ad of Indian Advertising industry
a .ASCI
b. Broadcasting Code
6.7 Summing Up
This lesson dealt with various Ethical & Regulatory Aspects of Advertising.
1. The Indian Penal Code, 1860
2. The Children Act, 1960
1. What laws are related to advertising? Explain with examples.
2. What is ethic? Explain the importance of ethics in advertising.
3. Explain the role of Advertising Standard Council of India (ASCI) in

regulating advertising in India?
49
6.10 References
1. Philip Kotler, Marketing Management, Prentice Hall of India

2. Jethwaney, Jaishri, Advertising, Phoenix Publishing House Pvt. Delhi
3. Chunawala, S.A., Sethia K.C, Foundations of Advertising Theory
4. J.V. Vilanilam & A.K. Verghese, Advertising Basics
1. Brand Equity – The Economic Times

2. Pitch
3. Brand Reporter
4. Ogilvy, David, Ogilvy on Advertising, Prion Book Ltd
3.11 Keywords
The main objective of the Advertising standard council of india (ASCI)

code is to control the content of every advertisement. This is helpful to
manufactures also as it regulates their ads.
50
Unit II [Advertising as a tool & process]
Lesson 1 Advertising as communication tool, communication

process & advertising
Lesson 2 Models of Advertising Communication
Lesson 3 Advertising as a social process- consumer welfare,

standard of living and cultural values
51
___________________________________________________________________
Lesson 1 Advertising as communication tool, communication

process & advertising
__________________________________________________________________
STRUCTURE
1.0 Objectives
1.1 Introduction
1.2 Advertising as a tool of Communication
1.3 Process of Advertising
1.4 Assignments
1.5 Summing Up
1.8 References
1.10 Keywords
52
___________________________________________________________________
Lesson 1 Advertising as communication tool, Communication process &

advertising
___________________________________________________________________
In unit 2 we shall discuss the Advertising as a effective communication

tool communication process. The models have been developed which
have specifically identified the sequence of events, which must take place
between receipt of the message and desired action
.In present lesson we shall study Advertising as a communication tool.
1.0 Objective
After going through this lesson, you should be able to:
 Discuss advertising as communication tool
1.1 Introduction
Advertising is a form of communication that attempts to persuade the
potential customers to purchase or consume more of a particular brand of
product/services. Advertisement communicates an idea, a message or a
belief. An advertisement would be effective only if the media audience
accepts that message and is motivated to take the required action.
Several models have been developed which have specifically identified
the sequence of events, which must take place between receipt of the
message and desired action.
1.2 Advertising as a tool of Communication
Advertising is a form of mass communication with the public. It is usually

one sided i.e. from the company to the buyer/potential user of the product.
It is a form of communication that typically attempts to persuade the
potential customers to purchase or consume more of a particular brand of
product/services. As rightly defined by Bovee, “Advertising is the non-
53
personal communication of information usually paid for and usually

persuasive in nature about products, services or ideas by identified
sponsors through the various media."
Advertising an important tool of communication is use to promote

commercial goods and services, it can also be used to inform, educate
and motivate the public about non-commercial issues such as AIDS, Don't
drink and drive, Polio, Save water, electricity, animals and trees etc.
"Advertising justifies its existence when used in the public interest - it is
much too powerful tool to use solely for commercial purposes." - Attributed
to Howard Gossage by David Ogilvy.
Advertising is most effective with products that can be differentiated from

similar products based on consumer accepted quality difference. Tom
Egelhoff has classified advertising in 6 types, i.e. for company image,
name brands, advertising service instead of a product, business-to-
business advertising, co-op advertising and public service advertising.
Television, Radio, Cinema, Magazine, Journal, Newspaper, Video Game,
Internet, Billboard, Transit Cards, Sandwich Board, Skywriting are the
different mediums used to deliver the message. The companies choose
the method according to the cost, budget, target audiences and their
response. However, word of mouth advertising/ personal
recommendations is an unpaid form of advertising which can provide good
exposure at minimum cost.
Various new forms of advertising are growing rapidly. One of them is

Social Networking Advertising. It's an online advertising with a focus on
social networking sites and use of the internet/ World Wide Web in order
to deliver marketing messages and attract customers. The other is E-Mail
advertising; E-Mail Marketing is often known as "opt-in-email advertising"
to distinguish it from spam. "I believe 'credibility' is one of the biggest
issues yet to be addressed by Internet advertisers. Everyone has their eye
on 'privacy' as a critical concern, but credibility will be far more enabling or
disabling to website profitability. A company can have a web presence
and, unless the brand name is familiar, consumers have no way of
knowing whether it's a big company, a small company, an honest
company, or a single scoundrel.
For a message to be effective keep it short, simple, crisp and easy to

absorb. It is essential to translate the products/services offer into
meaningful customer benefit by advertising and to build awareness and
54
generate response. REMEMBER: - THE AIDA MODEL -ATTENTION,

INTEREST, DESIRE AND ACTION.
In the modern scenario, most of the companies outsource their advertising

activities to an advertising/ad agency which is a service business
dedicated to creating, planning and handling advertising and sometimes
also performs other forms of promotion like public relations, publicity and
sales promotion for its client. Departments of the advertising agency
includes: -
The Creative Department (who creates an actual advertisement), Account

Service (who is responsible for co-coordinating the creative team, the
client, media and the production staff), Creative Service Production (here
the employees are the people who have contacts with the suppliers of
various creative media), Other department and Personnel. (like public
relations). As said by David Ogilvy once that the relationship between a
manufacturer and his advertising agency is almost as intimate as the
relationship between a patient and his doctor. Make sure that you can life
happily with your prospective client before you accept his account.
It can be conclude by the famous words of Bruce Barton (1955),

"Advertising is of the very essence of democracy. An election goes on
every minute of the business day across the counters of hundreds of
thousands of stores and shops where the customers state their
preferences and determine which manufacturer and which product shall
be the leader today, and which shall lead tomorrow."
1.3 Process of Advertising
Advertising goes through the following process:
Developing the advertisement Programme
1. Identifying the Target: To the extent that time and money permits, the
target audience for the advertising program is the target market for the
firm’s product, which is identified from marketing research and market
segmentation studies.
2. Specifying Advertising Objectives: After the target audience is

identified, a decision must be reached on what the advertising campaign is
to be accomplished. Specific advertising objectives will be determined by
the firm’s overall marketing strategy.
55
Typical objectives are:
 To support personal selling
 To reach people inaccessible to the sales force
 To improve dealer relations
 To enter a new geographic market or attract a new market segment
 To introduce a new product
Two broad distinctions are often made in the purpose of an advertising

communication. First the message may be informational. It does not
seek immediate action on the part of the audience; rather it seeks to
inform the audience of the availability and/or nature of the product.
Second, the purpose may be persuasive. Here the message or campaign
has the explicit purpose of increasing sales through persuasion.
3. Setting the Advertising Budget: After setting the advertising

objectives, a company must decide on how much to spend. Determining
the ideal amount for the budget is difficult because there is no precise way
to measure the exact results of spending advertising money. When setting
the budget following factors are considered:
 Stage in the Product Life Cycle
 Market Share
 Competition in Market
 Advertising Frequency
 Product differentiation
4. Message Formulation: The central element of an advertising program

is the message or campaign that the target audience is intended to see. It
is formulated after considering knowledge of the target audience and
the stated objectives of the advertisement program. Any message can
be presented in different execution styles such as following:
 Slice of Life
 Lifestyle
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 Fantasy
 Mood or image
 Musical
 Personality Symbol
 Technical expertise
 Scientific evidence
 Testimonial evidence
5. Selecting the Right Media: Every advertiser must decide where to

place the advertisements. Three levels of decision making enter into
advertising media selection. First the type of medium must be selected.
Of the major media which will be used among newspaper, television, radio
or magazines. Second, a particular category of medium must be
chosen e.g. television has network and cable; magazines include general
interest and special-interest categories. Finally, a specific vehicle must
be chosen e.g. if an advertiser chooses radio, he has to determine on
which stations to use in each city.
6. Scheduling the Advertising: Scheduling is concerned with the timing

of advertising messages. The following factors are considered while
scheduling the advertising program:
 Buyer Turnover – how often new buyers enter market to buy products
 Purchase Frequency – more frequently the product is purchased, the

less repetition is required
 Forgetting Rate – the speed with which buyers forget the brand if
advertising is not seen. Scheduling can be for short range and long range:
 Long Range Timing: The long-range media scheduling deals with the
timing of advertising expenditures over a year's time.
 Short Range Timing: The short-range timing decision involves the

scheduling of messages over short time periods: a month, a week, or even
a day.
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Executing advertisement program
1. Pre-testing Advertising: Pre-tests are conducted before the

advertisements are placed in any medium. Pre-tests of communication
effects attempt to identify the strengths and weaknesses of an ad prior to
its full-scale implementation. There are three procedures for pre-testing:
 The consumer jury involves a sample of consumers each of whom

evaluates a set of alternative ads in terms of likelihood of reading each ad,
its interest-generating abilities, how convincing the ad is, and how
effective it would be in causing a purchase.
 In portfolio tests consumers are given a portfolio of ads consisting of a
mix of the ads being tested and dummy adds.
 Psychological tests measure consumer reaction to ads as shown by
galvanic skin response, blood pressure, pupil dilation, salivation, and even
brain wave activity.
2. Carrying out Advertising Program: After pre-testing the

advertisements, they are finally executed.
To manage and perform the advertising activities an organization has

three alternatives as follows:
To develop an internal advertising department
To use an advertising agency
To use both a department and an agency
Evaluating the advertisement program
1. Post-testing Advertising: Post-testing is done in order to see that how

much has been the advertisement program effective. The two major post-
tests of add campaign are recall and recognition.
 Recall tests use a sample of consumers who regularly use a media

source in which several ads appear. Respondents are asked, in unaided
or aided fashion, to recall advertisers, and products they saw in the media
source under study and the nature of the message.
 Recognition tests ask consumers to indicate for a specific print medium

whether certain ads in the issue were noticed and read.
58
However often sales effects are used as a measurement to post-test an

advertisement program.
2. Making Needed Changes: After post-testing, the required changes are

made in the advertisement program. The defects of the advertising
program are tried to be removed in this step after the advertising program
has been evaluated and the main weaknesses of the advertising program
have been pointed out.
__________________________________________________________
Self Check Questions
1. E-Mail Marketing is often known as __________ to distinguish from spam
2. Tom Egelhoff has classified advertising in 6 types, i.e.

___________________
___________________________________________________________
1.4 Assignments
1. Collect the effective Public serving messages
a. Recall test
b. Recognition test
1.5 Summing Up
Adverting as a tool to be favourably inclined towards its products. It may

ask people to act on the message. Both rational and emotional appeals
could be used to do so. The central element of an advertising program is
the message or campaign that the target audience is intended to see.
59
1. opt-in-email advertising
2. for company image, name brands, advertising service instead of a

product, business-to-business advertising, co-op advertising and public
service advertising.
1 Explain the role of advertising as marketing communication tool with a

suitable diagram.
2. Explain the communication process of advertising in modern marketing

system with a suitable diagram.
1.8 References


2. Pitch
3. Brand Reporter
1.10 Keywords
1. In portfolio tests consumers are given a portfolio of ads consisting of

a mix of the ads being tested and dummy adds.
2. Psychological tests measure consumer reaction to ads as shown by
galvanic skin response, blood pressure, pupil dilation, salivation, and
even brain wave activity.
60
___________________________________________________________________
__________________________________________________________________
STRUCTURE
2.0 Objectives
2.1 Introduction
2.2 AIDA – Awareness, Interest, Desire & Action) model
2.3 DAGMAR- Defining Advertising Goals for Measured
Advertising Results
2.4 Maslow's hierarchy and Advertising
2.5 Assignments
2.6 Summing Up
2.9 References
2.11 Keywords
61
_____________________________________________________________________
_____________________________________________________________________
In the last lesson we had discussed Advertisement as a tool for

communication .In present lesson, we shall study about the modals of
advertising to generate desirable action.
2.0 Objectives

 Define Model of Advertising
2.1 Introduction
In present lesson, we shall study about the modals of advertising to
generate desirable action.
2.2 AIDA – Awareness, Interest, Desire & Action) model
AIDA model explains how advertising works. It shows a set of stair-step

stages which describe the process leading a potential customer to
purchase.
 The stages, Attention, Interest, Desire, and Action, form a linear

hierarchy.
 It demonstrates that consumers must be aware of a product's

existence,
 Be interested enough to pay attention to the product's

features/benefits, and
 Have a desire to benefit from the product's offerings.
 Action, the fourth stage, would come as a natural result of movement

through the first three stages. Although this idea was rudimentary, it led to
the later emerging field of consumer behavior research.
62
Reliance India Mobile campaign based on

AIDA model
Awareness- the elaborate advertisement

where Mukesh Ambani spoke about the
new project being introduced on his
father’s 70th birthdays.
Interest- was generated as the company

spokesperson featured in the ad, as a
representative of the company image and
also spoke about introducing a new
technology – CDMA.
Desire- was created with various offers

like free SMS, 40paise STD calls, easy payment schemes, and discount coupons
worth Rs. 1 lakh.
Action- Dhirubhai Ambani Pioneer offers induced people to go for the product.
Also the model can be applied to marketing movies:Where in the initial stage
awareness may be created with attention by airing the promos on television.
Attention is created with the help of key features like starcaste, music, locations,
etc.
Interest is then created with the release of the music and by introducing the
theme and sales of audiocassettes and CDs indicate the same.
Desire is created with hoardings of the movie and also with the help of several
contests and free prizes and attractions like stars visiting the music shops.
In the last stage people are moved to action in the form of buying tickets as a
result of the ratings given to the movies in the dailies, etc
To illustrate one such movie through the AIDA model is
BEND IT LIKE BECKHAM
A - Promos had David Beckham and Football
I - Introduced Music and Dialogues of film. Also the tagline: “Who wants to cook
Aloo Gobi when you can bend a ball like Beckham.”
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D - A fresh movie with a different theme. The film also talked about the
success of film overseas
A - Got 3– and 4–star ratings and publicized that in promos.
Criticism of AIDA
Hierarchy of effects model has been criticized on some points, such as

that people do not exactly follow these sequences
People in all the cases may not strictly follow a series of stages as
are explained in the hierarchy of effects model. They may in certain
situations, directly jump to a particular stage, not following the
stages in a logical pattern.
For e.g. a child accompanying mother to a grocery store is likely to

demand a product without indulging in stages like becoming aware
about it, being interested by it and then buying it. He may just be
lured by the display.
2.3 DAGMAR - Defining Advertising Goals for Measured

Advertising Results
Russell Colley (1961) developed a model for setting advertising objectives

and measuring the results. This model was entitled ‘Defining Advertising
Goals for Measured Advertising Results- DAGMAR.’
DAGMAR model suggests that the ultimate objective of advertising must

carry a consumer through four levels of understanding: from unawareness
to 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—finally, he or
she actually buy that product.
Awareness
Awareness of the existence of a product or organization is necessary

before the purchase behavior can be expected. Once the awareness has
been created in the target audience, it should not be neglected. If there is
neglect, the audience may become distracted by competing messages
and the level of awareness of focus product or organization will decline.
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Awareness needs to be created, developed, refined or sustained,

according to the characteristics of the market and the particular situation
facing an organization at any one point of time.
Awareness grid
Involvement
High Low
Sustain current Refine

levels of awareness
HIGH awareness
Awareness
Build awareness Create

quickly. association of
LOW awareness of
product with
product class
need
In situations where:
Buyer experiences high involvement:
Is fully aware of a product’s existence, attention and awareness levels

need only be sustained and efforts need to be applied to other
communication tasks, sales promotion and personal selling are more
effective at informing, persuading and provoking consumption of a new car
once advertising has created the necessary levels of awareness.
The LG golden eye ads that are repeatedly shown inspite of high
awareness to ensure top of mind awareness and retain the existing
awareness levels.
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Where low levels of awareness are found, getting attention needs to be

the prime objective in order that awareness can be developed among the
target audience.
Sahara Homes ad that features Amitabh Bachhan saying “ jaha base

Bharat”. Awareness level is low, however it is a high involvement decision.
Thus adequate attention is required and awareness levels are raised with
use of well-known and trusted celebrities.
Buyer experiences low involvement:
If buyers have sufficient level of awareness, they will be quickly prompted

into purchase with little assistance of the other elements of the mix.
Recognition and brand image may be felt by some to be sufficient triggers
to stimulate a response. The requirement in such a situation would be to
refine and strengthen the level of awareness so that it provokes interest
and stimulates greater involvement during recall or recognition.
Parle G ad that talks about it being the largest seller “ Duniya ka sabse
Zyada bikne waala biscuit”. Parle G as a brand already enjoys high levels
of awareness and requires low involvement decision, thus communication
is mainly intended to refine awareness.
If buyers have low level of awareness, the prime objective has to be to

create awareness of the focus product in association with the product
class.
When coils were popular in use and then the different repellants entered
the market, awareness had to be created about their benefits and use.
Comprehension
Awareness on its own may not be sufficient to stimulate a purchase.
Knowledge about the product or the organization is necessary. This can
be achieved by providing specific information about key brand attributes.
In attempting to persuade people to try a different brand of water, it may

be necessary to compare the product with other mineral water products
and provide an additional usage benefit, such as environmental claims.
The ad of Ganga mineral water, featuring Govinda, which banked on the
purity aspect. They related the purity of the water with that of river Ganga.
Conviction
The next step is to establish a sense of conviction. By creating interest
66
and preference, buyers are moved to a position where they are convinced
that a particular product in the class should be tried at the next
opportunity. To do this, audience’s beliefs about the product have to be
moulded and this is often done through messages that demonstrate the
product’s superiority over a rival or by talking about the rewards as a result
of using the product.
Many ads like Thumbs Up featured the reward of social acceptance as

‘grown up’. It almost hinted that those who preferred other drinks were
kids.
Action
Communication must finally encourage buyers to engage in purchase

activity. Advertising can be directive and guide the buyers into certain
behavioural outcomes, Use of toll free numbers, direct mail activities and
reply cards and coupons. Tupperware, Aqua Guard, are famous in Indian
cities as a result of its personal selling efforts.
For high involvement decisions, the most effective tool in the

communication mix at this stage in the hierarchy is personal selling.
Through the use of interpersonal skills, buyers are more likely to want to
buy a product than if personal prompting is absent.
Characteristics of Objectives
A major contribution of DAGMAR was Colley’s specification of what

constitutes a good objective. Four requirements or characteristics of good
objectives were noted
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
67
various communication response variables such as awareness,

knowledge, attitudes, image, etc. The objectives should also specify how
much change or movement is being sought such as increase in
awareness levels, creation of favorable attitudes or number of consumers
intending to purchase the brand, etc. a benchmark is also a prerequisite to
the ultimate measurement of results, an essential part of any planning
program and DAGMAR in particular.
Specified time period—a final characteristic of good objectives is the

specification of the time period during which the objective is to be
accomplished, e.g. 6months, 1 year etc. With a time period specified a
survey to generate a set if measures can be planned and anticipated.
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.
2.4 Maslow's hierarchy and Advertising
Abraham Maslow's Hierarchy of Needs motivational model
Abraham Maslow developed the Hierarchy of Needs model in 1940-50s

USA, and the Hierarchy of Needs theory remains valid today for
understanding human motivation, management training, and personal
development. Indeed, Maslow's ideas surrounding the Hierarchy of Needs
concerning the responsibility of employers to provide a workplace
environment that encourages and enables employees to fulfill their own
unique potential (self-actualization) are today more relevant than ever.
Abraham Maslow's book Motivation and Personality, published in 1954
(second edition 1970) introduced the Hierarchy of Needs, and Maslow
extended his ideas in other work, notably his later book Toward A
Psychology Of Being, a significant and relevant commentary, which has
been revised in recent times by Richard Lowry, who is in his own right a
leading academic in the field of motivational psychology.
Abraham Maslow was born in New York in 1908 and died in 1970,
although various publications appear in Maslow's name in later years.
Maslow's PhD in psychology in 1934 at the University of Wisconsin formed
the basis of his motivational research, initially studying rhesus monkeys.
Maslow later moved to New York's Brooklyn College.
68
The Maslow's Hierarchy of Needs five-stage model below (structure and

terminology - not the precise pyramid diagram itself) is clearly and directly
attributable to Maslow; later versions of the theory with added motivational
stages are not so clearly attributable to Maslow. These extended models
have instead been inferred by others from Maslow's work. Specifically
Maslow refers to the needs Cognitive, Aesthetic and Transcendence
(subsequently shown as distinct needs levels in some interpretations of
his theory) as additional aspects of motivation, but not as distinct levels in
the Hierarchy of Needs.
Where Maslow's Hierarchy of Needs is shown with more than five levels
these models have been extended through interpretation of Maslow's work
by other people. These augmented models and diagrams are shown as
the adapted seven and eight-stage Hierarchy of Needs pyramid diagrams.
Maslow's hierarchy of needs
Each of us is motivated by needs. Our most basic needs are inborn,

having evolved over tens of thousands of years. Abraham Maslow's
Hierarchy of Needs helps to explain how these needs motivate us all.
Maslow's Hierarchy of Needs states that we must satisfy each need in

turn, starting with the first, which deals with the most obvious needs for
survival itself.
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Only when the lower order needs of physical and emotional well-being are
satisfied are we concerned with the higher order needs of influence and
personal development.
Conversely, if the things that satisfy our lower order needs are swept
away, we are no longer concerned about the maintenance of our higher
order needs.
Maslow's original Hierarchy of Needs model was developed between

1943-1954, and first widely published in Motivation and Personality in
1954. At this time the Hierarchy of Needs model comprised five needs.
This original version remains for most people the definitive Hierarchy of
Needs.
1. Biological and Physiological needs - air, food, drink, shelter, warmth,

sex, sleep, etc.
2. Safety needs - protection from elements, security, order, law, limits,

stability, etc.
3. Belongingness and Love needs - work group, family, affection,

relationships, etc.
4. Esteem needs - self-esteem, achievement, mastery, independence,

status, dominance, prestige, managerial responsibility, etc.
5. Self-Actualization needs - realising personal potential, self-fulfillment,

seeking personal growth and peak experiences.
Maslow's hierarchy of needs in advertising
To help with training of Maslow's theory look for Maslow's Hierarchy of

Needs motivators in advertising. This is a great basis for Maslow and
motivation training exercises:
1. Biological and Physiological needs - wife/child-abuse help-lines,

social security benefits, Samaritans, roadside recovery.
2. Safety needs - home security products (alarms, etc), house an

contents insurance, life assurance, schools.
70
3.Belongingness and Love needs - dating and match-making services,

chat-lines, clubs and membership societies, McDonalds, 'family' themes
like the old style Oxo stock cube ads.
4. Esteem needs - cosmetics, fast cars, home improvements, furniture,

fashion clothes, drinks, lifestyle products and services.
5. Self-Actualization needs - Open University, and that's about it; little

else in mainstream media because only 2% of population are self-
actualizers, so they don't constitute a very big part of the mainstream
market.
According to Maslow’s Hierarchy of Needs, we all have five major

types of needs or stages of life that are listed below:
Maslow's Hierarchy of Needs
1. Stage one - Physiological needs are the basic parts of life such as
food, water, shelter, air, and sleep.
2. Stage Two - Safety needs are feeling safe and secure inside home,
feeling financially secure, and having safe relationships with friends and
family members.
3. Stage Three - Love and belonging needs are the ways someone is
accepted into the groups, he wants to be in, and the relationships he has
with his friends and family.
4. Stage Four - Esteem needs are self esteem, giving and receiving
respect, wanting power and control, as well as the need to feel valuable.
5. Stage Five - Self-Actualization - In this stage, one feels that they have
become everything that they possibly can. If one reaches this stage he will
have extreme amounts of peace, knowledge, and self fulfillment.
Maslow said that once someone has met the needs of stage 1 he can go
on to stage 2 then to stage 3, and so on. Maslow’s studies also showed us
that people in the lower levels will do violent things (steal, lie, cheat) in
order to fulfill these needs and move on to the next level.
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Maslow’s Hierarchy of Needs into advertising techniques
In order to sell a product or service, the advertiser must make consumers

want its product. Research has shown that people usually buy products
that they want before they buy products that they actually need. Here’s a
look at Maslow’s Hierarchy of Needs from an advertisers point of view.
Stage One - Physiological needs
People that are in Stage One probably do not have a lot of money. Food,
shelter and transportation should be their main priorities. So they will buy
cheaper things even if the quality is not very good because they can’t
afford better quality items. These people are attracted to anything that will
save them money.
A good example of people in Stage One is the popular reality series,

“Survivor.” In this television show, 16 people are put on a remote island
and must provide their own shelter, food and water. If someone has
watched this television show, he will see that the people look for food and
water as soon as they get to this desert island. Shelter is usually the next
thing the “survivors” search for. Other things (luxuries) seem minor to
these people because they know they need food and water in order to
survive.
Stage Two - Safety needs
Consumers in Stage Two need to feel that they will be safe in the present
times and in the future. They will purchase items to help them feel secure
like retirement funds, self-defense classes, and self-defense videos and
books. They will also buy things like nanny cameras, guns, and alarm
systems to help protect their families and possessions.
Going back to the “Survivor” example, after everyone receives food, water,
and shelter they can start to focus on other things, like winning the game.
In order to win the game, cast members must build secure relationships
with the other team members so they will not be voted off the island. (At
the end of every episode cast members vote to send one person home,
which means that particular person has lost the game and the $1 Million
prize.)
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Stage Three - Love and belonging needs
Acceptance is also a big part of this phase. Everyone likes to fit in with
other people, and nobody wants to be labeled as strange, unusual or
weird. People in this stage of life will follow the current trends so that
they’ll be accepted by their peers.
Stage three is also the stage where people desire to be with other people.
This can mean friends, family, significant others, or all of the above. Most
people do not like to be alone all of the time and are attracted to items that
will make them more pleasant to other people, specifically the opposite
sex.
People in stage three will usually purchase the following items for the
following reasons:
 magazines and anything else that will keep them updated with the
latest trends
 name brand items, and trendy clothes to help them fit in and be
accepted by their peers
 perfumes, colognes, make-up, satin sheets, and sexy clothes to

attract the opposite sex and gain love
 self improvement books to avoid criticism and be accepted
By this time the “Survivor” members are learning about each other and
forming friendships. Group acceptance has become very important in this
game. Usually the first few people to get voted off the island (and lose the
game) have done something that the group did not agree with. The cast
members have realized that they must try to fit in with the other people on
the island so they will not lose the game.
Stage Four - Esteem needs
Once we reach stage four, we are ready to take better care of ourselves.
We do things to for ourselves because we want to do them, not because
Vogue Magazine said that it’s the “in thing.”
Individuality is important to these people because they are happy with

themselves, have good self esteem and do not want to be like everyone
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else. These people will dress nice to attract praise because it makes them
feel better about themselves.
Consumers in this group want others to respect them, look up to them,

and value them.
People in stage four will purchase some of the following items for the
following reasons:
 Work-Out Equipment and healthy foods to become healthier
 Books to help them become their own boss because they want to
have power and control
 Online financial investments to have complete control over their

financial portfolios
 Anti-Aging cosmetics so they can look younger and have more

control on the aging (or not aging as quickly) process
 Expensive clothes, cars, etc. so they will have the power to feel
superior to others
While using our “Survivor” example, we will see that towards the end of
the game, leadership roles become very important. By this time, there is
usually one cast member that has gained the respect of most of the
remaining cast members. This person usually persuades the others to
vote the way he or she wants them to. This powerful leader finds ways to
control the entire group, and usually wins the game.
Stage Five - Self-Actualization
This is the final stage, and sadly many people will never reach this part of
life. However, the people that do reach stage five are happy with
themselves, and the lives they have lived. They purchase things that give
them enjoyment and things that will give enjoyment to others.
People in stage five will purchase some of the following items for the
following reasons:
 Art, flowers, and other beautiful things to nourish their souls

(Perhaps this is why we see so many elderly people working in their
flower beds so often.)
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 Cruises and other trips so they can enjoy themselves
 Charity items and spontaneous gifts for others because a self-

actualized person feels joy when other people are happy.
Our “Survivor” example ends with the final episode. The final votes are in,
and the winner is announced. This person wins $1 million and usually a
brand new vehicle.
2.5 Advertising Theory: 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. Consumers must
become aware of the brand. This isn’t as straightforward as it seems.
Capturing someone’s attention doesn’t mean they will notice the brand
name. Thus, the brand name needs to be made focal to get consumers to
become aware. Magazines are full of ads that will capture your attention,
but you’ll have trouble easily seeing the brand name.
Knowledge
The target audience might have product awareness but not know much
more; hence this stage involves creating brand knowledge. This is where
comprehension of the brand name and what it stands for become
important. What are the brand’s specific appeals, its benefits? In what way
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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 unfavourably towards the product to communicator has to
find out why. If the unfavorable view is based on real problems, a
communication campaigns alone cannot do the job. 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. The
communicator can check the campaigns success by measuring audience
preference before and after the campaign.
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. This is where
consumers make a move to actually search out information or purchase.
Thus advertising is thought to work and follow a certain sequence

whereby the prospect is moved through a series of stages in succession
from unawareness to the purchase of the product.
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Advertising cannot induce immediate behavioural response, rather a

series of mental effects must occur with the fulfilment at each stage before
progress to the next stage is possible.
__________________________________________________________
1. ____________- In this stage, one feels that they have become

everything that they possibly can.
2. _____________are the basic parts of life such as food, water, shelter,

air, and sleep.
________________________________________________________
2.6 Assignments
1. Prepare the details of need to satisfied while deciding product

development.
a. AIDA
b. Self esteem need
c. Maslow theory
2.7 Summing Up
This lesson dealt with various advertising modals for effective message
delivery. The extended models have instead been inferred by others from
Maslow's work. Specifically Maslow refers to the needs Cognitive,
Aesthetic and Transcendence (subsequently shown as distinct needs
levels in some interpretations of his theory) as additional aspects of
motivation, but not as distinct levels in the Hierarchy of Needs.
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1. Self-Actualization
2. Physiological
1. What are the models of advertising communication? Explain the
importance of models in analyzing the process advertising communication.
2. What is AIDA model? Explain steps of this model with suitable
examples.
3. What is DAGMAR model of advertising? Explain steps of this model
with suitable examples.
4. Enumerate the advantages and disadvantages of DAGMAR model.
5. What is Maslow’s Hierarchy of needs model? Does advertiser follow
each steps of Maslow’s Hierarchy of needs to design an advertising
message? Explain.
6. Write short notes:
(a) AIDA
(b) DAGMAR
(c) Maslow’s Hierarchy of needs model
(d) Advertising Communication
(e) Model of Advertising communication
2.10 References
2. Pitch
3. Brand Reporter
2.12 Keywords
 ATL: above the line is any advertising technique which focuses on
 mass media like TV, cinema, radio, print etc.
 Ad space- space on a web page that is reserved for a
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BJMC204 Unit 2 Lesson 3
____________________________________________________________________
Lesson 3 Advertising as a social process- consumer
welfare, standard of living and cultural values
____________________________________________________________________
STRUCTURE
3.0 Objectives
3.1 Introduction
3.2 Advertising as a Social Process
3.3 Benefits of Advertising
3.4 Harmfulness of Advertising
3.5 Assignments
3.6 Summing Up
3.9 References
3.11 Keywords
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_____________________________________________________________________
Lesson 3 Advertising as a social process- consumer welfare, standard of
living and cultural values
_____________________________________________________________________
In the last lesson we had discussed Advertisement Models. In present

lesson, we shall study about the Advertising as a social process.
3.0 Objectives

 Describe advertising as a social process
 Describe benefits of Advertising
3.1 Introduction
Mass advertising which had its national and international goals became
central link in mass society. Advertising sought to maximize its market
which included literally everybody.
3.2 Advertising as a Social Process
In today's society, advertising has a profound impact on how people

understand life, the world and themselves, especially in regard to their
values and their ways of choosing and behaving.
The field of advertising is extremely broad and diverse. In general terms,

of course, an advertisement is simply a public notice meant to convey
information and invite patronage or some other response. As that
suggests, advertising has two basic purposes: to inform and to persuade,
and — while these purposes are distinguishable — both very often are
simultaneously present.
Advertising is not the same as marketing (the complex of commercial

functions involved in transferring goods from producers and consumers) or
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public relations (the systematic effort to create a favorable public

impression or ?image' of some person, group, or entity). In many cases,
though, it is a technique or instrument employed by one or both of these.
Advertising can be very simple — a local, even ?neighborhood,'

phenomenon — or it can be very complex, involving sophisticated
research and multimedia campaigns that span the globe. It differs
according to its intended audience, so that, for example, advertising aimed
at children raises some technical and moral issues significantly different
from those raised by advertising aimed at competent adults.
Not only are many different media and techniques employed in

advertising; advertising itself is of several different kinds: commercial
advertising for products and services; public service advertising on behalf
of various institutions, programs, and causes; and — a phenomenon of
growing importance today — political advertising in the interests of parties
and candidates. Making allowance for the differences among the different
kinds and methods of advertising, we intend what follows to be applicable
to them all.
We disagree with the assertion that advertising simply mirrors the attitudes
and values of the surrounding culture. No doubt advertising, like the media
of social communications in general, does act as a mirror. But, also like
media in general, it is a mirror that helps shape the reality it reflects, and
sometimes it presents a distorted image of reality.
Advertisers are selective about the values and attitudes to be fostered and
encouraged, promoting some while ignoring others. This selectivity gives
the lie to the notion that advertising does no more than reflect the
surrounding culture. For example, the absence from advertising of certain
racial and ethnic groups in some multi-racial or multi-ethnic societies can
help to create problems of image and identity, especially among those
neglected, and the almost inevitable impression in commercial advertising
that an abundance of possessions leads to happiness and fulfillment can
be both misleading and frustrating.
Advertising also has an indirect but powerful impact on society through its
influence on media. Many publications and broadcasting operations
depend on advertising revenue for survival. This often is true of religious
media as well as commercial media.
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For their part, advertisers naturally seek to reach audiences; and the
media, striving to deliver audiences to advertisers, must shape their
content so to attract audiences of the size and demographic composition
sought. This economic dependency of media and the power it confers
upon advertisers carries with it serious responsibilities for both.
3.3 Benefits of Advertising
Enormous human and material resources are devoted to advertising.

Advertising is everywhere in today's world, so that, as Pope Paul VI
remarked, "No one now can escape the influence of advertising." Even
people who are not themselves exposed to particular forms of advertising
confront a society, a culture — other people — affected for good or ill by
advertising messages and techniques of every sort.
Some critics view this state of affairs in unrelievedly negative terms. They
condemn advertising as a waste of time, talent and money — an
essentially parasitic activity. In this view, not only does advertising have no
value of its own, but its influence is entirely harmful and corrupting for
individuals and society.
There is truth to the criticisms, and we shall make criticisms of our own.
But advertising also has significant potential for good, and sometimes it is
realized. Here are some of the ways that happens.
a) Economic Benefits of Advertising
Advertising can play an important role in the process by which an

economic system guided by moral norms and responsive to the common
good contributes to human development. It is a necessary part of the
functioning of modern market economies, which today either exist or are
emerging in many parts of the world and which — provided they conform
to moral standards based upon integral human development and the
common good — currently seem to be "the most efficient instrument for
utilizing resources and effectively responding to needs" of a socio-
economic kind.7
In such a system, advertising can be a useful tool for sustaining honest

and ethically responsible competition that contributes to economic growth
in the service of authentic human development.
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Advertising does this, among other ways, by informing people about the
availability of rationally desirable new products and services and
improvements in existing ones, helping them to make informed, prudent
consumer decisions, contributing to efficiency and the lowering of prices,
and stimulating economic progress through the expansion of business and
trade. All of this can contribute to the creation of new jobs, higher incomes
and a more decent and humane way of life for all.
b) Benefits of Political Advertising
Political advertising can make a contribution to democracy analogous to

its contribution to economic well being in a market system guided by moral
norms. As free and responsible media in a democratic system help to
counteract tendencies toward the monopolization of power on the part of
oligarchies and special interests, so political advertising can make its
contribution by informing people about the ideas and policy proposals of
parties and candidates, including new candidates not previously known to
the public.
c) Cultural Benefits of Advertising
Because of the impact advertising has on media that depend on it for

revenue, advertisers have an opportunity to exert a positive influence on
decisions about media content. This they do by supporting material of
excellent intellectual, aesthetic and moral quality presented with the public
interest in view, and particularly by encouraging and making possible
media presentations which are oriented to minorities whose needs might
otherwise go unserved.
Moreover, advertising can itself contribute to the betterment of society by

uplifting and inspiring people and motivating them to act in ways that
benefit themselves and others. Advertising can brighten lives simply by
being witty, tasteful and entertaining. Some advertisements are instances
of popular art, with a vivacity and elan all their own.
d) Moral and Religious Benefits of Advertising
In many cases, too, benevolent social institutions, including those of a

religious nature, use advertising to communicate their messages —
messages of faith, of patriotism, of tolerance, compassion and neighborly
service, of charity toward the needy, messages concerning health and
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education, constructive and helpful messages that educate and motivate

people in a variety of beneficial ways.
3.4 Harmfulness of Advertising
There is nothing intrinsically good or intrinsically evil about advertising. It is

a tool, an instrument: it can be used well, and it can be used badly. If it
can have, and sometimes does have, beneficial results such as those just
described, it also can, and often does, have a negative, harmful impact on
individuals and society.
a) Economic harms of Advertising
Advertising can betray its role as a source of information by

misrepresentation and by withholding relevant facts. Sometimes, too, the
information function of media can be subverted by advertisers' pressure
upon publications or programs not to treat of questions that might prove
embarrassing or inconvenient.
More often, though, advertising is used not simply to inform but to

persuade and motivate — to convince people to act in certain ways: buy
certain products or services, patronize certain institutions, and the like.
This is where particular abuses can occur.
The practice of "brand"-related advertising can raise serious problems.

Often there are only negligible differences among similar products of
different brands, and advertising may attempt to move people to act on the
basis of irrational motives ("brand loyalty," status, fashion, "sex appeal,"
etc.) instead of presenting differences in product quality and price as
bases for rational choice.
This is a serious abuse, an affront to human dignity and the common good
when it occurs in affluent societies. But the abuse is still more grave when
consumerist attitudes and values are transmitted by communications
media and advertising to developing countries, where they exacerbate
socio-economic problems and harm the poor. "It is true that a judicious
use of advertising can stimulate developing countries to improve their
standard of living. But serious harm can be done them if advertising and
commercial pressure become so irresponsible that communities seeking
to rise from poverty to a reasonable standard of living are persuaded to
seek this progress by satisfying wants that have been artificially created.
84
The result of this is that they waste their resources and neglect their real
needs, and genuine development falls behind."
Similarly, the task of countries attempting to develop types of market

economies that serve human needs and interests after decades under
centralized, state-controlled systems is made more difficult by advertising
that promotes consumerist attitudes and values offensive to human dignity
and the common good. The problem is particularly acute when, as often
happens, the dignity and welfare of society's poorer and weaker members
are at stake.
b) Harms of Political Advertising
Political advertising can support and assist the working of the democratic
process, but it also can obstruct it. This happens when, for example, the
costs of advertising limit political competition to wealthy candidates or
groups, or require that office-seekers compromise their integrity and
independence by over-dependence on special interests for funds.
Such obstruction of the democratic process also happens when, instead of

being a vehicle for honest expositions of candidates' views and records,
political advertising seeks to distort the views and records of opponents
and unjustly attacks their reputations. It happens when advertising
appeals more to people's emotions and base instincts — to selfishness,
bias and hostility toward others, to racial and ethnic prejudice and the like
— rather than to a reasoned sense of justice and the good of all.
c) Cultural Harms of Advertising
Advertising also can have a corrupting influence upon culture and cultural
values. We have spoken of the economic harm that can be done to
developing nations by advertising that fosters consumerism and
destructive patterns of consumption. Consider also the cultural injury done
to these nations and their peoples by advertising whose content and
methods, reflecting those prevalent in the first world, are at war with sound
traditional values in indigenous cultures. Today this kind of "domination
and manipulation" via media rightly is "a concern of developing nations in
relation to developed ones," as well as a "concern of minorities within
particular nations."18
The indirect but powerful influence exerted by advertising upon the media
of social communications that depend on revenues from this source points
85
to another sort of cultural concern. In the competition to attract ever larger

audiences and deliver them to advertisers, communicators can find
themselves tempted — in fact pressured, subtly or not so subtly — to set
aside high artistic and moral standards and lapse into superficiality,
tawdriness and moral squalor.
Communicators also can find themselves tempted to ignore the

educational and social needs of certain segments of the audience — the
very young, the very old, the poor — who do not match the demographic
patterns (age, education, income, habits of buying and consuming, etc.) of
the kinds of audiences advertisers want to reach. In this way the tone and
indeed the level of moral responsibility of the communications media in
general are lowered.
All too often, advertising contributes to the invidious stereotyping of

particular groups that places them at a disadvantage in relation to others.
This often is true of the way advertising treats women; and the exploitation
of women, both in and by advertising, is a frequent, deplorable abuse.
"How often are they treated not as persons with an inviolable dignity but
as objects whose purpose is to satisfy others' appetite for pleasure or for
power? How often is the role of woman as wife and mother undervalued or
even ridiculed? How often is the role of women in business or professional
life depicted as a masculine caricature, a denial of the specific gifts of
feminine insight, compassion, and understanding, which so greatly
contribute to the ?civilization of love'?"
d) Moral and Religious Harms of Advertising
Advertising can be tasteful and in conformity with high moral standards,

and occasionally even morally uplifting, but it also can be vulgar and
morally degrading. Frequently it deliberately appeals to such motives as
envy, status seeking and lust. Today, too, some advertisers consciously
seek to shock and titillate by exploiting content of a morbid, perverse,
pornographic nature.
What this Pontifical Council said several years ago about pornography
and violence in the media is no less true of certain forms of advertising:
"As reflections of the dark side of human nature marred by sin,

pornography and the exaltation of violence are age-old realities of the
human condition. In the past quarter century, however, they have taken on
new dimensions and have become serious social problems.
86
At a time of widespread and unfortunate confusion about moral norms, the

communications media have made pornography and violence accessible
to a vastly expanded audience, including young people and even children,
and a problem which at one time was confined mainly to wealthy countries
has now begun, via the communications media, to corrupt moral values in
developing nations."20
We note, too, certain special problems relating to advertising that treats of

religion or pertains to specific issues with a moral dimension.
In cases of the first sort, commercial advertisers sometimes include

religious themes or use religious images or personages to sell products. It
is possible to do this in tasteful, acceptable ways, but the practice is
obnoxious and offensive when it involves exploiting religion or treating it
flippantly.
In cases of the second sort, advertising sometimes is used to promote

products and inculcate attitudes and forms of behavior contrary to moral
norms. That is the case, for instance, with the advertising of
contraceptives, abortifacients and products harmful to health, and with
government-sponsored advertising campaigns for artificial birth control,
so-called "safe sex", and similar practices.
In this context, the media of social communications have two options, and
only two. Either they help human persons to grow in their understanding
and practice of what is true and good, or they are destructive forces in
conflict with human well being. That is entirely true of advertising.
Against this background, then, we point to this fundamental principle for

people engaged in advertising: advertisers — that is, those who
commission, prepare or disseminate advertising — are morally
responsible for what they seek to move people to do; and this is a
responsibility also shared by publishers, broadcasting executives, and
others in the communications world, as well as by those who give
commercial or political endorsements, to the extent that they are involved
in the advertising process.
If an instance of advertising seeks to move people to choose and act

rationally in morally good ways that are of true benefit to themselves and
others, persons involved in it do what is morally good; if it seeks to move
people to do evil deeds that are self-destructive and destructive of
authentic community, they do evil.
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This applies also to the means and the techniques of advertising: it is

morally wrong to use manipulative, exploitative, corrupt and corrupting
methods of persuasion and motivation. In this regard, we note special
problems associated with so-called indirect advertising that attempts to
move people to act in certain ways — for example, purchase particular
products — without their being fully aware that they are being swayed.
The techniques involved here include showing certain products or forms of

behavior in superficially glamorous settings associated with superficially
glamorous people; in extreme cases, it may even involve the use of
subliminal messages.
Within this very general framework, we can identify several moral

principles that are particularly relevant to advertising. We shall speak
briefly of three: truthfulness, the dignity of the human person, and social
responsibility.
a) Truthfulness in Advertising
Even today, some advertising is simply and deliberately untrue. Generally

speaking, though, the problem of truth in advertising is somewhat more
subtle: it is not that advertising says what is overtly false, but that it can
distort the truth by implying things that are not so or withholding relevant
facts.
As Pope John Paul II points out, on both the individual and social levels,
truth and freedom are inseparable; without truth as the basis, starting point
and criterion of discernment, judgment, choice and action, there can be no
authentic exercise of freedom.
To be sure, advertising, like other forms of expression, has its own

conventions and forms of stylization, and these must be taken into
account when discussing truthfulness. People take for granted some
rhetorical and symbolic exaggeration in advertising; within the limits of
recognized and accepted practice, this can be allowable.
b) The Dignity of the Human Person
There is an "imperative requirement that advertising "respect the human

person, his right duty to make a responsible choice, his interior freedom;
all these goods would be violated if man's lower inclinations were to be
exploited, or his capacity to reflect and decide compromised."
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These abuses are not merely hypothetical possibilities but realities in

much advertising today. Advertising can violate the dignity of the human
person both through its content — what is advertised, the manner in which
it is advertised — and through the impact it seeks to make upon its
audience. We have spoken already of such things as appeals to lust,
vanity, envy and greed, and of techniques that manipulate and exploit
human weakness. In such circumstances, advertisements readily become
"vehicles of a deformed outlook on life, on the family, on religion and on
morality — an outlook that does not respect the true dignity and destiny of
the human person."
This problem is especially acute where particularly vulnerable groups or

classes of persons are concerned: children and young people, the elderly,
the poor, the culturally disadvantaged.
Much advertising directed at children apparently tries to exploit their

credulity and suggestibility, in the hope that they will put pressure on their
parents to buy products of no real benefit to them. Advertising like this
offends against the dignity and rights of both children and parents; it
intrudes upon the parent-child relationship and seeks to manipulate it to its
own base ends. Also, some of the comparatively little advertising directed
specifically to the elderly or culturally disadvantaged seems designed to
play upon their fears so as to persuade them to allocate some of their
limited resources to goods or services of dubious value.
c) Advertising and Social Responsibility
Social responsibility is such a broad concept that we can note here only a
few of the many issues and concerns relevant under this heading to the
question of advertising.
The ecological issue is one. Advertising that fosters a lavish life style
which wastes resources and despoils the environment offends against
important ecological concerns. "In his desire to have and to enjoy rather
than to be and grow, man consumes the resources of the earth and his
own life in an excessive and disordered way. Man thinks that he can make
arbitrary use of the earth, subjecting it without restraint to his will, as
though it did not have its own requisites and a prior God-given purpose,
which man can indeed develop but must not betray."
As this suggests, something more fundamental is at issue here: authentic

and integral human development. Advertising that reduces human
89
progress to acquiring material goods and cultivating a lavish life style

expresses a false, destructive vision of the human person harmful to
individuals and society alike.
When people fail to practice "a rigorous respect for the moral, cultural and
spiritual requirements, based on the dignity of the person and on the
proper identity of each community, beginning with the family and religious
societies," then even material abundance and the conveniences that
technology makes available "will prove unsatisfying and in the end
contemptible."
Advertisers, like people engaged in other forms of social communication,

have a serious duty to express and foster an authentic vision of human
development in its material, cultural and spiritual dimensions.
The indispensable guarantors of ethically correct behavior by the

advertising industry are the well formed and responsible consciences of
advertising professionals themselves: consciences sensitive to their duty
not merely to serve the interests of those who commission and finance
their work but also to respect and uphold the rights and interests of their
audiences and to serve the common good.
Many women and men professionally engaged in advertising do have

sensitive consciences, high ethical standards and a strong sense of
responsibility. But even for them external pressures — from the clients
who commission their work as well as from the competitive internal
dynamics of their profession — can create powerful inducements to
unethical behavior. That underlines the need for external structures and
systems to support and encourage responsible practice in advertising and
to discourage the irresponsible.
Voluntary ethical codes are one such source of support. These already
exist in a number of places. Welcome as they are, though, they are only
as effective as the willingness of advertisers to comply strictly with them.
"It is up to the directors and managers of the media which carry
advertising to make known to the public, to subscribe to and to apply the
codes of professional ethics which already have been opportunely
established so as to have the cooperation of the public in making these
codes still better and in enforcing their observance.
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We emphasize the importance of public involvement. Representatives of

the public should participate in the formulation, application and periodic
updating of ethical codes.
Public authorities also have a role to play. On the one hand, government
should not seek to control and dictate policy to the advertising industry,
any more than to other sectors of the communications media.
On the other hand, the regulation of advertising content and practice,

already existing in many places, can and should extend beyond banning
false advertising, narrowly defined. "By promulgating laws and overseeing
their application, public authorities should ensure that public morality and
social progress are not gravely endangered' through misuse of the media."
For example, government regulations should address such questions as

the quantity of advertising, especially in broadcast media, as well as the
content of advertising directed at groups particularly vulnerable to
exploitation, such as children and old people. Political advertising also
seems an appropriate area for regulation: how much may be spent, how
and from whom may money for advertising be raised, etc.
The media of news and information should make it a point to keep the
public informed about the world of advertising. Considering advertising's
social impact, it is appropriate that media regularly review and critique the
performance of advertisers, just as they do other groups whose activities
have a significant influence on society.
In the final analysis, however, where freedom of speech and

communication exists, it is largely up to advertisers themselves to ensure
ethically responsible practices in their profession. Besides avoiding
abuses, advertisers should also undertake to repair the harm sometimes
done by advertising, insofar as that is possible: for example, by publishing
corrective notices, compensating injured parties, increasing the quantity of
public service advertising, and the like. This question of ?reparations' is a
matter of legitimate involvement not only by industry self-regulatory bodies
and public interest groups, but also by public authorities.
We do not wish, and certainly we do not expect, to see advertising

eliminated from the contemporary world. Advertising is an important
element in today's society, especially in the functioning of a market
economy, which is becoming more and more widespread.
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Moreover, for the reasons and in the ways sketched here, we believe
advertising can, and often does, play a constructive role in economic
growth, in the exchange of information and ideas, and in the fostering of
solidarity among individuals and groups. Yet it also can do, and often
does, grave harm to individuals and to the common good.
In light of these reflections, therefore, we call upon advertising

professionals and upon all those involved in the process of commissioning
and disseminating advertising to eliminate its socially harmful aspects and
observe high ethical standards in regard to truthfulness, human dignity
and social responsibility. In this way, they will make a special and
significant contribution to human progress and to the common good.
___________________________________________________________
1. There is an "_________________"respect the human person, his right

duty to make a responsible choice, his interior freedom
2. ________________contributes to the invidious stereotyping of

particular groups that places them at a disadvantage in relation to
others.
________________________________________________________
3.5 Assignments
1. Collect the Advertisement promoting social responsibility of any

institution.
a. Truthfulness in advertising
b. Social Responsibility
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3.6 Summing Up
Many women and men professionally engaged in advertising do have
sensitive consciences, high ethical standards and a strong sense of
responsibility. But even for them external pressures — from the clients
who commission their work as well as from the competitive internal
dynamics of their profession — can create powerful inducements to
unethical behavior.

1. imperative requirement that advertising
2. Advertising

1. Explain Advertising as a social process. How does advertising protect
our cultural values? Explain with examples.
2. Explain the role of advertising in consumer welfare.
3. Explain the role of advertising in improving standard of living of the

people.
3.9 References

2. Pitch
3. Brand Reporter
3.11 Keywords
Political advertising can make a contribution to democracy analogous
to its contribution to economic well being in a market system guided by
moral norms.
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Unit III [Classification & Aspects]
Lesson 1 Classification of Advertising on the basis of
Lesson2 Advertising Creativity- Definition & importance.
Lesson 3 Elements of Print advertising - Copy, slogan, identification mark,

clashing illustrations.
Lesson 4 Characteristics, Advantages & Disadvantages of various

advertising medium
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___________________________________________________________________
LESSON 1 CLASSIFICATION & ASPECTS
___________________________________________________________________
STRUCTURE
1.0 Objectives of the lesson
1.1 Introduction
1.2 Classification of Advertising
1.3 Types of Advertising
1.4 Summing Up
1.7 References
1.9 Keywords
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______________________________________________________________________
Lesson 1 Classification & Aspects
______________________________________________________________________
In unit 3 we shall discuss classification and various aspect of advertising.

The ad message need to be placed in right medium with creativity to
influence target audience. In this lesson we shall study classification on
the basis of 1. Area Covered 2. Audience 3. Media, 4. Functions, 5.
Advertising Stages .
______________________________________________________________________
1.0 Objectives
After completion of this lesson the student will be able to :
 Understand Broad classification of advertising

 Describe Various categories of advertising : social advertising,
political advertising, advocacy advertising, retail advertising
1.1 Introduction
Different authors have classified advertising in different ways based on

appeal, location, audiences etc.
Philip Kotler has classified advertising on the following basis:
 Geographical Area: National, Regional or Local.

 Content : Product Advertising, Brand Advertising,
 Institutional Advertising.
 Type of Appeal: Factual and Emotional.
 Audience: Consumer, Industrial, Trade.
 Sponsor: Manufacturer, Middlemen, Manufacturer - middlemen,
private.
 Intended Effort: Direct Action and Delayed Action.
 Level of Demand Influence: Primary Product Level, Selective Brand
Level.
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1.2 Classification of Advertising
Management scientists have classified advertising on different such

criteria as follows :
I. Class Classification on The Basis of Area Coverage :
On this basis advertising may be classified into the following four

categories, viz., (1) local, (2) regional, (3) national, (4) international
advertising.
1. Local Advertising : It is also known as retail advertising. It is undertaken

by local retail stores, departmental stores, co-operative stores, selling
cloth, saris and other consumer goods and consumer durables. It is
directed at local customers. Media, used for local advertising, are shop
decorations, local newspapers, magazines, posters, pamphlets, hoarding,
new signs, local cinema houses, etc.
2. Regional Advertising : It has wider coverage, as compared to local
advertising. It covers a particular region, which may be one state, or more
than one state, the people of which may be having a common tongue, or,
using one common product. It is undertaken by manufacture, or, regional
distributor of a product. Media, used for regional advertising, include
regional newspapers, magazines, radio, regional T.V., outdoor media, etc.
It is considered to be an ideal form of advertising for launching and
marketing a new product in a specific region.
3. National Advertising: It is generally undertaken by manufactures of
branded goods, for which, advertising messages is communicated to
consumers all over the country. Almost all possible mass media, including
national newspapers, radio and television network, are employed for
national advertising. Product services, and ideas, which have demand all
over the country, are suitable for national advertising. In India, Indian
Airline Hindustan Lever Ltd., Vicco, Godrej, Bajaj and Kirloskar are a few
leading advertisers at national level. Likewise, detergents, soaps,
toothpastes, cosmetics, scooters, cars, and bicycles, are some of the
products, which are advertised all over the country.
4. International Advertising : This type of advertising is undertaken by
those companies, which operate in more than one country, known as
„multi-national‟ companies. Exporters, generally advertise their products
and services in foreign countries, where ready markets are available. Air
India and other airlines, and multinational companies advertise their
products and services all over the world. Coca-Cola and Pepsi are
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advertised globally, as the sales are almost all over the world.
International advertising is extremely expensive, involving the services of
professional advertising agencies in different countries.
II. Classification on The Basis of Audience
On this basis, advertising may be classified into the following four

categories, viz., (1) consumer advertising, (2) industrial advertising, (3)
trade advertising, and (4) professional advertising.
1. Consumer Advertising : This type of advertising is directed to the

ultimate consumers of the consumer products, i.e., the individuals, who
buy, or, use the consumer products, or services, say, for example, toilet
soap, toothpaste, toothbrush, tea, textiles, etc., for themselves and for
their families. All types of consumer products need continuous and
extensive advertising on T.V., radio, and press.
2. Industrial Advertising : This type of advertising is used by manufacturers
and distributors of industrial goods. Such as, machinery, plants,
equipments, spare parts and components, and are directed at industrial
users or customers. Such advertisements usually appear in trade journals,
trade dictionaries, business magazines and so on. The appeal made is
tactual and rational.
3. Trade Advertising : This kind of advertising is employed by manufactures
and/or distributors to influence and persuade wholesalers and dealers
(retailers) to stock and sell the goods of the advertiser by offering incentive
schemes to them, or, by inviting dealership for their particular products(s).
4. Professional Advertising : It is directed at professional like doctors,
professors, engineers and others, who are expected to recommend,
prescribe, or, specify the advertised products to ultimate consumers. This
is done through professional journals and representative of the
advertisers.
III. Classification on The Basis of Media
On the basis, advertising may be-classified into the following four

categories viz., (1) Print media advertising; (2) electronic, or, broadcast
media advertising; (3) outdoor media advertising.
1. Print Media Advertising : The print media consists of newspapers,

magazines, journals, handbills, etc. No newspaper or, journal, today, can
survive without advertising revenue. Print media advertising, even today,
is the most popular form; and revenue derived by mass media from
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advertising has, therefore, been progressively increasing year after year.

Print media appeals only to the sense of sight, i.e. eyes.
2. Electronic or Broadcast Media Advertising : Electronic, or, broadcast
media consists of (i) radio, (ii) television, (iii) motion pictures, (iv) video,
and (v) the internet. The radio is audio in nature, appealing only to the
sense of sound (ears). Radio advertising is more effective in rural areas,
as compared to urban regions. Television, as an advertising medium, is
more attractive and effective because it is an audio-visual medium
appealing to both the senses of sight sound (eyes and ears). Different
methods, such as, spot announcements, sponsored programmes, etc.,
are used for broadcasting advertising messages. However, broadcasting
media are very expensive form of advertising. Advertising is also
undertaken through movies, video, and the internet.
3. Outdoor Media: This include posters, neon signs, transit, point of
purchase (POP), etc. Outdoor advertising can be a good supporting
media to other forms of advertising. It is a good form of reminder
advertising, especially, the POP advertising.
4. Other Media: This includes direct mail, handbills, calendars,
diaries, cinema advertising, internet and so on. These miscellaneous
media can play an important supporting role to the major media such as
television, and newspapers.
IV. Classification on The Basis of Function:
1. Direct Action and Indirect Action Advertising: Direct action

advertising is undertaken to obtain immediate response or action on the
part of target audience. Examples include discount sales advertising, sale
along with free gift offers, and mail-order coupon sales, etc. The media
used is mostly newspapers, and television. Indirect action advertising is
undertaken to influence the audience in respect of advertiser’s brand. The
advertiser expects the target audience to prefer his brand as compared to
competitors whenever a buying decision arises in future.
2. Primary and Selective Advertising: Primary Advertising is
undertaken by trade association or by cooperative groups. It is undertaken
to create generic and for products and services. For example, the Coffee
Board may advertise to consume more coffee. Selective Advertising is
undertaken by marketers of branded products. The advertiser intends to
create selective demand for his brand. Examples include Pepsi Cola,
Coca Cola.
3. Product and Institutional Advertising: Product or Service
advertising is undertaken to promote the sale of products and services-
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branded or unbranded. Institutional advertising is undertaken to build

name and goodwill of the organisation. It is also, know as corporate
advertising or image advertising. It is mostly undertaken by large firms.
V. Classification on The Basis of Advertising Stages
On this basis, advertising may be classified into the following three

different categories, viz., (1) advertising at pioneering stage, (2)
advertising at competitive stage, and (3) advertising at retentive stage.
1. Advertising at Pioneering Stage : Advertising at „pioneering

stage‟ is undertaken to make the audience fully aware of the new brand of
product and to inform, influence, and persuade them to buy, or, use it by
highlighting its unique features.
2. Advertising at Competitive Stages: Once the brand survives the
introductory stage, it has, soon to face a stiff competition with other well
established brands in the market. At this stage, competitive advertising is
undertaken to promote sales effectively.
3. Advertising at Retentive Stage or Reminder Advertising: When
the product has captured a large share of the market, retentive
advertising‟ is undertaken to maintain, or retain the stable position in the
market as long as possible. Moreover, if the same product is passing
through the declining stage in the market, this type of advertising is used
to remind the buyers about the product hence, it is also known as
reminder advertising.
1.3 Types of Advertising
Advertising is also classified according to their functions and role. Some of

the important classifications of advertising are as follows :
I. Social Advertising: Social Advertising is undertaken by non commercial

organisations such as Trust, Societies, Associations etc. The main
objective of Social Advertising is to work for social cause. Advertisements
for collecting donations for war victims or for victims of natural calamities,
sales of tickets for a show etc. are examples of Social Advertising.
II. Political Advertising: Political advertising is undertaken by political
parties to motivate the general public in favour of the ideology of the party
in question. Political advertising are intensively made during election times
to gain favour of the voters. Such advertising promote plans and policies
of the concerned party. It also try to expose weaknesses of the opposition
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with a view to convince the voters to vote for their party candidates. Some
political advertisement are also made to assist the Government to
implement its schemes for rehabilitation and national reconstruction.
Mumbai Regional Congress Committee children affected by communal
riots in Mumbai under the scheme of National Foundation for Communal
Harmony. Advertisements issued by a political party is essentially a
political advertising.
III. Advocacy Advertising : We often come across advocacy advertised
relating to the use of family planning methods. Conservation of scarce
resources, maintaining green environment. An extreme example occurred
in the 1960s, when a private citizen bought a two-page advertisement in
the New York Times at a cost of $12,000 to offer his peace plan for ending
the war in Vietnam. In 1974, Mobil Oil Company began advocacy
advertising concerning the need for offshore oil drilling to alleviate the
energy crisis that existed at the time. NBC accepted the television
commercial, but ABC and CBS did not, because of the controversial
nature of the topic. As a result, Mobil Oil Company took out full-page
newspaper ads, which reproduced in print the visuals and text for the
commercial.This is designed to alert people to the fact that such ads are
not editorials or informational pieces, but are specifically advertisements.
Companies can place advocacy advertising on billboards, in print
magazines and newspapers, online, and on television. In fact, many
advertising firms consider candidates who have completed advertising
internships far more attractive than those who have not. If you are
planning to begin your career in advertising in the creative department of
an advertising firm, a bachelor's degree may not be as essential.
IV. Retail Advertising: Retail advertising is the advertising by retailers who
usually sell goods direct to the customers. Retail advertising has such
objectives as : (i) to sell the stock; (ii) to establish the identify of business;
(iii) to attract personal, telephone or mail order shoppers. Retail
advertising is done through window display, neon signs, posters, leaflets
etc. It is usually local in character. The various advertising approaches of
Akbarallys, Amarsons, Asiatic Departmental Stores are the examples of
retail advertising.
V. Financial Advertising : When an advertising message is directed to
attract for raising capital, it is called financial advertising. The banks,
insurance companies and commercial undertakings collect required funds
from the savings of the people by motivating them to post-pone present
expenditure to future-period. An investor considers two things before
investing his hard earned savings. (1) Safety of investment (2) Return on
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investment The safety of investment depends upon the reputation and

goodwill of the company and the properties possessed by it. The
institutional advertising helps in creating confidence in the minds of the
investors. The financial advertisement inform the investors about the past
performance in declaring dividends and the trend in declaring of dividend.
The dividend depends upon the profitability of the company. The company
with the help of charts, diagrams etc. communicate the rate of growth and
rate at which profit is increasing. The financial advertising aims at
establishing financial, solvency of the company in the minds of the
prospective investors. It is because of financial advertising the company
have succeeded in floating of mega issue of shares arc in cores. The
financial advertising aims at establishing financial solvency of the
company in the minds of the prospective investors. It is because of
financial exports.
VI. Corporate Image Advertising : To be truly labelled as corporate the ad

must deal with company’s policies, functions, facilities, objectives, ideas
and standards, build favourable opinion about the company’s
management, technology skill, enhance the financial structure or
investment qualities of the company or promote it as a good place to work.
VII. Public Relations Advertising : It is a part of institutional advertising. The

basic objective of public relations advertising is to establish co-cordial and
healthy relations with the customers, bankers, suppliers, Government.
Patrons and the general public.
Through public relations advertising company announces the changes in

its policies, its developmental activities its position and stand when the
employees are on strike. It helps the company to remove misconcepts
about the company created by interested groups.
During the periods of short supply of goods the public relations advertising
helps to hold the interest of the customers. The company assures about
the normalcy of supply and request its customers to bear with the
company.
Institutional advertising and public relations advertising are complimentary

to each other. Both are directed in building up corporate image.
There are several reasons as to why a corporate firm may resort to public
relations advertising. The reasons are:
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(a) To create a favourable image of the organisation.
(b) To secure and keep good suppliers.
(c) To build goodwill of the dealers.
(d) To arouse and serve customers in a better way.
(e) To arouse interest of the present and potential shareholders.
(f) To correct misconceptions about the firm during strikes.
(g) To win confidence of its employees.
(h) To render community service.
(i) To make people aware of social evils, health hazards, etc.
(j) To obtain public support for certain cause.
VIII. Institutional Advertising: The Institutional advertising is developing the

image of the company, clarifying the vision and mission and building the
public opinion about the company’s contribution to the community. The
example of institutional advertising can be promotion of eco & recycling
programs, introduction of new additive free food production technology,
switching from import to local production etc. The TATA Steel ads in the
1980s with the tag line – ‘Ispat bhi hum banate hain’ or` we also make
steel’, is a good example of institutional advertising.
IX. Primary Demand Advertising: The main objective of Primary demand

advertising is to create demand for a new product or product category.
This is necessary in the case of a newly developed products or the
products which are costly in nature. For example, cars, refrigerators,
washing machines, watches, etc. Such advertising is directed towards a
class of customers, it is also described as selective demand advertising. It
is heavily utilised during the introduction stage of product life cycle.
Primary demand is when a potential buyer, or prospect, is showing

interest in a product or service for the first time. Often times it is because
the prospect was never exposed to the “concept” of the product or service
or never really understood it. But now due to new circumstances she has
an apparent need all of a sudden.
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X. Selective Demand Advertising: Selective demand advertising is done to

meet the growing competition mainly in growth stage of the life cycle of the
product. Here, the goal of advertising is to push the demand of specific
product or service. Often, promotion becomes less informative and more
emotional during this phase.
XI. Product Advertising: Product Advertising refer to the advertising of

tangible product. It is for the marketing of the product advertising as a
powerful instrument has emerged. A product may be anything in which a
trader deals or trade. A product may be tangible of intangible. Products
like radio, soap, pen cloth etc. are tangible products and services of
professional people like doctors, lawyers, engineers etc. are intangible
products.
The fundamental of any advertising campaign is to establish the fact that

among the substitutes the product advertised is the best. Thus product is
the heart of any advertising programme. Advertising makes possible for
the smooth entry of the new product in to the market.
XII. Service Advertising : Service advertising is designed to operate in the

public interest. It is undertaken to seek public welfare and social
development. It is in the nature of non-commercial institutional advertising.
In this type of advertising, the objective is to put across a message
intended to change attitudes or behaviour and, as a result, benefit the
public at large. It is generally used by government and other organisations
to promote public welfare.
______________________________________________________________________
Self Check Question
1. The main objective of______________ advertising is to create demand

for a new product or product category.
2. _________________is undertaken by political parties to motivate the

general public in favour of the ideology of the party in question.
______________________________________________________________________
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1.4 Summing Up
Generally the advertising is classified on the following basics 1. Area

Covered, 2. Audience, 3. Media, 4. Functions, 5. Advertising Stages etc.
(a) Primary demand (b) Political advertising
1. Give broad classification of advertising according to Area Coverage,

Audience, Media and Functions
2. How would you classify different categories of advertising.
3. Write a brief note on (a) Social Advertising (b) Political Advertising (c)
Advocacy Advertising (d) Retail Advertising
1.7 References

2) Jethwaney, Jaishri, Advertising, Phoenix Publishing House Pvt. Delhi

2) Pitch
3) Brand Reporter
1.9 Keywords
1. Business-to-business advertising : Advertising directed to other

businesses, rather than to consumers.
2. Consumer advertising : Advertising directed at a person who will

actually use the product for their own benefit, rather than to a business
or dealer.
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___________________________________________________________________________
Lesson 2 Advertising Creativity- Definition & importance
_____________________________________________________________________
STRUCTURE
2.0 Objectives
2.1 Introduction
2.2 Advertising Creativity: meaning
2.3 Importance of creativity in Advertising
2.4 Assignments
2.5 Summing Up
2.8 References
2.10 Keywords
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_________________________________________________________________________
Lesson 2 Advertising Creativity- Definition & importance
In the last lesson we had discussed classification and aspects of

advertising.In present lesson, we shall study about the advertising
creativity.
2.0 Objectives

o Describe Methods of agency compensation
o Understand ATL and BTL techniques
2.1 Introduction
Creativity deals with Visualisation a language of vision which is also a

very powerful means of communication of one’s thoughts, emotions,
feelings, ideas etc.
2.2 Advertising Creativity: meaning
Creativity in advertising is an art. It is concerned with the perception,

attitude, values, personality, and motivation including buying motives. It
also include visualisation techniques, types of advertising copy and its
elements such as headline, slogan etc. All these elements must be
creative in attracting the attention of consumers.
a)Consumer Psychology
Consumer psychology deals with consumer behaviour. Consumer

psychology is the process whereby individuals decide whether, what,
when, where, how and from whom to purchase goods and services.
b)Buying Motives
Buying motives are the urges which compete consumers to buy. People
buy the product because they need them. Thus need motivates people to
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demand product. Hunger is a need which motivates man to demand food

and therefore, he purchases food items.
C) Selling Points
Selling points refer to important features of a product that influence the of

people to buy it. They indicate the advantages accruing to those who
decide to buy the product. The unique methods of production, and design,
varied colours, suitable, sizes, special merits, attractive packing, liberal
discounts, competitive prices and so on constitute the selling points of an
article.
d) Visualisation
Visualisation is the process of seeing through ones mind’s, eye about the
construction of it. It is forming initially a mental picture of the idea that
would appear in the Advertisement. Visualisation is a process of creating
ideas about overall construction and contents of the advertisement i.e. the
layout, the contents, the size of headlines, the colours etc. Visualisation
takes place before the copy is thought of and before preparing
illustrations. Visualisation helps in converting abstract ideas into concrete
forms or shape of layout of an advertisement.
Visualisation thus, deals with language - language of vision which is also a

very powerful means of communication of one’s thoughts, emotions,
feelings, ideas etc.
However, it differs from layout because it is an abstract form whereas

layout is a concrete physical arrangement of things in the advertisement.
Visualisation precedes layout and layout is the result of visualisation.
Process of Visualization
The process of visualisation is a team work of copy writers, artists,

producers etc. who work together to develop ad copies not only for press
media but even for Radio, TV. and other media. Because of the
importance of visualisation in introducing creativity in ad copies, the
process of visualisation has become a specialised profession of some
people who offer expertise services in visualisation.
The visualise may follow the following steps to conceptualise an idea for
advertisement :
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1. Study the product / service to be advertised i.e. its features,

merits, uses, etc.
2. Study advertising objectives - the objective may be to influence
the consumer or it may be to influence the dealers to stock the product or
the objective may be to counter competitive advertising.
3. Collect relevant information - about the product, competitors
products, prospects and other relevant information.
4. Conceptualise ideas by adopting various techniques such as
brain storming, juxtaposition and association, divergent thinking, etc.,
talking into account the relevant information.
5. Analyse the ideas from various angles-as to how the prospect
would view it and interpret it, how far it will be effective, what impact it will
make and so on.
6. Select two or three version or ideas which require further
probing. The visualiser than passes on the ideas to the copywriter and the
artist.
Techniques of Visualisation
The well-know techniques of visualisation are as follows :
1. Identifying or Pinning Down the Problem: The matter to be

advertised must be in co-relation with the problem. Thus, the problem
must be first clearly laid down so that the advertising copy can be
accordingly prepared.
2. Forming Pool of Observations Facts Collected and Information
Gathered: Before preparing an advertising copy and its construction, the
several types of information has to be collected. This collection should be
properly arranged in sequence, so that the entire amount of information
can be used when needed.
3. Generating Brain Waves : This involves thinking on the part of the
copy-writer. In this process, the information collected is thought over and a
tank of storage collection is formed in the mind.
4. Brain Storming : It means group thinking and generating
crosscurrents of ideas, thoughts and imagination. Group discussions are
arranged in which exchange of thoughts takes place and ideas of each
other are know.
5. Mediation : Then follows the analysis and synthesis of the ideas. In
this stage, the search for tranquillity and calmness of mind takes place,
where a quiet churning of ideas after waves and storms would lead to the
obtaining of vision.
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6. Rough Layout : A sketch of a rough work out is prepared of final

vision which is the preliminary stage of visualisation.
7. Giving Final Shape : Copy, art work, layout design and
illustrations are the products of final touches given to the vision that is the
idea is given the final form. All these techniques of visualisation are time-
tested.
2.3 Importance of creativity in Advertising
There are many reasons why creativity is important in advertising. With

good visual effects it will attract the target audience attention that creates
interest by establishing feelings of desire to bring about an action to
purchase.
 It is a pillar to build the marketing mix - personal selling, sales

promotion, direct marketing, public relations and sponsorship.
 It differentiates the 'me too' products by influencing attitudes and

feelings to position the brand in preference above a competitors brand.
 It provides knowledge thereby stimulates thinking
 It can persuade, be relevant and meaningful
 It facilitates purchase and trial
 It creates loyal customers
 It transforms boring ads to interesting ads
 Creative ads achieve objectives
The use of colour in your advert adds to production and placement cost,
and has been found to be well-worth the increased costs because of:
 Attention - holding power of the ad increases when colour is used
 People are conditioned to colour stimuli
 Products look better - especially food
 Creates moods
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 Creates an image of prestige
 Greater message recall
Selecting Colour connotations
 Red Passion, action, fire, heat, danger, anger
 Blue Cool, truth, purity, formality, sadness
 Green Calm, youth, nature, wet, ignorance, immaturity
 Black Mystery, mourning, death, elegance, heaviness
 Yellow Light, optimism, cheerfulness, dishonesty
 Orange Fire, heat, action, harvest, fall
 White Cleanliness, purity, virginity
 Silver Diffusive, gentle, touching, soft
 Brown Earth, dirty, dull, boring, worthy ,unexciting, uncompromising
Some tips on visuals
 Great illustration is vital - only 4 ads per magazine are read
 Put story appeal into the illustration
 Illustration should portray reward
 To attract woman - show woman and babies
 To attract men - show men
 Avoid historical illustrations
 Use photographs rather than drawings
 Do not deface illustrations
 Use spoken style captions
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 Don't use too many illustrations
 Do not crop important elements
Visual elements of design
The visualization of the basic theme is extremely important and vital to the
success of the advert.
 The product alone - is the simplest form of visual appeal. No

background or setting may prove to have a powerful impact
 The product with a setting - associates the quality of the product or

satisfying and pleasing to use
 The product in use - demonstration is widely used
 Dramatisation - attracts users through the illustration of need
 Explaining product users - show how to use the Stay Soft refills was
important to ensure that customer remain satisfied with the brand
 Featuring product details - good for showing improved benefits
 Comparison techniques - before and after pictures is powerful
 Dramatise the headline - assists in strengthening the headline through

the effect of visuals on the written word
Print Advertising Ideas
The headline
The headline is the main theme or appeal, it should be a powerful selling

message. It performs the task of attracting the attention and should tell the
whole story. It is preferable to include the brand name as 80% of readers
read no further than the headline. Visuals attract attention, but the
headline is the main component, so it must be powerful.
The Copy
The body copy reinforces the headline and delivers the selling message.
News copy must be straightforward while implied suggestions can draw
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conclusions from the facts. Try not to use humorous copy as it does not
always sell. Avoid answering competitive questions rather promote your
own positives. Slogans if used should be associated with a positive
outlook.
If you are doing a direct mail shot don't scrimp on copy, write as much as
you want, but create it so that it is user friendly when read and in logical
order.
The concept is evaluated and this is usually done by asking the following
for the printed ad:
 is the ad a stopper?
 is the product the hero?
 is the ad completely believable?
 is the ad likeable?
 is the theme one that will last
Radio commercial copy
 is it a stopper?
 could I hear what was said or sung?
 did you hear great music?
 is it simple, to the point and easy to grasp?
 did you create a favourable image?
TV commercial slogans
 If you can't show it don't say it
 it should sail without sound
 there should be forcible demonstration
 use one or two BIG ideas - integrity and magic shape
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 state the promise at least twice
 show the package
 repeat brand name as often as possible
 make the product the hero
 start selling in the first frame
 the problem - solution - proof method works best
 be friendly, human and believable
 use close up shots for impact
 speech is more persuasive than song
 make it welcome in the viewers home
________________________________________________________
1. Promotional activities carried out through __________, such as

television, radio and newspaper,
2. ______________________________ is a process of creating ideas

about overall construction and contents of the advertisement i.e. the
layout, the contents, the size of headlines, the colours etc.
___________________________________________________________
2.4 Assignments
1. Collect the samples of illustrations/Demonstarations in advertising
a. Slogan
b.Jingle
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2.5 Summing Up
A layout is a sketched plan of a proposed advertisement. It includes the
headline, rough illustration and copy which serve as plan for the
advertisement. The body copy reinforces the headline and delivers the
selling message.
1. mass media
2. Visualisation

1. Define illustration and explain the essentials of a good illustration
2. What is Visualization? Explain the importance of visualization.
3. What are the types of Illustrations Explain them in brief.
2.8 References


2) Pitch
3) Brand Reporter
2.10 Keywords
 The process of visualisation is a team work of copy writers, artists,

producers etc. who work together to develop ad copies not only for press
media
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_________________________________________________________________________
Lesson 3 Elements of Print advertising - Copy, slogan,

identification mark, clashing illustrations
_____________________________________________________________________
STRUCTURE
3.0 Objectives
3.1 Introduction
3.2 Advertising copy Elements
3.3 Assignments
3.4 Summing Up
3.7 References
3.9 Keywords
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_________________________________________________________________________
Lesson 3 Elements of Print advertising - Copy, slogan, identification

mark, clashing illustrations
In the last lesson we had discussed Advertising Creativity- Definition & importance.
In present lesson, we shall study about elements of Print advertising - Copy, slogan,
________________________________________________________________
3.0 Objectives
After going through this lesson you should be able :
o Describe Elements of Print advertising - Copy, slogan,

3.1 Introduction
Any copy that features a reward in the headline or illustration and

explains why it is true is called reason why copy. Advertising should
always give consumers a reason to buy the product.
3.2 Advertising copy Elements
It is the most common classification of advertising on the basis of medium

used, advertising may be television, radio, magazine, outdoor, periodicals,
newspapers and direct mail advertising. Indeed, this classification is so
common that it is mentioned here only for the sales completeness. The
above classification of advertising has been done and is important with a
view to impart knowledge of the essential differentiation between the
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various kinds of advertising. The concepts and terminology and major

communication tools throughout the advertising world
Elements of Print Advertisement
Print advertisements have four key element:
o Headline
o Copy
o Illustrations
o Slogan
o Signature
Headline
The headline is the phrase or sentence that attracts the readers’ attention
to a product or service.
A headline should also lead readers into the ad’s illustration and make the
m want to read the
copy. The phrase or sentence that captures the readers’ attention, arouse
s their interest, and entices them to read the rest of the ad. Before writing
a headline,a copywriter must know the needs of the target market, includin
g matters concerning:-Price , Delivery ,Performance, Reliability,-Service &
Quality Effective headlines are brief.
They identify a benefit of the product or service and stress those benefits
by making promises, asking questions, posing challenges, or using
testimonials.
Three essential advertising words guaranteed to attract attention:
New! Now! Free!
Copy
The copy is the selling message of a written advertisement.

It details how the product or service meets the customer needs identified
in the headline.
Good copy should:
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-Be personal and friendly
-Be simple and direct
-Appeal to the senses
Illustration
The illustration is the photograph, drawing, or other graphic elements

used in an advertisement
It should attract and hold attention and encourage action.
The illustration should transmit a message that would be hard to communi

cate with words alone.
Clip art takes the form of images, stock drawings, and photographs.
Clip art is often used forprint advertisements because it is inexpensive, qu
ick, and easy to use.
The photograph, drawing, or other graphic element

used in an advertisement. Image, stock drawings and photographs used in
print advertisements.
Illustration
Whatelements in this ad entice the viewer or the reader to take a look pay
attention?An ad’s illustration s
ould attract and hold the reader’s attention and be integrated with the hea
dline.
Signature
The signature, or logotype (logo), is the distinctive identification symbol

for a business.
A well-
designed signature gets instant recognition for a business.The distinctive i
dentification for a business; also known as logotype or logo.
A slogan is a catchy phrase or words that identify a product or company.
Here are some techniques copywriters use when developing slogans:
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-Alliteration uses repeating initial consonant sounds.
-A paradox is a seeming contradiction that could be true.
-Rhyme uses rhyming words or phrases.
-A pun is a humorous use of a word that suggests two or more of its

meanings or the meaning of a similarly-sounding word.
-A play on words cleverly uses words to mean something else.
A catchy phrase or words that identify a product or company.
 Some day you will be old enough to start reading fairy tales again.
 The swiftest traveller is the one that travels afoot.
 The best in the west.
 Alarmed? You should be. (a security company)
Advertising Layout
 Explain the principles of preparing an ad layout

 List advantages and disadvantages of using color in advertising
 Describe how typefaces and sizes add variety and emphasis to print
advertisements
Using Colour in Print Advertisements
A color ad is usually more realistic and visually appealing and commands

the reader’s attention more than a black-and-white ad does.
Although color ads are more expensive than two-color (usually black and
another color) ads, studies have also shown that color ads are usually
more cost-effective than two-color ads because of their increased
response rates.
Be sure to choose colors appropriate to the mood of your

ad.Also, consider the fact that colors have different meanings in different
cultures.
Selecting Typefaces and Type Sizes for Print Advertisements
The look and appearance of the type is called the typeface.A complete se
t of letters in a specific size and typeface is called a font.
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Selecting typefaces and type Sizes for print advertisements
A serif font has..Short crosslines at the upper and lower ends of the letters
. Times Roman and Palatino are two commonly used serif fonts.
Sans serif fonts do not have crosslines. Arial, Helvetica, and Futura are
common sans serif fonts
The appearance of the typeface affects the entire character of an advertis

ement.It is important that the font is large enough to read.
Advertising Copy
Every product corporation or non-profit institution eventually takes on a

personality by means of which people visualize it remember it and
describe it to either people. Creative people must therefore understand the
process of putting the different elements in an infinite number of ways.
When they start putting their creative strategy in action they must know
which part of the advertising should come first the headline slogan picture
brand name and so on. Let us discuss these elements in turn.
1.Slogan
It is a phrase or a sentence that describes either the benefit derived from

the product or one of the product’s most important attributes. It consists of
a single phrase by which an advertiser conveys an important idea which
will presumably lead readers to remember and think favourable of his
company. It may6 play either a principal or a subsidiary role.
Slogan has two most common purposes: One to provide continuity for a
campaign perhaps for a year or for many years. Two to crystallize in for a
campaign perhaps for a year of for many years. Two to crystallize in a few
memorable words the key idea or theme one wants to associate with a
product.
An advertiser is most likely to use a slogan when he has some basic idea
or theme he wants to establish and continue for a long time. For example,
‘Toothpaste that promises glowing skin’. There be political slogans like –
‘The leader you can trust. In war in peace Similarly there can be social as
well as religious slogan also.
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Types of Slogans
To be effective a slogan should be consistent with the purpose of the

advertisement. Therefore if there is a drastic change in a campaign’s
purpose it is usually wise to change the slogan also. Mainly there are two
types of slogans one that emphasizes a product two that emphasizes
action to be taken.
Slogan that emphasizes product or reward: Every product has some

reward to offer consumers. It may have some hidden quality that
differentiates a product from the competition’s. The trick then is to find
some way of dramatizing in effective words a particular product’s
advantage. For example, ‘Toothpaste that promises glowing skin’
Slogans that emphasize action to be taken: The slogan might urge directly
that you use the product or service for example. Bright spare for your
bright ideas.
Characteristics of Slogan
 Slogan should be brief well balanced and easy to say.

 It should be built on one idea.
 Easy to remember.
 Make it help differentiate the product.
 Make it provoke curiosity if possible.
 Make sure it highlights either a product reward or an action.
 Use rhythm and rhyme.
 Make sure the slogan is not likely to confuse the consumer.
Headlines
Group of words used to attract the attention of customers is called

headline. John Caples described that the headline is the most important
element in most advertisements.
Functions
(i) The prime function of the headline is to gain immediate attention

sometimes the headline is expected to do this job alone; more often it
works hand in hand with the illustration or other visual elements.
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(ii) A second function of most headlines is to lure readers into the text.
Not only does the headline attract and select but it invites the readers
to step in and stay a while. Instead of telling the whole story it tells just
enough to arous interest.
Characteristics
(i) Headings should have an immediate impact on the readers.
(ii) It should include some promise of reward either direct or indirect.
(iii) It should be understandable at a glance because people will not spend

time trying to figure out what your are saying.
(iv) Headlines should be specific and to the point. It should not be general
and applicable to any product.
(v) It should be co-ordinated with other element of the advertisement.
There is no rule saying that you have to include a headline in every

advertisement. If some other element can fulfil its functions more
effectively by all means omit the head.
Classifications of Headlines
(i) Direct headlines: Direct headlines are straight forward and

informative. It tells people whether the message is in line with their
predispositions. If the features of the product are strong and can
arouse the interest stimulate sales response direct headline is better.
It can state the fact but it could not explain the method.
(ii) Indirect headlines: If the appeal of the product is not very strong use
indirect headlines.
(iii) Combination headlines: Combination headlines seek to combine the

virtues of direct and indirect headlines.
(iv) New headlines: These types of headlines can be most effective of all
where the product or service had something new to provide for the
consumers.
(v) “How to” headlines: It can be either direct or indirect. In this type of
headline the words “how to” can be implied as well as spelled out.
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(vi) Question headlines: When a writer frames a headline as a question

he expects to make his audience seek the answer in the text. A
question headline will be more provocative if it carries some
interesting information or a stimulating idea.
(vii) Command headlines: A command headline polity “orders” the reader

to do something.
Headline Length
There is no ideal length for a headline. It should use the words necessary
to accomplish its job-no more, no less.
Subheads
Very often advertisements have only one headline. Some have several of
these one is usually the main headline and the others subordinate.
Subheads serve several purposes. For example a writer who expresses a
provocative thought in his main headline may want to expand on that
thought in a subhead directly following.
Illustrations
An illustration in an advertisement is only one step behind from the real

product or service advertised. It is therefore closer to reality than the
written language. Illustrations are usually the most important visual
element in any print advertisement.
Functions
 They attract the attention of the desired target audience.

 They communicate a relevant idea quickly and effectively.
 They interest the audience in the headlines and copy.
 They help make the advertisement more believable.
To make an illustration selective you must make sure it has some

relevance to your product or to the copy. This should be clear to the
readers when they first note the advertisement or when they read the
copy.
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Characteristics
(i) The best illustrations usually have a simplicity that makes it easy for
the reader to get the point.
(ii) It should be chosen with singleness of purpose and the readers should
get the point almost as soon as they see the page.
(iii) The most interesting picture will be the one readers can identify with
themselves or their own problems and needs. It must tell first enough
to what the reader desire to find out the details of the product the
situation or the image you are trying to communicate.
(iv) The illustrations should be believable so that the readrs accept the rest
of the advertisement. Readers will be critical of anything that strikes
them as illogical.
Kinds of Illustrations
Illustrations are commonly classified both on the basis of their subject

matter and on the basis of the technique used to portray the picture.
Subject-wise Classification
The illustrations can be classified subject- wise in the following way:
(i) The product itself.
(ii) Part of the product.
(iii) The product ready for use.
(iv) The product in use.
(v) The product being tested.
(vi) Differentiating features of the product.
(vii) Consumer reward as a result of using the product.
(viii) Effect on the consumer of not using the product.
(ix) Testimonial for the product.
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Technique- wise Classification
The two basic illustrative techniques available to the advertiser are

photographs and artwork.
(i) Photographs
Our society has become picture oriented. Watching television has made it
expect to see and watch news event and to see products in use. IT is
appropriate that a new product be announced by a photograph we
associate realism and authenticity with pyotgraphs. Photographs are used
extensively in industrial and trade publications so that the technicians who
read them will learn what the products look like and how they will perform.
(ii) Artwork
Original art work is often used to create a desired mood. If some product
feture is to be exaggerated or if a mood of warmth or coolness or
sophistication is sought a skilful artist is engaged. Artwork tends to cost
more than photography. Artwork helps to make cartoons and diagrams
cartoons represent a quality of homour.
Diagram: It another useful form of artwork especially in illustrating

complicated products.
1. Copy
Copy is the written portion of an advertisement. The basic idea of an

advertisement is to motivate people. It is the main body of words or the
textual matter of an advertisement. The copy regardless of medium is
basically an application of the headline theme. If you have a headline body
text should explain it.
Before writing any actual copy a copy writer can wisely draw up a copy
policy. “A copy policy is a diagram or blueprint of a number of pieces of
copy that are to be written”. It should explain the following:
(i) To whom the copy is addressed any why?
(ii) What media are being used?
(iii) The exact purpose of this piece of copy.
(iv) The points that are to be made and the sequence in which they are to
be made.
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Functions
(i) The copy must arouse interest.
(ii) It must provide believable information that is easy to understand and

likely to what desire to won the product.
(iii) It must compel the readers to see the product and to try it out or at
least accept the image the writer has presented.
Rules for copy writing
(i) Gain a through understanding of the consumers to whom the

message is to be addressed.
(ii) State what consumers want to hear.
(iii) Know the language of the reader and talk to him in his won language.
(iv) Stress on one appeal preferably.
(v) Do not talk too many things.
(vi) Employ the present tense.
(vii) Be specific.
(viii) Avoid fine writing write simply.
(ix) Make sure that the copy is readily understandable to consumers at

the first instance.
(x) Break the copy into paragraphs not only for the purpose of conveying
the message properly but for easy reading also.
(xi) Make no untrue statements or statements which are likely to be

doubted by readers.
(xii) Brevity is the best gift of copy.
(xiii) Say maximum in the minimum space.
(xiv) Thoughts should be conveyed properly.
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(xv) Make the copy interesting which will lead the readers to read rest of
the body text.
(xvi) Use short rather than long words wherever possible but do not
discard the long word if it reflects your meaning more exactly.
(xvii) Copy should be timely relevant crispy and juicy.
Classifications of Copy
(i) Reason Why Copy
Any copy that features a reward in the headline or illustration and explains
why it is true is called reason why copy. Advertising should always give
consumers a reason to buy the product.
The reason why approach is more common in print than in broadcast

advertising. In print readers can proceed at their own speed from headline
to copy .In the broadcast media the speed is controlled by the sender and
a less-than –attentive listener or viewer is likely to miss the reasons why
an opening lead is true.
(ii) Humorous Copy
Advertisement can be made more appealing by a touch of humour.

According to television consultant Harry Wayne Mc Mohan the number
of television commercials that use humour in communicating their
message is increasing. Humorous copy may have the following
generalizations:
(a) Humorous messages attract attention.
(b) Humorous messages may detrimentally affect comprehension.
(c) Humour may distract the audience yielding a reduction in counter-

argumentations.
(d) Humour tends to enhance source crediability.
(e) Humour should be related to the target audience.
(f) A humorous context may increase liking for the source and create a
positive mood.
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(iii) Descriptive Copy

When copy includes description of the product or service and the
description becomes the major focus of the advertisement the copy is
called descriptive. This happens when the appearance of the product or
reward it promises needs strong emphasis in the copy to make it clear to
prospective buyers.
(iv) Testimonial Copy
Advertisers tend to prefer celebrities who are widely known easily
recognized well liked and who have not endorsed a wide variety of
products. The principal advantage of using celebrities is their ability to
attract immediate attention. For example Hemamalini is shown using Lux
of Kapil is drinking Maltova and so on.
(v) Straight Copy
Straight copy has very straight message. It identifies the needs of the
people you call it in simple words “Warm in Dhaliwal Shawl”.
(vi) Dialogue Copy
When two or more persons are shown communicating with one another
and solving their problems is called a dialogue copy. But the dialogue
should be well written should be interesting convincing and persuasive.
Poor dialogue is dull and unnatural dialogue is unconvincing.
(vii) Narrative Copy
The story is the main in the narrative copy. Almost everyone likes to hear
an interesting story. The story is one of the loudest forms of literature and
is a reliable approach to communicating and advertising point. Among the
common forms of narrative copy are the short story the picture and
caption and the comic strip.
_____________________________________________________________________
1. When copy includes description of the product or service and the

description becomes the major focus of the advertisement the copy is
called______________.
2. When two or more persons are shown communicating with one another
and solving their problems is called a __________________
_____________________________________________________________________
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3.3 Assignments
1. Collect the samples of various copy of advertising
a. Rules for copy editing
b. illustrations
3.4 Summing Up
Advertisement copy preparations The presence or absence of a picture
an advertisement can cause marked difference in its effectiveness. With
the help of illustration over-emphasis in the subject matter can be avoided
and display appeal can be made clear and direct. The inadequacy of
language is compensated for the use of an illustration
1. Descriptive copy
2. Dialogue copy
1. What are the basic elements of print advertisement? Explain the

importance of each element of advertising with a suitable diagram of a
print advertisement.
2. Design a print advertisement with all elements of advertising for a

product/service of your choice.
3.7 References

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2) Pitch
3) Brand Reporter
3.9 Keywords
An illustration in an advertisement is only one step behind from the real

product or service advertised. It is therefore closer to reality than the
written language.
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___________________________________________________________________
Lesson 4 Characteristics, Advantages & Disadvantages
of Advertising Medium
__________________________________________________________________
STRUCTURE
4.0 Objectives
4.1 Introduction
4.2 Media vehicle for advertising
4.3 Assignments
4.4 Summing Up
4.7 References
4.9 Keywords
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___________________________________________________________________
Lesson 4 Characteristics, Advantages & Disadvantages of
Advertising Medium
__________________________________________________________________
In the last lesson we had discussed elements of print Advertisement. In present lesson,
we shall study about characteristics, advantages & disadvantages of Advertising
Medium
4.0 Objectives
 Understand Advantages & Disadvantages of Advertising Medium
4.1 Introduction
Selecting an appropriate medium makes the advertisement delivered to
get reach for actual target audience.
4.2 Media vehicle for advertising
An important step while a advertising plan is to select the suitable media

vehicle to send the message to the target audience. Every media vehicle
has certain relative advantage and disadvantages.
Advantages of Newspaper
Newspapers: Newspapers are one of the traditional mediums used by

almost all types of businesses houses.
Advantages
 Allows to reach a huge number of people in a given geographic area

 One has the flexibility in deciding the ad size and placement within the
newspaper
 Ad can be as large as necessary to communicate.
 Exposure to ad is not limited; readers can go back to your message again
and again if so desired.
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Disadvantages of Newspaper Advertisement
 Ad space can be expensive

 Ad has to compete against the clutter of other advertisers, including the
giants ads.
 Poor photo reproduction limits creativity
 Newspapers are a price-oriented medium; most ads are for sales
 Expect the ad to have a short shelf life,
 Paying to send the message to a lot of people who will probably never be
in the market to buy the product.
 Newspapers are a highly visible medium, so the competitors can quickly
react to the prices
 Due to growing popularity of the Internet, newspapers has been facing
declining readership. Readers now a days skip the print version of the
newspaper and instead read the online version.
Advantages of Magazine Advertising
Magazines: Magazines are a more focused, which allows the advertisers

to reach highly targeted audiences.
Advantages
 Allows for better targeting of audience, as advertisers can cater to the

specific audience
 High reader involvement means that more attention will be paid to the
advertisement
 Better quality paper permits better color reproduction and full-color ads
 Ad has a comparatively longer shelf life than a newspaper.
Disadvantages of Magazine Advertising
 Long lead times mean that the advertisers have to make plans weeks or
months in advance
 The slower lead time heightens the risk of your ad getting overtaken by
events
 There is limited flexibility in terms of ad placement and format.
 Space and ad layout costs are higher
Advantages of Radio Advertising
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Radio is a universal medium enjoyed by people at one time or another

during the day, at home, at work, and even in the car.
 It transmit instantaneously advertising message.

 The vast array of radio program formats offers to efficiently target the
advertising expenses to narrowly defined segments of consumers.
 Creation of advertisement using sounds and voices can produce more
impact.
 Low advertising rates and can generally be negotiated
 It is a flexible medium, programme can be made to suit season, day and
even hour.
Disadvantages of Radio Advertising
 Radio listeners are spread over many stations, the advertiser may have to
advertise simultaneously on several stations to reach the target audience
 The message is fleeting. Listeners cannot go back to the ads to go over
important points
 The greatest drawback of this medium is that there is no pictorial
presentation of the product.
 Radio is a background medium. Most listeners are doing something else
while listening, so ad has to work hard to get their attention.
 Lack of Demonstration effect.
Advantages of Television Advertising
 Television permits to reach large numbers of people on a national or

regional level in a short period of time
 Independent stations and cable offer more opportunities to pinpoint local
audiences
 Television being an image-building and visual medium, it offers the ability
to convey the message with sight, sound and motion
 Television is a very prestigious medium of communication
Disadvantages of Television Advertising
 Message is temporary, and may require multiple exposure for the ad to

rise above the clutter
 Preferred ad times are often sold out far in advance
 Limited length of exposure, as most ads are only thirty seconds long or
less.
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 The message is fleeting. Listeners cannot go back to the television ads.

 Relatively expensive in terms of creative, production and airtime costs
Advantages of Outdoor/Transit Advertising: People can't "switch it off"

or "throw it out." People are exposed to it whether they like it or not. In this
sense, outdoor advertising truly has a "captured audience."
 Short, simple and legible copy makes easy to comprehend the message.
 It's messages work on the advertising principle of "frequency." Generally
messages stay in the same place for a period of a month or more, people
who drive by or walk past see the same message a number of times.
 It is most effective when coupled with other media.
 It is easy to identify advertiser or product name.
Disadvantages of Outdoor/Transit Advertising
 Outdoor advertising is a glance medium. At best, it only draws 2-3

seconds of a reader's time.
 Messages must be brief to fit in that 2-3 second time frame. Ninety-five
percent of the time, either the message or the audience is in motion.
 The nature of the way the advertiser has to buy outdoor advertising is not
conducive to a very short, week-long campaign.
Advantages of Internet Advertising: Internet ad can be displayed as

very comprehensive compared to other media, it is definitely much
cheaper than most mediums of advertising.
 If the product / service are aimed at the younger generation or the

corporate world, Internet advertisements would be best because they are
already hooked into the net, surfing websites.
 Everything one really need is a computer, some knowledge and ideas for
designing the site, then search for the best Internet ad package for
advertising needs and budgets, choose from a variety of advertisement
ways like banner ads, text ads, pop-ups etc.
 Update ads: Unlike TV commercials, the Internet ads could go for some
time without change.
Disadvantages of Internet Advertising
 It is a "limited" market that can be conquered, if only use the Internet for
advertising display..
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 If one decides to rent the help of a professional, a freelancer or a company

for the production of the site and /or advertising for the product or service,
of course it costs more than if one did it yourself.
Direct Marketing
Direct marketing is a sales technique involving unsolicited contact with

potential customers from companies trying to sell products. A direct
marketing campaign typically includes certain components, such as
addressing potential customers and asking those potential customers to
take immediate action, including calling or visiting a website. Common
forms of direct marketing include email, online advertisements,
promotional letters, catalog distribution and mobile messaging.
Advantages
There are some advantages to direct marketing campaigns. Typically,

direct marketing campaigns request responses from potential customers,
making the results tractable and allowing companies to quickly determine
if the campaign is successful. Direct marketing campaigns are also
beneficial to test consumer responses with a small campaign before
scaling up and launching a full, expensive campaign. This method of
marketing also builds brand loyalty as some customers enjoy receiving
information on deals and discounts, and easily become repeat customers.
Disadvantages
Direct marketing also carries disadvantages. One of the main

disadvantages of direct marketing is the demand from consumers to end
unsolicited contact from companies. Consumers do not appreciate privacy
intrusion or the sheer mass of communication, referred to as spam or junk
mail, received on a daily basis. Other disadvantages include generating
poor quality leads and failing to bring a high number of repeat customers.
138
___________________________________________________________________
Self Check Question

1. Long lead times mean that the advertisers have to make plans
weeks or months in advance after viewing magazine ads.
________
2. Exposure to _____________ad is not limited; readers can go back
to your message again and again if so desired.
_____________________________________________________________________
4.3 Assignments
1. Collect the samples of various ATL and BTL techniques.
a. Direct Marketing
b. TV advertisment
4.4 Summing Up
Advertisement placement on media vehicle enables the advertiser to
analyse the response by the prospects to an advertisements. It gives him
an idea of when, how, why a customers accepts a particular products or
rejects it. This will help him to present the product in such manner that he
(prospects) takes a favourable or positive action..
1. True
2. Newspaper Ad
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1. Design a multimedia plan of media vehicles for launching new

product/services with suitable justification.
2. What is Direct Marketing? Can direct marketing substitute advertising?

Explain with suitable justifications.
3. What are the advantages and disadvantages of using different types of

media vehicles for advertising?
4. What is support media for advertising? Explain the role of the following
support mediums for advertising.
(i) Out-of–home,
(ii) in-store, transit
(iii) yellow pages
(iv) Movie theatre,
(v) In-flight
4.7 References


2. Pitch
3. Brand Reporter
4.9 Keywords
Television permits to reach large numbers of people on a national or

regional level in a short period of time
140
Unit IV Ad Agency Structure & Functions
Lesson 1 Concept of advertising agencies
Lesson 2 Ad agency-Role, Types, Structure & functions
Lesson 3 The advertisers; client –agency relationship
Lesson 4 Criteria to select an ad agency
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__________________________________________________________________
__________________________________________________________________
STRUCTURE
1.0 Objectives
1.1 Introduction
1.2 Advertising Agency
1.3 Assignments
1.4 Summing Up
1.7 References
1.9 Keywords
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___________________________________________________________________
In unit 4 we shall discuss with the Concept of Ad agencies and its types.
And the criteria for selecting ad agency ,client and agency relationship In
present lesson we shall study the Ad agency Meaning and its importance.
1.0 Objective
 Describe Advertising Agencies
1.1 Introduction
The American Association of Advertising Agencies or 4As defined
advertising agency as – “Advertising agency is an independent business,
composed of creative and business people who develop, prepare and
place advertising in advertising media for sellers seeking to find customers
for their goods or services.”
1.2 Advertising Agency
Definition
An advertising agency or ad agency is a service business

dedicated to creating, planning and handling advertising (and sometimes
other forms of promotion) for its clients. An ad agency is
independent from the client and provides an outside point of view to the
effort of selling the client's products or services. An agency can also
handle overall marketing and branding strategies and sales promotions
for its clients.
An advertising agency is:
 an independent business organisation
 Composed of creative and business people
 Who develop, prepare and place advertising on advertising media
 For sellers seeking to find customers for their goods and services.
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Origin of the advertising agency - the first ever agency was put together
in Britain in 1800 called “Whites” which created advertisements for the
Government lotteries and mostly recruitment advertising. First agencies
were no more than space brokers, selling press advertising space on a
freelance basis for newspapers.
As the production and penetration of newspapers increased, the brokers

began to compete by offering copywriting and design service. The
messages were repetitive and lacked creativity. This soon led to the birth
of creative advertising agencies. After the Second World War the
agencies developed additional services like market research, media
planning etc
___________________________________________________________________
Self Check Question
1. An _________is independent from the client and provides an

outside point of view to the effort of selling the client's products or
services.
__________________________________________________________________
1.3 Assignments
1. Collect the samples of various Advertising related ATL and BTL

techniques.
a. Ad agency
1.4 Summing Up
Ad agency help to develop prepare and place advertising in advertising

media for sellers seeking to find customers for their goods or services. An
agency can also handle overall marketing and branding strategies and
sales promotions for its clients.
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1. ad agency
1 What is advertising agency? What are the functions of an advertising

agency?
1.7 References


2) Pitch
3) Brand Reporter
1.9 Keywords
An advertising agency or ad agency is a service business dedicated to

creating, planning and handling advertising (and sometimes other forms of
promotion) for its clients.
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__________________________________________________________________

__________________________________________________________________
STRUCTURE
2.0 Objectives
2.1 Introduction
2.2 Role of advertising agency
2.3 Functions of an Advertising Agency Departments
2.4 Types of advertising agencies
2.5 Role of Ad Agency
2.6 Function of Ad Agency
2.7 Working of Ad Agency
2.8 Agency Compensation
2.9 Agency Evaluation
2.10 Reasons for Losing Clients
2.11 Assignment
2.12 Summing Up
2.15 References
2.17 Keywords
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___________________________________________________________________
In the last lesson we had discussed Ad agency & its types .In present
lesson, we shall study about the methods of agency compensation,
accreditation of ad agency, ATL and BTL techniques of advertising and
the relationship between them.
2.0 Objectives

 Describe Methods of agency compensation
 Understand ATL and BTL techniques
2.1 Introduction
An advertising agency brings together people with the required
expertise and experience of the various sub-disciplines of advertising.
2.2 Role of advertising agency
The major role as advertising agency is to work alongside the clients to

develop and sustain the brands that they mutually serve, through
consumer understanding and insight and through creative and media
delivery skills to provide best advice and the best execution thereof to
those clients for the advertising of those brands.
Brands are much more than mere products and services. Brands, if
successful, are clearly differentiated entities with which consumers can
and do form a mutually beneficial relationship over time, because of the
values – rational and emotional, physical and aesthetic – that consumers
derive from them. The importance can be summed up as follows:
” A product is something that is made, in a factory: a brand is something

that is bought, by a customer. A competitor can copy a product; a brand is
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unique. A product can be quickly out-dated; a successful brand is

timeless.”
The role of advertising and the advertising agency is to help effect this
transformation from product or service to brand by clearly positioning the
offering to the consumer – its role and its benefits – and by communicating
the brand’s own personality. In short its role is to provide meaningful
differentiation via the consumer connection.
As one wise head in advertising once said, “nothing kills a bad product
faster than good advertising”. Typically advertising is playing this role,
along with other parts of what we call the marketing mix, in highly
competitive market places.
Most advertisers assign this job of informing the target audience and
creating images to advertising agencies. Thus, the advertising agencies
plan, prepare and place ads in the media. But even an advertiser can do
all these things. The management can do planning of ad campaigns. For
preparing ads, creative personal can be hires. And the advertiser for
placing the ads can buy media space or time. The reason can be enlisted
as follows:
 Expertise and experience- An advertising agency brings together people

with the required expertise and experience of the various sub-disciplines
of advertising. Thus, it has the copywriters, visualizes, researchers,
photographers, directors, planners and people who get business and deal
with clients working in ad agencies. An agency moulds all these people
into a team and gives them a highly conducive work atmosphere. The
agency makes the best use of their talents and experience to deliver
rapidly, efficiently and in greater depth than a company or organization
could do on its own.
 Objectivity and professionalism- Advertising agencies are highly

professional. Objectivity is a major virtue of ad agency. They operate in a
strange way. While they take up advertising for others, agencies hardly
advertise themselves. Ad agencies being outside intermediaries can be
objective. They thus will offer independent and detached viewpoints and
suggestions based on objective analysis.
 Cost effective- If an organization wants to hire people to do its advertising,

it can not provide them work all through the year. Also most experts in the
fields of advertising like directors, musicians, photographers, charge huge
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amounts and are often not affordable. Moreover, hiring, organizing and
managing all talents required to produce advertising campaigns is not an
easy thing. And the fact that 98% of advertisers the worlds over hire as
agencies is proof enough about the cost effectiveness of the agencies.
Also the kind of consistent, powerful and compelling advertising that can
be created by using the expertise, experience, objectivity and
professionalism of ad agencies cannot be measured economically.
2.3 Functions of an Advertising Agency
Big agencies such as HTA, Lowe, O&M are called full service agencies
because they are ONE STOP SHOP for all services that are offered to the
clients. Today’s agencies are providing total communications packages for
the clients’ brands. They are acting as the custodians of the client brands.
In fact research department functions before and after a commercial is

made for pre-testing and post-testing of media respectively. Consumer
insights and brand usages are also tested at times, according to client in
many instances.
An advertising agency can be broadly into four distinctive departments
 Client Servicing / Account Service
 Media
 Creative
 Production
Account service department or Client Servicing
The account service, or the account management department, is the link

between the ad agency and its clients. Depending upon the size of the
account and its advertising budget one or two account executives serve as
liason to the client. The account executive’s job requires high degree of
diplomacy and tact as misunderstanding may lead to loss of an account.
The account executive is mainly responsible to gain knowledge about the
client’s business, profit goals, marketing problems and advertising
objectives.
The account executive is responsible for getting approved the media

schedules, budgets and rough ads or story boards from the client. The
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next task is to make sure that the agency personnel produce the
advertising to the client’s satisfaction. The biggest role of the account
executive is keeping the agency ahead of the client through follow-up and
communications.
Media department
The responsibility of the agency’s media department is to develop a media

plan to reach the target audience effectively in a cost effective manner.
The staff analyses, selects and contracts for media time or space that will
be used to deliver the ad message. This is one of the most important
decisions since a significantly large part of the client’s money is spent on
the media time and/or space. The media department has acquired
increasing importance in an agency’s business as large advertisers seem
to be more inclined to consolidate media buying with one or few agencies
thereby saving money and improving media efficiency.
Creative department
To a large extent, the success of an ad agency depends upon the creative

department responsible for the creation and execution of the
advertisements. The creative specialists are known as copywriters. They
are the ones who conceive ideas for the ads and write the headlines,
subheads and the body copy. They are also involved in deciding the basic
theme of the advertising campaign, and often they do prepare the rough
layout of the print ad or the commercial story board.
Creation of an ad is the responsibility of the copywriters and the art

department decides how the ad should look.
Production department
After the completion and approval of the copy and the illustrations the ad
is sent to the production department. Generally agencies do not actually
produce the finished ads; instead they hire printers, photographers,
engravers, typographers and others to complete the finished ad. For the
production of the approved TV commercial, the production department
may supervise the casting of actors to appear in the ad, the setting for
scenes and selecting an independent production studio. The production
department sometimes hires an outside director to transform the creative
concept to a commercial.
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An advertising agency is in the business of providing services and must be

managed that way. Thus, it has to perform various functions such as
accounting, finance, human resources etc. it must also attempt to
generate new business.
Selecting an Advertising Agency
What factors would you bear in mind while (i) selecting an agency and (ii)
getting the best out of an agency.
The advertising agency plays a very important role in advertising. While

selecting an advertising agency the importance of compatibility should be
borne in mind. The agency takes a very long time in understanding the
problems and accumulating the facts that are necessary for the smooth
functioning of an account. Though this period may be called investment
period, is long it pays a good dividend. Therefore an agency should not be
changed frequently for that results in repeated wastage of investment
period. It will lower the effectiveness of advertising. The following points
should an advertiser bear in mind while (i) choosing an advertising agency
and (ii)getting the best out of an agency.
(1) Choosing an Advertising Agency
While choosing an agency for the first time the advertiser must consider
the working and organizational abilities of the agency. He must well
consider that-
(1) The agency should possess a good experience in creating ideas and
selling them. It should be able to create convincing interesting and result
oriented sales messages.
(2) The agency should be able to think independently on various problems

faced by the advertiser taking inviews the special marketing situations and
not emphasise to solve them by pre-conceived notions which it is unwilling
to change.
(3) The size of the agency should not be taken seriously. A big agency is not
necessarily better than a small agency. On the contrary a small agency
may serve better.
(4) The agency should follow the advertiser in every case. If it feels that
advertiser is not correct it should not hesitate in correcting the advertiser.
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(5) The agency should be able to undertake the market research and use the
results oif research and brains to solve various problems.
(6) The advertiser should think that the agency makes a profit on the account
rather than it works on no profit no-loos basis. The agency otherwise will
not work satisfactorily.
(7) The agency should be financially sound and have good contacts with
media owners. It should also be able to cover local regional and national
advertising campaigns.
(2) How to get best out of an Agency
The next problem after selection of an agency is how to use it to the best
of its ability. For this purpose the advertiser should cooperate with the
agency. He should take the following steps in this connection-
(i) The advertiser should provide all possible information necessary for
the advertising if good services are expected form it.
(ii) The agency should be challenged to produce results. It should be very

lecear form the very beginning that the account will withdrawn if it does
not serve to the satisfaction of the advertiser.
(iii) The advertiser should go as for as possible to keep the agency on its
toes.
(iv) The advertiser should not allow the agency personnel to contact the
junior staff of the company. He should appoint a special person for
liaison work between his company and the agency instead.
(v) The advertiser should not interfere in the working of the agency. He
should allow the agency to work independently and to break away from
conventions where necessary in its presentation.
(vi) The agency should be paid extra for extra work.
(vii) The advertiser should example the work his agency does for other
parties to get new ideas.
It is about time that the top management should look upon advertising as
a basic capital investment-a long-run investment-which does not
necessarily always bring immediate returns. The management should
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realize that advertising performs two functions- (i) it sells products and
services and also the name of the company (advertiser). It means it
creates goodwill for the advertiser. (ii) As because goodwill is created or
increased, it will help sell product tomorrow. Thus increased profits out of
increased sales are the real return for the investment.
2.4 Types of advertising agencies
Full Service Agencies
A full-service agency offers their clients a full range of marketing,

communications, and promotion services, including planning, creating and
producing the advertising; performing the research; and selecting the
media. A full service agency may also offer non-advertising services
such as strategic market planning; production of sales promotion, sales
training and trade show materials.
PROS: This type of agency is able to provide turn-key operations as they

have access to a wide variety of creative people and other services.
CONS: They can lack the desired control by the advertiser and there is
also the possibility that the agency may not fully understand the company,
or the product and services that are being advertised. They can be
closed-minded and if they aren’t constantly looking for fresh ideas,
creativity can be lost.
Specialty Agencies
A specialty agency is one that either works within a particular industry

such as:
1. Medical
2. Real Estate
3. Education
4. Financial
A specialty agency is one that can also work for a particular function
such as:
1. Internet
2. Public Relations
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3. Marketing
4. Research
PROS: This type of agency is an expert in their particular area and

therefore understands perfectly what works and what does not.
CONS: They also may work too independently and therefore the
advertiser feels out of the loop, creating an undesirable working
environment. Also, ideas can become stale if you do not understand the
consumer as someone with many interests.
In-House Agencies
Some companies in an effort to reduce costs and maintain greater control

over agency activities have set up their own advertising agencies within
their own organizations. This type of agency is set up, owned and
operated by the advertiser. Large companies almost always have in-
house agencies and it is common for them to then out source certain
projects to retain a certain “freshness” for campaigns and special projects.
PROS: A major reason for using an in-house agency is to reduce

advertising and promotion costs; therefore, there is more control on behalf
of the advertiser. In- house agencies also have a better understanding of
the product and are aware of the goals and objectives of the company as
most likely there is also a public relations and marketing department within
the organization.
CONS: Disadvantages are there is less flexibility, less objectivity and less
experience. Workers may be “bias”, or too close to the project and over
time campaigns can become “stale.
Creative Boutiques
This type of agency provides only creative services which is the creation
and execution of advertisements. Full service agencies often subcontract
work to creative boutiques when they are busy and do not want to hire a
full time staff member. In-house agencies and specialty agencies use
these services they want a new “fresh” approach to an ad campaign.
PROS: The work is often fresh and provides a new outlook to an ad

campaign
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CONS: They are not part of the overall advertising process and therefore
may miss the mark of what the advertiser is looking for. Two-way
communication is imperative in this process.
Media Buying Agencies
Media-Buying agencies are independent companies that specialize in the

buying of media, particularly radio and television time. The task of
purchasing media has grown more complex as media opportunities have
expanded; therefore, these types of agencies have found a niche by
specializing in the analysis and purchase of advertising time and space.
Advertising agencies, in this case, develop their own media strategies and
hire media buying agencies to execute them. Because these agencies
purchase space in large quantities, they receive discounts and can save
the small agency or client money on media purchase.
Compensation
Advertising agencies of all kinds are compensated in four ways:
1.Fee-For-Service: A per hour fee for actual time billed.
2.Retainer: A monthly fee based on a pre-determined amount of time.
3.Commission: 15% over actual cost of placement
4.Mark-Ups: Compensation of approximately 20% above actual hard

costs.
2.5 Role of Ad Agency

 The major role of advertising agency is to work alongside the clients to
develop and sustain the brands that they mutually serve, through
consumer understanding, insight and through creative and media delivery
skills to provide best advice and execution thereof to those client for
advertising of those brands.
 To help in transformation from product or service to brand by clearly
positioning the offering to the consumer- its role and its benefits- and by
communicating brand’s own personality. In short its role is to provide
meaningful differentiation via the consumer connection.
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2.6 Function of Ad Agency

Today’s agencies are providing total communications packages for the
client brands. They are acting as the custodians of the brands of the
clients.
1. Client Servicing: Also called as “Accounts executives”. He is link
between the agency and clients. He suggests what the client exactly
wants to his advertising agency. He is the one who carries the client brief
and is also responsible for approvals.
2. Creative Department: Under the Creative Director there is a team of
copywriters and Visualizers who arrive at the “BIG IDEA”.Accordingly the
storyboard is prepared and script work is done. The final layout is sent to
the client for approval.
3. Production Department: The production department is responsible to
convert the storyboard in to a finished layout (technical storyboard if it’s for
print medium or outdoor. The final storyboard is made into a technical
storyboard, before it goes for shooting.
4. Media Department: The Media planner along with the media manager
and brand manager/media dept of the client prepares the final media
budget and purchases insertions for print media (space buying) or
purchases radio spots if it’s for Radio or purchases TV time if it’s on
television. Appropriate media mix is developed.
5. Research Department: In fact Research dept functions before and
after a commercial is made; for pre-testing and post-testing of media
respectively consumer insights and brand usages are also tested at times
according to client in many situations
6. Financial Department (Accounting): This dept looks after the accounts
(financial records) for the agency.
7. Strategic Planning: Strategic planning is a heart of an advertising
agency. It will be headed by VP Strategic Planning and assisted by
strategic planners.
Working of Ad Agency
Ad agencies started as one man agents who booked space in media. In

course of years, the ad agencies became service oriented and was able to
offer every possible service including marketing, marketing
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2.7 Working of Ad Agency
Ad agencies started as one man agents who booked space in media. In

course of years, the ad agencies became service oriented and was able to
offer every possible service including marketing, marketing research and
public relations.
Full-service Agencies: The full-service agency is composed of various

departments, each responsible for providing inputs needed for performing
various functions to serve the client.
Functions are as follows:
1. Account Services.
Account services or account management is responsible for the

relationship between the agency and the client. One or more account
executives are assigned to serve as liaison between agency and the
account (client) depending on the client‘s size and the advertising budget.
The account executive‘s job requires a high degree of diplomacy and tact
as misunderstanding may lead to loss of account.
The account executive is responsible for acquiring knowledge about the

client‘s business, profit goals, marketing problems and advertising
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objectives. The ideal account executive has a strong marketing

background and a deep understanding of all aspects of the advertising
process. The biggest contribution of the account executive is keeping the
agency ahead of its client‘s needs through follow-up and effective
communication.
2. Marketing Services.
The research department is maintained by the full service agency to

gather and interpret published information (secondary data) or primary
data (first hand information through research) which is useful in
developing advertising for their clients.
The responsibility of the agency‘s media department is to develop a media

plan which can reach the target audience effectively in a cost effective
manner. The staff analyses, selects and contracts for media time or space
that will be used to deliver the ad message. This is one of the more
important decision areas as a significantly large part of the clients budget
is spent on media time and/or space. Media specialists must consider the
reach and frequency of the chosen media, their rates and how well the
media matchers the target audiences media preferences and habits
before actually purchasing the time and space.
3. Creative Services.
To a large extent, the success of an agency depends on the creative

services department to which is responsible for the creation and execution
of the advertisements. The creative specialists are known as copywriters‘.
They are the one who conceive the ideas for the ads and write the
headlines, subheads, and body copy. They are also involved in
determining the theme or basic appeal of the advertising campaign and
often prepare the rough layout of the print ad or storyboard for TV
commercials.
Creation of ad message is the responsibility of copywriters and the art

department decides how the ad should look. The art director and the
graphic designer coordinate their work and prepare the layouts for a print
ad. These sketches or drawings of the ad show what it will look like when
fully completed. The layout prepared for a TV commercial is a sequence
of frames showing the commercial in still form and is called a storyboard.
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After completion and approval of the copy, layout, illustrations and

mechanical specifications, the ad is handed over to the ‗production
department‘. Generally agencies do not actually produce finished ads;
instead they hire printers, photographers, engravers (designers),
typographers (typing of written materials and others to complete the
finished ad. For the production of approve TV commercial, the production
department may supervise the casting of actors to appear in the ad, the
settings for the scenes, and selecting an independent production studio.
The production department sometimes hires an outside director to
transform the creative concept into a commercial.
Creation of an ad often takes several months and may involve many

people. A major problem with large agencies handling many accounts is
coordinating the creative and production processes. The responsibility of
‗traffic department‘ is to coordinate all phases of production and ensure
that the ads are completed on time to meet the media deadlines.
4. Management and Finance.
An advertising agency is in the business of providing services and must be

managed that way. There is an administrative head who takes charge of
functions such as finance, accounting, human resource and office
management.
Media Buying Services
These are independent agencies specializing in media buying services

and have been experiencing strong growth. The advertising media buying
has become complex with the increase in specialized media. Clients and
ad agencies generally develop their own media strategies and contract
media buying services to execute them. Agencies offering this service buy
large chunks of space and time, thus receiving large discounts, and save
money for clients and small ad agencies on media purchases. For the
service rendered, they are paid a commission or fee by the agency or the
advertiser.
Creative Boutiques
Such an agency provides only creative services. These creative boutiques

have grown in response to advertisers‘ desire to use only the high quality
creative talent of an outside service provider and rest of the functions are
completed within the advertiser‘s organization.
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Many full-service agencies too sub-contract work to creative boutiques

when they want to avoid increasing full-time employees or are very busy.
These boutiques usually work on an agreed fee basis.
Creative department people on leaving big agencies start such boutiques

and carry with them some of the agency‘s clients who want to retain their
creative talent.
In-house Advertising Agency
For companies with their own in-house advertising agencies, the major
consideration is to decrease advertising and other promotional costs by
exercising greater control over their activities. The in-house agency is set-
up and given an identity of its own. It is owned and operated by the
advertiser and handles large sums of advertising money. The substantial
advertising money paid to outside agencies in the form of media
commissions goes to the in-house agency.
2.8 Agency Compensation
There are three methods used to compensate the agencies for their
varied services
1. Commission.
The most traditional method for compensation or remuneration of

advertising agencies for their services is through a ‗Commission
System‘. The agency is paid a fixed commission (usually it is 15 %) from
the media on any advertising space or time purchased for the advertiser.
The rate for outside media is slightly higher (usually it is 16.66 %). This is
a simple system to determine the amount of commission.
Drawbacks or Criticism – For e.g., To produce an ad, two agencies may

put in the same amount of effort, however, one client spends Rs 5,00,000
on media and the other spends Rs 10,00,000. The agency serving the
first client would get paid only Rs 75,000, while the other agency would
get Rs 1, 50,000 in commissions. The critics that this system encourages
agencies to recommend higher media expenditures to increase their
earnings. The clients say that in periods of media cost inflation, the
agencies earn disproportionate amounts as commissions.
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2. Negotiated Fee.
A number of agencies and their clients negotiate some type of fee system
or cost-plus arrangement for compensation. Some use an incentive-
based compensation system combining a fee and system. Agency
executives sometimes feel that 15 percent commission is inadequate for
the services rendered to the client. In an arrangement of fixed-fee
method, the agency charges a fixed monthly fee based on the work being
done. This would apply to all the services provided and the agency
passes on to the client any media commissions earned. The fee system
is used in TV advertising where once the commercial is created it may be
used over a long period of time. Without an agreed fee system, the
agency would receive 15 per cent commission on media time, every time
the commercial is run.
Sometimes the agency is paid through a combination of fee and

commission method. The media commissions received are by the agency
are adjusted against the agreed fee. If the received commissions are
less than the agreed upon figure, the client has to make up for the
difference.
The agency should carefully assess the costs of serving the client for the
specific project, or the specified time period, and what profit margins are
desired. Such a fee arrangement should specify exactly what services the
agency has to perform for the client. This would help avoid the possibility
of any unpleasant disagreements between the two.
Under the cost-plus system‘, the client agrees to pay a fee based on the
cost of work the agency performs, plus some mutually agreed margin of
profit for the agency. The agency is required to keep detailed records of
the costs incurred in perform the desired services for the client.
3. Percentage Charges.
When the agency purchases various services from outside providers,

they do not allow the agency a commission and to cover up
administrative costs and reasonable profit for the agency‘s efforts, a
make-up of percentage charges for such services is added to the bill.
These services may include market research, artwork, photography,
printing and other services. The percentage charges range between
17.65 per cent and 20 percent. For example, if the agency pays Rs 1,
00,000 for research, 17.65 of this figure is added to reach a total of Rs 1,
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17,650. The agency adds 17.65 percent of this total in the overall bill.
Approximately this yields 15 percent commission (17.65 percent of Rs 1,
17,650 = 17, 647.50 and equals to 15 percent of Rs 1, 17,650).
2.9 Agency Evaluation
The process of agency evaluation involves regular assessment of two

aspects of performance area-financial and qualitative.
1. Financial – the financial assessment focuses on how the agency

conducts its business vis-à-vis costs and expenses, the number of
personnel hours charged to an account and what payments are made to
media and other outside service suppliers.
2. Qualitative Assessment – explores the agency‘s efforts devoted to

planning, developing and implementing the client company‘s advertising
campaign and an assessment of the achievements.
Depending on the importance of advertising in a company‘s marketing

programme, both informal and formal methods of assessment are used
by different companies. Some companies develop a formal and
systematic evaluation method that uses a ranking scale for creative and
media services, such as poor/average/excellent‘ on a scale of 1 to 10.
Brand or promotion managers complete the advertising agency
performance evaluation, usually once a year. These reports are reviewed
with the agency at each annual meeting.
2.10 Reasons for Losing Clients
Some of the more common causes that account for agencies losing clients
are
 The client‘s dissatisfaction with the agency‘s performance with

regard to advertising quality or service.
 Poor communication between the client and the agency personnel

hinders a good working relationship.
 Personality clashes between the client and agency personnel.
 Unrealistic client demands, which reduce the account‘s profitability

for the agency.
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 New managers in client‘s organization may want to use an agency

with which they already have established ties.
 Often when agencies merge, there is a conflict of interest as two

close competitors may on the merged agency‘s account list.
 A change in the client‘s marketing strategy
___________________________________________________________________
1. _________________________ is the most common and the oldest

method of paying the agency services.
2. This fixed rate of commission is ____________ percent in USA as

well as in India.
2.11 Assignments
1. Prepare the samples of Advertising Budget.
a. Commission System
b. Negotiated Fee
c. Percentage Charges
2.12 Summing Up
This lesson dealt with various methods of agency compensation and ATL
and BTL techniques of advertising. Explores the agency‘s efforts devoted
to planning, developing and implementing the client company‘s
advertising campaign and an assessment of the achievements.
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1) Commission System (2) 15%
1. What are the different methods of agency compensation? Explain.
2.15 References


2) Pitch
3) Brand Reporter
2.17 Keywords
Qualitative Assessment – explores the agency‘s efforts devoted to

planning, developing and implementing the client company‘s advertising
campaign and an assessment of the achievements.
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_________________________________________________________________
__________________________________________________________________
STRUCTURE
3.0 Objectives
3.1 Introduction
3.2 Client Agency Relationship
3.3 Assignments
3.4 Summing Up
3.7 References
3.9 Keywords
165
_____________________________________________________________________
_____________________________________________________________________
In the last lesson we had discussed Ad agency & its types .In present
lesson, we shall study about client –agency relationship
3.0 Objectives

 Describe Methods of agency compensation
3.1 Introduction
The role of advertising and the advertising agency is to help effect this
transformation from product or service to brand by clearly positioning the
offering to the consumer – its role and its benefits – and by communicating
the brand’s own personality. In short its role is to provide meaningful
differentiation via the consumer connection.
3.2 Client Agency Relationship

 Trust – If you don’t trust your agency or client, your partnership will
not work in the long run. Trust is critical.
 Sharing – Without it, you’ll collectively miss opportunities, overlook
valuable insights, and never be able to help your brand get to the highest
levels.
 Disagreement – As George Patton said, “If everyone is thinking
alike, someone isn’t thinking.”
 Expertise – Agencies and clients both need to recognize the
strengths that each party brings. At times, we all need to defer to expertise
that is not our own.
 Expectations – Both parties need a mutual understanding. Take the
time. Sit down with each other. Define mutual expectations. Define mutual
166
desires. A little planning and time spent is all it takes to lay the groundwork
for future success.
 Mistakes and Risks – It’s OK to make mistakes and take risks. No
one is perfect, and we shouldn’t pretend to be.
 Research – Use, don’t misuse research. And never do what David
Ogilvy alludes to: “Most people use research in the same way a drunk
uses a lamp post: for support rather than illumination.”
 Fun – Have fun with each other. Advertising should be fun. Take
time to make it enjoyable.
 Discomfort – Be willing to scare yourself a little with ideas. Author
Peter McWilliams said it well: “Comfort zones are most often expanded
through discomfort.”
 Apply the Golden Rule – Treat each other like you want to be
treated. If you can’t or won’t, start planning for a new partner.
______________________________________________________________
Self check Question
1. ______________ – As George Patton said, “If everyone is thinking
alike, someone isn’t thinking.”
2. Expectations – Both parties need a mutual understanding
____________________________________________________________
3.3 Assignments
1. Collect the samples of various ATL and BTL techniques.
a. Client Agency
3.4 Summing Up
Both parties need a mutual understanding. Take the time. Sit down with
each other. Define mutual expectations. Define mutual desires. A little
planning and time spent is all it takes to lay the groundwork for future
success.
167
1. Disagreement
2. Expectations
1. What are the different aspects of advertiser opting Advertisement

agency ? Explain.
3.7 References


2. Pitch
3. Brand Reporter
3.9 Keywords
 Trust – If you don’t trust your agency or client, your partnership will not
work in the long run. Trust is critical.
168
___________________________________________________________________
__________________________________________________________________
STRUCTURE
4.0 Objectives
4.1 Introduction
4.2 Criteria for Choosing Ad Agency
4.3 Assignments
4.4 Summing Up
4.7 References
4.9 Keywords
169
______________________________________________________________________
In the last lesson we had discussed Ad agency & its relation with
advertiser and with client .In present lesson, we shall study about the
criteria of selecting an ad agency
4.0 Objectives

o Describe Criteria to select an ad agency
4.1 Introduction
Most advertisers assign this job of informing the target audience and
creating images to advertising agencies. Thus, the advertising agencies
plan, prepare and place ads in the media. But even an advertiser can do
all these things. The management can do planning of ad campaigns. For
preparing ads, creative personal can be hires. And the advertiser for
placing the ads can buy media space or time.
4.2 Criteria for Choosing Ad Agency
Following are some points to be taken in account while selecting the

advertising agency:
1. Suitability: The advertising agency which suits the requirement of

manufacturer or trader is selected depending upon the type of
advertisement, location of agency, credit policies, etc. Normally, an
agency which is located near the advertisers place is selected. This helps
in approaching the agency. Secondly, the size of agency in terms of
personnel, projects, and services provided is considered. Thirdly, the
connections and relations with the various media. Fourthly, the policies
like conservative policy, outgoing policies etc. are taken into account.
Finally, the advertising also considers whether the agency has competitors
account or not.
170
2. Facilities and Services Provided: Some agencies have modern facilities

of photography, typesetting, printing, filming etc. The agencies which
provide maximum services with minimum costing preferred.
3. Imagination: Imaginations and creative skills of the personnel of agency

is duly considered. Creativity in photography, layout, copy writing, media
etc. creates an identity and unique for the products and services of the
advertiser.
4. Past Record: Past records of the agency in terms of number of clients,

effectiveness, credit reputation etc. helps in selecting the agency. The
advertiser enquires about the agency’s timelines, punctuality, past record
helps to show whether the agency is reliable or not.
5. Reputation : The reputation of the advertising agency helps in selection.

The popularity of the agency depends upon timelines, successful
presentation, good relations, prompt services etc.
6. Management: Proper selection of advertising agency depends on the

ownership and management and their policies. Their policies may be
either conservative or dynamic which influence the selection.
7. Rates Charged: The advertiser considers the rates charged by the

agency. Normally, the rates depend on reputation, facilities provided
techniques adopted etc. Therefore, an advertiser will select such agency
which will provide facility according to his requirement and which suits its
budget.
8. Size of the Agency : The size of the advertising agency must be

considered. The larger the size, the more it is preferred, however, at
times, small is beautiful because a small agency may give more attention
to its clients work
171
______________________________________________________________
Self Check Question
1. Imaginations and _____________of the personnel of agency is duly

considered.
2. The advertiser enquires about the agency’s

_____________________________helps to show whether the agency
is reliable or not.
___________________________________________________________
4.3 Assignments
1. Collect the list of Ad agencies with their contact details in India
a. Agency management
b. Reputation
4.4 Summing Up
The reputation of the advertising agency helps in selection. The

popularity of the agency depends upon timelines, successful
presentation, good relations, prompt services etc.
1. creative skills
2. timelines, punctuality, past record
1. What are the basic criteria for selecting an advertising agency for an
organization? Explain with suitable examples.
172
4.7 References

2. Jethwaney, Jaishri, Advertising, Phoenix Publishing House Pvt.
Delhi

2. Pitch
3. Brand Reporter
4.9 Keywords
The size of agency in terms of personnel, projects, and services provided

is considered.
173

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BJMC 204 Unit 1 Lesson 1

Lesson 1 Definition & Meaning of Advertising

Lesson 2 Role and functions of Advertising

Lesson 3 Nature & Scope of Advertising

Lesson 4 Growth & Development of Advertising in India & World

Lesson 5 Global Scenario of Advertising

Lesson 6 Ethical & Regulatory Aspects of Advertising

Lesson 1 Definition & Meaning of Advertising

1.2 Definition of Advertising

1.3 Nature of Advertising

1.4 Uses of Advertising

1.5 Types of Advertisements

1.6.1 Class assignment

1.6.2 Home assignment

1.8 Possible answers to self check questions

1.9 Terminal Questions

1.11 Suggested Further Readings

Lesson 1 Definition & Meaning of Advertising

In unit 1 we shall discuss Advertising meaning, development, growth in

After going through this lesson you will be able to:

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

According to American Marketing Association (AMA) advertising is “any

Advertising is a single component of the marketing process. It involves

It involves the process of developing strategies such as ad placement,

1.3 Nature of Advertising

Used by many types of organizations including educational institutes,

In advertising we need to consider the following issues:

 Does the product possess unique, important features to focus

 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 favourable?

 Is the organization able and willing to spend the required money

1.4 Uses of Advertising

1. Promoting Products or Organizations

Institutional Advertising promotes organizations, images, ideas or

Advertising promotes goods and services.

2. Stimulating Primary and Selective Demand

First to introduce product needs to stimulate primary demand. Pioneer

For Selective demand, advertisers use Competitive advertising, brand

3. Offsetting Competitors Advertising

It is a defensive advertising technique used to offset the effect of

4. Making salespersons more effective

Tries to pre-sell product to buyers by informing them of uses, features

5. Increasing use of product

Consumer can consume only so much of a product, this limits absolute

6. Reminding and reinforcing customers

Reminder, need to keep company/product name at the forefront of

7. Reducing Sales fluctuations

Increase sales during slow periods will help increase production

1.5 Types of Advertisements

The types of advertisements are distinguished by the content and

1. Product Advertising presents information and/or persuasive

2. Pioneer Advertising consists of messages about a product class

3. Competitive Advertising consists of brand-oriented messages

4. Comparative Advertising makes direct comparisons between the

5. Institutional Advertising seeks to enhance the overall image of

6. Trade Advertising consists of messages directed at resellers that

7. Cooperative Advertising occurs when the costs of an advertising

Self Check Question

1. ______________consists of brand-oriented messages designed to

2. _______________messages directed at resellers that appeared in

3. _______________seeks to enhance the overall image of and build