Chapter: Advertising Creativity: Planning, Strategy and Development

1. Advertising Creativity:

Creativity is probably one of the most commonly used terms in advertising. Ads are often
called creative. The people who develop ads and commercials are known as creative types.
And advertising agencies develop reputations for their creativity. The relationship between
creativity and advertising is long, rich and textured. Creativity is considered to be an
important determinant of advertising effectiveness and advertising textbooks normally devote
one or two chapters to creative strategy and tactics. Creativity is probably the most common
uttered word in advertising. Ads are often called creative. The people who develop ads and
commercials are known as creative types. “It is the ability to generate fresh, unique and
appropriate ideas that can be used as solutions to communications problems. To be
appropriate and effective a creative idea must be relevant to the target audience.”

2. Planning for Creative Strategy:

For planning creative strategy some steps should be followed:

1) The Creative Challenge: Those who work in the creative side of advertising often face
a real challenge. They must take all the research creative briefs, strategy statements,
communication objectives, and other inputs and transforms them into an advertising
message. Their job is to write copy, design layouts and illustration, or produce
commercials that effectively communicate the central theme on which the campaign is
based.

The job of the creative team is challenging because every marketing situation is
different and each campaign or advertisement may require a different creative approach.
Numerous guidelines have been development for creating effective advertising, but there
is no magic formula.

2) Taking Creative Risks: Many creative people follow proven formulas when creating
advertisements because they are safe. Clients often feel uncomfortable with advertising
that is too different. Many creative people say it is important for clients to take some risks
if they want break through advertising that gets noticed. One agency that has been for its
excellent creative work for companies such as Nike, Microsoft, and ESPN. The agency’s
founders believe a key element in its success has been retrenching (economize) and
becoming some conservative.

3) Creative Personnel: The image of the creative advertising person perpetuated (keep up)
in novels, movies, TV shows is often one of a freewheeling, free thinks and eccentric
personality. The educational background of creative personnel is often non- business area
such as art, literature, music, humanities, or journalism, so their interests and perspectives
tend to differ from those of managers with a business education or background. Creative
 people tend to be more abstract and less structured, organized or conventional in their
approach to a problem, relying on intuition more often than logic

3. The Creative Process:

Some advertising people say creativity in advertising is best viewed as a process and creative
success is most likely when some organized approach is followed. This doesn’t mean there is an
infallible blueprint to follow to create effective advertising; as we saw earlier, many advertising
people reject attempts to standardize creativity or advertising.
Young’s model of the creative process contains five steps:
Immersion: Gathering raw materials and information through background research and
immersing yourself in the problem.

 Digestion: Taking the information, working it over and wrestling with it in the mind.
 Incubation (gradual development): Putting the problems out of your conscious mind and
turning the information over to the subconscious to do the work.
Illumination: The birth of an idea-the “Eureka! I have it” phenomenon.
 Reality or Verification: Studying the idea to see if it still looks god or solves the problem; then
shaping the idea to practical usefulness.
Young’s process of creativity is similar to a four approach outlines much earlier by English
sociologist Graham Wallas:
Preparation: Gathering background information needed to solve the problem through research
and study.
Incubation: Getting away and letting ideas to develop.
 Illumination: Seeing the light or solution.
Verification: Refining and polishing the idea and seeing if it is an approach solution.
These models do not say much about how this information will be synthesized and used by the
creative specialist because this part of the process is unique to the individual. In many ways, it’s
what sets apart the great creative mind and strategies in advertising.

4. Universal Advertising Standards:

D’Arey Masius Benton & Bowles agency development to guide us creative efforts and help
achieve superior creativity consistently. The agency views a creative advertising message as one
that is built around a creative core or power idea and uses excellent design and execution to
communicate information that interests the target audience. It has used these principles in doing
outstanding creative work for Procter & Gamble’s Charmin and Pampers brands, Noreleo, and
many other popular brands for many years.
D’Arey, Masius Bentoan & Bowels universal advertising standards:

I. Does this advertising position the product simply and with unmistaken clarity?
-The target audience for the advertised product or service must be able to see and sense in
a flash what the product is for, whom it is for, and why they should be interested in it.

II. Does this advertising bolt the brand to a clinching benefit?

-Advertisement should be built on the most compelling and persuasive consumer benefit.

III. Does this advertising contain a power idea?

-The power idea is the vehicle that transforms the strategy into a dynamic, creative
communications concept. It is the core creative idea that sets the stage for brilliant
executions to come.

IV. Does this advertising design in Brand Personality?

-This is something beyond merely identifying what the brand does for the consumer; all
brand do something, but the great brands also are something.

V. Is this advertising unexpected?

- We must dare to be different, because sameness is suicide. We can’t be
outstanding unless we first standout. It is needed because our clients pay good
money to wind up with advertising that looks and sounds like everybody else in
the category.

VI. Is this advertising single-minded?

-The advertising should be all about one big thing. If we can determine the right things to
say and create a way to say uncommonly well why we waste our time to say anything
else.

VII. Does this advertising reward the prospect?

-We should give our audience something that makes easy, pleasurable for our message to
penetrate for a tear, a smile, a laugh. We have to create an emotional stimulus that put
special something that makes audience want to see the advertising again and again.

VIII. Is this advertising visually arresting?

-Everybody remember great advertising. It play back in our mind, compel, rivet, nourish
feast for the eyes.

IX. Does this advertising exhibit painstaking craftsmanship?

-Writing should be really written, visual should be really designed, music that must be
really composed even lighting, casting, wardrobe, direction- all the component s of the art
of advertising are every bit as important as the science of it.
 Chapter: Advertising Industry in Bangladesh

1. The Structure of the industry (Eita te porar moto kichui nai. Faltu ekta question eita. Just
reading diye gele you can answer this question):
There was very little advertising practice in Bangladesh before independence. Due to inadequate
industrialisation, demand for specialised advertising agencies was very limited. Pioneers in the
field such as Bitopi, East Asiatic (now Asiatic), and Interspan entered the market almost
simultaneously in the year 1967. Their clientele comprised multinational companies like Lever
Brothers Ltd., which had started to increase the range of their products. Other advertising
companies started operating after independence.
There is no formal way of tracking of advertising agencies in the country. According to formal
media sources, a total of 150 agencies are registered with Bangladesh Television, while the
number exceeds 500 when both the formal and informal sectors are considered. However, more
than 70% of the formal market share is held by the top nine advertising agencies of the country.
These agencies, in descending order of market share, are Adcomm, Asiatic, Bitopi, Unitrend, Grey,
Interspeed, Popular, Madona, and Matra. Other advertising agencies claim only about 13% of the
market share, while the rest is accrued to in-house advertisement of business firms and
enterprises.
Advertisement media in Bangladesh can be classified into two categories based on the placement
strategy - Above the Line (ATL) category and Below the Line (BTL) category, each claiming about
50% of the total revenue. ATL includes newspapers, magazines, radio, television, and satellite and
cable television. Placement strategies under BTL includes event management, in-house
advertisement (company performing own advertisement) at point of purchase, outdoor
advertisement (billboards, hoarding, neon signs, and bell signs), innovative activities (jatra, street
drama) and advertisement on vehicle bodies or fliers. The market size of the formal advertising
agencies accounted for about Tk 2 billion in 1999, while, in-house and outdoor advertisements by
manufacturing or service providing companies and the informal agencies (non-registered
agencies and individuals) accounted for about another Tk 1 billion.

The tariff structure of advertisement varies depending upon the type of media and the time or
space used. A 30-seconds advertisement on Bangladesh Television is charged Tk 9,450 at peak
hours (7 PM till the end of day's transmission) and the amount increases by surcharge (50% for
fixed time, 70% for immediately before or after the news, 80% for mid-breaks in films and 100%
for mid-break in news). Rates are almost half during transmission hours before 7 PM. The
commercial time allowed to a sponsor in a 60-minute programme is up to 180 seconds and the
rate charged per episode or programme is Tk 80,000 early time, Tk 100,000 for peak time.

Bangladesh Television offers a discount of 25% on advertisements of books and magazines not
containing any advertisement and activities of registered cultural organisations and voluntary
organisations. Guidebooks for admission tests and competitive examinations, test papers and
publishing houses do not get this discount facility. Bangladesh television however, imposes an
additional surcharge of 60% on spot and sponsored advertisement for all products, which are
produced or assembled outside the country. Rates charged by the Bangladesh Radio are much
 less: Tk 600 for each transmission of a 15-seconds advertisement from 1st to 51st time.
Bangladesh Radio charges Tk 45,000 for sponsorship of a cricket match and Tk 30,000 for that of
a football match. Advertisement tariff for newspapers varies between Tk 400 and Tk 800 per
column inch in inside pages; it is about three times higher in back pages.

The clientele of advertising agencies primarily comprise of private national companies (PNC),
multinational companies (MNC) and NON-GOVERNMENT ORGANISATIONs (NGO). The MNCs
comprise more than 60% of the media share followed by the PNCs compising 25%. The major
client of the print media is the government. The advertising business is governed by the
competition prevailing in the market; products having high competition advertise more. Also,
consumer goods hold higher portion of the advertising budget. Also evident the industries having
a very high local demand depend on advertising. Export oriented companies have gradually
started to use the expertise of the advertising industry especially in the area of brochure
development.

The legal aspect of advertising is controlled by the government through a requirement of the
media to sign contracts with advertising agencies or the advertiser for all types of advertisements.
The general terms and conditions of the contract are to conform to laws and regulations relating
to printing, publication and mass communication. The Ministry of Information is the primary
controlling authority and may decide to change all or a part of the terms and conditions of
contracts with the advertising media. Advertisements related to drugs, cigarette, and the like
requires prior permission of the Ministry of Health. Also, the government has set an ethical code
of conduct, although not adopted as a legal document, for advertising agencies and for the media.
The code urges the agencies to refrain from advertising products like alcohol, cigarette, baby food
and cereal, undergarments for men and women, and contraceptives (except birth control pills).
The media in general is expected to abide by social norms and moral value, refrain from direct
attacks on any religion, person or organization, as well as from obscenity and vulgarism, and from
using historical leaders and political leaders in advertisements.

2. Journalism And Advertising:

Apparently it seems that journalism and advertising are interrelated but the reality is different.
The two professions often collide, but they cooperate more often. In journalism the texts can be
interesting, educational, shocking, funny and simply informational but not imaginative or
challenging to get the point. But advertising face a real challenge because for understanding
advertising spot it is essential to use all acquired knowledge, experience of life and competence
of making analogies. Even the language of advertising is different from the language of journalism
because advertising is concerned with creating image for which the language is rhetoric on the
other hand journalism is concerned with the bear truth and the language is descriptive. The
journalists expressed the truth of facts, which is not fictional where as the advertisers manipulate
the truth by merging universes, fictional and non-fictional ways. For building image the advertisers
expressed the message in a fictional way, provocative way and in a different ways from actual
co te t of the essage. Jour alis gi es the photographic i age of the reality, hile
 advertising inform what happens in fictional worlds through symbolic influence and gives an
image chosen to impose a certain representation of the reality, forming more than informing the
audience. Audience do not feel really challenged when reading the paper but advertising is more
creative and challenging and it must be arresting , pleasurable because audience want to see the
advertising again and again. That is why advertisers penetrating the message with a tear, with a
smile, with a laugh.

3. Recent Trends of Advertising In Bangladesh:

a. Not only communicative but also recreational

Now the advertisements not only communicate a piece of product information but
also provide the audience with much amusement and fun. Mahfuz Ahmed, a famed
actor turned director of TV play and producer of TV ads evaluates the works of his
predecessors in this way- “Amitav Reza and Mustafa Sarwar Faruki have heralded a
distinctive dimension to the ad-clips; now the audience even enjoys the ads. They do
not seem to be merely 30-40 second ad-clips, rather resemble complete cinemas”.

b. Distinctive nuances
Many of the advertisements exhibit constructive nuances contributing to the body of
Bangladeshi advertisements. ‘Fair & Lovely’ empowers their customers with the
ability to become ‘fairness experts’ themselves.

c. Flaws and faults in advertisements

The advertisements recorded and analyzed revealed some flaws and faults. Even the
lay audience can sense them with common sense. Also, some are subjects to esoteric
interest and deep understanding of the subject. For example, ‘Globe Biscuits’ intends
to introduce a buzz ‘khaite khaite jai bela’, that is, ‘time passed on munching’.

d. A shift in sponsorship
Most of the growth in advertising has happened after Second World War. But the past
decade has witnessed a remarkable impact on advertising due to rapid strides in
technology. It is difficult to determine exactly what the coming decades in this new
century will bring, however, what looks certain is that there will be much greater
consumer involvement and control and some degree of two-way communication. With
the opening up of economies, mass marketers will continue to increase their operations
on a worldwide basis. More and more global players will increasingly adjust their
strategies to a local market; country-based or region-based; and advertising will
increasingly acquire a local color. In this regard we are already witnessing some
interesting advertising campaigns by Coca-Cola and Pepsi most of the advertisement
are sponsoring by the Multinational, Global and local reputed companies.
 Chapter: Evaluation of Broadcast Media

1. Advantages of TV advertisements:

- Creativity and impact: Perhaps the greatest advantage of TV is the opportunity it

provides for presenting the advertising message. The interaction of sight and sound
offers tremendous creative flexibility and makes possible dramatic, lifelike
representations of products and services. TV commercials can be used to convey a
mood or image for a brand as well as to develop emotional or entertaining appeals
that help make a dull product appear interesting. Television is also an excellent
medium for demonstrating a product or service.
- Coverage and cost effectiveness: Television advertising makes it possible to reach
large audiences. Nearly everyone, regardless of age, sex, income, or educational
level, watches at least some TV. Most people do so on a regular basis. Marketers
selling products and services that appeal to broad target audiences find that TV lets
them reach mass markets, often very cost efficiently. Because of its ability to reach
large audiences in a cost-efficient manner, TV is a popular medium among
companies selling mass-consumption products. Companies with widespread
distribution and availability of their products and services use TV to reach the mass
market and deliver their advertising messages at a very low cost per thousand.
Television has become indispensable to large consumer packaged-goods
companies, carmakers, and major retailers.
- Captivity and attention: Television is basically intrusive in that commercials
impose themselves on viewers as they watch their favorite programs. Unless we
make a special effort to avoid commercials, most of us are exposed to thousands of
them each year. The increase in viewing options and the penetration of VCRs,
DVDs, PVRs, remote controls, and other automatic devices have made it easier for
TV viewers to avoid commercial messages. Studies of consumers’ viewing habits
found that as much as a third of program audiences may be lost during commercial
breaks. Selectivity and flexibility: Television has often been criticized for being a
nonselective medium, since it is difficult to reach a precisely defined market
segment through the use of TV advertising. But some selectivity is possible due to
variations in the composition of audiences as a result of program content, broadcast
time, and geographic coverage. For example, Saturday morning TV caters to
children; Saturday and Sunday afternoon programs are geared to the sports-oriented
male; and weekday daytime shows appeal heavily to homemakers. With the growth
of cable TV, advertisers refine their coverage further by appealing to groups with
specific interests such as sports, news, history, the arts, or music, as well as specific
demographic groups.

2. Disadvantages of TV Advertising:
Although television is unsurpassed from a creative prospective, the medium has
several disadvantages that limit its use by many advertisers, these problems include-
- High costs: Despite the efficiency of TV in reaching large audiences, it is an
expensive medium in which to advertise. The high cost of TV stems not only from
the expense of buying airtime but also from the costs of producing a quality
commercial. Production costs for a national brand 30-second spot average over
$300,000 and can reach over a million for more elaborate commercials. The high
costs of producing and airing commercials often price small- and medium-size
advertisers out of the market.
- Lack of selectivity: Some selectivity is available in television through variations
in programs and cable TV. But advertisers who are seeking a very specific, often
small, target audience find the coverage of TV often extends beyond their market,
reducing its cost effectiveness. Geographic selectivity can be a problem for local
advertisers such as retailers, since a station bases its rates on the total market area
it reaches. Audience selectivity is improving as advertisers target certain groups of
consumers through the type of program or day and/or time when they choose to
advertise. However, TV still does not offer as much audience selectivity as radio,
magazines, newspapers, or direct mail for reaching precise segments of the market
- Fleeting nature of a television message (fleeting message) : TV commercials
usually last only 30 seconds or less and leave nothing tangible for the viewer to
examine or consider. Commercials have become shorter and shorter as the demand
for a limited amount of broadcast time has intensified and advertisers try to get
more impressions from their media budgets.
- Commercial clutter: The problems of fleeting messages and shorter commercials
are compounded by the fact that the advertiser’s message is only one of many spots
and other no programming material seen during a commercial break, so it may have
trouble being noticed. One of advertisers’ greatest concerns with TV advertising is
the potential decline in effectiveness because of such clutter. The next time you
watch TV, count the number of commercials, promotions for the news or upcoming
programs, or public service announcements that appear during a station break and
you will appreciate why clutter is a major concern.
- Limited viewer attention: When advertisers buy time on a TV program, they are
not purchasing guaranteed exposure but rather the opportunity to communicate a
message to large numbers of consumers. But there is increasing evidence that the
size of the viewing audience shrinks during a commercial break. People leave the
room to go to the bathroom or to get something to eat or drink, or they are distracted
in some other way during commercials. Getting consumers to pay attention to
commercials has become an even greater challenge in recent years. The increased
presence of VCRs and remote controls has led to the problems of zipping and
zapping. Zipping occurs when customers fast-forward through commercials as they
play back a previously recorded program. Zapping refers to changing channels to
avoid commercials.
- Distrusts of TV ads and negative advertisement: To many critics of advertising,
TV commercials personify everything that is wrong with the industry. Critics often
single out TV commercials because of their pervasiveness and the intrusive nature
 of the medium. Consumers are seen as defenseless against the barrage of TV ads,
since they cannot control the transmission of the message and what appears on their
screens. Viewers dislike TV advertising when they believe it is offensive,
uninformative, or shown too frequently or when they do not like its content.17
Studies have shown that of the various forms of advertising, distrust is generally
the highest for TV commercials.18 Also, concern has been raised about the effects
of TV advertising on specific groups, such as children or the elderly.

3. Buying Television Time:

The purchasing of TV advertising time is a highly specialized phase of the advertising
business, particularly for large companies spending huge sums of money. Large advertisers
that do a lot of TV advertising generally use agency media specialists or specialized media
buying services to arrange the media schedule and purchase TV time. Decisions have to be
made regarding national or network versus local or spot purchase, selection of specific
stations, sponsorship versus participation, different classes of time and appropriate
programs. Local advertisers may not have to deal with the first decision, but they do face
all the others.

Methods of Buying Time

In addition to deciding whether to use network versus spot advertising, advertisers must
decide whether to sponsor an entire program, participate in a program, or use spot
announcements between programs. Sponsorship of a program and participations.

Developing there available on either a network or a local market basis, whereas spot
announcements are available only from local stations.
Sponsorship: Under a sponsorship arrangement, an advertiser assumes responsibility for
the production and usually the content of the program as well as the advertising that appears
within it. In the early days of TV, most programs were produced and sponsored by
corporations and were identified by their name, for example, Texaco Star Theater and The
Colgate Comedy Hour. Today most shows are produced by either the networks or
independent production companies that sell them to a network. A company might choose
to sponsor a program for several reasons. Sponsorship allows the firm to capitalize on the
prestige of a high-quality program, enhancing the image of the company and its products.
Another reason is that the sponsor has control over the number, placement, and content of
its commercials. Commercials can be of any length as long as the total amount of
commercial time does not exceed network or station regulations. Advertisers introducing
a new product line often sponsor a program and run commercials that are several minutes
long to introduce and explain the product.
Participations: Most advertisers either cannot afford the costs of sponsorship or want
greater flexibility than sole sponsorship permits. Nearly 90 percent of network advertising
time is sold as participations, with several advertisers buying commercial time or spots on
a particular program. An advertiser can participate in a certain program once or several
times on a regular or irregular basis. Participating advertisers have no financial
responsibility for production of the program; this is assumed by the network or individual
station that sells and controls the commercial time. There are several advantages to
participations. First, the advertiser has no long term commitment to a program, and
expenditures can be adjusted to buy whatever number of participation spots fits within the
budget. This is particularly important to small advertisers with a limited budget. The second
advantage is that the TV budget can be spread over a number of programs, thereby
providing for greater reach in the media schedule. The disadvantage of participations is
that the advertiser has little control over the placement of ads, and there may also be
problems with availability. Preference is given to advertisers willing to commit to
numerous spots, and the firm trying to buy single spots in more than one program may find
that time is unavailable in certain shows, especially during prime time.
Spot Announcements: As discussed earlier, spot announcements are bought from the local
stations and generally appear during time periods adjacent to network programs (hence the
term adjacencies), rather than within them. Spot announcements are most often used by
purely local advertisers but are also bought by companies with no network schedule
(because of spotty or limited distribution) and by large advertisers that use both network
and spot advertising.
 Chapter: Evaluation of Print Media

1. Advantages (Newspapers):

Newspapers have a number of characteristics that make them popular among both local
and national advertisers. These include their extensive penetration of local markets,
flexibility, geographic selectivity, reader involvement, and special services.

Extensive Penetration: One of the primary advantages of newspapers is the high degree
of market coverage, or penetration, they offer an advertiser. In most areas, 50 percent or
more of households read a daily newspaper, and the reach figure may exceed 70 percent
among households with higher incomes and education levels. The extensive penetration of
newspapers makes them a truly mass medium and provides advertisers with an excellent
opportunity for reaching all segments of the population with their message. Also, since
many newspapers are published and read daily, the advertiser can build a high level of
frequency into the media schedule.
Flexibility: Another advantage of newspapers is the flexibility they offer advertisers. First,
they are flexible in terms of requirements for producing and running the ads. Newspaper
ads can be written, laid out, and prepared in a matter of hours. For most dailies, the closing
time by which the ad must be received is usually only 24 hours before publication (although
closing dates for special ads, such as those using color, and Sunday supplements are
longer). The short production time and closing dates make newspapers an excellent
medium for responding to current events or presenting timely information to consumers.
Geographic Selectivity: Newspapers generally offer advertisers more geographic or
territorial selectivity than any other medium except direct mail. Advertisers can vary their
coverage by choosing a paper—or combination of papers—that reaches the areas with the
greatest sales potential. National advertisers take advantage of the geographic selectivity
of newspapers to concentrate their advertising in specific areas they can’t reach with other
media or to take advantage of strong sales potential in a particular area.

Reader Involvement and Acceptance: Another important feature of newspapers is

consumers’ level of acceptance and involvement with papers and the ads they contain. The
typical daily newspaper reader spends time each day reading the weekday newspaper and
even more time reading the Sunday paper. Most consumers rely heavily on newspapers not
only for news, information, and entertainment but also for assistance with consumption
decisions.

Services offered: The special services newspapers offer can be valuable to advertisers. For
example, many newspapers offer merchandising services and programs to manufacturers
that make the trade aware of ads being run for the company’s product and help convince
local retailers they should stock, display, and promote the item. Many newspapers are also
excellent sources of local market information through their knowledge of market
conditions and research like readership studies and consumer surveys. Newspapers can also
assist small companies through free copywriting and art services. Small advertisers without
an agency or advertising department often rely on the newspaper to help them write and
produce their ads.

Advantages (Magazine):

Magazines have a number of characteristics that make them attractive as an advertising

medium. Strengths of magazines include their selectivity, excellent reproduction quality,
creative flexibility, permanence, prestige, readers’ high receptivity and involvement, and
services they offer to advertisers.
Selectivity: One of the main advantages of using magazines as an advertising medium is
their selectivity, or ability to reach a specific target audience. Magazines are the most
selective of all media except direct mail. Most magazines are published for special-interest
groups. The thousands of magazines published in the United States reach all types of
consumers and businesses and allow advertisers to target their advertising to segments of
the population who buy their products.
Reproduction Quality: One of the most valued attributes of magazine advertising is the
reproduction quality of the ads. Magazines are generally printed on high-quality paper
stock and use printing processes that provide excellent reproduction in black and white or
color. Since magazines are a visual medium where illustrations are often a dominant part
of an ad, this is a very important property. The reproduction quality of most magazines is
far superior to that offered by the other major print medium of newspapers, particularly
when color is needed. The use of color has become a virtual necessity in most product
categories, and more than two-thirds of all magazine ads now use color.
Creative Flexibility: In addition to their excellent reproduction capabilities, magazines
also offer advertisers a great deal of flexibility in terms of the type, size, and placement of
the advertising material. Some magazines offer (often at extra charge) a variety of special
options that can enhance the creative appeal of the ad and increase attention and readership.
Examples include gatefolds, bleed pages, inserts, and creative space buys.
Permanence: Another distinctive advantage offered by magazines is their long life span.
TV and radio are characterized by fleeting messages that have a very short life span;
newspapers are generally discarded soon after being read. Magazines, however, are
generally read over several days and are often kept for reference. They are retained in the
home longer than any other medium and are generally referred to on several occasions. A
study of magazine audiences found that readers devote nearly an hour over a period of two
or three days to reading an average magazine.6 Studies have also found that nearly 75
percent of consumers retain magazines for future reference.
Prestige: Another positive feature of magazine advertising is the prestige the product or
service may gain from advertising in publications with a favorable image. Companies
whose products rely heavily on perceived quality, reputation, and/or image often buy space
 in prestigious publications with high-quality editorial content whose consumers have a high
level of interest in the advertising pages.
Consumer Receptivity and Involvement: With the exception of newspapers, consumers
are more receptive to advertising in magazines than in any other medium. Magazines are
generally purchased because the information they contain interests the reader, and ads
provide additional information that may be of value in making a purchase decision.
Services A final advantage of magazines is the special services some publications offer
advertisers. Some magazines have merchandising staffs that call on trade intermediaries
like retailers to let them know a product is being advertised in their publication and to
encourage them to display or promote the item. Another service offered by magazines
(usually the larger ones) is research studies that they conduct on consumers. These studies
may deal with general consumer trends, changing purchase patterns, and media usage or
may be relevant to a specific product or industry.

2. Disadvantages (Newspaper):

Poor Reproduction: One of the greatest limitations of newspapers as an advertising medium is

their poor reproduction quality. The coarse paper stock used for newspapers, the absence of color,
and the lack of time papers have available to achieve high-quality reproduction limits the quality
of most newspaper ads. Newspapers have improved their reproduction quality in recent years, and
color reproduction has become more available. Also, advertisers desiring high-quality color in
newspaper ads can turn to such alternatives as freestanding inserts or Sunday supplements.

Short Life Span: Unlike magazines, which may be retained around the house for several weeks, a
daily newspaper is generally kept less than a day. So an ad is unlikely to have any impact beyond
the day of publication, and repeat exposure is very unlikely. Compounding this problem are the
short amount of time many consumers spend with the newspaper and the possibility they may not
even open certain sections of the paper.

Lack of Selectivity: While newspapers can offer advertisers geographic selectivity, they are not a
selective medium in terms of demographics or lifestyle characteristics. Most newspapers reach
broad and very diverse groups of consumers, which makes it difficult for marketers to focus on
narrowly defined market segments.

Clutter: Newspapers, like most other advertising media, suffer from clutter. Because 64 percent of
the average daily newspaper in the United States is devoted to advertising, the advertiser’s message
must compete with numerous other ads for consumers’ attention and interest. Moreover, the
creative options in newspapers are limited by the fact that most ads are black and white. Thus, it
can be difficult for a newspaper advertiser to break through the clutter without using costly
measures such as large space buys or color.

Disadvantages (Magazines):
 Costs: The costs of advertising in magazines vary according to the size of the audience
they reach and their selectivity. Advertising in large mass-circulation magazines like TV
Guide, Time, or Reader’s Digest can be very expensive.

Limited Reach and Frequency: Magazines are generally not as effective as other media
in offering reach and frequency. While nearly 90 percent of adults in the United States read
one or more consumer magazines each month, the percentage of adults reading any
individual publication tends to be much smaller, so magazines have a thin penetration of
households.

Long Lead Time: Another drawback of magazines is the long lead time needed to place
an ad. Most major publications have a 30- to 90-day lead time, which means space must
be purchased and the ad must be prepared well in advance of the actual publication date.
No changes in the art or copy of the ad can be made after the closing date. This long lead
time means magazine ads cannot be as timely as other media, such as radio or newspapers,
in responding to current events or changing market conditions.

Clutter and Competition: While the problem of advertising clutter is generally discussed
in reference to the broadcast media, magazines also have this drawback. The clutter
problem for magazines is something of a paradox: The more successful a magazine
becomes, the more advertising pages it attracts, and this leads to greater clutter. In fact,
magazines generally gauge their success in terms of the number of advertising pages they
sell.

3. Components of Print advertisements:

The basic components of print ads are:

Headline -Words in the leading position of the ad

Subheads - Smaller than the headline, larger than the copy

Body copy- The main text portion of a print ad

Slogan- slogan is a brief message, crystallizing an important idea about the product or
reason for buying the product which is expressed greater length in the copy. Illustration-
Visual elements such as drawings or photos

Logo-Visual symbol of the product or brand

Layout -layout may be defined as a working drawing or blueprint for an advertisement

showing the sizes, positions and color-weigh values of the different units that make up the
completed advertisement, it is important to keep in mind that a layout is in the final analysis
directed to a selling display.
 Caption: A caption, also known as a cutline, is text that appears below an image. Most
captions draw attention to something in the image that is not obvious, such as its relevance
to the text. Captions can consist of a few words of description, or several sentences.

Color- Color was definitely grabbing worldwide attention, but it certainly wasn’t easy to
get hold of.

4. Headlines and Its Classifications:

The headline is the words in the leading position of the ad—the words that will be read
first or are positioned to draw the most attention.26 Headlines are usually set in larger type
and are often set apart from the body copy or text portion of the ad to give them
prominence. Most advertising people consider the headline the most important part of a
print ad. The headline is that phrase or part of a sentence that has been made to stand out
in the advertisement by the size or style of type in which it has been set, the prominence of
its location, or the white space surrounding it. The function of a headline is to attract the
favorable attention of prospective purchasers and interest them so that they will read the
copy.

Characteristics of Headlines:

There are four major characteristics in most good headlines: (1) brevity, (2) clarity, (3)
aptness and (4) interest.

BREVITY. A caption that is not belief and concise fails to perform its first and most
important task. Each advertisement has been prepared to attract the favorable attention and
hold the interest of the reader. This means that each advertisement – to him it may even be
an intrusion- he knows what he wants and where to find it. In his own opinion, his time is
both limited and valuable. Recognizing this picture of the competition and handicaps that
confront an advertisement, it is important that the headline be sufficiently short to read at
a glance.

CLARITY. Little advantage will be gained from the use of a headline sufficiently short to
be read at a glance if its meaning is not clear. It is important that the adviser state his
headline in a clear and concise manner so that it will appeal directly to the prospect. Unless
this is done, there is danger of a vague headline attracting attention of persons who may
not be in the market for the product, but missing those who should be reached.
APTNESS. Aptness is developed by showing that the product advertised has the particular
feature or quality that fills or satisfies the prospective purchaser’s needs or wants. Attempts
to prepare cute, clever or smart advertisements usually result in vague and irrelevant
headlines that are not appropriate. Such statements as “Why not?” or “Would you?” do not
particularly mean anything to anyone. The caption “We announce” is vague and has little
meaning, for who cares for what anyone else wishes to announce? “Look at this offer” is
entirely too vague. Tell the prospective purchaser what the offer is, entirely too vague. Tell
the prospective purchaser what the offer is, and if it is sufficiently enticing, he will stop
and read the advertisement.

INTEREST. There is perhaps no easier way to make a headline interesting than to make it
speak directly to the individual reader in a personal manner. This does not mean that one
must eliminate the necessary dignity that an advertisement should possess.

When preparing a headline, do not address the prospect like a man giving a Fourth of July
oration by saying, “Ladies and gentlemen.” The use of the word “you” usually will help
make the headline personal. An interesting headline is a sincere and personal message
prepared for an average prospect.

There are several things that may nullify a prospect’s interest in an otherwise interesting
headline-seeming exaggeration, insincere or misleading statement, and antagonism.
Whether the caption should be a declaration, question, command or a part of an unfinished
sentence in the form of a phrase will depend entirely on the objectives of the specific
advertisement.
 Chapter: Sales Promotion

1. Definition of Sales Promotion:

According to American Marketing Association “ Those marketing activities other than

personal selling advertising and publicity that stimulate consumer purchasing and dealer
effectiveness such as display shows and exhibitions, demonstrations and various non-
recurrent selling efforts not in the ordinary routine.” W.J. Stanton defines sales promotion
as all those activities other than advertising, personal selling, public relations and publicity
that are intended to stimulate customer demand and improve the marketing performance of
sellers.

2. Growth Of Sales Promotion:

The basic objectives of sales promotion are:

i. To introduce new products

To induce buyers to purchase a new product, free samples may be distributed or money
and merchandise allowance may be offered to business to stock and sell the product.

ii. To attract new customers

New customers may be attracted through issue of free samples, premiums, contests and
similar devices.

iii. To induce present customers to buy more

Present customers may be induced to buy more by knowing more about a product, its
ingredients and uses.

iv. To help firm remain competitive

Sales promotions may be undertaken to meet competition from a firm.

v. To increase sales in off season

Buyers may be encouraged to use the product in off seasons by showing them the variety
of uses of the product.

vi. To increase the inventories of business buyers

Retailers may be induced to keep in stock more units of a product so that more sales can
be effected.
3. Customer Oriented Sales Promotion:

The main consumer promotion tools include samples, coupons, cash refund offers, price
packs, premiums, prizes, patronage rewards, free trials, product warranties, tie-ins, and
point of purchase displays and demonstrations.

Samples

Samples are offers of a free amount or trial of a product to consumers. The sample might
be delivered door to door sent in the mail, picked up in a store, found attached to another
product or featured in an advertising offer. Sampling is the most effective and most
expensive way to introduce a new product.

Coupons

Coupons are certificates entitling the bearer to a stated saving on the purchase of a
specific product. Coupons can be mailed, enclosed in or on other products or inserted in
magazine and newspaper advertisements. Coupons can be effective in stimulating sales of
a mature brand and inducing early trial of a new brand.

Cash Refund Offers or Rebates

These are like coupons except that the price reduction occurs after the purchase rather
than at the retail shop. The consumer sends a specified “proof of purchase” to the
manufacturer, who in turn ‘refunds’ part of the purchase price by mail. Cash refunds have
been used for major products such as automobiles as well as for packaged goods.

Price Packs

These are offers to consumers of savings off the regular price of a product, flagged on the
label or package. They may take the form or a reduced-price pack which is single
packages sold at a reduced price (such as two for the price of one) or a banded pack,
which is two related products banded together (such as a tooth brush and tooth paste).
Price packs are very effective in stimulating short term sales, even more than coupons.

Premiums or Gifts

These are merchandise offered at a relatively low cost or free as an incentive to purchase
a particular product. Sometimes the package itself, is a reusable container may serve as a
premium. A self-liquidating premium is an item sold below its normal retail price to
consumers who request it.

Prizes

These are offers of the chance to win cash, trips or merchandise as a result of purchasing
something. Pepsi-cola offered the chance to win cash by matching numbers under the
bottle cap with numbers announced on television. Sometimes the prize is a person,
offering the winner either cash or dinner with actor Sharuk Khan.

Patronage Awards

These are values in cash or in other forms that are proportional to one’s patronage of a
certain vendor or group of vendors. Most airlines offer “frequent flyer plans” providing
points for miles traveled that can be turned in for free airline trips. Cooperatives pay their
members dividends according to their annual patronage. Le Meridian adopted an
“honoured guest” plan that awards points for users of their hotels.

Free Trials

Free trails consist of inviting prospective purchasers to try the product without cost in the
hope that they will buy the product. Thus, often we see, auto dealers encourage free test
drives to stimulate purchase interest.

Product Warranties

These are an important tool, especially as consumers become more quality sensitive.
When My TVS offered a two year car warranty, substantially longer than other
competitors’ customers took notice. They inferred that My TVS quality must be good or
else the company would be in deep trouble. Companies must carefully estimate the sales-
generating value against the potential costs of any proposed warranty programme.

Tie-in Promotions

These are becoming increasingly popular. In a tie in promotion two or more brands or
companies team up on coupons, refunds and contests to increase their pulling power.
Companies pool funds with the hope of broader exposure, while several sales forces push
these promotions to retailers, giving them a better shot at extra display and ad space.

Point-of-Purchase Displays

These take place at the point of purchase or sale. Display of visible mark or product at the
entrance of the store is an example. Unfortunately many retailers do not like to handle the
hundreds of displays, signs and posters they receive from manufacturers. Hindustan
Lever often use this tool to promote its products in the retail market.

Product Demonstrations

Products are being shown in action. Consumers can visit the store and see the usage of
product in live action so that doubts of the consumers can be clarified in the store itself.
When a new product is introduced in the market, the sales promotional tool is often used.
For example ultra modern grinder mixie being used by the company to demonstrate its
speciality than the other product.
 Chapter: Public Relations

1. Definition of PR:

The Foundation for Public Relations Research and Education define as “Public relations is a
distinctive management function which helps establish and maintain mutual lines of
communications, understanding, acceptance, and cooperation between an organization and its
publics; involves the management of problems or issues; helps management keep informed on
and responsive to public opinion; defines and emphasizes the responsibility of management to
serve the public interest; helps management keep abreast of and effectively utilize change, serves
as an early warning system to help anticipate trends; and uses research and sound and ethical
communication techniques as its principle tools.”

J. E. Grunig and T. Hunt (1984) wrote: “Public relations are the management of communication
between an organization and its publics.”

The Public Relations Society of America (PRSA) claimed: "Public relations helps an
organization and its publics adapt mutually to each other." According to the PRSA, the essential
functions of public relations include research, planning, communications dialogue and
evaluation(Wikipedia). Today, "Public Relations is a set of management, supervisory, and
technical functions that foster an organization's ability to strategically listen to, appreciate, and
respond to those persons whose mutually beneficial relationships with the organization are
necessary if it is to achieve its missions and values."
2. Difference between PR and Advertising:

3. Public Relation Tools:

PR professional may use the following tools:

Publications: Companies rely extensively on published materials to reach and influence

target markets, including annual reports, brochures, articles, printed and on-line
newsletters and magazines, and audiovisual materials.

Events: Companies can draw attention to new products or other company activities by
arranging special events like news conferences, on-line chats, seminars, exhibits, contests
and competitions, and sport and cultural sponsorships that will reach the target publics.
News: One of the major tasks of PR professionals is to find or create favorable news
about the company, its products, and its people. The next step—getting the media to
accept press releases and attend press conferences—calls for marketing and interpersonal
skills.

Speeches: Speeches are another tool for creating product and company publicity and
building the company’s image.

Public-Service Activities: Companies can build goodwill by contributing money and time
to good causes.

Identity Media: To attract attention and spark recognition, the firm’s visual identity is
carried by its logos, stationery, brochures, signs, business forms, business cards, Web
site, buildings, uniforms, and dress codes.

Lobbying: dealing with legislators and government officials to promote or defeat

legislation and regulation;

Counseling: Advising management about public issues and company positions and
image— and advising in the event of a mishap
 Chapter: Personal Selling

1. Definition of Personal Selling:

Personal selling refers to the presentation of goods before the potential buyers and
persuading them to purchase it. It involves face-to-face interaction and physical
verification of the goods to be purchased. The objective is not only just to sell the product
to a person but also to make him/her a permanent customer.

2. Importance of Personal Selling:

Personal Selling is extremely important as it helps in increasing sales. But there are other
features as well which make it important. Let us discuss the importance of personal selling from
the point of view of manufactures as well as consumers.

From manufacturer’s point of view

i. It creates demand for products both new as well as existing ones.

ii. It creates new customers and, thus help in expanding the market for the product.

iii. It leads to product improvement. While selling personally the seller gets acquainted with the
choice and demands of customers and makes suggestions accordingly to the manufacturer.

From customer’s point of view

i. Personal selling provides an opportunity to the consumers to know about new products
introduced in the market. Thus, it informs and educates the consumers about new products.

ii. It is because of personal selling that customers come to know about the use of new products in
the market. The sellers demonstrate the product before the prospective buyers and explain the
use and utility of the products.

iii. Personal selling also guides customers in selecting goods best suited to their requirements and
tastes as it involves face-to-face communication.

iv. Personal selling gives an opportunity to the customers to put forward their complaints and
difficulties in using the product and get the solution immediately.
 Chapter: Direct Marketing

1. Definition of Direct Marketing:

Direct marketing is the total of activities by which the seller, in effecting the exchange of goods
and services with the buyer, directs efforts to a target audience using one or more media (direct
selling, direct mail, telemarketing, direct-action advertising, catalogue selling, cable TV selling,
etc.) for the purpose of soliciting a response by phone, mail or personal visit from a prospect or
customer.

2. Role Of Direct Marketing In IMC:

Direct marketing activities support and are supported by other elements of the
promotional mix.

 Combining direct marketing with advertising—Direct marketing is in itself a form

of advertising. Whether through mail, print, or TV, the direct-response offer is an
ad. Sometimes the ad supports the direct selling effort (i.e. Victoria Secret runs

 Combining direct marketing with public relations—Private companies may use

image ads to support its store and catalog sales.)

telemarketing activities to solicit funds for charities or cosponsor charities that use
these and other direct response techniques to solicit funds.
 Combining direct marketing with personal selling—Nonprofit organizations often
use telemarketing to solicit funds.
 Combining direct marketing with sales promotions—For example, airlines send
out mailers announcing promotional airfares.

3. Direct Marketing Media:

A number of direct response media are available to the marketer including:

- Direct mail— Direct mail is not restricted to small companies seeking our business. Direct
mail is often called “junk mail”—the unsolicited mail you receive. More advertising dollars
continue to be spent in direct mail. Keys to the success of direct mail are the mailing list
and the ability to segment markets.
- Catalogues—Catalogue sales are expected to grow significantly. Many companies use
catalogs in conjunction with their more traditional sales and promotional strategies. For
example, companies like Pottery Barn, Nordstrom, and JC Penney sell directly through
catalogs but also use them to inform consumers of product offerings available in the stores.
- Broadcast media—Two broadcast media are available to direct marketers: TV and radio.
The majority of direct marketing broadcast advertising now occurs on TV which receives
the bulk of our attention in the text Two broadcast media are available to direct marketers:
television and radio. While radio was used quite extensively in the 1950s, its use and
effectiveness have dwindled substantially in recent years. Thus, the majority of direct-
 marketing broadcast advertising now occurs on TV, which receives the bulk of our
attention here. It should be pointed out, however, that the two-step approach is still very
common on the radio, particularly with local companies. Direct marketing in the broadcast
industry involves both direct-response advertising and support advertising. In direct-
response advertising, the product or service is offered and a sales response is solicited,
through either the one- or two-step approach previously discussed. Examples include ads
for magazine subscriptions, CDs and tapes, and tips on football or basketball betting. Toll-
free phone numbers are included so that the receiver can immediately call to order. Support
advertising is designed to do exactly that—support other forms of advertising. Ads for
Publishers Clearing House or Reader’s Digest or other companies telling you to look in
your mailbox for a sweepstakes entry are examples of support advertising.
- Infomercials—The lower cost of commercials on cable and satellite channels has led
advertisers to a new form of advertising. An infomercial is a long commercial that ranges
from 30 to 60 minutes. Many infomercials are produced by the advertisers and are designed
to be viewed as regular TV shows.
- TV Advertorials – Some companies use short films to promote the sale of their products.
In addition, the auto company developed advertorials for its website, with each advertorial
targeted to different target audiences.
- Teleshopping— The development of toll-free telephone numbers, combined with the
widespread use of credit cards, has led to a dramatic increase in the number of people who
shop via their TV sets. Jewelry, kitchenware, fitness products, insurance, compact discs,
and a variety of items are now promoted (and sold) this way.
- Print media—Magazines and newspapers are difficult media to use for direct marketing.
Because these ads have to compete with the clutter of other ads and because the space is
relatively expensive, response rates and profits may be lower than in other media. You can
find many more in specific interest areas like financial newspapers or sports, sex, or hobby
magazines.
- Telemarketing— If you have a telephone, you probably do not have to be told about the
rapid increase in the use of telemarketing, or sales by telephone. Both profit and charitable
organizations have employed this medium effectively in both one- and two-step
approaches. Consumer and business-to-business telemarketing sales exceeded $16 billion
in 2000 of which $7 billion represented dales to consumers.
- Electronic teleshopping— Unlike infomercials and home shopping channels, which have
relied on broadcast or cable TV, electronic teleshopping is an online shopping and
information retrieval service accessed through personal computers. While we will discuss
e-commerce in detail in the next chapter, it is important to reiterate that Internet shopping
is a direct-response medium that traditional direct marketers are adding to their businesses
as well.
- E-Mail Marketing – This is one of the fastest growing forms of direct marketing and its
estimated 2001 growth rate was 24%.

 Selective reach: Direct marketing lets the advertiser reach a large number of people and
4. Advantages of Direct Marketing:

reduces or eliminates waste coverage. Intensive coverage may be obtained through

broadcast advertising or through the mail. While not everyone drives on highways where
 there are billboards or pays attention to TV commercials, virtually everyone receives mail.
A good list allows for minimal waste, as only those consumers with the highest potential


are targeted.
Segmentation capabilities: Marketers can purchase lists of recent product purchasers, car
buyers, bank-card holders, and so on. These lists may allow segmentation on the basis of
geographic area, occupation, demographics, and job title, to mention a few. Combining this
information with the geocoding capabilities of Prizm or marketers can develop effective


segmentation strategies.
Frequency: Depending on the medium used, it may be possible to build frequency levels.
The program vehicles used for direct-response TV advertising are usually the most
inexpensive available, so the marketer can afford to purchase repeat times. Frequency may
not be so easily accomplished through the mail, since consumers may be annoyed to receive


the same mail repeatedly.
Flexibility: Direct marketing can take on a variety of creative forms. For example, the
Discovery Network sent 17-inch TV sets to media buyers through the mail. The only
message accompanying the TV sets was one on the cord that said “Plug me in” and another
on a videotape that read “Play me.” Upon doing so, the recipient was greeted with a seven-
minute promotional video. Direct-mail pieces also allow for detailed copy that provides a


great deal of information.
Timing: While many media require long-range planning and have long closing dates,
direct-response advertising can be much timelier. Direct mail, for example, can be put
together very quickly and distributed to the target population. TV programs typically used
for direct-response advertising are older, less sought programs that are likely to appear on
the station’s list of available spots. Another common strategy is to purchase available time


at the last possible moment to get the best price.
Personalization: No other advertising medium can personalize the message as well as direct
media. Parents with children at different age levels can be approached, with their child’s
name included in the appeal. Car owners are mailed letters congratulating them on their
new purchase and offering accessories. Computer purchasers are sent software
solicitations. Graduating college students receive very personalized information that


recognizes their specific needs and offers solutions (such as credit cards).
Costs: While the CPM for direct mail may be very high on an absolute and a relative basis,
its ability to specifically target the audience and eliminate waste coverage reduces the
actual CPM. The ads used on TV are often among the lowest-priced available, and a video
can be delivered for less than $1 (including postage). A second factor contributing to the cost
effectiveness of direct-response advertising is the cost per customer purchasing. Because of the low


cost of media, each sale generated is very inexpensive.
Measures of effectiveness: No other medium can measure the effectiveness of its advertising efforts
as well as direct response. Feedback is often immediate and always accurate.
5. Disadvantages of Direct Marketing:

 Image factors: As we noted earlier, the mail segment of this industry is often referred to
as junk mail. Many people believe unsolicited mail promotes junk products, and others
dislike being solicited. Even some senders of direct mail, including Motorola, GM, and
Air Products & Chemicals, say they throw out most of the junk mail they receive. This

 Accuracy: One of the advantages cited for direct mail and telemarketing was targeting
problem is particularly relevant given the increased volume of mail being sent.

potential customers specifically. But the effectiveness of these methods depends on the
accuracy of the lists used. People move, change occupations, and so on, and if the lists
are not kept current, selectivity will decrease. Computerization has greatly improved the
currency of lists and reduced the incidence of bad names; however, the ability to generate

 Content support: The ability of magazines to create mood contributes to the overall
lists is becoming a problem

effectiveness of the ads they carry. In direct-response advertising, mood creation is

limited to the surrounding program and/or editorial content. Direct mail and online

 Rising costs. As postal rates increase, direct-mail profits are immediately and directly
services are unlikely to create a desirable mood.

impacted.
 Chapter: EVALUATING THE SOCIAL, ETHICAL,

AND ECONOMIC ASPECTS OF ADVERTISING AND PROMOTION

1. Ethical Effects of Advertising:

Much of the controversy over advertising stems from the ways it is used by many
companies as a selling tool and because of the impact advertising has on society’s tastes,
values, and lifestyles. There are a number of criticisms of specific techniques used by
advertisers as well as charges against its impact on society in general.
A.Advertising as Untruthful or Deceptive—One of the major attacks against
advertising is that many ads are misleading or untruthful and end up deceiving
consumers. The issue of what constitutes deception is a very difficult one. However, a
concern of many critics is the extent to which advertisers are deliberately untruthful or
misleading in their advertising. Most large companies are unlikely to risk their reputation
and image or subject themselves to prosecution by various regulatory groups by making
overtly false or misleading advertising claims. Many of the companies involved in
outright fraud or deception are often smaller, local companies or those using direct mail
to advertise their products and services. However, national advertisers will often test the
limits of various industry and governmental rules and regulations and make claims that
may give their brands an advantage in highly competitive markets.
Critics of advertising often question whether consumers are receiving proper information
to make an informed choice since advertisers usually only present information that is
favourable to their brands. Many critics feel that advertising should be primarily
informative in nature and not be permitted to use puffery or embellished messages.
Others argue that advertisers should have the right to present the most favorable case for
their products and services. They note that most consumers can protect themselves from
being persuaded against their will and that various regulatory bodies and mechanisms are
sufficient to keep advertisers from deceiving or misleading consumers.

B.Advertising as Offensive or in Bad Taste—Another common criticism of advertising,

particularly by consumers, is that ads are offensive, tasteless, irritating, boring obnoxious,
and so on.

1.Sources of distaste—consumers can be offended or irritated by advertising in a

number of ways. Some are offended that a product or service is even advertised at all
(such as contraceptives or personal hygiene products). A research study of prime time
commercials found a strong product class effect with respect to the type of ads consumers
perceived as distasteful or irritating. Another way advertising can offend consumers is by
the type of appeal or the manner of presentation. Ads that use fear appeals or exploit
consumer anxieties, such as fear of social rejection, are often the target of criticism.
2.Sexual appeals—the type of advertising appeals that have received the most criticism
for being offensive or in poor taste are those using sexual appeals and/or nudity. These
 techniques are often used as ways of gaining consumers’ attention and in some cases may
not even be appropriate to the product being advertised. Even if the sexual appeal is
appropriate for the product, many people may still be offended. Advertisers who use
nudity and sexual suggestiveness argue that their ads are not offensive and are consistent
with contemporary values and lifestyles that are more accepting of this type of
advertising. Another common criticism of sexual appeals is that they can be demeaning to


women (and men as well) by depicting them as sex objects.
3.Advertisers also complain about the double standard that exists for TV programs and
commercials, noting that even the most suggestive commercials are bland compared with
what is shown in many television programs. The networks argue, however, that they have
to scrutinize commercials more carefully because they encourage people to imitate
behaviors, whereas programs are merely meant to entertain. Because of the clutter
problem, it is likely that advertisers will continue to use sexual appeals to gain the
attention of consumers.

C.Advertising and Children—One of the most controversial topics advertisers must

deal with is the issue of advertising to children. Sources have estimated that children
between the ages of 2 and 11 watch an average of 15.5 hours of television a week.
Concern has also been expressed over marketers’ use of other promotional vehicles and
techniques such as radio ads, point-of-purchase displays, premium offers, and the use of
commercial characters as the basis for television shows. Arguments can be presented on
both sides of this controversial issue. First, arguments against advertising to children
include:
Children, especially young ones, are vulnerable to advertising because they lack the
necessary experience and knowledge to understand and evaluate the purpose of
persuasive advertising appeals.

Children cannot differentiate between commercials and television programs, do not

perceive the selling intent of commercials, and cannot distinguish between fantasy and
reality.

Arguments in favor of advertising to children include:

Advertising is a part of life and children must learn to deal with it as part of the consumer
socialization process of acquiring the skills needed to function in the marketplace.

Greater market knowledge of the marketplace gives teens a basis on which to evaluate ads and
makes them more likely to recognize the persuasion techniques used by advertisers.
 2. Social Effects of Advertising

Concern is often expressed over the impact of advertising on society, particularly with
respect to its influence on values and lifestyles. Opinions regarding the value of advertising
as an important social influence agent are often very negative and it is criticized for a number
of reasons.

Advertising Encourages Materialism—many critics claim that advertising has an adverse

effect on consumer values by encouraging materialism, which refers to a preoccupation with
material things rather than intellectual or spiritual concerns. Advertising can create
materialism in many ways such as:

 Creating needs rather than showing how a product or service fulfills them

 Surrounding consumers with the images of the good life and suggesting that acquisition of
material possessions leads to contentment and happiness and adds to the joy of living

 Suggesting that material possessions are symbols of status, success, and accomplishment
and/or will lead to greater social acceptance, popularity, sexual appeal, and so on.

The criticism of advertising on the basis of creating materialism assumes that materialism is
undesirable and done at the expense of non-materialistic goals. Even if one assumes that
materialism is undesirable, there is still the issue of whether advertising is responsible for
creating and encouraging these values. This brings up the classic argument as to whether
advertising is a major force contributing to society’s values, such as materialism, or whether
advertising merely reflects or mirrors the values of society and does not mold or shape them.

Advertising makes people buy things they do not need—another common criticism of advertising
is that it has the power to manipulate consumers and make them buy things they do not need.
Persuasive advertising which plays on consumers’ emotions, anxieties, and social and psychological
needs and desires is viewed as undesirable. This type of advertising is seen as going beyond basic
needs or necessities in appeals to sell products and services. Only informational advertising, which
reports factual, functional information such as price performance, and other objective criteria, is
viewed as acceptable and desirable. Defenders of advertising offer a number of rebuttals to these
criticisms. They argue that a substantial amount of advertising is essentially informational in nature
and that it is difficult to separate desirable, informational advertising from undesirable, persuasive
advertising. They also note that most lower-level needs in our society are satisfied and it is natural
for consumers to be concerned with higher order needs, and for advertising to appeal to these wants
and desires. They also note that advertising cannot make consumers do things against their will and
they can defend themselves against advertising. Consumers do have a choice and can ignore ads for
products and services that they do not really need.

Advertising and stereotyping—advertising is often accused of creating and perpetuating

stereotypes thorough its portrayal of certain groups including women and ethnic minorities.
 I. Women—Advertising has received a great deal of criticism for its stereotyping of women.
Critics charge that advertising generally depicts women as being preoccupied with beauty,
household duties, and/or motherhood or shows them as decorative objects or sexually
provocative figures. Critics also argue that advertisers have failed to acknowledge the
changing role of women in society. While sexism and stereotyping of women still exist,
advertising’s portrayal of women is improving in many areas as many ads recognize the
changing role of women in our society and the importance of portraying them realistically.
II. Visible minorities—recent trends and commentaries by practitioners suggest that the
portrayal of minorities – particularly Chinese, South Asians and Blacks can be improved in
advertising even though there has been an improvement in the recent past.

Advertising and the media—the fact that advertising plays such an important role in financing the
media has led to concern on the part of many that advertisers can influence or even control the media.

a. Arguments supporting advertiser control of the media:

The media’s dependence on advertising revenue makes them susceptible to various forms of
influence such as exertion of control over editorial content, biasing editorial opinions,
limiting coverage of controversial topics or stories, and influencing the program content of
television.

Newspapers and magazines receive 70 percent of their total revenue from advertising,
whereas commercial television and radio derive nearly all of their income from advertising.
Thus, the media may be reluctant to carry stories detrimental to companies who purchase
large amounts of advertising time or space.

There have been several situations where advertisers have brought pressure to the media and
influenced content or programming decisions. Some of these situations have been in response
to pressure or the threat of boycotts from consumer groups opposed to program content.

b. Arguments against advertiser control:

It is in the best self-interest of the media that advertisers not influence them too much. To
retain public confidence, they must report the news fairly and accurately and not be perceived
as biased or attempting to avoid controversial issues. Media executives point to the vast
amount of topics they cover and the investigative reporting they do as evidence of their
objectivity. It can be argued that advertisers need the media more than the media need any
individual advertiser, particularly when the medium reaches a large audience or does a good
job of reaching a specific market segment.

The Canadian media. are basically supported by advertising and allow consumers to enjoy
them for a fraction of what it would cost without advertising. Although not perfect, a system
of advertising-supported media provides us with the best option for receiving information and
 entertainment and is probably more desirable than the alternatives of paying higher
subscription costs, pay-per-view, or having government-supported media.

Summarizing the Social Effects of Advertising—Negative opinions regarding advertising

have been around just as long as the field itself, and it is very unlikely that they will ever
disappear. It is important that the advertising industry remains cognizant of, and continually
addresses the various issues and concerns over, the effects of advertising on society.
Advertising is a very powerful institution, but it will only remain so as long as consumers
have faith and trust in the ads they see and hear every day.

It is important to note that advertising and other integrated marketing communication tools,
such as direct marketing and public relations, are also used to promote worthy causes and to
deal with problems facing society such as drunk driving, drug abuse, and the AIDS crisis.

3. Economic Effects of Advertising

Considerable attention has been given to examining the economic impact of advertising.
Advertising plays an important role in a free-market system such as that found in Canada and
other countries by making consumers aware of products and services and providing them with
information that can be used to make purchase decisions. However, advertising’s economic
role goes beyond this basic function of information provision as it is a very powerful force that
can affect the functioning of an entire economic system. It is viewed by many as a positive
force that encourages consumption and fosters economic growth. On the other hand, many
critics of advertising view it as having detrimental economic effects by not only failing to
perform its basic function of information provision adequately, but also adding to the costs of
products and services and discouraging competition. A number of major issues regarding the
economic effects of advertising are considered.

Effects on Consumer Choice—Some critics argue that advertising has a negative effect on
consumer choice as large advertisers use their power to limit our options to a few well-
advertised brands. Economists argue that advertising is used by large national advertisers to
achieve differentiation and brand loyalty, usually at the expense of smaller brands. These large
companies often end up charging a higher price and are able to achieve a more dominant
position in the market than smaller companies that cannot compete against their large
advertising budgets. When this occurs, advertising restricts choices and becomes a substitute
for competition based on price or product quality.

Defenders of advertising argue that it does not create brand monopolies and reduce the
opportunities for new brand or product introduction. The opportunity to advertise gives
companies the incentive to develop new brands and improve existing ones. Advertising is
instrumental in helping companies inform consumers about their new products.
Effects on Competition—One of the most common criticisms economists have with
advertising concerns its effect on competition. They argue that large firms with huge
advertising budgets create a barrier to entry, which makes it difficult for other firms to enter
the market. This in turn leads to less competition and higher prices. Large advertisers enjoy
certain competitive advantages such as economies of scale in advertising, particularly with
respect to factors such as media costs.

While advertising may have an anticompetitive effect on a market, there is no clear evidence
that advertising alone reduces competition, creates barriers to entry and thus increases market
concentration. Defenders of advertising note that it is unrealistic to attribute a firm’s market
dominance solely to advertising as there are a number of other factors to consider such as price,
product quality, distribution effectiveness, production efficiencies, and competitive strategies.
While market entry against large established competitors is difficult, companies with a quality
product offered at a reasonable price find that advertising actually facilitates their market entry
by make it possible to communicate with consumers.

Effects on Product Costs and Prices—A major area of debate among economists, advertisers,
consumer advocates and policymakers concerns the effects of advertising on product costs and
prices. Critics offer several reasons why advertising results in higher prices:

- The large sums of money spent on advertising and promotion are an expense that is
passed on to consumers in the form of higher prices
- Advertising increases product differentiation and adds to the perceived value of the
product in the mind of the consumer, which allows advertised brands to command
premium prices
- There are often large differences in prices between national brands and private label
brands that are physically and functionally similar, which is evidence of the added
value created by advertising. Consumers pay higher prices for this added value.

Proponents of advertising offer several counter-arguments to the claim that advertising

increases prices:

- Price insensitivity and brand loyalty can be created by a number of non-advertising

factors such as product quality, packaging, favorable usage experience and market
position
- Advertising can actually result in lower costs by helping firms achieve economies of
scale in product and distribution and helping stimulate demand among mass markets
- Advertising can make a market more competitive, which often leads to greater price
competition. Several studies have found lower consumer prices in markets permitting
advertising for a product versus those that did not.
Summarizing Economic Effects—Economists’ perspectives regarding the effects of advertising can be
divided into two principal models or schools of thought, each of which makes different assumptions
regarding the influence of advertising on the economy:

Advertising Equals Market Power—This model reflects traditional economic thinking and views
advertising as a way of changing consumers’ tastes, lowering their sensitivity to price, and building
brand loyalty among buyers of advertised brands. This results in higher profits and market power for
the large advertiser, reduces competition, and leads to higher prices and fewer choices for consumers.
Proponents of this viewpoint are generally negative in their assumptions regarding the economic
impact of advertising.

Advertising Equals Information—This model takes a more positive viewpoint of advertising’s

economic effects, as it views advertising as providing consumers with useful information, increasing
their price sensitivity, which moves them toward lower-priced products, and increasing competition in
the market. Advertising is viewed as a means of communicating with consumers and telling them about
a product and its major features and attributes. More informed consumers put pressures on firms to
lower prices and improve quality. Proponents of this model assume that the economic effects of
advertising are favorable and view it as contributing to efficient and competitive markets.