Advertising and Public Relation

ADVERTISING AND PUBLIC
RELATIONS
(FOR PRIVATE CIRCULATION ONLY)

2022
PROGRAMME COORDINATOR
Dr. Padmpriya Irabatti
COURSE DESIGN AND REVIEW COMMITTEE

Dr. Rashmi Hebbalkar Dr. Shailesh Kasande
Prof. Anita Patankar Prof. Jayant Panse
Prof. Abhay Karde Prof. Sanjeev Pathak
Prof. Sunil Kumar Dr. Khushboo Sahu
COURSE WRITER
Prof. Shree Lahiri
EDITOR
Mr. Yogesh Bhosle
Published by Symbiosis Centre for Distance Learning (SCDL), Pune

July, 2006 (Revision 03, 2022)
Copyright © 2022 Symbiosis Open Education Society

All rights reserved. No part of this book may be reproduced, transmitted or utilised in any form or by any
means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval
system without written permission from the publisher.
Acknowledgement
Every attempt has been made to trace the copyright holders of materials reproduced in this book. Should any
infringement have occurred, SCDL apologises for the same and will be pleased to make necessary corrections
in future editions of this book.
PREFACE
Advertising is a very interesting subject to someone who learns through observation and awareness. You buy a
specific brand of soap for yourself – why this specific choice? This SLM will speak volumes about the factors
leading to your choice etc.
On the other hand, PR as an industry is one of the fastest growing communication media. Your image can make
or mar your career. PR practitioners need to upgrade their experiences and skills on a regular basis.
I hope this SLM will help you to mould a career in PR.
The language used in this SLM is simple and lucid and the approach has been to provide you with applied
information.
Shree Lahiri
iii
ABOUT THE AUTHOR
Ms. Shree Lahiri is M.A. in English from Kolkata University. She started her career in an Advertising
Agency, Kolkata where she catered to client servicing, copy, etc. She has worked with many corporate
clients like Bata, Shaw Wallace, National Tobacco, etc. Ms. Lahiri worked as an Advtg. Manager
with Polar Fans, Kolkata and was later associated with NIIP, Delhi as Advtg. Manager.
At present she is a visiting faculty to various reputed Media and Management Institutes in Pune. She
also conducts corporate training for corporate houses.
Ms. Lahiri has also written articles on Branding and Personal Development for reputed dailies.
iv
CONTENTS
Unit No. TITLE Page No.

1 What is Advertising 1-38
1.1 Introduction
1.2 How Advertising evolved
1.3 The Indian and Global Scenario
1.4 Advertising – Some Definitions
1.5 Benefits of Advertising
1.6 Criticisms against Advertising
1.7 Marketing and Advertising
1.8 Communication in Advertising
1.9 Advertising and its Types
1.10 Digital Advertising
Case Study
Summary
Keywords
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading
2 Objectives of Advertising, Planning and Decision Making 39-60
2.1 Introduction
2.2 Objectives of Advertising
2.3 Defining Advertising Objectives
2.4 Functions of Advertising
Summary
Keywords
Suggested Reading
3 Creating the Advertising Campaign 61-102
3.1 Introduction
3.2 Message Appeals
3.3 The Media
3.4 Buying Behaviour
3.5 Agency Structures
Summary
Keywords
Suggested Reading
v
4 Brand Image, Personality and Equity 103-124
4.1 Introduction
4.2 Different Types of Brands
4.3 Selecting a Brand Name
4.4 Building a Brand
4.5 Developing Brand Personality
4.6 The Brand Image and Equity
Summary
Keywords
Suggested Reading
5 Advertising, Market Positioning, Segmentation 125-156
5.1 Introduction
5.2 Marketing and Advertising Plan
5.3 Understanding Campaigns
5.4 Ad Strategy
5.5 How to create an Ad Plan
5.6 Positioning Strategy
5.7 Consumer Behaviour and Market Segmentation
5.8 Determining Target Audience
Summary
Keywords
Suggested Reading
6 Media Strategy, Budgets, Research 157-186
6.1 Introduction
6.2 Understanding Media
6.3 The Media
6.4 Understanding Media Selection
6.5 Budgets
6.6 Research
Summary
Keywords
Suggested Reading
vi
7 Global Marketing and Advertising 187-220
7.1 Introduction
7.2 Convergence and Divergence in Consumer Behaviour: Implications
for Global Advertising
7.3 Globalisation of Markets
7.4 The Global Debate and Advertising
7.5 The Global Advertising Plan
7.6 Indian Advertising Trends
7.7 Future of Advertising in Developing Countries
Summary
Keywords
Suggested Reading
8 Advertising and Society, Ethics and Regulations 221-248
8.1 Introduction
8.2 What is Ethics
8.3 Advertising Regulations
8.4 Issues in Advertising
8.5 Watchdog Bodies
8.6 Ethics in Advertising
8.7 Positive Role of Advertising
Summary
Keywords
Suggested Reading
9 What is Public Relations 249-278
9.1 Introduction
9.2 Understanding Public Relations
9.3 History of Public Relations
9.4 Public Relations and Democracy
Summary
Keywords
Suggested Reading
vii
10 Nature and Scope of Public Relations 279-304
10.1 Introduction
10.2 PR Today
10.3 PR and Advertising
10.4 The Public
10.5 Crisis Public Relations
Summary
Keywords
Suggested Reading
11 Organisation and Practice 305-328
11.1 Introduction
11.2 PR and the Government
11.3 Lobbying/Public Affairs
11.4 International Public Affairs
11.5 Governmental Spin
11.6 Government Bodies
Summary
Keywords
Suggested Reading
12 Public Relations Practitioner 329-350
12.1 Introduction
12.2 The Role of the PR Practitioner
12.3 The PRSA Statement
12.4 The Qualities of a PR Professional
12.5 Public Relations and the Law
Summary
Keywords
Suggested Reading
viii
13 Principal Areas of PR Work 351-386
13.1 Introduction
13.2 The PR Plan
13.3 Corporate Social Responsibility
13.4 The Press Conference
13.5 Other PR Events
13.6 Techniques for TV and Radio
13.7 Preparing Press Conference Material
13.8 Areas of PR Work
Summary
Keywords
Suggested Reading
14 Case Studies 387-402
14.1 Introduction
14.2 Case Study 1: Du Pont Corporation and the Issue of Sexual
Harassment
14.3 Case Study 2: Cadbury Dairy Milk – Celebrating 100 Years of
Happiness
14.4 Case Study 3: American Idol
14.5 Case Study 4: AIDS at Work
14.6 Case Study 5: Bad PR – Corporate Coldness
Summary
Keywords
Suggested Reading
15 Media Relations, Investor Relations 403-426
15.1 Introduction
15.2 How to write a Good Press Release
15.3 Media Relations
15.4 Investor Relations
Summary
Keywords
Suggested Reading
Glossary 427
References 445
ix
x
What is Advertising
UNIT
1
Structure:
1.1 Introduction
1.2 How Advertising evolved
1.3 The Indian and Global Scenario
1.4 Advertising – Some Definitions
1.5 Benefits of Advertising
1.6 Criticisms against Advertising
1.7 Marketing and Advertising
1.8 Communication in Advertising
1.9 Advertising and its Types
1.10 Digital Advertising
Case Study
Summary
Keywords
Suggested Reading
What is Advertising 1
Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
• Comment on current campaigns.
----------------------
• Identify advertising industry jargon.
---------------------- • Trace how the world of advertising evolved.
---------------------- • Describe the global and Indian scenario.
---------------------- • Differentiate between various types of advertisement.

• Explain the relevance of comparative advertising.
----------------------
---------------------- 1.1 INTRODUCTION

---------------------- Welcome to the world of creativity!
---------------------- The beauty of advertising lies in the unexpected and in the fact that the unexpected
actually gets results. Sometimes, it can be the ordinary or commonplace that
---------------------- works!
---------------------- What is advertising?
Advertising is a form of mass communication, a powerful marketing tool, a
----------------------
component of the economic system, a means of financing the mass media, a
---------------------- social institution, and an art form, an instrument of business management, a
field of employment and a profession.
----------------------
Advertising vs. Propaganda, Publicity or Marketing
---------------------- a) How is Advertising different from Propaganda?
---------------------- Propaganda is the means of making known in order to gain support for
an opinion, creed or belief. The BJP’s hidden agenda, the Nazi gospels
----------------------
that were enforced by Hitler, the anti-India propaganda undertaken
---------------------- by governments such as Pakistan, Family Planning Campaign etc. are
examples of propaganda.
----------------------
b) Advertising or Public Relations?
---------------------- Public Relations is the deliberate, planned and sustained effort to establish
and maintain mutual understanding between an organisation and the public.
----------------------
‘Understanding’ is the key for interpreting Public Relations.
---------------------- Relationship between Public Relations and Advertising: Unless people
---------------------- understand an organisation or its products, there can be no goodwill and
the exercise of advertising may be a waste of money and may even fail to
---------------------- sell. Public Relations can have the effect of making advertising work.
---------------------- Customers are more likely to be persuaded to buy a product/service that

they know and trust.
----------------------
2 Advertising and Public Relations

c) Advertising or Marketing? Notes
Marketing is producing goods that satisfy the customers and selling them at
----------------------
a profit. Marketing is the management process responsible for identifying,
anticipating and satisfying customer requirements profitably. ----------------------
Advertising is a part of marketing mix. Marketing sets out to achieve
----------------------
economic business management using advertising as its ammunition.
Advertising is, in fact, an extension of marketing. ----------------------
Is it Advertising that is happening all around us? ----------------------
Today, we are bombarded by a barrage of advertisements. Be it the
----------------------
newspapers, magazines, the television or the so many hoardings which line up
any street or highway, there are a lot of advertisements to be seen. In fact, the ----------------------
quantity and the quality of the advertisements seem to be increasing day after
day. ----------------------
Advertising has become an important tool at the hands of the marketers, ----------------------
for selling their products. Some advertisements are criticised for being false,
----------------------
misleading and deceptive, and for concealing information. Advertisements can
also manipulate the consumer, pushing him to go into an unnecessary buying ----------------------
spree.
----------------------
Consider a firm that has developed a product, which will satisfy the
market demand. So, essentially, it has to reach the public or the target market, ----------------------
with information about the product. For optimum exposure, the company has to
make sure that it reaches out to the maximum number of people. ----------------------
Mass communication would be the best way to reach the people; hence, the ----------------------
medium of advertisements would be the best. It should be, however, understood
----------------------
that advertising per se cannot sell the product; it merely assists in the selling
process. ----------------------
Matrimonial advertisements, recruitment advertisements, tenders, ----------------------
classified advertisements, notice and public announcements are also examples
of advertisements. ----------------------
Basically, adverting is an announcement of a product, service or idea ----------------------
through a medium to which the public has access.
----------------------
The medium may be print (newspapers, magazines, posters, banners and
hoardings), electronic (radio, television, video, cable, phone, Internet) or any ----------------------
other. It is paid for by an advertiser, at rates fixed or negotiated with the media.
----------------------
Advertising cannot rejuvenate or restore a poor product. It can only help
in the selling process, through the means of communication. ----------------------
According to authors Mullin, Hardy and Sutton, advertising is “any paid ----------------------
non- personal (not directed to the individuals), clearly sponsored message
conveyed through the media.” ----------------------
----------------------
Notes However, when we think about advertising, we need to consider the term
“media” from a broad perspective. It includes common mass media sources
---------------------- such as television, radio, newspapers and magazines. It also includes outdoor
---------------------- advertising (bill-boards and transit vehicles), direct mail and, of course, the
Internet.
----------------------
Advertisers are those organisations (private or public sector) that invest
---------------------- resources in purchasing time or space in the various forms of media mentioned
above.
----------------------
Advertising management is “heavily focused on the analysis, planning,
---------------------- control and decision-making activities of...the advertiser.” Among other things,
---------------------- advertising management requires situational analysis, performance-driven
objectives and a clear picture of the market targeted for an advertisement, before
---------------------- a campaign is created.
----------------------
1.2 HOW ADVERTISING EVOLVED
----------------------
In order to understand what the advertising industry is today, it is helpful to
---------------------- appreciate where it has come from.
---------------------- To trace the early beginnings of advertising we have to travel back in time.
---------------------- 1. The early beginnings
---------------------- Check the early rock carvings and paintings of Pompeii, Ajanta and Ellora.
In the Indus Valley civilization, the craftsmen made special signs to keep
---------------------- their identity unique to their products.
---------------------- In Greece, in the Middle Ages, town criers used to announce important
events. In India, we had the messengers who beat the drums and conveyed
----------------------
messages to the public.
---------------------- In the 15th century, the invention of the printing press was a landmark in
---------------------- world history. The first appearance of an advertisement was brought out by
an Englishman, Caxton’s handbill – advertising his book on religion. Then,
---------------------- in 19th century, with the printing and distribution of newspapers, the first
---------------------- advertisements, as we know it now, started appearing and soon became
popular.
----------------------
You can see below, one of the earliest advertisements – G P Rowell & Co,
---------------------- Advertising agent, selling ad space in Harper’s Weekly, on May 4, 1867.
----------------------
N Oafford
ONE whose business requires extensive advertising can
to neglect the unusual facilities offered to the public by
----------------------
GEO. P. ROWELL CO., Advertising Agents,
---------------------- No. 40 Park Row, New York.
Call and see them, or send stamp for circular.
----------------------

Harper’s Weekly was the leading illustrated American periodical during the Notes
period 1857-1872. Its circulation exceeded 100,000 on a regular basis, which
at times reached 300,000, such as during the Civil War and during the 1871 ----------------------
campaign to defeat Boss William M. Tweed in New York City. It is best known
----------------------
for the political cartoons of Thomas Nast, the illustrations of Winslow Homer
and the wood engravings of photographs by Mathew Brady. ----------------------
In 1870, when annual subscription for the periodical cost $4.00, an ----------------------
advertisement cost $1.50 per line per insertion for an inside page and $2.00
for an outside page. The newspaper had 16 tabloid-size pages per issue ----------------------
before 1870, which later increased up to 24 pages per issue.
----------------------
2. The Industrial Revolution
The Industrial Revolution ushered in mass production and along with it ----------------------
came the need to inform a mass audience about the products, to go beyond ----------------------
the local reach of the manufacturer and extend to wider markets.
----------------------
3. Growth of Media
As print media grew from strength to strength, radio, followed by television, ----------------------
was introduced as a means of communication. Marketers started using
----------------------
these media for advertising their goods. They remain important even today.
4. Advent of Technology ----------------------
With the advent of technology, IT came into being. Communication ----------------------
explosion brought in its wake, media options. And new media descended
on us. The Internet, World Wide Web (www) and mobile phones have ----------------------
changed the way we talk and communicate. ----------------------
Thus, advertising is generally agreed to have begun with newspapers, in
the seventeenth century, which included line or classified advertising. ----------------------
Simple descriptions given along with the prices of the products served their ----------------------
purpose until the late nineteenth century, when technological advances meant
that illustrations could be added to advertising and colour became an option. ----------------------
5. Early success ----------------------

An early advertising success story is that of ----------------------
Pears Soap. Thomas Barratt married into the
famous soap making family and realised that they ----------------------
needed to be more aggressive about pushing their
----------------------
products, if they were to survive. He launched the
series of ads featuring cherubic children which ----------------------
firmly welded the brand to the values it still holds
today. He took images considered as “fine art” and ----------------------
used them to connote his brand’s quality, purity
----------------------
(i.e. untainted by commercialism) and simplicity
(cherubic children). He is often referred to as the ----------------------
father of modern advertising.
----------------------
Alongside you can see one of the ads that were created for Pears soap.
Notes 1.3 THE INDIAN AND GLOBAL SCENARIO
---------------------- The Indian context offers unique challenges to marketers. Cultural and
economic diversity, a blend of Western lifestyles, strong cultural anchoring,
---------------------- and the rural/urban divide, with islands of prosperity in rural areas, are some
---------------------- of the critical factors that need specific treatment in terms of formulation of
marketing strategies.
---------------------- In India, the advertising business is growing at the rate of 30% to 35%
---------------------- annually. It is a 1600 crore industry. It accounts for 90% of India’s GDP.
In 2005, advertising was nearly a $300 billion industry in the U.S. It is
---------------------- irrevocably linked to media, whether traditional media like the 13,599 radio
---------------------- stations in America (about $20 billion in annual revenues), the 1,749 broadcast
TV stations plus myriad cable and satellite TV outlets (totalling about $68 billion
---------------------- in advertising revenues), the 2,250 daily and Sunday newspapers (about $49
billion in annual advertising revenues) or new media like the tens of thousands
---------------------- of Internet sites that now accept advertising.
---------------------- The advertising sector also includes direct mail, at about $45 yearly in
the U.S.; magazines, at about $21 billion; and outdoor advertising, at about
----------------------
$6 billion. In addition, there is significant activity in specialty and alternative
---------------------- advertising, from ball point pens printed with a message to T-shirts to small
airplanes towing advertising banners.
----------------------
By one count, Americans are subjected to 3,000 commercial messages
---------------------- daily, most of which occur randomly such as billboards. A study by Yankelovich
Partners found that two-thirds of the Americans feel “constantly bombarded”
---------------------- by ads and nearly as many respondents felt that these ads have little or no
relevance to them.
----------------------
Advertisers are faced with daunting new realities, when considering the
---------------------- various media that they might use to get their messages across. Traditional
media are losing control over their audiences. It means that advertisers can
----------------------
no longer feel secure that their ads on TV, on the radio or in print are going to
---------------------- receive mindshare. Gone are the days when television and radio programmers
enjoyed captive audiences who happily sat through ad after ad, or planned their
---------------------- schedules around favorite shows.
---------------------- Consumers, especially consumers in younger demographics, now demand
more and more control over what they watch, read and listen to and thus more
---------------------- control over the advertising that they might be exposed to. Issues related to
---------------------- control include: pricing for content (including free, illegal downloads versus
authorised, paid downloads or pay-per-view); portability (including the ability
---------------------- for a consumer to download once, and then use a file on multiple platforms
and devices including iPods and cell phones); and delayed viewing or listening
---------------------- (such as viewing TV programming at the consumer’s convenience via TiVo and
---------------------- similar personal video recorders).
Over the last three decades, advertising and the context within which
---------------------- it occurs have changed beyond recognition. As the communications universe

expanded and society became fragmented, advertising lost its traditional place Notes
within the communications system. It has been left with a variety of challenges
that it currently seems unable to meet. Marketers should learn a lesson from ----------------------
politics that a new communications structure based on flexibility rather
than traditional divisions in terms of media is required to generate effective ----------------------
knowledge, strategies and messages. ----------------------
Advertising and marketing are undergoing a seismic shift, as new
----------------------
technology engenders social change and transforms the way consumers view
commercial interaction. ‘Brand’ advertising is sometimes not adequate in ----------------------
meeting the need of the customers. Marketers are to make the most of the new
opportunities presented by technological progress. ----------------------
Advertising and advertising research are going through an exciting ----------------------
period of change, as technology and social changes enable marketers to focus
increasingly on individual consumers rather than mass-market. ----------------------
In a world that is increasingly dominated by technology, marketing and ----------------------
advertising are also evolving. Markets, according to postmodern thought,
are beginning to fragment, yet they are creating greater challenges for the ----------------------
advertisers. Individuals are both isolated and interconnected with the whole
----------------------
world virtually via computers. Advertising has, for a long time, been based on a
one-to-many communications model; yet new technology offers the possibility ----------------------
of a computer-mediated environment, in effect, a virtual world.
----------------------
In this new millennium, the attempt is to make use of the Internet and
contemporary thought for developing advertising effectiveness. ----------------------
We are constantly hearing how the Internet, clutter, own-label brands ----------------------
and other hot topics are about to turn the advertising world upside down. But,
important though some of these issues are, will their impact on advertising ----------------------
really be that great? ----------------------
We forsee an exciting future for advertising, as marketers develop ----------------------
multicultural strategies, find new uses for new media and explore e-commerce
and on-line information technologies. ----------------------
----------------------
1.4 ADVERTISING – SOME DEFINITIONS
----------------------
The American Marketing Association, Chicago, defines advertising as
“any paid form of non-personal presentation of ideas, goods and services by ----------------------
an identified sponsor.”
----------------------
A form is a presentation or a sign, a symbol, an illustration, an ad message
in a magazine or newspaper, a commercial on the radio or on television, a ----------------------
circular dispatched through the mail or a pamphlet handed out at a street corner;
a sketch or message on a billboard or a poster or a banner on the Net. ----------------------
Non-personal means that it is not on a person-to-person basis. ----------------------
Goods, services, ideas for action means making a consumer’s work ----------------------
Notes easy, as far as knowing about the product of a firm. It could be a television or a
banking service or filing tax returns, which the firm or the marketer wants the
---------------------- consumer to know about. An idea could also refer to political parties letting the
---------------------- people know about their party and why they should vote for the party. Adult
education, AIDS awareness campaign and eye donation campaign are a few
----------------------
examples of ideas.
---------------------- Paid for by an identified sponsor implies that the sponsor has control
---------------------- over the form, content and scheduling of the advertisements. The sponsor could
be identified by the company name or the brand of the particular product.
----------------------
Some Quotes
----------------------
Given below are few definitions of advertising:
----------------------
1) “Advertising is salesmanship in print.”
----------------------
2) “Advertising is a substitute for the human salesman.”
---------------------- 3)
“Advertising is the business of creative thinking for commercial
---------------------- advantage.”
---------------------- 4) “Advertising is the principal reason why the businessman has come to
inherit the earth.”
----------------------
5) “Advertising is 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.”
---------------------- 6) “Advertising is the ability to sense, interpret . . . to put the very heart throb
---------------------- of a business into type, paper and ink.”
---------------------- 7) “Advertising is the life of trade.”

8) “Advertising - a judicious mixture of flattery and threats.”
----------------------
---------------------- Check your Progress 1

---------------------- Fill in the blanks.
---------------------- 1. ___________ is the means of making known in order to gain support
for an opinion, creed or belief.
----------------------
State True or False.
---------------------- 1. Advertising is generally said to have begun with newspapers, in the
---------------------- seventeenth century.
2. The cultural diversity of India is the biggest challenge for advertising
---------------------- is Indian context.

Notes
Activity 1
----------------------
Visit the library and trace the history of advertising in India. Name two
----------------------
examples of early ads that you can find. Are those brands still alive today?
List reasons. ----------------------
----------------------
1.5 BENEFITS OF ADVERTISING
----------------------
Let us bear in mind that we are in a world which is dominated by three Ds.
Dream, Desire and Demand. ----------------------
We now discuss the purpose and the benefits of advertising. ----------------------
1. The Purpose ----------------------
The primary purpose is: communication with the consumers, conveying
----------------------
information about products or services. There is persuasion here – it is
an entire process of planned persuasion. Through advertising, there is a ----------------------
definite contribution to economic growth. Advertising helps to expand
market by developing new markets. And, last but not the least, it is a ----------------------
catalyst for change – as in new products/brands.
----------------------
Everyone knows that the purpose of advertising and marketing (regardless
of the product) is to promote and sell a product. Is there any manufacturer ----------------------
in the world who spends money on advertising to encourage consumers to
----------------------
stop using his product?
2. The Benefits ----------------------
The main benefit of advertisement is that it imparts information to ----------------------

prospective customers about a company’s products or services.
----------------------
It involves brand image building – for example, Lux is perceived as the
soap for beauty queens; one imagines the superiority of VIP moulded ----------------------
luggage through association with foreign nationals, courtesy a series of ----------------------
advertisements that had appeared in the Indian media.
----------------------
There is innovation involved here. However, advertising does not
guarantee success for all new products. In other words, the advertising ----------------------
may be very creative and click with the target audience, but if the product
does not deliver or live up to its promise, it may flop in the market. ----------------------
New product launches gain a great deal through advertising, for consumers ----------------------
can be made aware of the products and also persuaded to trials.
----------------------
Advertising contributes to the growth of media, by raising advertising
revenues, which, in turn, helps launch of new publications. ----------------------
There are long-term and indirect benefits of advertising. There is free ----------------------
competitive enterprise and advertising contributes to greater availability
----------------------
of goods.
Notes It increases distribution of advertised products and others too.
Costs of production and selling are reduced, when volumes increase.
----------------------

---------------------- State True or False.
---------------------- 1. Advertising is non personal communication.
---------------------- 2. Generally advertising is used in new products launches.

3. Main purpose of advertising is to inform the customers about product
---------------------- or service.
----------------------
---------------------- Activity 2
---------------------- Check newspapers and select an ad where you can clearly see the benefits of
the product spelt out. Does this benefit appeal to consumers like you? Give
---------------------- an example of a product that displays such benefits, to support your point.
----------------------
----------------------
1.6 CRITICISMS AGAINST ADVERTISING
---------------------- The principal criticisms against advertising are many.

1. Advertising is parasitical
----------------------
Advertising influences consumer choice and purchase of products. It can
---------------------- be tested days after the launch of the product or service. Has advertising
forced people to buy? The truth is that it tells people that the choice or
----------------------
opportunity is there.
---------------------- 2. Ads are untrue or misleading
---------------------- Sometimes, advertisements not perfect. They are unethical, dishonest. It is
always the advertiser, the manufacturer, the businessman or the client who
---------------------- is at fault, not advertising!
---------------------- In India, for instance, cigarette and liquor ads are banned. But they do find
a way out through what is called “surrogate” advertising. In countries like
---------------------- Malaysia too, they are banned.
---------------------- Sometimes in media, ethics is largely a matter of business.
A misleading ad is definitely bad PR for the product or the company.
----------------------
3. Ads causes false & materialistic demands for things that people do not
---------------------- want
---------------------- At the bottom of it all, advertisements offer choice. It creates wants and
products, say some critics. Some examples include beauty soaps and
---------------------- toothpastes, soft drinks, floor cleaners, etc.
---------------------- However, it is a fact that advertising tells us about things that we have

never heard of. And, advertising moves with changes. And, what critics Notes
consider ‘materialistic’ is a matter of improved living standards.
----------------------
4. There is no need to continue advertising an established product
If this were true, manufacturers would be delighted. ----------------------
Products have life-cycles and a need to be advertised, after which they are ----------------------
withdrawn or revamped. Most established products go on advertising –
Liril, Nescafe, Bata, Cadbury’s, Pepsi, Coke, Nestle etc. ----------------------
5. Advertising causes costly competition and higher prices ----------------------

We live in times of stiff competition. And what we see around are very ----------------------
competitive ads.
----------------------
Sometimes it is seen that when competition gets too hot, advertisers get
together and develop a strategy to work out mutually beneficial strategies. ----------------------
No doubt, the customer pays for the advertising. This is a legitimate ----------------------
distribution cost of the product. Take a look at loose atta sold in the market
and branded atta like Annapurna or Pillsbury. These are definitely costlier. ----------------------
On the other hand, advertising can reduce rather than increase prices. Some ----------------------
example are radios, transistors, walkmans, handsets etc. Consider how
----------------------
much they cost during the introduction stage and how much they came
down in price once they were established, making it more affordable for ----------------------
the consumer.
----------------------
6. Advertising may encourage unsound or false values
----------------------
Consider the effect of advertising on children and young people and you
may see sense in this allegation. Critics club this and the spoils of the ----------------------
modern society – consumerism and what have you – and may be you can
----------------------
see the connection.
7. Advertising can endanger competition ----------------------
Sometimes big advertisers monopolise the market and colour the meaning ----------------------
of healthy competition. Generally, in the marketing warfare, it is the
----------------------
winning principle of “might is right” rather than “survival of the fittest.”
----------------------
The benefits of advertising are a part and parcel of modern society.
Sometimes there is too much of it and we are often irritated by the ----------------------
‘commercial break.’
----------------------
The amount of advertising that one can observe is actually proportionate
to the size of market. And dearth of advertising would reflect diminished ----------------------
market, weak purchasing power and a narrow choice of goods. To aid
----------------------
economy, advertising works best when there is: reasonable free trade, full
employment and high purchasing power. ----------------------
----------------------
Notes In this case, advertising works as a lubricant, a force for the social good.
It helps to maintain prosperity and to raise the standard of living or the
---------------------- quality of life.
----------------------
1.7 MARKETING AND ADVERTISING
----------------------
In a way, the entire process of marketing is a communication process.
---------------------- There are 4 P’s in Marketing – Product, Price, Promotion and Place.
---------------------- Consider, What we want to say about a particular product. Is it youthful,
young, matured, secured? In other words, what is the profile of the customers
----------------------
that we are looking at? Once we have identified a group and further identified a
---------------------- few characteristics about them, we could incorporate those very characteristics
in the message. This would fall under Product that is the distinctive image that
---------------------- you want to associate the brand with.
---------------------- Within the context of Price, quality plays a major role. When you think
about a Mercedes Benz worth Rs. 70 lakhs, there is certainly a difference in
----------------------
the way you perceive it, as compared to an automobile with a tag price of Rs. 3
---------------------- lakhs.
---------------------- Promotion refers to the method and the media used to reach out to the people.
Even in rural areas, where there may not be many televisions in households,
---------------------- products may be promoted through local shows and with the help of melas,
---------------------- haats, or Nautakiwalas. The local door-to-door salesman, selling shawls from
Kashmir, is another example of promoting wares.
----------------------
Place would mean the interaction between the buyer and the seller. It is like
---------------------- advertising a brand of television, which, when the buyer goes to buy, is not
available. Place refers to the distribution channels.
----------------------
Advertising is related closely to other subjects of marketing too. Be it Personal
---------------------- Selling, Sales Promotion, Publicity or even Public Relations, advertising plays
---------------------- a significant role in reaching out to a selected target audience. It is a part of the
entire marketing communications for a particular brand.
----------------------
Strategic Brand Communications
---------------------- Many teams develop a new advertising strategy every year. Think about
---------------------- your favorite brand of chocolate: Can you remember an advertisement that
has remained the same over the past five years? If you can, it means that the
---------------------- message has made it through the noise and reached you.
---------------------- It boils down to viewing advertising not as advertising, but as a strategic
brand communications. Before defining strategic brand communications, it is
----------------------
important to establish what “brand” means in the setting or the business industry
---------------------- it belongs to. A brand is a name, symbol or term that serves to differentiate
one product from another. The goal of any brand is to develop strong, unique
----------------------

and favourable associations in the consumers’ minds, with brand names. Such Notes
positive and favourable associations are created by communication.
----------------------
Strategic brand communications is important for several reasons.
a) Strategic brand communications takes into consideration all customer ----------------------
groups (and potential customer groups) that the brand is attempting to ----------------------
serve.
----------------------
b) It places the consumer first and the entire organisation adapts to focus on
supporting the brand communications to reach the consumer. ----------------------
c) With such a focus, the messages are more cohesive, consistent and ----------------------
strategically driven, than they would be otherwise.
----------------------
d) Finally, it is important because it is crucial to maintain the same voice in
advertising messages over time. ----------------------
Since all brands attempt to create meaningful associations over a period ----------------------
of time, it makes sense for the advertising about the brand to consistently
----------------------
emphasise, promote and foster those key associations.
This consistent communication is often referred as “one voice ----------------------
communication” or Integrated Marketing Communications (IMC). ----------------------
1.8 COMMUNICATION IN ADVERTISING ----------------------
To communicate, persuade, influence and lead to some action is what ----------------------

advertising is all about. Human nature and advertising are closely related. A man
----------------------
who wears shirt-trouser instead of dhoti is advertising that he is westernized; a
woman who wears eyeshadow and lipstick wants to advertise that she wants to ----------------------
look beautiful; a young man who rides a trendy bike wants to advertise that he
wants to be noticed. Thus, we see that people want to be noticed for anything ----------------------
that they do. That is what advertising does. It pulls people towards the product
----------------------
like flowers attracts bees.
Advertising is a communication process. There is a message, which is ‘decoded’ ----------------------
by a party (Sender) to be ‘Encoded’ by another (Receiver). The encoded message ----------------------
should be so clear that the person should not distort the meaning. This means
that what is being said and what is being read should be the same. ----------------------
The message should: ----------------------
1. Gain the attention of the receiver.
----------------------
2. Be understood.
----------------------
3. Be able to stimulate the receiver.
4. Suggest appropriate methods for satisfying the need of the receiver. ----------------------
So the sender must know his receivers or the audience and the kind ----------------------
of response that is likely to be elicited. By maintaining a proper feedback
mechanism, he can get a response. The feedback can have some “Noise ----------------------
Notes elements.” It could be due to poor message planning, busy audience members
or careless feedback of response.
----------------------
1. How does communication work in the advertising cycle?
---------------------- The communication process that the business of advertising typically goes
through is given below:
----------------------
Ad Ad Media Target
---------------------- Agency Message Market
---------------------- Segment
---------------------- As we have understood, the sender identifies the receiver(s) and develops
a message. The basics for the sender are that the customer or the target
----------------------
audience should buy the product or the service. For this, one must know
---------------------- whether a particular message so created has been effective in reaching the
target group.
----------------------
What makes an advertisement effective? Given below are the key points
---------------------- on the effectiveness of a message.
a) Attract attention
----------------------
b) Secure interest
----------------------
c) Build desire for the product
---------------------- d) Obtain action
---------------------- The above has been formulated as the AIDA Model.
---------------------- a) Attention refers to the form of the layout of a print advertisement or
the way an advertisement is made in the form of moving pictures, the
---------------------- colours used, the models used, the copy written, the movements and
the contrasting element used.
----------------------
b) We are bombarded by so many advertisements that there are a few that we
---------------------- see and a few that we do not see. An advertisement that arouses interest
in us and provokes us to think or feel about a product is what an advertiser
----------------------
should aim for. It basically means to catch the eye of the public.
---------------------- c) Desire refers to the buying motive, when a buyer feels that he wants
---------------------- to posses the particular product or be associated with it.
d) Action means acquisition of the product.
----------------------
Within the AIDA framework, Attention would refer to the cognitive stage,
---------------------- both Interest and Desire would relate to the affective stage and Action
would be a behavioural activity.
----------------------
2. The 6 Ms of Advertising
----------------------
Within the framework of advertising, the following should be kept in mind:
---------------------- a) Understanding the Objective(s) of the advertisement (MISSION)
---------------------- b) Defining the Target Audience (MARKET)

c) Understanding the Budget (MONEY) Notes
d) Understanding the Message (MESSAGE)
----------------------
e) Identifying the Media to be used for placing the advertisement
(MEDIA) ----------------------
f) Seeing whether the advertisement was Effective (MEASUREMENT) ----------------------
The above is commonly termed the 6 Ms of Advertising. ----------------------
a) The Mission statement would refer to the Aim of the advertisement.
Is it to improve sales, launch a new product, for recall, for some short ----------------------
term offers, to gain attention…? ----------------------
b) The Market analysis should incorporate the type of buyer one wants
to sell the product to. For a cosmetic company, it is but natural that the ----------------------
ad would show women and not men using the product. (But today, we ----------------------
have the metrosexual male and fairness creams!) For Horlicks, they
would show children enjoying the product. ----------------------
c) Money is the amount of budget constraint that the advertiser has, for ----------------------
allocating the money between different media and the expenditure to
be incurred. For example, Procter & Gamble may allocate Rs. 2 crore ----------------------
for the advertisement of Tide detergent, spread over one year.
----------------------
d) What to say, how to say, who will say it and what type of appeals are
to be given in the message is what Message formulation is all about. ----------------------
Shahrukh Khan being the spokesperson for Hyundai Santro, the
----------------------
colours used in the car, the movements of the car and what attributes
should be associated with it are a few of the elements to be kept in ----------------------
mind.
----------------------
e) Star Plus, Zee TV, Star Movies, Times of India, Radio Mirchi etc.
are a few of the platforms, where one could think of placing the ----------------------
advertisement. The people watching those media are very crucial to
----------------------
the success of your advertisement being seen by your target audience.
f) You have spent Rs. 5 crore on your advertisement but do you think ----------------------
that your sales has improved or do you think the people have seen the ----------------------
advertisement? Measurement is precisely the way in which to see
whether the advertisement has been effective or not. ----------------------
Advertising has a dark side to it too. The use of women to sell virtually ----------------------
everything and to have sexual overtures in an advertisement has been a
----------------------
contentious issue. Also, issues like showing one community in bad light
and using the message that if you do not use fairness cream you will not ----------------------
get married have come under the microscope of the ethics committee.
----------------------
Advertising involves lot of creativity and aptitude for marketing. To be
successful in this field, one has to keep one’s eyes and ears open. After all, ----------------------
great advertisements were not made in the think rooms. ----------------------
Notes 3. Does Advertising Work?
a) Does advertising work for any brand? Did advertising work for the
----------------------
BJP as well as it did for Pepsi or Coke? Did it work for the NDA or for
---------------------- the Congress, for that matter? Did it work for the Govt. of India? Did
the India Shining campaign work at all?
----------------------
b) If advertising does work, at what cost does it work?
---------------------- c) If advertising does work, in what medium does it work best?
---------------------- d) If advertising does work best, at a certain cost and in a particular
medium, what kind of creative execution works best?
----------------------
e) How can I, as an advertising manager, make my advertising process so
---------------------- efficient, that every time I advertise, my communication is effective…
every single time, without fail?
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Look at the Fair & Lovely MENZ ACTIVE campaign given here. How
---------------------- much would have been spent on this campaign?
---------------------- But the real question is not just how much was spent, but to what end? For
what purpose? And here we are not discussing what charitable purpose,
---------------------- but what advertising purpose? What measurable end-result was sought to
be achieved by this communication? Was it achieved? Was it measured?
----------------------
What was the communication/advertising objective of the campaign? Did
---------------------- the campaign have a target audience in mind or did they go for the entire
public? If entire public, then how about the non-metrosexual public? Did
---------------------- the campaign set out to impress them too? Why?
---------------------- How do you define your target audience?
---------------------- Can political communication/political advertising campaign objectives be
different from election objectives?
----------------------
Then, of course, there is the question of source of funds. Who provided
---------------------- the supposed Rs. 500 million INR? Whose money was spent? The party’s

money, the government’s money or the public’s money? is there a difference Notes
in these monies?
----------------------
Answers to these questions will establish the basis for all ADVERTISING
MANAGEMENT studies. ----------------------
Who is the Advertiser?
----------------------
Who is the advertising agency? Who chose the agency? On what specific
grounds? How is an agency chosen in the first place? What was the role of ----------------------
the client?
----------------------
How is an advertising agency chosen?
----------------------
Who was the ‘advertising manager’ of the advertising blitz?
And finally, when you say ‘my advertising is working’, what do you really ----------------------
mean? ----------------------
Questions like these must buzz in your mind, till they drive you to action
----------------------
or set your mind thinking.
----------------------
Check your Progress 3
----------------------
----------------------
1. The entire process of marketing is a communication process.
----------------------
2. Strategic brand communications takes into consideration all customer
groups that the brand is attempting to serve. ----------------------
3. The ultimate objective of advertising is to make the customer to lead ----------------------
to action of purchase.
----------------------
Activity 3 ----------------------
----------------------
Check the TV advertisements and list two ads which, you feel, are not
truthful and are unethical. Name them and list reason(s) of the false claims ----------------------
in the advertisements.
----------------------
----------------------
1.9 ADVERTISING AND ITS TYPES
----------------------
This section discusses different types of advertising that cater to different target
markets. ----------------------
Retail Advertising ----------------------
Before we discuss Retail Advertising, let us understand Retail ----------------------
Management. It is a very important part of the distribution process
----------------------
What is retailing? Philip Kotler defines retailing as all activities involved
----------------------
Notes in selling goods or services to the final customer, for personal use. In today’s
scenario, our retailer does not exist in the brick and mortar form alone. S/he can
---------------------- do it by using the telephone, by direct mails, by using television in the form
---------------------- of teleshopping networks, by using e-mails, through the Internet or absolutely
impersonally by using vending machines.
----------------------
Let us begin with the store form of retailing.
----------------------
Store retailing is the traditional form of retailing, wherein a customer
---------------------- physically goes to the store to buy goods or services.
---------------------- Some of the types of store retailing are:
---------------------- a. Specialty stores:
---------------------- This would typically specialise in selling one product. It has a highly
targeted market segment, which this type of retailing is trying to attract.
---------------------- However, some specialty stores also include allied products, targeted at the
same marketing segment.
----------------------
b. Department stores:
---------------------- A department store is a store where multiple items are stocked and sold.
These stores cater to all kinds of customer needs such as clothing, shoes,
---------------------- cosmetics, gift items, luggage and other household goods.
---------------------- c. Supermarkets:
---------------------- These are similar to department stores but with a focus on food and
household maintenance products. This is more of a self-service operation,
---------------------- wherein a customer picks what he wants directly from the shelves.
---------------------- d. Convenience stores:

The differentiating factors for these types of stores are that they are open
---------------------- for relatively long hours and, mostly, on all the days of the week, thus
making it accessible to the customer. Typically this kind of retailing stores
----------------------
would be located in residential areas.
---------------------- e. Discount stores:
---------------------- A discount store sells products at a lower price by reducing its own margins.
This type of stores target high volumes to ensure profitability.
----------------------
In India, retailing has caught up in a big way. Today, one finds the presence
---------------------- of huge retail stores like Crossroads, Shoppers Stop etc. which are doing
well. It has a bright future and looks all set to grow. Currently, it is an
---------------------- urban phenomenon, present in the metropolises like Mumbai, Delhi and
Bangalore. However this trend is moving into the smaller towns and these
----------------------
present the market of the future.
----------------------
----------------------
----------------------

Political Advertising Notes
Where does it appear?
----------------------
a) Political advertising includes communications that appear in pamphlets,
circulars, fliers, billboards or other signs, bumper stickers or similar forms ----------------------
of written communication.
----------------------
b) Political advertising includes communications that are published in
newspapers, magazines or other periodicals, in return for a consideration. ----------------------
c) Political advertising includes communications that are broadcast by radio ----------------------
or television, in return for a consideration
----------------------
The task of political advertising is a formidable one; that is, it reaches out to
the whole country. The campaign must have over a dozen advertisements. The ----------------------
mood of the people and the current scenario need to be taken into consideration.
Although rational appeals are not rejected, there is essentially an overdose of ----------------------
emotional appeal. Both negative and positive message is used. There could be ----------------------
major mud slinging too.
Product Advertising ----------------------
Within the context of the 4 Ps of marketing, we have Product. ----------------------

Be it an FMCG product or an industrial item, we need to understand that ----------------------
advertising plays an important role in promoting the product.
----------------------
Be it at any stage of the product life cycle, details of every product needs
to be communicated for varied reasons to its target customer, telling them why ----------------------
they ought to buy the product.
----------------------
A product has to be good and give satisfaction to the consumer. Only
then can it be considered that the advertising objective has been success. Even ----------------------
a bad product could be sustained in the market with good advertising, but what
matters in the long run is the ability of the product to stand out in the minds of ----------------------
the consumers. If the consumer knows the brand and the associated benefits, the ----------------------
advertising objective can easily be achieved. Needless to add, there will result
an increase in the sales. ----------------------
Product or brand knowledge, coupled with clear positioning, derived from ----------------------
a well-thought out marketing strategy, is essential to every successful advertising
program. The other elements in good product advertising are packaging, ----------------------
trademark and such other physical and psychic attributes of the product like
taste, colour, texture, aroma, style and design. The saleabilty influence of these ----------------------
product attributes is to be analysed before incorporating them in the advertising ----------------------
messages to be delivered through various advertising media.
Product advertising is of three types, namely: ----------------------
a) Pioneering or Informative advertising: Here an attempt is made to stimulate ----------------------

the primary demand of the product category rather than a specific brand. For
----------------------
example, the advertisement for Malaysia Tourism, with the picturesque TV
commercial and the slogan ‘Malaysia - Truly Asia’ made an indelible mark, ----------------------
Notes truly proving to be pioneering advertisement. Here the product category was
introduced first; it was educative in intent and it appealed to the consumer’s
---------------------- rational as well as emotional aspects. At the introductory stage of the Product
Life Cycle (PLC), this type of advertising is beneficial.
----------------------
Generating awareness is the main function of advertising here.
----------------------
b) Competitive or Persuasive advertising: Here, a selective demand of a
---------------------- specific product brand is stimulated. By now the product is established in
the market and has reached the maturity stage of the PLC.
----------------------
Competitive advertising is again of two types: Direct type, where it seeks
---------------------- to stimulate immediate buying action.
---------------------- Indirect type, where the benefit of the product is emphasised in the
anticipation of the consumer’s final action of buying.
---------------------- c) Retentive or Reminder oriented: The product has a firm footing in the
---------------------- market place, when sales may begin to decline at some point. The buyer
must be reminded about the product to sustain his loyalty. It is a soft sell
---------------------- approach, where the buyer is judged to continue the usage of the product.
The essence here is to keep the brand name in the eye of the viewer. Used
---------------------- at both the maturity as well as the declining stage.
---------------------- Now let us try to understand the types of products and thereby the advertising
needs of each.
----------------------
Products can be classified as under: Industrial Products, Consumer Products for
---------------------- direct consumption, Consumer durables, Consumer non durables.
---------------------- In the case of consumer advertising, the following points should be taken into
consideration:
----------------------
1. Most of them are in the competitive field and engaged in advertising.
---------------------- 2. Non-durables are frequently bought.
---------------------- 3. Non-durables are appliances, which serve for a long period of time.
---------------------- 4. Both rational as well as emotional appeals are used.
5. Use of celebrity endorsement is heavy.
----------------------
6. Forms a major chunk of advertising business.
----------------------
The salient points to be remembered in the case of industrial advertising are
---------------------- as follows:
---------------------- 1. It contributes a smaller percentage, as compared to consumer advertising.

2. It involves elaborate buying process.
----------------------
3. The main objectives of this class is to inform, get orders, stimulate queries,
---------------------- empanel the marketer’s name on the buyer’s panel of sources.
---------------------- 4. Trade journals and lay press are the most sought after media vehicles.
5. It seeks to build corporate image.
----------------------

6. Rational appeal is used here. The copy gives facts and figures. Notes
Service Advertising
----------------------
What do you mean by services? Listed below are essential points about what
constitutes a service: ----------------------
 Activities, benefits or satisfaction offered for sale ----------------------
 Intangible, inseparable, variable and perishable in nature. ----------------------
 Requires strict quality control, supplier credibility and adaptability.
----------------------
Specialised services like consulting (medical doctor) or in an advertising
agency are examples of advertising. They may talk about congenial environment, ----------------------
quickness and promptness of service, economy, exclusiveness and status
----------------------
significance. Hotels and airlines, when advertising their services, attach greater
importance to service with a smile, courtesy, thoughtfulness and claim that they ----------------------
offer a home away from home.
----------------------
Banks also advertise the services that they offer to their clientele, like
personalised banking, computer banking or maybe just the sheer experience of ----------------------
banking being a pleasure.
----------------------
Services like physical goods also use channels to make their output
available and accessible, e.g., the location of a particular hospital to cater to a ----------------------
particular catchment area. Promotion of services also emphasises the locational ----------------------
aspect. Retail services, which are growing at a good rate, use promotion as a
major tool. ----------------------
Corporate Advertising ----------------------
In this form of advertising, an institution presents its own story to build ----------------------
up an image of itself in the minds of the public. It is more like public relations
approach advertising. It could talk about how it is associated with a cause, like ----------------------
the Star TV Network putting the cause for girl child education in the forefront.
----------------------
It may emphasise its contribution to the society and it could also talk
about the mission of the organisation. This way, it could show all the products ----------------------
of the organisation, like the Hero Honda’s “Desh Ki Dharkan,” where all the ----------------------
brands of the organisation are shown. There are a number of such corporate
advertisements that you can come across. ----------------------
Institutional advertisement is very subtle in nature and affects our basic ----------------------
attitudes. It may build upon its history and may try to build awareness about
itself. The ad copy could be focused at the general public or may be directed ----------------------
towards a specific group, like its shareholders. Consider the example of the ----------------------
Hindustan Petroleum ad. The advertisement talks about powering India since
25 years, especially where locomotives are concerned. Hence, focusing on the ----------------------
fact that they power the Indian Railways. Or the Mahindra Inspired campaign.
----------------------
----------------------
Notes Corporate advertising is building a favourable image in the minds of the public.
It is more about telling the public how socially responsible they are. So their
---------------------- overall objectives are in tune with the social issues. The basis here is to create
goodwill in the minds of its internal as well as external customers. Goodwill
----------------------
generated thus will automatically impact the bottomline.
---------------------- The objectives of this type of advertising are:
---------------------- a) To make the company known.
---------------------- b) To make its products/services known.
---------------------- c) To make its achievements known.

d) To make its values known.
----------------------
e) To make socio-political/economic/moral statements.
----------------------
To give an identity to a faceless organisation is what institutional
---------------------- advertising does. When designing a corporate ad, we must pay heed to the type
of response that we want. It should ask for an approval and not any action from
---------------------- the target audience.
---------------------- Public Services Advertising
---------------------- “Do boond zindagi ki,” “School Chalen Hum,” “Mile Sur Mera
Tumhara,” are advertisements that have become very popular. During the
---------------------- Kargil war, there were a lot of advertisements, which focused on the Indian
soldiers fighting on the front. The advertisement was for the Prime Minister’s
----------------------
Fund for the Kargil war. These are examples of what public service advertising
---------------------- is all about powerful ad campaigns.
Well, that can be the power of a good advertisement. Do remember
----------------------
that public service advertising is identified with a national cause, even in the
---------------------- promotion of soap or insurance there could be elements of public service.
---------------------- There should be a thorough knowledge of the target market, especially if

we are talking about adult education, AIDS, national calamity relief fund, birth
---------------------- control etc. So keep the message short, dramatic and single minded.
---------------------- Financial Advertising

It is an advertising activity which is undertaken by companies, firms
---------------------- or organisations involved in financial markets, such as Unit Trust, Insurance,
---------------------- Building Societies, or Banks.
The media used for financial advertising is normally the print. The visuals
----------------------
used are graphics of turnover and financial data. Appropriate headlines should
---------------------- be framed in order to catch attention.
There are two types of advertisements in this context: One which focuses
----------------------
on the bigger picture and the other, on the nitty-gritty of an issue. Copy is based
---------------------- purely on the gains and financial aspects of the company.
----------------------

Financial advertising can also include quarterly or annual financial results Notes
of the company, AGM announcement, the Chairman’s speech or any other
information relevant to investors. ----------------------
An example of a Headline of financial ad: A quality product always ensures ----------------------
sweet returns.
----------------------
Global Advertising
----------------------
“The world is smaller than you think.” So goes the advertisement for British
Airways. ----------------------
We are living in a global village and now we are not just catering to the ----------------------
local environment but to a total global environment. What is global advertising?
“It is any paid form of non personal presentation and promotion of ideas, goods ----------------------
or services by an identified global sponsor of a product to a global customer.”
----------------------
Comparative Advertising
----------------------
Comparative advertising, as the name suggests, is advertising where a
party (the advertiser) advertises his goods or services by comparing them with ----------------------
the goods or services of another party. The other party is usually his competitor
and is often the market leader in the particular trade. The comparison is made ----------------------
with a view towards increasing the sales of the advertiser. This is typically done ----------------------
by either suggesting that the advertiser’s product is of the same or a superior
quality to that of the compared product or by denigrating the quality of the ----------------------
compared product.
----------------------
The more blatant form of comparative advertising refers to the product
by name and this is generally known as comparative brand advertising. ----------------------
However, using or referring to a specific trademark or brand name does not
always do this. Comparative advertising can, however, also occur without any ----------------------
use of the trademark at all. For example, a motorcar manufacturer might compare ----------------------
his product with the “luxury German cars” in the market. Captain Cook, for
example, when first launched in the Indian market, used an advertisement that ----------------------
made an overt reference to Tata Salt by showing a package that looked exactly
like it. As such advertisements do not contain any trademarks, they are not ----------------------
relevant to the law of trademarks, it may, however, constitute a breach of the ----------------------
code of ethics of the ASA (the Advertising Standards Agency)
----------------------
Comparative brand advertising does not have to be limited to the use of the
identical trademark, as imaginative advertisers will often rely on a play of words. ----------------------
There is also a possibility that comparative advertising could constitute
----------------------
infringement where the registered trademark is well known. A classic example
of comparative advertising constituting dilution would be “XYZ shoes, the ----------------------
Rolls Royce of shoes.”
----------------------
Accepting that Rolls Royce is a well-known trademark, the fact that
there is no similarity between shoes and motor vehicles would not preclude the ----------------------
proprietor of the trademark Rolls Royce from objecting to the use of its well-
known trademark in this context. ----------------------
Notes In conclusion, virtually any misuse of a person’s registered trademark in
advertising can constitute trademark infringement and advertisers are advised
---------------------- to be well aware of this fact.
---------------------- Although ASA has many laws governing advertising codes, a simple benchmark
that has often been held up in a court of law is that a business will be permitted
---------------------- to use the name of a competitor and describe the competitor’s products in an
ad, even though the comparison is likely to point out the competing product’s
----------------------
or services inferiority, as long as there is no likelihood that a consumer would
---------------------- believe the advertiser is also selling the competing product or service and as
long as the statements made are accurate.
----------------------
In a landmark case where a famous art critic stated that a particular
---------------------- painting was a forgery and the sale of that painting fell through, the critic was
sued successfully for the owner’s lost profits. It should be noted that for a
---------------------- disparaging remark to be actionable, it must be both untrue and believed by a
reasonable person. If the statement made was so outlandish as to be unbelievable,
----------------------
it is unlikely the owner whose product was disparaged will be able to prove
---------------------- any injury. Thus, if a car manufacturer claimed its competitor’s vehicle was
so poorly constructed that it literally fell apart within the first week of use, the
---------------------- likelihood is that this gross exaggeration would not be believed and, therefore,
would not be actionable.
----------------------
Disparaging of existing products is common in the Indian context,
---------------------- especially in the case of FMCG products where a crowded market forces
manufacturers to use comparative advertising to distinguish and differentiate
----------------------
their product from others. Ariel used its launch advertisement to portray a
---------------------- modern “bahu” who preferred a pinch of Ariel against a traditional mother-in-
law who preferred the “older” method of scrubbing with a cake of soap that no
---------------------- consumer had any difficulty recognising as Rin.
---------------------- Among the ads, the Everest Challenge Hai Dum ad for Thumbs Up, featuring
Akshay Kumar, was well made. Taking the viewers to a really cold place, the ad
---------------------- has the desired effect. But it is more interesting to watch the Mountain Dew spoof
---------------------- on the Thumbs Up ad. The Mountain Dew threesome hook the Akshay Kumar
look alike to a snow sledge and show him half dead at the end of the trip down the
---------------------- slope. Ending with lagta hai uncle ko hamari baat jum gayi, the message is clear:
bring in the young to look like the young. Well this is just the first of the anti-ad
---------------------- campaigns and one can imagine what to expect.
---------------------- a) What is the case for comparative advertising?
---------------------- All this does not mean that comparative advertising is not without its
advantages. What is the case for comparative advertising?
----------------------
One of the most effective methods for advertising a product is to compare it
---------------------- with competitive offerings. Side-by-side or “A-B” comparisons can provide
prospective customers with compelling reasons to buy from the company.
---------------------- They can also help build credibility for its product. Subconsciously, the
prospective customer says: “Who would risk making a direct comparison
----------------------
if they didn’t have something truly superior?”

Johnson and Johnson found this out the hard way, when Proctor and Gamble Notes
introduced Whisper with a direct comparison of the various features that
were new in their product, as opposed to Carefree without once naming ----------------------
Carefree directly.
----------------------
Comparative advertising is especially effective when the company
concentrates on unassailable and meaningful points of difference. ----------------------
If, for example, a product is fabricated with heavy gauge steel while a ----------------------
competitor uses aluminum or thinner gauge steel and durability and strength
are important sales issues, the company should show the difference and ----------------------
spell out the benefits. Let the facts speak for themselves.
----------------------
Comparison advertising gets tricky when the issues are not matter of fact.
For example, if a company displays its product alongside a competitor’s ----------------------
and claims it to be 35% faster, based on independent laboratory tests, it
----------------------
could be headed for a false advertising suit under the law. There have been
hundreds of cases in which the courts have found a claim to be invalid, ----------------------
based on some seemingly minor technicality such as a flaw in a comparative
testing. Intangible cases are harder to defend as well. Pepsi and Coke bear ----------------------
testimony to many legal battles – a controversy about a Pepsi spoof on the
----------------------
Coke model, Hrithik Roshan. An angry Roshan has been sued by Coke as
well as Pepsi. ----------------------
b) The basics ----------------------
i) Comparative advertising is a form of advertising in which two or more
recognisable brands of the same product class are compared and the ----------------------
comparison is made in terms of the product attributes. ----------------------
ii) The comparison could be implicit (brands implied but not named), or
explicit (brands named). It may be verbal or visual and the claims can ----------------------
be of complete superiority or superiority in some attributes but not on ----------------------
others, or of parity; and the advertised brand can have a market share
smaller than, roughly equal to, or greater than the brand compared. ----------------------
iii) Regulations and norms about comparative advertising are different in ----------------------
different parts of the world. Such ads are still not allowed in several
countries ----------------------
c) Effectiveness of Comparative Ads ----------------------
Is comparative advertising more effective than non-comparative ----------------------
advertising? Research has shown that greater effectiveness is often
equivocal. The results seem to vary not only upon the specific kind of ----------------------
comparative ad used and the brands involved, but also on the measure
of effectiveness used (attention/recall, perceived similarity or persuasion) ----------------------
and even the specific questionnaire scales used to measure effectiveness. ----------------------
The effectiveness of comparative ads sometimes lies not in raising the
preference ratings of the advertised brand, but in lowering the preference ----------------------
ratings of the comparison brands or even in simply increasing the perceived ----------------------
similarity of the advertised and comparison brands, without affecting any
Notes preference measures at all. It is thus important for copy testing or tracking
the effectiveness of comparative ads; for measuring preferences not only
---------------------- for the advertised brand but also for the brand compared; and for measuring
perceived similarities among these brands.
----------------------
If attention and recall are used as the measures for ad effectiveness, various
---------------------- studies have shown that comparative ads do usually get more attention
---------------------- and higher recall than non-comparative ads. Pontiac used comparative
advertising for its Grand Am in 1992, comparing it to the Toyota Camry
---------------------- and Honda Accord, because they found focus groups reacted more strongly
to comparisons with specific competitors than to unnamed imports. It was
----------------------
found the gain in recall was the highest if the comparison was “intense”
---------------------- (naming explicit competitors, making comparisons on specific attributes
and making a one-sided claim).
----------------------
d) Some areas of comparative advertising
----------------------
The increased information in comparative ads should be beneficial to
---------------------- consumers and increase the chances for better decision making.
However, it has been found that comparative advertising that names
----------------------
competitors can lead to greater consumer confusion about which brand
---------------------- is sponsoring the ad (thus creating awareness and preference for the
compared-to brand), especially if the ad is being run on the TV or radio.
----------------------
Indeed, the frequent occurrence of such “sponsor misidentification” is one
---------------------- of the major criticisms against “direct” comparative advertising (where the
---------------------- comparison brand is explicitly named). Therefore, many companies prefer
to run indirect comparative ads, in which they do not name comparison
---------------------- brands directly but imply them by showing packaging colours or shapes
(such as Coke & Pepsi).
----------------------
e) Leaders vs. Followers
----------------------
Interestingly, research supports the logic that a direct comparative ad from
---------------------- a small-share market follower is least likely to lead to higher awareness
for the compared-to market leader (because the market leader already has
----------------------
high awareness). Whereas, a high-share brand leading the market, has a lot
---------------------- to lose from a direct comparative ad (by creating “free” awareness for the
smaller brand).
----------------------
Hence, low-share brands ought to use direct comparative ads; market
---------------------- leaders should use non-comparative or indirectly comparative ads that do
not name the competitors.
----------------------
Comparative advertising was much more effective than non-comparative
---------------------- advertising in increasing the perceived similarity of the challenger and
leader brands, particularly when the leading brand was explicitly named in
----------------------
the ad.
---------------------- However, while comparative advertising did bridge the perceived “distance”

between the “leader” and the “challenger” brand, it did not significantly Notes
raise the leaning towards the advertised brand.
----------------------
Many studies have failed to identify such attitude-enhancing effects of
comparative advertising. These failures could be, due to the fact that these ----------------------
studies often failed to measure (and could not therefore find) possible
decreases in consumers’ attitudes toward the comparison brand. ----------------------
Studies have also been shown that comparative ads often fail to sway ----------------------
attitudes and preferences because, while people may indeed notice them
more, they nonetheless may consider a comparative ad offensive, less ----------------------
credible and less informative (especially if they happen to like the brand ----------------------
being shown in a negative light).
----------------------
Consumers’ liking for a brand does increase as a result of comparative
advertising, but only up to a certain point. ----------------------
f) Two-sided vs. One-sided comparative Ads ----------------------
Comparative advertising can be one-sided or two-sided. A message is one-
----------------------
sided if it presents only positive arguments or attributes and two-sided if a
few qualifications, usually about relatively minor attributes, are presented. ----------------------
Two-sided ads are considered more credible because they admit that the
advertised brands have some shortcomings. ----------------------
Two-sided ads are especially credible, when the attribute on which the ----------------------
weakness is admitted is –
----------------------
(i) Relatively unimportant, but not trivial, to consumers;
----------------------
(ii) Perceived to be negatively correlated with the attribute on which
superiority is claimed (e.g., “We are more expensive (weakness), ----------------------
but only because we give you higher quality”).
----------------------
(iii) One that would not otherwise be known to the consumer, prior to
purchase, so that the advertiser gains some “brownie points” for ----------------------
honesty.
----------------------
It has also been seen that the two-sided approach, appeals to the educated
audiences, and with those consumers initially opposed to the brand making ----------------------
the claims. Noticeably there is a shift in the up to attitude, though it does
----------------------
not seem to have had any effect on purchase intentions.
These results suggest that comparative ads are more likely to be persuasive ----------------------
in changing brand attitudes if they are two-sided rather than one-sided.
----------------------
g) Open-ended vs. Close-ended comparison
----------------------
Another relevant issue is whether conclusions and arguments should be
spelled out explicitly in a comparative advertisement or whether the receiver ----------------------
should be left to draw his or her own conclusions about the superiority of
the brand sponsoring the comparison. It is often advantageous to leave ----------------------
something out of a message. ----------------------
Notes Leaving something out can stimulate curiosity, motivation to seek
additional information about the brand and lead to a consumer-generated
---------------------- belief that is relatively more powerful than a belief created by an explicit
statement in the ad. However, there is some risk in assuming that a receiver
---------------------- will draw his own conclusions.
----------------------  There is a significant chance that the audience will not be motivated
or will be unable to draw their own conclusions.
----------------------
 There is the risk of wrong conclusions being drawn.
----------------------
If the audience is involved in the message, and if the message is one where
---------------------- a conclusion can be easily drawn, an open-ended message leads to greater
brand attitudes, intentions and choice.
----------------------
It was found that comparative ads gain in relative effectiveness when
---------------------- aimed at more expert consumers and when the comparison made was with
specific, well-known brands.
----------------------
Consider the famous Coke-Pepsi comparative campaign or the Mountain
---------------------- Dew Vs Sprite or Santro Vs others campaigns.
---------------------- Who are the gainers here?
Did the challenger brand achieve whatever it had set out to achieve?
----------------------
---------------------- 1.10 DIGITAL ADVERTISING

---------------------- How to Advertise Online
---------------------- As of today, there are over 4 billion people using the internet. This number
is up 300% from 2005. Internet usage is skyrocketing, and it’s not stopping.
----------------------
If you’re not advertising online, you’re behind the curve. As online
---------------------- advertising offers you direct access to more than half the global population —
including more than half of your target audience — but it also provides so many
---------------------- different advertising types and channels on which to advertise.
---------------------- Marketers now have the flexibility to reach their target audiences on multiple
fronts, in multiple ways, for multiple budgets. There are also a number of tools
---------------------- (many of which are free) that can help you execute your advertising strategy.
---------------------- Here are the most common ways to advertise online:
---------------------- 1. Paid Search Advertising

Whether Google, Yahoo, or Bing, all search engines have their own paid
----------------------
advertising. This is referred to as pay-per-click, or PPC, and involves
---------------------- bidding on keywords and placing ads at the top or sides of search results.
When someone performs a query using one of those search engines,
----------------------
advertisers have the ability to display ads above organic search results.
---------------------- That’s what makes PPC so powerful — it gives your advertisements
prime real estate in front of people already searching for relevant topics.
----------------------

Here’s an example on Google: Notes
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The top listings in the red box are advertisements. Organic search results,
those that came up as a result of SEO, were below the map snippet. ----------------------
Social Media Advertising ----------------------
Social media platforms know how valuable their content is, and that’s
----------------------
why they offer the option to sponsor or boost posts. Social media ads> put your
message in front of your target audience and encourage them to engage, click- ----------------------
through, and buy.
----------------------
More and more, social media sites are prioritizing ad space over organic
content because, well, it brings in more revenue. ----------------------
Whether you’re a budding or brand new business, consider running some ----------------------
social media advertisements. These will not only advertise your products and
services but also promote your social media pages and grow your following. ----------------------
Platforms like Facebook, Instagram, LinkedIn, and Twitter each have ----------------------
their own version of ads like these.
----------------------
----------------------
----------------------
Notes Here’s how they appear on their respective feeds:
Facebook
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Instagram Notes
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Native Ads and Sponsored Content Notes
Sponsored content has been around since 1922, when brands would
----------------------
sponsor entire radio shows. Today, sponsored content refers more to native ads
and blog or article content subsidized by brands. Native ads are cohesive with ----------------------
surrounding content and easily blend into any design. This creates a seamless
experience that doesn’t disrupt the customer journey. There are a ton of tools ----------------------
like Taboola that specialize in native ads to help get you started.
----------------------
Have you ever read a Buzzfeed article that heavily referenced or
recommended a certain product or service? It was likely sponsored by a certain ----------------------
brand.
----------------------
Check out this article, 10 Reasons To Put Away Your Phone On Your Next
Trip, promoted by agoda, a hotel or destination booking site. Does it blatantly ----------------------
promote agoda’s services? No. Its primary purpose is to entertain and inform,
----------------------
although agoda is referenced a few times throughout the content.
At the top, the byline reflects agoda’s sponsorship, just before the content ----------------------
starts. And, as you scroll down the page, another ad sits within the content. ----------------------
Sponsored content is a great way to promote your brand in content your
audience is already familiar with. ----------------------
Banner and Display Ads ----------------------

Banner and display ads are an extension of search ads and follow a similar ----------------------
PPC model. But instead of a text-based ad, consumers see a more visual
advertisement. ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Banner ads are typically the horizontal boxes on top of a web page, ----------------------
whereas display ads are smaller in nature and shown on the side (like in the
screenshot above). ----------------------
Whether you opt for traditional print ads in magazines or subway stations ----------------------
or choose online promotion on social media or search engines, there are a few
rules that make for great advertising. Below are some advertising best practices ----------------------
to apply to all your ads. ----------------------
Notes
Case Study
----------------------
The Pepsi challenge
----------------------
One other Pepsi strategic move, in the mid seventies, called the “Pepsi
---------------------- Challenge,” involved blind taste tests between two unnamed colas. In the tests,
tasters preferred Pepsi over Coke in a 3:2 ratio, a fact which was trumpeted in
---------------------- television commercials.
---------------------- Was the strategy good? Good strategy? Perhaps, because it exploited a
weak point in the competitive product. Since Pepsi is about 9 per cent sweeter
---------------------- than Coke, the first test favoured Pepsi. But a second front to the major Pepsi
---------------------- effort proved to be wrong. Why was it so? A No. 2 product cannot afford two
campaigns. But Coca-Cola too did the one thing that a leader should never do.
---------------------- After years of fighting the Pepsi challenge, Coca-Cola suddenly and publicly
changed their formula to match the sweetness of Pepsi.
----------------------
In one stroke, Coca-Cola had undermined its own position. The issue
---------------------- was not whether to change the formula or not. The issue was whether or not
to announce the change. To many companies “new, improved” is a marketing
---------------------- way of life. What makes the Coca-Cola situation different is its “real thing”
---------------------- position. In a rapidly changing world, the taste of Coca-Cola was a constant that
reassured consumers that they weren’t getting older. The loss of the Coke bottle
---------------------- was bad enough. Now the formula was gone too.
---------------------- In India, after the Hrithik Roshan campaign, endorsing Coke, Pepsi
released an ad parodying the Coke ad.
----------------------
Do you think this was good strategy for Pepsi?
----------------------
Summary
----------------------
• Advertising is a form of mass communication, a powerful marketing
---------------------- tool, a component of the economic system, a means of financing the
---------------------- mass media, a social institution, an art form, an instrument of business
management, a field of employment and a profession.
----------------------
• Advertising is different from propaganda, publicity or marketing.
---------------------- • Advertising as a discrete form is generally agreed to have begun with
newspapers, in the seventeenth century, which included line or classified
----------------------
advertising.
---------------------- • Simple descriptions, with prices of products, served their purpose until
the late nineteenth century, when technological advances meant that
----------------------
illustrations could be added to advertising.
---------------------- • The Industrial Revolution, growth of media and advent of technology –
---------------------- all contributed to the evolution of advertising as a profession and a line of
business.
----------------------

• The evolution of marketing and advertising is happening today in a Notes
world that is increasingly dominated by technology. Markets and media
are beginning to fragment, yet they are creating greater challenges ----------------------
for advertisers. Individuals are both isolated and at the same time
interconnected with virtually the whole world via computers. Advertising ----------------------
has, for a long time, been based on a one-to-many communications ----------------------
model. New technology offers the possibility of a computer-mediated
environment, in effect, a virtual world. The international and Indian ----------------------
scenario reflects this sea change that is taking place.
----------------------
• There are many benefits and criticisms against advertising.
----------------------
• Advertising is related closely to marketing too. Be it personal selling,
sales promotion, publicity or even public relations, advertising plays a ----------------------
significant role in reaching out to the target audience. It is a part of the
entire marketing communications for that brand. ----------------------
• To communicate, persuade, influence and lead to some action is what ----------------------
advertising is all about.
----------------------
• The communication process that the business of advertising typically
goes through is formulated into the AIDA (Attention, Interest, Derive and ----------------------
Action) model.
----------------------
• There are different types of advertising that cater to a certain target markets
such as retail, political, product, services, corporate, pubic services and ----------------------
financial. Comparative advertising is in a category of its own.
----------------------
Keywords ----------------------
●● Account Executive (AE): 1. (advertising definition) The person in an ----------------------

advertising agency who serves as the principal contact with a specific
----------------------
agency client (or more than one client) and coordinates the work of
agency staff members assigned to those client(s). 2. (sales definition) A ----------------------
salesperson who has responsibility for the overall relationship between
his or her firm and a few major accounts. Comment: An account executive ----------------------
coordinates financial, production, and technical capabilities of the firm to
----------------------
satisfy the needs of the account.
●● Ad: The name used to indicate an advertising message in the print media. ----------------------
●● Advertiser: The company, organization or individual who pays for ----------------------
advertising space or time to present an announcement or persuasive
message to the public. ----------------------
●● Advertising: The placement of announcements and persuasive messages ----------------------

in time or space purchased in any of the mass media by business firms,
non profitable organisations, government agencies, and individuals who ----------------------
seek to inform and/ or persuade members of a particular target market or ----------------------
audience about their products, services, organisations, or ideas.
----------------------
Notes ●● Advertisement: Any announcement or persuasive message placed in the
mass media in paid or donated time or space by an identified individual,
---------------------- company, or organisation.
---------------------- ●● Unique Selling Proposition (USP): An approach to developing the
advertising message that concentrates on the uniquely differentiating
---------------------- characteristic of the product that is both important to the customer and a
unique strength of the advertised products when compared to competing
----------------------
products.
---------------------- ●● Ad elements can aid recall: Unrelated, Nonverbal Ad elements can
aid recall. Multimedia advertisements often use nonverbal auditory and
----------------------
visual elements for the use of auditory and visual elements in multimedia
---------------------- advertisements.
●● AIDA: Attention, Interest, Desire, Action. An approach to understanding
----------------------
how advertising and selling supposedly work. The assumption is that the
---------------------- consumer passes through several steps in the influence process. First,
Attention must be developed, to be followed by Interest, Desire, and
---------------------- finally Action as called for in the message.
----------------------
----------------------
1. Discuss four types of advertising and their features.
----------------------
2. List five benefits of advertising.
----------------------
3. List five criticisms against advertising.
---------------------- 4. What does the term “Ad Spends” mean?
---------------------- 5. Find out the top ad spenders in the Indian business industry and comment.
---------------------- 6. What is the difference between advertising, public relations and

propaganda?
----------------------
7. What are the salient features of consumer advertising?
---------------------- 8. What are the salient features of industrial advertising?
---------------------- 9. Comparative advertising can be of two types. What are they?
---------------------- Answers to Check your Progress

----------------------
---------------------- 1.
Propoganda is the means of making known in order to gain support for an
opinion, creed or belief.
----------------------
----------------------
----------------------

State True or False. Notes
1. True
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2. True
----------------------
State True or False. ----------------------
1. True ----------------------
2. True ----------------------
3. True
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1. True ----------------------
2. True ----------------------
3. True ----------------------
----------------------
Suggested Reading
----------------------
1. Clown, Kenneth and Bach, Donald. Integrated Marketing Communications.
2. Belch & Belch. Advertising and Promotions. Tata McGraw Hill ----------------------
3. Batra, Rajiv. Myers, John G; Aaker, David A. Advertising Management. ----------------------

PHI
----------------------
4. Irwin. International Edition - Contemporary Advertising. McGraw Hill
----------------------
5. Duncon. Integrated Marketing Communications. Tata McGraw Hill
6. Chunawalla, S.A. Sethia, K.C. Foundations of Advertising Theory & ----------------------
Practice. Himalaya Publishing. ----------------------
7. Kotler, Philip. Advertising Management.
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Objectives of Advertising, Planning and Decision Making
UNIT
2
Structure:
2.1 Introduction
2.2 Objectives of Advertising
2.3 Defining Advertising Objectives
2.4 Functions of Advertising
Summary
Keywords
Suggested Reading
Objectives of Advertising, Planning and Decision Making 39

Notes
Objectives
----------------------
----------------------
• Describe the goals and objectives of advertising.
----------------------
• Define different types of objectives.
---------------------- • Explain how to formulate the objectives.
---------------------- • Discuss how the objectives are linked closely with the communication
process.
----------------------
• Illustrate the scope and functions of advertising.
----------------------
2.1 INTRODUCTION
----------------------
---------------------- Advertising is an all-pervasive facet of most growing communities.

a) The social and economic impact of advertising has been a subject of
----------------------
continuous controversy. It has been a means of tapping into the culture. It
---------------------- has always been a mirror and a motivator.
---------------------- The role of advertising has not changed since the mid-1800s. What has
changed is the presence of advertising in our lives. What was the peripheral
---------------------- is now unavoidably central.
---------------------- b) Advertising plays a crucial role in creating the image of a brand, since it is
a direct communication outlet. Through advertising, the brand generates its
----------------------
structure as well as content and builds up consumer behaviour which results
---------------------- in the purchase of the particular brand. Brand image is more dependent on
symbolic image value than the reputation of product attributes.
----------------------
Brand equity, both arbitrary and planned, dissolves rapidly in today’s
---------------------- competitive marketplace and thus requires constant support. Advertising is
---------------------- the key to the maintenance of the brand image. For effective and successful
branding and for widespread awareness and acceptance, repeating the
---------------------- brand image is necessary. This might be considered one of the reasons
---------------------- for the trend of creating ad series such as the Taco Bell Dog Ads and the
Budweiser “Wassuuup” Ads.
----------------------
c) Advertising is perhaps the only medium where fantasy and myth come
---------------------- together to create the kind of magic symbolism entails. Is it possible
to qualitatively explain the charm of the Amul girl? Or the impishness of
----------------------
Gattu (that Asian Paints has now discarded). Or even the Onida devil that
---------------------- has emerged in the new avatar. Can you rationally explain why you are a
Nike person rather than a Gucci one? These are questions that should be
----------------------
answered, with an open-minded research objective.
----------------------

Take a close look at the ads given below: the CNN-IBN, Videocon and Amul Notes
ads. Do you see an image of the brand emerging?
----------------------
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Notes 2.2 OBJECTIVES OF ADVERTISING
---------------------- Advertising is a part of promotional mix.
---------------------- Therefore, the objectives of advertising will be set in line with the overall
promotional and marketing objectives, which in turn will relate to the
---------------------- organisations’ overall corporate objectives.
---------------------- What are Advertising Objectives?

There are three main categories of advertising objectives – to Inform, Persuade
----------------------
or Remind the target audience.
---------------------- It is important to set clear objectives for an advertising campaign, whether it
is intended to generate leads or encourage brand switching. These objectives
----------------------
should be in place well before a campaign begins, to ensure that each campaign
---------------------- has a specific task. The results should be measurable, in order to ensure that the
campaign is worth the marketing investment.
----------------------
a) Inform
---------------------- Informative advertising seeks to tell the market about the product, explain
---------------------- how the product works, provide information on pricing and build awareness
of both the product and the company. Such objectives are normally pursued
---------------------- at the launch of a new product or re-launch/up-date of an existing product.
---------------------- b) Persuade
The objectives are to encourage the target audience to switch brands, make
---------------------- the purchase, and create a preference in the market for the product, as
---------------------- opposed to its competition. Advertising of this nature is required in highly
competitive markets, where a range of products compete directly with each
---------------------- other. In such circumstances, businesses often seek to differentiate their
products through Comparative Advertising, either directly or indirectly,
---------------------- comparing its product with that of its competitors.
---------------------- c) Remind
---------------------- Reminder advertising is used to maintain interest and awareness of a well
established product in the market, often in the latter stages of its product life
---------------------- cycle. It is often used at the Point-of-Purchase (POP) to remind consumers
of the brand. Such advertising is used by the likes of Coca-Cola and other
----------------------
leading brands, to maintain their position in the market.
---------------------- Understanding Objective-setting
---------------------- Advertising is a method of communication with a specified objective.
---------------------- Essentially setting objectives centres around what our basic aim is. It answers
the question: What do we want to achieve in our advertising plan?
----------------------
The objectives of advertising are grouped as sales objectives (measured in
---------------------- terms of increase in sales, increase in market share and return on investment)
and communication objectives.
----------------------

The communication objectives of advertising can be grouped into the following: Notes
a) Building awareness (informing)
----------------------
The first task of any advertising is to make the audience appreciate the fact
that the product or service exists and to explain exactly what the product or ----------------------
service is.
----------------------
b) Creating favourable attitudes (persuasion)
----------------------
The next stage and the one that preoccupies most advertisers is to create a
favourable attitude to the brand, which will eventually lead the consumers ----------------------
to switch their purchasing pattern.
----------------------
c) Maintenance of loyalty (reinforcement)
One of the tasks which is often forgotten is that of maintaining the loyalty ----------------------
of existing customers, who will almost always represent the main source ----------------------
of future sales.
----------------------
There are general objectives of advertising, which cover goals like encouraging
increased consumption of a product by current users, generating more sales ----------------------
leads, increasing brand awareness, increasing repeat purchases and supporting
the personal selling efforts. ----------------------
Some broad advertising goals ----------------------
Some of the broad advertising goals are discussed below: ----------------------
a) Launch of New Products and Services
----------------------
In a saturated market, the introduction of new products and brands can give
the seller tremendous opportunity for increasing his sales. In the case of ----------------------
innovative products such as Laptop computers, a great deal of advertising
has to be done over an extended period of time, to make the people aware of ----------------------
 What the product is ----------------------

 What it does ----------------------
 How the customers will find it useful
----------------------
In addition, the advertisement also carries information about the availability
of the product and the facilities for demonstration/trial etc. ----------------------
Similarly, new brands of existing product categories are also promoted ----------------------
quite aggressively. Two recent examples are the launching of “Pepsi Blue”
----------------------
soft drinks during the World Cup and the launch of “Mountain Dew” in the
subsequent period. ----------------------
b) Expansion of the market to include new users ----------------------
Advertising can be used to tap a new segment of the market, hitherto left
----------------------
unexplored. For example, TV and video camera manufacturers who have
been concentrating on domestic users and professionals can direct their ----------------------
advertising to the government institutions and large organisations for
----------------------
closed circuit TV networks, security systems and educational purposes.

Notes Another way of expanding the consumer base is to promote new uses of the
product. For example, Johnson’s baby oil and baby cream were originally
---------------------- targeted towards mothers. The same products have now been directed
towards the adult market for their personal use. Similarly, Milkmaid was
----------------------
originally promoted as a substitute for milk. It is now being advertised as
---------------------- an ingredient for making sweet dishes and also as a sandwich spread for
children.
----------------------
c) Announcement of a product modification
----------------------
For such advertising, generally, the terms “new”, “improved”, “Excel” etc.
---------------------- are used as prefixes to the brand name. For example, “Surf Excel” gives
the impression of an advanced detergent powder, although there may be no
----------------------
tangible difference between the earlier brand and the new one. Sometimes,
---------------------- the customer might see a minor packaging change, as happened in the case
of Nescafe.”
----------------------
d) Announcement of a special offer
----------------------
Because of competition, slack season, declining sales, etc. advertising
---------------------- is used to make a special offer. For example, the Colgate Dental Cream
campaign about 20% extra was to increase volumes through a sales
----------------------
promotion campaign. Hotels offer special rates during off-season.
---------------------- Similarly, many products like room heaters, fans, air-conditioners, etc.
offer off-season discounts to promote sales.
----------------------
e) To announce the location of stockists and dealers
----------------------
To support dealers, to encourage selling of stocks and to urge action on
---------------------- the part of readers, space may be taken to list the names and addresses of
stockists and dealers.
----------------------
f) To educate customers
---------------------- Advertisement of this type is more informative than persuasive. This
technique can be used to show new users a well-established product. It can
----------------------
also be used to educate the people about an improved product e.g. Pearl Pet
---------------------- odour free jars and bottles.
---------------------- Sometimes societal advertising is used to educate people on the usefulness

or harmfulness of certain products. For example, campaigns against unsafe
---------------------- sex and AIDS are sponsored by government and voluntary agencies.
Similarly, advertisements discourage the consumption of liquor and drugs.
----------------------
g) Reminder campaigns
----------------------
This type of advertising is useful for products, which have a high rate of
---------------------- repeat purchase, or those products that are bought frequently e.g. blades,
cigarettes, soft drinks etc. The advertisement is aimed at reminding the
---------------------- customer to ask for the same brand again. The campaign of “Dil Maange
More” during television breaks of cricket matches was aimed at creating a
----------------------
top-of-mind recall.

h) To seek dealer cooperation and motivation Notes
A successful retail trader depends upon quick turnover, so that his capital
----------------------
can be reused as many times as possible. Dealer support is critical,
particularly for those who have limited shelf space, for a wide variety of ----------------------
products. Advertisers send “display” material to dealers for their shops,
apart from helping the retailer with local advertising. ----------------------
i) To create brand preference ----------------------
This type of advertising does two things: firstly, it creates a brand image or
----------------------
personality and secondly, it tells the target audience why Brand X is better
than Brand Y. In this type of advertisement, the product or brand acquires a ----------------------
‘personality,’ which is associated with the user and which gives the brand a
distinctive ‘image.’ The second type of advertising, known as comparative ----------------------
advertising, takes the form of comparison between two brands and proves
----------------------
why one brand is superior.
j) Other objectives ----------------------
Advertising also helps to boost the morale of the sales people in the ----------------------
company. It makes the sales people happy to see large advertisements of
their company and its products. They are proud of it. ----------------------
----------------------
2.3 DEFINING ADVERTISING OBJECTIVES
----------------------
An advertising objective is a communication objective. “An Advertising goal is
a specific communication task, to be accomplished among a defined audience, ----------------------
to a given degree in a given period of time.” ----------------------
Defining advertising objectives
----------------------
To define advertising objectives, one needs to take three elements into
consideration, in a sequential order - ----------------------
a. The product and its virtues. ----------------------
b. The competition. ----------------------
c. The segment of the market aimed at. ----------------------

All of these should be set down in the marketing objectives. ----------------------
Step I : Define the audience, issues like social class, income, occupation, ----------------------
values, ambitions and attitudes to a product.
Step II : Define the stage of the communication task. What is the specific ----------------------
communication task? Communication is the process of acting ----------------------
on the mind of the audience. Create a state of mind conducive to
purchase. ----------------------
Step III : Define consumer preference or resistance. What do consumers ----------------------
like about the brand? What do they dislike? Conduct a study of
consumer attitudes. ----------------------

Notes Step IV : Define the product promise or claim.
1. It must be meaningful and of value to the consumer.
----------------------
2. It must be a distinctive, unique claim or Unique Selling
---------------------- Proposition (USP).
---------------------- 3. It must concentrate on this unique claim or the USP.
---------------------- Step V : Define the brand image: What will be the brand’s ‘Personality?’ In
other words, what character or association should it evoke?
----------------------
The answer to the issues mentioned above will set the path for moving ahead
---------------------- towards setting objectives. The important thing to understand about setting
advertising objectives is that most advertisers do not set sensible ones.
----------------------
Many advertisers are not sure whether their advertising is paying off. If you ask
---------------------- them to comment on their campaign, they are likely to say, “The people like
it very much” or “It’s a bit too early to tell, but we think it’s going to be very
----------------------
successful.”
---------------------- The truth is that, whether you are spending Rs 20 lakhs or Rs 20 crores, you
ought to be able to tell with a much greater degree of accuracy what it is doing
----------------------
for you. Otherwise, should not be spending it. To do this, you need parameters
---------------------- that can be measured, such as increasing advertising objectives with specific
goals, share of mind or brand awareness.
----------------------
Advertising campaigns are like military campaigns. In a military campaign, you
---------------------- set an objective. “March through McMohan Line.” When the campaign is over,
you know whether you have won or lost. Successful advertising campaigns
----------------------
have the same kind of criteria. Insist on an attainable objective as a prerequisite,
---------------------- in order to be able to decisively know whether you are winning or losing.
---------------------- Influence of Life Cycle

The objectives of advertising depend on the state of the life cycle of the product.
----------------------
a) The Introduction Phase:
----------------------
Advertising differentiates the product.
---------------------- b) Rapid Growth:
---------------------- Advertising establishes participation with the marketplace.
---------------------- c) Maturity:
Advertising puts price ahead of the competition.
----------------------
d) Decline:
----------------------
Defensive advertising or advertising calls for revitalisation
----------------------
----------------------
----------------------

Notes
----------------------
Fill in the blanks.
----------------------
1. Through advertising, the brand generates its structure as well as
_______. ----------------------
2. For effective and successful branding and for widespread awareness ----------------------
and acceptance, ________ the brand image is necessary.
----------------------
1. The objectives of advertising are generally grouped as sales objectives ----------------------
and communication objectives.
----------------------
----------------------
Activity 1
----------------------
Check the TV advertisements for a social service or an advertisement issued
----------------------
in public interest by the government. Make a list of its objectives. Is the
message able to convey the objective? What more could be done to improve ----------------------
the advertisement?
----------------------
2.4 FUNCTIONS OF ADVERTISING ----------------------
Advertising is a branch of marketing, because advertising is one of the ----------------------
functions of marketing.
----------------------
Advertising plays an important role in the marketing process and aims at
achieving the marketing objectives. ----------------------
Therefore, marketing objectives cannot be established without considering
----------------------
the organisational objectives of the business, i.e., maximisation of profits. These
two important objectives should be achieved simultaneously. ----------------------
The advertising activity focuses on the analysis, planning, control and ----------------------
decision making activities of the core institution advertiser, for achieving the
marketing and organisational objectives. For this purpose, the advertiser directs ----------------------
and supports the development of advertising and media space and time.
----------------------
Many other institutions are also involved in the process, such as facilitating
and control institutions agencies research suppliers, the media, the government ----------------------
and the competition. The management controls and directs all these activities
relating to advertising. ----------------------
What are the functions of advertising? ----------------------
Advertising is the study of a system ----------------------
Advertising is a study of the system of interacting organisations and
institutions that play a role in the advertising process. At the core of this system ----------------------
are the advertiser, the organisations and institutions that provide financial ----------------------
resources to support the advertising program.

Notes Advertisers may be public sector or private sector organisations, which
use the mass media to accomplish the objectives of the organisations. It is,
---------------------- therefore, a decision to invest funds in purchasing time and space in mass media
such as radio, television, magazines or newspapers that basically distinguishes
---------------------- advertisers from non-advertisers, because advertisers use mass media whereas
---------------------- non-advertisers do not.
Advertising management is focused heavily on the analysis, planning,
----------------------
control and decision-making activities or process of this core institution –
---------------------- advertiser. The advertiser provides the overall managerial direction and financial
support for the development of advertising and the purchase of media time and
---------------------- space, even though many other institutions are involved in the process.
---------------------- A focal point is the development of an advertising program or plan for
the advertiser. For an advertiser who produces several products or services
---------------------- of different kinds, a program for each product and service may be developed
separately. The resulting advertisement is usually aired or displayed or printed
----------------------
several times on the media and the resulting schedule of exposure is referred to
---------------------- as an advertising campaign.
The development and management of an advertising campaign associated
----------------------
with an advertiser’s brand, product or service is thus a major point of departure
---------------------- for the advertising management.
---------------------- Thus, advertising management is one of the management functions that

relates to planning, organising, directing, controlling and decision-making of
---------------------- the advertising program or plan.
---------------------- In the words of David A. Aaker and John G. Myers:

“The field of advertising management is made up of a system of interacting
---------------------- organisations and institutions, all or which play a role in the advertising process.”
---------------------- Based on this definition, the advertising management may be defined as
the process which includes the analysis, planning, control and decision-making
----------------------
activities of the core institution - the advertiser. It also includes the interacting
---------------------- organisations and institutions, which affect the advertising process.
Major institutions of advertising management
----------------------
The focal point of advertising management is the development of an
---------------------- advertising program or plan for the advertiser.
---------------------- The resulting advertisement is usually aired or placed several times and
the resulting schedule of exposure is referred to as an advertising campaign. In
---------------------- developing an advertising campaign, the advertiser has to deal with several other
---------------------- institutions, which play an important role, apart from his own organization.
There are three types of major institutions.
----------------------
1) The advertiser
----------------------
2) Facilitating institutions that help the advertiser in his advertising campaign,
---------------------- such as the advertising agency, the media and the research suppliers

3) Control institutions that interact with the advertiser’s decision-making Notes
activities in numerous ways. The central government and competition are
two main control institutions. ----------------------
The Advertiser ----------------------
The advertiser is the core institution in the field of advertising management.
----------------------
The total expenditure by all the advertisers in the country provides the basis for
determining the size of the advertising industry. Total expenditure involves the ----------------------
expenditure by all advertisers in all media (radio, TV, magazines, newspapers
etc.). However, it does not include the amount of non-paid advertisement by ----------------------
non-profit organisations and classified advertisements in local newspapers,
----------------------
purchased by non-business persons.
a) Advertisers may be classified as small or large, according to the degree to ----------------------
which they use the facilitating institutions. ----------------------
i) Typical large national advertisers are those who buy time and space
----------------------
under contract, through one or more advertising agencies and buy
numerous research services, as well as conduct research on their own. ----------------------
In general, they make full use of the advertising system.
----------------------
ii) Small-scale advertisers, on the other hand, use only parts of the
system, owing to their limited resources. They include private citizens ----------------------
and local small-scale advertisers. Sometimes they buy media time and ----------------------
space directly and do not use an advertising agency or the services of
a research supplier. ----------------------
b) Advertisers may also be classified on the basis of the markets that they ----------------------
serve, the goods and services that they produce and the media that they
----------------------
use. On this basis, they may be consumers, industrial and retail advertisers.
----------------------
i) Consumer advertisers are those that manufacture consumable goods –
durable or non-durable – and services. ----------------------
ii) Industrial advertisers predominantly manufacture market products for ----------------------
industrial market.
----------------------
iii) Retailers advertise locally for store patronage. On the basis of media
used, the distinction is clear-cut. Retail advertisers use newspaper ----------------------
advertising, particularly at the local level. Consumer advertisers make
----------------------
extensive use of the radio, television and consumer general magazines.
Industrial advertisers most often use the trade magazines, journals, ----------------------
business papers, direct mail, exhibition and trade shows.
----------------------
iv) Non-business or non-profit organisations, such as schools and
colleges, hospitals, clubs, churches, libraries etc., generally use local ----------------------
advertising. Their problems are similar to those of business firms. ----------------------
They also must identify their needs, the groups they serve, develop
products and services to satisfy their needs and communicate with ----------------------

Notes their constituencies. This communication can be effectively done by
advertising.
----------------------
Thus, there are several types of advertisers and an equally large number of
---------------------- forms of advertising.
---------------------- Facilitating institutions

Facilitating institutions are such organisations, which support the
----------------------
advertiser in analysing, planning and developing advertising campaign.
---------------------- Usually, there are three such primary institutions – advertising agency, media
and research suppliers. The advertising agency and research suppliers assist the
----------------------
advertiser in analysing opportunities, creating and testing advertising ideas and
---------------------- buying media time and space. The media, of course, supply the means for to
advertising.
----------------------
All advertisers, by definition, use some form of advertising media. Small
----------------------
advertisers, very often, contact the media directly, because of their financial
---------------------- limitations but where significant media expenditures are involved, the advertiser
uses the services of an advertising agency and one or more research suppliers.
----------------------
The advertising agency
----------------------
The advertising agency, in most cases, makes the creative and media
---------------------- decisions. It is an intermediary between the advertiser and the media. It also
---------------------- often supplies supportive market research and is even involved in the total
marketing plan.
----------------------
In some advertiser-agency relationships, the agency acts quite
---------------------- autonomously in its area of expertise, whereas in others, the advertiser is
involved in the creative and media decisions, as the campaign progresses.
----------------------
In the beginning, the agencies were service agencies and offered no creative
---------------------- help. Their main function was to select the media for the advertiser. Later, the
---------------------- agencies grew in size and influence and began to demonstrate an ability to
create effective advertising.
----------------------
Although the nature of advertising agency has changed considerably, the
---------------------- method of compensation remains the same. They receive a fixed percentage
---------------------- of advertising billing, from the media owners. It is usually 15 per cent on the
billing, but it can be increased if extra services are being provided by the agency.
----------------------
A modern advertising agency employs three different types of people,
---------------------- in addition to those handling administration. An agency that provides all
services may be called a full service agency. In recent years, smaller specialised
----------------------
organisations have begun to offer specialised services in the creative field.
---------------------- The media
---------------------- The media supply the means for to advertising. The first and, perhaps,

the largest media category has been newspapers, since the development of the Notes
printing press. The earliest agencies, in mid-nineteenth century, were essentially
agents for newspapers. ----------------------
Trade journals and other trade magazines are mostly used by industrial ----------------------
advertisers. Recently, the broadcast media, TV and radio, have gained the
attention of advertisers. They are mainly used by national advertisers on the ----------------------
national network. ----------------------
Local advertisers or retailers advertise on the local radio stations, to serve
well-defined segments of the population. ----------------------
Various types of promotions can also be considered by the advertiser, as a ----------------------

different kind of medium. In this category are included premiums, promotions,
----------------------
contests, sampling, price-off, cash refunds, display materials, points of purchase,
gifts and organizing trade shows. ----------------------
Research suppliers ----------------------
This type of facilitating institution is made up of companies that supply
----------------------
research services to advertisers, advertising agencies and the media. The main
thrust of such a supplier organisation is to conduct research in the various ----------------------
fields, namely market, consumer, media, creation and methods for assessing
the effectiveness of the media. They supply different types of information ----------------------
to advertisers, agencies and media, which may help them in the advertising
----------------------
planning and take specific decisions such as copy and media decisions.
Control institutions ----------------------
Control institutions are those that interact with and affect the advertiser’s ----------------------
decision-making activities in numerous ways. Government and competition are
----------------------
two main external control institutions.
The government ----------------------
Almost in every country of the world, the government interferes in ----------------------
the trade activities in various ways. A wide range of regulations relating to
advertisers’ products, services and advertising affect the advertisers to a great ----------------------
extent. The creative activities of advertisers will also be affected by the nature ----------------------
and impact of the government regulations. For example, if the government deals
in the advertiser’s product, it shall be viewed as a competitor and the nature of ----------------------
copy, message, theme etc. will be quite different.
----------------------
Competition
----------------------
Direct and indirect competitions are usually present and serve as a major
external control. The advertiser will have to get into the competitor’s shoe and ----------------------
figure out what competitors do, while developing an advertising campaign,
and adopt a suitable strategy in copy development. It is also important for an ----------------------
advertiser to note to what and how the competitors react. It will help understand
----------------------
the competitors’ strategies. The advertiser, thus, may improve his copy strategy.
----------------------

Notes The consumer or the market has been assumed as yet another kind of
external institution that both facilitates and controls advertising. Without an
---------------------- existing or potential target for advertising messages, the rationale for advertising
would not exist. The consumer is a controlling force, mainly through a whole
---------------------- range of behavioural possibilities such as viewing or not viewing, buying or
---------------------- not buying, voting or not voting and so on. It is the consumer around whom
the whole advertising industry revolves – the advertiser’s agency, media
---------------------- and research supplies. The identification and understanding of markets and
consumer behaviour are, therefore, vital parts of advertising management.
----------------------
To conclude, advertising management studies the managerial functions
---------------------- concerning advertisements, various facilitating and control institutions. Major
institutions in the field of advertising management, which we have explained
----------------------
above, can be depicted in the following diagram:
---------------------- Functions of advertising
---------------------- Advertising serves the following functions:
---------------------- (i) Tool of marketing

(ii) Means of communication and persuasion
----------------------
Tool of Marketing
----------------------
Advertising has been defined as a tool of marketing. It is used as a tool for
---------------------- selling the products, ideas and services of the identified sponsor, i.e., advertiser,
through non-personal intermediaries or the media. It supplements the voice and
---------------------- personality of the individual salesman.
---------------------- Means of Communication and Persuasion
---------------------- Advertising presents and promotes the ideas, goods and services of
an identified advertiser. In presenting and promoting an item (ideas, goods
---------------------- or services), the advertiser is engaging in a very important function of
communication. It informs the prospective buyers and users about the product
---------------------- and the producer. It thus serves as a communication link between the producer
---------------------- and the prospective buyers who are interested in procuring the information.
Advertising is the most efficient means of reaching people with product
---------------------- information.
---------------------- Apart from disseminating the information to the prospective buyers about
the product and the producer, the advertising serves as a mass persuader. While
---------------------- creating awareness and popularity, it seeks to persuade. Hence, advertising
is mass persuasion. It is a more effective, widespread and less costly way of
---------------------- establishing contact with the buyers than salesmanship. Clyde R. Miller points
---------------------- out that success in a business in industrial production, invention, religious
conversion, education and politics depends upon the process of persuasion.
---------------------- Every advertiser believes that all creative advertisement must serve more
---------------------- than merely inform or entertain. It must change or reinforce an attitude or
behaviour. And the consumer, the average man, should recognise the advertisers’
---------------------- persuasive intention.

“Advertising is controlled, identifiable information and persuasion by Notes
means of mass communication media.”
----------------------
Primary and Secondary Functions of Advertising
Advertising aims at fulfilling a variety of purposes, depending upon ----------------------
the needs of a 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 organisation.
----------------------
Advertising serves every sect of the business society, consumer, producer
and the middlemen (agency and salesman). ----------------------
The various functions of advertising may be grouped into two classes: ----------------------
a) Primary functions ----------------------
b) Secondary functions
----------------------
a) Primary Functions
----------------------
Among primary functions, the following are the most important:
----------------------
i) To increase sales
The main functions of advertising is to increase the sales of the product ----------------------
of a company by securing greater consumption, attracting new buyers and ----------------------
introducing new uses for a commodity.
----------------------
ii) Persuasion of dealers
Advertising persuades the dealers to stock more of the advertised goods. ----------------------
It makes for wider distribution of goods to the far corners of the country. ----------------------
Where the product is not in great demand, the advertisers or producers
directly contact the dealers to stock the goods and to persuade the consumers ----------------------
to buy.
----------------------
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 can happen only with effective advertising.
iv) Increase per capita use ----------------------
Advertising may lead to an increase in the per capita use of the commodity, ----------------------
by constantly repeating the desirable features and uses of an article.
----------------------
Advertising is effectively used to increase the per capita consumption by
describing new uses of articles, which may never have been thought of by ----------------------
the general user and new ways of using existing products.
----------------------

Notes 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, a new product in the same
---------------------- line or new model or form of an existing familiar product will get quick
receptiveness from the public. Generally, the producer advertises it as
---------------------- belonging to a group of products whose quality is well known.
---------------------- vi) Insurance for manufacturer’s business
---------------------- This function of advertising is to create insurance for the manufacturer’s
business. Through advertising trade marks or brand names of the general
---------------------- appearance of the products and their packages, public recognition and
---------------------- acceptance is assured.
Over a period of time, goodwill of the manufacturers is established. This
----------------------
makes the manufacturer more confident and independent of wholesalers
---------------------- and retailers. It also protects the manufacturers from competitors who will
find it difficult to develop a substitute for the nationally or internationally
----------------------
advertised products.
---------------------- Advertising cultivates brand and company image. It creates goodwill, which
---------------------- is a more valuable asset than physical assets. It insures the manufacturer
against all business risks.
----------------------
vii) Confidence in quality
---------------------- By advertising, the producer creates confidence in the minds of consumer
---------------------- for his products. ‘Buyers beware’ is the rule of the market where the buyer
is free to choose a product judge its quality. It was not always possible for
---------------------- an ordinary consumer to know whether he was buying gold or tinsel before
there were widely advertised products. In the case of widely advertised
----------------------
goods, the buyer has every reason to believe that the quality of the goods
---------------------- is the same as advertised by the producer, based on past experience. Thus,
advertising creates confidence in the quality of the product.
----------------------
viii) Elimination to seasonal fluctuations
---------------------- One of the functions of advertisement is to eliminate or lessen the seasonal
---------------------- fluctuations, mainly for the seasonal products, by describing their various
uses during off-seasons. For example, advertising the use of refrigerators
---------------------- all the year round has had a major impact.
---------------------- ix) More business for all
---------------------- Cumulative advertising of two or more manufacturers in the same field

helps to expand the market and create more business for all. It creates
---------------------- a demand for the kind of the product and not for a particular brand.
The various brands of televisions, cars, radios or computers are classic
----------------------
examples.
----------------------

x) Raise in standard of living Notes
Advertising also deserves credit for raising the standard of living of the
----------------------
consumers by instigating them to use newer and better things at competitive
rates. ----------------------
It is only because of advertising that the so-called luxuries of yesterday ----------------------
have become necessities of today.
----------------------
For example, TV, which had been only a dream for the common man, has
now become very popular today. The cell phone is another example, where ----------------------
advertisements have converted a luxury to a necessity.
----------------------
b) Secondary Functions
----------------------
In addition to the primary functions of advertising discussed above, there
are many other functions which have gained importance during the course ----------------------
of time. Some of them assume prime role. Such functions may be classified
as “Secondary functions” and have been discussed below: ----------------------
i) To encourage the salesmen and lend moral support ----------------------

Advertising helps salesmen a lot. Although a salesman has the privilege of ----------------------
the backing of the firm, he sometimes feels the need for greater confidence
----------------------
in himself, in his sales message and in his product. This is particularly so
when he meets a typical buyer. At such times advertisements are a big boon ----------------------
because it supplies the necessary information required for supplementing
his message. ----------------------
An advertisement boosts his morale. It makes it easier for him to sell the ----------------------
advertised goods, for part of the selling has already been done for him. This,
----------------------
in turn, will increase his remuneration because increased sales volume will
give him higher returns. ----------------------
ii) To furnish information ----------------------
Advertisements supply the necessary information about the product,
----------------------
producer, stockists and salesmen. Salesmen and dealers are benefited by
the use of information given in the advertisement. ----------------------
Many times, the information serves as a check for erroneous and extravagant ----------------------
claims. The printed words are the manufacturer’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, adopt better packages and styling and to give the public more
----------------------
value for their money.
----------------------

Notes iv) To impress factory workers
---------------------- It often 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 a part of
---------------------- the big organisation and share some of the responsibilities.
---------------------- v) Feeling of security
---------------------- The workers of a concern of well-advertised goods feel that their job
is permanent and that they will have better chances for promotion as
---------------------- the business grows, as the advertising will earn goodwill, security and
---------------------- prosperity.
---------------------- vi) To secure better employees
---------------------- Advertising makes it possible for manufacturers to secure and appoint

better employees such as executives, salesmen and factory workers. As the
----------------------
company gains popularity and is identified with a widely known product,
---------------------- any good applicant will feel proud to approach the company for a job.
Thus, advertising helps the advertiser choose better employees.
----------------------
To sum up, advertising aims at committing the producer for more turnovers,
----------------------
educating the consumer, supplementing the salesmen and converting the dealer
---------------------- to eliminate the competitor. Above all, it serves as a link between the producer
---------------------- and the consumer.
Coping with the stress of the ad industry
----------------------
Most industry men and women think that they can cope with the stress of the ad
----------------------
industry. Those who take up the challenge survive.
----------------------
Does advertising get better with more competition? Or does it get worse?
----------------------
Observe ads. Advertisements engross people as they watch it unfold stories,
---------------------- arguments, pictures, action, drama, colour, emotion. You may hate them for
interrupting your favorite program on TV, but you cannot help being amazed at
----------------------
the communication that attracts, and, at times, even mesmerizes you!
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
You may be zapped by Aamir Khan doing his thanda act in a dhoti or a lungi ----------------------
and jootis and end up watching Saif Ali vend chips in New York! Or Sachin
Tendulkar feigning to be a cook in amnesia! ----------------------
You turn your face away from a bespectacled Saurav in the Pepsi Blue Billion ----------------------
ad, only to find a bearded, unrecognisable Saif grabbing his Lenovo.
----------------------
You hate poorly adapted mainstream ads on FM and change channel, only to
land on the footpath humour of Radio Mirchi or RED FM. ----------------------
Admit it, try as much as you might, you can not escape it …even the Government ----------------------
of India has been seduced by the unstoppable youthful charm of advertising that ----------------------
keeps you in a constant state of excitement, adds a spring to your step, even
as it entertains, irks, sells, aids and abets, persuades, influences, disseminates, ----------------------
dissembles, spins, polls votes, makes a change, (for the better or for the worse)
and communicates. In fact, it attracts even if it fails to communicate. ----------------------
This brings us to the ‘making advertisements’ side of the business. ----------------------

Most have never seen that side, but everybody is fascinated by it. ----------------------
Among those who make advertisements, the mood is upbeat …there is fear,
----------------------
anxiety, hesitation, plenty of skill and understanding, some tension, plenty of
pressure, good money, travel, glamour off and on, some frustration when the ad ----------------------
does not do the job that it set out to do…
----------------------
But all said and done, the mood is exciting.
----------------------

Notes You may think that since you have all the ingredients for success – the passion,
dream, desire, need for a campaign, razor sharp focus required for tapping
---------------------- potential demand for your perfect product and/or perfect service, marketing
chutzpah, the best team of motivated people …and a head screwed on right,
----------------------
you will do it.
---------------------- And yet, at times, the ads fail to make contact. Should it happen, the ad watchers
---------------------- couldn’t care less? The ad makers/ad agency will be affected. So will the ad
manager and the ad management team of the advertiser.
----------------------
To sum up, advertising aims at committing the producer for more turnovers,
---------------------- educating the consumer, supplementing the salesmen, converting the dealer to
eliminate the competitor, and above all it is a link between the producer and the
---------------------- consumer.
----------------------
Summary
----------------------
• This lesson covered the scope and functions of advertising. It dealt with
---------------------- advertising as a tool of marketing and as a vehicle for communication and
---------------------- persuasion, development of modern advertising, functions of advertising.
• Advertising plays a crucial role in creating the image of a brand, since it
----------------------
is a direct communication outlet. Advertising is perhaps the only medium
---------------------- where fantasy and myth come together to create that the kind of magic
symbolism entails.
----------------------
• Advertising objectives are set in line with overall promotional and
---------------------- marketing objectives, which in turn relates to an organisation’s corporate
objectives.
----------------------
• There are three main categories of advertising objectives a business might
---------------------- set itself, based on whether a firm seeks to inform, persuade or remind the
---------------------- target audience.
• The communication objectives of advertising can be grouped into the
----------------------
following: building awareness (informing), creating favourable attitudes
---------------------- (persuasion) and maintenance of loyalty (reinforcement).
• Some broad advertising goals include: Launch of new products and
----------------------
services, expansion of the market to include the new users, announcement
---------------------- of a product modification or special offers announcing location of
stockiest and dealers, reminder campaigns to seek dealer cooperation and
---------------------- motivation, and create brand preference, to name a few.
---------------------- • Defining Advertising Objectives moves through product and its virtues,
the competition and the segment of the market aimed at, all of which
---------------------- should be set down in the marketing objective.
---------------------- • The objectives of advertising depend on the state of the life cycle of the
product.
----------------------

• Advertising is a branch of marketing because advertising is one of Notes
the functions of marketing. Advertising plays an important role in the
marketing process and aims at achieving the marketing objectives. ----------------------
• Facilitating institutions are organisations that support the advertiser ----------------------
in analysing, planning and development of the advertising campaign.
Usually, there are three such primary institutions – advertising agency, ----------------------
media and research suppliers
----------------------
• The various functions of advertising may be grouped in two classes:
Primary functions and Secondary functions. ----------------------
----------------------
Keywords
----------------------
●● Advertising Agency: An organisation that provides a variety of advertising
related services to clients seeking assistance in their advertising activities. ----------------------
●● Advertising Allowance: A payment made to a retail or wholesale ----------------------

operator by the seller of an advertised product or for use in purchasing
local advertising time and space for the advertiser’s product. ----------------------
●● Advertising Copy: The verbal or written component of advertising ----------------------

messages.
----------------------
●● Advertising claim: A statement made in advertising about the benefits,
characteristics, and/or performance of a product or service designed to ----------------------
persuade the customer to make a purchase.
----------------------
●● Advertising objective: A statement prepared by the advertiser (often in
association with an advertising agency) to set forth specific goals to be ----------------------
accomplished and the time period in which they are to be accomplished.
----------------------
●● Concept: A briefly stated idea or theme for possible use as the organising
idea for an advertisement or advertising campaign. ----------------------
●● Concept statement: A verbal and/or pictorial statement of a concept (for ----------------------

a product or for advertising) that is prepared for presentation to potential
buyers or users to get their reaction prior to its being implemented. ----------------------
Product concepts are followed by prototypes; advertising concepts by one ----------------------
of several forms of semi-finished production.
●● Continuity: 1. (advertising definition) A script for a television commercial. ----------------------
2. The timing pattern used in a media plan to schedule the exposure of the ----------------------
advertising messages during the time period covered by the media plan.
3. (channels of distribution definition) The degree to which a channel ----------------------
relationship is expected to last into the future.
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
1. What is the scope of advertising in India today? Elaborate with examples.
---------------------- 2. Can a brand survive today without advertising? Substantiate with two
examples where the advertiser had resorted to no advertising.
----------------------
3. How many kinds of advertisers are there? Mention any four:
----------------------
4. What are the primary functions of advertising? List five.
----------------------
5. What are the secondary functions of advertising? List five.
----------------------
6. List some advertising goals.
----------------------
----------------------
----------------------
Fill in the blanks.
----------------------
1. Through advertising, the brand generates its structure as well as _______.
---------------------- 2. For effective and successful branding and for widespread awareness and
---------------------- acceptance, content the brand image is necessary.
----------------------
1. True
----------------------
---------------------- Suggested Reading

---------------------- 1. Clown, Kenneth and Bach, Donald. Integrated Marketing Communications.
---------------------- 2. Batra, Rajiv. Myers, John G; Aaker, David A. Advertising Management.

PHI
---------------------- 3. Kleepner, Otto. Advertising Procedure. Prentice Hall.
---------------------- 4. Duncon. Integrated Marketing Communications. Tata McGraw Hill
---------------------- 5. Chunawalla, S.A. Sethia, K.C. Foundations of Advertising Theory &
Practice. Himalaya Publishing.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Creating the Advertising Campaign
UNIT
3
Structure:
3.1 Introduction
3.2 Message Appeals
3.3 The Media
3.4 Buying Behaviour
3.5 Agency Structures
Summary
Keywords
Suggested Reading
Creating the Advertising Campaign 61

Notes
Objectives
----------------------
----------------------
• Critically analyse creativity.
----------------------
• Identify different message appeals.
---------------------- • Explain the different media.
---------------------- • Name the different types of buying behaviour.
---------------------- • Describe the advertising agency structures.
----------------------
3.1 INTRODUCTION
---------------------- Creativity involves ideation of new and unexplored perspectives. It entails
visualising things from hitherto unknown angles.
----------------------
Creativity is the essence of an effective advertising campaign. The greater
---------------------- the degree of creativity in the promotional message, the greater is its effect on
---------------------- the target audience. Here we examine the role of creativity in advertising.
Creativity is the lifeblood of innovation and marketing, but where does it
---------------------- come from and how should a company nurture this elusive trait? How does one
---------------------- explore creativity on the job and use it to one’s advantage?
Creative Strategies in Advertising
----------------------
An advertising campaign is a series of advertisement messages that share
---------------------- a single idea and theme which make up an integrated marketing communication
(IMC). Advertising campaigns appear in different media across a specific time
----------------------
frame.
---------------------- The critical part of making an advertising campaign is determining
a campaign theme, as it sets the tone for the individual advertisements and
----------------------
other forms of marketing communications. The campaign theme is the central
---------------------- message that will be communicated in the promotional activities. The campaign
themes are usually developed with the intention of being used for a substantial
---------------------- period but many of them are short lived due to factors such as being ineffective
or market conditions and/or competition in the marketplace.
----------------------
In advertising, different creative strategies are used to obtain consumer
---------------------- attention and provoke shoppers to purchase or use a specific product. Advertisers
use different ways of thinking to create catchy slogans that capture consumer
----------------------
attention. Creative strategies promote publicity, public relations, personal
---------------------- selling and sales promotion.
---------------------- Advertisements, weak, mid-strength, and strong, can be found in

television, radio, and magazines/print.
---------------------- Since the beginning of advertising, strategies have been created, starting
---------------------- with the simplest (weak) strategies in the 1940’s.

Where do creative ideas come from? Notes
a) The main steps
----------------------
The main steps would follow this path:
----------------------
i) Exposure
ii) Incubation ----------------------
iii) Illumination ----------------------

iv) Execution ----------------------
b) The ‘VIPS’ of writing
----------------------
i) Visibility
----------------------
ii) Identify
iii) Promise ----------------------
iv) Simplicity ----------------------

c) What are the steps? ----------------------
i) Write a copy platform.
----------------------
ii) Develop a creative concept.
----------------------
iii) Choose an approach.
d) What is a copy platform? ----------------------
A copy platform is a written statement of objectives and a summary of ----------------------

information for an ad or ad campaign. (Read more about copy platform
later in this chapter). ----------------------
List a product’s selling points and benefits. ----------------------

e) What is creative concept? ----------------------
Creative concept is an idea that provides a basis for the selection and
----------------------
arrangement of ad materials.
i) The ‘big idea’ ----------------------
ii) The unifying theme ----------------------

iii) Communicates your “selling message” ----------------------
f) Writing the Ad
----------------------
Here, you actually get down to writing the copy.
----------------------
g) Objective
To fulfill the AIDA criteria ----------------------
A - Command Attention ----------------------

I - Sustain Interest ----------------------
D - Create Desire
----------------------

Notes C - Cause Conviction
A - Instigate Action
----------------------
Copywriting
----------------------
Copywriting is the process of writing words that promote a person,
---------------------- business, opinion or idea. It may be used as plain text, as a radio or television
advertisement, or in any other media.
----------------------
The main purpose of writing marketing copy or promotional text is to
---------------------- persuade the listener or reader to act, to buy a product or subscribe to a certain
viewpoint. Alternatively, copy might also be intended to dissuade a reader from
---------------------- a particular belief or action.
---------------------- Copywriting can include copy, slogans, headlines, direct mail pieces,
taglines, jingle lyrics, World Wide Web (www) and Internet content, television or
---------------------- radio commercial scripts, press releases and other written material incorporated
---------------------- into advertising media.
Copywriters can contribute words and ideas to print ads, mail-order
---------------------- catalogues, billboards, commercials, brochures, postcards, online sites, e-mail,
---------------------- letters and other advertising media.
Copywriting may also refer to the methods of writing and wording used to
----------------------
achieve higher rankings in search engines. Often referred to as content writing,
---------------------- it includes the strategic placement and repetition of keywords and keyword
phrases on web pages.
----------------------
Search-engine algorithms are getting smarter each day. Search engine
---------------------- optimization (SEO) copywriting is about writing for human visitors as well as
for search engines, offering fluent and readable content written in a SEO-wise
---------------------- manner.
---------------------- a) Some Famous Copywriters
---------------------- This is a list of well-known advertising copywriters.

 David Abbott
----------------------
 William Bernbach
----------------------
 Drayton Bird
----------------------  Leo Burnett
----------------------  Stan Freberg
----------------------  Claude C. Hopkins

 Herschell Gordon Lewis
----------------------
 David Ogilvy
----------------------
 Rosser Reeves
---------------------- Understanding message strategy
---------------------- An advertising message consists of the following: idea with other relevant info

– attitudes and image, the idea which spots uniqueness of the product and the Notes
message design which identifies consumer’s perceptions about products.
----------------------
Some questions that may give an insight into framing the message may include:
 What is the nature of the product? What is its generic category? ----------------------
 For who is it meant? ----------------------
 What are the special characteristics? ----------------------
 How is it beneficial for the consumer?
----------------------
 How is the product different?
----------------------
 On what occasions will it be used? How often?
 What would you like your consumer to perceive this brand as? ----------------------
 What position would it take? ----------------------
The answers to these questions are given by the market research, advertiser ----------------------
and the agency. It is after this step that the communication strategy and copy
platform is worked out. The message is crafted in such a way that the product ----------------------
appears unique.
----------------------
For example, considering a market for tonics, we would find the following
products: tonics for the aged and for persons recovering from illness; iron ----------------------
tonics for anemic individuals. In such a market, Incremin – ‘a tonic for growing
children’ found a place. Its logo was a visual of giraffe eating leaves off a tree ----------------------
– immediately connecting growth to children. Incremin found a slot and sat on ----------------------
it. Very successfully.
----------------------
Similarly, Maggi, the “2-minute noodles” is positioned as an anytime
snack, “good to eat and fast to cook.” It is aimed at children, to begin with. ----------------------
Today, it has repositioned itself to nutritious food, with the power of Calcium
and Protein – “Taste bhi, Health bhi”. ----------------------
Marketing Objectives ----------------------
While working on the message, we must start with the marketing
----------------------
objectives that had been formulated for the brand.
a) When we communicate with consumers, the marketing objectives ----------------------
could be: ----------------------
i) Create brand awareness
----------------------
ii) Incite them to act i.e. purchase the product
----------------------
iii) Confirm the legitimacy of their choice after the purchase is made
b) When we communicate with trade, the marketing objectives could be: ----------------------
i) To induce them to stock product ----------------------
ii) To push a product off the counter ----------------------
iii) To provide a strategic shelf space for the product
----------------------

Notes c) When we communicate with the manufacturers, the marketing
objectives could be:
----------------------
i) To make them buy raw material
---------------------- ii) To convince them about rational product benefits
---------------------- iii) To convince them about cost benefits
---------------------- Check the gap between the copywriter and the audience: Quinn, in his
book, “Secrets of Successful Copywriting” says –
---------------------- “These products are sold to people with few pretensions to higher education
---------------------- and who wouldn’t recognize any literary allusion. Where the copywriter is
literate, they have little or no interest in syntax or grammar; where he is
---------------------- imaginative, they are earthy; where he is enthusiastic, they are different.
This is the great schism. It is the happy few copywriters who can skip over
---------------------- this gap.”
---------------------- d) Read some hand-picked Copy Taglines:
----------------------  “Quality is remembered long after the price is forgotten.”
 “I’M LOVIN’ IT”
----------------------
 “Aap roz kya Close-Up karte hain”
----------------------
 “Why beg or borrow when you can steal”?
----------------------  “Open Up”
----------------------  “Ma Ma Ma Ma MAGGI,
----------------------  Pa Pa Pa Pa PAANCH!”
----------------------  Connecting People

 Think
----------------------
 “Have you seen a grown man cry?”
----------------------
 “It’s different!”
----------------------
 “Buy hole, get mint free”
----------------------  “Eat the hole thing”
----------------------  After Eight. After Everything.
----------------------  The choice is clear
----------------------  Absolut Vodka

 Things go better with Coca Cola
----------------------
 There’s a new Sunrise in your life
----------------------

“Tandurusti ki rakshya karta hai Lifebuoy/ Lifebuoy ho jahan
---------------------- tandurusti ho wahan”
----------------------  Good Times. Sad Times. Changing Times. The Times of India 150
years
 Just Do It Notes
 There’s nothing official about it
----------------------
 Choice of a New Generation
----------------------
 World News Leader
 The Pink Edge ----------------------
 Get your Power, Today ----------------------
 Have a Break, Have a KIT-KAT
----------------------
 Cadbury’s Chocolate. More than a sweet, a food!
----------------------
 Hungry Kya?
 “Yeh dil maange more” ----------------------
After an advertiser decides on the content of an ad, the “what to say”, ----------------------
the task of creating the ad itself is usually handed off to the creative people at
the ad agency. Before the writers and art directors proceed to conceptualising ----------------------
and creating the ad, it is usually a good idea to give some thought to the broad ----------------------
framework within which the ad should be created: What kind of appeal should
the ad utilise? For instance, should the ad attempt a competitive comparison (a ----------------------
“rational”) approach? Or, should it use some type of emotional appeal, such as
----------------------
fear or humour? Should it use an endorser, and if so, what kind of endorser - an
expert in that product category or a celebrity? ----------------------
While decisions of this sort are not always a part of the advertising ----------------------
planning process at either the client office or the agency (because of a desire not
to limit the flexibility of the creatives or because of ignorance), the ad creation ----------------------
process could undoubtedly benefit from the accumulated knowledge. Decide
when each of these creative approaches is most appropriate and how each can ----------------------
be implemented most effectively. Here is some material on generating creative ----------------------
approaches.
----------------------
Advertising is both an art and a science. The science of advertising is the
analytical part: setting goals, deciding strategy and choosing different creative ----------------------
styles. Some people call this step convergent thinking, because the process is to
distill information into the core advertising strategy. ----------------------
Once the message strategy and the broad creative approach have been ----------------------
determined, the actual advertisement can be created. And, this is a very unique
process. Here the best approach is divergent thinking – unleashing wild ----------------------
imagination to find the most creative, unexpected way to communicate the ----------------------
advertising message.
----------------------
This is not a science, but an art. We are dealing not with logical analysis but with
the product of raw talent. Most national advertising involves an agency, which ----------------------
is where such a talent usually resides. Of course, such talent is not restricted to
big agencies – indeed clients like Coca-Cola have begun to tap into the pool that ----------------------
create popular entertainment, like Hollywood movies or Bollywood movies for ----------------------
that matter.

Notes It is the job of the creative department of the agency to generate
alternative advertising ideas and ultimately pick one or a few that will go into
---------------------- production. The creative department is made up of copywriters, who have the
main responsibility of creating the advertising, and art directors who are experts
----------------------
at creating or otherwise introducing illustration and pictorial materials. These
---------------------- people are generally under the supervision of a creative director, and a team
of such people is involved in developing the advertising to be used for the
---------------------- campaign.
---------------------- The creation stage encompasses the creative (idea generation) process,
the generation of written copy (copywriting), artwork of various kinds
---------------------- (illustrating), and a preliminary or comprehensive version of the advertisement
---------------------- (layout). Obviously, client approval and supplier selection are also important
activities that must be done before final production can begin.
---------------------- The creative process is concerned with taking the marketing proposition
---------------------- (usually derived from marketing research and manufacturing specifications)
and turning it into one or more creative ideas that clearly, powerfully and
---------------------- persuasively convey to the consumer what the brand does for them and why it
should matter to them. Such creative processes come into play where research
---------------------- leaves off.
---------------------- A powerful, “big” idea can add immeasurably to the effectiveness of an
ad campaign and the presence or absence of such an idea must be the first thing
---------------------- to look for in evaluating a proposed ad campaign.
----------------------
----------------------
Fill in the blanks.
----------------------
1. Advertising campaign is a series of advertisement messages that share
---------------------- a single idea and ________.
---------------------- 2. The campaign themes are usually developed with the intention of
being used for a substantial period but many of them are short lived
---------------------- due to they being ________.
---------------------- 3. Advertising is both an art and a science. The science of advertising is
the _______ part.
----------------------
----------------------
Activity 1
----------------------
1. Collect four ads from newspapers where you feel the copy is very
---------------------- catchy. Now try to analyse why the copy is so eye-catching. Make a
list and compare each advertisement.
----------------------
2. Search the website and get information about the copywriters of
---------------------- the advertisements given above. Research and list their other successful
---------------------- campaigns.

3.2 MESSAGE APPEALS Notes
Why are there appeals?
----------------------
There could be appeals in the messages in advertisements by design. The
reasons for including appeals in advertisement are – ----------------------
a) To attract the attention of and create an interest in the target audience, ----------------------
marketers make use of appeals.
----------------------
b) It appeals to the basic needs, social needs, psychological needs or self-
actualisation needs (spiritual). Remember Maslow’s Heirarchy of Needs. ----------------------
c) To ultimately provoke the consumer to act, to buy a product, remember ----------------------
that the communication should –
----------------------
 Create a bridge to the target by being persuasive.
 Arouse the audience and give reasons for listening to you. ----------------------
 Make use of questions that involve the audience. ----------------------
 Use familiar words and build up points of interest. ----------------------
 Use specific and concrete words.
----------------------
 Repeat key words.
----------------------
 Convince the audience by sticking to facts.
 Empathise with the audience. ----------------------
 Use rhythm (For example, “When vitality is low, Waterbury’s brings ----------------------
back the glow”).
----------------------
 Make use of Zeigarnik effect, that is, leave the message incomplete.
(The audience is provoked to complete and close it.) ----------------------
 Ask the audience to draw conclusions. ----------------------
 Let the audience know the implications of these conclusions.
----------------------
Types of appeal
----------------------
There can be many types of appeals that advertising can resort to. Appeals can
be: ----------------------
a) Rational – logic, facts and figures ----------------------
b) Emotional – emotional, symbolic clues
----------------------
c) Fear based
----------------------
d) Mix (of rational and emotional)
Different Types of copy ----------------------
Different ads can have different approaches to copy. Copy can be of various ----------------------
types, such as:
----------------------
 Scientific copy
----------------------
 Descriptive copy

Notes  Narrative copy
 Colloquial copy
----------------------
 Humourous copy
----------------------
 Topical copy
----------------------  Endorsement copy
----------------------  Questioning copy
----------------------  Prestige copy
 Reason why copy
----------------------
 Wordless advertisements
----------------------
 Comparative copy
----------------------  Advertorial
----------------------  Intentional copy
----------------------  Disruptive copy
Creative Platform
----------------------
The Creative Platform is a document that outlines message strategy decisions
---------------------- for an ad – the Creative Plan and Copy Strategy.
---------------------- What is message strategy?
---------------------- The creative platform combines the basic advertising decisions – problems,
objectives and target markets – with critical elements of the sales message
---------------------- strategy – main idea and details about how the idea will be executed.
----------------------
Message Strategies
----------------------
----------------------
Generic Creative Information
----------------------
Strategy Strategy Strategy
----------------------
Who are the people behind any successful advertising campaign
---------------------- Try and figure out the actual individuals involved.
----------------------  Copywriters (creative department of an ad agency)
----------------------  Other departments: Account/Client Servicing, Account Planning, Media
Planning, Direct Marketing, PR
----------------------
 Writers – conceptualisation
----------------------  Print ad, TV, radio spot, outdoor – different treatment for different media
----------------------
----------------------

What would that ‘Big Idea’ be? Notes
a) Unless your campaign is built around a great idea, it will flop
----------------------
It is not every advertiser who can recognise a great idea when he sees it.
----------------------
b) Give the facts
Give enough factual information to sell the product. Study the copy in the ----------------------
Sears, Roebuck catalogue; it sells a billion dollars’ worth of merchandise ----------------------
every year by giving facts. “In my Rolls-Royce advertisements I gave
nothing but facts. No adjectives, no “gracious living. The consumer isn’t a ----------------------
moron; she is your wife.” said David Ogilvy. “You insult her intelligence if
you assume that a mere slogan and a few vapid adjectives will persuade her ----------------------
to buy anything. She wants all the information that you can give her.” ----------------------
Shell advertisers give the consumer facts, many of which other gasoline
marketers could give, but do not. The KLM Royal Dutch Airlines tells ----------------------
travelers about the safety precautions which all airlines take, but fails to ----------------------
mention it in their advertisements.
----------------------
c) Do not bore people
The average woman now reads only four of the advertisements which ----------------------
appear in the average magazine. She glances at more, but one glance is
----------------------
enough to tell her that the advertisement is too boring to read.
Competition for the consumer’s attention is becoming more ferocious every ----------------------
year. She is being bombarded by a billion dollars’ worth of advertising ----------------------
a month. Thirty thousand brand names are competing for a place in her
memory. If you want your voice to be heard above this ear-splitting ----------------------
barrage, your voice must be unique. It is the business of the advertising
----------------------
facilitator, the ad agency, to make the advertiser’s/clients’ voices heard
above the clutter. ----------------------
Make advertisements that people want to read. ----------------------
d) Be well-mannered, but don’t clown
----------------------
People do not buy from bad-mannered salesmen; research shows that
they do not buy from bad-mannered advertisements too. It is easier to sell ----------------------
people with a friendly handshake than by hitting them over the head with a ----------------------
hammer. You should try to charm the consumer into buying your product.
This does not mean that your advertisements should be cute or comic. ----------------------
People do not buy from clowns. When a housewife fills her shopping ----------------------
basket, she is in a fairly serious frame of mind.
----------------------
e) Make your advertising contemporary
Most of the copywriters at an agency are so young – that’s because they ----------------------
understand the psychology of young consumers so well. Your ad must be ----------------------
in keeping with the times. Otherwise your brand will look outdated.
----------------------

Notes f) Committees can criticise advertisements, but they cannot write them
A lot of advertisements and television commercials look like the minutes
----------------------
of a committee meeting, and that is what they are. Advertising seems to sell
---------------------- most when it is written by a solitary individual. He must study the product
and conduct a research.
----------------------
Then he must shut the door of his office and write the advertisement.
---------------------- The best advertisement that a copywriter wrote went through seventeen
revisions.
----------------------
g) If you are lucky enough to write a good advertisement, repeat it until
---------------------- it stops pulling.
---------------------- Scores of good advertisements have been discarded before they lost
their potency, largely because their sponsors grew tired of seeing them.
---------------------- Sterling Getchel’s famous advertisement for Plymouth (“Look at All
Three”) appeared only once, which was succeeded by a series of inferior
----------------------
variations that were quickly forgotten. But the Sherwin Cody School of
---------------------- English ran the same advertisement (“Do You Make These Mistakes in
English?”) for forty-two years, changing only the typeface and the colour of
---------------------- Mr. Cody’s beard.
---------------------- You are not communicating with a standing army; you are advertising to
a moving parade. Three million consumers get married every year. The
---------------------- advertisement which sold a refrigerator to those who got married last
year will probably be just as successful with those who get married next
----------------------
year. One million, seven hundred thousand consumers die every year, and
---------------------- 4,000,000 new ones are born.
Consumers enter the market and they depart from it. An advertisement is
----------------------
like a radar sweep, constantly hunting new prospects as they come into the
---------------------- market. Get a good radar and keep it sweeping.
---------------------- h) Never write an advertisement which you would not want your family
to read.
---------------------- You would not tell lies to your wife. If you lie about a product, you will be
---------------------- found out, either by the government, which will prosecute you, or by the
consumer, who will punish you by not buying your product a second time.
---------------------- Good products can be sold by honest advertising. If you do not think that
---------------------- a product is good, you have no business to be advertising it. If you lie, you
are doing a disservice to the client, increasing your load of guilt and fanning
---------------------- the flames of public resentment against the whole business of advertising.
---------------------- i) The image and the brand
Every advertisement should be thought of as a contribution to the complex
----------------------
symbol, the brand image. If you take the long-term view, a great many
---------------------- short-lived problems will solve themselves.
---------------------- How do you decide what kind of image to build? There is no short answer.

Research may help here. One has to use one’s judgment too. Notes
Sometimes, manufacturers are reluctant to accept any limitation on the
----------------------
image of their brand. They want it to be all things to all people. They
generally end up with a brand which has no personality of any kind and a ----------------------
wishy-washy image.
----------------------
Layout of Ads
 Headline idea – the most important copy element ----------------------
 Subheads ----------------------
 Visual ----------------------
 Body copy: long copy Vs short copy
----------------------
 Closing idea
----------------------
 Slogan
An ad my also contain blurbs, inset boxes, response coupon and addresses. ----------------------
----------------------
3.3 THE MEDIA
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Paying people to hold signs in public places, such as the Human directional
pictured above is one of the oldest forms of advertising. In India, we are familiar ----------------------
with people holding umbrellas.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Transit advertising is combined with experiential marketing using peapods ----------------------
in Australia. Closer home, we have cabs and auto rickshaws doing the job of
transit advertising. ----------------------

Notes Variety of Media
Advertising media consists of any means by which sales messages can be
----------------------
conveyed to potential buyers.
---------------------- Almost anything can be used as an advertising medium – (apart from
newspapers, TV, radio etc.) – the sky, bus tickets, matchboxes, street litter bins,
----------------------
taxi cabs, parking meters, shopping bags, pens etc
---------------------- Commercial advertising media can include wall paintings, billboards,
street furniture components, printed flyers, radio, cinema and television
----------------------
ads, web banners, web popups, skywriting, bus stop benches, magazines,
---------------------- newspapers, town criers, sides of buses, taxicab doors and roof mounts, musical
stage shows, subway platforms and trains, elastic bands on disposable diapers,
---------------------- stickers on apples in supermarkets, the opening section of streaming audio and
video, posters, chicken nuggets, and the backs of event tickets and supermarket
----------------------
receipts.
---------------------- Any place an “identified” sponsor pays for to deliver his message through
---------------------- a medium is advertising.
Main Media
----------------------
Media can be Above-the-line and Below-the-line:
----------------------
Above-the-line indicates the five media which pay commission to
---------------------- advertising agencies – press, radio, TV, outdoor and cinema.
Below-the-line includes direct mail, exhibitions, point-of-sale display,
----------------------
print, sales literature and all kinds of miscellaneous media.
---------------------- The terms were actually created by Procter & Gamble to separate their different
kinds of advertising.
----------------------
a) Print
----------------------
i) The press
----------------------
The Press takes up a major chunk of above-the-line advertising. It
---------------------- includes – National/Local/International press. Here, the extent of
literacy comes into play: circulation figures of journals, newspapers,
---------------------- magazines etc. is related to the educational/literary standards.
---------------------- Vernacular newspapers appeal to certain sections of society.
ii) Characteristics of the press
----------------------
The power and dominance of the press is explained by some of its
---------------------- special characteristics.
----------------------  In-depth coverage and permanence
---------------------- Both radio and TV are ephemeral and usually brief, but newspapers
and magazines can provide detailed reports that can be read, re-read
---------------------- and even retained. The life of city newspapers may be only a few
hours. On the other hand, magazines have a large readership and a
---------------------- larger shelf life.

 Variety of subjects covered Notes
Newspapers represent political, social, religious, ethnic and language
----------------------
groups.
Magazines represent every sort of special interest. It is possible to ----------------------
select the right journals to reach particular sections of the reading
----------------------
public. This cannot be done with mass media like radio or TV.
 Mobility ----------------------
Newspapers and magazines can be carried about and read almost ----------------------
anywhere – while travelling, at place of work, or in a waiting room or
library. ----------------------
 Results are accessible ----------------------

It is possible to measure the pulling power or cost-effectiveness of ----------------------
publications by using coupons or by use of key numbers or codes,
which identify from which publication the coupon was clipped. ----------------------
Evaluation is done by dividing the cost of space by the number of
replies received. The response or hit rate is important. ----------------------
 Statistics available ----------------------

Net sales are audited. Readership details are researched. A wealth of ----------------------
statistical information exists about all publications – newspapers and
magazines. The media planner can thus do his planning. ----------------------
 Improved printing ----------------------
Most newspapers and magazines are printed in offset. The picture ----------------------
quality is good, even in black and white. Magazines are also better
printed with sharper pictures and better quality paper. There are so ----------------------
many different kinds of newspapers, magazines and other publications.
----------------------
National newspapers – In India the mainline dailies printed from
the main cities include: The Times of India, Delhi, Mumbai (and ----------------------
other editions), Indian Express, Delhi, Mumbai (and other editions), ----------------------
The Hindu, Chennai (and south editions), The Telegraph, Kolkata,
Statesman, Kolkata, Delhi etc and afternoon papers like Mid-Day etc. ----------------------
The growth of colour supplements or weekend magazines has ----------------------
happened recently, to increase the sale of Sunday editions.
----------------------
 Regional newspapers and magazines
----------------------
In India, each region has its dailies. Navbharat Times, Delhi,
Mumbai, Gujarat Samachar, Mumbai, Eenadu, Hyderabad, Malayala ----------------------
Manorama, Trivandrum, Daily Tanthi, Chennai, Ananda Bazaar
Patrika, Kolkata etc. ----------------------
Popular magazines include general news, women’s, kids, teenagers ----------------------

etc. ABC figures are checked to figure out their popularity. There
----------------------
are also special interest magazines which focus on areas such as

Notes gardening, photography, cars, computers, health and beauty, sports,
hobbies, travel, fashion, home décor, film, trade journals for doctors,
---------------------- retailers etc., technical journals, professional journals, directories and
Year Books.
----------------------
 Methods of distribution
----------------------
The retail distribution is through vendors. People subscribe to
---------------------- magazines; so there is subscription. It is controlled circulation. Many
trade/technical journals are mailed free. Sometimes, city-specific or
----------------------
locality-specific bulletins magazines etc. are circulated free.
---------------------- iii) Advantages of the press
---------------------- The Press is one of the cheapest means of reaching a large number
of unknown or unidentified perspective buyers. Ads can be inserted
---------------------- faster (sometimes overnight!) than commercials in TV or designing/
---------------------- printing posters.
The response can be checked using coupons or by giving telephone
----------------------
numbers. Press ads can be targeted at specific audiences, by choosing
---------------------- the print media that the buyers read. Newspapers /magazines have the
capacity to accept a large number of ads, compared to TV or radio.
---------------------- Press ads can be re-read and retained (clippings); magazines have
longer lives.
----------------------
Some dailies have colour supplements on weekends. Classified ads
---------------------- get immediate response/enquiries. Colour can come into play.
---------------------- Ads for particular products or services are often grouped together; so
it is economical to buy only small space.
----------------------
iv) Disadvantages of the press
---------------------- Short life. A daily or Sunday newspaper is unlikely to survive more
---------------------- than a day. Reading life is exhausted in a few hours. People read on
their way to or from work.
----------------------
Poorly printed. While offset printing has improved the standards
---------------------- of colour picture printing, the poor quality of newsprint makes a
difference to the output. Compares The Times of India and the Indian
---------------------- Express.
---------------------- Passive medium. An effort has to be made to read press ads, unlike
TV, radio or cinema, which have captive audience. Ads in the press
---------------------- have to compete with editorial for attention and interest, while cinema
and broadcast advertising does not occur at the same time.
----------------------
Static medium. The press ad lacks realism of sound, movement and
---------------------- colour of TV/cinema and even audio of radio ads.
---------------------- Badly presented. Ads can be massed together and can hence be
overlooked. In other media, each ad is presented individually and can
---------------------- be absorbed one at a time.

b) Television Notes
The TV commercial is generally considered the most effective mass-market
----------------------
advertising format and this is reflected by the high prices TV networks
charge for commercial airtime during popular TV events. ----------------------
Virtual advertisements may be inserted into regular television programming
----------------------
through computer graphics. It is typically inserted into otherwise blank
backdrops or used to replace local billboards that are not relevant to the ----------------------
remote broadcast audience. More controversially, virtual billboards may
be inserted into the background where none exists in real-life. Virtual ----------------------
product placement is also possible. Increasingly, other mediums such as
----------------------
those discussed below are overtaking television due to a shift towards
consumer’s usage of the Internet as well as devices such as TiVo. ----------------------
TV in India was a modest affair, when it was launched on 1959. It picked
----------------------
up as an advertising medium after the advent of colour TV in 1982. Then
followed changing attitudes of people, which inspired advertisers to ----------------------
consider the television as a medium.
----------------------
i) Advantages of TV
Realism. Since a combination of colour, sound and action is possible, ----------------------
ads on the TV boast of assets that no other medium can offer, with
----------------------
the exception of cinema, which no longer has the big audiences that
existed prior to TV. Given these advantages, an advertiser can show ----------------------
and demonstrate product. Pack recognition, how to use details and
ingenious effects can be achieved. ----------------------
Receptive audiences. Being received in the drawing rooms of homes, ----------------------
commercials are well received.
----------------------
Repetition. An ad can be repeated many times for impact, especially,
during programs with high TRP ratings. ----------------------
Appeal to retailers. TV advertising can reach both retailers and
----------------------
consumers.
Linked with other media. TV ad may be fleeting, but if fuller info ----------------------
or returning an enquiry coupon is required, ads can also be inserted
newspapers. It has to be mentioned in the commercials. ----------------------
ii) Weakness of commercial TV ----------------------

TV ads reach mass audience, whereas one can be more selective in ----------------------
the medium of the press. If there is a lot of detail to be given to the
prospective buyers, the press wins hands down. Little can be done ----------------------
while watching TV compared to radio. Though “zapping” can be
----------------------
done, to eliminate commercials.
Because of the size of the audience, it is costly. Many advertisers appeal ----------------------
to smaller markets and cannot justify the cost of TV. “Urgency” is a factor
----------------------
to be considered, as it takes time to make a commercial. Advertisers have
the option to take a mix of national TV and local TV networks. ----------------------

Notes c) Radio
All India Radio, Akashvani is one of the major media units of the Ministry
----------------------
of Information and Broadcasting. It is a prime channel for covering the
---------------------- whole of India.
---------------------- The news organisation of AIR is the biggest in the world. It made a modest
beginning in January 1936.
----------------------
News service supplies to all the four national news agencies – Press Trust of
---------------------- India, United News of India, Hindustan Samachar and Samachar Bharati.
External Services provides news to overseas listeners. Vividh Bharati is
---------------------- another popular channel. The radio was a weak media until recently. FM
---------------------- radio has changed the profile of this media. Radio Mirchi, Radio City, Go
etc have changed the meaning of entertainment for us today.
----------------------
i) Importance of radio advertising
---------------------- Inexpensive: It is cheaper to produce a radio commercial or even run
it on radio networks.
----------------------
Penetration: Radio had a wide reach. It can reach out to the illiterate
---------------------- public who cannot read or to those who do not have access to any
---------------------- other media.
Human voice and music: Use of audio, voice and music makes it
----------------------
a “live” medium, compared to passive and static media as press,
---------------------- outdoor, print, direct mail or point-of-purchase.
---------------------- Companionship: The radio is often listened to as a form of

companionship.
----------------------
ii) Characteristics of radio
---------------------- It can be local. Though large advertisers place ads on the national
---------------------- radio networks, it is also an excellent medium for local advertisers,
competing with the local/regional press.
----------------------
It can be addressed to different audiences. People of different kinds
---------------------- listen to the radio at different times, so different groups can be targeted.
It is a supplement to television. Many buyers listen to the radio. Its mobility,
----------------------
whether out of house, out-of-doors or in the car, makes the radio more
---------------------- accessible than most other media.
---------------------- d) In-Film product placement

Product placement refers to covert advertising embedded in other
----------------------
entertainment media. A more recent version of this is advertising through
---------------------- the medium of films, by having a main character use an item of a definite
brand. An example may be cited from the movie Minority Report, where
---------------------- Tom Cruise, as the character Tom Anderton, owns a computer with the
---------------------- Nokia logo clearly visible in the top corner or his watch engraved with the
Bulgari logo.
Another example of advertising in film is in I, Robot, where the main Notes
character played by Will Smith mentions his Converse shoes several times,
calling them “classics,” because the film is set far in the future. Cadillac ----------------------
chose to advertise in the movie The Matrix Reloaded, which, as a result,
----------------------
contained many scenes in which Cadillac cars were used.
Similarly, product placement for Omega Watches, BMW and Aston- ----------------------
Martin cars are featured in recent James Bond films, most notably, Casino ----------------------
Royale. Coke in Yadein and Nescafe in Koi Mil Gaya are examples from
Bollywood movies. ----------------------
e) Cable TV ----------------------
Cable TV is a medium for limited advertising for local products only,
----------------------
usually tapped by local retailers, institutes, restaurants etc. Sometimes,
local events are publicised. ----------------------
f) Cinema ----------------------
Cinema as a medium fell in importance in recent times. Now with
----------------------
multiplexes, interest in the cinema is increasing at a very fast pace.
i) Advantages of Cinema ----------------------
Captive audience. Truly “captive” as distractions of home viewing are ----------------------

not there.
----------------------
Longer video. Cinema commercials can be longer than TV, less abrupt
and kaleidoscopic. There is a larger screen involved. On a screen that ----------------------
is larger and wider screen than the TV, the picture is more dramatic,
----------------------
realistic and impacting. There is no interruption of program. There are
no commercial breaks, all commercials being shown before or after ----------------------
film, and are seen by each audience.
----------------------
Zoning. While TV commercials can be shown in select regions, cinema
commercials can be shown in select towns. ----------------------
Entertainment atmosphere. Cinema advertising is seen in a pleasant, ----------------------
receptive entertainment atmosphere, such as public cinema, cruise
ships, aeroplanes etc. ----------------------
ii) Weaknesses of cinema ----------------------
Like broadcast media, it is a transient medium and it relies on
----------------------
people remembering the message. This will depend on how often the
commercial is seen. The recall rate is high. ----------------------
g) Outdoor
----------------------
This is the oldest established form of advertising. Today outdoor
advertising comes packed with technological advancements such as ----------------------
moving, illuminated neon signs etc. When TV arrived, outdoor suffered a ----------------------
decline.
i) Importance of outdoor ----------------------

Notes It is a reminder medium. It is a medium secondary to the press/TV.
But ‘life’ is long on hoardings – weeks, months or even years!
----------------------
There can be posters, ads on moving vehicles etc. The possibilities are
---------------------- many.
ii) Characteristics of outdoor
----------------------
 Size and dominance
----------------------
 Colour
----------------------  Brief Copy
----------------------  Zoning
---------------------- iii) Weaknesses
 Inability to use much copy
----------------------
 Damage by vandals or weather
----------------------
 Lack of concentration on message by passers-by
---------------------- h) Transportation Advertising
---------------------- Characteristics of transportation advertising
---------------------- They offer a variety of sites and sizes. Throughout road, rail, sea and air
routes and goods transportation system, there is a wide variety of sites and
---------------------- sizes available to choose from. It lends itself to campaigns of advertisers
– local, metropolitan, national and, in some cases, international too.
----------------------
Selectivity. Cost of site relate to the volume of traffic.
----------------------
Short-term campaigns. Transportation advertising is better suited than
---------------------- outdoor for short-term campaign.
---------------------- A mobile medium. Passengers change and a cumulative audience views
interior advertising, while external advertising is seen by a different
---------------------- cumulative audience. It is likely to reach a large audience repeatedly over
a period.
----------------------
i) Online Ads
----------------------
Advertising on the World Wide Web is a recent phenomenon (www).
---------------------- Prices of Web-based advertising space are dependent on the “relevance” of
the surrounding web content and the traffic that the website receives.
----------------------
E-mail advertising is another recent phenomenon, where unsolicited bulk
---------------------- e-mail advertising known as “spam” arrives in the mailbox.
---------------------- Some companies have proposed placing messages or corporate logos on
the side of booster rockets and the International Space Station. Controversy
---------------------- exists on the effectiveness of subliminal advertising (see mind control),
---------------------- and the pervasiveness of mass messages (see propaganda).
----------------------

j) Word-of-Mouth Advertising Notes
Unpaid advertising (also called word-of-mouth advertising) can provide
----------------------
good exposure at minimal cost. Personal recommendations (Bring a
friend, Sell it), spreading buzz, or achieving the feat of equating a brand ----------------------
with a common noun (Xerox = photocopier, Kleenex = tissue, and Vaseline
= petroleum jelly)… these are the pinnacles of any advertising campaign. ----------------------
However, some companies oppose the use of their brand name to label an ----------------------
object.
Measuring the impact of mass media advertising ----------------------
The most common method for measuring the impact of mass media ----------------------
advertising is the use of the rating point (RP) or the more accurate target rating
----------------------
point (TRP).
These two measures refer to the percentage of the universe of the existing ----------------------
base of audience members that can be reached by the use of each media outlet
----------------------
in a particular moment in time.
The difference between the two is that rating point refers to the percentage ----------------------
to the entire universe while target rating point refers to the percentage to a
----------------------
particular segment or target.
This becomes very useful when focusing advertising efforts on a particular ----------------------
group of people. ----------------------
For example, think of an advertising campaign targeting a female
audience aged 25 to 45. While the overall rating of a TV show might be well ----------------------
over 10 rating points it might very well happen that the same show in the same ----------------------
moment of time is generating only 2.5 TRPS (being the target: women 25-45).
This would mean that while the show has a large universe of viewers, it is ----------------------
not necessarily reaching a large universe of women in the 25 to 45 age group,
making it a less desirable location to place an ad for an advertiser looking for ----------------------
this particular demographic. ----------------------
Conversely, a TV show with a low overall rating point may be more
----------------------
successful in selling ads when its target rating points are high.
Consider networks like STAR TV, SONY and ZEE, which has had success ----------------------
with shows based on this premise; the shows had low overall ratings points, but
----------------------
delivered strong target rating points in the desired demographic.
The K serials are witness to this. ----------------------
The impact of advertising ----------------------
“Half the money I spend on advertising is wasted; the trouble is I don’t know ----------------------
which half.” John Wanamaker, father of modern advertising.
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Billboard, New York City, (2005)
---------------------- The impact of advertising has been a matter of considerable debate and
---------------------- different claims have been made in different contexts. During debates about
banning cigarette advertising, a common claim from cigarette manufacturers
---------------------- was that cigarette advertising does not encourage people, who would not smoke
otherwise, to smoke.
----------------------
The (eventually successful) opponents of advertising, on the other hand,
---------------------- claimed that advertising does in fact increase consumption.
---------------------- According to many sources, the past experience and state of mind of the
person subjected to advertising may determine the impact that advertising has.
---------------------- Children under the age of four may be unable to distinguish advertising from
other television programs, whilst the ability to determine the truthfulness of the
----------------------
message may not be developed until the age of eight. Then there is the question
---------------------- of the portrayal and impact on women and children.
The future
----------------------
With the dawn of the Internet have come many new advertising
---------------------- opportunities. Popup, Flash, banner, advergaming and email advertisements
(the last often being a form of spam) abound.
----------------------
Each year, greater sums are paid to obtain a commercial spot during the
---------------------- Super Bowl, which is, by most measures, considered to be the most important
---------------------- football game of the year, or the World Cup Cricket.
Companies attempt to make these commercials sufficiently on the
---------------------- assumption that the members of the public will actually want to watch them.
---------------------- Another new phenomenon is recording shows on DVRs (for example,
TiVo). These devices allow users to record the programs for later viewing,
---------------------- enabling them to fast forward through commercials.
----------------------

Additionally, as more seasons or “Boxed Sets” come out of Television Notes
shows; fewer people are watching their shows on TV. However, the fact that
these sets are sold, means that the company will additionally receive profits ----------------------
from the sales of these sets. To counter this effect, many advertisers have opted
for product placement on TV shows like Survivor. ----------------------
Since the rise of “entertaining” advertising, it has been realised that some ----------------------
people like an ad enough to watch it later or show it to a friend. The advertising
community has not yet made this easy, although some advertisers have used the ----------------------
Internet to distribute their ads widely to anyone wishing to see or hear them. ----------------------
Another significant trend to note for the future is the growing importance
of niche or targeted ads. Also brought about by the Internet and the theory of ----------------------
‘The Long Tail’, advertisers will have an increasing ability to reach narrow ----------------------
audiences. In the past, the most efficient way to deliver a message was to blanket
the largest mass market audience possible. ----------------------
However, usage tracking, customer profiles and the growing popularity ----------------------
of niche content, brought about by everything from blogs to social networking
sites, provide advertisers with audiences that are smaller but much better ----------------------
defined, leading to ads that are more relevant to viewers and more effective for
companies marketing products. ----------------------
Among others, Comcast Spotlight is one such advertiser employing this ----------------------
method in the video on demand menus. These advertisements are targeted to a
specific group and can be viewed by anyone wishing to find out more about a ----------------------
particular business or practice at any time, right from their home.
----------------------
This causes the viewer to become proactive and actually choose what
advertisements he wants to view. ----------------------
----------------------
3.4 BUYING BEHAVIOUR
What is Consumer Buying Behaviour? ----------------------
Some definitions of Buying Behavior: Buying Behavior is the decision ----------------------

process and acts of people involved in buying and using products. It refers to
the action of consumers in the market place and the underlying motives for ----------------------
those actions. ----------------------
The study of Consumer Buying Behaviour is a study of how consumers
spend time, money and effort on consumption related items. It includes: What ----------------------
they buy, Why they buy, When they buy, Where they buy, How often they buy ----------------------
and How often they use it
There is a need to understand: ----------------------
 why consumers make the purchases that they make. ----------------------
 what factors influence consumer purchases.
----------------------
 the changing factors in our society.
----------------------
Consumer Buying Behaviour refers to the buying behaviour of the ultimate
consumer. A firm needs to analyse a Buyer’s reactions to a firm’s marketing ----------------------

Notes strategy, which has a great impact on the firm’s success.
The marketing concept stresses that a firm should create a Marketing Mix
----------------------
(MM) that satisfies (gives utility to) customers. There is a need to analyse the
---------------------- what, where, when and how consumers buy.
Marketers can better predict how consumers will respond to marketing strategies.
----------------------
Stages of the consumer buying process
----------------------
There are six stages to the Consumer Buying Decision Process (for
---------------------- complex decisions). Actual purchasing is only one stage of the process. Not all
decision processes lead to a purchase. It must be remembered that all consumer
---------------------- decisions do not always include all the six stages, determined by the degree of
---------------------- complexity.
a) Problem Recognition (awareness of need)
----------------------
Problem recognition is tapping the difference between the desired state and
---------------------- the actual condition. For example, hunger stimulates your need to eat. It
can be stimulated by the marketer through product information. Consider
---------------------- the example of a commercial for a new pair of shoes; it stimulates your
---------------------- recognition that you need a new pair of shoes.
b) Information search
----------------------
 Internal search, memory.
----------------------
 External search, if you need more information, sources that can
---------------------- provide information include: friends and relatives (word of mouth),
marketer dominated sources; comparison shopping; public sources
---------------------- etc.
---------------------- A successful information search leaves a buyer with possible alternatives,
the evoked set.
----------------------
When “Hungry, want to go out and eat” the evoked set of alternatives in
---------------------- this case include:
----------------------  Chinese food
 Indian food
----------------------
 Burger
----------------------
 Pizza
---------------------- c) Evaluation of alternatives
---------------------- There is a need to establish the criteria for evaluation, features that the
buyer wants or does not want. Rank/weigh alternatives or resume search.
---------------------- For instance, you may decide that you want to eat something spicy. Then
---------------------- Indian gets the highest rank.
If not satisfied with your choice, return to the search phase. Can you think
----------------------
of another restaurant? Look in the yellow pages. Information from different
---------------------- sources may be treated differently. Marketers try to influence by “framing”
alternatives.
d) Purchase decision Notes
Buying alternatives include product, package, store, method of purchase
----------------------
etc.
e) Purchase ----------------------
Purchase may differ from decision time. The time lapse between decision ----------------------
taken and time of purchase and product availability.
----------------------
f) Post-Purchase evaluation
Here the outcome is either Satisfaction or Dissatisfaction. ----------------------
g) Cognitive dissonance ----------------------

Have you made the right decision? This can be assessed based on criteria ----------------------
such as warranties, after sales communication etc. After eating an Indian
meal, you may feel that what you really wanted was a Chinese meal. ----------------------
Types of consumer buying behaviour ----------------------
a) Types of consumer buying behaviour are determined by:
----------------------
The levels of involvement in the purchase decision, which includes the
following: ----------------------
 Importance and intensity of interest in a product in a particular ----------------------

situation.
----------------------
 The buyer’s level of involvement. It determines why he/she is
motivated to seek information about a certain product and brand but ----------------------
virtually ignores others.
----------------------
 High involvement purchases – Honda Motorbike, high priced
goods, products visible to others. The higher the risk, the higher the ----------------------
involvement.
----------------------
Types of risk:
----------------------
i) Personal risk
ii) Social risk ----------------------
iii) Economic risk ----------------------

b) The four types of consumer buying behaviour are: ----------------------
i) Routine response/programmed behaviour-Buying involves low
----------------------
involvement. Frequently purchased low cost items; needs very little
search and decision effort; purchased almost automatically. Examples ----------------------
include soft drinks, snack foods, milk etc.
----------------------
ii) Limited decision making-buying product occasionally. When you need
to obtain information about an unfamiliar brand in a familiar product ----------------------
category. It requires a moderate amount of time for information
gathering. Examples include clothes-know product class but not the ----------------------
brand.
----------------------

Notes iii) Extensive decision making/complex high involvement, where
unfamiliar, expensive and/or infrequently products are concerned.
---------------------- There is a high degree of economic/performance/psychological
risk. Examples include cars, homes, computers, education. Buyers
---------------------- spend a lot of time seeking information and deciding. Information
---------------------- is sought from the manufacturing companies, friends and relatives,
store personnel etc. In this case, buyers go through all six stages of the
---------------------- buying process.
---------------------- iv) Impulse buying, no conscious planning.
The purchase of the same product does not always elicit the same
----------------------
Buying Behaviour. Product can shift from one category to the next.
---------------------- For example: Going out for dinner may be an extensive decision
making exercise for someone who does not go out often at all, but
---------------------- limited decision making for someone else. The reason for the dinner,
whether it is an anniversary celebration or a meal with a couple of
----------------------
friends will also determine the extent of the decision making.
---------------------- c) Categories that effect the consumer buying decision process
---------------------- A consumer making a purchase decision will be affected by the following
three factors:
----------------------
i) Personal
---------------------- ii) Psychological
---------------------- iii) Social
---------------------- The marketer must be aware of these factors in order to develop an
appropriate MM for its target market.
----------------------
i) Personal factors are unique to a particular person. Demographic
---------------------- Factors. Sex, Race, Age etc. Who in the family is responsible for the
decision making? Young people purchase things for different reasons
---------------------- than older people. Male and female shoppers in a supermarket differ
---------------------- in their choice of items, brands etc.
ii) Psychological factors
----------------------
Psychological factors include:
----------------------
 Motives
---------------------- A motive is an internal energising force that orients a person’s

activities towards satisfying a need or achieving a goal.
----------------------
Actions are effected by a set of motives, not just one. If marketers can
---------------------- identify motives, they can better develop a marketing mix.
---------------------- MASLOW’s hierarchy of needs
----------------------  Physiological
 Safety
----------------------
 Love and Belonging
 Esteem Notes
 Self Actualisation
----------------------
There is a need to determine at what level of the hierarchy the consumers
are to determine what motivates their purchases. ----------------------
Nutrament, a product marketed by Bristol-Myers Squibb, was originally ----------------------
targeted at consumers that needed to receive additional energy from their
drinks after exercise, a fitness drink. It was therefore targeted at consumers ----------------------
whose needs were for either Love and Belonging or Esteem. The
----------------------
product was not selling well and was almost terminated. Upon extensive
research, it was determined that the product was selling well in inner-city ----------------------
convenience stores. It was determined that the consumers for the product
were actually drug addicts who could not digest a regular meal. They ----------------------
would purchase Nutrament as a substitute for a meal. These consumers ----------------------
were at the Physiological level of the hierarchy. Motives often operate at a
subconscious level therefore are difficult to measure. ----------------------
 Perception ----------------------
What do you see? Perception is the process of selecting, organising and ----------------------
interpreting information inputs to produce meaning. We choose what
information we pay attention to, organise it and interpret it. Information ----------------------
inputs are the sensations received through sight, taste, hearing, smell and
touch. ----------------------
Selective Exposure: Select inputs to be exposed to our awareness. More ----------------------

likely if it is linked to an event, or intensity of input changes (sharp price
----------------------
drop) and satisfies current needs.
Selective Distortion: Changing/twisting current received information, ----------------------
inconsistent with beliefs. ----------------------
Advertisers that use comparative advertisements (pitching one product
against another), have to be very careful and ensure that consumers do ----------------------
not distort the facts and perceive advertisement as competition’s. A current ----------------------
example...MCI and AT&T...do you ever get confused?
----------------------
Selective Retention: Remember inputs that support beliefs, forget those
that do not. ----------------------
The average supermarket shopper is exposed to 17,000 products in a ----------------------
shopping visit, lasting 30 minutes. Sixty per cent of the purchases are
unplanned. An average person is exposed to 1,500 advertisements in a day. ----------------------
Interpreting information is based on what is already familiar and knowledge
that is stored in the memory. ----------------------
 Ability and Knowledge ----------------------
This refers to the need to understand an individual’s capacity to learn the ----------------------
changes in a person’s behaviour caused by information and experience.
To change the consumers’ behaviour about your product, you need to give ----------------------
them new information, free samples etc.
Notes When making buying decisions, buyers must process information.
Knowledge is familiarity with the product and expertise.
----------------------
Inexperienced buyers often use prices as an indicator of quality more than
---------------------- those who have knowledge about a product.
---------------------- Learning is the process through which a relatively permanent change in
behaviour results from the consequences of past behaviour.
----------------------
 Attitudes
---------------------- Knowledge and positive and negative feelings about an object or activity,
---------------------- whether tangible or intangible, living or non- living, drive perceptions.
An individual learns attitudes through experience and interaction with
---------------------- other people. A consumers attitude towards a firm and its products greatly
---------------------- influence the success or failure of the firm’s marketing strategy. Consider
the example of Oldsmobile vs. Lexus. Due to consumers’ attitudes,
---------------------- Oldsmobile needed to disassociate Aurora from the Oldsmobile name.
---------------------- Exxon Valdez: Nearly 20,000 credit cards were returned or cut-up after the
tragic oil spill.
----------------------
Honda’s “You meet the nicest people on a Honda” dispelled the unsavoury
---------------------- image of a motorbike rider that was present in the late 1950s.
---------------------- Attitudes and attitude changes are influenced by the consumers’ personality
and lifestyle.
---------------------- Consumers screen information that conflicts with their attitudes. They
---------------------- distort information to make it consistent and selectively retain information
that reinforces their attitudes. Brand loyalty.
---------------------- There is a difference between attitude and intention to buy (ability to buy).
----------------------  Personality
---------------------- Personality refers to the internal traits and behaviours that make a
person unique. Uniqueness arrives from a person’s heredity and personal
---------------------- experiences.
---------------------- Examples include:
----------------------  Workaholism
 Compulsiveness
----------------------
 Self confidence
----------------------
 Friendliness
----------------------  Adaptability
----------------------  Ambitiousness
----------------------  Dogmatism
 Authoritarianism
----------------------

 Introversion Notes
 Extroversion
----------------------
 Aggressiveness
----------------------
 Competitiveness
Traits affect the way people behave. Marketers try to match the store image ----------------------
to the perceived image of their customers. ----------------------
There is a weak association between personality and Buying Behaviour.
This may be due to unreliable measures. For example, Nike ads. Consumers ----------------------
buy products that are consistent with their self concept. ----------------------
 Lifestyles
----------------------
Recent trends in lifestyles in the US are a shift towards personal
independence and individualism and a preference for a healthy, natural ----------------------
lifestyle. Lifestyles are the consistent patterns people follow in their lives.
----------------------
Some examples – healthy foods for a healthy lifestyle and sun tan not being
considered fashionable in US until 1920’s, show how lifestyles impact ----------------------
advertising.
----------------------
 Social Factors
----------------------
Consumer wants, learning, motives etc. are influenced by opinion leaders,
the person’s family, reference groups, social class and culture. ----------------------
 Opinion leaders ----------------------
Marketers try to attract opinion leaders. They pay spokespeople to market
----------------------
their products. Michael Jordon (Nike, McDonalds, Gatorade etc). Again,
Michael Jackson...OJ Simpson...Chevy Chase…Saurav Ganguly…Ajay ----------------------
Jadeja…Salman Khan…It can be risjy.
----------------------
 Roles and family influences
Role refers to things that you should do based on the expectations of your ----------------------
position within a group. People have many roles. Husband, father, employer
----------------------
etc. Individual roles are continuing to change; therefore, marketers must
continue to update information. Family is the most basic group a person ----------------------
belongs to.
----------------------
Marketers must understand that –
 many family decisions are made by the family unit. ----------------------
 consumer behavior starts in the family unit. ----------------------

 family roles and preferences are the model for the children’s future ----------------------
family (can reject/alter etc.)
----------------------
 family buying decisions are a mixture of family interactions and
individual decision making. ----------------------
 family acts an interpreter of social and cultural values for the individual. ----------------------

Notes The family life cycle: Families go through stages; each stage creates
different consumer demands:
----------------------
 bachelor stage, single
----------------------  newly married, young, no children
----------------------  full nest I, youngest child under 6
 full nest II, youngest child 6 or over
----------------------
 full nest III, older married couples with dependent children
----------------------  empty nest I, older married couples with no children living with them,
head of the family in labour force
----------------------
 empty nest II, older married couples, no children living at home, head
---------------------- of the family retired
----------------------  solitary survivor, in labour force
 solitary survivor, retired
----------------------
 Modernised life cycle includes divorced and no children.
----------------------
With double income families becoming more common, the decision maker
---------------------- within the family unit is changing. Besides, since parents have less time for
children, they tend to let the children influence their purchase decisions, in
---------------------- order to alleviate guilt. (Children influence the sale of about $130 billion of
goods in a year.) Children also have more money to spend.
----------------------
 Reference Groups
----------------------
An individual identifies with the group to such an extent that he takes
---------------------- on many of the values, attitudes or behaviours of the group members.
Families, friends, civic and professional organisations or any group that
---------------------- has a positive or negative influence on a person’s attitude and behaviour.
---------------------- i) Membership groups
---------------------- Affinity marketing is focused on the desires of consumers that belong

to reference groups. Marketers get the groups to approve the product
---------------------- and communicate the approval to its members. Credit Cards is a
classic example here.
----------------------
ii) Aspiration groups (groups to which one wants to belong)
----------------------
iii) Disassociate groups (groups to which one does not want to belong)
---------------------- Honda, tries to disassociate from the “biker” group.
---------------------- The degree to which a reference group will affect a purchase decision
depends on an individual’s susceptibility to the influence of the reference
---------------------- group and the strength of his/her involvement with the group.
----------------------  Social Class
---------------------- Social class refers to an open group of individuals who have similar social
rank. US is not a classless society. Occupation, education, income, wealth,
---------------------- race, ethnic groups and possessions do contribute to social classifications.

Social class influences many aspects of our lives. For examples, the upper Notes
middle class Americans prefer luxury cars Mercedes.
Social class determines, to some extent, the types, quality, quantity of ----------------------
products that a person buys or uses. ----------------------
Lower class people tend to stay close to home when shopping. They do not
----------------------
engage in pre-purchase information gathering. Stores project definite class
images. ----------------------
Thus, family reference groups and social classes are all influences that
----------------------
impact consumer behaviour. They all operate within a larger culture.
 Culture and Sub-culture ----------------------
Culture refers to the set of values, ideas and attitudes that are accepted by ----------------------
a homogenous group of people and transmitted to the next generation.
----------------------
Culture also determines what is acceptable with product advertising. Culture
determines what people wear and eat, and where they reside and travel. ----------------------
Culture can be divided into subcultures: ----------------------
 geographic regions
----------------------
 human characteristics such as age and ethnic background.
Culture effects what people buy, how they buy and when they buy. ----------------------
Understanding consumer buying behaviour offers consumers greater ----------------------

satisfaction (Utility). We must assume that the company has adopted the
----------------------
marketing concept and is consumer oriented.
d) Buying roles can be described as follows: ----------------------
 An Initiator is the person who puts forward the idea of obtaining a ----------------------
certain product.
----------------------
 An Influencer is the one who gives his opinion about the suitability of
the product. ----------------------
 A Decider is the one who has the authority to decide whether the ----------------------
product should be purchased or not.
 A Buyer is the person who places the order. ----------------------
 A User is the person who puts the product to use. ----------------------

To sum up, complete Buying Behaviour involves – ----------------------
 Belief in the product
----------------------
 Developing attitudes
----------------------
 Making thoughtful choice
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
1. Buying Behavior is the action of consumers in the market place and
---------------------- the underlying motives for those actions.
---------------------- 2. Advertising media consists of any means by which sales messages
can be conveyed to potential buyers.
----------------------
3. There is no difference between attitude and intention to buy.
---------------------- 1. The Creative Platform is a document that outlines _________ strategy
decisions for an advertisement.
----------------------
Multiple Choice Single Response.
---------------------- 1. TRP stands for
---------------------- i. Total recall process
---------------------- ii. Target rating points
iii. TV related pricing
----------------------
----------------------
Activity 2
----------------------
1. Visit a super market and make a list of the products being sold there as
----------------------
per the levels of Maslow’s need hierarchy.
---------------------- 2. Find out the programs on TV which have top TRP ratings. Name the
---------------------- top 10 family entertainment programs of TV. Do you find that they
vary region to region? Do you notice a change in English and regional
---------------------- language programs?
----------------------
3.5 AGENCY STRUCTURES
----------------------
Many people are engaged in various specialised activities that make up
---------------------- the field of advertising.
---------------------- Where do they work? How are they organised? How do they interact?
How do they fit into the total scheme of the business?
----------------------
The Advertising Agency
---------------------- Planning and executing successful advertising campaigns call for people
who have specialised knowledge and skills; who are well informed in all
----------------------
aspects of marketing and consumer behaviour; who are sensitive to people and
---------------------- communication; who know the media and markets; and who are skilled writers,
artists, television producers, researchers, and managers.
----------------------

An organisation that brings such people together in a single business Notes
enterprise is the advertising agency. The agency provides the environment in
which the various specialists can interrelate and combine their talents to create ----------------------
effective advertising for the agency’s individual clients.
----------------------
The advertising agency offers a range of services. Operating outside the
advertiser’s own organisation, the agency is in a position to draw on the broad ----------------------
experience it gains while handling the diverse problems of different clients.
----------------------
Also, as an outsider, the agency can approach the advertiser’s problems
from an objective point of view. ----------------------
The agency has come to represent the core of the advertising profession, ----------------------
and Madison Avenue an area in New York where several large agencies are
located, has become the symbol of advertising to the world. ----------------------
How does an Ad agency function? ----------------------
Here is what the agency will do: ----------------------
1. Conduct consumer research to determine the strengths and weaknesses of
the product in household use. ----------------------
2. Conduct market research to describe the best prospects. ----------------------

3. Develop marketing strategy and budget. ----------------------
4. Help in naming and packaging. ----------------------
5. Develop and pre-test the creative concept.
----------------------
6. Strategise media planning to reach target markets efficiently.
----------------------
7. Devise a plan for launching the product to the trade.
8. Apply the creative concept to promotion and point-of-sale material. ----------------------
9. Devise publicity plan for exploiting the product’s news. ----------------------
10. Design a plan for generating enthusiasm within the sales force. ----------------------
In an effectively integrated plan, all these elements have a bearing on one
another. Progress in one area needs to be communicated to people working in the ----------------------
other areas. The major responsibility for this communication and coordination ----------------------
is borne by the agency.
To prepare a plan for an established brand, which may or may not require ----------------------
a new creative strategy, the agency performs similar functions. ----------------------
There is a planning cycle, usually a year, for every brand.
----------------------
The cycle begins with an analysis of the brand’s performance, knowledge
of how it is faring against competing brands, research on consumer usage and ----------------------
perceptions of the persuade and sell.
----------------------
This is why we say, “It’s not creative unless it sells.”
----------------------
What are the various departments in an Ad Agency?
A modern agency employs different types of people: ----------------------

Notes a) Creative services – copywriters, artists, visualisers, art directors, etc. They
develop ad campaigns, prepare a theme and create the actual ads.
----------------------
b) Media services – The responsibility here is media planning, buying and
---------------------- operations.
c) Client services group – It comprises account executives (AEs), account
----------------------
managers, account directors. The AE is the agency’s counterpart to the
---------------------- client’s Brand Manager.
d) Production group – Printing experts and other production experts.
----------------------
e) Review board – Key people who review the campaigns.
----------------------
The dominant type of agency provides a full spectrum of services
---------------------- including market research, new product introduction plans, creative services,
media purchases/releases, print, production etc.
----------------------
Today one finds Media Shops, Design Hot Shops or Creative Boutiques.
----------------------
Big agencies will generally support ancillary departments, for example,
---------------------- Research, sales promos etc.
---------------------- The key elements of each agency remain the same – account planning
and management, creative department, media department and production
---------------------- department.
---------------------- Each account group includes people from account planning and management,
creative, media and production departments.
----------------------
a) Client Services Group (Account Management and Planning)
---------------------- Role of Account Management – Account Directors, Supervisors, Managers
---------------------- and Executives like Client’s Marketing Managers and Brand Managers are
responsible for running the business. The AE is responsible to the client
---------------------- for running the campaign and coordinating agency activities for the said
account.
----------------------
Account management is handled by account executives, account
---------------------- supervisors, or management supervisors. Account executives are closest to
---------------------- the client in terms of day-to-day contact. They are likely to be assigned full
time to one of the client’s brands. They represent the agency to the client
---------------------- and, in turn, represent the client within the agency.
---------------------- These executives must be competent in both worlds. They must have a
thorough knowledge of their client’s business and understand all operations
---------------------- within the agency. They organise and control the flow of work on the
---------------------- account through all the stages, from initial planning to final execution.
Account executives assemble all the relevant facts bearing on the brand,
----------------------
analyse and interpret them, develop strategy, present the agency’s plans
---------------------- including creative work to the client, obtain all necessary approvals,
oversee the execution of those plans and monitor the results.
----------------------

To do all this well, account executives have to build good business relations Notes
with those they work with within the agency and a good rapport with the
client. When they need cooperation, they must be able to get it. They must ----------------------
be able to synthesise the thoughts of all involved and communicate them
----------------------
well to others.
As leaders, the account executives must take the initiative and generate ----------------------
enthusiasm among those who work with them. ----------------------
A Brief contains the following:
----------------------
 Details of client’s activities
----------------------
 Market share, brands and their equity
 Competitive brands and their value ----------------------
 Marketing objectives, plans ----------------------
 Advertising objectives, plans and problems to be solved through ----------------------
advertising
 An idea of ad budget ----------------------
b) Creative Services ----------------------

David Ogilvy says: “The creative function is the most important of all. ----------------------
The heads of our offices should not relegate their key creative people to
positions below their salt. They should pay them, house them, and respect ----------------------
them as individual stars.”
----------------------
It is the Creative department that produces the campaign, working on the
‘brief’ that the AEs produce. The department is headed by the Creative ----------------------
Director of the agency, who is also involved in overseeing work on each
----------------------
account, maintaining and improving quality and recruiting staff.
At the core of creative department is a series of creative teams, consisting ----------------------
of the copywriter, the art director and so on, who work together to produce ----------------------
advertising ideas.
Some creative departments have art studios to produce finished artwork ----------------------
for ads, while others get it done outside. Illustrators, photographers may be ----------------------
commissioned.
----------------------
Some large agencies have a film production department, Event management
department, PR department, Interactive department etc. (For example, ----------------------
PERCEPT).
----------------------
Account managers, media planners, and researchers also work creatively
in their own areas. ----------------------
Copywriters are generally grouped under a copy supervisor, who in turn
----------------------
reports to a creative director, who may report to an executive creative
director. Whereas a writer may work exclusively on one account, creative ----------------------
directors spread their attention over several accounts.
----------------------

Notes A creative review board at the top oversees the creative work on all
accounts. The number of layers of supervision increases with the size of
---------------------- the agency and the size of the account. To stimulate interaction, a writer
is often teamed with an art director and a television producer. Working
----------------------
together on the same problems, they experience the enterprising spirit of a
---------------------- small agency.
---------------------- c) Media Services

Media services are responsible for selecting the media for the campaign.
----------------------
“Space Buying” is an important function. Headed by the Media Director,
---------------------- it consists of media planners who select media and media buyers who
conduct the negotiations.
----------------------
Media researchers analyse data about the target audience for each medium
---------------------- and their comparative costs. The media department is also staffed with
analysts, planners, and buyers. Analysts keep abreast of changes in media
----------------------
audiences, costs, and competitors’ spending. They test alternative plans
---------------------- for reaching the best prospects most efficiently. Planners work closely
with other members of their respective account groups, for developing
---------------------- media strategy, allocating the client money, and planning schedule. Buyers
---------------------- execute the plan. Those who buy spot television and radio time look for the
best rates and place the orders. Since a detailed knowledge of the media
---------------------- situation in each market area is an advantage, television and radio spot
buyers in some agencies are assigned particular markets and buy time in
----------------------
those markets for all the clients of the agency.
---------------------- d) Traffic and Production Department
---------------------- The Traffic department ensures that every stage of the campaign is properly
coordinated and that the artwork/positive reaches the relevant newspaper/
----------------------
magazine/printer at the right time, in the right form. In some agencies, this
---------------------- is done by the production department only.
---------------------- e) Agency Management

The peculiar nature of agency business means that good financial
----------------------
management and strict accounting procedures should be followed. Ensure
---------------------- that media bills are paid on time.
---------------------- Cash flow may be a major problem for agencies. If a client pays late, the
agency must have the resources to pay bills.
----------------------
Advertising agencies are in the business to earn a profit. To do so, they must
---------------------- be well managed. Therefore, in addition to the bookkeeping functions, now
largely performed by the computer, there are people who plan and control
---------------------- the agency’s financial future, budget revenues and expenses, set operating
policies and function as administrators. These include people right from
----------------------
the president or chief executive officer to the various heads of department.
---------------------- Being a people business, the success of the agency depends largely on how

well it hires, trains, inspires and rewards its people. Strong leadership at Notes
the top often is the key.
----------------------
There is no better example of this kind of leadership than as described
by David Ogilvy, who when he was chairman of Ogilvy and Mather ----------------------
International said: “I want all our people to believe that they are working
in the best agency in the world. A sense of pride works wonders. The best ----------------------
way to “install a generator” in a man is to give him the greatest possible
----------------------
responsibility. Our management should devote more time to this than
routine salary reviews. Of course, salaries must be reviewed at regular ----------------------
intervals and “routine” raises must be given out; they are expected.
----------------------
But the most effective way to use money is to give outstanding performers
spectacular rewards at rare intervals. Nothing is too good for our make or- ----------------------
break individuals.
----------------------
It is virtually important to encourage free communication upward. Encourage
your people to be candid with you. Ask their advice—listen to it.” ----------------------
The agency-client relationship ----------------------
Today’s advertising agencies work for and are paid by their advertiser clients.
This was not always so. ----------------------
The early agents worked for and were paid by the media. The first agent on ----------------------
record was Volney B. Palmer, who in 1841 organised a newspaper advertising
and subscription agency. By 1849, he had established offices in New York, ----------------------
Boston, Baltimore and Philadelphia. At this early date, there were no directories ----------------------
of newspapers and no published rates. Operating as an independent salesperson,
Palmer sold space in the newspapers he represented to advertisers who wanted ----------------------
to reach those newspapers’ readers. The publishers paid him a commission of 25
percent on his sales. The publishers found this method of selling more efficient ----------------------
than selling direct through their own sales representatives, and advertisers ----------------------
wishing to reach people in several cities found value in such service. In 1865,
George P. Rowell opened an agency that started the practice of wholesaling ----------------------
space. Rowell contracted with 100 newspapers to sell him a column of space
each week for a year. For such quantity purchases he received a discounted ----------------------
price plus the 25 percent agency commission. He resold space to advertisers in ----------------------
one-inch units at very high prices.
----------------------
In 1876, with the founding of N. W. Ayer & Son, the agency business changed
from space selling for publishers to space buying for advertisers. Ayer launched ----------------------
an open-contract plus commission plan in which Ayer would act for advertisers,
trying to get the lowest possible rates from the media and then add a commission ----------------------
for its services. The commission ranged from 8 to 15 percent. In establishing
----------------------
the agency as a servant to advertisers, Ayer started the agency functions of
planning, preparing, and placing advertising. ----------------------
The main difference between the early Ayer organisation and today’s agencies
----------------------
is in the range of quality of services that obviously have increased with the
development of new media and expanding markets. ----------------------

Notes In its classical definition, an “agent” acts on behalf of a principal. However, the
agency contract with media contains a waiver which holds the agency solely
---------------------- responsible for the payment for the space or time, despite the fact that the
advertiser may default on payment to the agency for any reason.
----------------------
The formal contract that normally exists between an advertiser and the agency
---------------------- usually specifies in a general way what the agency is expected to do, often
by function: media, creative, research, billing etc., details the compensation
----------------------
arrangement between the parties; discusses ownership of the material provided
---------------------- by the agency; and spells out the basis upon which the agreement can be
terminated.
----------------------
Given below are a few points that could make agency client relationship a
---------------------- smooth one.
 The client should know the working of the agency.
----------------------
 The agency should be an extension of client’s marketing team.
----------------------
 The mode of payment should be clear.
----------------------  The Advertiser should visit the agency often.
----------------------  The AE should understand brand and competition. He should meet
deadlines always.
----------------------
 There should be specialised people to handle the technical aspects. The
---------------------- legal and ethical sides of ad campaigns should be well checked out by the
experts.
----------------------
 Whatever advertising an agency places for its client becomes the property
---------------------- of the client and is copyrighted in the client’s name.
---------------------- However, the agency is jointly liable and must defend itself against claims for
libel slander, copyright infringement idea piracy, plagiarism, violations of the
---------------------- right of privacy, deceptive advertising and unfair trade practices. Therefore,
---------------------- most agencies carry liability insurance against such claims.
---------------------- Summary
----------------------  Creativity involves ideation of new and unexplored perspectives. It entails
---------------------- visualising things from hitherto unknown angles. Creativity is the essence
of an effective advertising campaign.
----------------------  The greater the degree of creativity in the promotional message, the
---------------------- greater is its effect on the target audience.
 An advertising campaign is a series of advertisement messages that
---------------------- share a single idea and theme, which make up an integrated marketing
communication (IMC). Advertising campaigns appear in different media
----------------------
across a specific time frame.
----------------------  These days, thinking is divided into three basic descriptions: Weak
strategies, mid-strength strategies and strong strategies.
----------------------

 While working on the message, we must start with the marketing Notes
objectives that had been formulated for the brand.
 Creative writing is a term used to distinguish certain imaginative or ----------------------
different types of writing from generic writing. ----------------------
 Copywriting is the process of writing the words that promote a person,
business, opinion or idea. ----------------------
 Creative appeals attract attention and create an interest in the target ----------------------
audience. Marketers make use of appeals. These messages appeal to
----------------------
basic needs, social needs, psychological needs or to ultimately provoke
the consumer to act-to buy product. ----------------------
 There can be many types of appeals that advertising can resort to. Appeals
----------------------
can be: Rational, Emotional and Fear-based. Most ads use a mix of rational
and emotional. There can be many types of copy too. ----------------------
 The creative platform is a document that outlines message strategy ----------------------
decisions for an ad – the Creative Plan and the Copy Strategy. This is the
message strategy. ----------------------
 There are different kinds of media available today, Above-the-line and ----------------------
Below-the-line.
----------------------
 The study of consumer buying behaviour is a study of how consumers
spend time, money and effort on consumption related items. It includes: ----------------------
What they buy, Why they buy, When they buy, Where they buy, How
----------------------
often they buy and How often they use a product.
 Many people are engaged in the various specialised activities that make ----------------------
up the field of advertising. ----------------------
 Today’s advertising agencies work for and are paid by their advertiser
----------------------
clients. This was not always so. The early agents worked for and were
paid by the media. ----------------------
----------------------
Keywords
----------------------
●● Advertising appeal: Although several studies have examined the effects
of advertising appeals and arguments on consumer attitudes and purchase ----------------------
intentions separately, little research has focused on exploring how
advertising appeals interact with arguments to influence how consumers ----------------------
process advertising information, evaluate the advertised brand, and form ----------------------
their purchase intentions.
----------------------
●● Advertising Contract: A contractual agreement between an advertiser
and the operator of any form of advertising media for the purchase of ----------------------
specified types of advertising time or space.
----------------------
●● Advertising idea: The theme or concept that serves as the organising
thought for an advertisement. Ideas are used to dramatize the product- ----------------------
related information conveyed in advertising.
Notes ●● Advertising media: The various mass media that can be employed to
carry advertising messages to potential audiences or target markets
---------------------- for products, services, organisations or ideas. These media include
newspapers, magazines, direct mail advertising, Yellow Pages, radio,
---------------------- broadcast television, cable television, outdoor advertising, transit
---------------------- advertising and specialty advertising.
●● Advertising message: The visual and/or auditory information prepared
----------------------
by an advertiser to inform and/or persuade an audience regarding a
---------------------- product, organisation or idea. It is sometimes called the creative work by
advertising professionals in recognition of the talent and skill required to
---------------------- prepare the more effective pieces of advertising.
---------------------- ●● Copy platform: A statement prepared by the advertiser (often in
association with an advertising agency) setting forth the advertising
---------------------- strategy, a summary of the rationale for the strategy, and related
background information.
----------------------
●● Copy testing: Advertising is necessary to build a brand. Advertising
---------------------- is, in essence, communication, and marketers will always have to test.
However, advertisers today seem obsessed with creating entertaining
----------------------
advertising, ignoring the informative role of this form of communication
---------------------- ... Of those that remember something about the advertising, only about
one-quarter can cite a main point that reflects a real advertising message.
----------------------
●● Copy writer: A person with good verbal abilities who is talented in
---------------------- creating advertising ideas and skilled at writing advertising copy.
----------------------
----------------------
1. List four advantages of Press, TV, outdoor and cinema advertising.
----------------------
2. List four disadvantages of Press, TV, outdoor and cinema advertising.
---------------------- 3. What is MASLOW’s hierarchy of needs? What are they?
---------------------- 4. What are the three categories that effect the consumer buying decision
process?
----------------------
5. What are the main divisions in an advertising agency?
---------------------- 6. List five functions of an advertising agency?
---------------------- 7. What are the six stages in the consumer buying decision process?
8. What are the different stages in our life cycle that affect our buying
----------------------
behaviour?
---------------------- 9. Comment on the creativity of any two campaigns: The Blue Billion, Onida
‘Devil’, Sun Feast (with Shah Rukh Khan), Mountain Dew, Happydent,
---------------------- Cadbury Miss Palampur.
---------------------- 10. List four brands where only word-of-mouth works to sell their products.
----------------------

Answers to Check your Progress Notes
Check your Progress 1 ----------------------
Fill in the blanks. ----------------------
1. Advertising campaign is a series of advertisement messages that share a
single idea and theme. ----------------------
2. The campaign themes are usually developed with the intention of being ----------------------
used for a substantial period but many of them are short lived due to they
----------------------
being ineffective.
3. Advertising is both an art and a science. The science of advertising is the ----------------------
analytical part.
----------------------
----------------------
1. True ----------------------
2. True ----------------------
3. False ----------------------
Fill in the blanks.
----------------------
1. The Creative Platform is a document that outlines message strategy
decisions for an advertisement. ----------------------
Multiple Choice Single Response. ----------------------
1. TRP stands for ----------------------
i. Total recall process
----------------------
ii. Target rating points
----------------------
iii. TV related pricing
----------------------
Suggested Reading ----------------------
1. Clown, Kenneth and Bach, Donald. Integrated Marketing Communications. ----------------------
2. Belch & Belch. Advertising and Promotions. Tata McGraw Hill
----------------------
3. Batra, Rajiv. Myers, John G; Aaker, David A. Advertising Management.
PHI ----------------------
4. Kleepner, Otto. Advertising Procedure. Prentice Hall. ----------------------
5. Duncon. Integrated Marketing Communications. Tata McGraw Hill ----------------------
----------------------
----------------------
----------------------

Notes
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Brand Image, Personality and Equity
UNIT
4
Structure:
4.1 Introduction
4.2 Different Types of Brands
4.3 Selecting a Brand Name
4.4 Building a Brand
4.5 Developing Brand Personality
4.6 The Brand Image and Equity
Summary
Keywords
Suggested Reading
Brand Image, Personality and Equity 103

Notes
Objectives
----------------------
----------------------
• Trace the evolution of branding.
----------------------
• Identify different types of brands in the market.
---------------------- • Explain how to build a brand.
---------------------- • Describe how to develop brand personality.
---------------------- • Define brand image and equity.
---------------------- 4.1 INTRODUCTION

---------------------- Advertising and brands:
---------------------- Marketers spend enormous amount of money on promoting the brands. As
competition increases, marketers have to churn out newer ways of competing.
---------------------- Better manufacturing processes and technology can no longer provide a
---------------------- competitive edge.
Products are born in the factory. They become brands when they reach the
---------------------- head and heart of the consumer.
---------------------- A brand is a name, term, sign, symbol or design or a combination of them,
intended to identify the goods or services of one seller or a group of sellers and
---------------------- to differentiate them from those of the competitors, according to the American
---------------------- Marketing Association.
Brand names like Smirnoff, Ford and Tata take their names from the
----------------------
families that started the business. Brands like Mercedes and Ponds take their
---------------------- name from their creators.
Evolution of Brands
----------------------
Brands are linked to uniformity. Brands came into existence when
---------------------- there was uniformity or parity of products. The products had to differentiate
themselves in order to be noticed.
----------------------
During the industrial age, there was mass production, leading to products
---------------------- being undistinguishable from others. There were varieties of soaps, biscuits, tea
---------------------- and coffee. It, therefore, became necessary for manufacturers to differentiate
them.
---------------------- Brands help differentiate, command a premium and create a preference.
---------------------- They are a promise of quality and a relationship with the consumer. They
establish confidence and credibility with the company and its audiences.
---------------------- However, the real meaning of brands has gone beyond the mere definition
---------------------- of being a logo, symbol or a trademark.
A brand is a perceptual cumulative deposit of all the interaction and
----------------------
experience that a customer has with the brand.

Brands and products Notes
Unbranded products are commodities for e.g. tea, coffee and groundnut
----------------------
oil. A product becomes a brand when the product delivers a functional benefit
and an emotional benefit. For example, when you buy Nescafe, it is the unique ----------------------
associations like the international image, sophistication, lifestyle and taste that
is being bought, along with the functional benefit of price, granules and colour. ----------------------
What is the difference between Annapurna Atta and plain atta or Dawat ----------------------
Vanaspati rice and plain vanaspati rice?
----------------------
a) What is a brand?
Some definitions of brand are: ----------------------
i) “A name, term, sign, symbol or design, or a combination of these, that ----------------------
is intended to identify the goods and services of one business or group
of businesses and to differentiate them from those of competitors.” ----------------------
 Brand name is that part that can be spoken, including letters, ----------------------
words and numbers, such as 7UP. Brand names simplify shopping,
guarantee a certain level of quality and allow for self expression. ----------------------
 Brand mark refers to elements of the brand that cannot be spoken, ----------------------
e.g. symbol
----------------------
 Trade character e.g. Ronald McDonald, Pillsbury Doughboy
----------------------
 Trade mark is the legal designation that the owner has exclusive
rights to the brand or part of a brand. ----------------------
 Trade name is the full legal name of the organisation. For ----------------------
example, Ford, not the name for a specific product.
ii) “A mixture of tangible and intangible attributes symbolised in ----------------------
a trademark, which, if properly managed, creates influence and ----------------------
generates value.” (Interbrand, a leading branding consultancy)
----------------------
iii) A brand is a… complex symbol. It is the intangible sum of a product’s
attributes, its name, packaging and price, its history, reputation and ----------------------
the way it is promoted.
----------------------
iv) A brand is defined as a name, term, design, symbol, or any other
feature that identifies one seller’s goods or services from those of ----------------------
other sellers. A brand name may identify one item, a family of items
or all items of that seller. - Dictionary of Marketing Terms ----------------------
v) “A brand is …not a product, not a service but an experience.” (Allen ----------------------
Rosenshine, Chairman and CEO, BBDO Worldwide)
----------------------
vi) A brand is ……an understanding and appreciation by the users of how
a product fits in their lives both rationally and emotionally. ----------------------
Ever since the benefits of industrialisation started percolating to a large ----------------------
market base in the nineteenth century, it has been noticed that some
products sell better than the others, while addressing similar requirements ----------------------

Notes of a market segment. Some companies, it was noticed, fared better in terms
of revenues/profits, while others tended to have stronger brand equity.
----------------------
Earlier, it was the sheer manufacturing capability and ability to mass
---------------------- produce that were crucial. It was post World War II that the concept of
companies or products or services as ‘brands’ began to acquire a serious
---------------------- dimension.
---------------------- This happened, one could say, primarily due to proliferation of new media
– TV, radio, billboard and a vibrant print media, followed by a host of new
---------------------- media.
---------------------- Conventional branding doctrines harped on one dimensional branding, that
is branding exercises that essentially focused on building market share.
---------------------- Today, branding has evolved to become an integrated exercise through a
variety of media.
----------------------
A brand is no longer limited by functionality. In 1988, Kellog’s positioned
---------------------- its breakfast cereal on the basis of functionality; it has now become “Life
---------------------- has become a whole lot simpler!”
We can note the memorable line of TATA - “We also make steel”. It
---------------------- symbolises trust and not merely the functionality of steel.
---------------------- b) Benefits of branding
---------------------- i) To buyer:
 Helps buyers identify the product that they like/dislike.
----------------------
 Identifies marketer.
----------------------
 Helps reduce the time needed for purchase.
----------------------  Helps buyers evaluate the quality of products, especially if they
---------------------- are unable to judge a product’s characteristics.
 Helps reduce the buyer’s perceived risk of purchase.
----------------------
 Gives the buyer a psychological reward from owning the brand.
---------------------- (E.g. Rolex or Mercedes).
---------------------- ii) To seller:
----------------------  Differentiates product offering from competitors.

 Helps segment market by creating tailored images (Contact
---------------------- lenses).
----------------------  Increases the possibilities of repeat purchases.
----------------------  Reduces price comparisons.
 Helps a company introduce a new product that carries the name
----------------------
of one or more of its existing products.
----------------------  Lowers company design costs and advertising and promotional
---------------------- costs.

 Facilitates easier cooperation with intermediaries with well Notes
known brands
----------------------
 Facilitates promotional efforts.
 Helps foster brand loyalty, thereby helping to stabilise market ----------------------
share.
----------------------
 Opens the possibility of price increase. Firms may be able to
charge a premium for the brand. ----------------------
Brand loyalty is declining due to an increase in similar new products, ----------------------
marketing activities that encourage brand switching and the increasing
quality of private label products. ----------------------
Brand equity, financial value associated with the brand. It may increase, ----------------------
when licensing royalties are gained.
----------------------
c) Four branding elements firms must consider –
----------------------
i) What should the firm’s name logo and trade characters be?
ii) Should there be a name change? (Over 1000 ongoing firms change ----------------------
names each year, such as DuPont, Ultratech.)
----------------------
iii) Has the nature of the business changed? If the nature of business has
changed, there may be a need to alter the name. (Southwest Airlines) ----------------------
iv) Has there been an expansion in the geographic markets? (United ----------------------
Brands changed its name to CHIQUITA brands.)
----------------------
4.2 DIFFERENT TYPES OF BRANDS ----------------------
There are six major types of brands: ----------------------
a) Product brands (e.g., packaged goods, durables, soft goods): They are ----------------------
the most prevalent (among the conventional types) and they easily come to
mind when consumers are asked to recall brands. Liril, Maruti and Cadbury ----------------------
are examples of product brands.
----------------------
b) Service brands (intangible services) : They are lesser in numbers than
product brands. Certain service brands do sell products, but the brand itself ----------------------
is the store, not the products that it sells. Food World, Air India, Cox &
Kings, FedEx are all traditional service brands. ----------------------
c) Personal brands: Sportspersons, entertainers, politicians and business ----------------------

leaders have always been with us, but they are now being packaged like
----------------------
brands. Sachin Tendulkar, Shah Rukh Khan are the current epitomes of
successful personal brands. ----------------------
d) Organisational brands: Some Corporations, NGOs (non government
----------------------
organisations), political parties, educational institutions are not brands that
a company may market, but the company itself. In the corporate setting, these ----------------------
can be strategically retooled into company-wide “masterbrands” which can
have a profound influence on the strategic planning and operations of the ----------------------

Notes entire organisation. General Electric, Microsoft and AT&T are company
masterbrands that can achieve a place of greater leverage in the markets
---------------------- in which they compete. WWF and CRY are NGO brands, while BJP and
Congress are political party brands.
----------------------
e) Event brands: Periodic experiences, usually within the worlds of sports,
---------------------- entertainment or fine arts, achieve their promoters’ goals by making the
most of the traditional approaches to brand building. Miss India Filmfare
----------------------
awards and NatWest Cricket Cup are examples of event brands.
---------------------- f) Destination brands: Cities, countries and resorts have become common
because businesses in particular areas have also recognised the value of
----------------------
selling their locales using traditional and non-traditional, brand building
---------------------- methods. Tourism corporations like Maharashtra Tourism, Kerala Tourism
and North East India have created brands to help sell their region to the
---------------------- tourists.
---------------------- Another classification of brands includes –
---------------------- a) Manufacturers’ Brands (MB)

These are initiated by the producer. Eighty five per cent of the food items,
---------------------- all autos, 75% major appliances and more than 80% gasoline fall under
---------------------- this. It requires the producer to be involved in distribution, promotion, and
to some extent, pricing. Brand loyalty is encouraged by quality, promotion
---------------------- and guarantees.
---------------------- Producer tries to stimulate demand, encouraging middlemen to make the
product available (PULL).
----------------------
b) Private Distributor Brands (PB)
---------------------- These are initiated and owned by the resellers. Fifty per cent of shoes,
33% tire market, 13% food and 25% appliances fall under this category.
----------------------
Manufacturers are not identified in the product. This type of branding helps
---------------------- retailers develop more efficient promotion, generate higher margins and
increase store image.
----------------------
 Wholesalers brands (IGA) and Retailers brands are other types of
---------------------- brands.
---------------------- Kodak, in Japan, markets private label film since the manufacturer’s labels
were not successful in marketplace.
---------------------- DuPont, with Initiatives Inc, design/make fashion items, utilising its fibre
---------------------- resources and develop another customer for them. It works with retailers to
design fashions.
----------------------
The competition between manufacturers brands and private brands (15%
---------------------- retail grocery) is intensifying.
How the biggest brands are faring at the supermarket
----------------------
The reasons for the increase in private brands are –
----------------------
 Increasing prices of MB in 1980s with flat demand
 Increasing quality of PB Notes
 Increasing promotion of PB
----------------------
 Higher margins for retailers
 Regional products on the office. ----------------------
Manufacturer brands are beginning to fight back through – ----------------------
 Reducing price (Marlboro Monday, reduced 20%) ----------------------
 Promotions focusing on quality and directed at PL
----------------------
 New product launches, line extensions
 Focusing on core products. ----------------------
Consumers are purchasing PB products that were once bastions of MB, ----------------------
for instance personal care products. Beer and cigarettes also fall in this
category. This is an indication of consumers’ growing confidence of the ----------------------
quality of PBs.
----------------------
Marketers of MB products (esp. Philip Morris) are developing products
that appear to be PB products, in response to the growing preference of ----------------------
customers, for this type of product.
----------------------
c) Generic Brands
----------------------
 Indicates only product category.
 Began as low cost alternative in the drug industry. ----------------------
 Accounts for less than 1% of supermarket revenue, even though 85% ----------------------
stock them. Cheaper than branded items.
----------------------
 Accounts for less than 1% of retail sales.
----------------------
1. A brand is not a product or service but an experience. ----------------------
2. A brand is an understanding and appreciation by the users.
----------------------
3. A brand is limited by the functionality of the product.
----------------------
Fill in the blanks.
1. Brand ______ is financial value associated with the brand. ----------------------
----------------------
Activity 1 ----------------------
1. Visit the grocery store in your area and make a list of 5 branded ----------------------
products and 5 unbranded products in the same product category.
----------------------
2. List two brands that are Product, Service, Personal, and Destination
brands (Exclude the brands mentioned in this unit). ----------------------

Notes 4.3 SELECTING A BRAND NAME
---------------------- 1. Criteria for choosing a name
---------------------- The criteria for choosing a name are many. The name should –
 Be easy for the customers to say, spell and recall (including foreigners)
----------------------
 Indicate the product’s major benefits
----------------------
 Be distinctive
----------------------  Be compatible with all products in the product line
----------------------  Be used and recognised in all types of media
----------------------  Have single and multiple words Bic, Dodge Grand Caravan, IBM PC
(letters), or a combination. Mazda RX7
----------------------  Have easy availability. (If there are already over 400 car “name
---------------------- plates”, it makes it difficult to select a new one.)
 Use words of no meaning to avoid negative connotation, Kodak,
----------------------
Exxon
----------------------  Facilitate being created internally by the organisation, or by a
consultancy
----------------------
 Follow legal restrictions, i.e. food products must adhere to the
---------------------- Nutrition Labelling and Education Act
---------------------- In the case of a service, the company name must be flexible enough to
encompass the activity of current services as well as new ones in the future
---------------------- (Southwest Airlines). Companys use symbols. Some frequently used
---------------------- symbols include AT&T’s globe, Kelvinator’s penguin etc.
The naming process goes from idea generation to idea evaluation and on
---------------------- to legal evaluation. The writer should ask the question – What value to the
---------------------- product should the name provide?
2. Protecting a brand
----------------------
There is a need to design a brand that can be protected through registration.
---------------------- Generic words are not protectable (aluminum foil); surnames and
geographic or functional names are difficult to protect.
----------------------
To protect exclusive rights to a brand, one must make certain that the brand
---------------------- is not likely to be considered an infringement on any existing registered
brand. Guard against a brand name becoming a generic names term used
----------------------
to refer to general products category. Generic cannot be protected. i.e.
---------------------- Aspirin, Shredded Wheat, Xerox, Rollerblade, Thermos, Kleenex.
---------------------- 3. Branding policies

The first question that arises is: To brand or not to brand. Homogenous
---------------------- products are difficult to brand (Not Purdue, Robinson Brick).
----------------------

Branding policies include – Notes
 Individual Branding: Naming each product differently P&G. This
----------------------
facilitates market segmentation and there is no overlap.
 Overall Family Branding: All products are branded with the same ----------------------
name, or part of a name, i.e. Kraft, promotion of one item also
----------------------
promotes other items.
 Line Family Branding: Within one product line – i.e. P&G’s Ivory ----------------------
line.
----------------------
 Brand Extension Branding: Use one of its existing brand names as part of a
brand for an improved or new product, usually in the same product category. ----------------------
75% of the new products are brand extensions! ----------------------
Can virgin name sell cola, computers or vodka? To use brand extensions,
the products should be either related (not the case for Virgin) or the brand ----------------------
name should have a value over and above the particular product category, ----------------------
i.e. a counter culture image for example. If that is the case, then it might
work. ----------------------
4. Brand Licensing ----------------------
This refers to the approval for the use of trade marks on other products, for
----------------------
a fee. i.e. Harley Davidson – Cologne, McDonalds – McKids.
There are pros and cons for this argument: It brings extra revenue, free ----------------------
publicity and trade mark protection. It also helps develop of brand. It can ----------------------
bring about a lack of manufacturing control, through bombardment of
unrelated products. ----------------------
----------------------
4.4 BUILDING A BRAND
What factors are important in building brand value? ----------------------
Professor David Jobber has identified seven main factors in building successful ----------------------
brands:
----------------------
1. Quality
----------------------
Quality is a vital ingredient of a good brand. Remember the core benefits,
the things consumers expect. These must be delivered consistently well. ----------------------
The branded washing machine that leaks or the training shoe that often ----------------------
falls apart when wet will never develop brand equity.
----------------------
Research confirms that, statistically, higher quality brands achieve a higher
market share and higher profitability than their inferior competitors. ----------------------
2. Positioning ----------------------
Positioning is about the position a brand occupies in a market, in the minds
of consumers. Strong brands have a clear, often unique position in the ----------------------
target market. Positioning can be achieved through several means including ----------------------

Notes brand name, image, service standards, product guarantees, packaging and
the way in which it is delivered. In fact, successful positioning usually
---------------------- requires a combination of these things.
---------------------- 3. Repositioning
Repositioning occurs when a brand tries to change its market position to
----------------------
reflect a change in consumer’s tastes. This is often required when a brand
---------------------- has become tired, perhaps because its original market has matured or
has gone into decline. The repositioning of the Lucozade brand from a
---------------------- sweet drink for children to a leading sports drink is one example. Another
example would be the changing styles of entertainers with above-average
----------------------
longevity such as Kylie Minogue and Cliff Richard.
---------------------- 4. Communication
---------------------- Communication also plays a key role in building a successful brand. Brand
positioning is essentially about customer perceptions – with the objective
---------------------- of building a clearly defined position in the minds of the target audience.
---------------------- All elements of the promotional mix need to be used to develop and sustain
customer perceptions. Initially, the challenge is to build awareness, then to
---------------------- develop the brand personality and reinforce the perception.
---------------------- 5. Brand extension and stretching
---------------------- Marketers have long recognised that strong brand names, which deliver
higher sales and profits (i.e. those that have brand equity), have the potential
---------------------- to work their magic on other products.
---------------------- The two options for doing this are usually called “brand extension” and
“brand stretching.”
----------------------
a) Brand extension
---------------------- Brand extension refers to the use of a successful brand name to launch a
---------------------- new or modified product in a same broad market. A successful brand helps
a company enter new product categories more easily. For example, Fairy
---------------------- (owned by Unilever) was extended from a washing liquid brand to become
a washing powder brand too. Lucozade has undergone a very successful
---------------------- brand extension from children’s health drink to an energy drink and sports
---------------------- drink.
b) Brand stretching
----------------------
Brand stretching refers to the use of an established brand name for products
---------------------- in unrelated markets. For example the move by Yamaha (originally a
Japanese manufacturer of motorbikes) into branded hi-fi equipment, pianos
----------------------
and sports equipment. Consumers are more likely to trust the new product.
---------------------- The new product will attract quicker customer awareness and willingness
to trial or sample the product Promotional launch costs (particularly
---------------------- advertising) are likely to be substantially lower.
----------------------

i) Advantages Notes
When implemented successfully, brand extension can have several
----------------------
advantages:
 Distributors may perceive there is less risk with a new product, if it ----------------------
carries a familiar brand name. If a new food product carries the Heinz
----------------------
brand, it is likely that customers will buy it.
 Customers will associate the quality of the established brand name ----------------------
with the new product.
----------------------
6. Why should businesses try to build their brands?
----------------------
There are many advantages to businesses that build successful brands.
These include: ----------------------
 Higher prices ----------------------
 Higher profit margins
----------------------
 Better distribution
----------------------
 Customer loyalty
Businesses that operate successful brands are also much more likely to ----------------------
enjoy higher profits. ----------------------
A brand is created by augmenting a core product with distinctive values,
that distinguish it from the competition. This is the process of creating ----------------------
brand value. ----------------------
All products have a series of core benefits, benefits that are delivered to all
----------------------
consumers. For example:
 Watches tell the time ----------------------
 CD-players play CDs ----------------------
 Toothpaste helps prevent tooth decay ----------------------
 Garages dispense petrol
----------------------
Consumers are rarely prepared to pay a premium for products or services
that simply deliver core benefits. Successful brands are those that deliver ----------------------
added value, over and above the core benefits. These added values enable
the brand to differentiate itself from the competition. When done well, the ----------------------
customer recognises the added value in an augmented product and chooses ----------------------
that brand in preference over others.
----------------------
For example, a consumer may be looking for reassurance or a guarantee of
quality in a situation where he or she is unsure about what to buy. A brand ----------------------
like Mercedes, Sony or Microsoft can offer this reassurance or guarantee.
----------------------
Alternatively, the consumer may be looking for a brand to add meaning to
his or her life in terms of lifestyle or personal image. Brands such as Nike, ----------------------
Porsche or Timberland do this.
----------------------

Notes 7. Building successful brands
Successful brand building helps profitability by adding values that entice
----------------------
customers to buy. They also provide a firm base for expansion into product
---------------------- improvements, variants, added services, new countries and so on.
They also protect the organisation against the growing power of
----------------------
intermediaries. And last, but not least, they give an identity to organisations
---------------------- from being faceless.
---------------------- 4.5 DEVELOPING BRAND PERSONALITY

----------------------
1. What is Brand image?
---------------------- There are three components to Brand Image:
----------------------  attributes
----------------------  consequences
 brand personality
----------------------
Brand image is the association that a consumer has for a brand: all thoughts,
---------------------- feelings, imagery, even colours, sounds and smells, that are mentally linked
to the brand in the consumers’ memory.
----------------------
For instance, take the case of McDonald’s. McDonald’s can be linked to
---------------------- Ronald McDonald. An image of a typical user would be a young teenager
or small child, a feeling of having fun, a product characteristic such as
----------------------
service, a coloured symbol such as yellow golden arches, a hurried lifestyle,
---------------------- with an object such as car and an activity such as going to a movie theater
next to McDonald’s and the smell of French fries.
----------------------
All these would add up to the image we have in our minds about McDonald’s.
---------------------- 2. Brand personality
---------------------- Brand personality includes associations with particular characters, symbols,
endorsers, lifestyles and types of users.
----------------------
Brand personality associations create a composite image of a brand – vis-
---------------------- à-vis people. They make us think of a brand as if it were a person. Just as a
person would have certain characteristics that define his/her personality, so
---------------------- does a brand. Just as we relate to other people, consumers relate to brands:
---------------------- a) A consumer might relate very intensely to one brand.
---------------------- b) A brand can often be thought of as masculine or feminine, modern or
old-fashioned, everyday blue-collar or elegantly upper-class.
----------------------
c) Such characterisation is made often not just for particular brands but
---------------------- for product categories too. For example, wine would be thought of as
more “upper class” than beer, regardless of the wine in question.
----------------------
----------------------

Brand personality, just like human personality, goes beyond demographic Notes
descriptors. People typically characterise each other on hundreds of
personality trait adjectives. We describe people as warm, stupid, mean- ----------------------
spirited, aggressive etc. Similarly we can describe brands as human beings ----------------------
with personality traits.
----------------------
3. Personality Study
Psychologists who have studied personality descriptions typically subscribe ----------------------
to the “trait” approach to studying and measuring human personality. They ----------------------
believe that every person can be calibrated on the extent of certain traits –
such as “warm”, “aggressive” etc. ----------------------
Personality Researchers have reduced adjectives to “Big Five” basic ----------------------
underlying dimensions:
----------------------
a) Extroversion/Introversion (e.g. adjective: adventurous-cautious,
sociable-recluse) ----------------------
b) Agreeableness (e.g. good-natured- irritable, gentle-headstrong) ----------------------

c) Conscientiousness (e.g. responsible-undependable, tidy-careless) ----------------------
d) Emotional stability (e.g. Composed-excitable, calm-anxious) ----------------------
e) Culture (artistically sensitive-insensitive, refined-crude, imaginative-
----------------------
simple)
A brand can acquire a personality profile through advertising-created ----------------------
associations with certain types of users or the kind of people used to endorse ----------------------
it in the advertising. Other factors that contribute to making the association
include direct observations of typical users, packaging, culturally ingrained ----------------------
stereotypes, word-of-mouth and news media reports or publicity. These ----------------------
avenues should be considered in tandem with advertising, as ways of
developing or enhancing brand personalities. ----------------------
If we think of someone (or a brand) as adventurous and excitable, we are ----------------------
likely to associate with this person (or brand) feelings of excitement or fun.
----------------------
i) Pepsi – What is the personality profile?
----------------------
ii) Surf – “Good friend” Lalitaji, legendary instance.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
---------------------- A brand’s personality also creates an association of that brand with certain
important life ‘values.’
----------------------
A ‘value’ can be defined as a “centrally held, enduring belief which guides
---------------------- action and judgments across specific situations and beyond immediate
goals to more ultimate and end-states of existence.”
----------------------
Examples of values are:
----------------------  pursuit of an exciting life
----------------------  search for self-respect
----------------------  need to be intellectual

 desire for self expression
----------------------
 need for security
----------------------
 and so on.
---------------------- Individuals differ in the extent to which they hold different values as central
---------------------- to their lives: one may value fun and excitement another may be concerned
with self-expression or security.
---------------------- A brand that acquires a distinctive personality may get strongly associated
---------------------- with a certain value and strongly attract people who attach importance to
that value.
---------------------- The association with a brand need not be positive and rich, but it needs to
---------------------- be clear and consistent in order to be strong and distinctive.
Brand values - Surf
----------------------
Surf has always been regarded as a trusted family brand. While it offers
---------------------- tough stain removal, it is seen as being caring and looking after the family’s
clothes.
----------------------
----------------------

A brand that over the years, acquires a distinctive, well-known personality. Notes
It becomes an “old friend.”
----------------------
 Consumers feel familiar and comfortable with it.
 It offers a sense of security and reassurance. ----------------------
 Most consumers would rather pick it up than a newer brand from ----------------------
which they feel psychologically distant.
----------------------
 One of the reasons that market-leading brands tend to stay that way
(e.g. Surf) is that the brand has acquired a “good friend” personality. ----------------------
Personality can also be a liability, if the brand slowly gets to be perceived ----------------------
as being old-fashioned and out-of-step with times, and consumers begin to
prefer a newer, more contemporary and different brand. In such a situation, ----------------------
it becomes vital to “contemporise” and “freshen” the personality over the
years. ----------------------
4. Importance to Marketers ----------------------

For advertisers, development and reinforcement of personality for brands ----------------------
serves to differentiate brand from competition. When many brands are near
or same in terms of technology (or are perceived so by customers), the only ----------------------
difference is the personality associated with them.
----------------------
By creating a favourable and liked personality, a marketer can set his
brand apart, which often enables the marketer to gain market share and/or ----------------------
facilitates charging a higher price.
----------------------
A brand personality is often unique and non-preemptible: While competitors
can match a brand’s features and price, they usually cannot duplicate the ----------------------
brand personality. ----------------------
Advertising is not simply a short-term investment for immediate sales, but
----------------------
a longer-term enhancement of the brand’s “equity” or “goodwill.”
Companies that create advertisements that enhance brand equity consider ----------------------
the value of a brand (or brand name) an asset, like a bank deposit. ----------------------
Advertising that creates or reinforces a brand’s personality serves to
increase asset value for that brand; advertising that lacks such character ----------------------
serves to depreciate this asset value. ----------------------
A brand acquires higher sale price if sold to another company.
----------------------
In some countries (Great Britain) the asset value of a brand can be included
on the balance sheet; therefore, a brand has financial implications. ----------------------
A brand’s asset value can command such high prices, because of what it ----------------------
gives the company that owns it:
----------------------
 Access to a distribution network.
----------------------
 High consumer awareness and loyalty, leading to a stream of
repurchases (and therefore income) in the years to come. ----------------------

Notes  Economies in terms of marketing expenses, especially in the costs of
launching new brands.
----------------------
5. Endorsing a brand personality
---------------------- Endorsing a brand personality can be done in a number of ways.
---------------------- a) Endorser
---------------------- Choice of endorser is crucial, because the personality of endorser can be
transferred to the brand with repetition.
----------------------
David Ogilvy created a very strong image for Hathaway shirts by using
---------------------- a spokesman wearing a patch. Nike athletic shoes gained tremendous
personality definition by its use of basketball star Michael Jordan. Amitabh
---------------------- Bachchan lent a strong image to ICICI, Reid & Taylor, Parker pens.
---------------------- b) User Imagery
---------------------- The kind of brand user portrayed in the ad can also be important. Some
examples include Seagram’s profile of a young successful MD and the
---------------------- Zodiac man.
---------------------- c) Executional Elements
---------------------- Elements such as choice of music (in TV ads), visual direction, pace and
nature of editing, colour schemes, layout and typography can contribute
---------------------- substantially to a brand’s personality.
---------------------- d) Symbols
---------------------- A very useful executional element is the use of a brand symbol, such as
Wells Fargo’s stagecoach, McDonald’s golden arches, Meryll Lynch’s
----------------------
bull or Kelvinator’s penguin. The best symbols have very appropriate
---------------------- associations such as the trustworthiness and reliability imagery of Wells
Fargo’s stagecoach. If your brand does not have a symbol, consider creating
---------------------- one, to give it an identity and personality.
---------------------- e) Consistency
---------------------- In addition to content of advertising, another basic principle is very important
in executing a brand strategy, which is the principle of predictability and
---------------------- consistency.
---------------------- Just as in positioning strategy, a brand personality can only develop
successfully if the important symbolic aspects of the brand remain
----------------------
consistent over time. Brands that change these elements risk diluting their
---------------------- personalities or having no personality at all.
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
4.6 THE BRAND IMAGE AND EQUITY ----------------------

1. Brand equity ----------------------
Brand equity refers to the value of a brand. Brand equity is based on the ----------------------
extent to which the brand has high brand loyalty, name awareness, perceived
quality and strong product associations. Brand equity also includes other ----------------------
intangible assets such as patents, trademarks and channel relationships.
----------------------
2. Brand image
----------------------
Brand image refers to the set of beliefs that customers hold about a particular
brand. It is important to develop that well, since a negative brand image ----------------------
can be very difficult to shake off.
----------------------
3. Brand extension
Brand extension refers to the use of a successful brand name to launch a new ----------------------
or modified product in a new market. Virgin is perhaps the best example of
----------------------
how brand extension can be applied to quite diverse and distinct markets.
4. Brands and products ----------------------
What is the difference between brands and products? ----------------------

Brands are rarely developed in isolation. They normally fall within a ----------------------
product line or product group of a business.
----------------------
A product line is a group of brands that are closely related in terms of their
functions and the benefits that they provide. A good example would be the ----------------------
range of desktop and laptop computers manufactured by Dell.
----------------------
A product mix relates to the total set of brands marketed by a business. A
product mix could, therefore, contain several or many product lines. The ----------------------
width of the product mix can be measured by the number of product lines
that a business offers. For a good example, visit the web site of Hewlett- ----------------------
Packard (HP). HP has a broad product mix that covers many segments of
----------------------
the personal and business computing market. How many separate product
lines can you spot from their web site? ----------------------
Managing brands is a key part of the product strategy of any business, ----------------------
particularly those operating in highly competitive consumer markets.

Notes
----------------------
----------------------
1. Brand image is the association that a consumer has for a brand.
----------------------
2. Brand extension refers to the use of a successful brand name to launch
---------------------- a new or modified product in a new market.
3. Brands are developed in isolation; they are different from the products
----------------------
or product lines.
---------------------- 1. A ______ is the centrally held, enduring belief which guides action
and judgments across specific situations and beyond immediate goals
---------------------- to more ultimate and end-states of existence.
---------------------- 2. Brand __________ refers to the use of an established brand name for
products in unrelated markets.
----------------------
----------------------
Activity 2
----------------------
1. Check advertisements in the local TV general entertainment channel
---------------------- and make a list of some brands that are ‘individual’, ‘family’, ‘line
---------------------- family’ and ‘brand extensions’.
2. Check the newspaper for brand advertisements with registered Brand
---------------------- names with symbol ‘R’ or ‘TM’ next to the name. List four brands that
---------------------- are advertised in the newspaper.
----------------------
Summary
----------------------
 Marketers spend great sums of money for promoting the brands. As
---------------------- competition increases, marketers have to discover newer ways of
competing. Products are born in the factory. They become brands when
----------------------
they reach the head and heart of the consumer. Better manufacturing
---------------------- processes and technology can no longer provide a competitive edge.
 A brand is a name, term, sign, symbol or design or a combination of
----------------------
them, intended to identify the goods or services of one seller or a group of
---------------------- sellers and to differentiate them from those of the competitors, according
to the American Marketing Association.
----------------------
 A product becomes a brand when the product delivers a functional benefit
---------------------- and an emotional benefit.
 Conventional branding doctrines harped on one dimensional branding,
----------------------
that is branding exercises that essentially focussed on building market
---------------------- share. Today, branding has evolved to become an integrated exercise
through a variety of media.
 A brand is no longer limited by functionality. Notes
 Branding provides benefits to the buyers and sellers. There are four
----------------------
branding decisions firms must make. There are six major types of brands
in the market place, besides manufacturer, private and generic brands. ----------------------
There are many criteria for choosing a brand name.
----------------------
 Identification and selection of a positioning strategy can be difficult and
complex. It becomes more manageable if it is supported by marketing ----------------------
research and phased out into a six-step process.
----------------------
 Professor David Jobber has identified seven main factors in building
successful brands. ----------------------

Brand personality includes associations with particular characters, ----------------------
symbols, endorsers, lifestyles and types of users.
----------------------
 Brand personality associations create a composite image of a brand – vis-
à-vis people. They make us think of a brand as if it were a person. Just as a ----------------------
person has certain characteristics that define his/her personality, so does a
brand. Just as we relate to other people, consumers have related to brands. ----------------------
 Brand equity refers to the value of a brand. Brand image refers to the set ----------------------
of beliefs that customers hold about a particular brand. Brand extension
----------------------
refers to the use of a successful brand name to launch a new or modified
product in a new market. ----------------------
----------------------
Keywords
----------------------
●● Advertised Brand : A brand that is owned by an organisation (usually a
manufacturer) that uses a marketing strategy usually involving substantial ----------------------
advertising. An advertised brand is a consumer product, though it need
not be, and is contrasted with a private brand, which is not normally ----------------------
advertised heavily. ----------------------
●● Attitude: 1. (consumer behavior definition) A person’s overall evaluation
of a concept; an affective response involving general feelings of liking ----------------------
or favorability. 2. (consumer behavior definition) A cognitive process ----------------------
involving positive or negative valences, feelings, or emotions. An
attitude toward an object always involves a stirred-up state—a positive or ----------------------
negative feeling or motivational component. It is an interrelated system
of cognition, feelings, and action tendencies. ----------------------
●● Attitude toward the ad: Consumers’ overall evaluations of an ----------------------

advertisement, not the brand being promoted.
----------------------
●● Audience: The number and/or characteristics of the persons or households
who are exposed to a particular type of advertising media or media vehicle. ----------------------
●● Belief: 1. (consumer behavior definition) A cognition or cognitive ----------------------
organisation about some aspect of the individual’s world. Unlike an
attitude, a belief is always emotionally or motivationally neutral. ----------------------

Notes Krench and Crutchfield define belief as a generic term that encompasses
knowledge, opinion, and faith an enduring organisation of perceptions
---------------------- and cognition about some aspect of the individual’s world. It is the pattern
of the meanings of a thing, the cognition about that thing. 2. (Consumer
---------------------- behavior definition) The perceived association between two concepts.
---------------------- A belief is synonymous with knowledge or meaning in that all refer to
consumers’ interpretations of important concepts.
----------------------
●● Hierarchy of effects model: 1. A concept related to the manner in which
---------------------- advertising supposedly works; it is based on the premise that advertising
moves individuals systematically through a series of psychological stages
---------------------- such as awareness, interest, desire, conviction, and action. 2. An early
model that depicted consumer purchasing as a series of stages including
----------------------
awareness, knowledge, liking, preference, conviction, and purchase.
----------------------
----------------------
---------------------- 1. There are many types of brands. List six types.

2. List seven criteria for choosing a name.
----------------------
3. Define brand image, brand loyalty, brand equity.
----------------------
4. What are the six approaches to positioning strategy?
---------------------- 5. Fill in the blanks:
---------------------- 6. What should be positioning strategy? It can be phased out into a six-step
process. What are they?
----------------------
7. Can you remember two brands that continued with the same advertising
---------------------- for a number of years because it worked? Mention them.
---------------------- 8. Circle the odd brand :
9. Describe the brand personality of any of the two brands given below:
----------------------
Lux, Mountain Dew, Axe, Amul
----------------------
10. Write about the brand image of:
---------------------- a) one corporate
---------------------- b) one product which has changed its image recently.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

1. True
----------------------
2. True
----------------------
3. False
1. Brand equity is financial value associated with the brand. ----------------------
----------------------
1. True
----------------------
2. True
3. False ----------------------
1. A value is the centrally held, enduring belief which guides action and ----------------------
judgments across specific situations and beyond immediate goals to more
ultimate and end-states of existence. ----------------------
2. Brand stretching refers to the use of an established brand name for ----------------------
products in unrelated
----------------------
1. Clown, Kenneth and Bach, Donald. Integrated Marketing Communications. ----------------------

2. Batra, Rajiv. Myers, John G; Aaker, David A. Advertising Management. ----------------------
PHI
----------------------
3. Kleepner, Otto. Advertising Procedure. Prentice Hall.
4. Duncon. Integrated Marketing Communications. Tata McGraw Hill ----------------------
5. Chunawalla, S.A. Sethia, K.C. Foundations of Advertising Theory & ----------------------

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Notes
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Advertising, Market Positioning, Segmentation
UNIT
5
Structure:
5.1 Introduction
5.2 Marketing and Advertising Plan
5.3 Understanding Campaigns
5.4 Ad Strategy
5.5 How to create an Ad Plan
5.6 Positioning Strategy
5.7 Consumer Behaviour and Market Segmentation
5.8 Determining Target Audience
Summary
Keywords
Suggested Reading
Advertising, Market Positioning, Segmentation 125

Notes
Objectives
----------------------
----------------------
• Identify the marketing and advertising plan.
----------------------
• State the importance and elements of planning for effective
---------------------- advertising management.
• Define positioning and brand strategy.
----------------------
• Describe the different positioning strategies.
----------------------
• Describe the different types of consumer segments.
---------------------- • Define various types of consumer behaviour.
----------------------
5.1 INTRODUCTION
----------------------
If everything spins off the consumer and it is the consumer that leads
---------------------- innovation in the marketplace, then it is safe to assume that the product is
---------------------- already in the consumer’s mind in the form of a need, either expressed or sub-
conscious. Repurchase becomes easier, if the advertiser listens to the consumer.
---------------------- Advertising plays a critical role in filling up the blanks between listening
---------------------- to the consumer and taking the money. The real tough part lies in the answer to
the question, “To which consumer and in what state of mind to reach him/her.”
---------------------- If the consumer wants to hear about a product that originated in his/her head
---------------------- and addresses his/her need, then it stands to reason that the advertising should
talk in his /her language. Take Charms for instance. The brand name originated
---------------------- from young student smokers in the university, who found too many syllables
in Charminar. They were already calling it Charms years before Vazir Sultan
---------------------- discovered the word and gave it back to the world in ‘denim’ pack.
---------------------- Thus the consumer enters advertising Planning.
----------------------
5.2 MARKETING AND ADVERTISING PLAN
----------------------
Importance of Planning
----------------------
For an advertiser, successful advertising is a result of clear marketing
---------------------- objectives. For any advertising campaign to be successful, it is important to
have a plan that fits in with the overall plan of the company. The advertising
---------------------- plan is a part of the marketing plan, which is a part of the company’s long-term
goals.
----------------------
An advertising strategy should support the marketing plan, which in turn
---------------------- supports the company’s business plan.
---------------------- In the real world there is no marketing or business plan. You will need to
figure things out for yourself.
----------------------

a) Setting Objectives Notes
The advertising objective is a part of long-term company objectives.
----------------------
These long-term objectives are measured in financial terms – return on
investment, value to shareholder or profits. Marketing objectives, along ----------------------
with other objectives, are a result of strategy. A strategy is the game plan
by which these objectives will be achieved. An advertising objective is ----------------------
the desired result at the end of an advertising campaign.
----------------------
b) The Marketing Plan
----------------------
Marketing Plan starts with the following:
i) Situation analysis ----------------------
Situation analysis involves collection of data to review past and ----------------------
present status and internal and external circumstances that have led
to the present status. It identifies new trends and market conditions. It ----------------------
studies market share, competitors, consumer behaviour, entry barriers, ----------------------
distribution, pricing etc. It results in a SWOT analysis.
SWOT (Strengths Weaknesses Opportunities and Threats) analysis ----------------------
 Strengths: An internal capability that can be exploited. ----------------------

 Weaknesses: an internal element that could undermine a significant ----------------------
potential.
----------------------
 Opportunities: An external situation that has significant potential and
could be exploited. ----------------------
 Threats: An external situation that could prove to be a problem. ----------------------
Properly conducted, a SWOT assessment will give a 360 degree, full-
colour picture of the market, the product or service and the company. ----------------------
A SWOT analysis will help get a clear picture of what is going on, and ----------------------
quickly at that.
----------------------
The “What to do” part of the ad strategy will then follow logically.
----------------------
c) Marketing Objectives
Marketing objectives are referred to in terms of sales targets. If sales target ----------------------
is to achieve a sale of Rs. 2 crores worth of fashion garments, the marketing ----------------------
objective should be to achieve these sales by expanding the number of
distributors and franchises within a time bound period. ----------------------
Marketing objectives should be attainable and relevant to the overall ----------------------
company objectives, time bound and measurable.
d) Marketing Strategy ----------------------
A marketing strategy identifies the market segment, target audience and ----------------------
desired positioning, in order to achieve the marketing objective.
----------------------
----------------------

Notes e) Marketing Mix
Marketing mix consists of product, price, distribution and promotion. The
----------------------
promotional mix consists of a combination of advertising, public relations
---------------------- sales promotion, events and sponsorships, tradeshows and exhibitions.
---------------------- f) Action Plan

Action plan involves product, pricing, distribution and sales promotion
----------------------
activities that are time bound. The marketing budget is determined on the
---------------------- basis of the action plan, with allocations made for each activity. These, in
turn, indicate how profits could be generated.
----------------------
g) Advertising Plan
----------------------
Advertising plan is a part of the marketing plan and is closely linked to the
---------------------- marketing objective. The advertising plan will focus on three critical areas
– target selection, message strategy and media strategy.
----------------------
h) Advertising Objectives
----------------------
An advertising objective can be defined as a communication task, given to
---------------------- a specific audience, within a time frame. Advertising objectives cannot be
measured in terms of units sold as a result of advertising. It is very difficult
----------------------
to attribute a rise of sales due to advertising. Therefore, advertisers set
---------------------- communication objectives.
---------------------- Advertising is one of the factors that contribute to sales along with other
marketing activities such as distribution, pricing, sales promotion.
----------------------
To set communication objectives, it is necessary to answer the following
---------------------- questions:
----------------------  Who is the target audience?

 What is the desired consumer behaviour that advertising is trying to
----------------------
accomplish?
----------------------  What is the role of advertising in achieving the desired behaviour?
---------------------- Desired behaviour could be to create awareness, communicate information
about the brand features and benefits, develop or change image, associate
----------------------
the brand with feelings and emotions or develop a user personality with the
---------------------- brand.
---------------------- To measure the effectiveness of advertising, certain communication process

models were developed. These models are based on the assumption that
---------------------- the consumers learn about the brand, form feelings and associations and,
finally, take action.
----------------------
i) The Heirarchy of Effects Model
----------------------
The consumer becomes aware or familiar with the brand, begins to
---------------------- comprehend it by searching for more information about the features

and benefits. He then begins to accept it as a potential solution, takes a Notes
preference for it over competitor brands, makes a purchase, uses it and is
satisfied or dissatisfied. Advertisements can make a consumer respond at ----------------------
any one of the stages.
----------------------
j) DAGMAR
----------------------
Russell H. Colley introduced the DAGMAR model in 1961. DAGAMR
stands for Defining Advertising Goals for Measured Advertising Results. ----------------------
This model is based on the premise that there is a series of mental steps
through which a brand must climb, to gain acceptance. The stages are ----------------------
awareness, comprehension, conviction and action.
----------------------
The major activities of advertising management are planning and decision
making. In most instances, the advertising or brand manager will be ----------------------
involved in the development, implementation, and overall management of
----------------------
an advertising plan. The development of an advertising plan essentially
requires the generation and specification of alternatives. The alternatives ----------------------
can be various levels of expenditure, different kinds of objectives or
strategy possibilities, and numerous kinds of options associated with copy ----------------------
creation and media choices.
----------------------
Thus, the essence of planning is to find out what the feasible alternatives
are and reduce them to a set on which decisions can be made. Decision ----------------------
making involves choosing from among the alternatives. ----------------------
A complete advertising plan reflects the results of the planning and decision-
making process and the decisions that have been made in a particular ----------------------
product-market situation. ----------------------
If advertising management begins with advertising planning, the advertising
plan itself is based on the marketing program of the organisation/product/ ----------------------
brand. ----------------------
What does the organisation/product/brand wish to do and in which market?
----------------------
Does it plan to introduce a new product in Tamil Nadu? Where in Tamil
Nadu? In the city of Chennai or a number of similar/smaller cities? What ----------------------
will be the introductory price? What will be the distribution pattern? Will
----------------------
the sales force make a special effort to sell door to door? Will they only
place the product at retail outlets? Where? What kind of consumer is being ----------------------
targeted? What is the product that is being sold? What need does it satisfy?
What are the benefits of purchasing this product? ----------------------
It is evident that these questions pertain to the 4 Ps, namely product, price, ----------------------
place and promotion. A solid marketing program built around current
realities, as revealed through a situation analysis, would provide the ----------------------
answers, which will serve to be pre-requisite for advertising planning. ----------------------
----------------------
----------------------

Notes 5.3 UNDERSTANDING CAMPAIGNS
---------------------- Campaign creation happens in three phases:
----------------------  Strategy Development Phase

 Briefing Phase
----------------------
 Creative Phase
----------------------
During the Strategy Development Phase, the objectives and contents
---------------------- of communication are decided. In this phase, one also analyses research data
and fixes the ‘positioning’ of the brand. There will definitely be many brain-
---------------------- storming sessions, before arriving at a decision.
---------------------- It was Al Ries & Jack Trout, who started focussing on strategy in late 60s
when they started writing on “positioning,” a concept that had been introduced
---------------------- by them.
---------------------- Strategy leads to the Briefing Phase. What happens during this phase?
The client briefs the agency about strategy. Then the account servicing team
---------------------- gives a briefing to the creative team. One must remember that a proper briefing
---------------------- generates good creativity. The copywriter and visualiser work together; there
are sparks of creativity, and the ‘BIG IDEA’ is developed. The creative brief of
---------------------- strategy often contains key “consumer insights.”
---------------------- The brief actually acquaints one with the consumer and how his mind
works and gives a stimulus to the creative team. The success and failure of an
---------------------- ad is largely dictated by the brief.
---------------------- Briefs should have clarity and single-minded objective. They should aim
at a target, for a desired response. All briefs must suggest a benefit or a product
---------------------- plan.
---------------------- Then follows the Creative Phase when there is a leap from single
undirectional unidentified idea of strategist to ‘ad idea,’ which will add value
---------------------- to the brand. Creative people are believed to be right brained – lateral thinkers,
often irrational.
----------------------
The most creative outcome is derived when there is a complete
---------------------- understanding of the product and its benefits.
---------------------- Thorough understanding of the target audience gives an extra edge. It
is the sensitive understanding of the audience that takes one’s creativity from
---------------------- ‘logic’ to magic.
----------------------
----------------------
----------------------
1. Successful advertising is a result of clear marketing objectives.
----------------------
2. Business plan of a company should support the advertising plan.
---------------------- 3. Advertising plan is independent of marketing plan of any company.

Notes
Activity 1
----------------------
1. Check TV advertising and pick a campaign of Mobile phones and
----------------------
chocolates campaigns that you have noticed and make a list of their
marketing objectives. ----------------------
2. Study the newspaper print version of longest running campaign of ----------------------
Amul in India. What is the ‘big idea’ of the campaign? List the creative
aspects of the campaign. ----------------------
----------------------
5.4 AD STRATEGY
----------------------
There are two major parts to an advertising strategy:
----------------------
1) Assessment
----------------------
What is going on in the market? What is the history, the current situation?
What are the major trends in the market? What is the future of the product, ----------------------
considering competitors and consumer attitudes?
----------------------
2) Action
----------------------
What should a client do about the most significant opportunities or problems
presented by a situation? What should you do with the brand with direct ----------------------
marketing, the Web site and the way the company is positioned?
----------------------
The SWOT analysis, that we spoke about earlier in this chapter, will
indicate areas for an action plan for the product. ----------------------
If the SWOT analysis reveals that there is serious and growing competition ----------------------
from price slashers, the strategy could be as follows:
a) Position, or re-position the product: “Because you’re worth it - worth ----------------------
so much more then the extra dollar.” ----------------------
b) Invest in and create a stronger brand personality, one based on an
upscale, character that people will aspire to associate with. ----------------------
c) Use traditional DM and the Internet/website to target and sell younger ----------------------
buyers and new buyers, before they have established a product/service/
----------------------
company preference.
This is how an ad strategy addresses a business issue competitive price ----------------------
pressure, in the above example.
----------------------
It can also be seen that the ad strategy deals with the big issues: branding,
positioning, direct marketing and media. It does so with simple action ----------------------
statements describing, what you intend to accomplish.
----------------------
Eventually the strategy will influence all the details, down to the copy and
the design of the ads. But start with an executive summary of the big issues, ----------------------
the big picture. That is the essence of strategic leadership and vision. ----------------------

Notes 5.5 HOW TO CREATE AN AD PLAN
---------------------- An advertising plan is an outline, a “to do” list, a guide to action.
---------------------- The three main issues here are:

a) What do we want to accomplish? Our objectives or goals.
----------------------
b) How will we reach those goals? What will we do, and what will it cost to
---------------------- achieve our objectives?
---------------------- c) How do we measure results? How do we determine whether we have
accomplished our objectives?
----------------------
Beyond the big three issues common to most advertising plans, the exact nature
---------------------- and details can vary significantly, depending on the purpose of the plan.
Some examples:
----------------------
 Consider the annual ad plan prepared internally for a Fortune 500 company,
---------------------- to characterise and project the brand. In this case, there is likely to be a
power point or slide show of the big picture regarding budgets, creative
----------------------
and direct response themes, special events, and evaluation tools.
----------------------  Take the case of a new business pitch from an ad agency to a regional
bank with four branches. In this case, the advertising plan is a persuasive
----------------------
document. It should be visually informative and entertaining.
----------------------  Consider the example of an internal working document for the first three
months of a direct response focussed launch campaign for a medium
----------------------
sized software company. In this case, the Ad Plan could well be a work
---------------------- in progress, with an initial outline placed on the network, and with many
people from marketing, sales and accounting making comments over
---------------------- several weeks. In the end, the marketing director takes all the comments
and publishes a finished action plan.
----------------------
SITUATION Consumer/Market Analysis
---------------------- ANALYSIS CompetitiveAnalysis
----------------------
----------------------
MARKETING Role of Advertising, Sales Force,
---------------------- PROGRAM Price, Promotion, Public Relations
----------------------
The
---------------------- Objectives/Segmentation/Positioning
Communications/ ADVERTISING
Message Strategy and Tactics
---------------------- Persuasion PLAN
Media Strategy and Tactics
Process
----------------------
---------------------- Facilitating Agencies

IMPLEMENTATION
---------------------- Social and Legal Constraints

The above diagram outlines the elements that contribute to the framework for Notes
advertising planning and decision-making.
----------------------
Here are some elements be considered in the advertising plan. Select from this
list to create an outline that works for you. ----------------------
1. Background/overview ----------------------
What is the history of advertising for this company, leading up to this plan? ----------------------
What are the chief challenges for this plan or advertising campaign? What
are the big opportunities in the market? ----------------------
2. Duration of the plan/review dates ----------------------
Is this a launch campaign that will last for three months? Or is this an ----------------------
annual plan, with a “review and recommendation” every three months?
----------------------
3. Competitive analysis
What is the competition up to? Is there a trend towards price cutting? How ----------------------
do competitor products or services compare? ----------------------
4. Advertising goal ----------------------
An advertising goal can be simple, involving one clearly defined objective:
----------------------
 Convince MarCom managers that it is AdWiz CD which will help
them create more effective advertising, faster, and that now is the best ----------------------
time to buy. ----------------------
 Or you may wish to broaden your list to include several objectives,
----------------------
and include marketing objectives:
 Achieve 50% brand recognition with target audience as defined ----------------------
by the ability to 1) recognise the logo 2) describe at least one of ----------------------
our products 3) associate “quality products” when prompted for
brand characteristics. ----------------------
 Achieve a 2% response rate and sales of Rs 500.00 per 100 direct ----------------------
mail packages within 30 days of drop.
----------------------
 Achieve a lifetime value of Rs 1,500.00 on each customer within
five years. ----------------------
5. Recommended advertising activities ----------------------

This could be the longest, most detailed aspect of the plan. It might be ----------------------
divided by month. It could also be divided by target audience. A few
examples: ----------------------
 January: ----------------------
 Launch TVC in top 10 urban markets, to introduce our new brand
----------------------
character.
 Launch print campaigns in select dailies/magazines ----------------------

Notes  Email to current customers with upgrade offer, save 50%.
 Test direct mail with “Order now or get more info” offer to a select
----------------------
cold list of small business owners in West, South and North India.
----------------------  Send video CD with a promo letter promising 25% off, to top 100
prospects in the national contact database, from the regions mentioned
----------------------
above.
---------------------- 6. Optional or conditional advertising activities
---------------------- There can be several reasons to have optional advertising activities.
---------------------- 1) One does not really know the client’s budget. So this gives them extra
things to buy.
---------------------- 2) The recommended advertising activities work surprisingly well and
---------------------- one wants to take advantage of the opportunity.
For example: Your test mailer to select markets produces double the
----------------------
results expected and becomes the best activity in terms of the return
---------------------- on investment. So your optional activities include:
 Test direct mail with “Order now or get more info” offer to a
----------------------
select cold list of small business owners in every major metro
---------------------- area of over 500,000 population, except the cities taken before.
---------------------- 3) Your recommended advertising activities fail to produce the results

expected. Maybe, the save 25% offer to national prospects did not
---------------------- work, so you need an option, a backup plan, to go with a stronger
offer:
----------------------
 Send a video CD with a promo letter offering 50% off to top 100
---------------------- prospects in the national contact database from other cities not
specified in the test stage.
----------------------
7. Non-advertising or off-Screen activities
----------------------
This category can include anything that will help achieve goals:
----------------------  PR
----------------------  Special events
----------------------  Seminars
 Trade shows
----------------------
 Customer relations
----------------------
(Activities such as PR may or may not be within the scope of your
---------------------- department and therefore your plan. If they are, then your plan becomes
a “communications plan” not an ad plan. Advertising, generally, is “paid
---------------------- communications.”)
---------------------- 8. Description of target markets
----------------------  Business type, size and location.

 Career stage. Think about the person who will receive your message. Notes
Is this an owner who sees the big business picture and would be more
likely to consider a new software program to enhance overall company ----------------------
efficiency or is it someone in purchasing or human resources, who is
focussed on his department? ----------------------
 Consumer location. Define, as best you can, where your targets live, ----------------------
work and play.
----------------------
Get more details pertaining to the following:
----------------------
 Age.
 Gender. ----------------------
 Marital status. ----------------------

 Income. ----------------------
 Life stage. Are your prospects retired? Or is their mix of 60% retirees
----------------------
55 to 65, and 40% young urban professionals 30 to 45 (yuppies).
 Psychographics: How will the prospect approach the purchase ----------------------
decision? Is it high or low involvement? Rational or emotional? Is he
----------------------
looking for security? Or a thrill?
9. Persuasive strategy ----------------------
What is the main thing that is going to be said, to get the target audience ----------------------
to think about what we want, to feel what we want, or do what we want?
Some examples are listed below: ----------------------
 Save on brokerage fees and get access to independent research. ----------------------

 This could be the last battery your car will ever need. ----------------------
 India’s favorite car battery is a lot less expensive than you think – and
----------------------
it adds value to your car in so many ways.
10. Creative strategy ----------------------
You do not want to dictate creative strategy in the advertising plan. In fact, ----------------------
you may not want creative strategy included at all. But if you do, here are
some things that should be covered: ----------------------
 How is the message going to be presented? Is it through a celebrity or ----------------------

a brand character?
----------------------
 Will the copy be friendly or dramatic?
----------------------
 Should there be music to communicate emotion? If so, what songs?
11. Research ----------------------
Research includes Advertising research, Consumer research and Attitude ----------------------
research. AdWiz is reluctant to endorse pre-launch research, since so many
great campaigns did not, initially, do well in such tests. ----------------------
----------------------

Notes 12. Customer feedback
Check customer feedback. Call ten or 50 customers, Ask them,
----------------------
 Why did you buy?
----------------------
 What do you like the most about the service?
----------------------  What would you like to see improved in our product?
---------------------- Now you know exactly what to consider for copy points. And if the client
is smart, he knows exactly how to improve the products and services.
----------------------
Creating a communication loop between customer and the company is
---------------------- always a good thing to do.
---------------------- 13. Media plan
Here are some choices:
----------------------
 Direct Mail.
----------------------
 Collateral: Brochures, single sheet flyers, in-store take away displays
---------------------- and brochures, posters, statement stuffers.
----------------------  Broadcast: Radio, TV spots or infomercials.

 Video on tape or CD / DVD.
----------------------
 Print: Magazines, newspaper, specialty publications, inserts.
----------------------
 Outdoor: Billboards, transit, off-screen.
----------------------  Internet Marketing: Website optimisation, pay per click search engine
---------------------- listings, affiliate or associate relationships, paid banner placements,
email.
----------------------  Digital communications: Digital video on Web, multimedia CD.
---------------------- 14. Media strategy
---------------------- The simple answer to media strategy is to identify your target audience and
find the best media and the best time to reach them.
----------------------
For many advertisers, the options will be obvious. If not, consider one of
---------------------- the large media buying services. MindShare, OMD, Carat, Zenith, Tempus
or Initiative.
----------------------
Keep in mind that you will get the best return on your advertising by getting
---------------------- your message in front of the people during the decision making and buying
cycle.
----------------------
It also means that it is going to cost more to buy customers during off
---------------------- seasons or economic downturns.
---------------------- Divide your budget by 12 months, if people buy all the year long. Spend
more to launch new products or compete for a larger share of a season pie.
----------------------
----------------------

15. Budget Notes
In the case of direct marketing, we could confidently say, “It’s not what it
----------------------
costs, but what it returns that matters.”
Normally, the client allocates a budget, based on what it would cost to put ----------------------
a persuasive presentation in the hands of a very hard to reach target.
----------------------
16. Evaluation
----------------------
How will you track sales? How will you link sales to advertising? Who, in
your company or the client’s, company will do that? ----------------------
Direct response and Internet advertising is easy to track. ----------------------
Branding focussed campaigns may not be easy to link to sales.
----------------------
5.6 POSITIONING STRATEGY ----------------------
A product’s position is how potential buyers see the product. Positioning ----------------------
is expressed relative to the position of competitors. The term was coined in
1969 by Al Ries and Jack Trout, “Positioning” is a game people play in today’s ----------------------
me-too market place,” they said in the publication, Industrial Marketing. It was ----------------------
then expanded into their ground-breaking first book, “Positioning: The Battle
for Your Mind” (1981). ----------------------
Positioning is something (perception) that happens in the minds of the ----------------------
target market. It is the aggregate perception that the market has of a particular
company, product or service in relation to their perceptions of the competitors ----------------------
in the same category. It will happen whether or not a company’s management is
proactive, reactive or passive about the on-going process of evolving a position. ----------------------
But a company can positively influence the perceptions through enlightened ----------------------
strategic actions.
----------------------
In marketing, positioning has come to mean the process by which
marketers try to create an image or identity in the minds of their target market ----------------------
for its product, brand, or organisation. It is the ‘relative competitive comparison’
their product occupies in a given market as perceived by the target market. ----------------------
Re-positioning involves changing the identity of a product, relative to the ----------------------
identity of competing products, in the collective minds of the target market.
----------------------
De-positioning involves attempting to change the identity of competing
products, relative to the identity of your own product, in the collective minds of ----------------------
the target market.
----------------------
1. Brand Positioning Strategies
The key idea in positioning strategy is that a consumer must have a clear ----------------------
idea of what the brand stands for in the product category. Positioning ----------------------
is achieved through the brand’s marketing communications, although
distribution, pricing, packaging and actual product features also play major ----------------------
rules.
----------------------

Notes Positioning is not what you do to the products, but what you do to the
consumers’ mind, through various communications. A brand must be
---------------------- “positioned” in a way that is most effective in attracting the desired target
segment.
----------------------
A brand’s position is the set of associations the consumer has with the
---------------------- brand, its physical attributes, lifestyle, use occasion or user image or even
stores that carry it. A brand’s position develops over the years.
----------------------
2. Approaches to Positioning Strategy
----------------------
Use product characteristics or customer benefits. For example, Colgate
---------------------- “ring of confidence”, cavity fighter or gum strengthener, “Neem” soap
Margo, “Glycerine” soap Pears etc. this is the most-used positioning
---------------------- strategy. Honda and Toyota emphasised economy and reliability.
---------------------- a) The price-quality approach. Manufacturers charge more, but
communicate the fact they are of higher quality. While others are
---------------------- cheaper. For example, – Surf vs. Nirma.
---------------------- b) The use or applications approach. Like Moove or Nycil.
---------------------- c) The product user approach. Lux (the soap for beauty queens), Boost
(Boost is the secret of my energy), Nike, Fiat Palio etc.
----------------------
d) The product class approach. Maxim, freeze-dried coffee - the first
---------------------- one in the market, needed to position itself with respect to regular and
instant coffee. Some margarines position themselves against butter.
----------------------
e) The cultural symbol approach. The Wells Fargo Bank uses a stage
---------------------- coach pulled by a team of horses and very nostalgic background
music to position itself as the bank that opened up in the west. Another
---------------------- example is the MRF muscle man.
---------------------- f) The competitor approach. (Pepsi/Coke, Santro vs. the others). This
approach is useful if the competitor’s image (which may be a firm,
---------------------- well-crystallised one developed over many years) can be used as a
---------------------- bridge to help communicate another image, with reference to it.
Sometimes it is not important how good customers think you are; it is
---------------------- just as important that they believe you are better than (or as good as)
a given competitor. The most famous positioning strategy of this type
---------------------- was Avis “We’re number 2, we try harder” campaign. The message
---------------------- here was: Hertz was so big, that they did not need to work hard. The
strategy here was to ‘position’ Avis with Hertz as a major car rental
---------------------- company (and away from National, which was 3rd at that time). And
it is obvious how successful the Avis strategy proved to be.
----------------------
3. Determining Positioning Strategy
---------------------- What should positioning strategy be?
---------------------- Identification and selection of a positioning strategy can be difficult and
complex. It becomes more manageable if it is supported by marketing
----------------------
research and phased out into a six-step process.

a) Six-Step Process Notes
What would the six steps be?
----------------------
i) Identify the competitors.
----------------------
ii) Determine how the competitors are perceived and evaluated.
iii) Determine the competitor’s positions. ----------------------
iv) Analyse the customer. ----------------------

v) Select the position. ----------------------
vi) Monitor the position.
----------------------
i) Identify the Competitors
----------------------
This step is not easy. Take for instance, Pepsi, the cola brand. How would
it define its competition? ----------------------
Pepsi might define its competition as – ----------------------
 Other Cola drinks
----------------------
 Non-diet soft drinks
----------------------
 All soft drinks
 Non-alcoholic beverages ----------------------
 All beverages except water ----------------------
There may be primary and secondary group of competitors. ----------------------
Primary group of competitors: other colas. Secondary group: other non-
diet soft drinks and diet colas. ----------------------
Determine how the competitors are perceived and evaluated. To determine ----------------------
how competitor products are perceived, it is necessary to choose an
----------------------
appropriate set of product “attributes” for the comparison.
“Attributes” include not only product characteristics and customer benefits ----------------------
but also product associations such as product uses or product users. E.g.
----------------------
Beer – a relevant attribute could be the association of a brand with outdoor
picnics or pubs (Haywards) or athletes. ----------------------
The task is to identify relevant attributes, remove redundancies from the ----------------------
list and select those that are most useful and relevant in describing brand
images. ----------------------
ii) Determining Competitors’ Position ----------------------
Determine how the competitors and one’s own brand are positioned. The
primary focus should be on how they are positioned with respect to the ----------------------
relevant attributes. ----------------------
What is the customer’s image of various competitors?
----------------------
Which competitors are perceived as similar and which ones as different?
----------------------
iii) Analysing the customers

Notes The ultimate positioning decision specifies where, in the perception map,
the brand should be positioned. Making this decision requires knowing
---------------------- which areas in the map will be attractive to customers.
---------------------- iv) Making the Positioning Decision: 5 steps
 An economic analysis should guide the decision. The success
----------------------
of any objective depends on two factors: the potential market
---------------------- size and the penetration probability. Unless both these factors are
favourable, success will be unlikely.
----------------------
 Positioning usually implies a segmentation commitment.
---------------------- Positioning usually means that an overt decision is made to
ignore parts of the market and to concentrate only on a certain
---------------------- segment. Such an approach requires commitment and discipline,
as it is not easy to turn your back on potential buyers. Yet the
----------------------
effects of generating a distinct meaningful position are to focus
---------------------- on the target segments and not be constrained by the reaction of
other segments.
----------------------
 If an ad is working stick with it. An advertiser will often be tired
---------------------- of a positioning strategy and the advertising used to implement
it. He may consider making a change. The personality or image
---------------------- of a brand, like that of a person, evolves over many years and the
---------------------- value of consistency through time cannot be overestimated.
 Do not try to be something you are not. It is tempting but naïve
---------------------- (and usually fatal) to decide on a positioning strategy, which
---------------------- exploits a market need or opportunity that assumes that your
product is something it is not. Before positioning a product, it
---------------------- is crucial to determine the position of various competitors. E.g.
Dettol soap. 100% wash.
----------------------
 Consider symbols. A symbol or set of symbols can have strong
---------------------- associations that should be considered while making positioning
decisions. E.g. Malboro Man, Devil of ONIDA, Doughboy
---------------------- for Pillsbury, tiger for Tiger Tea, Robin bird for Robin Blue,
---------------------- Muscleman for MRF or Rising Sun for Aditya Birla. In fact,
the ONIDA devil was discarded and then brought back since
---------------------- research revealed that the association was still fresh and strong in
the minds of consumers!
----------------------
v) How should you formulate your positioning plan?
----------------------
There are two ways to formulate your positioning plan
---------------------- a) Market Positioning
---------------------- b) Psychological Positioning
---------------------- a) Market Positioning
----------------------

Explore – Notes

 The market
----------------------

 Segmentation and Targeting
----------------------

 Competitive strategy
b) Psychological Positioning ----------------------
Consumer behaviour is driven more by feelings than by rationale (even the ----------------------
most aptly positioned brand might fall if it does not strike the right chord!)
----------------------
 Coffee is about INTIMACY, ROMANCE, TOGETHERNESS
----------------------
 Titan is a GIFT of appreciation.
 Lakme and Vareli touch the streak of narcissism in a woman. ----------------------
Brand positioning is not just about occupying a slot in the consumers’ ----------------------
mind…
----------------------
It is about RULING THE HEART!
vi) Advertising and Positioning ----------------------
Research has shown that there is a limit to how much a mind set can handle. ----------------------
The average person can rarely name more than 7 brands at a time. This is
----------------------
where positioning comes in.
Advertising has to establish the brand in a commanding position in the ----------------------
minds of consumers. The image and appeals must be related to the way ----------------------
consumers possibly think about a brand and thus position it in their minds
----------------------
4. What is a positioning statement?
To communicate a company/brand positioning, a marketing plan should ----------------------
include a positioning statement. ----------------------
How do you work out positioning statement?
----------------------
To (target group + need) _______________ our (Brand)
----------------------
is (concept) __________________that (point of difference)
----------------------
For example take the Palm Pilot and how would you work out the
positioning statement? To busy professionals who need to stay organised, ----------------------
Palm Pilot is an electronic organiser that allows you to back up files on
----------------------
your PC more easily and reliably than competitive products
Take the case of Mountain Dew: ----------------------
To young, active soft drink consumers who have little time for sleep, ----------------------
Mountain Dew is a soft drink that gives more energy than any other brand
----------------------
because it has the highest level of caffeine.
With Mountain Dew you can stay alert and keep going even when you ----------------------
haven’t been able to get a good night’s nap. ----------------------

Notes Therefore, ‘position’ is that descriptive sentence or slogan that the company
is known for, the one specific idea that first comes to mind about the
---------------------- product. The one characteristic that sets the service apart from competitors.
---------------------- For Volvo that one thing is “Safety.”
---------------------- McDonalds is “A fun place for kids.”
---------------------- In Jakarta, Indonesia, Bluebird is “The safest way to travel by taxi.”

And everyone knows, Avis tries harder.
----------------------

---------------------- 1. There are two major parts to an advertising strategy - assessment and
_______.
----------------------
2. A product’s _______ is how potential buyers see the product.
---------------------- 3. __________ involves changing the identity of a product, relative to
the identity of competing products.
----------------------
4. ___________ involves attempting to change the identity of competing
---------------------- products, relative to the identity of your own product.
----------------------
---------------------- Activity 2
---------------------- Check the newspapers and find out an advertisement for children footwear
---------------------- products. List down the changes that you would make in the campaign to
suite it to your local market.
----------------------
---------------------- 5.7 CONSUMER BEHAVIOUR AND MARKET

SEGMENTATION
----------------------
Consumers behave differently – sometimes logically, other times irrationally.
---------------------- A study of consumer behaviour helps to predict the behaviour pattern (of the
consumer).
----------------------
Consumer decisions are taken on the basis of: maximum satisfaction or
---------------------- maximum utility
---------------------- Defining consumer behaviour
---------------------- In the book by Ostrow and Smith, the authors refer to the actions of consumers
in the market place and the underlying motives for those actions, by defining
---------------------- consumer behaviour.
---------------------- The study of Consumer Behaviour would be on how consumers spend time,
money and effort on consumption related items. It includes – What they buy,
----------------------

why they buy, when they buy, where they buy, how often they buy and how Notes
often they use it.
----------------------
Consumers select from options on the basis of: purchasing power, price of
product and services offered with product. ----------------------
The consumer decides on the basis of:
----------------------
 Maximum utility
----------------------
 Satisfaction anticipated
 Personal preference ----------------------
1. Influencing Factors ----------------------

a) Lifestyles ----------------------
In Philip Kotler’s Consumer Behaviour Model, the market stimulants are
----------------------
the 4 Ps i.e. product, price, placement and promotion. The influencing
factors are: ----------------------
 Social factors ----------------------
 Reference group
----------------------
 Family
----------------------
 Roles and structures
 Age and stage in life cycle ----------------------
 Occupation and economic circumstances ----------------------
Lifestyle and psychographics are used to understand the mindset of people ----------------------
for measuring and categorising life styles, such as:
 Good Resources people: those with financial backing ----------------------
 Actualisers: those who have achieved their desires, who have ----------------------
become somebody
----------------------
 Fulfilled: the satisfied people
----------------------
 Achievers: people who targeted their desires, who have become
somebody ----------------------
 Experiencers: those who have struggled and become successful ----------------------
 Low resource people: people with low finance
----------------------
 Believers: optimists who feel their time will come soon
----------------------
 Strivers: those who are hopeful about their future
 Makers: who are in the thick of making success ----------------------
 Strugglers: those who are not so optimistic about their future ----------------------
----------------------
----------------------

Notes b) Needs
People have two kinds of needs: Physiological needs – includes food,
----------------------
clothing, shelter and Psychological needs – love, esteem, self-actualisation.
---------------------- Here we refer to Maslow’s Heirarchy of Needs which categorises as
follows:
----------------------
 A=Self actualisation
----------------------  B=Esteem
----------------------  C=Sociological needs
----------------------  D=Safety
 E=Physiological needs
----------------------
c) Perception, attitudes
----------------------
‘Perception’ implies selecting, organising and interpreting information to
---------------------- obtain a meaningful understanding for selecting and deciding in favour of
a product.
----------------------
‘Attitudes’ and ‘beliefs’ are a person’s evaluation of emotional feelings and
---------------------- tendencies for action towards some object or idea.
---------------------- d) Culture: Culture is values, perception, beliefs and customs that are
formed right from birth and are passed on from generation to generation.
---------------------- India has a number of cultural groups that share the same values and
beliefs, from eating habits to religious customs and traditions, which
---------------------- effect purchase behaviour. For example, South Indians prefer filter
---------------------- coffee, while North Indians consume less of coffee and more of tea.
e) Social status: Every society has a social classification. These classes
---------------------- are groups that have similar values, interests and lifestyles. They are
---------------------- status-conscious, which determines their buying decision.
2. Buying Roles
----------------------
Buying roles can be described as:
----------------------
a) Initiator – a person who puts forward the idea of obtaining a certain
---------------------- product.
---------------------- b) Influencer – one who gives his opinion about the suitability of the
product.
---------------------- c) Decider – one who has the authority to decide whether the product
---------------------- should be purchased or not.
d) Buyer – a person who places the order.
----------------------
e) User – a person who puts the product to use.
----------------------
Thus Complete Buyer Behaviour can be summed up as:
----------------------  Believes in the product
----------------------  Develops attitudes

 Makes thoughtful choice. Notes
a) Habitual Buying Behaviour
----------------------
One can find a pattern in consumer buying behaviour. It is a habitual
buying behaviour that is revealed while scrutinising the behaviour in high ----------------------
involvement and low-involvement brands. See the table below to observe
----------------------
the difference in behaviour where major brands are concerned and where
there is less difference in brands. Habitual buying behaviour comes where ----------------------
the brand is ‘low-involvement’ and there is less differentiation between
brands. ----------------------
 Major difference in brands High involvement Low involvement ----------------------
Complex buying Variety seeking
behaviour buying behaviour ----------------------
 Less difference in brands Dissonance buying Habitual buying ----------------------
behaviour behaviour
The buying behaviour could be simple such as buying pens, toothpastes ----------------------
or detergents. These purchases are low cost, low involvement, where the ----------------------
buyer does not give too much thought or search to the purchase.
The buying behaviour becomes a little more complex for some products. ----------------------
Here the buyer is aware about the product category but does not know ----------------------
too much about the choices or features. Here the buying behaviour is the
problem to problem solving. ----------------------
The buying behaviour becomes very complex for high involvement ----------------------
expensive products or services such as a house or a car. The buyer will
take time; consult and will not immediately arrive at a purchase decision. ----------------------
The advertiser has to take into consideration all these factors when deciding ----------------------
upon the advertising message.
----------------------
3. Stages in Buying Decision Process
There are many stages that can be identified in the buying decision process. ----------------------
a) ‘Problem recognition,’ which is defined by the obvious or inherent ----------------------
need of the consumer.
----------------------
b) Information search,’ which happens while the consumer is searching
for information on the product he or she wants to buy. ----------------------
c) Then the consumer goes through an ‘evaluation of alternatives.’ ----------------------
d) The actual ‘purchase decision’ stage.
----------------------
e) Then ‘post purchase behaviour’ stage, which is also very important.
----------------------
4. Sources of Information
For sources of information, the consumer can go to various sources. It can be: ----------------------
a) Personal: family, friends, neighbours ----------------------

b) Commercial: ads, sales persons, dealers, packages, displays ----------------------

Notes c) Public sources: mass media, consumer rating organisations
d) Experiment: handling the product, experimentations, using samples
----------------------
of products like shampoo sachets
---------------------- e) Evaluation of alternatives.
---------------------- 5. Target Marketing
---------------------- Advertisers find it very difficult and uneconomical to communicate to the

masses that may or may not buy the product. A company manufacturing
---------------------- premium cars will advertise to consumers or prospects from a high-income
group. A sari manufacturer will advertise to Indian women who prefer saris
---------------------- for daily wear. The process of identifying and advertising to a group of
---------------------- prime prospect is called target marketing or niche marketing.
Target marketing involves segmentation and positioning. Breaking a
---------------------- market into distinct groups of customers that have similar lifestyles and
---------------------- needs is called segmentation. They are divided on the basis of geographic,
demographic and behaviour variables.
---------------------- a) Geographic – Dividing the market into different geographic units
---------------------- (MR coffee – South).
b) Demographic – Market division by sex, age, income, family size,
----------------------
occupation, education etc. (Johnson & Johnson shampoo for kids).
---------------------- c) Psychographic – Market division based on social class, lifestyle,
personality (Diet Coke, Nike shoes).
----------------------
d) Behaviour – Market division based on knowledge, attitude, uses or
---------------------- response (Tropicana orange juice, Archies cards).
---------------------- Marketers use the segmentation strategy to optimise use of resources. By
identifying the market segment, the advertiser can derive more returns on
---------------------- his investment. The target audience is more receptive and is most likely to
---------------------- respond to the advertising message.
Psychographic segmentation
----------------------
Identifying a market segment according to psychological and behavioural
---------------------- characteristics is called psychographic segmentation. Factors used for
analysing are motivation, desired benefits, attitude, lifestyle and behaviour.
----------------------
VALS - Values and Lifestyle Model: Established in 1978, the VALS model
---------------------- is one of the first major consumer segmentation systems based on lifestyle
characteristics. Consumer products and services companies throughout the
----------------------
United States have used VALS to improve product development, product
---------------------- positioning, advertising effectiveness and corporate image.
---------------------- 5.8 DETERMINING TARGET AUDIENCE

----------------------
Imagine that I want to market a brand of jeans. The price of the jeans
---------------------- is Rs. 1500.00 and I would like college-going people to use it. I encounter a
confident person. Is he/she my target audience? Yes.
Companies do not merely manufacture and sell; rather, they manufacture Notes
what the people need. For every product, there are specific people, which is to
be kept in mind while marketing the product. ----------------------
In order to tailor your marketing and advertising strategies to appeal to ----------------------
the tastes and interests of your market, you must first identify your customer. In
order to do this, it is necessary to conduct a thorough research of the consumer ----------------------
marketplace. Remember, the more information you have about your target
----------------------
market, the better you will be able to develop a successful marketing plan.
1. Market Profile ----------------------
A market profile typically uses primary and secondary sources to answer ----------------------
key questions about a potential market.
----------------------
A profile is a picture or an outline. Information that makes up the social
profiles of the people in your target market is called demographic ----------------------
information and includes:
----------------------
 Age, usually given in a range (20-35 years)
 Sex ----------------------
 Marriage/partner status ----------------------

 Location of household ----------------------
 Family size and description ----------------------
 Income, especially disposable income (money available to spend)
----------------------
 Education level, usually to the last level completed
----------------------
 Occupation
 Interests, purchasing profile (what are the consumers known to ----------------------
want?)
----------------------
 Cultural, ethnic, racial background
----------------------
A clothing manufacturer may consider a number of possible target markets
– toddlers, athletes, grandparents (for grandchildren), teenagers and ----------------------
tourists. A general profile of each of these possible markets will reveal
which ones are more realistic, pose less risk and which are more likely to ----------------------
show a profit. A test market survey of the most likely market groups, or ----------------------
those who buy for them, such as parents for babies and toddlers, can help
you separate real target markets from unlikely possibilities. ----------------------
Sub-divide the market on the basis of geography, demographic, socio- ----------------------
economic, psychographic bases and the market conditions. The most
common descriptions of the target audience are in terms of geographic, ----------------------
demographic and socioeconomic terms. If we take into consideration a
simple product like a cycle, within this a normal cycle may be targeted at ----------------------
the rural community, whereas a sports cycle would focus more on young ----------------------
urban kids.
----------------------

Notes Again, you would ideally think that insurance would be for the older
generation, but you have to start working now. So what do you think is the
---------------------- target audience for the product? Basically people in the age group of 30 to
45 years are the focussed target group. Also, the profiles of these people is
---------------------- that of a senior executive, upwardly mobile and concerned about the future
---------------------- of the family.
Halley suggests a benefit sought as a useful base for identifying a target
----------------------
audience. It cuts across all other bases. The example of toothpaste users
---------------------- illustrates this. The toothpaste market has four identifiable segments, e.g.
 Prevention of tooth decay
----------------------
 Brightness of the teeth
----------------------
 Presence of flavour
----------------------  Mouth freshness
---------------------- Targetting, you must understand, makes the ‘marketing mix’ all the more
effective within the context of integrated advertising program. The product
----------------------
matches the consumer profile. The promotional program remains in tune
---------------------- with the consumers’ willingness to receive, assimilate and react positively
to the communication. It is a recognition of the fact that the market is
---------------------- not a single cohesive unit but it is rather seething in its very essence. It is
---------------------- a pulsating, antagonistic, infinitely varied sea of differing human beings,
where everyone is as distinct from the others as fingerprints.
----------------------
In a country like India where unity is in diversity, identifying target audience
---------------------- for a product is a formidable task. To optimise targeting, the potential of
the target market, its needs, its effective demand and accessibility needs
---------------------- must be considered.
---------------------- A marketing communication starts with a clear target audience in mind.
The audience critically influences the communicator’s decision on:
----------------------
 What is to be said.
----------------------
 How it is to be said.
----------------------
 When it is to be said.
----------------------  Where it is to be said.
----------------------  Who is to say it.
---------------------- If you were to advertise a product like Burgers, how would you integrate
the above questions in your attempt to identify the target market?
----------------------
The communication objectives emerge from the analysis of the
---------------------- target market. The quantitative research of consumer’s socio-economic
and demographic conditions, user-status, use frequency etc, along with
---------------------- the qualitative research of image analysis of the object in consumer’s
---------------------- perception, goes a long way in setting communication objectives. Image is

a set of beliefs, ideas and impressions of an object that a person holds. It is Notes
a precondition for any communication planning.
----------------------
Negative attitudes must be overcome before undertaking further
promotion. Hence, we also say that, analysing the image of a product in the ----------------------
mind of the consumer is a crucial step for bringing about differentiation in
the market place. This differentiation would help us in understanding the ----------------------
relevant target audience to be targeted. ----------------------
For example, in the case of Freedom bike from LML, we are looking at
not only the bike-loving community or an age group which is 18 +, but we ----------------------
are targeting the people who want their spirits to be free. The independent ----------------------
person is basically what we are looking at. Similarly the Fair & Lovely
advertisement, for example, previously was targeting girls who would ----------------------
get married if they used the Fair & Lovely fairness cream. Of course, the
advertisement came under much flak because it hurt the sentiments of ----------------------
women who had a darker complexion. As a result, the next advertisement ----------------------
focused on the confident young woman who becomes a TV commentator
despite all odds. So, the point is that we have to understand the complete ----------------------
profile of the consumer before we can actually make a target audience
analysis. ----------------------
Segmentation is a broader playing field, as far as consumer profiles are ----------------------

concerned. It is a prelude to targeting. The marketing team carries out
----------------------
several other tasks besides segmentation. In order to focus on the target
market, the team carries out a thorough evaluation of the various segments ----------------------
and selects those segments that are most appropriate. These segments
should be relevant, accessible, sizeable and, very importantly profitable. ----------------------
The evaluation of the different segments has to be based on these criteria ----------------------
and only on the basis of such an evaluation should the target segments
be selected. The marketing man or the advertiser must understand the ----------------------
assessment of the sales potential and profit potential from these segments.
----------------------
It must be realised that if the message that formulated and the money spent
on the campaign does not connect with the right people, we are not going ----------------------
in the right direction, as far as sales growth is concerned.
----------------------
We can also look at certain segments, which may have consumers who
are not too satisfied with the current offering by the competitors. It could ----------------------
also be possible that you target a few segments separately and design your
objectives accordingly. Even your message strategy will have to change. ----------------------
But you must understand your company’s resources and accordingly
----------------------
choose a target market. You might find all segments attractive but you have
certain constraints to work along with. ----------------------
2. Example – Soap Segment ----------------------
Let us take the example of soaps in India to understand the issue here.
----------------------
Consists of two segments:
----------------------
 Preference for premium soaps

Notes  Preference for popular soaps
a) Size wise
----------------------
1. Popular segment bigger than premium category.
----------------------
2. Premium segment just 15% of the total soap market in terms of
---------------------- tonnage.
---------------------- 3. Large volume of business in popular segment.

4. However, value is higher in the premium segment. The size also
---------------------- being considerable.
---------------------- b) Future Position
---------------------- 1. High growth sectors are in the minds of the business firms.
2. The popular segment is growing at the rate of 10% per annum,
----------------------
whereas the premium it is 30 % per annum, with premium sector.
---------------------- c) Profitability
---------------------- 1. Price range for the premium segment is placed between Rs. 10/ and
Rs. 50/.
----------------------
2. Price range for the popular segment is less than Rs. 10/.
----------------------
3. Although volume selling in the popular segment would bring
---------------------- about sales, the profitability factor would be low.
4. The profitability factor is high, where the premium segment is
----------------------
concerned.
---------------------- 5. Launching a brand is competitive, especially when the competition
is growing by the day.
----------------------
6. Expensive media like TV would have to be used to get in touch
---------------------- with the target group.
---------------------- 7. Selling and marketing costs need to be taken into consideration.
---------------------- d) Accessible
1. The various market shares of the brands of the competitor will
----------------------
determine this. If the market share is on the rise per annum, then
---------------------- it would mean that the market is accessible.
e) Resources and objectives to be matched
----------------------
1. The position of the firm in terms of competency and relative
---------------------- experience will determine this.
---------------------- 2. A firm will have to look at areas like internal culture, marketing
styles and strong organisation, along with a stronghold, where
---------------------- resources are concerned.
---------------------- Please understand that this is a very strategic decision, which a firm has to
undertake in order that the right customer group is reached.
----------------------

What constitutes a ‘good’ target market? Notes
 Measurable: Size, purchasing power and profiles of the segment can
----------------------
be measured.
 Accessible: Effectively reached and served. ----------------------
 Substantial: Large or profitable enough to serve. ----------------------
 Differentiable: Conceptually distinguishable and responds differently ----------------------
to different marketing mix elements and programs.
 Actionable: Effective programs can be designed for attracting and ----------------------
serving the segments. ----------------------
The issue in target market is not who is targeted but rather how and what
for. The profile of the people and their needs should be clearly understood ----------------------
in order to reach them. ----------------------
----------------------
Match the following.
i. High involvement buying a. Variety seeking buying behavior ----------------------
ii. Low involvement buying b. Picture or an outline of the market
----------------------
iii. Behaviour c. Market division based on knowledge,
attitude, uses or response ----------------------
iv. Market Profile d. Complex buying behavior
----------------------
----------------------
Activity 3
----------------------
Conduct a survey with your friends and define the target market for the
following brands: ----------------------
a. Whirlpool Washing Machine ----------------------

b. Titan Watches ----------------------
c. Nike shoes
----------------------
d. Amazon.com
----------------------
Summary ----------------------
----------------------
 For an advertiser, successful advertising is a result of clear marketing
objectives. For any advertising campaign to be successful, it is important ----------------------
to have a plan that fits in with the overall plan of the company. The
advertising plan is a part of the marketing plan, which is a part of the ----------------------
company’s long-term goals.
----------------------
 The advertising objective is a part of long-term company objectives.
These long-term objectives are measured in financial terms, return on ----------------------

Notes investment and value to shareholder or profits. Marketing objectives,
along with other objectives, are a result of strategy. A strategy is the game
---------------------- plan by which these objectives will be achieved.
 An advertising objective is the desired result at the end of an advertising
----------------------
campaign.
----------------------  A marketing plan starts with: a situation analysis, which results in a SWOT
---------------------- analysis. The advertising plan is a part of the marketing plan and is closely
linked to the marketing objective. The advertising plan will focus on three
---------------------- critical areas – target selection, message strategy and media strategy. A
campaign creation can be put into three phases: Strategy Development
---------------------- Phase, Briefing Phase and the Creative Phase itself.
----------------------  The process of identifying and advertising to a group of prime prospect is
called target marketing or niche marketing.
----------------------
 Target marketing involves segmentation and positioning. Breaking a
---------------------- market into distinct groups of customers that have similar lifestyles and
needs is called segmentation.
----------------------
 Positioning is something (perception) that happens in the minds of the
---------------------- target market. In marketing, positioning has come to mean the process by
which marketers try to create an image or identity in the minds of their
---------------------- target market for its product, brand, or organisation.
---------------------- There are six approaches to Positioning Strategy.
 What should positioning strategy be? Identification and selection of
----------------------
a positioning strategy can be difficult and complex. It becomes more
---------------------- manageable if supported by marketing research and phased out into a six-
step process.
----------------------  The study of consumer behaviour would be: how consumers spend time,
---------------------- money and effort on consumption related items. It includes What they
buy, Why they buy, When they buy, Where they buy, How often they buy
---------------------- and How often they use it.
 In order to tailor your marketing and advertising strategies to appeal
----------------------
to the tastes and interests of your market, you must first identify your
---------------------- customer. To do this, it is necessary to conduct a thorough research of the
consumer marketplace. Remember, the more information you have about
---------------------- your target market, the better you will be able to develop a successful
---------------------- marketing plan.
----------------------
----------------------
----------------------
----------------------
----------------------

Keywords Notes
----------------------
●● Advertising clutter: The extent to which multiple messages compete for
the consumers’ (limited) attention. It often is used to indicate multiple ----------------------
competing messages in one medium (such as television) or place.
----------------------
●● Advertising/display allowance: A form of trade sales promotion in
which retailers are given a discount in exchange for either promoting the ----------------------
product in their own advertising, setting up a product display, or both. It
is also known as a display allowance. ----------------------
●● Advertising penetration: The percentage of the target market that ----------------------
remembers a significant portion of the advertising message conveyed by
an advertised campaign. ----------------------
●● Advertising strategy: A statement prepared by the advertiser (often in ----------------------
association with an advertising agency) setting forth the (1) competitive
frame, (2) target market, and (3) message argument to be used in an ----------------------
advertising campaign for a specific product or service. ----------------------
●● Bait-and-switch advertising: The advertising of a product or service at
an unusually low price with an intention to switch to a higher priced item ----------------------
when the customer comes to the store to buy the advertised item. This ----------------------
practice is illegal if customers find it difficult or impossible to buy the
advertised item. ----------------------
●● Banner Ad: A graphical Internet advertising tool. Users click on the ----------------------
graphic to be taken to another Web site. The term “banner ad” refers to
a specific size image, measuring 468 pixels wide and 60 pixels tall (i.e. ----------------------
468x60), but it is also used as a generic description of all graphical ad
formats on the Internet. ----------------------
●● Billboard: Generic term for hoardings, bulletins and posters. ----------------------

●● Button Ad: A graphical advertising unit smaller than a banner ad. Also ----------------------
called a tile ad.
----------------------
●● Promotion Mix: The various communication techniques such as
advertising, personal selling, sales promotion, and public relations/ ----------------------
product publicity available to a marketer that are combined to achieve
specific goals. ----------------------
●● Promotional Campaign: The combination of various advertising, public ----------------------
relations, sales promotion, and personal selling activities used by the
marketer over a period of time to achieve predetermined goals. ----------------------
●● Positioning: Choosing a market niche for a product, taking into ----------------------

consideration price, promotion, distribution, packaging, competition,
marketplace needs, etc. ----------------------
●● Word-of-mouth: When the message reaches the consumers through what ----------------------
is spoken by consumers and no advertising is involved.
----------------------

Notes ●● Zapping: The act of using a remote control to change television channels
when an advertisement begins. Advertisers are concerned that this will be
---------------------- harmful, but it is still unclear what effect zapping will have on advertising
effectiveness.
----------------------
●● Zipping: Advertisers are concerned about the effect of zipping on
---------------------- advertising effectiveness, but any effect is not yet known. In fact, viewers
may pay more attention to advertising while zipping to be able to stop fast
----------------------
forwarding in time when the show resumes.
----------------------
----------------------
---------------------- 1. Choose two products and identify their marketing objectives and
advertising objectives.
---------------------- 2. Identify three brands that have been repositioned recently. What was their
---------------------- earlier positioning and point out their reposition?
3. Write out the positioning statement for any three brands.
----------------------
4. Work out the market profile in terms of the target segment for a new
---------------------- beauty soap to be launched in North India, priced the same as Lux.
---------------------- 5. Think of a consumer who would buy Killer jeans. Work out the consumer
profile.
----------------------
6. Discuss two brands recently launched that have had very prominent
---------------------- advertising campaigns.
---------------------- 7. List the positioning of the following:

---------------------- 1. True
2. False
----------------------
3. False
----------------------
---------------------- 1. There are two major parts to an advertising strategy - assessment and
action.
----------------------
2. A product’s position is how potential buyers see the product.
----------------------
3.
Re-positioning involves changing the identity of a product, relative to the
---------------------- identity of competing products.
4.
De-positioning involves attempting to change the identity of competing
----------------------
products, relative to the identity of your own product.
Check your Progress 3 Notes
----------------------
i. –d
----------------------
ii. –a
iii. –c ----------------------
iv. –b ----------------------
----------------------
Suggested Reading
----------------------
PHI ----------------------
3. Irwin. International Edition - Contemporary Advertising. McGraw Hill ----------------------
----------------------
5. Chunawalla, S.A. Sethia, K.C. Foundations of Advertising Theory &
Practice. Himalaya Publishing. ----------------------
6. Chaudhury, Pran. Successful Brands. ----------------------
----------------------
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----------------------
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----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
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Media Strategy, Budgets, Research
UNIT
6
Structure:
6.1 Introduction
6.2 Understanding Media
6.3 The Media
6.4 Understanding Media Selection
6.5 Budgets
6.6 Research
Summary
Keywords
Suggested Reading
Media Strategy, Budgets, Research 157

Notes
Objectives
----------------------
----------------------
• Define media strategy.
----------------------
• Explain the concepts of media selection and the process.
---------------------- • Differentiate between the different budget options.
---------------------- • Describe how an ad budget is arrived at by organisations.
---------------------- • Construct a media plan.

• Elaborate on the scope and use of research in advertising
---------------------- management.
----------------------
6.1 INTRODUCTION
----------------------
If the medium is indeed the message, we can say that media planning is at
----------------------
the heart of the communication process.
---------------------- To be sure, media has evolved dramatically. We all know how the
---------------------- media landscape has changed. The media explosion and the resultant media
fragmentation has given rise to a new, even more dazzling set of acronyms.
---------------------- Structurally, the function and the business model have changed, as has
---------------------- tracking methods. In short, virtually everything has changed. Media planning is
gaining in importance due to the increasing variety of media.
----------------------
Strategic media planning lets you know where you want your company to
---------------------- be and this is absolutely essential for success.
---------------------- Strategic media planning results in an increase in media attention. In fact,

the greatest advertising campaigns will cause media attention all on their own.
---------------------- There are, however, no set guidelines on how to capture media attention
---------------------- With strategic media planning, media attention generated on your customer
is tremendous. Have you ever noticed that after reading about a company in the
---------------------- paper, you suddenly start to notice it on billboards, ads and the radio? That is
---------------------- because we listen to the news with less bias than we read ads. In this state of
mind, we are primed to receive new information.
----------------------
Premium placement in a magazine or on television is an important
---------------------- ingredient in the success of your advertising campaign.
This involves cultivated relationships with media vendors of all kinds.
----------------------
From outdoor advertisers and publications to cable operators and Internet
---------------------- marketing resources, your ads will get front and centre placement, if you so
desire.
----------------------
----------------------

1. Understanding media as a critical factor in advertising management Notes
Advertising has become more global. Advertising agencies are becoming
----------------------
global conglomerates. Products aspire to become brands that aim to go
global. As Marshall sMcLuhan said “The medium is the message.” But ----------------------
curiously, Indian consumers seek local news and prefer entertainment in
the local language (Pogo, MTV channels and Harry Potter in Hindi). Media ----------------------
is now both ‘global’ and more ‘local.’ So ‘glocal’ is the buzzword. ----------------------
Media is, without doubt, an unabashedly urban phenomenon because of
the nature of text and visual literacy that it demands from its audience and ----------------------
because of the support it requires from robust urban commercial activity ----------------------
that must advertise to whet urban consumption.
----------------------
Indian media is both urban and vary localised. In fact, this is a very big
strength when it comes to advertising. Today major companies like ITC ----------------------
and Levers are tapping the rural markets in a big way!
----------------------
a) Advertiser, agency and media interface
In short, as long as news reported in any language is local, news and ----------------------
entertainment channels in the local language/languages continue to notch
----------------------
up higher TRPs than news and entertainment in a foreign language (BBC,
CNN, and HBO). Media will continue to be local. Look at the success of ----------------------
AajTak news channel in Hindi, followed by Star News and Zee News.
----------------------
The media has undergone seismic changes in the last 30 years. There is
media fragmentation. In truth, that is MEDIA SEGMENTATION. ----------------------
The amount of money spent on advertising in the various media has been ----------------------
increasing substantially every year and this is what keeps media alive.
Advertising is a most welcome force to finance societies, primarily urban ----------------------
society’s needs for information and to keep up the entrepreneurial and ----------------------
creative spirits associated with information dissemination in every nation,
particularly the democratic ones. ----------------------
b) What is media? ----------------------
When we talk of media, we only refer to such media as carries paid
----------------------
advertising. The greater precision with which a particular medium
can deliver an advertising message to a pre-defined target audience or ----------------------
pre-determined set/group of readers/viewers/listeners, the greater the
effectiveness of that medium. ----------------------
Through the years, the largest media category has been newspapers, ----------------------
measured in terms of total client expenditures, followed very closely by
the television, which was nonexistent until 1945 worldwide and until 1959 ----------------------
in India.
----------------------
Outdoor and Direct mail compete for the position of third-largest medium.
Thus, direct mail, a medium with low visibility in many respects, has been ----------------------
growing with reasonable speed and has garnered much advertising revenue ----------------------

Notes as compared to the radio. Direct mail has dramatically increased its share
of media expenditures in recent years. In contrast, newspapers are dropping
---------------------- in market share.
---------------------- Television has increased in media share, whereas magazine share has
been either dropping or flat. The strength of direct mail is its potential
---------------------- for pinpointing an audience and its capacity to present large quant-ties of
advertising. It is a rapidly growing medium. One reason for the growth of
----------------------
direct mail is that in the absence of adequate print media segmentation,
---------------------- advertisers have to create their own “medium” and database to reach select
audience groups critical to their business.
----------------------
Business papers are on the growth path and so are trade magazines used
---------------------- by industrial advertisers and others who target their advertising to non-
consumer audiences (B2B).
----------------------
Radio is on the comeback with the FM boom, but there is the slow but sure
---------------------- transformation of the Outdoor media.
---------------------- Media developments have dramatically influenced the thrust of advertising

through the years.
---------------------- The most significant contribution to advertising was perhaps, the
---------------------- development of the printing press by Guttenberg in 1438. Forty years later,
in 1478, William Claxton printed the first English language advertisement,
---------------------- a handbill for a book of rules for the clergy at Easter.
---------------------- The printing press, of course, made mass circulated papers feasible at
reasonable prices and turned print media into an the engine of growth for
---------------------- the entire industry.
---------------------- It is a fact that magazines are becoming more specialised. Magazines today
are aiming at special interest groups and are often regional in scope. As a
---------------------- result of magazine specialisation, the audience is often more specialised
and is therefore desirable to an advertiser, who is attempting to reach more
----------------------
specific audiences. Magazines are innovating and attempting to capitalise
---------------------- on their physical contact with the audience, to make their advertisements
more effective.
----------------------
Perfumed ink was used as early as 1957 for Baker’s ‘Coconut in a
---------------------- Better Home & Garden advertisement. Since then, it has been used in
advertisements for perfume, cologne, vodka, and soap.
----------------------
Recordings are now included in advertisements. They are particularly
---------------------- effective in business advertisements that have a lengthy, detailed story
to tell. Actual product samples are now appearing in advertisements for
---------------------- shampoo, sugar, band aids, candy, facial tissues and computer software.
---------------------- Catalogues and other booklets are being extensively distributed in
magazine advertisements. The POLO hole is cut in the Times of India.
---------------------- These and other innovations reflect the willingness of magazines to build
on their strengths with fun and creativity, to give advertisers an edge over
---------------------- their competitors.

Radio emerged in 1922 as an exciting, new advertising medium. The Notes
1930’s and 1940’s were the golden years of radio. With the advent of
television, however, radio went into the doldrums. But radio has started ----------------------
to make a comeback, finding a useful niche for itself by providing
entertainment, news and companionship, particularly for those in a car or ----------------------
otherwise preoccupied outside the home. It seems to have served a purpose ----------------------
in a mobile and restless society. Radio’s revitalisation has been achieved
by such programming innovations as talk shows, the all-news format, and ----------------------
hard-rock programs and by such technological innovations as transistors
and the “Walkman, which makes radios highly portable for people of all ----------------------
ages. Like magazines, radio has become more specialised as stations try ----------------------
to serve well-defined segments of the population. It has been particularly
successful in developing a youth, appeal. Like newspapers, it is a good ----------------------
medium for local advertisers, who provide radio with more than 60 per-
cent of its advertising. ----------------------
Television, delayed by World War, began in the mid-1940s. In 1948, Milton ----------------------
Berle premiered his show, which was to dominate the ratings during the
----------------------
early years of commercial television.
A major trend in the media industry for the 1990s is the information ----------------------
highway built with fiber-optic cable and connecting millions of households
----------------------
and businesses. Dozens of multimedia services have been developed, to
take advantage of the new information age, from home movies on demand ----------------------
to bill paying, home banking, and in-home shopping. The e-mail is settling
in as a communication tour de force. Banners and buttons and interstitials ----------------------
may invade the medium, but only after we sort out the privacy issue.
----------------------
Interactive media, with which consumers can request movies and do
their shopping and banking from home computers or television sets, is also ----------------------
evolving.
----------------------
Advertising is playing a role in these developments and they, in turn, have
begun to shape advertising in new and different ways. E-media is strictly ----------------------
not the subject of this paper in Advertising Management, only as a part of
the integrated communications effort of any corporation. ‘Click and portal’ ----------------------
advertising in brick and mortar set-ups is a phenomenon that you can study
----------------------
as a separate exercise.
Another trend is towards consolidation and new competitive forms in ----------------------
the media, telephone, computer, entertainment, and electronic industries. ----------------------
Barriers to competition between traditional telephone companies and
cable companies are breaking down and some rather hasty mergers and ----------------------
acquisitions have taken place.
----------------------
The mobile phone is surely and steadily becoming a media force to reckon
with for advertisers seeking to reach the youth. No advertiser has quite ----------------------
exploited the medium, but it is surely happening.
----------------------
Media takes leaps forward when content finds it impossible to make itself
heard. ----------------------

Notes 6.2 UNDERSTANDING MEDIA
---------------------- A medium is basically a channel of communication, such as newspapers,
magazines, radio, TV. It is a vehicle by which advertisers convey a message to
---------------------- prospects. It closes the gap between the producer at one end and the consumer at
---------------------- the other end. This is looking at the media from the point of view of advertisers
and audiences.
----------------------
Another view of media would be this: Different media are organisations
---------------------- or enterprises for entertainment. They sell products in terms of newspapers,
magazines, TV and radio programs. At best, they are service organisations
----------------------
fulfilling the needs of listeners, readers, viewers for entertainment or
---------------------- information. Each medium designs its products to be more and more attractive
to the audience. Each medium applies marketing concepts: To design the right
---------------------- product, selling at the right price, distributing through several outlets and at
---------------------- times using promotions to increase circulation or popularity of programs.
Newspapers publish local news, national news, international news, special
----------------------
interest info – business, sports, housekeeping, real estate, stock markets, science
---------------------- etc. Once a medium is established, it has to build readership or audience. It has
to be in a strong position to attract advertisers who want to reach their message
----------------------
to audiences to sell their products.
---------------------- The advertiser has to choose the media vehicles for the advertising
---------------------- campaign. The choices include newspapers, magazines, radio, television,
outdoor and internet. The choice is determined by a systematic method called
---------------------- media planning.
---------------------- The media earns revenue from two sources: Selling products or circulation
(newspapers, magazines etc) and advertising or selling space or time.
----------------------
---------------------- 6.3 THE MEDIA

---------------------- The function of media consists of media planning, media research and media
buying.
----------------------
 Media planners are entrusted with the task of delivering the advertising
---------------------- message to the target audience at the right time and right place and through
---------------------- the right medium or media mix. The media planner is responsible for the
entire advertising campaign in relation to the media.
----------------------
 The media research department coordinates and evaluates all research data
---------------------- and acts as a support to the media planning department. It tracks trends in
the media environment.
----------------------
 The media buying department selects media and negotiates the rates. They
---------------------- monitor the media schedule, placements and execution.
----------------------

1. Types of Media Notes
There are two types of media: a) Above-the-line and b) Below-the-line
----------------------
a) Above-the-line
----------------------
 Press
 TV ----------------------
 Outdoor ----------------------
 Posters ----------------------
 Cinema
----------------------
 Radio
----------------------
b) Below-the-line
Those which do not give a commission to ad agencies: ----------------------
 Direct Mail ----------------------

 Merchandising ----------------------
 Exhibitions
----------------------
 Sales literature
----------------------
2. Various categories of media
There are many categories of media today. These include – ----------------------
a) Print Media ----------------------

i) Newspapers: daily, weekly, weekend supplements. Ads are ----------------------
measured in terms of column centimeter. Newspapers charge
certain rates per column centimeter (cc). Different newspapers ----------------------
charge different rates. The rates vary for colour and black and
----------------------
white.
ii) Magazines: consumer magazines (general interest, special interest ----------------------
like Auto World, Interiors), business publications like Business
----------------------
Today, Business India, Computers Today, trade publications,
institutional publications etc. Magazines charge for full page, ----------------------
half page, and quarter page and also for inside cover, back cover,
inside back cover positions. ----------------------
iii) Direct Advertising: Direct mail ----------------------
b) Broadcast Media: For radio and TV, the cost is calculated in terms of ----------------------
seconds.
i) Radio – Radio Mirchi, Radio City, AIR, Vividh Bharati ----------------------
ii) TV – Terrestial channels – DD and satellite channels – Star, Sony, ----------------------

Zee
----------------------
iii) Narrow-cast media – video and cable TV, Cinema, Ad films
----------------------

Notes c) Transit Media:
i) Bus, auto, taxi, panels
----------------------
d) Other media:
----------------------
i) Speciality media - T-shirts, caps, stickers, badges etc
---------------------- ii) Direct advertising or direct marketing (DM)
---------------------- iii) Internet – web, blogs (media of the millenium)
---------------------- e) Outdoor Media:
i) Hoardings (billboards), electronic signages, neon signs
----------------------
ii) Kiosks
----------------------
iii) Bus shelters
---------------------- iv) Wall paintings
---------------------- v) Balloons
---------------------- vi) Road dividers
3. Advantages and disadvantages of different media
----------------------
a) Advantages and Disadvantages of Magazines
----------------------
i) Advantages
----------------------  Good reproduction
----------------------  Demographic selectivity
----------------------  Regional/local selectivity
 Long advertising life
----------------------
 High pass-along rate
----------------------
ii) Disadvantages
----------------------  Higher cost per contact
----------------------  Long-term advertiser commitments
----------------------  Slow audience build up
 Limited demonstration capabilities
----------------------
 Lack of urgency
----------------------
 Long lead time
---------------------- b. Advantages and Disadvantages of Radio
---------------------- i) Advantages
----------------------  Selectivity and audience segmentation
 Immediate and portable
----------------------
 Geographic flexibility
----------------------
 Short-term ad commitments
ii) Disadvantages Notes
 No “visual” treatment
----------------------
 Short advertising life
----------------------
 High frequency to generate retention
 Commercial clutter ----------------------
 Background distractions ----------------------

c. Advantages and Disadvantages of TV ----------------------
i) Advantages
----------------------
 Wide diverse audience
----------------------
 Low cost per thousand
 Creative and demonstrative ----------------------
 Immediacy of messages ----------------------

 Entertainment carryover ----------------------
 Demographic selectivity with cable
----------------------
ii) Disadvantages
----------------------
 Short life of message
 Expensive with high campaign cost ----------------------
 Little demographic selectivity with network ----------------------

 Long lead times ----------------------
 Clutter (specially during popular programs)
----------------------
d. Advantages and Disadvantages of Outdoor Media
----------------------
i) Advantages
 High exposure frequency ----------------------
 Moderate cost ----------------------

 Flexibility ----------------------
 Geographic selectivity
----------------------
 Broad, diverse market
----------------------
ii) Disadvantages
----------------------
 Short message
 Lack of demographic selectivity ----------------------
 High “noise” level ----------------------
----------------------
----------------------

Notes e. Advantages and Disadvantages of Internet and Web
i) Advantages
----------------------
 Fast growing
----------------------
 Ability to reach narrow target
----------------------
 Short lead time
----------------------  Moderate cost
---------------------- ii) Disadvantages
----------------------  Difficult to measure ad effectiveness and ROI (Return on

Investment)
----------------------
 Ad exposure relies on “click through”
----------------------  Not all consumers have access to the Internet
---------------------- 4. Media selection is vital for the success of an ad campaign
---------------------- Effective Advertising is informing the public about the right product at
the right time through the right medium. So, media selection is the crux
---------------------- of the success of advertising campaign.
---------------------- The media is selected on the basis of medium, which creates better impact
and is cost efficient. For example, to advertise up-market ladies cosmetic
---------------------- like lipstick, the most effective media selection would be to concentrate
---------------------- on a high profile fashion magazine. Here pulsing would help. Rates could
be negotiated for cost efficiency. On the other hand, advertising for a car
---------------------- would require a media mix. This happens when a single medium will not
have sufficient impact. The media mix could be determined by the target
----------------------
segmentation. Its selection could be a combination of newspapers, general
---------------------- interest magazines, television and outdoor media. Selecting the channel on
television, newspapers and magazines would be determined by the target
---------------------- segment.
---------------------- 5. Media Strategy is a part of the overall ad plan
---------------------- Media strategy comprises of determining the geographic spread and

scheduling the advertising, selection of the media and calculating the cost.
---------------------- For example, if a new ladies shampoo is to be launched by Hindustan
Levers, the geographic spread of the media will be restricted to cities
----------------------
where the brand is available.
----------------------
Media decisions concern areas such as given below:
---------------------- a) What are the available media that will serve the advertising best?
---------------------- b) Is it newspapers, magazines, radio, TV, direct mailing, outdoor etc?
---------------------- c) Which individual medium will be the best vehicle for the advertising?
---------------------- d) Which would be best combination or media mix?

e) The effectiveness of a well-designed advertising message depends on Notes
“when” and “where” it is released.
----------------------
f) The success of advertising depends on: the right media selection,
timely release of message, its frequency and continuity and the place ----------------------
of release.
----------------------
g) For right media planning and selection, the advertiser must know the
consumer profile and the market to be reached i.e. the Target Market. ----------------------
----------------------
1. Media planning is gaining in importance due to the increasing variety ----------------------
of media. ----------------------
2. Radio is the biggest component of the media in India.
----------------------
3. Media planning is delivering the advertising message to the target
audience at the right time and place and through the right medium. ----------------------
1. Indian media is characterised as both urban and very ________.
----------------------
2. The media is selected on the basis of better _________ and is cost
efficient. ----------------------
----------------------
Activity 1 ----------------------
Consider the TV commercial for Coke, Pepsi and Sunfeast Biscuits. Check ----------------------
on TV how long the commercial is, in terms of seconds. If you hear it on the
radio, again check the time in terms of seconds. ----------------------
----------------------
6.4 UNDERSTANDING MEDIA SELECTION ----------------------
Media selection involves certain critical factors, such as shown in the diagram below. ----------------------
Cost per content ----------------------
----------------------
Reach
----------------------
Factors influencing
Media mix ----------------------
Decisions Frequency
----------------------
Audience ----------------------
Selectivity
----------------------

Notes 1. The Media Plan
---------------------- The Media Plan consists of the following stages:

a) Studying people or market
----------------------
b) Deciding the nature of message to be conveyed to target
----------------------
c) Searching for an ideal match of audience characteristics of media with
---------------------- target market profile
---------------------- d) “Reach” of different media

2. Media Mix
----------------------
This refers to the type of media that is to be used. What is the mix of media
---------------------- to be used for a particular brand’s advertising, in order to get the maximum
mileage?
----------------------
3. Media Objectives
----------------------
Establishing media objectives is the first step in formulating a media plan.
---------------------- While formulating objectives, the major considerations are target audience,
reach, frequency and continuity.
----------------------
4. Target Audience
---------------------- The most fundamental decision for the media planner is defining the
---------------------- target audience. The profile of the target audience is developed using
demographic, lifestyle, product usage and psychographic variables. With
---------------------- the help of research, the audience is described by age, household size,
income, occupation, marital status, product and brand usage and other
---------------------- factors.
---------------------- 5. Reach
---------------------- Reach or coverage is the number of people or percentage of the target
audience that is exposed at least once in a given period to a particular
---------------------- media vehicle. For e.g. if the target audience is 5,000 out of 10,000 young
adults aged 14-19 watch Channel [V] program once or more than once,
---------------------- during the month, then the reach is 50%.
---------------------- 6. Frequency
---------------------- Frequency is the number of times that each person in the audience is
exposed to the media vehicle within a given period. If 5,000 young adults
---------------------- were reached and generated 20,000 exposures, then the frequency would
be 20,000 / 5,000 = 10.0.
----------------------
7. Reach & Frequency
----------------------
Reach and frequency have an inverse relationship. Within a given budget,
---------------------- reach and frequency cannot be maximised.
---------------------- 8. Message Weight
---------------------- Message weight is the size of the total target audience reached by the
various media vehicles. Message weight is calculated by adding reach.
Gross impressions are the sum of target audience exposures to a media Notes
vehicle. For example, an advertisement of Pepsi on Channel [V] watched 4
times by 5,000 people of the target audience and watched 6 times by 3,000 ----------------------
people.
----------------------
This was also advertised on the National Geographic channel the same
week which was watched 2 times by 2000 people of the target audience, ----------------------
then the sum total would be (4 x 5,000) + (6 x 3,000) + (2 x 2,000) =
----------------------
42,000.
Media planners for convenience use gross rating points (GRP). 1% of the ----------------------
target audience is equal to 1 rating point. In the above example, the total
----------------------
reach was 10,000 (10% = 10) with a frequency of 42.0
The GRP would be 10 x 42.0 = 420 ----------------------
9. Cost Efficiency ----------------------
Advertisers need to analyse the cost of using various media. By evaluating ----------------------
the cost of reaching the target audience and comparing the cost efficiency
of various media, the advertiser can determine the media mix and prepare ----------------------
schedules to meet media objectives.
----------------------
Cost per thousand (CPM) is used to compare media costs. CPM is calculated
by dividing the cost of media vehicle by gross impressions x thousand. ----------------------
A full page colour advertisement in India today at a cost of Rs. 3,60,000, ----------------------
3,60,000 x 1000
which has a circulation of 3,00,000, would be = Rs. 1,200 ----------------------
3,00,000
10. Media Scheduling
----------------------
This involves the number of ads to appear in each medium, size of ads
and the dates on which they appear. This can follow a steady or pulsed ----------------------
campaign. ‘Pulse’ can be of many types. ----------------------
a) Steady pulse: one ad/week for 52 weeks or 12 months
----------------------
b) Seasonal pulse: Products like Vicks, Glycodin, Cold Cream, Fans,
ACs ----------------------
c) Period pulse: Follows a regular pattern – e.g. media scheduling ----------------------
consumer durables or non-durables
----------------------
d) Erratic Pulse: Irregular ads
----------------------
e) Start-up pulse: New launch
f) Promotional pulse: for a short time – promotion, or “financial” ad of ----------------------
company’s public issue campaign.
----------------------
Scheduling or timing the advertising is effective when: Consumers are
most likely to buy the product. For example, beverages and colas will be ----------------------
advertised heavily during the summer. ----------------------
The target audience is most receptive. For example, a television ----------------------
advertisement on a popular TV channel on Sunday.

Notes The demand is slow. For example, advertising for ice-cream during the
monsoon. Advertising is used to encourage consumption and stimulate
---------------------- demand.
---------------------- 11. Media Buying
---------------------- The area of media buying deals with negotiations with different media
houses – TV, print, radio, outdoor etc.
----------------------
The bigger you are, the better is your negotiating capacity
----------------------
12. Some Common Terms used in Media
----------------------  GRPs - Gross Rating Points
----------------------  TRPs – Television Rating Points
----------------------  Reach
----------------------  Prime Time

 Readership
----------------------
 Circulation
----------------------
 OTS – Opportunity To See
----------------------
 Media Fragmentation
----------------------  Rural Media
----------------------  Haats, Melas
----------------------  Ambient media – elephants in jackets, umbrellas etc
---------------------- 6.5 BUDGETS

----------------------
There are various methods of deciding an advertising budget. This decision
---------------------- will be largely influenced by the objective that we set for the campaign. For
example, if there is a new product launch then the advertising campaign will
---------------------- have to be high, whereas for launching a repeat campaign, one would like to
spend less.
----------------------
Different methods of budgeting
----------------------
It should be emphasised here that no method of determining an ad
---------------------- budget is ever perfect, because there are too many uncertainties involved in the
---------------------- measurement of advertising effects.
Thus several different methods from the ones described below should be
----------------------
tried, and judgment will then have to be applied to come up with a figure that
---------------------- seems warranted from a payout, affordability, brand needs, and competitive
standing point of view-all at once. The important thing is to make an effort to
---------------------- do it right.
----------------------

The most commonly used advertising budgeting method includes: Notes
a) Percentage of sales volume
----------------------
The percentage is worked out on the basis of a firm’s historical budget,
industry norms or on the basis of the prevailing market conditions. If the ----------------------
market has started an upward trend, then one per cent extra amount will
be put for advertising budget. Following this method without considering ----------------------
market conditions may create a problem. If the firm’s market share is in ----------------------
a downward trend, then the firm may decide to increase the advertising
budget. If the product is in the disinvestment stage, then disinvestment may ----------------------
be an option. In such a case, a marginal advertising budget is sufficient to
clear the stock. If the firm realises that at the decline stage the competitors ----------------------
are moving out, then the firm can decide to take the leadership position ----------------------
through aggressive advertising.
b) Unit of sale method ----------------------
Consumer durable firms make use of this method as a variant on sales ----------------------
percentage. While it mostly works out the same as a sales percentage, here
the firm puts an amount of advertising expenses on the unit as an add on. ----------------------
c) Competitive parity method ----------------------
The firm must carefully study competitive information regarding their ----------------------
sales, distribution pattern and advertising. It will provide the correlation
between the competitive sales and advertising effort. Depending on the ----------------------
firm’s strategy of increasing market share or steadying the share, a decision
can be made to have a bigger or smaller budget than competition. Instead ----------------------
of reacting to competitor advertising results, firms can be proactive in their ----------------------
approach by planning their own goals of marketing and then the advertising
budget will emerge. ----------------------
d) Historical method
----------------------
In this method, the previous year’s advertising budget is adopted for the
year, in the belief that practically no change has taken place in the market ----------------------
and that market growth is slow, which does not justify any addition to the
----------------------
budget. The previous year’s budget could be multiplied by a factor to cover
media rate increase. ----------------------
e) Affordability method
----------------------
Some firms believe that advertising is tactical and not strategic and hence
does not need much attention. These kinds of firms follow a method of ----------------------
affordability and spend what is left after managing the details of the official
----------------------
expenses involved in paying to the factors of production.
f) Total group budget ----------------------
In case of multi location and multi-product line firms, a total amount is ----------------------
decided for advertising and each strategic business unit receives a share
according to its needs. This method helps the group to segregate some ----------------------
amount for corporate group advertising, for building the image of the
organisation. ----------------------

Notes g) Percentage of anticipated turnover
This method is useful in dynamic markets. The budget can be fixed on the
----------------------
estimated demand pattern rather than on the current year sales.
---------------------- h) Elasticity method
---------------------- This method takes into account the seasonality of the business and the
periodicity in the purchase cycle of consumers into consideration. It also
---------------------- takes into consideration the demand and supply situation and is more used
in industrial products.
----------------------
i) Operational modelling
----------------------
Market research gives advertising expenses, market response and sales per
---------------------- advertising figures and the modeling is done to explain the budget.
---------------------- j) Composite method

This method takes into consideration several factors in formulating an
----------------------
advertising budget, which include indices like the firm’s past sales, future
---------------------- sales projection, production capacity, market environment, sales problems,
efficiency level of sales personnel, seasonality of the market, regional
---------------------- considerations, changing media scenario and changing media impact on
the target market segment, market trends and results of advertising and
----------------------
marketing.
---------------------- k) Objective and task method
---------------------- Marketing people follow this method often, as this is a scientific method
where the advertising goals are explicitly stated and the cost to achieve
---------------------- the target is also spelt out. Taking each activity, like increasing geographic
sales area or increasing market awareness, by a certain percentage over
----------------------
the figure obtained from the brand tracking study, they add up the amount
---------------------- needed for each activity. We can illustrate the process as below:
---------------------- i) Establish the market share goal: If the company estimates 50 million
potential users, it sets a target of attracting 8 percent of the market i.e.
---------------------- four million users.
---------------------- ii) Determine the percentage of the market that should be reached by
advertising: The advertiser hopes to reach 80 % (40 million prospects)
---------------------- with the advertising budget.
---------------------- iii) Determine the percentage of aware prospects that should be persuaded
to try the brand: The advertiser would be pleased if 25 per cent of aware
---------------------- prospects (10 million) tried the brand. This is because it estimates that
40 % of all triers or 4 million people would become loyal users. This
----------------------
is called the Market Goal.
---------------------- iv) Determine the number of advertising impressions per 1 per cent of
trial rate: The advertiser estimates that 40 advertising impressions
----------------------
(exposures) for every 1 per cent population would bring about a 25 %
---------------------- trail rate.

v) Determine the number of Gross Rating Points that would have to be Notes
purchased: A Gross Rating Point is one exposure to 1 per cent of the
target population. If the company wants to achieve 40 exposures to 80 ----------------------
% of the population, it will want to buy 3,200 gross rating points
----------------------
vi) Determine the necessary advertising budget on the basis of average
cost of buying a gross rating point: To expose 1 per cent of the ----------------------
target population to one impressions costs an average of Rs. 3277/-.
----------------------
Therefore, 3,200 gross rating points would cost Rs. 10,486,400 in the
introductory year. ----------------------
How would budgeting be done during the economic slump? Time and again, ----------------------
advertising professionals have tried to prove that advertising in times of
recession has helped brands in the long run. The Harvard Business Review ----------------------
covered 200 US companies during the recession of 1923-25. During the
period of post-recession recovery, companies that spent more money on ----------------------
marketing expenses achieved higher sales. This study was not accepted by ----------------------
most, because it did not record the profit indicators. In 1999, PIMS (Profit
Impact of Marketing Strategy) conducted a special analysis of 183 UK- ----------------------
based companies in periods of recession and recovery. Of these 110 cut ad
spends, 53 chose to maintain the same level and 20 increased expenditure. ----------------------
During the period of recession, the ones that spent more made the least ----------------------
profits. However, during the period of recovery, the scroungers saw their
profit grow by 0.8 per cent, whereas the spenders saw a hefty 4.3 per cent ----------------------
points growth. This more than made up for the lower profits during the
period of recession. As for market share, the cost-cutters saw 0.6 per cent ----------------------
point growth as against a hefty 1.7 per cent appreciation for the spenders, ----------------------
during the recovery period.
----------------------
The study most conclusively proved that the ‘good’ costs that one should
focus on during recession are: ----------------------
 Marketing communications ----------------------
 Product quality enhancement ----------------------
 New product development
----------------------
Whereas the ‘bad’ costs that should be curbed during recession are:
----------------------
 Manufacturing overheads
 Administrative overheads ----------------------
 Fixed capital ----------------------
 Working capital ----------------------
If these are effectively cut, there should be enough money to spend on the
good costs. Such examples supporting advertising spends during recession ----------------------
are quite common in the annals of marketing history. ----------------------
Closer home, there are enough examples from countries that faced the Asian
----------------------
meltdown. Here, brands that spent maintained their leadership position

Notes and, in some cases, surged ahead of the competition. Some recent analyses
during our current phase of economic slowdown throw up interesting facts
---------------------- in support of advertising.
---------------------- In the sub-popular soap category, Breeze has upped its Gross Rating Points
(GRP) by 47 per cent over the year 2000 to achieve a 20 per cent value
---------------------- growth in sales. As against that, Lux has maintained its GRPs to see some
decline in sales value. Similarly, in the category of hair dyes, Godrej—the
----------------------
market leader—has grown by more than 20 per cent in value by increasing
---------------------- GRPs by a comparative amount.
These are some indicators that hard times have not dampened the desire to
----------------------
look good and feel good.
---------------------- As a matter of fact, there is an indication that despite recession, businesses
such as mortgage, insurance, snack foods, home furnishings and house
----------------------
wares, to name a few, continue to do well. Perhaps, investing, feeling safe
---------------------- and feeling good are the more basic needs during a phase when people are
generally feeling depressed?
----------------------
Periods of economic slowdown are a good time for established players
---------------------- because consumers do not want to take chances; it is also true that during
such uncertain times, there is a tendency to trade-down. Therefore,
---------------------- recession is also a great opportunity for challenger brands that spend
---------------------- heavily to communicate brand values that lead to a churn.
One such example in recent times is Akai TV from Baron. At a point when
---------------------- the color TV business was growing annually at the rate of eight per cent
---------------------- (value) and the total advertising outlay for all brands put together was Rs
830 million, Akai came up with a proposition for upgrading from black-
---------------------- and-white TVs on one hand and moving from 21” to 29” TVs on the other;
all this at never-before, attractive prices. Akai achieved some dramatic
---------------------- results in terms of market shares with an aggressive advertising budget that
---------------------- supported a hefty 16 per cent share-of-voice (SOV). Akai reached a 13 per
cent market share in less than two years. What really happened as a result
---------------------- of this brave and defiant move from Baron was that the colour TV market
saw a growth of 18 per cent and, in the following year, the category grew
---------------------- three-folds.
---------------------- It is understood that advertising expenditure varies widely from industry
to industry, calculated as a percentage of sales. Construction companies
---------------------- and those selling ship building equipment are reported to spend the least
---------------------- (between 0.2 % to half a percent of sales), while the toys and cleaners/
polishes industries put out 15% to 16% of their sales to advertising. This
---------------------- is a wide difference, but within each industry there are bound to be even
greater disparities, some companies spending more and some brands
---------------------- spending less, depending entirely on what phase of business/brand life they
---------------------- are in. Retailers typically spend about 25 of their sales on advertising, but
Wal-Mart does not advertise at all! Procter and Gamble and Colgate spends
---------------------- would well be in the region of 12-13 % of sales, while Unilever would be

in single digit (about 8%) and Nestle, perhaps, at about 6%. But these are Notes
global expenditures and country wise spends can be more or less depending
on the imperatives. However, it does suggest that at least some brands may ----------------------
be spending too much on advertising (whereas others may need to spend
even more than they do now). When you combine this observation with ----------------------
the fact that for many brands, the advertising budget is the single largest ----------------------
discretionary expense, running into tens of millions of dollars, you should
realise quickly that “fine-tuning” the advertising budget is an activity that ----------------------
is worth a fair amount of an advertising manager’s time.
----------------------
Match the following. ----------------------

i. Media mix a. Number of ads to appear in each medium ----------------------
ii. Reach b. Number of times audience is exposed to the media
iii. Frequency c. Type of media that is to be used ----------------------
iv. Scheduling d. The number of people or percentage of the target
----------------------
audience
1. Advertising research can help you decide the optimum positioning ----------------------
for your product.
----------------------
2. It is not possible to really find out how many people read a particular
advertisement. ----------------------
3. Celebrity commercials usually score above average on recall and ----------------------
below average on changing brand preference.
----------------------
Activity 2 ----------------------
----------------------
1. Conduct a survey to identify a problem regarding a popular automobile
brand. Find out the strengths and weaknesses of the brand. Make a list ----------------------
of the solutions to the problems.
----------------------
2. Pick up day’s newspaper. Choose two ads that are prominent in the
newspaper and work out the size and the cost. For this, you will have ----------------------
to call up the newspaper’s local office to find out the advertising rate
for color and black and white. ----------------------
3. Check the yellow pages of your town and identify a market research ----------------------
company in your city or town. Approach the company and have a
discussion with an official on a project that they had worked on, the ----------------------
results that they got and the duties of a market research executive. ----------------------
----------------------
----------------------

Notes 6.6 RESEARCH
---------------------- 1. Types of Research
---------------------- a) Advertising Research
---------------------- Relationship between advertising and DAGMAR:

Advertising efforts can bring results which can be measured.
----------------------
DAGMAR stands for Defining Advertising Goals for Measured Advertising
---------------------- Results.
---------------------- Advertising Research is important, as it discusses the behaviour pattern of
people, under different circumstances. It tries to –
----------------------
i) locate group behaviour,
----------------------
ii) assess group leadership tensions,
----------------------
iii) assess aggression dynamics, authority and its obedience or conformity
---------------------- to rules or systems.
---------------------- Advertising Research is used by advertising agencies and advertisers for:
----------------------  Pre-test campaign
----------------------  To evaluate media’s effectiveness

 To understand the market segment best suited for a product
----------------------
Advertising research tells advertisers about:
----------------------
 Type of creativity
----------------------
 The language, dialect that would stimulate the segment
----------------------
 Acceptance level of campaign, which can be used to determine
---------------------- frequency of insertions in the media
---------------------- Ad research, therefore, tries to correct any gaps in the selected market
segment.
----------------------
To make the best impact, research ensures an advertisement is:
----------------------  creatively acceptable
----------------------  in the right media
----------------------  with correct frequency
----------------------  for the chosen segment
---------------------- Take for instance, the Nescafe ad. Research showed that women enjoyed
coffee during break in work (at home or office). So you see the ad opening
----------------------
with a woman enjoying a mugful of steaming coffee.
----------------------

Again, you take the Fair & Handsome or Fair & Lovely Menz Active Notes
Fairness cream for men. It was revealed that there was a need in men to
have lighter, brighter complexion! Besides women, men also wanted fair ----------------------
skin and sometimes used their sister’s or wives’ creams. Hence the launch
----------------------
of fairness creams to cater to the metrosexual males, who have formed a
very important consumer segment today. An array of brands is targeting ----------------------
this segment.
----------------------
Ad research shows how to place correct ads in the right places at the
appropriate time for maximum effectiveness and efficiency. ----------------------
----------------------
b) Market Research gives information about product acceptance levels,
brand awareness levels, top of mind recall plus modifications needed in ----------------------
the products.
----------------------
A significant part of market research is advertising research. Advertising
research concentrates on the type of ad campaign, the ideal time for launch, ----------------------
limitations of products etc. ----------------------
The purpose of advertising is to change the perception and attitudes ----------------------
towards products, ideas and people.
----------------------
The research could reveal social influences, perceptions and group
behaviour. It is, in fact, a major factor in creating the ad campaign, which ----------------------
can change or reinforce attitudes, thus orient behaviour pattern. ----------------------
c) Media research is conducted to establish the suitability of a particular ----------------------
medium. For example, some ads have coupons and the responses give an
idea about readership or the correctness of media used or the appropriateness ----------------------
of the readers targeted.
----------------------
2. Research Methods
----------------------
a) Types of research
There are two types of research – ----------------------
i) Primary Research ----------------------
ii) Secondary Research ----------------------
i) Primary Research
----------------------
This involves collecting first-hand information from actual customers. The
greater the sample, the more the accuracy of the research. ----------------------
ii) Secondary Research ----------------------
This involves data that is already available. Sources of such data would ----------------------
be: a firm’s records, press, trade associations (FICCI, CII, Assochem),
government publications, research organisations (ORG-MARG, IMRB), ----------------------
trade publications, international press, international trade organisations
and associations, UN and allied bodies. ----------------------

Notes b) How is research conducted?
Testing research methods is done by Preliminary Research (PR). Here one
----------------------
uses a small sample and only validates reasons, objectives or creativity of
---------------------- campaign.
After the preliminary research, advertisers usually find out the likes/
----------------------
dislikes of customers, reasons. Research is done by survey – interviewing
---------------------- customer groups.
Ad research can also be conducted by observation – observe shoppers live,
----------------------
either personally or on camera at retail outlets.
---------------------- c) Methodolgy
---------------------- First of all, define the research objective.
---------------------- List out the problems for which answers are required.
Questions should be short and clear, in order to elicit the right response
----------------------
Emphasis on the following areas:
----------------------
 Time/money should be proportionate to objective of research.
----------------------  Research results would, at best, give indicators for decision making,
---------------------- not perfect answers.
 Going through the exact methods given by the researchers will make
---------------------- you less vulnerable to the problems.
----------------------  Be specific about what needs to be done, do not leave it to the
researchers.
----------------------
 Research budget needs careful analysis.
----------------------
Secondary research data is available from a variety of sources, such as the
---------------------- company’s own records, trade or government publications, research firms
like ORG, IMRB, A C Neilson etc.
----------------------
Secondary data is valuable information and its analysis can give the right
---------------------- direction for advertising and marketing; it could take less time and effort,
and it could prove to be useful.
----------------------
Find the right sample size. Sample selection can be done through the
---------------------- following sample formats:
----------------------  Probability sample

 Random sample
----------------------
 Stratified random sample
----------------------
 Cluster sample
----------------------  Non-probability sample
----------------------  Judgement sample
----------------------  Convenience sample

The results of an ad research can be shown geographically. Notes
Ad research can be done before a launch. It will help in media planning,
----------------------
copy testing, test marketing of product
Ad research during a campaign focusses on dealer audit, sales analysis or ----------------------
customer’s response based on the contests or reply coupons.
----------------------
After the campaign, (as per DAGMAR), research is done to assess the
effectiveness of the campaign (vis-à-vis obj). Customer panel surveys are ----------------------
also conducted.
----------------------
Data collection can be done by in-depth interviews or focus groups.
----------------------
Questions can be Quantitative–simple, straightforward or Qualitative –
emotional, sentimental or creative. Surveys, observations, experiments ----------------------
with questionnaires, checklists and plans can help in completing surveys.
----------------------
Then comes the analysis and reporting. If there is a major divergence, take
a re-look at methods and sample. ----------------------
d) Some Guidelines ----------------------
i) Ask basic questions about demographics. For income, specify range -
----------------------
Rs 5000-10,000 etc, age 18-25, 26- 35 etc
ii) Questions can have 2 answers – (Did you buy the watch yourself – yes ----------------------
or no?) ----------------------
iii) It can be multiple-choice questions (Who advised you to buy the
watch – father, mother, uncle or cousin?) ----------------------
iv) They may be like-scale questions (Tick the appropriate answer – a) ----------------------
strongly agree, b) disagree, c) neutral etc.)
----------------------
v) Differential scale (The hotel is large ——— small, modern ———
outmoded etc) ----------------------
vi) Questions on the importance of the product – extremely important, ----------------------
very important, not very important, not at all important etc.
----------------------
Intentions to buy – sure to buy, may not, will never buy
vii)Open-ended questions – (What do you think of our hotel?) ----------------------
viii) It can also be aided recalls. ----------------------

e) Research steps ----------------------
Research steps could follow the following stages outlined below:
----------------------
i) Set goals for research.
ii) Find sources of secondary information/data. ----------------------
iii) Analyse secondary data. ----------------------

iv) Plan sample for primary research. ----------------------
v) Collect data.
----------------------
vi) Prepare data analysis and report.

Notes 3. Research Management for Advertising
The universal relevance of research stems from the fact that in the universe
----------------------
of products and brands there are failures and successes. So, when a
---------------------- campaign fails or succeeds, the big question that invariably pops up is:
why?
----------------------
Research is undoubtedly a science and should be treated so. The lesson
---------------------- for all of us is contained in the fact that science is a discipline and so is
research. Which means that if you investigate something in a disciplined
---------------------- manner and are acutely observant, which is a pre-requisite for scientific
research, you will be stunned by what you will find, which may or may
----------------------
not be what you were looking for, but of immense value, far beyond your
---------------------- immediate expectations.
Research is a scientific system that moves in a manner, so disciplined that
----------------------
the results it gets for you are reliable, relevant and actionable. Which is
---------------------- why marketers, communicators and managers rely on it? In fact, if you
have set precise goals for a marketing communications program, how are
---------------------- you going to measure the success of the program if you do not research
the results? In advertising, you cannot and perhaps will not always set
----------------------
sales goals and you will definitely need research to check out if you have
---------------------- achieved the goals you set, to what degree, among which audience, with
which creative strategy, which media strategy, why so and why not with
---------------------- any other strategy, would you do the same program again, it yes why, if not
why not and so on.
----------------------
In our study, research suppliers are the final type of facilitating institution,
---------------------- made up of companies that supply research services to advertisers,
---------------------- advertising agencies and the media. They supply all kinds of research
information for advertising-planning purposes and for specific decisions,
---------------------- such as copy and media decisions.
---------------------- The first advertising researchers developed methods for assessing the
effectiveness of print advertising. From these early beginnings, research
---------------------- companies have sprung up to provide a wide variety of services to
advertisers, ranging from consumer surveys and panels to copy testing,
---------------------- audience measurement and many others.
---------------------- Research can get consumer reactions to a new product still in the conceptual
state. Here are some solutions that research can perform for you:
----------------------
 It can measure the reputation of your company among consumers,
---------------------- security analysts, government officials, newspaper editors and the
academic community.
----------------------
 Using mathematical models, research can estimate the sale of new
---------------------- products, and the advertising expenditures required to achieve
maximum profits. Research models are sufficiently reliable to tell you
----------------------
whether your product warrants the expense of test marketing. (About
---------------------- 60 per cent of new products fail in test markets.)

 Once a product is ready for the market, research can tell you how the Notes
consumers rate it compared with the products they are now buying.
If they find your product inferior, send it back to the research and ----------------------
development people.
----------------------
 Research can tell you what formulation, flavour, fragrance and colour
will appeal to most consumers. ----------------------
 Research can find out which of several package designs will sell best. ----------------------
While you are at it, find out if people can open your package. David
Ogilvy speaks of Cornelia Otis Skinner demonstrating to a big food ----------------------
company that she could not open their products without a pair of
----------------------
pliers.
 Research can help you decide the optimum positioning for your ----------------------
product. ----------------------
 Research can define your target audience. Men or women, young or
----------------------
old, rich or poor, their education, life style, media habits etc.
 It can find out what factors are most important in the purchase decision ----------------------
and what vocabulary consumers use when talking about your kind of ----------------------
product.
 Research can determine what “line extension” is likely to sell best. ----------------------
 Research can warn you when consumers show signs of finding an ----------------------
established product less desirable than it once was.
----------------------
 Research can save you time and money by ‘reading’ your competitor’s
test markets, including his cost of goods and profit margin. All the ----------------------
information is there to get, if you know where to find it. ----------------------
 Research can determine the most persuasive promise.
----------------------
Advertising which promises no benefit to the consumer does not sell.
Advertisements with headlines that promise a benefit are read by an ----------------------
average of four times more people than advertisements that do not.
----------------------
The selection of the promise is the most valuable contribution that research
can make to the advertising process. Show the consumer a number of ----------------------
promises, telling him/her that each promise is for a new product. The ----------------------
consumer is asked to rate the promises for importance and uniqueness.
----------------------
 Research can tell you which of several premiums will work best.
 Research can tell you whether your advertising communicates what ----------------------
you want it to communicate.
----------------------
 Research can tell you which of several television commercials will
sell the most. ----------------------
What is the best technique for pre-testing television commercials? Some ----------------------
commercials which score about average on recall score below average on
----------------------
their ability to change the viewer’s brand preference.

Notes Celebrity commercials, for example, usually score above average on recall
and below average on changing brand preference.
----------------------
For all these reasons, testing methods which measure your commercial’s
---------------------- ability to change brand preferences are preferred.
Research can measure the wear-out of your advertising. For five years,
----------------------
the theme of Shell’s commercials was mileage and the product. When
---------------------- attitudes finally stopped improving, the advertising was changed from
demonstrations of mileage to consumer testimonials and the upward trend
---------------------- was resumed.
---------------------- · Research can tell you how many people read your advertisements and how
many remember them.
----------------------
What do grown-ups-read in newspapers? The comic strips? The editorials?
---------------------- The weather? The stock market? The sports pages? The main news items?
The columnists?
----------------------
Gallup invented a method of measuring readership. He interviewed
---------------------- representative samples of readers, took them through the newspapers and
had them point to the things they had read. It came as a surprise to editors
---------------------- when he reported that more people read the comics then their editorials and
---------------------- that captions under photographs were read by more people than the articles.
When he repeated the same research in Britain, he got the same results.
---------------------- When Raymond Rubicam got wind of Gallup’s research, he persuaded
---------------------- him to join Young & Rubicam and apply the same method to measuring
the readership of advertisements. At about the same time, Daniel Starch
---------------------- started syndicating readership reports to agencies and advertisers, and his
successors still do so.
----------------------
 Research can settle arguments.
----------------------
But there are two vital questions that research cannot answer:
---------------------- a) Which campaign will make the biggest contribution to your brand
---------------------- over a period of years? Here you still have to rely on judgment.
b) What price should you charge for your product? This is one of the
---------------------- most important questions which confront marketers, but research
---------------------- cannot answer it.
Given sufficient training, any intelligent person can learn to conduct
---------------------- surveys, but using the results requires salesmanship of a high order.
---------------------- Surveys can produce reliable results with amazingly small samples. For
instance, to know whether the word obsolete is understood by housewives,
----------------------
you do not need an answer which will be statistically reliable within two
---------------------- percentage points. Twenty housewives will suffice. When, however, you
are looking for trends over time, it would be better to use larger samples
---------------------- to be sure that any changes are statistically significant. You must also hold
the composition of your sample and the wording of your questions rigidly
----------------------
constant.

Some interviewers find it more comfortable to answer questionnaires Notes
themselves than to accost strangers. Respondents do not always tell the
truth to interviewers. ----------------------
----------------------
Summary
----------------------
 Media has evolved dramatically. The media explosion and the resultant
media fragmentation has given rise to a new, even more dazzling set ----------------------
of acronyms. Strategic media planning it is absolutely essential for the
success. ----------------------
 Advertising has become more global. Products aspire to become brands ----------------------
that aim to go global. ----------------------
 When we talk of media, we only refer to the media that carries paid ----------------------
advertising. The greater precision with which a particular medium
can deliver an advertising message to a pre-defined target audience or ----------------------
pre-determined set/group of readers/viewers/listeners, the greater the
effectiveness of that medium. ----------------------
 Through the years, the largest media category has been newspapers. ----------------------
Outdoor and Direct mail compete for the position of third-largest medium.
----------------------
Television has increased in media share, whereas magazine share has
been either dropping or flat. Radio is on the comeback trail, with the FM ----------------------
boom. There is a slow but sure transformation of the outdoor media. A
plethora of new media has emerged, like the Internet, mobile phone etc. ----------------------
 Media earns revenue from two sources: Selling products or circulation ----------------------
(newspapers, magazines etc) and advertising or selling space or time.
----------------------
 The function of the media consists of media planning, media research and
media buying. Media planners are entrusted with the task of delivering ----------------------
the advertising message to the target audience at the right time and right
----------------------
place and through the right medium or media mix. The media buying
department selects media and negotiates the rates. ----------------------
 There are two types of media – above-the-line and below-the-line. ----------------------
There are categories of media. Each medium has its advantages and
disadvantages. ----------------------
 Media selection is the crux of the success of advertising campaign. The ----------------------
media is selected on the basis of the medium that creates better impact
and is cost efficient. ----------------------
 There are various methods of deciding advertising budget. This decision ----------------------
will be largely influenced by the objective that is set for the campaign.
----------------------
 There are different categories of research – market research, media
research, and advertising research. There are two types of research that ----------------------
can be conducted. They are Primary Research and Secondary Research.
----------------------

Notes There are six steps to be followed carrying out a research.
 Research is a scientific system that moves in a manner, so disciplined that
----------------------
the results it gets for you are reliable, relevant and actionable. That is why
---------------------- marketers, communicators and managers rely on it. There are a number of
solutions that research can deliver for marketers.
----------------------
---------------------- Keywords
---------------------- ●● Advertising Budget: The decision about how much money should be
spent for advertising during a specific time period in order to accomplish
---------------------- the specific objectives of a client. This decision also involves the allocation
---------------------- of specific amounts of the total advertising appropriation to various
media, creative approaches, times of the year, and to the production
---------------------- costs involved in preparing the advertising messages for placement in the
various media.
----------------------
●● Adaptive control budgeting: An advertising budget method whereby
---------------------- the advertiser uses test markets to examine the sales level and profitability
of advertising spending levels that are higher and lower than the spending
---------------------- level currently being used by the advertiser. The advertiser may decide to
---------------------- adapt to either a higher or lower spending level depending on test market
results.
----------------------
●● Advertising Effectiveness: An evaluation of the extent to which a
---------------------- specific advertisement or advertising campaign meets the objectives
specified by the client. There is a wide variety of approaches to evaluation,
---------------------- including inquiry tests, recall tests, and market tests. The measurement
approaches include recall of ads and advertising themes, attitudes toward
----------------------
the advertising, persuasiveness, and impact on actual sales levels.
---------------------- ●● Advertising exposure: Any opportunity for a reader, viewer, or listener
to see and/or hear an advertising message in a particular media vehicle.
----------------------
●● Media Buying: The advertising agency function that involves negotiating
---------------------- with the salespeople of various advertising media in order to obtain needed
time and space for advertising agency clients at the most favorable prices.
----------------------
●● Media Mix: The specific combination of various advertising media
---------------------- (including network television, local television, magazines, newspapers,
---------------------- specialty advertising, etc.) used by a particular advertiser and the
advertising budget to be allocated to each medium.
---------------------- ●● Media vehicle: A specific newspaper, magazine, radio station, television
---------------------- program, outdoor advertising location, edition of Yellow Pages, etc., that
can be employed to carry advertisements or commercials. For example,
---------------------- The New Yorker magazine or Business Today is a media vehicle in the
magazine category of advertising media.
----------------------
●● Media weight: A measure of the amount of advertising media used in an
---------------------- advertising campaign.

●● National Brand: A brand that is marketed throughout a national market. Notes
It contrasts with regional brand and local brand. It usually is advertised
and usually is owned by a manufacturer, though neither is necessary ----------------------
for the definition because Kmart’s brands, for example, are obviously
national, even international. ----------------------
●● Objective-and-task budgeting: An advertising budget method in which ----------------------

advertising expenditures are determined on the basis of a specific audit of
----------------------
the resources needed to achieve the specific objectives and tasks outlined
in the advertiser’s media plan. ----------------------
●● CPM (Cost per thousand): Used as a comparison tool to determine the
----------------------
efficiency of different media vehicles. Cost of a media vehicle divided by
the targeted impressions expressed in thousands. ----------------------
●● CPP (Cost per Point): CPP’s represent how much it would cost to
----------------------
deliver one target rating point, or 1% of target audience. Primarily used
in television and radio buying as a comparison and planning tool to ----------------------
determine how much media can be afforded at a given budget level.
----------------------
●● Circulation: The number of copies of a print advertising medium that
are distributed. Paid circulation refers to the number of copies that are ----------------------
purchased by readers.
----------------------
Self-Assessment Questions ----------------------
1. List the different types of media available today. ----------------------

2. List four new media that brands use today. ----------------------
3. Find out the top ten brands that advertise on TV today. What are their ----------------------
expenditures?
4. Write a comprehensive note on the importance of research. ----------------------
5. Identify the top 10 advertisers on FM radio in your city. You may have to ----------------------
pay a visit or talk to the local office.
----------------------
6. Take any newspaper and identify which advertiser has taken the maximum
space in the papers that day. ----------------------
7. Work out an advertising budget for any brand of your choice. Which ----------------------
method would you follow and why?
----------------------
8. What method do you think is used by the following brands for budgeting:
i) Vicks Vaporub ii) Maggi noodles ----------------------
9. Prepare a questionnaire for a survey you would conduct to check the ----------------------
opinion of people regarding the local corporator’s performance in your
city. This will be an opinion poll. ----------------------
----------------------
----------------------

Notes Answers to Check your Progress

1. True
----------------------
2. False
----------------------
3. True
---------------------- 1. Indian media is characterised as both urban and very localised.
---------------------- 2. The media is selected on the basis of better impact and is cost efficient.
----------------------
----------------------
i. –c
---------------------- ii. –d
---------------------- iii. –b
---------------------- iv. –a
----------------------
1. True
----------------------
2. True
---------------------- 3. True
----------------------
Suggested Reading
----------------------
----------------------
PHI
---------------------- 3. Duncon. Integrated Marketing Communications. Tata McGraw Hill
---------------------- 4. Chunawalla, S.A. Sethia, K.C. Foundations of Advertising Theory &

---------------------- 5. Chaudhury, Pran. Successful Brands.
----------------------
----------------------
----------------------
----------------------
----------------------

Global Marketing and Advertising
UNIT
7
Structure:
7.1 Introduction
7.2 Convergence and Divergence in Consumer Behaviour: Implications for
Global Advertising
7.3 Globalisation of Markets
7.4 The Global Debate and Advertising
7.5 The Global Advertising Plan
7.6 Indian Advertising Trends
7.7 Future of Advertising in Developing Countries
Summary
Keywords
Suggested Reading
Global Marketing and Advertising 187

Notes
Objectives
----------------------
----------------------
• Discuss the cultural differences in consumer behaviour.
----------------------
• Discuss globalisation of businesses.
---------------------- • Explain the evolution of global marketing.
---------------------- • Summarise how international management affects international
advertising.
----------------------
• Discuss the approaches to international advertising and list the
---------------------- special problems international advertisers face.
---------------------- • List the use and misuse of advertising and norms of judgement.
• Examine the multinational perspective.
----------------------
---------------------- 7.1 INTRODUCTION

---------------------- One aspect of globalisation is the convergence of income, media and technology,
which in turn is expected to lead to homogeneous consumer behaviour.
---------------------- This convergence thesis is being increasingly questioned. With converging
---------------------- national wealth, there still is a substantial variation of consumer behaviour
across nations, which does not seem to be disappearing. Variation is found
---------------------- in all aspects of consumer behaviour: in consumption of packaged goods in
usage and ownership of durable goods, and in media behaviour. You can get
---------------------- evidence here, of divergence of consumer behaviour rather than convergence,
---------------------- it describes the influence of culture, how cultural variables can explain the
variance of consumption, and presents the consequences for international brand
---------------------- management and for global advertising. Until recently, the impact of culture
was not well understood.
----------------------
Ignoring culture’s influence has led many companies to centralise operations
---------------------- and marketing, which, instead of increasing efficiency, has resulted in declining
---------------------- profitability. Several large multinational firms have seen their profits decline
because centralised control lacks local sensitivity and are consequently changing
---------------------- their strategies from global to local. Coca-Cola decided, in the year 2000, to
---------------------- move closer to local markets, because of declining profitability. Coca-Cola’s
CEO then said, “We kept standardising our practices, while local sensitivity
---------------------- had become absolutely essential to success.” The company’s marketing chief
---------------------- stated that the firm’s “big successes have come from markets where we read
the consumer psyche every day and adjusted the marketing model every day.”
----------------------
International marketers would like us to believe that in the ‘new Europe’ with
----------------------
----------------------

a single currency, consumers will become more similar, will increasingly eat Notes
the same food, wear jeans and watch the same television programs. Reality is
different. There are wide differences among the value systems of consumers ----------------------
in different European countries – value systems that are rooted strongly in ----------------------
history and appear to be resistant to change. These differences were expected
to disappear with the single European market in 1992 and the advent of ----------------------
cross-border media, but to date they have not. Although there is evidence of ----------------------
converging economic and demographic systems in Europe, there is no evidence
of converging value systems. On the contrary, there is evidence that consumer ----------------------
behaviour is diverging in Europe, as reflected in the consumption, ownership ----------------------
and use of many products and services.
----------------------
7.2 CONVERGENCE AND DIVERGENCE IN CONSUMER ----------------------
BEHAVIOUR: IMPLICATIONS FOR GLOBAL
ADVERTISING ----------------------
1. Convergence and Divergence ----------------------
The assumption that homogenisation of economic systems will lead to ----------------------

homogenisation of consumer behaviour is supported only by anecdotal
evidence. Empirical evidence that exists is based on macro-developmental ----------------------
data, such as the numbers of telephones, television sets or cars per 1000 ----------------------
population.
----------------------
It was found that, even with these data, only in a few cases can convergence
be documented across European countries. In many other cases there are ----------------------
large consumption differences among countries that are stable over time
or that countries are actually diverging. As people become more affluent, ----------------------
their tastes diverge.
----------------------
In sum, both convergence and divergence take place at the macro level,
but to varying degrees in different regions. If products converge across ----------------------
countries, convergence is the weakest in economically heterogeneous
----------------------
regions and strongest in the economically homogeneous regions.
2. Culture and the structure of private consumption ----------------------
Culture explains variance of consumption categories, as reflected in the ----------------------
structure of private consumption. In collectivist cultures in Europe, people
allocate a higher percentage of consumption expenditure to food than ----------------------
people do in individualist cultures. Generally, in collectivist cultures, food ----------------------
has an important social function.
Providing food and having food in the home for any guest who drops ----------------------
by is an important social value. The relationship between uncertainty ----------------------
avoidance and the need for being well groomed was confirmed by the
significant correlation between uncertainty avoidance and the percentage ----------------------
of consumption expenditures spent on clothing and footwear.
----------------------

Notes Frequently mentioned examples of similar developments in Europe are
ageing populations and similar increases in expenditures of services such
---------------------- as leisure activities. Free time is spent with family and relatives in the
cultures of the configuration of large power distance, collectivism and
---------------------- strong uncertainty avoidance, whereas in individualist cultures of small
---------------------- power distance and weak uncertainty avoidance people spend more time
on organised leisure activities.
----------------------
3. Media
---------------------- Differences in media usage are persistent because the media are a part of
countries’ culture. Radio ownership in Europe is related to individualism:
----------------------
in 1997, 48% of variance was explained by individualism.
---------------------- Over time, the significance of the relationship has become stronger. While in
collectivist cultures one radio per family is enough, in individualist cultures
----------------------
everyone wants his or her own radio. In the UK, there are 1400 radios per
---------------------- 1000 people as compared to 330 per 1000 people in Spain. Newspaper
circulation and readership are related to power distance. In 1996, 58% of
---------------------- variance of newspaper readership was explained by small power distance.
In the more egalitarian cultures, people read more newspapers. In 1991,
----------------------
52% of variance of heavy book readership was explained by individualism.
---------------------- In individualist cultures, people are more verbally oriented, while in
---------------------- collectivist cultures people are more visually oriented. In the collectivist
cultures, television is a more important medium than the press. New
---------------------- media and technology are converging at the macro level, but differences
at the micro level emerged soon after introduction. The penetration of the
---------------------- Internet (numbers of hosts per 10,000 population) converges, but the way
---------------------- the Internet is used varies.
4. Consequences for international brand management
----------------------
Several aspects of branding vary by culture. An important difference is
---------------------- the brand type used in the marketing strategy. Company brands are more
customary in Asia, while product brand is a more Western, individualist
---------------------- phenomenon. Differentiation and positioning strategies are Western
---------------------- phenomena and product brands are developed for positioning purposes,
both against the competition and against other brands of the company’s
---------------------- brand portfolio.
---------------------- In Asia, the purpose of marketing communications is to build relationships
and trust between companies and consumers. Developing strong company
---------------------- brands is a better strategy than developing a portfolio of competitive
product brands.
----------------------
Increasingly, brands are made into personalities, analogous to human
---------------------- personalities. The study of personality, however, has developed within a
European–American cultural framework, with individualist assumptions of
---------------------- a unique personality that exists separate from its environment. In collectivist
---------------------- psychology, the ego is inseparable from its social context, the family or the
group to which people belong and that define their identity. A survey by
Reader’s Digest asked people in 18 different countries in Europe which brands Notes
they trust most from among 18 different categories. Other questions focussed
on personal traits and the probability of buying unknown brands. Analysis ----------------------
of the results demonstrates that in individualist cultures, people are more
likely to buy unknown brands than in collectivist cultures. The brand concept ----------------------
may be less relevant to members of collectivist cultures than to members of
----------------------
individualist cultures, where the brand functions as a unique personality. The
personal traits measured in the survey also vary by culture. ----------------------
A conclusion for international brand management should be that brand
----------------------
personalities developed in one culture are not necessarily relevant for other
cultures. The extension of brand values of one culture to another, where ----------------------
they do not fit will not make effective advertising.
----------------------
5. Unexpected effects of global advertising
In the fast-moving consumer goods (FMCG) category, only three have ----------------------
become relatively homogeneous: household cleaning products, soft drinks
----------------------
and cigarettes. Initially, the use of these products in Europe converged with
converging incomes, but this stopped at a certain level. ----------------------
In particular, the soft drink and cigarette categories have long been
----------------------
dominated by Anglo-American global brands (e.g. Coca-Cola, Pepsi-Cola,
Fanta, Seven-Up, Sprite, Schweppes; Marlboro, Camel, Rothmans). These ----------------------
early global brands may have caused convergence of their product category,
because they were the first to apply advanced marketing techniques. ----------------------
With increased global competition, the owners of these brands began to
standardise their marketing and advertising for increased efficiency. Global ----------------------
advertising, however, does not appeal to universal values because there are ----------------------
no universal values.
Since many global advertising campaigns are developed in London or ----------------------
New York, they generally include Anglo-American values. For decades, ----------------------
the global campaigns for soft drinks and cigarettes have reflected Anglo-
American values such as masculinity, adventure, status and success, which ----------------------
are not as appealing to other cultures. This is reflected in the differences in
sales volume across countries. ----------------------
Consumer motives and needs are not the same across countries; hence, the ----------------------
effect of global advertising is not the same in all countries. There is waste
in countries where consumer values are different from the values in global ----------------------
advertising campaigns. ----------------------
The idea that there are universal values that can be used for global
----------------------
advertising is one of the global marketing myths of past decades.
Another myth of global marketing is the assumed existence of global ----------------------
communities such as global teenagers who, across countries, would have
----------------------
more in common with each other than with people of their own country.
Systematically the Danes are happier than the Belgians and the Portuguese. ----------------------
Surveys among young people show the same pattern. Recently a survey
showed that Indians were surveyed to be the ‘happiest’ people. ----------------------

Notes Some of the myths surrounding global marketing and advertising are
convergence of consumer behaviour, the existence of universal values
---------------------- and global communities with similar values. Although for some durable
products and new technologies, at the macro level (ownership of products
---------------------- per 1000 people), countries converge, it is the case that countries tend
---------------------- to diverge with respect to how people use these products. Over time,
consumption differences between countries are stable or they increase.
---------------------- These differences can be explained by culture.
---------------------- The persistence of cultural variety of countries worldwide as well as in
Europe implies that a successful advertising approach in one country does
---------------------- not automatically mean similar success in other countries.
---------------------- 6. Consumer behaviour
Take a look at marketing and consumer behaviour since the 1920s,
----------------------
when widespread use of electricity and economic prosperity gave rise to
---------------------- marketing in earnest.
---------------------- There was growing discontent with promises made vs. product delivered,
by the 1950s; the current consumerism movement was crystallised in 1962
---------------------- with the Consumers’ Bill of Rights. When consumers demanded value in
their purchases, companies increasingly turned to Japanese companies to
---------------------- study their methods of manufacturing, only to discover that the Japanese
---------------------- had raised to an art form the same principles of continuous process
improvement and high quality that American manufacturers had eschewed
---------------------- after World War II. It was TQM, and they called it a ‘Japanese’ technique.
---------------------- In recent decades, Asia has been home to many of the world’s most dynamic
markets. The region now represents 25 per cent of the world economy and
---------------------- about 50 per cent of the world’s population. It is for this reason that few
international companies can afford to ignore Asia as a marker to primary
---------------------- importance, despite the crisis that hit parts of the region in 1997/98.
---------------------- In the light of the importance of Asia as a market, there is a surprising paucity
of work that establishes a marking theory specific to Asia. In the case of
---------------------- consumer behaviour, few would argue with the view that Asian consumers
---------------------- do appear to be distinctively different form Western consumers. We can
conclude that a consumer behaviour theory specific to Asian consumers is
---------------------- a necessity for any firm seeking to market products successfully to Asian
consumers.
----------------------
To argue for a distinct consumer behaviour theory to explain the behaviour
---------------------- of Asian consumers puts us in the camp of the “cultural meaning” theorists.
There are, in fact, a variety of perspectives concerning cross-cultural
----------------------
consumer behaviour theory.
---------------------- The four main approaches to cross-cultural consumer behaviour theory are –
---------------------- 1) the global perspective,
---------------------- 2) the “imported” perspective,

3) the ethnic consumption perspective, and Notes
4) the cultural meaning perspective.
----------------------
The global perspective is rarely used in its purest form today. It continues
to be applied in situations where consumers are considered “global” but is ----------------------
most appropriate in the case of high-technology products that tend to lack
----------------------
a predefined culturally based meaning for consumers. As many companies
face pressure for rationalising costs, they seek to standardise processes such ----------------------
as manufacturing, marketing, marketing and distribution. There has thus
been renewed interest in creating “global” products. Ford’s introduction ----------------------
of the Mondeo in European markets, the platform of which is identical to
----------------------
the Contour and Mystique, is one such example. There is wide agreement,
however, that for many product/service categories consumption is distinctly ----------------------
“culture bound”, thus preventing the existence of a “global” consumer.
----------------------
In the imported perspective, consumers are considered to vary in the types
of product that they prefer; but they generally conform to the same patterns ----------------------
of behaviour.
----------------------
Thus consumer behaviour theories that have been developed and established
in the West are considered applicable to other markets, but products are ----------------------
modified to suit the local marketing context.
----------------------
The ethnic consumption perspective takes into account the effect of culture
on consumer behaviour. Consumers of different cultures are considered ----------------------
to behave differently. However, there are certain products that are global
in their appeal. Consumers can, therefore, be global in their preferences. ----------------------
At the same time, their national consumer behaviour can be influenced ----------------------
by the importation and diffusion of immigrants culturally based values,
behaviours and products. ----------------------
The cultural meaning perspective holds that consumers are cross-culturally ----------------------
different in both their preferences for products and their behaviour. An
individual’s motivation to consume is due not merely to the product’s ----------------------
specific attributes, but also to the culturally based meanings that are
embodied in the product and the consumption act. Although a product may ----------------------
sell in USA as well as in Japan, the reasons for the product’s popularity ----------------------
may be completely different because of the difference in cultural context.
A Prada handbag may be bought to set the American individual apart as ----------------------
wealthy and successful. The same handbag may be bought by the Japanese
consumer to conform with her peer group rather than to set herself apart. ----------------------
Understanding such meanings in each cultural context can greatly aid ----------------------
marketers in communicating appropriate messages to the consumer in an
effective manner. ----------------------
Since this theoretical approach rests on the importance of culture, we must ----------------------
first establish the influence of culture on consumer behaviour. The concept
of “culture” is vast and therefore difficult to define concretely. Of the ----------------------
many possibilities, two definitions are particularly suited to the meaning of
----------------------
“culture” in the context.

Notes Culture is the configuration of learned behaviour and results of behaviour
whose component elements are shared and transmitted by the members of
---------------------- a particular society. (Linton, 1945)
---------------------- Culture is transmitted and created content and patterns of values, ideas,
and other symbolic-meaningful systems as factors in the shaping of human
---------------------- behaviour and the artifacts produced through behaviour. (Krocber and
Parsons 1958).
----------------------
Together these definitions stress two important aspects of culture:
---------------------- 1) It is shared by the members of a given society
---------------------- 2) It is, by its very nature, dynamic and transmissible.
Cultural differences strongly influence consumer behaviour. In the west, an
----------------------
effective brand name will be short, distinctive, and memorable, indicative
---------------------- of the product’s functions. In Asia, which currently accounts for a quarter
of the world economy and half of the world’s population, however,
---------------------- a strong belief in luck and fate means that additional qualities, such as
whether the characters which make up a product name are “lucky” ones,
----------------------
have a significant effect on brand attitude. Successful sales and marketing
---------------------- strategies in Asia must be rooted in an understanding of the cultural
differences which affect Asian consumers’ buying patterns.
----------------------
Consumer behaviour in Asia will be indispensable for those seeking to
---------------------- adapt their marketing approach in Asia.
---------------------- 7.3 GLOBALISATION OF MARKETS

---------------------- Consumers worldwide are not the same, and the differences in consumer
---------------------- behaviour between countries are increasing. Because all aspects of consumer
behaviour are culture-bound and not subject merely to environmental factors but
---------------------- integrated in all of human behaviour, there is an increased need to identify and
understand this integration and its impact on global marketing and advertising.
----------------------
1. P&G: Leader in global branding
---------------------- At some time or the other, you must have used a Procter & Gamble (P&G)
product. You probably have a number of P&G products in your home right
----------------------
now. With the dominance of P&G brands, it is likely that you wash your
---------------------- clothes with Tide or Cheer, brush your teeth with Crest, drink Folgers
coffee, eat Pringles chips, and clean your dishes with Dawn or Cascade.
----------------------
Although we may think of P&G as a US company, it currently markets
---------------------- more than 250 products in more than 140 different countries.
It is not surprising to learn that P&G has a fully developed global branding
----------------------
strategy in place. Global Marketing Officer Jim Stengel, cogently expressed
---------------------- the philosophy of this global strategy (via satellite) at a conference for the
International Advertising Association in Beirut: “Our goal is global brand
---------------------- leadership in the categories in which we choose to compete. Sometimes we
can do that with one brand name and brand positioning, and sometimes it
----------------------
takes several brands with different positioning.”
There are two basic approaches to international marketing and advertising. Notes
Companies can either try to standardise their products (and, to a degree,
their advertising) to work in many markets or companies can tailor their ----------------------
products and advertising to local markets. The first approach is easier to
----------------------
manage, but runs the risk of not effectively reaching consumers. The second
approach targets consumers more specifically, but is more expensive and ----------------------
complicated to implement.
----------------------
The P&G approach towards global branding is flexible enough to
accommodate global strategies at various points on this spectrum. For ----------------------
example, on one end of the spectrum, P&G’s global laundry business
markets several brands including Ariel, Cheer, Bold, Yes, Gain, and Tide ----------------------
because consumer laundry habits are highly varied from country to country ----------------------
and region to region. On the other end of the spectrum, the company
markets its Pampers brand in most of the countries in which there are local ----------------------
variations.
----------------------
Mr. Stengel believes that the right global branding decision must be made
on a case-by-case basis. He points to the Safeguard brand as a past example ----------------------
of how P&G went too far in standardising its global branding strategy. ----------------------
Named Escudo in Mexico for many years, P&G changed the name to
Safeguard and watched sales and market share drop dramatically. Sales ----------------------
returned when P&G reinstated the Escudo name.
----------------------
P&G’s marketing organisation is very savvy about global marketing. The
global branding challenges P&G faces are becoming more common in ----------------------
business as world markets open up.
----------------------
2. The Evolution of Global Marketing
----------------------
In most countries markets are composed of local, regional, and international
brands. A local brand is one marketed in a single country. A regional brand is ----------------------
one marketed throughout a region (for example, North America or Europe).
An international brand is available virtually everywhere in the world. ----------------------
Marketing emerged when the emphasis changed from importing products ----------------------
(tea, spices, silk, gold, and silver) to exporting products. Advertising was
used to introduce, explain and sell the benefits of a product – especially a ----------------------
branded product – in markets outside the home country. The current patterns ----------------------
of international expansion emerged largely in the twentieth century.
Advertising that promotes the same product in several countries is known ----------------------
as international advertising. It did not appear in any organised manner ----------------------
until the late nineteenth century.
Although there are thousands of companies that view themselves as selling ----------------------
a global brand, this designation requires a lot more than self-proclamation. ----------------------
A report by a market research firm A.C. Nielsen, entitled “Researching the
----------------------
Billion Dollar Mark: A Review of Today’s Global Brand,” cites only 43
brands that qualify as global. ----------------------

Notes To qualify, a brand needs to have “more than $1 billion in annual sales,
with at least 5% coming outside the company’s home region.” Coca-Cola’s,
---------------------- Philip Morris’, Procter & Gamble’s, and WalMart’s brands lead the way.
Several companies did not make the list because they used different brand
---------------------- labels in different countries.
----------------------
----------------------
----------------------
1. Internationally the brand personalities developed in one culture are
---------------------- also relevant for other cultures.
---------------------- 2. Cultural differences strongly influence consumer behavior.

1. Globalisation has resulted in the convergence of income, media and
---------------------- ________.
---------------------- 2. Globalisation is expected to lead to ___________ consumer behaviour.
---------------------- 3. Advertising that promotes the same product in several countries is
known as _________ advertising.
----------------------
---------------------- Activity 1
----------------------
1. Check the website of Coca Cola and find out the different markets that
---------------------- Coca Cola is catering to around the world. List them.
---------------------- 2. List some Asian brands that are global today.
----------------------
7.4 THE GLOBAL DEBATE AND ADVERTISING
----------------------
The two basic approaches to global advertising are market oriented or
---------------------- culture oriented. Ultimately, such campaigns should be centrally controlled and
---------------------- centrally conceived. There should also be local applications and approval.
The outcome of this debate have been three main schools of thought on
---------------------- advertising in another country:
----------------------  Standardisation. This school of thought contends that differences between
countries are more a matter of degree than directions; therefore, advertisers
----------------------
must instead focus on the similarities of consumers around the world.
----------------------  Localisation (adaptation). This school of thought argues that advertisers
must consider differences among countries, including culture, stage
----------------------
of economic and industrial development and stage of life cycle, media
---------------------- availability, research availability, and legal restrictions.
----------------------  Contingency (moderate). This school of thought reasons that neither

complete standardisation nor complete adaptation is necessary and that a Notes
combination of the evaluation of factors can affect the effectiveness of
such advertising. ----------------------
Note that most companies use the middle-of-the-road approach or lean ----------------------
toward localisation. Starbucks uses localisation. Tea is offered in stores in the
Far East, stronger coffees in Europe, and gourmet coffees in the United States. ----------------------
Accordingly, it has standardised its product name, logo, and packaging.
----------------------
So which is the right approach? In actuality, no business has a completely
global campaign. Even companies committed to globalisation, such as Toyota ----------------------
and McDonald’s, must translate many of their ads into other languages and
----------------------
conform to local standards and regulations. In contrast, a completely localised
campaign could lead to chaos and inefficiency. ----------------------
The reality of global advertising suggests that the contingency approach is
----------------------
best. Marketers are restricted by language, regulations, and a lack of completely
global media. Still, the trend toward global markets is inescapable. ----------------------
Starbucks follows a localisation strategy by tailoring its offerings in ----------------------
different countries.
Reasons to go global or stay local ----------------------
Marketing begins with a local brand, expands to a regional brand, and ----------------------
finally, goes global. Advertising follows the same path.
----------------------
The strategic approach towards going global can be standardisation, adaptation,
or contingency. Likewise, three factors are considered: language, budget, and ----------------------
strategy.
----------------------
a) Reasons for using a Standardisation strategy
----------------------
 Standardisation will lead to savings through economies of scale
(advertising production, planning and control). ----------------------
 Standardisation ensures that advertising messages of a product are ----------------------
complementary and reinforcing.
 The company maintains control over the image projected by advertising ----------------------
for the brand. ----------------------
 Global media create opportunities for global marketing.
----------------------
 Converging buyer wants and needs means that buyers everywhere
will increasingly want the same products. ----------------------
 There is little or no competition in many foreign markets. ----------------------
 Graphic and visual advertising approaches can be used to overcome ----------------------
cultural differences.
b) Reasons for using a local strategy ----------------------
 A better fit with local markets means the advertiser is less likely to ----------------------
overlook local variations that affect buyer behaviour.
----------------------

Notes  As a general rule, the fewer the people who have to approve decisions,
the faster they can be made.
----------------------
 Getting local managers and employees involved and motivated is
---------------------- much easier if they have a say in the advertising decisions.
 Any cost reductions resulting from globalisation are often offset by
----------------------
mistargeted ads.
----------------------  The chances of cultural blunders decrease.
----------------------  Strategically sound advertising is more likely to be successful.
---------------------- c) International management

Regardless of the company’s form or style of management, the shift from
---------------------- national to international management requires new tools for advertisers,
---------------------- including one language (usually English), one control mechanism (the
budget), and one strategic plan (the marketing strategy).
----------------------
d) The language
---------------------- Language affects the creation of the advertising. English normally requires
the least space in printed material or air time.
----------------------
The range of words and the ease with which English adopts words
---------------------- from other languages often makes it more economical than many other
---------------------- languages. This can create a major problem. Copy in French or Spanish
requires one-third more space than English. However, English does not
---------------------- have the subtlety of other languages such as Greek, Chinese or French. The
languages have different words for situations and emotions, which do not
---------------------- translate precisely into English.
---------------------- Headlines in any language often involve a play on words and themes that
are relevant to one country, or slang. Because these verbal techniques
---------------------- often do not cross borders well, copywriters must remove them from
---------------------- the advertising, unless the meaning or intent can be recreated in other
languages.
---------------------- For this reason, international campaigns are not translated. Instead, a
---------------------- copywriter usually rewrites them in the second language. Some languages
simply do not have words equivalent to English expressions.
----------------------
The most reasonable solution to the language problem is to use bilingual
---------------------- copywriters who understand the full meaning of the English text and can
capture the essence of the message in the second language. It takes a brave
---------------------- and trusting international creative director to approve copy that he does not
understand but is assured is right. A back translation of the ad copy from
----------------------
the foreign language into the domestic one is always a good idea, but it
---------------------- generally never conveys a complete cultural interpretation.
----------------------
----------------------

7.5 THE GLOBAL ADVERTISING PLAN Notes
International management affects international advertising in a number of ways, ----------------------
including how it handles language barriers, advertising planning and selecting
an agency. ----------------------
The strategic advertising plan is usually prepared in conjunction with the ----------------------
budget. Basically, the plan outlines the marketing strategy, while the budget
allocates the funds. ----------------------
1. Major approaches to strategic advertising ----------------------

Two major approaches to strategic advertising in foreign cultures differ in ----------------------
their orientation: one is market oriented and the other is culture oriented.
You will read about these contrasting approaches later. ----------------------
a) The Market Analysis model ----------------------
This model is based on data and observation from several countries.
----------------------
It recognises the existence of local, regional and international brands in
almost every product category. ----------------------
The two major variables are the share of market of brands within a category ----------------------
and the size of the category.
----------------------
For example, the brand’s percentage share of the category market might
vary substantially in four countries. ----------------------
Cola-flavored soft drinks are not nearly as dominant in Germany as they ----------------------
are in the United States.
----------------------
To generate sales in Germany, a soft drink company would have to develop
orange and lemon-lime entries. McDonald’s serves beer in Germany, wine ----------------------
in France, a local fruit-flavored shake in Singapore and Malaysia, and even
a Portuguese sausage in Hawaii, in addition to the traditional Big Macs, ----------------------
fish sandwiches and French fries, to cater to local tastes.
----------------------
b) The Culture-Oriented model
----------------------
This model of international advertising emphasises the cultural differences
among peoples and nations. This school of thought recognises that people ----------------------
worldwide share certain needs, but it also stresses the fact that these needs
are met differently from culture to culture. ----------------------
Although the same emotions are basic to all humanity, the degree to which ----------------------
these emotions are expressed publicly varies.
----------------------
The camaraderie typical in an Australian business office would be
unthinkable in Japan. The informal, first-name relationships common in ----------------------
North America are frowned upon in Germany, where co-workers often do
----------------------
not use first names. Likewise, the ways in which we categorise information
and the values we attach to people, places, and things depend on the setting ----------------------
in which we have been raised.
----------------------
How do cultural differences relate to advertising?

Notes The differences between Japanese and English are instructive. English
words have clearly defined meanings that are not highly dependent on the
---------------------- words surrounding them. In Japanese, however, a word can have multiple
meanings. Listeners or readers will not understand the exact meaning of a
---------------------- word unless they clearly understand the preceding or following sentences,
---------------------- that is, the context in which the word is used.
Our tendency is to assume that, in the case of the United States, cultural
----------------------
differences are most likely between countries that are separated by
---------------------- thousands of miles. By that logic it would be surprising to identify different
values between the United States and Canada. But, there are differences.
---------------------- Canadians are more conservative with respect to health and social issues.
---------------------- For example as shown on their cigarette packaging, Canada requires
tobacco companies to put graphic health warnings on packages. Pictures
---------------------- of rotting gums and diseased lungs are common, along with the tagline:
“Tobacco Use Can Make You Impotent.” In the United States, the warning
----------------------
is much less dramatic and has remained the same for several years.
---------------------- Agencies have to develop techniques to advertise brands that are marketed
around the world. Some agencies exercise tight control, while others allow
----------------------
more local autonomy. All of these techniques fall into three groups: tight
---------------------- central international control, centralised resources with moderate control,
and matching the client.
----------------------
Henkel, a large German manufacturer of household and cleaning products,
---------------------- provides an example of how centralised management with similar products
works. Henkel’s international strategy was designed to accomplish three
---------------------- goals:
---------------------- i) eliminate duplication of effort among its national companies,
---------------------- ii) provide a central direction for new products, and
iii) achieve efficiency in advertising production and impact.
----------------------
It included these steps:
----------------------
1. Identifying how a product fulfills a need or functions beneficially.
---------------------- 2. Determining the common need or product benefit for consumers in
---------------------- Europe or a larger area.
3. Assigning that specific need or benefit to one product with one brand
---------------------- name.
---------------------- 4. Assigning that brand to one brand manager and one advertising agency
to develop and market.
----------------------
5. Disallowing the use of the brand’s benefit, name or creative campaign
---------------------- for any other brand in the company.
---------------------- The organisational structure for managing international advertising
depends heavily on whether the company is following standardisation or
---------------------- localisation marketing and advertising strategy. For highly standardised

advertising efforts, there may be one advertising plan for each product, Notes
regardless of the number of markets entered. For a product using localised
advertising, there probably will be a separate advertising plan for each ----------------------
foreign market.
----------------------
2. Selecting an agency
----------------------
The choice of an advertising agency for international advertising is
influenced not only by many of the same considerations as the choice of a ----------------------
domestic agency, but also by the standardised versus local decision.
----------------------
If a company wants to take a highly standardised approach in international
markets, it is likely to favour an international agency that can handle ----------------------
advertising for the product in both the domestic and the international
markets. ----------------------
A localised advertising effort, by contrast, favours use of advertising ----------------------
agencies in many countries for both planning and implementation of the
advertising. Agencies must make adjustments when they go global. ----------------------
3. Approaches to the international advertising campaign ----------------------

Although advertising campaigns can be created for worldwide exposure, ----------------------
the advertising is intended to persuade a reader or listeners to do something
(buy, vote, phone, and order). ----------------------
Some advertisers develop tightly controlled global campaigns with ----------------------
minimum adaptation for local markets. Others develop local campaigns in
every major market. Most companies are somewhere in the middle, with ----------------------
a global campaign and a standardised strategy that is partially adapted as
----------------------
needed.
Special problems that international advertisers must face include laws/ ----------------------
regulations, customs/cultures, time inertia, resistance, rejection and
----------------------
politics.
4. Centrally controlled campaigns ----------------------
How are the campaigns, which can have nearly global application, created? ----------------------
International advertising campaigns have two basic starting points:
----------------------
1) Success in one country, and
----------------------
2) A centrally conceived strategy, a need, a new product, or a directive.
In the first instance, a successful advertising campaign, conceived for ----------------------
national application is modified for use in other countries. “Impulse,” the
----------------------
body spray, started in South Africa with a campaign showing a woman
being pleasantly surprised when a stranger hands her flowers. That strategic ----------------------
idea has been used all over the globe, but in most markets the people and
the setting are localised. ----------------------
Wrigley, Marlboro, IBM, Waterman, Seiko, Philips, Procter & Gamble, ----------------------
Ford, Hasbro and many other companies have taken successful campaigns
from one country and transplanted them around the world. A strong ----------------------

Notes musical theme, especially typical of Coke and Pepsi, makes the transfer
even smoother because music is an international language.
----------------------
5. Centrally conceived campaigns
---------------------- The second starting point, a centrally conceived campaign, was pioneered
by Coca-Cola and is now used increasingly in global strategies. Although
----------------------
the concept is simple, the application is difficult. A work team, task force,
---------------------- or action group (the names vary) assembles from around the world to
present, debate, modify if necessary, and agree on a basic strategy for the
---------------------- foundation of the campaign. Some circumstances require that a central
strategy be imposed, even if a few countries object.
----------------------
Colgate faced a problem before it standardised its red package and
---------------------- typography. Distributors in Asia bought shipments from the United States
and Europe, depending on currency rates and shipping dates, so Asian
----------------------
consumers saw different packages for the same product, which led to
---------------------- consumer confusion.
---------------------- A centralised campaign could include television, radio, newspapers,

magazines, cinema, the Web, outdoor advertising, and collateral extensions
---------------------- (brochures, mailings, counter cards, in-store posters, handouts, take-one
folders, or whatever is appropriate). The team can stay together to finish the
---------------------- work or it can ask the writer or campaign developer to finish or supervise
---------------------- the completion of the entire project.
6. Variations on central campaigns
----------------------
Variations of the centrally conceived campaign also exist. For example,
---------------------- Xerox may handle its European creative development by asking the
European offices of Young & Rubicam to develop a campaign for a
---------------------- specific product. The office that develops the approved campaign would be
---------------------- designated the lead agency. This agency office would then develop all the
necessary elements of the campaign, determine the relationship of those
---------------------- elements to one another, shoot the photography or supervise the artwork,
and prepare a standards manual for use in other countries. This manual
---------------------- would include examples of layouts and broadcast spots (especially the
---------------------- treatment of the logo or the product) and design standards for all elements.
Individual offices could either order the elements from the lead agency or
----------------------
produce them locally if that were less expensive.
---------------------- Because photography, artwork, television production and color printing
are very costly, developing these items in one location and then overlaying
----------------------
new copy or re-recording the voice track in the local language saves money;
---------------------- but advertisers must appear local.
---------------------- 7. Local application and approval

Assuming that the ad campaign has been approved centrally, its execution
---------------------- must be adapted to suit the local market. Every ad in every country cannot
---------------------- come back to regional and world headquarters for approval.

Within a campaign framework, most companies allow a degree of local Notes
autonomy. Some companies want to approve only pattern ads (usually
the two or three ads that introduce the campaign) and commercials and ----------------------
allow local approval of succeeding executions. Others want to approve
only television commercials and allow local freedom for other media. If ----------------------
headquarters develops common material (such as ad slicks or broadcast ----------------------
footage), it simplifies the approval process.
----------------------
In any case, free-flowing communication is necessary. Today, companies
must balance the globalisation of concepts and strategy with the localisation ----------------------
of application.
----------------------
8. Determining global advertising objectives
Just as every domestic advertising plan begins with a statement of ----------------------
objectives, global advertising plans originate with a similar statement.
----------------------
Global plans differ from their domestic counterparts in several key
areas. These differences are largely responsible for limiting most global ----------------------
marketing objectives to awareness and recall, two effective yet easily
attainable marketing measures. ----------------------
Listed below are some factors that advertisers must take into consideration ----------------------
when developing objectives:
----------------------
1. There are often fewer customers in each foreign market; however,
marketing materials must still be translated in a way that conscientiously ----------------------
addresses their market’s culture and mores.
----------------------
2. Business factors such as currency exchange rates and changes in
tariffs influence the impact of an organisation in any given market and ----------------------
therefore determine budgets.
----------------------
3. Variations in the availability and cost of media and the effectiveness
of certain types of media in some markets are a major consideration. ----------------------
4. A global company cannot always obtain services from the best ----------------------
local advertising people; this creates a potential advantage for local
competitors. ----------------------
5. The often-smaller budgets allocated to global markets may hinder the ----------------------
achievement of long-term marketing effectiveness.
----------------------
6. The availability of accurate and useful market research information is
also often quite limited. ----------------------
9. Positioning the global product ----------------------
Research must be conducted to identify the problems and opportunities
----------------------
facing the product in each of the international markets to be entered. The
normal approach of conducting consumer, product, and market analyses ----------------------
works well for international analysis. Emphasis should be placed on
identifying local market differences to which the advertising programs ----------------------
must adjust.
----------------------

Notes The analysis portion of the advertising plan develops the information needed
for positioning the product in the foreign markets. Particularly important is
---------------------- a good understanding of the motives of the consumer in each market. This
is almost impossible to develop without locally based consumer research.
----------------------
If analysis reveals that the consumer buying behaviour and the competitive
---------------------- environment are the same across international markets, it may be possible
to use a standardised positioning throughout. In exploring the international
----------------------
marketing opportunity for Gatorade, Quaker discovered that the active,
---------------------- outdoor lifestyle that created demand for sports beverages was an
international, not a domestic phenomenon.
----------------------
A consumer research suggested that the perception of a store such as
---------------------- Starbucks varied from market to market. In Japan, Starbucks was positioned
as a daytime meeting place for business people and an evening place for
---------------------- socialising. The position of its Hawaiian stores was a place to relax, any
time of the day or night.
----------------------
10. Setting the budget
----------------------
All the budgeting techniques discussed have possible application in
---------------------- foreign markets. However, several problems may affect this decision. Most
notably, the exchange rate from country to country may affect not only the
---------------------- amount of money spent in a particular market, but also the timing of the
---------------------- expenditures. The cost of television time in Tokyo is approximately twice
that in the US. Japanese TV time is wholesaled several times during the
---------------------- year, instead of being sold during an upfront market every spring.
---------------------- Another factor is the budgetary tradition in a particular market. In the United
States, the use of float is common, that is, bills do not have to be paid for
---------------------- 30, 60, or 90 days. In Denmark, everything is strictly cash. Likewise, the
notion of barter, a common payment plan in many companies, is almost
---------------------- expected in Italy.
---------------------- When a company is preparing a single advertising plan for multiple markets,
many use an objective-task budgeting approach that makes advertising for
---------------------- each foreign market a separate objective with its own budget. (Remember
---------------------- that this approach looks at the objectives for each activity and determines
the cost of accomplishing each objective.) This technique adds flexibility
---------------------- to localise campaigns as needed. Alternatively, it can use other budgeting
methods such as percentage-of-sales or any other competitive method.
----------------------
11. Selecting media for international campaigns
----------------------
Advertising practitioners can debate global theories of advertising, but one
---------------------- fact is inescapable: Global media do not currently exist. Television can
transmit the Olympics around the globe, but no one network controls this
---------------------- global transmission. An advertiser seeking global exposure must deal with
different networks in different countries.
----------------------
----------------------

12. Satellite transmission and the Web Notes
Satellite transmission now places advertising into many homes, but its
----------------------
availability is not universal because of the footprint (coverage area of the
satellite), the technical limitations and the regulations of transmission set ----------------------
by various governments. Satellites beam signals to more than one country
in Europe, the Asian subcontinent, North America, and the Pacific, but they ----------------------
are regional, not global, in coverage.
----------------------
Despite its regional limitation, satellite transmission is still an enormous
factor in the changing face of international advertising. ----------------------
The reach of satellite stations is based on a foundation of shared language, ----------------------
which is making national borders increasingly irrelevant in international
markets. Star TV, with an audience spanning 38 countries including Egypt, ----------------------
India, Japan, Indonesia and Russia’s Asian provinces. Star TV was the
----------------------
first to reach this market of an estimated 2.7 billion people. It was closely
followed by CNN and ESPN. Sky Channel, a U.K. based network, offers ----------------------
satellite service to most of Europe, giving advertisers the opportunity to
deliver a unified message across the Continent. ----------------------
The expansion of satellite television makes it possible to distribute a ----------------------
standardised message to extensive audiences, the potential of which
presents international advertisers with new and unique challenges and ----------------------
powerfully enticing rewards. ----------------------
The Web is an international marketing and advertising medium but it faces
access, legal, linguistic, currency and technological barriers. ----------------------
Firstly, not everyone around the globe has the access or ability to use the ----------------------
Internet, but the number of Internet users is growing exponentially. The
Internet audience is growing faster internationally than it is in the United ----------------------
States. ----------------------
Secondly, laws governing advertising and sales promotion differ from
----------------------
country to country. Differences in privacy laws between Europe and the
United States are expected to force American companies to change the way ----------------------
they collect and share consumer information.
----------------------
Language is another factor. Although English is the dominant language on
the Internet, some advertisers who want to provide different websites for ----------------------
different countries have trouble ensuring consistency across all sites. The
linguistic problem is evident when websites are in Japanese or Chinese, ----------------------
languages from high-context cultures, and in English, a language from a
----------------------
low-context culture. English has a few variations of the word “yes,” for
instance, while high context cultures may have thousands of variations. ----------------------
Ensuring precise, accurate communication in these situations is tough.
----------------------
Another issue is the exchange rates for currency. Companies must decide
whether to offer prices in their own currency or in the local currency. ----------------------
For example, one Canadian shopper reported that books on a Canadian
website were cheaper than the same books on Amazon.com. In addition, ----------------------

Notes some companies make different offers available in different countries.
However, savvy Internet customers can see how pricing differs from
---------------------- country to country. If they find differences, they may become frustrated or
disenchanted.
----------------------
A final point to keep in mind when appealing to the international audiences
---------------------- is the technological differences among the worldwide Internet audiences.
---------------------- Users in some countries have to pay per-minute charges and therefore want
to get on and off quickly, which precludes sophisticated graphics that take
---------------------- a long time to load. In other countries, users have access to fast lines and
may expect more sophisticated Internet programming as a result.
----------------------
A company must understand the dizzying number of rules regulations and
----------------------
conflicting requirements. Conducting international business on the Internet
---------------------- can be a barrier to entering the global electronic market. While Internet
industries are lobbying global market participants to establish standardised
---------------------- regulations, it is widely believed that these regulations will bring additional
---------------------- burdens such as taxes, tariffs and conflicting disclosure or competition
requirements.
----------------------
Therefore, many international organisations are increasingly looking to the
---------------------- Internet for advertising non-direct sales.
---------------------- 13. Execution of international campaigns
---------------------- Media planning for an international campaign follows the same principles
as those used for reaching a national target audience.
----------------------
The execution, however, is more complex.
---------------------- International campaigns are not always centrally funded. The global
---------------------- corporation typically has operating companies locally registered in most
major countries. Advertising might have to be funded through these local
---------------------- entities for maximum tax benefits or to meet local laws of origination.
---------------------- The media planner might only be able to establish the media strategy
for the target audience and set the criteria for selecting media. In small
---------------------- agencies, media planners often make the media buy as well. Media buy is
too complicated for an individual.
----------------------
Greater latitude is allowed in media planning than in creative planning.
---------------------- For example, a media campaign in the southern hemisphere, especially for
---------------------- consumer goods and seasonal items, requires major changes from a northern
hemisphere campaign. In the southern hemisphere, summer, Christmas
---------------------- and back-to-school campaigns are all compressed from November through
January.
----------------------
14. Media choices
----------------------
Once an international advertiser’s overall strategy has been established,
---------------------- it is still faced with a daunting array of media possibilities or limitations

within specific markets. In developing an optimal solution that addresses Notes
these differences, an organisation must consider the following:
----------------------
a) availability
b) cost ----------------------
c) coverage ----------------------
d) appropriateness of the media. ----------------------
a) Availability
----------------------
Two main characteristics define the availability of a medium to an
international advertiser—quantity and accessibility. ----------------------
The quantity, or saturation, of different media types can be so high in some ----------------------
markets that no dominant medium emerges as the clear choice. Other
markets may have such a narrow quantity of available media that it serves ----------------------
to limit the advertiser’s potential message or reach.
----------------------
Accessibility can also be an issue when governments prohibit the use
of certain media for the delivery of specific advertising messages. An ----------------------
example for this kind of accessibility limitation is one in which cigarette
----------------------
manufacturers are prohibited by law from advertising on U.S. television or
Indian television. ----------------------
Some markets have a highly fragmented distribution of newspapers or ----------------------
magazines. In such markets, the costs of placing advertising with each
distributor to obtain the desired market coverage would be prohibitive. ----------------------
b) Costs ----------------------
Of major consideration is the fact that, in many countries, media prices
are not always firm, but vary widely because of bargaining customs. The ----------------------
bargaining expertise of an advertiser with its local agency in negotiating ----------------------
contracts as well as the local agency’s relationships and bargaining skills
with media providers can result in huge differences in marketing costs ----------------------
from country to country.
----------------------
c) Coverage
----------------------
The limited availability of media in a market has a direct effect on the
coverage a company can hope to attain there. ----------------------
In many instances, a combination of a number of different media must be
----------------------
used to reach the majority of a given market.
Sometimes advertisers are forced to become more creative and try new ----------------------
methods of reaching their targets. For example, in parts of India, with ----------------------
limited technologies and infrastructures, Colgate hires 85 vans during a
single campaign to visit villages identified as potentially profitable by its ----------------------
market research.
----------------------
----------------------

Notes d) Appropriateness of the Media
Unfortunately, while many countries do have agencies similar to the
----------------------
U.S. Audit Bureau of Circulation, they often lack the power to enforce
---------------------- their policies. This means the international advertiser is often faced with
inaccuracies or misrepresentations of circulation figures by local media
---------------------- providers. Therefore, determining whether it is selecting the right mix
of media is difficult, if not impossible. In response to vastly inflated
----------------------
circulation figures of local newspapers, the president of the Mexican
---------------------- National Advertisers Association suggested that advertising agencies
divide the reported figure in half, and consider the resulting number with
---------------------- skepticism.
---------------------- 15. The global creative process
Global campaigns, like domestic campaigns, require ad work that addresses
----------------------
the advertising objectives and reflects the product’s positioning. The
---------------------- opportunity for standardising the campaign exists only if the objectives
and strategic position are essentially the same.
----------------------
The creative process requires three steps: to determine copy content, to
---------------------- execute the content through a central idea and to produce the advertising.
Standardising the copy content by translating the appeal into the language
---------------------- of the foreign market is fraught with possible communication blunders. It
---------------------- is rare to find a copywriter who is fluent in both the domestic and foreign
languages and familiar with the culture of the foreign market.
---------------------- It is best if the central creative idea is universal across markets, or at least
---------------------- can be converted easily from market to market. For Starbucks, the central
idea is high-quality products in a relaxing atmosphere. Although the
---------------------- implementation of this idea may vary from market to market, the creative
concept is sound across all types of consumers.
----------------------
Even if the campaign theme, slogan or visual elements are the same across
---------------------- markets, it is usually desirable to adapt the creative execution to the local
market. Adaptation is especially important if the advertiser wants its
---------------------- products identified with the local market rather than as a foreign import.
---------------------- Advertisements may be produced centrally, in each local market, or by a
combination of both. With a standardised campaign, production is usually
----------------------
centralised and all advertisements are produced simultaneously to reap
---------------------- production cost savings.
16. Evaluating effectiveness
----------------------
A strong effectiveness evaluation program is particularly important
---------------------- for international advertising. The effectiveness evaluation program for
international advertising should focus, at least initially, on pre-testing.
----------------------
Unfamiliarity with the culture, language, and consumer behaviour can
---------------------- result in major miscalculations. Pre-testing helps the advertiser correct
major problems before damage is done.
----------------------

17. Special international considerations Notes
International advertising, despite its glamorous image, is tough work
----------------------
because it poses formidable challenges. We have already discussed the
problems that language creates. Other concerns relate to laws, customs, ----------------------
time, inertia, resistance, rejection and politics.
----------------------
18. Laws and Regulations
International advertisers do not fear actual laws; they fear not knowing ----------------------
those laws. For example, a marketer cannot advertise on television to
----------------------
children fewer than 12 in Sweden or Germany. He cannot advertise a
restaurant chain in France. He cannot advertise at all on Sunday in Austria. ----------------------
In Malaysia, jeans are considered to be Western and decadent and are
prohibited. In India, cigarettes and liquor advertising is banned in the ----------------------
national media. A commercial can be aired in Australia only if it is shot
----------------------
with an Australian crew. A contest or promotion might be successful in one
country and illegal in another. ----------------------
19. Customs and Culture ----------------------
Customs can be even stronger than laws. When advertising to children
age 12 or over was approved in Germany, local customs were so strong ----------------------
that companies risked customer revolt by continuing to advertise. In many ----------------------
countries, naming a competitor is considered bad.
Customs are often more subtle and, as a result, are easier to violate than ----------------------
laws. In Japan, the audience would respect the advertiser for using the ----------------------
name or become embarrassed at not knowing a name they were expected
to recognise. A campaign that made such a reference might irritate U.S. ----------------------
audiences and engage Japanese consumers. Companies that are starting to
do business in the Middle East have to learn new selling methods because ----------------------
the region is so devoutly religious. There are major restrictions on how ----------------------
women are presented in advertising. Many Asian cultures pay a strong
emphasis on relationships. To be effective, the advertising message must ----------------------
recognise these cultural differences.
----------------------
Many oppose the move to a global perspective because of concerns about
the homogenisation of cultural differences. ----------------------
Marketing or cultural imperialism is a term used to describe what happens ----------------------
when Western culture is imposed on others, particularly the Middle East,
Asian and African cultures. ----------------------
Countries in Southeast Asia have advertising codes. Singapore has an ad ----------------------
code determined to prevent western-influenced advertising from impairing
Asian family values. Malaysia requires that all ads be produced in the ----------------------
country, which cuts back dramatically on the number of foreign ads seen
----------------------
by its public.
----------------------
----------------------

Notes 20. Time
Everything takes longer when taken at the international level. The New
----------------------
York business day overlaps for only three hours with the business day in
---------------------- London, for two hours with most of Europe and for one hour with Greece.
Normal New York business hours do not overlap at all with those in Japan,
---------------------- Hong Kong, the Middle East or Australia.
---------------------- Overnight parcel service is dependable to most of Europe and other regions,
if the planes are able to take off and land.
---------------------- For these reasons e-mail that permits electronic transfer and telecopy
---------------------- transmission is a popular mode for international communication. E-mail
and fax numbers have become as universal as telephone numbers on
---------------------- stationery and business cards in international companies.
---------------------- Time is an enemy in other ways. France and Spain virtually close down in
August for vacation. National holidays are also a problem. U.S. corporations
---------------------- average 14 to 15 paid legal holidays a year. The number is more than 20 in
Europe, and more than 30 in Italy. In India it is a huge number!
----------------------
---------------------- 7.6 INDIAN ADVERTISING TRENDS

Indian advertising, especially advertising on television, has undergone a
----------------------
significant transformation over the past 10 years. It is definitely getting better.
---------------------- Our commercials are more engaging and clutter-breaking nowadays. It is also
a lot funnier.
----------------------
We are making more funny commercials today than we were a decade ago. But
---------------------- does this across-the-board humour work or does it only generate more clutter?
And even if one were not to debate the merits of humorous advertising, is this
---------------------- the only change that Indian television commercials have witnessed? What
about a change in communication formats, in and across product categories?
----------------------
What about changes in the manner in which Indian brands tell product stories?
---------------------- Or changes in the use of mnemonics, the use of ‘product windows’ and, say, the
portrayal of women in Indian commercials?
----------------------
The not-so fair face of advertising!
---------------------- Fairness products may have lost a shade or two of that promised glow.
---------------------- The offensive HLL ad was pulled out of Star India, because it had some leftist
women’s organisations in the country seeing red, which prompted the I&B
---------------------- ministry to issue a directive to channels to pull the blinds on the commercial.
---------------------- Star, which has a sizeable chunk of HLL product inventory, now reviewed the
issue to check whether Lever plans to replace the offending ad with any other.
---------------------- While the Advertising Standards Council of India’s (ASCI) regulations are
quite clear, all’s fair in ads and war!
----------------------
The product that has raised the hackles of a section of the population
---------------------- The ad, created by Lowe Lintas, sent out a positive message that a girl is induced
---------------------- to get out of the confines of her life and build her own identity, helped along by
a fairness product.
The Advertising Agencies’ Association of India president Sam Balsara said that Notes
while the AAAI has not taken a stance on this issue, the ads merely reflect
current societal modes. ----------------------
The ASCI on the other hand says that it has never upheld any complaint received ----------------------
by it against fairness creams on the basis of social discrimination.
----------------------
The level of fairness achievable by the use of these products, however, becomes
a matter of personal judgment, since there is no way of measuring it. ----------------------
The issue of ‘objectionable’ ads on the TV has, however; once again pitch
----------------------
forked into the limelight the need to have a separate body to monitor content on
television channels, on the lines of the content bureau as envisaged in the still- ----------------------
pending Communication Convergence Bill.
----------------------
Not quite fair, says government
According to the government official, the need for a monitoring body is amplified ----------------------
from the fact that the government has received several complaints regarding ----------------------
programs and advertisements on television channels and the government cannot
always be active in the activity of policing. ----------------------
Fair Weather Friends ----------------------
Three prominent companies – HLL, Emami and Cavin Kare – are currently
----------------------
aggressively pushing their fairness creams on television, even as Godrej markets
its fairness soap with equal gusto. ----------------------
The All-India Democratic Women’s Association (AIDWA) was the one which
----------------------
woke up the sleeping critics with its protest to the government against the ad,
demanding that it be pulled off air. ----------------------
Then several TV channels got notices from the I&B ministry to take off the ----------------------
air ads relating to products which claimed to lighten the color of the skin after
usage. The move came after the All India Democratic Women’s Association had ----------------------
petitioned the government, a Left party dominated organisation, that such ads
were biased against the dark-skinned girl child. ----------------------
Is this fair? ----------------------
One such ‘objectionable’ ad features two girl friends bantering amongst ----------------------
themselves how the usage of two bars of soap of a particular brand for a period
of eight weeks would make one of them (dark skinned compared to her friend ----------------------
who is very fair) fair and lovely. The dark-skinned girl takes up the offer, turns
into a fair-skinned Cinderella and loses the bet of Rs 20 (cost of soaps). The ----------------------
friend now, of course, does not want her boyfriend to see her ‘lovely’ friend ----------------------
closely.
----------------------
There’s more. In another ad, a girl is unable to land a handsome groom due to
her dark complexion, but her use of a fairness cream helps her hook a good ----------------------
looking guy. Another has a girl who lands a job as an airhostess after using a
fairness product and is able to make up for her father’s regret of not having a ----------------------
son to look after him Fair enough?
----------------------

Notes It is ads like these which can upset anybody. Are the companies trying to say
that it is a sin to be dark-skinned in a country like India (where majorities of
---------------------- the population are various shades of brown)? Especially when even educated
people pray for fair daughters and daughters-in-law. And in recent times, a case
---------------------- of girl infanticide too has increased alarmingly.
---------------------- The TV channels were given 14 days time to take the necessary steps on the
notice, including petitioning the government on it too. Is it fair?
----------------------

---------------------- 1. The two basic approaches to global advertising are market oriented
and ______ oriented.
----------------------
2. By standardisation of advertisement, we mean focus on the ________
---------------------- of consumers around the world.
---------------------- 3. By localisation, we mean _______ of local culture in advertisements.

4. _______ advertising approaches can be used to overcome cultural
---------------------- differences in target customers.
---------------------- 1. Standardisation in advertising leads to savings through economies of
scale.
----------------------
2. The reach of satellite stations is making national borders increasingly
---------------------- irrelevant in international markets.
----------------------
Activity 2
----------------------
---------------------- Check TV advertisements and identify some brand campaigns that have been
translated into Hindi and local language. Note down the brands names, the
---------------------- original message in the English ad (in terms of headlines) and the translated
lines for the adaptation ad.
----------------------
----------------------
7.7 FUTURE OF ADVERTISING IN DEVELOPING
---------------------- COUNTRIES
---------------------- 1. Advertising and national goals
Governments of many developing countries, except those which have a
---------------------- strong commitment to private enterprise, frequently frown upon advertising.
---------------------- India has a mixed economy. The system of national planning and the
Institution of planning commissions at the centre and in the states were
---------------------- evolved to satisfy further demand. The question of resources allocation is
undoubtedly relevant. However, it has assumed undue importance.
----------------------

A lot of miscomprehension about the role of advertising arises because Notes
inherent marketing orientation of accepted and established systems, such
as planning is ignored. ----------------------
2. Attitudes towards advertising ----------------------
The function and purpose of advertising, when considered in isolation from
----------------------
marketing objectives, is often misunderstood. There is extensive use of
advertising in the Indian context not only by business and industry, but also ----------------------
by the government and political parties. Political advertising, too, raises
questions about the applications techniques as well as motives, despite the ----------------------
explicit use of advertising by the government and political parties. The
----------------------
image of advertising amongst opinion leaders and decision makers, as
indicated by their personal opinion, is however, distinctly positive. ----------------------
3. Use and misuse of advertising
----------------------
Critics of advertising in India include individuals and action group such as
women’s associations. ----------------------
Woman’s groups are particularly offended by excessive and irrelevant ----------------------
use of female models and vulgarity in advertisements. A vigilant attitude
towards advertising is certainly desirable. It is however, unfortunate that ----------------------
many a time much criticism, regardless of its merits, takes the form of an
----------------------
attack of the specific advertising and the concerned organisations.
The consumer education and research centre is an organisation which has ----------------------
given a lead in initiating action on misleading and untruthful advertisement.
----------------------
An instance may be cited here.
Seven Seas Super Vitamin E was being advertised in the lay press with ----------------------
the claim that it was helping millions around the world feel young. The
----------------------
body copy went on to state that the product “helped hair retain its natural
lustre, body and bounce; made a woman’s skin glow with health, youth ----------------------
and beauty; and, made a man feel more lively and full of energy.” The
CERC took up the matter with the manufacturers and enquired about the ----------------------
indications and dosage of this vitamin and whether a doctor’s prescription
----------------------
was required. Replies received were not considered satisfactory.
The centre also sought the opinion of experts and the food and drug control ----------------------
organisation, Mumbai. This development represents a healthy instance of
----------------------
probing done by a consumer body and the consequent pressure that was
brought to bear not only on the manufacturer but also on the authority ----------------------
concerned, in this case with drugs and remedies.
----------------------
4. Norms of judgement
The instance cited above was an unambiguous case when the validity ----------------------
information contained in the advertising was not tenable. Apparently, the ----------------------
manufacturer too appreciated it. In a large number of debatable cases, it
is necessary to know accepted norms against which claims and criticism ----------------------
may be evaluated. It will be rather difficult to have absolute standards for
----------------------
a variety of reasons.

Notes The audience of any advertising will depend on the media specific vehicles
used in each media and thus the reach of this ad constitutes the target
---------------------- audience. However, the responsibility of the advertising agency and the
---------------------- media extends to all readers, viewer and listeners. The basic problems of
communications with those who may not form a part of the target audience
---------------------- may arise.
---------------------- Howard and Hulbert have tried to develop criteria for evaluation of
advertising from the angle of pubic interest. The question of proper
---------------------- segmentation is one of their six criteria. Others are timeliness, intelligibility,
---------------------- relevance, truthfulness and completeness. It is also necessary to include
the issue of aesthetics, in addition to that of ethics. The British code of
---------------------- advertisements states that an ad must be legal, decent, honest and truthful.
---------------------- The advertising standards authority has observed that only a small number
of advertisements, out of the millions which appear every year, have been
----------------------
found violating the code. Research on the attitudes of business executives
---------------------- towards advertiser and advertising was undertaken by the Harvard Business
Review in 1962.
----------------------
Respondents indicated on a five point scale their “opinions of advertisements”
---------------------- in the above three categories, on the following considerations.
---------------------- 1. Advertisements with irrational or misleading claims.
---------------------- 2. Advertisements which are in bad taste.
---------------------- 3. Advertisements for objectionable products.

4. Advertisements which insult the intelligence.
----------------------
5. Advertisements with too little information.
----------------------
6. Advertisements which are irritating.
----------------------
An improvement was indicated only in respect of advertisements with
---------------------- invalid or misleading claims as their proportion had declined. On the other
five criteria, a majority of the respondents opined that the proportion had
---------------------- increased.
---------------------- 5. New Horizons
---------------------- Advertising professionals in developing countries have to be fully aware of
the challenge and responsibility trust on them by virtue of a vast unexploited
---------------------- potential, on the one hand, and the resistance that they encounter from
various quarters, on the other.
----------------------
This requires looking beyond their own narrow areas of operation. A great
---------------------- deal of co-operative endeavour is required in order to put advertising on
a sound footing. This has to be backed by research, the bulk of which is a
----------------------
major drawback for advertising decisions.
----------------------

There has to be a greater willingness on the part of all persons and actions Notes
concerned with advertising to innovate and experiment. This calls for an
unconventional approach, as applicable, whether it is towards idea, content ----------------------
of the message, creative strategy or evaluation of tenses. Stereo-typing,
the curse of advertising, is a real danger against which the industry has ----------------------
to guard itself. This may be seen for instance in heavy reliance on the ----------------------
standard mass media or in creative execution. Advertisements for textiles
products, for instance, look alike. ----------------------
This type of situation may render all such advertising ineffective. It is, ----------------------
basically, in the interest of advertisers to get a proper payoff from their
investment in using agencies, which can justify their existence only if the ----------------------
advertising products result.
----------------------
The quality of advertising and its social acceptance are the two sides of the
coin. Advertising has to reflect social norms, value and aspirations. Since ----------------------
various problems arise, there is a need for legislation.
----------------------
In India, too, this subject should be treated with the urgency that it demands.
Sensible and practicable guidelines can be developed and an institutional ----------------------
framework established for self regulation. The benefit for the advertising
industry will be great. Imposition of such discipline will be preferable to ----------------------
legislation. Self regulation can be more effective, because of its expediency, ----------------------
as against lengthy legal processes.
If recent trends towards increasing professionalisation are any guide, there ----------------------
are grounds to believe that the advertising industry will be able to evolve
----------------------
norms of conduct for itself, which will enable it to continue growing and
making its due contribution to person and the nation. ----------------------
6. Globalisation strategies for Indian brands
----------------------
To succeed in the particular business, one needs an ability to raise cost
effective capital and a sound understanding of technology and trends. It is ----------------------
very important to do so, not as much as to raise money as to gain equity on
----------------------
a global platform.
Branding was repositioned at the Confederation of Indian Industry’s Brand ----------------------
Summit in Chennai. With globalisation stretching markets, the focus was
----------------------
on creating strategies for effective global brand management.
BT (Business Today) presents six routes to global branding, which emerged ----------------------
from their brainstorming.
----------------------
a) High level of customisation
A brand as an experience calls for high sensitivity to the customer’s needs, ----------------------
even discerning to the customers subtle expressions! Customisation has ----------------------
become imperative. The customer will always find exactly what he or she
needs, whether it is his/her brand or not. Every global player is trying to ----------------------
develop a brand image-specific customer-relation marketing module, which
entails customer-emotion evaluation. With growing use of technology and ----------------------
freer cross-border trade, the customer has so much choice now. The one ----------------------
one-size-fits-all marketer will perish if they do not customise.

Notes b) Manage the value perception
The brand transcends every barrier, most of all, class. But it still means
----------------------
different socio-economic groups. The customer’s commitment towards
---------------------- the value of brand is inversely proportional to her standing on the socio-
economic scale. The functional attributes of successful global brands
---------------------- define a brand. However, it is the value that the companies manage to yoke
to these brands, by exploiting the perception of the customers belonging to
----------------------
different socio-economic groups, which ultimately works.
---------------------- c) Do not extend your brand indiscriminately
---------------------- Procter & Gamble, Chevrolet, and Millers & Coors have all been victims
of indiscriminate brand-extensions. Levi-Strauss’ brand-share dropped
---------------------- from 31 to 19 percent in just seven years, when it came up with 27 different
cuts to appeal to a wider market. Diluting the brand equity by getting into
----------------------
sub-branding will only kill sales. For, when there are too many products
---------------------- under the same brand name on the shelf, the customer is not patient.
---------------------- In the US, nine percent of the brand-extensions die.

d) Localise global brands
----------------------
Ford Motor’s response to the Indian market is a pointer. Even as it
---------------------- positioned its new car, the Ikon, in line with Indian needs, it replicated its
global manufacturing technology in all the Indian plants. While it is true
---------------------- that customers of global brands want to enjoy the same quality of product,
---------------------- packaging and communication as is available in the developed markets,
must make sense in the local context of consumption.
----------------------
e) Speak in one voice
---------------------- No matter what its product, service, or market, General Electric’s
communication is universal: “We Bring Good Things to Life.” The brand
----------------------
communication, even as it uses different media, must be unified. It also
---------------------- needs to have a universal appeal. But implementing such a translation
worldwide is a huge task considering that every different global market
---------------------- has its own media and idioms. One way out is media focus. Colt, the UK
based air-conditioning and Ventilation Company has cut the number of
----------------------
trade publications it advertises in from 32 to just 1.
---------------------- f) Do not neglect the nuances
---------------------- Everyone knows it by now, but cross-cultural mistakes can still kill your
chance of globalisation. When an ad agency created a commercial for
---------------------- an antiperspirant, for air in Tokyo, featuring an animated lady octopus-
---------------------- referred to as an Underarm Expert - spraying under all her arms while
taking about efficiency of the spray, it evoked hysterical laughter from the
---------------------- audience. Why?
---------------------- In Japan, an octopus is thought of as having eight legs – not eight arms.
Do not forget, there is no one global market to conquer world; you have to
---------------------- conquer every market differently.

7. On corporate brandings in India Notes
Corporate branding is a challenging proposition in India, since there are
many brands and diversified products from the same company. None of ----------------------
them is able to convey the corporate’s ethics and values. The Body Shop ----------------------
is not just selling a product. It is branding environmental concerns by
asserting that no animal-testing has been done. The brand content has ----------------------
percolated from the corporate down to the customer, who rewards the
brand by showing an affiliation to this value. ----------------------
8. On product differentiation ----------------------
Differentiation is the deal-clincher. And for that, a corporate can make use ----------------------
of sub-branding and customisation of the brand to suit various international
markets. Sub-branding will not dilute the corporate brand message. ----------------------
The corporate brand is like a master brand, and sub-brands are merely
extensions of this. ----------------------
Hindustan Lever, for instance, has created its strong brand equity through ----------------------
the extensive usage of sub-branding.
----------------------
9. On global branding
Before making a mark in the international market, you have to consolidate ----------------------
your domestic standing. If your brand does not sell well in your own home
----------------------
territory, it is preposterous to think that it will be well-received abroad. The
Japanese are strong in their domestic market. Success has to be local first, ----------------------
then it should be global; only this will provide true value to the customer.
----------------------
Summary ----------------------
 One aspect of globalisation is the convergence of income, media and ----------------------
technology, which in turn is expected to lead to homogeneous consumer
behaviour. This convergence thesis is being increasingly questioned. ----------------------
With converging national wealth, there still is a substantial variation of ----------------------
consumer behaviour across nations. Variation is found in all aspects of
consumer behaviour: in consumption of packaged goods, in usage and ----------------------
ownership of durable goods and in media behaviour.
----------------------
 Both convergence and divergence take place at the macro level, but
to varying degrees in different regions. If products converge across ----------------------
countries, convergence is weakest in economically heterogeneous regions ----------------------
and strongest in economically homogeneous regions.
----------------------
 Culture explains the variance of consumption categories as reflected in
the structure of private consumption. Differences in media usage are ----------------------
persistent because the media are a part of countries’ culture.
----------------------
 Several aspects of branding vary by culture. An important difference is
the brand type used in the marketing strategy. Company brands are more ----------------------
customary in Asia while the product brand is a more western, individualist
----------------------
phenomenon.

Notes  In recent decades, Asia has been home to many of the world’s most
dynamic markets. The region now represents 25 per cent of the world
---------------------- economy and about 50 per cent of the world’s population.
----------------------  Currently, the four main approaches to the cross-cultural consumer
behaviour theory are (1) the global perspective (2) the “imported”
---------------------- perspective (3) the ethnic consumption perspective, and (4) the cultural
---------------------- meaning perspective.
 Consumers worldwide are not the same and the differences in consumer
---------------------- behaviour between countries are increasing. Because all aspects of
---------------------- consumer behaviour are culture-bound and not subject merely to
environmental factors but integrated in all of human behaviour, there is an
---------------------- increased need to identify and understand this integration and its impact
on global marketing and advertising.
----------------------
 The two basic approaches to global advertising are market oriented or
---------------------- culture oriented.
----------------------  The strategic approach towards globalisation can be standardisation,
adaptation, or contingency. Three factors are considered for this: language,
---------------------- budget, and strategy.
----------------------  Marketing begins with a local brand, expands to a regional brand, and
finally, goes global. Advertising follows the same path.
----------------------
 Two major approaches to strategic advertising in foreign cultures differ in
---------------------- their orientation: one is market oriented and the other is culture oriented.
International advertising campaigns have two basic starting points:
---------------------- success in one country, and a centrally conceived strategy, a need, a new
---------------------- product, or a directive.
 There are many factors to consider while organising an international
---------------------- advertising campaign.
----------------------  Indian advertising, on television, has undergone a significant
transformation over the past 10 years. It is definitely getting better.
----------------------
 The future of advertising in developing countries depends on a variety of
---------------------- conditions, which must be scrutinised before taking action.
----------------------
Keywords
----------------------
●● Integrated Brand Communications: If an advertising agency is shaping
---------------------- an integrated marketing communications plan, it is a fair assumption that
---------------------- the plan will revolve around advertising.
●● Interactive advertising: A small number of specific outcome measures,
---------------------- research on interactive advertising will need to focus much more on the
---------------------- ongoing processes, to examine how consumers want or will at least accept
advertising and other forms of marketing communication.
----------------------

●● International advertising : The advertising phenomenon that involves Notes
the transfer of advertising appeals, messages, art, copy, photographs,
stores and video and film segments (or spots) from one country to another. ----------------------
●● Insert(s) : (sales promotion definition) A preprinted advertising page(s), ----------------------
commonly offering coupons or other promotional activities, that is inserted
into a separate publication, such as a newspaper. (Advertising definition) ----------------------
Preprint advertising of one or more pages that is loosely inserted between
----------------------
the pages of a newspaper or magazine.
●● Institutional advertising: An advertising message or advertising ----------------------
campaign that has the primary purpose of promoting the name, image,
----------------------
personnel or reputation of a company, organisation, or industry. When
employed by a company or corporation it is sometimes called corporate ----------------------
advertising.
----------------------
●● Moral dimension of advertising: From researchers and marketers,
such as ethical issues surrounding cigarette advertising, gift giving, ----------------------
political advertising and customer privacy labels inappropriate marketing
(including ones on sex-appeal). ----------------------
----------------------
----------------------
1. What do you think are the Indian advertising trends today? Write a note
----------------------
with examples.
2. How does international management affect international advertising? ----------------------
3. Give three examples of global brands and support the reason why they are ----------------------
global.
----------------------
4. Explain the evolution of global marketing.
5. Discuss the approaches to international advertising. ----------------------
6. Write three examples of how international management affects international ----------------------

advertising.
----------------------
7. List some special problems international advertisers face when they launch
in India. Mention the brands that you are looking at. ----------------------
8. “Speak with one voice.” Give three examples of brands that do this ----------------------
globally.
----------------------
9. The Body Shop has its specific branding concept, as discussed in this
lesson. Mention two brands in India that follow this policy. ----------------------
10. Have you come across brands that put forth misleading claims? List four ----------------------
such brands and state why their claims are misleading.
----------------------
----------------------
----------------------

Notes Answers to Check your Progress

1. False
----------------------
2. True
----------------------
Fill in the blanks.
---------------------- 1. Globalisation has resulted in the convergence of income, media and
technology.
----------------------
2. Globalisation is expected to lead to homogenous consumer behaviour.
----------------------
3. Advertising that promotes the same product in several countries is known
---------------------- as international advertising.

Fill in the blanks.
----------------------
1. The two basic approaches to global advertising are market oriented and
---------------------- culture oriented.
---------------------- 2. By standardisation of advertisement, we mean focus on the similarities of
consumers around the world.
----------------------
3. By localisation, we mean adaptation of local culture in advertisements.
---------------------- 4. Visual advertising approaches can be used to overcome cultural differences
---------------------- in target customers.
----------------------
1. True
----------------------
2. True
----------------------
---------------------- Suggested Reading
---------------------- 1. Clown, Kenneth and Bach, Donald. Integrated Marketing Communications.

----------------------
---------------------- PHI
---------------------- 5. Irwin. International Edition - Contemporary Advertising. McGraw Hill

----------------------
7. Jones, John. International Advertising. SAGE publications.
----------------------
----------------------

Advertising and Society, Ethics and Regulations
UNIT
8
Structure:
8.1 Introduction
8.2 What is Ethics
8.3 Advertising Regulations
8.4 Issues in Advertising
8.5 Watchdog Bodies
8.6 Ethics in Advertising
8.7 Positive Role of Advertising
Summary
Keywords
Suggested Reading
Advertising and Society, Ethics and Regulations 221

Notes
Objectives
----------------------
----------------------
• Examine the right to privacy and its violation.
----------------------
• Find out what is advertising regulations, self regulation practices in
---------------------- India.
• Point out the positive and negative sides of advertising.
----------------------
• Discuss manipulative advertising.
----------------------
• Describe the impact of advertising on special audiences such as
---------------------- children and women.
---------------------- • Assess the scope and use of regulations in advertising management.
• Discuss the role of ethics in advertising.
----------------------
---------------------- 8.1 INTRODUCTION

---------------------- Has the role of advertising often been a subject of much debate in society?
Obviously, the answer is ‘yes’.
----------------------
Advertising may be useful to consumers, considering that dissemination
---------------------- of information is necessary when buyers have to make a choice from various
products and services.
----------------------
The opposite view is based on the contention that consumers are duped by
---------------------- misleading advertising and hence, advertising should be controlled, or at least,
strictly regulated. Advertising on social issues is criticised on the grounds of it
----------------------
being in bad taste, deceptive or manipulative. Besides, it is also alleged that it
---------------------- corrupts our social values and life styles.
---------------------- One of the criticisms against advertising is that it deceives. How?

Deception occurs when an advertisement is introduced into the perceptual
---------------------- process of the audience and the outcome of the perceptual process either differs
---------------------- from the reality of the situation or affects the buying behaviour to the detriment
of the consumer. Thus, it not only refers to the content in the advertising, but
---------------------- may also arise from the misplaced emphasis on presentation.
---------------------- A good example is the case related to retail outlets’ advertising which
highlights discounts of “up to 50%” on ready-made garments or furnishing
---------------------- fabrics etc. Here, the maximum discount of 50% you will see is granted only on
some items and not on all items, as the impression one gets. Earlier, such ads
---------------------- did not mention ‘up to’ and so created an impression that all items were for sale
---------------------- at 50% off! This is misleading.
Earlier, some of the most misleading advertisements were those of liquor
----------------------
brands when liquor advertising was not permitted. Then, the advertisers would
---------------------- resort to a variety of gimmicks. Thus, McDowell pretended to sell Diplomat

disposable ice cube bags or McDowell’s Soda with spirit. The world, of course, Notes
knew that Diplomat was synonymous with whisky.
----------------------
In brief, deception is involved when due to advertising -
a) a consumer perceives a claim (being explicitly or implicitly made by the ----------------------
advertiser) differently from what it actually is, or
----------------------
b) a consumer buys the product under the influence of mistaken impression
and then suffers a loss as a consequence. Thus, either the claim itself could ----------------------
be false or at least the impression being created is false.
----------------------
It is definitely unethical if the ads deceive the consumer to believe something
which is contrary to the actual situation. ----------------------
----------------------
8.2 WHAT IS ETHICS
----------------------
1. Business Ethics
----------------------
While on the topic of ethics, let us look at what is meant by the term
“ethics” and all the dimensions of the word ethics. Firstly, consider business ----------------------
ethics. It is a form of the art of applied ethics that examines ethical rules
and principles within a commercial context, the various moral or ethical ----------------------
problems that can arise in a business setting and any special duties or ----------------------
obligations that apply to persons who are engaged in commerce.
Business ethics can be both a normative and a descriptive discipline. ----------------------
As a corporate practice and a career specialisation, the field is primarily ----------------------
normative. The range and quantity of business ethical issues reflects the
degree to which business is perceived to be at odds with non-economic social ----------------------
values. Historically, interest in business ethics accelerated dramatically
during the 1980s and 1990s, both within major corporations and within ----------------------
academia. For example, today most major corporate websites lay emphasis ----------------------
on commitment to promoting non-economic social values under a variety
of headings (e.g. ethics codes, social responsibility charters). In some ----------------------
cases, corporations have redefined their core values in the light of business
ethical considerations (e.g. BP’s “beyond petroleum” environmental tilt). ----------------------
2. Overview of issues in business ethics ----------------------

General business ethics: This part of business ethics overlaps with the ----------------------
philosophy of business, one of the aims of which is to determine the
fundamental purpose of a company. If a company’s main purpose is to ----------------------
maximise the returns to its shareholders, then it could be seen as unethical
----------------------
for a company to consider the interests and rights of anyone else.
Another area is corporate social responsibility or CSR. This is an umbrella ----------------------
term under which the ethical rights and duties existing between companies
----------------------
and society is debated.
Then there are issues regarding the moral rights and duties between a ----------------------
company and its shareholders: fiduciary responsibility, stakeholder concept ----------------------
vs. shareholder concept.

Notes It could cover ethical issues concerning relations between different
companies: e.g. hostile take-overs, industrial espionage. Or leadership
---------------------- issues: corporate governance. Or the area of political contributions made
by corporations. Or law reform, such as the ethical debate over introducing
---------------------- a crime of corporate manslaughter. Or the misuse of corporate ethics
---------------------- policies as marketing instruments.
Professional ethics covers the myriad practical ethical problems and
----------------------
phenomena which arise out of specific functional areas of companies or in
---------------------- relation to recognised business professions.
a) Ethics of sales and marketing
----------------------
Marketing, which goes beyond the mere provision of information about
---------------------- (and access to) a product, may seek to manipulate our values and behaviour.
To some extent society regards this as acceptable, but where is the ethical
----------------------
line to be drawn?
---------------------- Marketing ethics overlaps strongly with media ethics, because marketing
---------------------- makes heavy use of media. (However, media ethics is a much larger topic
and extends outside business ethics.) It includes:
----------------------  Pricing: Price Fixing, price discrimination, price skimming.
----------------------  Anti-competitive practices: These include but go beyond pricing
tactics to cover issues such as manipulation of loyalty and supply
---------------------- chains. See: anti-competitive practices, antitrust law.
----------------------  Specific marketing strategies: Greenwash, bait and switch, shill, viral
marketing, spam (electronic), pyramid scheme, planned obsolescence.
----------------------
 Content of advertisements: Attack Ads, subliminal messages, sex in
---------------------- advertising, products regarded as immoral or harmful.
----------------------  Children and marketing: Marketing In Schools.
----------------------  Black markets, grey markets.

To decrease their legal liability for deceptive marketing, many companies
---------------------- cover their tracks using small print. In radio, the equivalent is fast talk,
---------------------- which likewise is nearly impossible to hear or understand. In either
case, this often allows false advertisers to continue their tactics without
---------------------- prosecution.
---------------------- i) Pricing-based methods
In the UK, most price based methods of false advertising are prohibited
----------------------
and strictly regulated.
---------------------- Hence some methods are rarely encountered and used only by the most
disreputable operators, such as Hidden fees and surcharges, Rebates,
----------------------
“going out of business” sales, Inflated price comparison, perpetual sales,
---------------------- Psychological pricing, cost-plus pricing, buy x, get y free, introductory
offers, units of sale and pricing, non-sale advertisements.
----------------------

Other deceptive methods could be: Misrepresentations (Utilising words Notes
such as descriptive terms or location terms to increase the perceived value
of a product) or meaningless terms (when manufacturers and sellers often ----------------------
use terms that sound advanced or deluxe to the average consumer, but really
mean nothing at all), advertising the Maximum (Internet service providers ----------------------
may advertise their service as offering “UP TO 256 KBPS”, whereas on ----------------------
average use it could be just 20 kbps), manipulation of standards (Sellers
may manipulate standards to mean something different than their widely- ----------------------
understood meaning), false labelling (the use of labels with statements
concerning quality, identity, quantity, manufacture or origin that are ----------------------
misrepresented or false), Branding (many well-known companies simply ----------------------
rent their names out to other lesser-known companies. This misleads the
consumer to believe that he or she is getting a quality product), fillers and ----------------------
oversized packaging (some products are sold with fillers, which increase
the legal weight of the product with something that costs the producer very ----------------------
little compared to what the consumer thinks what he or she is buying), false ----------------------
credentials (an advertiser may have a false “expert” testify that a product
is genuine and effective, when in fact it is not), or misleading analogy ----------------------
(advertisements often employ analogies which both simplify the subject
matter and may allow for a type of straw man argument). ----------------------
b) International business ethics ----------------------

While business ethics emerged as a field in the 1970s, international ----------------------
business ethics did not emerge until the late 1990s. Many new practical
issues arose out of the international context of business. Theoretical issues ----------------------
such as cultural relativity of ethical values receive more emphasis in this
----------------------
field. Other older issues can be grouped here as well.
Issues and subfields include: ----------------------
 The search for universal values as a basis for international commercial ----------------------
behaviour.
----------------------
 Comparison of business ethical traditions in different countries.
 Comparison of business ethical traditions from various religious ----------------------
perspectives. ----------------------
 Ethical issues arising out of international business transactions; e.g.
----------------------
bioprospecting and biopiracy in the pharmaceutical industry; fair
trade movement; transfer pricing. ----------------------
 Issues such as globalisation and cultural imperialism.
----------------------
 Varying global standards - e.g. the use of child labour.
----------------------
 The way in which multinationals take advantage of international
differences, such as outsourcing production (e.g. clothes) and services ----------------------
(e.g. call centres) to low-wage countries.
----------------------
 The permissibility of international commerce with pariah states.
----------------------

Notes Benetton Case Study
Benetton Group S.P.A. is a global upmarket clothing brand, based in
----------------------
Treviso, Italy. The name comes from four members of the Benetton family,
---------------------- who founded the company in 1965. The Benetton Group is listed on the Borsa
Italiana, the Frankfurt Stock Exchange and the New York Stock Exchange.
---------------------- The success story began in 1955, when Luciano Benetton, the eldest of
---------------------- four children, was only 20 years old and working as a salesman in Treviso. He
realised that people wanted colours in their lives, especially in their clothes. He
---------------------- sold a younger brother’s bicycle in order to buy the first second-hand knitting
machine and began to market a small collection of sweaters to local stores in the
---------------------- area of Veneto. The positive reaction to his designs was only the beginning of a
---------------------- solid start. Soon after, he asked his sister and his two younger brothers, Giberto
and Carlo, to join him.
---------------------- In 1965, the Benettons opened their first store in Belluno and the year
---------------------- after in Paris, with Luciano as chairman, his brother Giberto in charge of
administration, their younger brother Carlo running production, and Giuliana
---------------------- as a chief designer.
---------------------- Its core business was clothing with the casual line marketed as the
“United Colors of Benetton”, a fashion-oriented “Sisley” division, “Playlife”
---------------------- leisurewear, and “Killer Loop” streetwear brands. Their products include
women’s wear, men’s wear, children’s wear and underwear and they have
---------------------- recently expanded into toiletries, perfumes, exclusive watches and items for the
home such as kitchen accessories and baby products.
----------------------
Benetton Advertising – Steeped in controversy
---------------------- Benetton has been known for producing a long-running series of
---------------------- controversial, sometimes offensive, advertisements that have caused a number
of media critics to accuse the company of deliberately creating controversy in
---------------------- order to sell its products. This publicity campaign originated when photographer
Oliviero Toscani was given carte blanche by the Benetton management. The
---------------------- advertisements, entitled “United Colors of Benetton”, have included images that
are apparently unrelated to the clothes sold by the company, including scenes of
----------------------
a man dying of AIDS, panicking crowds jumping off of a sinking ship, a bloody,
---------------------- unwashed newborn baby, a man whose mouth is stuffed with American dollar
bills and a death row inmate. The only caption included in these pictures is the
---------------------- Benetton logo.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Benetton ad 1992 featuring AIDS patient David Kirby dying
Criticisms against Benetton Notes
Benetton has faced criticisms from several Mapuche organisations,
including Mapuche International Link, over its purchase of traditional Mapuche ----------------------
lands in southern Argentina. Also held suspect is their use of RFID tracking ----------------------
chips, which a boycott site alleges “can be read from a distance and used to
monitor the people wearing them.” ----------------------
----------------------
8.3 ADVERTISING REGULATIONS
----------------------
Advertising regulation refers to the laws and rules defining the ways in
which products can be advertised in a particular region. Rules can define a wide ----------------------
number of different aspects, such as placement, timing and content.
----------------------
In the United States, false advertising and health-related ads are regulated
the most. Many communities have their own rules, particularly for outdoor ----------------------
advertising. Sweden and Norway prohibits domestic advertising that targets
children. ----------------------
Some European countries do not allow sponsorship of children’s programs, ----------------------
no advertisement can be aimed at children under the age of twelve, and there
can be no advertisements five minutes before or after a children’s program is ----------------------
aired. ----------------------
In the United Kingdom, advertising of tobacco on television, billboards
or at sporting events is banned. It is also prohibited to advertise cars on the basis ----------------------
of how fast they can go and the relationship which the event has with the sport ----------------------
seen as a healthy pursuit, unlike smoking. Similarly, alcohol advertisers in the
United Kingdom are not allowed to discuss in a campaign the relative benefits ----------------------
of drinking; in most instances, therefore, the ads focuss around the brand image
and associative benefits instead of those aligned with consumption. ----------------------
There are many regulations throughout Europe as well. In many non- ----------------------
western countries, a wide-variety of linguistic and non-linguistic strategies (e.g.
----------------------
religion) is used to mock and undermine regulations.
The question of regulation of advertising of the utmost importance. In a ----------------------
large number of countries, there are laws and other forms of regulations relating
----------------------
to advertising. Laws promulgated by governments contain stipulations such as
the exclusion of cigarettes advertising from television. ----------------------
Twenty of forty countries insist on government approval for advertising
----------------------
health related products, such as ethical OTC drugs, medicated tablets and
cosmetics. ----------------------
In Canada and Mexico, clearance is required for all food and drink ----------------------
advertisements, particularly where therapeutic claims are made. The number
of such countries is increasing. Concern for the consumer is exemplified by ----------------------
government directs in some countries. The Swedish Government has directed
that safety message be include in advertisements to children, for example, ----------------------
“always wear a helmet when skate boarding.” ----------------------

Notes False advertising (or more mildly, deceptive advertising) is an act
of deliberately misleading a potential client about a product, service or a
---------------------- company in general by reporting false or misrepresenting information or data in
advertising or other promotional materials. False advertising is a type of fraud,
---------------------- and may also be considered a hoax.
---------------------- False advertising is often a crime. In some countries advertising practices
(including “truth in advertising”) are regulated by a government authority (FTC
----------------------
or Federal Trade Commission in the USA), in others the advertising industry is
---------------------- self-regulated and professional associations combat false advertising.
To decrease their legal liability for deceptive marketing, many companies
----------------------
cover their tracks using small print. In radio, the equivalent is fast talk, which
---------------------- likewise is nearly impossible to hear or understand. In either case, this often
allows false advertisers to continue their tactics without prosecution.
----------------------
Self regulation practices
---------------------- The advertising profession i.e. advertisers, advertising agencies and media
---------------------- have taken the initiative in many countries to develop systems and regulations.
The advertising standards authority takes care of print and advertising in the U.K.
---------------------- Similar responsibility for television and advertising is held by an independent
broadcasting authority. The advertising standards authority is financed by the
---------------------- advertising industry. However, it works dependently of the industry.
---------------------- The authority looks at the complaints it receives. Complaints are examined
and if concerned advertisements need to be amended or removed, it instructs
---------------------- the advertiser accordingly. It also has its won monitoring systems for ensuring
---------------------- that the code is being adhered to. Special attention is given to certain type
of advertising, e.g. those meant for children or for products such as alcohol,
---------------------- slimming aids and devices, cosmetics and hypnotherapy.
---------------------- In Australia, the advertising industry council was formed in 1978 by
advertisers, advertising agencies and media. Austria has a similar body called
---------------------- “oesterreichische.”
---------------------- In Brazil, the code of self regulation in advertising was promulgated in
January 1979 and a self regulatory body CONAF was constituted to overseas
---------------------- the code was followed.
---------------------- The national advertising council (CNF) of France has reorganised itself to
reinforce self regulation and the powers of the advertising control Bureau (BVP)
---------------------- have been undivided and strengthened. However, plans are a foot to receive
self regulation to generate discussion on advertising and marketing practices
----------------------
legislation instead of leaving it entirely to the consumer and consumerist groups.
---------------------- Self Regulation in India
---------------------- The Advertising Club, Mumbai in collaboration with the international
advertising association, organised a workshop on code for self regulation in
---------------------- India advertising, in April 1982.
----------------------

Spokesmen from amongst the Indian advertisers and advertising agencies, Notes
the World President Emeritus of the International Advertising association
and the Director General of the Advertising Standards Authority Association ----------------------
and Director General of the advertising Standards Authority addressed the
workshop. The main objectives of the workshop were: ----------------------
 To review the self regulation on advertising in various countries, with ----------------------

particular reference to the infrastructure as set up in the U.K.
----------------------
 To evolve a code for self regulation in advertising in India, as well as a plan
for an effective infrastructure for enforcing it. ----------------------
The deliberations of the workshop led to the setting up of a committee in ----------------------
self regulation code in India and modalities of its implementation.
----------------------
Growth of advertising and awareness of regulations
Advertising has come on its own in India. ----------------------
International comparisons clearly indicate the low level of advertising ----------------------

expenditure in India. The industrial base of the country has expanded substantially
since the 1950’s and availability of goods as well as industrial products is on the ----------------------
market. Despite this, there is a low level of advertising supply. Moreover, most ----------------------
advertising is confined to urban areas.
----------------------
The above perspective is a matter of concern not only because of a poor
rank in the international league. The value of advertising as an input in the ----------------------
process of market development has not been fully appreciated. It is only at a
later stage economic and marketing. In fact, the rural market sees very little of ----------------------
advertising, as a study undertaken by the author for the Industrial Credit and
----------------------
Investment Corporation of India Limited revealed. At the same time, the pay off
on advertising in rural market is likely to be higher than in urban markets. ----------------------
An encouraging feature of the growth of advertising has been the increasing
----------------------
professionalism. There has been an increase in the quantum of advertising
business and consequently, a rise in the number of advertising agencies and ----------------------
also the number of newspapers and periodicals.
----------------------
Earlier, the role of advertising was limited largely to information and
possibly a bit of image building. Advertisers did not attach much importance to ----------------------
the impact of advertising marketing.
----------------------
The situation has undergone a major change since the late 1960’s when
relative affluence, although limited to sections of society, large availability of ----------------------
goods and services created a some what competitive environment. The need for
market expansion was also felt. ----------------------
Advertisers became most conscious of the contribution that advertising ----------------------

could make.
----------------------
Advertising agencies responded to the changing situation.
----------------------
Two developments are worth commenting on.
Firstly, advertising started getting closer to marketing strategy and planning. ----------------------

Notes This was a change from the earlier practice, where advertising was treated more
as a public relations activity and could be undertaken in many instances, almost
---------------------- in isolation from marketing planning. It will be fair to add that marketing
planning itself is relatively new in the Indian business scene and has yet to be
---------------------- fully established.
---------------------- The second aspect is that of qualitative improvements on advertising. This,
obviously, is a combination of various factors such as better initial preparations
----------------------
superior creative strategy and advances in technology. In recent years, advertising
---------------------- agencies have been placing greater emphasis in the calibre of the person being
trained. They have, thus, been able to attract better talent and higher standards
---------------------- of performance.
----------------------
----------------------
----------------------
1. Misrepresentation in advertising is when a consumer perceives a
---------------------- claim differently from what it actually is.
---------------------- 2. A consumer buys the product under the influence of mistaken

impression and then suffers a loss as a consequence. This is a case of
---------------------- deception in advertising.
---------------------- 3. Business ethics is a form of the art of applied ethics that examines
ethical rules and principles within a commercial context.
---------------------- 4. Media ethics is a much larger topic and extends outside business
---------------------- ethics.
5. In India, advertising of tobacco on television, billboards or at sporting
----------------------
events is banned.
----------------------
---------------------- Activity 1
---------------------- Check the website of Advertising standards council of India and study the
---------------------- ethical code of conduct for advertisers as applicable in India. List down the
dos and don’t for advertisers.
----------------------
---------------------- 8.4 ISSUES IN ADVERTISING

---------------------- 1. Regulations & Ethics
---------------------- Take a look at some of these headlines that appeared in the national and
international press “INDIA: Child-labour groups get Pepsi ad banned” or
---------------------- “Dolce & Gabbana Gay Kiss Super Bowl Ad Not Banned” or “Deleted but
Approved.”
----------------------
“Film Lover’s gay love-kiss super bowl commercial for Dolce & Gabbana
---------------------- gets a clean chit from ASA.” A lot of complaints poured in as the ad

spot showed two guys exchanging a kiss on the lips, but the advertising Notes
watchdog felt that the idea of the ad was not too objectionable and that it
was all right for a family to watch. So, it could not be banned. However, it ----------------------
was ruled that the ad should not be aired during strictly-meant-for-children
program). What a paradox! ----------------------
There are two main purposes for advertising regulation: ----------------------

 To protect competition. ----------------------
 To protect consumers from economic or physical harm.
----------------------
Advertising regulations are typically concerned with three main areas:
 Deceptive or unfair advertising content ----------------------
 How advertising is delivered to consumers ----------------------
 Protection of susceptible groups, like children
----------------------
a) Dying to be noticed
----------------------
Advertisers and admen are increasingly under fire for upsetting the socio-
cultural-religious sensitivities and sensibilities of consumers. ----------------------
Advertising regulations heavily determined by political attitudes. Some ----------------------
believe in “less government” and that business should be left alone to
regulate itself. Others feel that government has a role to play and want ----------------------
more regulations.
----------------------
In India currently, there is a political ban on cigarettes and liquor advertising.
Almost 80 per cent of Indian smokers are in rural India and there are ----------------------
others who chew tobacco and gutka. How will a ban on advertising and ----------------------
sponsorship help this population? The central issue here is deception.
----------------------
What is deception? How do you define deception?
When an ad claim differs from the reality of the situation and affects the ----------------------
buying behaviour to the detriment of the consumer, it is considered decided. ----------------------
The input itself may be determined to contain certain falsehood. The
----------------------
more difficult and more common case may be when input (the ad) is not
obviously false, but the perceptual process generates an impression that it ----------------------
is deceptive.
----------------------
Dividing the definition into three major components, it states deception
can occur if: ----------------------
i) There is misrepresentation, omission or practice that is likely to ----------------------
mislead.
----------------------
ii) The consumer is acting responsively (or reasonably) in the
circumstances. ----------------------
iii) The practice is material and consumer injury is possible because ----------------------
consumers are likely to have chosen differently if there had been no
deception. ----------------------

Notes Most observers feel the definition involves two major changes, which
makes it difficult for us to qualify it as deceptive.
----------------------
1) The deception must be likely to mislead.
---------------------- 2) The deception must occur in consumers acting responsibly or
---------------------- reasonably in the circumstances, rather than simply occurring in
a substantial number of consumers (even if they are naive and
---------------------- unthinking).
---------------------- Thus consumers are charged with at least some minimal responsibility in
interpreting the advertising. In the early ’90s, M R Coffee advertised “real
---------------------- pleasure does not come in minutes”, by showing steamy sex-related visual.
---------------------- a) Misrepresentation or omission
Misrepresentation or omission can happen in many ways:
----------------------
 Suggesting that a small difference is important
----------------------
 Artificial product demos
----------------------  Using ambiguous or easily confused phrase
----------------------  Implying a benefit that does not fully or partially exist
----------------------  Implying that a product benefit is unique to a brand
----------------------  Implying that a benefit is needed or that a product will fulfill a benefit
when it will not
----------------------  Incorrectly implying that an endorser uses and advocates the brand
----------------------  Making a claim without substantiation
----------------------  Bait and switch
 Identifying the advertising
----------------------
 Telemarketing
----------------------
 Intellectual property
---------------------- b) Puffery
---------------------- Puffery refers to an advertising claim that is not outright false because
the product does possess that quality but it is an exaggerated claim. It is
---------------------- a subjective claim that cannot be proved right or wrong. A rather well
---------------------- established convention is that trade putting is permissible. Putting takes
two general forms.
----------------------
Puffery can be of two types:
---------------------- i) The first is a subjective statement of opinion about a product’s quality,
using such terms as ‘best or greats’. Nearly all ads contain some
----------------------
measure of puffery. For example ‘We are No. 1’ (Videocon TV Ad),
---------------------- “The only way to Dress” (Dash Shirts and Trousers), ‘Most Thrilling
when Chilled’ (Kingfisher mineral water).
----------------------

ii) The second form of puffery is an exaggeration extended to the point Notes
of outright spoof that everyone knows is not true. The ‘green devil’ of
Onida was obviously fictitious and even if he were real he would not ----------------------
be talking the way he did.
----------------------
The notable part is that puffery is not punishable by law.
----------------------
c) Manipulative advertising
Critics of advertising feel that freedom of choice of the customer is restricted ----------------------
by the power of advertising, since it can manipulate buyers into making a
----------------------
decision against his best interests. Such manipulation can be brought about
by playing on the subconscious motives of people by using emotional and ----------------------
subliminal appeals.
----------------------
Advertising is said to act as a hidden persuader. Look at the Denim Ad
After- Shave Ad. It shows that a girl is attracted to a man because he uses ----------------------
Denim. Or consider the Axe ad. Now, this may be a subconscious desire of
most young males. They would like to try the brand, even though on rational ----------------------
analysis, they would know that this is far from being true. Likewise, in an ----------------------
earlier Pantaloon ad, the illustration showed only a woman and the caption
says: ‘The kinds of clothes and accessories for men even women fall for.’ ----------------------
d) Corrective advertising ----------------------
Corrective advertising means to rectify past deception.
----------------------
How do you determine whether the corrective advertising in generating
damage to sales or image? ----------------------
What about those ideas that is counter to the claim of corrective message?
----------------------
Can an advertiser simply decide to stop advertising, thereby avoiding
corrective advertising? ----------------------
Problems exist in implementation of ads. ----------------------
A drastic remedy, no longer is corrective advertising.
----------------------
This remedy allows the FTC (Federal Trade Commission) to order
advertisers guilty of deceptive advertising to correct material beliefs held ----------------------
by consumers.
----------------------
The reasoning was that, if a brand is deceptive advertising practices had
contributed to consumers’ erroneous beliefs about an important brand ----------------------
attribute or benefit the advertiser should correct that belief by allocating a
----------------------
portion of future advertising budgets to consumer re-education.
The most famous “corrective” advertising case involved Listerine ----------------------
mouthwash. “Kills germs that cause colds” was a famous slogan that
----------------------
had dominated the advertising since 1879. Variations on the theme for
almost 100 years had taught consumers well. The FTC initially ordered ----------------------
approximately $10 million to be spent correcting this false claim by clearly
and conspicuously disclosing the following language: “Contrary to prior ----------------------
advertising, Listerine will not help prevent colds or sore throats or lessen
----------------------
their severity.”

Notes On appeal, the brand was permitted to drop the humiliating phrase
“contrary to prior advertising” but was still required to include the rest
---------------------- of the information in all ads. The philosophy behind corrective has been
applied by Federal courts in comparison advertising cases and included in
---------------------- out-of-court settlements. It is no longer used by the FTC.
---------------------- e) Competitor lawsuits
---------------------- Another mechanism that inhibits deceptive advertising is the possibility
of competitor lawsuits, in which firms charge that false advertising has
---------------------- caused them damage e.g. Godrej GE Appliances and Voltas engaged in
MRPTC battle over “We are the largest” ad campaign for their twin-tub
----------------------
washing machines.
----------------------
8.5 WATCHDOG BODIES
----------------------
1. Advertising Regulators
----------------------
Here are some governmental entities that regulate advertising - in
---------------------- alphabetical order:
---------------------- BATF – Bureau of Alcohol, Tobacco, and Firearms Regulates advertising
of controlled substances and dangerous goods.
----------------------
CAB – Civil Aeronautics Board regulates airline advertising. Federal
---------------------- Election Committee (FEC) regulates political advertising.
---------------------- FTC – Federal Trade Commission regulates all facets of interstate

commerce.
---------------------- FCC – Federal Communications Commission Regulates radio, television,
---------------------- and telephone providers.
FDA – Food and Drug Administration Regulates advertising, labeling, and
----------------------
branding of all food, drugs, and health devices.
---------------------- Library of Congress registers copyrighted materials, including books,
music, computers, software, advertisements, and other published materials,
----------------------
such as patents and trademarks.
---------------------- SEC – Securities & Exchange Commission regulates advertising of stocks,
---------------------- bonds, mutual funds, and other securities.
The United States Supreme Court possesses the authority to evaluate the
---------------------- constitutionality of any law or regulation restricting free speech, including
---------------------- commercial speech.
In India, there are some watchdog bodies such as:
----------------------
a) MRTPC
----------------------
b) AAAI
----------------------
----------------------

a) Monopolies and Restrictive Trade Practices (MRTPC) Notes
An important organ of the Department of Company Affairs is the
----------------------
Monopolies and Restrictive Trade Practices Commission (MRTP). This
Commission is a quasi-judicial body. The MRTP Commission established ----------------------
under Section 5 of the Monopolies and Restrictive Trade Practices Act,
1969, discharges functions as per the provisions of the Act. ----------------------
The main function of the MRTP Commission is to enquire into and take ----------------------
appropriate action in case of unfair trade practices and restrictive trade
practices. With regard to monopolistic trade practices, the Commission ----------------------
is empowered under section 10(b) to inquire into such practices (i) upon
----------------------
a reference made to it by the Central Government or (ii) upon its own
knowledge or information, and submit its findings to Central Government ----------------------
for further action.
----------------------
i) The MRTP ACT
The Monopolies and Restrictive Trade Practices Act, 1969, aims: ----------------------
 to prevent concentration of economic power to the common detriment, ----------------------

 provide for control of monopolies and probation of monopolistic, ----------------------
restrictive and unfair trade practice, and
----------------------
 to protect consumer interests
ii) Monopolistic trade practice ----------------------
Monopolistic trade practice is that which represents abuse of market power ----------------------
in the production and marketing of goods and services by eliminating
potential competitors from market and taking advantage of the control over ----------------------
the market by charging unreasonably high prices, preventing or reducing ----------------------
competition, limiting technical development, deteriorating product quality
or by adopting unfair or deceptive trade practices. ----------------------
iii) Unfair trade practice ----------------------
This involves mis-leading advertisement and false representation such as:
----------------------
 Falsely representing that goods and services are of a particular
standard, quality, grade, composition or style. ----------------------
 Falsely representing any second hand renovated or old goods as new. ----------------------
 Representing that goods or services, seller or supplier has a sponsorship,
----------------------
approval or affiliation which they do not have.
 Making a false or misleading representation concerning the need for ----------------------
or usefulness of goods or services. ----------------------
 Giving to public any warranty, guarantee of performance that is not
based on an adequate test or making to public a representation which ----------------------
purports to be such a guarantee or warranty. ----------------------
 False and misleading claims with respect to the price of goods or
services. ----------------------

Notes  Giving false or misleading facts disparaging the goods, services or
trade of another person or concern.
----------------------
b) AAAI
---------------------- This stands for Advertising Agencies Association of India (AAAI). Other
bodies in India are bodies like Advertising Standards Council (ASC). The
----------------------
advertisers have an association called the Indian Society of Advertisers
---------------------- (ISA) that looks into areas of interest to their advertiser constituents.
The advertising agencies have their own Advertising Agencies Association
----------------------
of India (AAAI) that accounts for about 80 per cent of the ad spend in
---------------------- India, with just around 80 members.
---------------------- The AAAI interacts with the INS, the IBF and the ISA, apart from the
Government. It also performs vitally important functions like guiding
---------------------- institutions like the National Readership Council, along with the INS and
the Audit Bureau of Circulation.
----------------------
c) Other Bodies
---------------------- Other bodies include the India Chapter of the International Advertising
---------------------- Association (IC of IAA).
The wonderful part of the seemingly complex structure is that all these
----------------------
associations are effectively run by a handful of industry do-gooders, who
---------------------- seem to love their thankless job.
All these associations are members of an apex body called the Advertising
----------------------
Council of India (ACI), which hosted the widely acclaimed AdAsia 2003.
---------------------- The ACI itself represents India at an association called the Asian Federation
---------------------- of Advertising Associations (AFAA), which meets twice a year and oversees
prestigious events such as the AdAsia, the Asia Pacific Advertising Festival
---------------------- (AdFest) and Asia Media Forum.
---------------------- The Advertising Standards Council of India (ASCI) is the body for self-
regulation that makes the advertising industry feel so proud and the
---------------------- consumers so protected.
---------------------- d) Lessons for advertising

The overall lesson here is that advertising must follow some guidelines:
----------------------
 Be truthful.
----------------------
 Be sensitive to religious and political issues.
----------------------  Do not promote undesirable products declared illegal.
----------------------  Do not promote accepted social ills (dowry is good, male rather than
female child etc.)
----------------------
 Regulators and consumer groups must be seen in the context in which
---------------------- advertising is beamed.
----------------------

 Avoid ads degrading women, promoting bad behaviour in children – Notes
to be avoided.
----------------------
2. Surrogate advertising
To work around the restrictions, we find around us surrogate advertising ----------------------
flourishing, which are seen predominantly around these two brands: ----------------------
Cigarettes and Liquor. Channels air surrogate ads despite ban.
----------------------
The Information and Broadcasting (I&B) Ministry may have banned
surrogate liquor advertising, but top broadcasting companies such as Star ----------------------
India and Zee Telefilms have decided to fulfill their commitments made to
----------------------
the advertisers.
These channels are airing commercials of liquor brand extensions. But ----------------------
others such as Sony Entertainment Television (SET) and movie channel ----------------------
HBO have taken the safer route by adhering to the Government diktat.
----------------------
Even though the law prohibits direct advertising of liquor products,
companies advertise music CDs, mineral water, soda, and luxury holidays ----------------------
that share the liquor brand name.
----------------------
The industry is working overtime to convince the government to take a
softer stance. ----------------------
The Confederation of Indian Alcoholic Beverage Companies (CIABC), on ----------------------
behalf of the IMFL industry, has made a case for genuine brand extensions.
----------------------
Also, SABMiller, the world’s second largest brewer, has made a
representation on behalf of its beer brands. ----------------------
Meanwhile, the All India Brewers Association (AIBA) made a representation ----------------------
on behalf of the beer industry, suggesting that the establishment view this
----------------------
mild alcoholic drink differently. Beer, which has only up to eight per cent
alcohol content in most cases, constitutes only three per cent of the total ----------------------
liquor intake in the country. AIBA is likely to argue that beer, which is
considered as a softer and preferred alcohol across the world, merits a ----------------------
delinked approach (vis-à-vis IMFL) from the perspective of responsible ----------------------
drinking.
----------------------
8.6 ETHICS IN ADVERTISING
----------------------
For understanding ethics in Indian advertising, let us look at the most ----------------------
famous example in recent times that shook up the world of advertising. In July
1995, the ad for Tuff shoes featuring Madhu Sapre, Milind Soman posing in the ----------------------
nude with a python wrapped around them created ripples and a great deal of
----------------------
controversy. There was a case filed against them which is still pending.
The Paris Hilton Carwash ad is another significant example of unethical ----------------------
advertising. ----------------------

Notes The question here is whether:
 To make impact
----------------------
 To cut through clutter
----------------------
 To increase demand
----------------------
 To increase market share
----------------------  Competition or declining profits
---------------------- 1. Ethics of Persuasion
---------------------- Bill Bernbach noted that “Advertising is essentially persuasion. And
persuasion is an art, not a science.” A persuasive pamphlet written by
---------------------- Thomas Paine, Common Sense, was a critical factor in the “selling” of the
---------------------- American Revolution. Persuasion has power. Persuasion is also an ethical
issue in its own right.
---------------------- Persuasion is an act of communication that seeks to change, resolve, or
---------------------- formulate other people’s opinions, feelings, or actions through the deliberate
use of argument, reasoning, or entreaty. This definition also illustrates how
---------------------- persuasion is distinct from coercion or inducement.
---------------------- Since most advertisements try to be at least somewhat persuasive, a

discussion about cultural expectations should help us understand why we
---------------------- perceive some ads to be unethical and why not others.
---------------------- 2. Ad areas under scrutiny of ethics

There are many areas in advertising that come under the scrutiny of ethics.
----------------------
a) Ads for sex related products: Instead of making people aware of the
---------------------- necessity of safe sex and the benefits of birth control, condom ads
continue to intrigue the youngsters with the unique feel it has to offer.
----------------------
b) Ads for health Care and Professional services: Slimming centres that
---------------------- promise miraculous weight reduction; cosmetic surgery clinics that
assure permanent solution to beauty problems
----------------------
c) Ads for vices and fatal effects: Tobacco chewing ads, commercials of
---------------------- alcoholic beverages that tempt the non-alcoholics to have a sip.
---------------------- 3. Types of appeals
Here certain types of appeals are questioned.
----------------------
a) Use of questionable appeals: The ads that bank on fear and negative
---------------------- appeal like neighbour’s envy, jealousy, feud between daughter-in-law
and mother-in-law etc.
----------------------
b) Stereotypical appeals: Sexual or racial stereotyping. Ads that imply
---------------------- that a woman, whether in the kitchen or in the boardroom, ought to
look sensuous and inviting under any circumstances. The fairness
----------------------
creams stereotype – the dusky women as socially less desired for
---------------------- marriage or unemployable.

4. Larger effects on society Notes
a) Value formation: Advertisements responsible for moulding society,
material wants. Ads displaying scantily clad female models ----------------------
commoditise women. And the deluge of ads that increase one’s ----------------------
propensity of consumption makes one feel that possessing a certain
commodity is essential to show that one belongs to the higher echelon ----------------------
of the society.
----------------------
b) Media content: Information content of ads; the ads that suggest the
use of preserved food items without mentioning the fact that many of ----------------------
these preservatives have been proved to have carcinogenic effect.
----------------------
c) Use of deception: The ads of brands that conceal their negative aspects.
The ads of cosmetics that say nothing about the long-term effects of ----------------------
regular usage of their products; the ads of the educational institutions
----------------------
that wrongly claim to give 100 percent placement to its students.
5. Ads targetting children and adolescents ----------------------
The ads that target the vulnerability of children and adolescents create ----------------------
role models whom the kids are expected to emulate and, thus, shape their
dreams and aspirations in an unbecoming way. ----------------------
A special department of the NAD called the Children’s Advertising Review ----------------------
Unit (CARD) is dedicated to protecting the special interests of children.
----------------------
The FCC regulates advertising indirectly, through licensure and the
renewal of broadcast licenses. The most notable and direct example of ----------------------
its regulation occurred during the middle 1960s, when the FCC suddenly
----------------------
applied “The Fairness Doctrine” to tobacco advertising. Prior to this, it had
been applied only to “issues of public debate,” where political candidates ----------------------
from opposing viewpoints might be denied equal access to the broadcast
media. But the FCC widened the scope of the application, deciding that ----------------------
cigarette advertisements “did contribute to the public debate on smoking.”
----------------------
(1961). This application of the doctrine raised the level of anti-tobacco
advertising to an unprecedented high. It was a level that the FCC was ----------------------
unwilling to maintain. A few years later, after being ordered to apply the
doctrine to other advertisements, they made an abrupt volte face, stating ----------------------
that “ordinary product commercials do not make a meaningful contribution
----------------------
to public debate.” (1974).
6. Advertisers’ concern ----------------------
Advertisers’ concern areas are mainly the “Voice/Tone” of the advertisement. ----------------------
7. Impediments to research ----------------------
The impediments to research on advertising ethics are identified as follows:
----------------------
a) Lack of practitioner interest : Research is impeded by the
inapplicability of published findings to business operations, the ----------------------
disinterest of corporations in sponsoring research on ad ethics and the
----------------------

Notes funding constraints that cause researchers to rely on a convenience
sample.
----------------------
b) Lack of sound measures and framework : Research is impeded by the
---------------------- lack of psychometrically-sound measurement scales and theoretical
frameworks in advertising/marketing.
----------------------
c) Lack of relevant theories in related disciplines : Research is impeded
---------------------- by theoretical shortcomings in anthropology, management, philosophy,
psychology, sociology and advertising/ marketing.
----------------------
d) Lack of academic interest : Research is impeded by lack of a journal
---------------------- editor and the difficulty researchers face when they try to relate ethical
issues to traditional advertising issues.
----------------------
8. Why be ethical?
---------------------- “All of us who professionally use the mass media are the shapers of the
---------------------- society. We can vulgarise that society. We can brutalise it. Or we can help
lift it onto a higher level.” - Keith Reinhard, the 64-year-old chairman and
---------------------- the chief executive of the US $15-billion DDB Worldwide Communications
Group.
----------------------
By making a success story out of ads that are offensive to public decency,
---------------------- the message is disturbingly clear: the more rude and shocking you can
be, the more successful you will be in the advertising.
----------------------
Moreover, such ads send out faulty signals to the youngsters, who represent
---------------------- the future of our society.
---------------------- Young creative directors who take pride in their eccentric thought process
ought to be blamed for this. As do the ad awards from Cannes to Clios,
---------------------- which place such creations on the pedestal.
---------------------- Passion is, surely, the most important ingredient in creative achievement.
But its flame need not necessarily leap for obscenity, bullets and falsehoods
---------------------- alone.
---------------------- It is essential to reinforce the virtue of positive passion in today’s ad
world.
----------------------
The need to add ethics in advertising is essential, as we have a duty to
---------------------- live a good moral life. This duty is as much applicable to our business lives
as to our private lives. And marketing professionals also know that ethics
---------------------- brings good business.
---------------------- Unethical ads are often found to have negative consequences, ranging
from adverse publicity to diminished corporate reputation, to consumer
----------------------
boycotts and even legal sanctions.
---------------------- Conversely, an ethical ad can contribute to a good corporate reputation,
heighten morale and, thus, increase repeat business.
----------------------
Regulators and consumer groups must accept that social change is inevitable
---------------------- and much depiction must be seen in the context in which the advertising is

beamed. Winds of change are inevitable and trying to slow them down or Notes
stop them is neither advertising’s responsibility nor its capability.
----------------------
And in such a situation, the ads supposedly degrading women (liquor,
perfume) and promoting bad behaviour among children (soft drinks) are ----------------------
not doing that.
----------------------
9. Advertising and special audience
Advertising and its impact on special audiences have evoked a great deal ----------------------
of controversy over time. Some of the issues have not been resolved and
----------------------
are ongoing.
a) Children are more susceptible to the influences of advertising, since ----------------------
they lack the perceptual defences and cannot objectively evaluate ----------------------
every advertisement. Many ads to which children are exposed,
mislead them. Since they are immature, they easily believe what they ----------------------
see. For example, children are attracted towards the advertisements of
soft drinks, chocolates, noodles etc., not realising their harmful effect ----------------------
on their body. It is advertisements that glamourises orange drink and ----------------------
makes a child prefer it to pure orange juice, which is ‘unexciting.’
b) But it is not merely children who get misled. Even their mothers fail ----------------------
to discriminate between the good and bad, the required and un-needed ----------------------
for their children, under the influence of advertising. The World
Health Organisation has recommended a ban on infant food product ----------------------
advertisements, since mothers erroneously believe that their own
breast milk is inferior to balanced milk/food being advertised by these ----------------------
companies. Not only this, they cannot follow the instructions given ----------------------
on the tin and prepare these products unhygienically (for example, not
putting the bottle (in which they feed their children) in boiling water ----------------------
etc. Result: the child becomes under-nourished.
----------------------
c) Likewise, many students/unemployed youth get attracted towards
false advertising because their miserable condition prevents them ----------------------
from judging the contents of an advertisement objectively.
----------------------
10. Advertising and moral values
----------------------
Certain advertisements are obscene/morally degrading. In a recent case,
Hindustan Lever Limited had to withdrawn an advertisement for their ----------------------
Feast ice cream because it was found to be obscene. In one advertisement,
the child assumed that his teacher becomes a frog. The ad had to be ----------------------
subsequently withdrawn.
----------------------
In Singapore, an American nutritional supplement was being advertised. In
the ad, the kid says: “Come on Dad, if you can play golf five days a week, ----------------------
I can have Sustagen once a day.” The Singapore PM objected, saying that ----------------------
the ad undermined the traditional politeness and deference that Asian
children have for their parents. The ad propagated western values that ----------------------
put unhealthy emphasis on individual rights over and above the accepted
family and societal norms. ----------------------

Notes 11. Advertising and violation of right to privacy
Many times, ads may use the names/pictures of a person without consent.
----------------------
Likewise, ideas, trade marks etc. of others may be stolen and used in an ad
---------------------- without permission of the owner.

----------------------
Fill in the blanks.
---------------------- 1. The main purposes for advertising regulation are to protect _________
and protect consumers from economic or physical harm.
----------------------
----------------------
Activity 2
----------------------
---------------------- 1. View newspaper or TV commercials and identify five ads that you
would call surrogate ads. Make a list of main product and surrogate.
---------------------- 2. Visit market and find whether the surrogate products are available for
---------------------- sale or not.
---------------------- 8.7 POSITIVE ROLE OF ADVERTISING

---------------------- Advertising has played a critical role in the development process by
---------------------- creating a demand for consumer goods and raising the living standards of
the Indian population. It is not completely irrelevant or luxury consumption
---------------------- oriented, as generally pointed out. A substantial amount of advertising is done
to promote capital goods, services, socially desirable values etc. Advertising
---------------------- has definitely played a role in rural and urban development. Yet a lot more
---------------------- needs to be done.
Advertising can play a very important role in a developing economy like
---------------------- India. While excessive spending (promoted through advertising or otherwise)
---------------------- is undesirable in this capital scarce country, advertising can promote saving
habits. Advertisements done by banks, financial institutions etc., do precisely
---------------------- that. Likewise advertising can promote exports.
---------------------- Lastly, advertising can also spread literacy, health awareness, etc.
1. Role of advertising for consumers
----------------------
Consumers stand to gain through advertising in a number of ways:
----------------------
a) Guide to prospective buyers
---------------------- Advertising is an instrument of information and persuasion. The informative
---------------------- role of advertising consists in provision of information about products,
features, functions, specifications and prices to prospective buyers. Due to
---------------------- ignorance (minus advertising), they may purchase an inferior product, pay
higher prices, or worse still, may not even know the variety of products
---------------------- that exist.

b) Elimination of unnecessary intermediation Notes
By advertising the goods, a manufacturer comes in direct touch with the
----------------------
consumers. Banking upon this information, the manufacturer can directly
sell to the customers. The number of middlemen, whose margins increase ----------------------
the price for the consumers, is consequently reduced.
----------------------
c) Better quality goods and cheaper prices
Advertising ensures better and improved quality of goods to consumers, ----------------------
at cheaper rates since (i) advertised goods promise a certain quality
----------------------
which has to be maintained, (ii) mass advertised goods are produced and
distributed in large quantities, thus reducing the production cost per unit ----------------------
(due to economies of scale) and (iii) unnecessary middlemen are removed,
thereby reducing distribution costs. ----------------------
d) Propensity to consume advertising ----------------------
This increases the short-run propensity to consume by informing buyers ----------------------
of the various bargains available. Besides, it is also true that consumer
spending declines when the normal advertising flow is cut-off. ----------------------
e) Quality improvements ----------------------
Goods are generally advertised with brand names. When an ad appears
----------------------
with a brand name, it imprints an image of the product in minds of the
consumer. If the use of the advertised product confirms their expectations, ----------------------
a repeat order is expected and the product will earn a favourable image and
good reputation. Thus, the manufacturer is prompted to maintain and if ----------------------
possible, improve the brand quality so that the confidence of consumers is ----------------------
maintained. Else, the brand will lose market share.
2. Role for the Society ----------------------
a) Better standard of living ----------------------

Advertising creates the desire to possess better and newer items by ----------------------
educating the buyers about better life-style. Advertising gives a direct
stimulus to the consumer, which in turn prompts the producer to produce ----------------------
more and better quality. ----------------------
b) Increase in economic activity and employment
----------------------
Advertising and selling have played an important part in expanding the
economic system by stimulating consumers into buying more. Advertising ----------------------
makes people work harder than they otherwise would. This has had the ----------------------
effect of raising the aggregate level of the economy. In the long run,
advertising has probably played a major part in making people favourably ----------------------
disposed towards high levels of consumption and in creating new products
and ideas. Thus, advertising also increases the employment levels, directly ----------------------
and indirectly. ----------------------
----------------------

Notes c) Glimpse of national life
Advertising acts as a mirror that shows the country’s way of life. It is in
----------------------
fact a running commentary of the way people live and behave.
---------------------- d) Innovation
---------------------- Advertising reduces the risk of innovation. The cost of innovation can be
more than recovered by the sales which ads may generate and encourage
----------------------
manufacturers to undertake research and development. It also helps in
---------------------- marketing industrial goods and investment goods. The contribution of
advertising to the promotion of saving and investment, cannot be ignored.
----------------------
Likewise, advertising is being effectively used for promotion of a number
---------------------- of important social issues such as family planning, healthcare, safety, etc.
---------------------- Thus, advertising informs a customer about the various choices available
in the market.
---------------------- Secondly, advertising happens to be the most economical tool for
---------------------- disseminating information to the prospective audience, whether it is selling
a product or promoting a social cause.
----------------------
Thirdly, advertising is an inseparate part of free speech. Any restriction
---------------------- on the legitimate light to recommend goods and services will diminish the
fundamental right of freedom of speech.
----------------------
Fourthly, advertising can contribute to economic development by promoting
---------------------- saving, investment, production and employment.
---------------------- Lastly, advertising helps marketing.

But then, we cannot turn a blind eye to certain negative dimensions of
---------------------- advertising. It promotes a kind of lifestyle which may not be liked by all
---------------------- segments of society. It increases the cost of goods sold to the customer. It is
wasteful, considering that only a small section of the audience is exposed
---------------------- to the media and may relate to the products being advertised. Advertising
may encourage unsound or false values, especially through its effect
---------------------- on children and youth. It creates an emotional appeal, which may be a
---------------------- considered not rational.
And finally, advertising can, instead of promoting competition, endanger
---------------------- it. Big advertisers can monopolise the market.
---------------------- e) Financial support to media
---------------------- The revenue through subscriptions are quite inadequate to support the
publication of newspapers, magazines or TV channels. Advertising
---------------------- revenues, in fact, provides a greater support to viable functioning of these
media.
----------------------
----------------------
----------------------

f) Competition Notes
Advertising encourages competition and subsequently firms vie with each
----------------------
other to provide the best products and services to create and sustain brand
loyalty. This also creates price competition. ----------------------
g) Countercyclical effect
----------------------
When an economy is in the recessionary phase, some firms increase their
advertising efforts. This may have the effect of re-booking of orders, ----------------------
which otherwise would have remained cancelled, especially for industrial
----------------------
products, machinery and plant, thereby diminishing the amplitude of
business cycle. ----------------------
h) General awareness about social issues ----------------------
Advertising also tends to enlighten the population about social evils and
how to control them, e.g., population problem, illiteracy, road safety, dowry ----------------------
deaths, drunken driving etc. ----------------------
Summary ----------------------
 The materials covered in this chapter are important to you, whether you ----------------------
are a future advertising practitioner or a consumer of advertising. The ----------------------
content will increase your professional awareness to prepare for the
advertising profession, and provide you with a practical understanding of ----------------------
advertising regulations.
----------------------
 Advertising has come to stay as a part of the modem economic system
and present-day society. Communicating to consumers about the vast ----------------------
variety of goods and services available, is obviously impossible without
advertising. Emerging lifestyles and patterns of buyer behaviour call ----------------------
for such communication in the interest of prospective buyers. Besides, ----------------------
advertising is not merely a means of communication about inessential
goods. It can be manipulative. ----------------------
 Thus, advertising first informs a customer about the various choices ----------------------
available in the market. Secondly, advertising happens to be the most
economical tool for disseminating information to the prospective ----------------------
audience, whether it is selling a product or promoting a social cause.
Thirdly, advertising is an inseparate part of free speech. Any restriction ----------------------
on the legitimate light to recommend goods and services will diminish ----------------------
the fundamental right of freedom of speech. Fourthly, advertising can
contribute in economic development by promoting saving, investment, ----------------------
production and employment. Lastly, advertising helps in marketing. But
then, we cannot turn a blind to certain negative dimensions of advertising. ----------------------
It promotes a kind of lifestyle which may not be liked by all segments of ----------------------
society. It increases the cost of goods sold to the customer. It is wasteful,
considering that only a small section of the audience is exposed to the ----------------------
media and may relate to the products being advertised. Advertising may
----------------------

Notes encourage unsound or false values, especially through its effect on children
and youth. It creates an emotional appeal which may be considered not
---------------------- rational. And finally, advertising can, instead of promoting competition,
endanger it. Big advertisers can monopolise the market.
----------------------
 Our judgments about how good or bad advertising is for society are the
---------------------- result of a complicated set of cultural philosophies, personal expectations
and preferred methods of ethical reasoning.
----------------------
 There are many other ethical arguments related to advertising, some more
---------------------- persuasive than others.
----------------------
Keywords
----------------------
●● Deceptive advertising: The advertising intended to mislead consumers
---------------------- by falsely making claims, by failure to make full disclosure or by both.
---------------------- ●● Negative advertising: The use of advertising messages that concentrate
on pointing out undesirable aspects of competing products, services,
---------------------- organisations or ideas. This technique is frequently used in political
---------------------- advertising to attack opposing politicians and political ideas.
●● Puffery: 1. (advertising definition) An exaggerated advertising claim
----------------------
that would be generally recognized as such by potential customers. 2.
---------------------- (consumer behavior definition) An advertising term implying gross
exaggeration but usually not considered deception because it is assumed
---------------------- not to be believable. Examples are the mile-high ice cream cone or the
world’s softest mattress. 3. (sales definition) The exaggerated statements
----------------------
made by a salesperson about the performance of a product or service.
---------------------- ●● Subliminal advertising: Advertising messages that are supposedly
disguised so that they are not able to be overtly seen and/or heard yet are
----------------------
nevertheless effective in persuading members of the audience.
---------------------- ●● Surrogate advertising: To choose in place of another, substitute.
Advertising messages where the brand is not mentioned but only implied.
----------------------
●● Global advertising: The use of advertising appeals, messages, art, copy,
---------------------- photographs, stories, and video and film segments on a global scale.
---------------------- ●● Social advertising: The advertising designed to educate or motivate
target audiences to undertake socially desirable actions.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
1. Discuss one campaign where you feel the advertising is manipulative.
List the reasons. ----------------------
2. Make a study of the negative impact of advertising on children or women.
----------------------
Give as many examples as possible.
3. Find out the laws and regulations governing advertising bodies in India. ----------------------
Present a case study where a campaign was affected by the laws. ----------------------
4. Make a study of the negative impact of advertising on children or women.
Give as many examples as possible. ----------------------
5. What are the recent developments on the ban on cigarette and liquor ----------------------
advertising in India?
----------------------
Answers to Check your Progress ----------------------

1. False
----------------------
2. True
----------------------
3. True
4. True ----------------------
5. True ----------------------
Fill in the blanks.
----------------------
1. The main purposes for advertising regulation are to protect competition
and protect consumers from economic or physical harm. ----------------------
----------------------
Suggested Reading
----------------------
1. Clown, Kenneth and Bach, Donald. Integrated Marketing Communications.
----------------------
----------------------
PHI ----------------------
5. Irwin. International Edition - Contemporary Advertising. McGraw Hill
----------------------
----------------------
7. Jones, John. International Advertising. SAGE publications.
----------------------

Notes
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What is Public Relations
UNIT
9
Structure:
9.1 Introduction
9.2 Understanding Public Relations
9.3 History of Public Relations
9.4 Public Relations and Democracy
Summary
Keywords
Suggested Reading
What is Public Relations 249

Notes
Objectives
----------------------
----------------------
• Define Public Relations.
----------------------
• State the industry of public relations and its place in communications.
---------------------- • Recognise the importance of PR in a democracy and across cultures.
---------------------- • Explain the history of PR through ancient times and its growth in
India and abroad.
----------------------
----------------------
9.1 INTRODUCTION
---------------------- It has often been said that the business of business is to make profits.
However, behind making profits, there lies a more fundamental function of
---------------------- business that is vital for the business of business. That fundamental function of
business is communication. Imagine if there was no communication in a business
---------------------- organisation; would there be any function at all? Therefore, it would not be out
---------------------- of place to state that to accomplish the business of business communication is
essential. Communication is the very essence of business.
---------------------- Communication is very closely associated with human behaviour.
---------------------- Understanding of human behaviour enables us to apply its principles to
communication psychology. Psychologists study individual behaviour;
---------------------- sociologists study group behaviour; and anthropologists study cultural behaviour.
These studies have provided us with theories that are useful in understanding
---------------------- human behaviour.
---------------------- Remember, all behaviour is communicative; and communication is the
index of our behaviour. Therefore, developing communication skills implies
----------------------
transformation of our behavioural pattern. This transformation is not an easy
---------------------- task, but a conscious and a deliberate act.
Therefore, the way a corporation behaves is today a studied art the art of
----------------------
corporate communication management. It monitors its relationships with all its
---------------------- public.
---------------------- 9.2 UNDERSTANDING PUBLIC RELATIONS

----------------------
People often talk about Public Relations without knowing exactly what it
---------------------- is.
Most people believe that the Public Relations involves being nice to
----------------------
people from whom you have to get work done like – journalists, government
---------------------- officials… or even your parents!
Public Relations involves a lot more than only being nice to people and
----------------------
we shall explore it in the following pages.
----------------------

Another impression people have of the Public Relations profession is Notes
through their interaction with a PRO or liaison officer. The PRO at the railway
station or in a government office is the person who comes to mind. We think of ----------------------
the person as a go between the boss and the rest of the world! The term PRO
unfortunately has become synonymous with a person who wines and dines with ----------------------
other people and awards favours or receives favours. ----------------------
To get a clearer picture of what Public Relations is and who are the people
----------------------
who are a part of this profession, let us look at some of the definitions.
Definitions ----------------------
‘Public Relations professional, counted over 500 different definitions for ----------------------
Public Relations!’ – Rex Harlow
----------------------
What is the reason for the presence of so many different definitions?
The most important reason is that Public Relations as an industry is fairly ----------------------
young, unlike other communication industries like advertising. ----------------------
It has been growing rapidly and in different directions. It is yet to reach
maturity like the advertising industry, where you can put a finger on it and say ----------------------
this is what it is. ----------------------
Also, unlike the advertising industry, which has certain governing bodies
----------------------
like the Advertising Association of India, that oversee the practice of advertising
and lay down certain codes of ethics, Public Relations does not have a strong ----------------------
industry association to guide its growth in a controlled manner.
----------------------
Therefore, a lot of people have defined Public Relations as they practice
it themselves. Many people practice it in different ways. ----------------------
“Public Relations is the management function that identifies, establishes ----------------------
and maintains mutually beneficial relationships between an organisation and
the various publics on whom its success or failure depends.” ----------------------
Let us try and break up this definition into two parts to understand it ----------------------
better.
Management Function ----------------------
All communication disciplines, whether it is Advertising or Direct ----------------------

Marketing or Event Marketing, help people buy and sell products and services.
----------------------
It is generally the seller who employs different communication disciplines
to reach the buyer. For example, Maruti Udyog sells automobile vehicles and ----------------------
therefore runs advertisements: on TV; in newspapers, magazines, hoardings
----------------------
…etc. to inform potential buyers about the vehicles they manufacture and
encourages them to buy. ----------------------
To be able to reach the buyer in as efficient a manner as possible,
----------------------
companies develop Business Plans.
From their business plan, they develop a Marketing plan and from the ----------------------
Marketing plan, a Marketing Communication Plan is made. ----------------------

Notes Under the marketing communications plan, companies decide how they
will manage their three Key Resources-Money, People and Time-towards
---------------------- communicating about selling their products profitably.
---------------------- Under Marketing Communications fall – Public Relations, Advertising,
Direct Mail, Promotions, Event Marketing… and other communication
---------------------- disciplines.
---------------------- To be able to make the best use of the benefits offered by each of these
communication disciplines, the seller has to manage the three key resources-
---------------------- money, people and time - and allot them accordingly.
---------------------- The term management function in the Public Relation definition, therefore,
suggests that it is senior management, not junior management that is responsible
---------------------- for the planning and implementation of a Public Relations program. That is how
important it is!
----------------------
“…identifies, establishes and maintains mutually beneficial
---------------------- relationships between an organisation and the various publics on whom its
---------------------- success or failure depends.”
The second part of the definition describes Public Relations as a process
---------------------- that has to first find out (identify) the people who can make a difference to their
---------------------- business success.
After having found that out, the next step is to make contact with these
---------------------- people and make them understand the benefit of working together. For example,
---------------------- one such group might be people seeking jobs. Establishing the relationship
would involve making them understand that if they work hard for a company,
---------------------- they will be paid well and be well looked after.
---------------------- Maintaining the relationship simply means that you are interested
in a long-term association and, therefore, are willing to make the necessary
---------------------- commitments to keep the other person satisfied with you.
---------------------- Again if we pick up the example of people working with you, this would
mean offering them promotions, salary increases, training opportunities,
---------------------- perks… to motivate them and make them appreciate that you are serious about
maintaining the relationship.
----------------------
The next part of the definition is, “mutually beneficial relationships
---------------------- between an organisation and the various publics on whom its success or
---------------------- failure depends.”
Mutually beneficial establishes very clearly that there is a ‘give and take’
---------------------- in every relationship. Very few people would do something for nothing.
---------------------- All of us are motivated in our human relationships by the promise of a
return –whether it is monetary (money), emotional return (respect/love…) or
---------------------- any other.
---------------------- Therefore, in Public Relations programs, great emphasis is placed
on ensuring that other people or publics (groups of people) are satisfied and
---------------------- constantly motivated to continue the relationship.

Let us now define the term Publics. These are the people on whom the Notes
success or failure of your effort depends.
The Publics vary for every company or organisation or even individual, ----------------------
but by and large in the business context you have some broad categories of ----------------------
publics.
These are firstly Internal publics and secondly External publics. ----------------------
Internal publics are those people who work for your organisation and are ----------------------
part a of it, like the proprietors, management and work force.
----------------------
The external publics are those people outside your organisation, who can
affect the success or failure of your efforts. ----------------------
Some of these are investors, government, media, suppliers, trade ----------------------
associations etc.
----------------------
Let us take suppliers as a public for instance. Say you are a builder and
one of your suppliers is Birla Cement. There is a shortage of cement in the ----------------------
market and you know that if you do not get your supply of cement your building
project will be delayed. Now, if you have a good relationship with Birla Cement ----------------------
they may continue to supply you while they have stopped supplying or reduced
supplies to their other customers. ----------------------
On the other hand, if you do not have a good relationship with Birla ----------------------
Cement you will be the first person that they would stop supplying to.
----------------------
Now that we have a fair understanding of what Public Relations is all
about, let us go through its history and see how it was practised in the past. ----------------------
Understanding More Definitions ----------------------
One of the earliest definitions of PR was coined by Edward Bernays.
----------------------
According to him, “Public Relations is a management function which tabulates
public attitudes, defines the policies, procedures and interest of an organisation, ----------------------
followed by executing a program of action to earn public understanding and
acceptance.” ----------------------
According to two American PR professionals Scott M. Cutlips and ----------------------
Allen H. Center, “PR is a planned effort to influence opinion through good
character and responsible performance based upon mutual satisfactory two-way ----------------------
communication.”
----------------------
What is Public Relations?
----------------------
 Public Relations is a deliberate, planned and sustained effort to develop,
establish and maintain two-way communication between an organisation ----------------------
and the public. It could be also described as a management communication
resource which uses communication techniques and tools to create the ----------------------
right environment for a product, business or service.
----------------------
 Public relations is the art and science of managing communication between
an organisation and its key public constituents to build, manage, and sustain ----------------------
its positive image. ----------------------

Notes  Public relations is the process of aligning the perceptions of targeted
audiences (or publics) with the current realities and reasonable prospects
---------------------- of another entity.
----------------------  Public relations is about building public relationships.
 It is business of generating goodwill toward an individual, cause, company,
----------------------
or product.
----------------------  The act of communicating what you are to the public. This is not to
be confused with publicity, which is just one of the methods used in
----------------------
communicating the image.
----------------------  Any activity, communications, or press coverage that is designed to
---------------------- enhance the prestige or goodwill of a company.
 Many activities or events that help promote a favourable relationship
---------------------- between a company and its customers and prospects; activities used to
---------------------- influence the press to print stories that promote a favourable image of a
company and its products or services.
----------------------  The promotion of a person, company, idea, public body etc. Pictures may
---------------------- be used to assist in this.
 Communication with various sectors of the public to influence their
----------------------
attitudes and opinions in the interest of promoting a person, product, or
---------------------- idea.
 An activity meant to improve the project organisation’s environment in
----------------------
order to improve project performance and reception.
----------------------  Marketers engage in public relations to develop a favourable image of their
---------------------- organisations in the eyes of public –public at large, customers, suppliers
government, media, competitors, shareholders, employees and the society.
----------------------
 Includes professional services for promoting products by arranging
---------------------- opportunities for exposure in the media.
----------------------  A deliberate, planned and sustained effort to institute and maintain mutual
understanding between an organisation and its publics (Institute of Public
----------------------
Relations’ definition).
----------------------  A promotion intended to create goodwill for a person or institution.
----------------------  Public relations (PR) deals with influencing public opinion, through the
---------------------- presentation of a client’s image, message or product.
Why PR?
----------------------
Public image is important to all organisations and prominent
---------------------- personalities. PR workers put together information that keeps the public aware
---------------------- of the organisation’s accomplishments and keeps management aware of public
attitudes.
----------------------

Who does PR? Notes
The PR function is carried out by:
----------------------
i) Independent PR agencies.
----------------------
ii) Corporate communication/PR division of business firms, corporate sector,
governmental and non governmental organisations ----------------------
Public relations involves ----------------------
i) Evaluation of public attitudes and opinions. ----------------------
ii) Formulation and implementation of an organisation’s procedures and
----------------------
policy regarding communication with its publics.
iii) Coordination of communications programs. ----------------------
iv) Developing rapport and goodwill through a two way communication ----------------------
process.
----------------------
v) Fostering a positive relationship between an organisation and its public
constituents. ----------------------
Some examples include: ----------------------
 Corporations use marketing public relations (MPR) to convey information ----------------------
about the products that they manufacture or services that they provide to
potential customers to support their direct sales efforts. Typically, they ----------------------
support sales in the short and long term, establishing and burnishing the ----------------------
corporation’s branding for a strong, ongoing market.
----------------------
 Corporations also use public relations as a vehicle to reach legislators and
other politicians, seeking favourable tax, regulatory, and other treatment, ----------------------
and they may use public relations to portray themselves as enlightened
----------------------
employers, in support of human resources recruiting programs.
 Non-profit organisations, including schools and universities, hospitals, ----------------------
and human and social service agencies, use public relations to support ----------------------
awareness programs, fund-raising programs, staff recruiting, and to
increase patronage of their services. ----------------------
 Politicians use public relations to attract votes and raise money, and, when ----------------------
successful at the ballot box, to promote and defend their service in office,
----------------------
with an eye to the next election or, at career’s end, to their legacy.
----------------------
PR has had many definitions over the years. Since its early boom days
of the 1980s it has almost entirely redefined itself. This is probably because ----------------------
most clients these days are far too media-savvy to think that fluffy ideas and
champagne parties constitute good media service. ----------------------
PR, these days is often misunderstood, and it is probably the fault of the ----------------------
PR industry itself that most people are not sure where PR is supposed to stop ----------------------
and marketing, advertising, branding and all the other media services begin.

Notes Simply put, good PR encourages the media (newspapers, magazines,
TV and radio) to say good things about your product/service that you want to
---------------------- promote, so that more people buy your product/use your services.
---------------------- Of course, most PR companies have a team that will come from a mixture
of media backgrounds and may be able to offer all sorts of PR-related services
----------------------
such as branding, marketing, copywriting and advertising.
---------------------- In house PR or Consultancy?
---------------------- i) In-house PR functions
---------------------- Public relations personnel are involved in:
----------------------  Problem analysis for clients or management, setting goals and planning PR
activities within an agreed budget
----------------------
 Compiling reports, issuing press statements, preparing speeches/articles,
---------------------- publishing newsletters/ brochures/ annual reports/ leaflets and getting
---------------------- audio tape/ film and video production
----------------------  Controlling and liasoning with media, being updated on all the quickest
forms of global communication in use
----------------------
 Organising and attending interviews, meetings, presentations and
---------------------- conferences, events, press launches, news conferences, exhibitions, trade
fairs etc
----------------------
 Coordinating market research through surveys, interviews and opinion
---------------------- polls.
---------------------- ii) Consultancy
---------------------- PR consultancies take up all types of clients, corporate, financial, consumer,
business to business and public affairs.
----------------------
PR agencies
----------------------
A PR agency in structure resembles an ad agency. It includes client servicing,
---------------------- media, and research departments.
----------------------  Client servicing involves handling clients’ accounts for all PR services.
This involves devising PR strategy based on the complete understanding
----------------------
of the clients’ operations and goals, managing interactions with the media,
---------------------- issuing press briefs, making media presentations and coordinating with all
forms of media.
----------------------
 Agencies provide public relation counsel.
----------------------
 Researching and conducting surveys is an ongoing activity in all agencies.
----------------------
 Crisis management as a PR function is also gaining significance
----------------------

9.3 HISTORY OF PUBLIC RELATIONS Notes
Getting and keeping a good reputation is the primary purpose of Public ----------------------
Relations.
----------------------
As a profession, Public Relations (usually called PR) is a 20th-century
development. ----------------------
But the reason for it has been well understood for many centuries. ----------------------
A writer of the Biblical Proverbs stated, “A good name is more to be
----------------------
desired than great riches.” The Greek philosopher Socrates was closer to
understanding today’s PR when he said, “The way to a good reputation is to ----------------------
endeavour to be what you desire to appear.”
----------------------
Public Relations is based on the simple fact that people have opinions
of each other and of government and other institutions. Therefore, individuals, ----------------------
corporations, government officials, schools, religious organisations and every
other type of institution desires to be accepted by the public on the best possible ----------------------
terms.
----------------------
Public Relations is often compared to and sometimes confused with
marketing. Although they use similar techniques, their goals are different. ----------------------
Marketing, which includes advertising and promotion, intends to sell products
----------------------
and services.
Public Relations is an image-creation business, trying to sell persons, ----------------------
government policies, corporations and other institutions. ----------------------
A book by Joe McGinniss, on the presidential race between Richard
Nixon and Hubert Humphrey was called ‘The Selling of the President, 1968’ ----------------------
because it is about the PR tactics used to promote the two candidates. ----------------------
At its best, Public Relations works in two directions. It attempts to make
a person or organisation responsive to public expectations. At the same time, it ----------------------
tries to persuade the public to respond in a favourable way. ----------------------
When successful, a good PR presents an image that corresponds to the reality.
----------------------
Ancient origins
----------------------
Origins, ancient civilisations and medieval society offer glimpses at
activities that are similar to Public Relations. ----------------------
Ptah-hotep, the advisor to one of the ancient Egyptian pharaohs, wrote ----------------------
around 2,200 BC, on the need for truthful communication, addressing audience
interests and acting in a manner consistent with what is being said. ----------------------
Archaeologists have found ancient bulletins and brochures in ancient ----------------------
Mesopotamia (present-day Iraq) dating to about 1,800 BC.
----------------------
These publications on stone tablets told farmers how to sow crops, irrigate
their fields, and increase their harvests. These were important goals for monarchs ----------------------
who wanted their followers to be well fed and happy, both requirements for a
stable empire. ----------------------

Notes In the 5th Century BC Greece, the practice of democracy required that
citizens could effectively argue their point of view.
----------------------
The Sophists taught the skills of speaking, often arguing whichever side
---------------------- of an issue hired them. Protagoras is one of the best-known sophist teachers.
Later, in the third century BC, the philosopher Socrates of Athens taught
----------------------
that rather than the relativism of the sophists, effective communication should
---------------------- be based on truth.
His student, Plato, carried on Socrates’ work. But it was Plato’s student,
----------------------
Aristotle of Athens, who has contributed most to contemporary communication
---------------------- thought.
---------------------- Aristotle analysed persuasive communication and taught others how to be

effective speakers, specifically by developing compelling and ethical arguments
---------------------- to offer verbal proofs. Aristotle’s book Rhetoric is influential to this day.
---------------------- The Roman General Julius Caesar, in the mid-first century B.C., sent
public reports back to Rome about his military and political victories in Gaul.
---------------------- Later, as ruler of Roman republic, he ordered the posting of Acta Diurna,
---------------------- which is regarded as the first public newsletter, to keep the citizenry informed.
Augustus became the first Roman emperor in 27 B.C. Augustus courted
----------------------
public opinion, realising that he needed the support of the people in order to
---------------------- reign successfully. One of his tactics was to commission the poet Virgil to write
The Aeneid , an epic poem which identifies Rome as the fulfilment of a divine
---------------------- plan and which depicts Augustus as being ordained by the gods to save and
rebuild Rome after the collapse of the republic.
----------------------
Religious origins
----------------------
Much of the history of public relations is linked with the growth and
---------------------- maintenance of religion.
---------------------- John the Baptist is recognised in the social history of Christianity as the
precursor, the advance man, who was effective in generating in his people an
---------------------- anticipation and enthusiasm for Jesus Christ.
---------------------- In the mid-first century, Peter and Paul led the Christian Apostles in their
use of many persuasive techniques, such as speeches, staged events, letters
---------------------- and oral teaching. Their aim was to increase interest in Christ, to increase
membership in the new religious movement, and to maintain morale and order
---------------------- among church members.
---------------------- Paul of Tarsus and the gospel writers Matthew, Mark, Luke and John
used the principles of interpretation and audience segmentation, each presenting
----------------------
essentially the same story, as it developed through a process of telling and re-
---------------------- telling, writing four different versions to appeal to the interests and needs of
four different audiences.
----------------------
The Roman Emperor Nero used the technique of orchestrating events
---------------------- when he blamed the burning of Rome on the Christians. It is an example of

telling your side of the story first so that any other versions are heard as being Notes
different from what people already have heard.
----------------------
The early Christian Church preserved and enhanced the concepts of
rhetoric. ----------------------
Use of Public Relations strategies and tactics was not limited to the
----------------------
Christian church. In the sixth century, in Northern Africa, the prophet Mohammed
sometimes retired to an out-of-the-way place to ponder problems facing his ----------------------
people, eventually emerging with writings that he identified as the word of
Allah, bestowing on the writings a credibility that led to easy acceptance by his ----------------------
followers. These writings eventually were assembled as the Koran. ----------------------
In the Middle Ages, the church applied principles of persuasive
----------------------
communication in an effort to recapture the lands of Christian origin.
Modern-day preachers and evangelists continue this tradition of persuasive ----------------------
communication for religious purposes. ----------------------
In England, John Wycliffe took his campaign for Church reform to the
----------------------
people in 1351, using illegal street lectures, pamphlets and books to win over
the common people to his cause. The priest became a writer for English royalty ----------------------
in its on-going feud with the clergy over church-state issues.
----------------------
Three hundred years after Wycliffe, another priest, Martin Luther,
courted public opinion through similar means and for similar purposes-and ----------------------
with greater success-when he posted his ideas on a church door in Germany,
----------------------
igniting what came to be known as the Protestant Reformation. The Catholic
Church responded with its own Counter Reformation. Both sides used common ----------------------
Public Relations techniques such as speeches, books and pamphlets, third-party
endorsement, orchestrating the message, popular spokespersons and so on. ----------------------
Pope Gregory XV popularised the word “propaganda” in 1622, when ----------------------
he established the Congregatio de Propaganda Fide (Congregation of the
Propagation of the Faith) to spread the church’s message in non-Christian lands. ----------------------
The term then was an honourable one. It did not take on negative connotations ----------------------
until three hundred years later, when the Nazis used it with a monumental
disregard for honesty and ethics and later when it became associated with the ----------------------
Cold War.
----------------------
In the 20th Century, religious organisations continue to use Public
Relations strategies and tactics. ----------------------
Churches and synagogues, as well as religious organisations such as ----------------------
dioceses and districts, employ their own Public Relations people; the Religious
Public Relations Council is the oldest professional association of Public ----------------------
Relations practitioners in North America, older even than the Public Relations
Society of America. ----------------------
Politics and religion often merged in medieval Europe, especially as the ----------------------
Renaissance brought about a new appreciation for the notion of public opinion.
----------------------

Notes Niccolo Machiavelli in 1513 wrote The Prince and later Discourses, in
which he discussed what is now called issues management and explained his
---------------------- techniques for how public opinion can be manipulated by fair or foul means for
political purposes.
----------------------
During Colonization
----------------------
A somewhat humorous detour on the road of Public Relations history lies
---------------------- in some of the exaggerations, often not even plausible, which have accompanied
what today we would call real estate promotion.
----------------------
Erik (The Red) Thorvaldson discovered an uninhabited land of ice and
---------------------- snow in the North Atlantic. He named it Greenland to attract settlers, whom he
led there in A.D 985. The name was indeed misleading, for the ice melts for
---------------------- only a few months a year even in the southern coastal land.
---------------------- In 1584, Sir Walter Raleigh sent glowing reports to England about
Roanoke Island off present-day North Carolina. His aim was to persuade other
---------------------- settlers to join this first British colony in North America. Actually the island was
---------------------- largely swampland. Food was scarce and sickness was prevalent. The colony
was abandoned within two years.
---------------------- Later the press in the Eastern United States promoted westward expansion
---------------------- with a glorified view of life on the frontier.
One can imagine future generations greeted by similar exaggerations
---------------------- about undersea colonies or the first settlements on the moon. Hopefully
---------------------- tomorrow’s Public Relations practitioners will exercise more ethical control
than their earlier forerunners.
----------------------
In Colonial America
---------------------- American colleges have led the way in the use of publicity to promote
higher education.
----------------------
Harvard College in 1641 developed the first fund-raising brochure,
---------------------- New England’s First Fruits, as part of the first fund-raising campaign. Three
---------------------- preachers from the college in England begging for support for Harvard had
asked for a pamphlet to explain the financial needs of the college.
---------------------- King’s College (now Columbia University) sent out an announcement of
---------------------- its 1758 graduation ceremonies, and several newspapers printed this information.
This is believed to be the first instance of a news release.
---------------------- Persuasive communication has been at the heart of much of western social
---------------------- and political development. It is a fundamental element of democracy that played
a major role in the American campaign for independence from Britain, perhaps
---------------------- the best early example of a comprehensive use of public relations techniques.
---------------------- Samuel Adams is credited as the chief Public Relations strategist of the
movement for independence. His legacy includes the following Public Relations
---------------------- strategies and tactics:
----------------------

 using anniversaries as news pegs for publicity Notes
 creation of activist organisations (Sons of Liberty) and support groups
----------------------
(Caucus Club)
 letters to opinion leaders from the Committees of Correspondence ----------------------
 staged events such as the Boston Tea Party and hangings in effigy ----------------------
 a sustained campaign lasting several years ----------------------
 symbols such as the Liberty Tree
----------------------
 leaks to the Press
----------------------
 publications (85 Federalist Papers; the pamphlet Common Sense written
by Thomas Paine) ----------------------
 orchestrating the message, with a strategy of “Put your enemy in the wrong ----------------------
and keep him there”
----------------------
 promoting and elaborating events such as the Boston Massacre
----------------------
 a campaign theme of “the doctrine of natural rights”
 use of all existing communication tools in what would be called a multi- ----------------------
media campaign today ----------------------
 newspaper essays
----------------------
 ghost writing and a steady flow of articles under pseudonym
----------------------
 speeches
----------------------
 personal correspondence
 word of mouth planted by personal visits to taverns ----------------------
 meetings ----------------------
 parades ----------------------
 songs ----------------------
 posting of notices
----------------------
Conclusion: Public opinion is stronger than legal right or military might.
----------------------
Four Periods in the Modern Development of PR
----------------------
Based on their research and theory, Grunig & Hunt presented four models
of Public Relations corresponding to four periods in the modern development ----------------------
of Public Relations.
----------------------
These models and eras are:
Publicity (or Press Agentry model, in Grunig & Hunt’s terms) ----------------------
Information (Public Information model) ----------------------

Advocacy (Asymmetrical model) ----------------------

Notes Relationship (Symmetrical model)
a) Publicity Era (1800s)
----------------------
Focus: Dissemination and attention-getting
----------------------
Nature of Communication: One-way
---------------------- Research: Little
---------------------- Current Use: Entertainment, Sports, Marketing
---------------------- In the 1820s, Amos Kendall, a Kentucky newspaper editor, became
essentially the first presidential press secretary. He worked in support of Andrew
---------------------- Jackson during Jackson’s election campaign and his term as president. Kendall
conducted polls; wrote speeches, news releases, pamphlets; distributed reprints
---------------------- of other favourable articles reprints; and advised Jackson on image and strategy.
---------------------- The opening of American West provided many opportunities for Public
Relations messages to influence people living along the Atlantic coast to
----------------------
migrate west. Many of these messages were exaggerated, such as the legend of
---------------------- Daniel Boone, so important to the settlement of Kentucky, and later the stories
of Buffalo Bill Cody, Wyatt Earp and Calamity Jane that induced settlers to
---------------------- the territories west of the Mississippi.
---------------------- Social reform in the second half of the 19th century also relied heavily
on classic Public Relations techniques. The movement to abolish slavery
---------------------- included strategies such as personalising the issue (as Harriet Beecher Stowe
did so well with her novel Uncle Tom’s Cabin) and social activism (such as
----------------------
Harriet Tubman, who led midnight escapes of slaves and then spoke about
---------------------- it in the North). The abolition movement involved other strategies: third-party
endorsement, appeal to justice and moral authority, etc. It employed tactics such
---------------------- as publications, public speaking, rallies and so on.
---------------------- The temperance movement to abolish liquor and the suffrage movement
to gain women the right to vote were other successful social reform movements
---------------------- that employed similar public relations strategies and tactics.
---------------------- The Bryan-McKinley presidential campaign of 1896 was the first to mount an
all-out effort of public opinion. It used posters, pamphlets and news releases;
---------------------- it used public meetings and speeches at whistle stop train visits throughout the
---------------------- country.
b) Information Era: Early 1900s
----------------------
Focus: Honest and accurate dissemination of information
----------------------
Nature of Communication: One-way
---------------------- Research: Readability, Comprehension
---------------------- Current Use: Government, Nonprofit organisations, Business organisations
---------------------- The public information era of public relations saw the founding of many
agencies and departments whose purpose was to provide the public with accurate,
---------------------- timely, honest, and favourable information about an organisation or client.

A pivotal figure in this era was Ivy Ledbetter Lee, known as the first Notes
Public Relations practitioner. Among his contributions to the field was his
‘Declaration of Principles,’ which called for honest communication with the ----------------------
public on behalf of a client.
----------------------
During this period, the following ‘firsts’ were observed:
----------------------
1900: First Public Relations agency (Boston)
1904: University of Penna. Publicity bureau ----------------------
1905: YMCA Publicity bureau ----------------------
1906: Penn Railroad & Ivy Lee ----------------------
1906: Standard Oil hired a Publicist
----------------------
1907: Marine Corps Publicity bureau
----------------------
1908: Ford employee newsletter
1908: AT&T Public Relations department ----------------------
1908: American Red Cross publicity program ----------------------
1914: Colorado Fuel and Iron hired Ivy Lee ----------------------
1917: Creel Committee on Public Information
----------------------
1918: National Lutheran Council press office
----------------------
1919: Knights of Columbus press office
1921: Sears and Roebuck public relations ----------------------
c) Advocacy Era (Mid-1900s) ----------------------

Focus: Modify attitudes and influence behaviour ----------------------
Nature of Communication: Two-way
----------------------
Research: Attitude and opinion
----------------------
Current Use: Competitive business organisations, causes and movements
During the middle part of the 20th Century, much of public relations ----------------------
activity, both research and practice, was built on the advocacy model, in which ----------------------
organisations tried to influence the attitudes and behaviours of their publics.
Much of the communication research was related to the war-time interest in ----------------------
propaganda, brainwashing and social manipulation. In the post-war era, many
researchers and practitioners continued to explore their interests in persuasive ----------------------
communication. ----------------------
The following are some of the highlights associated with this era:
----------------------
1922: Walter Lippman wrote Public Opinion
----------------------
1923: Edward Bernays wrote Crystallizing Public Opinion
1922: Bernays taught the first college class in Public Relations (at New York ----------------------
University)
----------------------

Notes Social reform continued to be a key impetus for public relations activity
and many techniques were successfully employed on behalf of issues such
---------------------- as child labour, workers’ camp, prostitution, regulation of big business, food
safety and other early consumer issues. The government was also using Public
---------------------- Relations techniques.
---------------------- The Creel Committee on Public Information, which was active during
the First World War, was replaced during the Second World War by the Office
----------------------
of War Information (OWI). The OWI was a precursor to the United States
---------------------- Information Agency (USIA), which later became the Office of International
Information Programs (OIIP) of the State Department. The Voice of America
---------------------- radio system was established.
---------------------- Modern precursors to public relations are found in publicists who
specialised in promoting circuses, theatrical performances, and other public
---------------------- spectacles. In the United States, where public relations has its origins, many
early PR practices were developed in support of the expansive power of the
----------------------
railroads. In fact, many scholars believe that the first appearance of the term
---------------------- ‘public relations’ appeared in the 1897 Year Book of Railway Literature.
Later, PR practitioners were–and are still often–recruited from the
----------------------
ranks of journalism. Some reporters, concerned with ethics, criticise former
---------------------- colleagues for using their inside understanding of news media to help clients
receive favourable media coverage.
----------------------
Despite many journalists’ discomfort with the field of public relations,
---------------------- well-paid PR positions remain a popular choice for reporters and editors forced
into a career change by the instability of the print and electronic media industry.
---------------------- PR historians say that the first PR firm, the Publicity Bureau, was established in
---------------------- 1900 by former newspapermen, with Harvard University as its first client.
The First World War also helped stimulate the development of public
---------------------- relations as a profession. Many of the first PR professionals, including Ivy Lee,
---------------------- Edward Bernays and Carl Byoir, got their start with the Committee on Public
Information (also known as the Creel Commission), which organised publicity
---------------------- on behalf of U.S. objectives during World War I. Some historians regard Ivy
Lee as the first real practitioner of public relations, but Edward Bernays is
---------------------- generally regarded as the profession’s founder. In describing the origin of the
---------------------- term public relations, Bernays commented, “When I came back to the United
States, I decided that if you could use propaganda for war, you could certainly
---------------------- use it for peace. And propaganda got to be a bad word because of the Germans
using it. So what I did was to try to find some other words, so we found the
---------------------- words Council on Public Relations.”
---------------------- Ivy Lee, who has been credited with developing the modern news release
(also called a ‘press release’), espoused a philosophy consistent with what has
---------------------- sometimes been called the ‘two-way street’ approach to public relations, in
---------------------- which PR consists of helping clients listen as well as communicate messages to
their publics. In the words of the Public Relations Society of America (PRSA),
---------------------- “Public relations helps an organisation and its publics adapt mutually to each

other.” In practice, however, Lee often engaged in one-way propagandising on Notes
behalf of clients despised by the public, including Standard Oil founder John D.
Rockefeller. Shortly before his death, the US Congress had been investigating ----------------------
his work on behalf of the controversial Nazi German company IG Farben.
----------------------
Bernays was the profession’s first theorist. A nephew of Sigmund Freud,
Bernays drew many of his ideas from Freud’s theories about the irrational, ----------------------
unconscious motives that shape human behaviour. Bernays authored several
----------------------
books, including Crystallising Public Opinion (1923), Propaganda (1928),
and The Engineering of Consent (1947). Bernays saw public relations as an ----------------------
‘applied social science’ that uses insights from psychology, sociology, and other
disciplines to scientifically manage and manipulate the thinking and behaviour of ----------------------
an irrational and ‘herdlike’ public. “The conscious and intelligent manipulation
----------------------
of the organised habits and opinions of the masses is an important element
in democratic society,” he wrote in Propaganda. Those who manipulate this ----------------------
unseen mechanism of society constitute an invisible government, which is the
true ruling power of our country. ----------------------
One of Bernays’ early clients was the tobacco industry. In 1929, he ----------------------
orchestrated a legendary publicity stunt aimed at persuading women to take up
cigarette smoking, which was then considered in appropriate. ----------------------
Bernays arranged for New York City débutantes to march in the Easter ----------------------
Day Parade, defiantly smoking cigarettes as a statement of rebellion against
the norms of a male-dominated society. Photographs of what Bernays dubbed ----------------------
the “Torches of Liberty Brigade” were sent to newspapers, convincing many
----------------------
women to equate smoking with women’s rights. Some women went so far as to
demand membership in all-male smoking clubs, a highly controversial act at the ----------------------
time.
----------------------
In 1950 the PRSA enacted the first “Professional Standards for the Practice
of Public Relations,” a forerunner to the current Code of Ethics, last revised in ----------------------
2000 to include six core values and six code provisions. The six core values
are ‘Advocacy, Honesty, Expertise, Independence, Loyalty, and Fairness.’ The ----------------------
six code provisions are ‘Free Flow of Information, Competition, Disclosure of ----------------------
Information, Safeguarding Confidences, Conflicts of Interest, and Enhancing
the Profession.’ ----------------------
Meanwhile, the era saw the development of many Public Relations ----------------------
agencies and departments. Among the better known historical figures are
agency founders Edward Bernays, Carl Byoir, Leona Baxter and Clem Whitaker ----------------------
(political Public Relations), and Henry Rogers (entertainment Public Relations).
----------------------
d) Relationship Era (Late 1900s)
----------------------
Focus: Mutual understanding and conflict resolution
Nature of Communication: Two-way ----------------------
Research: Perception, values ----------------------
Current Use: Regulated business, government, nonprofit organisations, ----------------------
social movements

Notes The latter part of the 20th century and the beginning of the 21st has
spawned a new approach to Public Relations, which complements the earlier
---------------------- three approaches of publicity, public information and advocacy. This new
relationship model is built on the principles of communication as listening and
---------------------- on conflict resolution and the mutual benefits of both organisations and their
---------------------- publics.
In 1982, effective Public Relations helped save the Johnson & Johnson
----------------------
corporation, after the highly publicised Tylenol positioning crisis.
---------------------- In the civil world, this relationship approach has been seen in concepts
such as détente and rapprochement. In the religious world, the ecumenical
----------------------
movement and inter-religious dialogue are examples of the relationship model.
---------------------- In the business world, public-private partnerships are becoming common.
In all of these situations, Public Relations is becoming more research based
----------------------
and more of a function of the management and leadership of an organisation,
---------------------- rather than simply the implementation of communication tactics.
---------------------- Meanwhile, new technologies such as the Internet that allow organisations
to communicate directly with their publics, combined with the fragmentation of
---------------------- the so-called mass media, have created new opportunities for Public Relations
practitioners.
----------------------
Trends within Public Relations
---------------------- At the beginning of the 21st Century, Public Relations is evolving in several
---------------------- ways:
... from manipulation to adaptation
----------------------
... from external to internal
----------------------
... from technician to manager
---------------------- ... from firefighting to fire prevention
---------------------- ... from mass media to targeted media
---------------------- 6. The industry today
According to the U.S. Bureau of Labour Statistics, there were
----------------------
approximately 122,000 public relations specialists in the United States in 1998,
---------------------- while there were approximately 485,000 advertising, marketing, and public
relations managers working in all industries. Public relations practitioners
---------------------- deliver information through the media to target audiences or, with the advent
of the Internet, directly to specific stakeholder groups. As similar opinions tend
----------------------
to be shared by a group of people rather than an entire society, research may be
---------------------- conducted to determine a range of things such as target audiences, appeal, as
well as strategies for coordinated message presentation. PR may target different
---------------------- audiences with different messages to achieve an overall goal. Public Relations
sets out to effect widespread opinion and behaviour changes.
----------------------
Modern public relations uses a variety of techniques including opinion
---------------------- polling and focus groups to evaluate public opinion, combined with a variety

of high-tech techniques for distributing information on behalf of their clients, Notes
including satellite feeds, the Internet, broadcast faxes, and database-driven
phone banks to recruit supporters for a client’s cause. ----------------------
According to the PRSA, “Examples of the knowledge that may be ----------------------
required in the professional practice of public relations include communication
arts, psychology, social psychology, sociology, political science, economics and ----------------------
the principles of management and ethics. Technical knowledge and skills are
----------------------
required for opinion research, public issues analysis, media relations, direct
mail, institutional advertising, publications, film/video productions, special ----------------------
events, speeches, and presentations.”
----------------------
Although public relations professionals are stereotypically seen as
corporate servants, the reality is that almost any organisation that has a stake ----------------------
in how it is portrayed in the public arena employs at least one PR manager.
Large organisations may even have dedicated communications departments. ----------------------
Government agencies, trade associations and other non-profit organisations
----------------------
commonly carry out PR activities.
Public relations should be seen as a management function in any ----------------------
organisation. An effective communication, or public relations, plan for an
----------------------
organisation is developed to communicate to an audience (whether internal or
external publics) in such a way the message coincides with organisational goals ----------------------
and seeks to benefit mutual interests whenever possible.
----------------------
7. Areas of Specialisation in Public Relations
A number of specialties exist within the field of public relations, including: ----------------------
 reputation management ----------------------

 issue management ----------------------
 labour relations
----------------------
 grassroots PR (sometimes referred to as astroturf PR)
----------------------
 property development PR
 real estate PR ----------------------
 retail sector PR ----------------------

 agricultural PR ----------------------
 food service PR
----------------------
 health care PR
----------------------
 technology/IT PR
 public affairs PR ----------------------
 on-line PR ----------------------
 financial/investor relations ----------------------
 employee/member communications ----------------------

Notes  community PR
 not-for-profit PR
----------------------
 crisis communication PR
----------------------
As industry consolidation becomes more prevalent, many organisations
---------------------- and individuals are choosing to retain ‘boutique’ firms as opposed to so-called
‘global’ communications firms. These smaller firms typically specialise in only
---------------------- a couple of practice areas and, thus, often have a greater understanding of their
client’s business. As they deal with certain journalists with greater frequency,
----------------------
specialty firms often have stronger media contacts in the areas that matter most
---------------------- to their clients.
---------------------- Added benefits of smaller, specialty firms include more personal attention,
accountability and cost savings. This is not to say that smaller is always better,
---------------------- but there is a growing consensus that specialty firms offer more than they what
they used to do.
----------------------

1. Public Relations is mainly being nice to people from whom you have
----------------------
to get work done.
---------------------- 2. The PR function is carried out by independent PR agencies and
corporate communication/PR division of organisations.
----------------------
3. Public relations is a management function in any organization.
----------------------
Fill in the blanks.
---------------------- 1. PR puts together information that keeps the ______ aware of the
---------------------- organisation’s accomplishments and keeps the _______ aware of public
attitudes.
----------------------
---------------------- Activity 1
----------------------
1. Contact one PR agency in your city and find out about the profile of
---------------------- that agency. What are its functions? Who are its major clients?
2. Find out three prominent personalities in PR in India today. Sketch
----------------------
their profile.
----------------------
---------------------- 9.4 PUBLIC RELATIONS AND DEMOCRACY

---------------------- Despite its name, public relations is not about relating to the public but
rather about ‘handling’ public perceptions.
----------------------

When there is an oil spill or an accident at a nuclear power plant or when Notes
someone’s image needs to be cleaned up, the PR people are called. It is not just
crisis management that PR is responsible for, though in its everyday functions, the ----------------------
industry often uses fake news, front groups, junk science and other tricks of the
trade that deliberately undermine public knowledge and hence, our democracy. ----------------------
A little history ----------------------

This power over our public perceptions is not accidental. Since its ----------------------
unofficial birth in the early 1900s, the PR industry has aimed to sell its bill of
goods to the public. One of the first PR men, Ivy Lee, represented Rockefellers ----------------------
among other clients. His tactics included openness toward the media, but he
----------------------
counselled his clients on how to shape their affairs so that the public would
approve. ----------------------
While Lee’s philosophy embraced transparency, Edward Bernays, often
----------------------
considered the founder of public relations, used PR as a means to manipulate
and control the public. Bernays claimed, “if we understand the mechanism and ----------------------
motives of the group mind,” it would be possible to “control and regiment the
masses according to our will without their knowing it …” These ideas held over ----------------------
to his view of society as a whole. He claimed that democracy was dangerous
----------------------
because it gave power to too many people who were not smart enough to make
decisions without benefit of elite oversight. ----------------------
Public relations is an old and noble profession, that can only flourish in a ----------------------
democracy. Most of the time we work on the mundane activities of trying to sell
a product, service, organisation or idea to people who seem not to care about it. ----------------------
But we are the essence of a free society, market economy and political ----------------------
democracy. We should start thinking about ourselves as such.
There has never been and there will never be a closed society with public ----------------------
relations. Totalitarian regimes may hire public relations services abroad, but ----------------------
they do not allow their subjects to freely practice PR.
----------------------
Even today, we can venture outside Europe and find regimes that are
restricting the free practice of public relations. All countries that are hostile ----------------------
towards public relations have one common deficiency: they are not
democracies. ----------------------
“Only democracy provides an institutional framework that permits reform ----------------------
without violence, and so the use of reason in political matters,” wrote Karl
Popper, about fifty years ago. The use of reason referred to by Popper is today ----------------------
facilitated by public relations.
----------------------
Public relations provides an essential component of contemporary free
society. Our societies are complex: they are composed of semi-autonomous ----------------------
subsystems: an economic, a political and, one of the latest to emerge in our ----------------------
globalised and mediated society, a communication subsystem.
The communication subsystem is dependent on several professions ----------------------
(journalism being the most visible and notorious) and public relations has a ----------------------
prominent role amongst them.

Notes No contemporary social communication system can fully develop without
the free and undisturbed practice of public relations.
----------------------
For 2,500 years, philosophers have discussed the nature of people and
---------------------- their societies. If what is good, just and virtuous can be discovered, then there
must be laws governing our fortunes and we are not free to construct desired
---------------------- realities as we like.
---------------------- It was Plato who articulated this position and it was he who proscribed
rhetoric, one of the predecessors of modern public relations.
----------------------
On the other hand, his pupil, Aristotle, acknowledged the conflicting and
---------------------- imperfect realities of human life, in which more is uncertain than certain, and
where people, in their social groups, need to negotiate what is right and what is
---------------------- wrong, where, when and under what conditions.
---------------------- Hugh Lawson-Tancred wrote in the Introduction of his translation of
Aristotle’s The Art of Rhetoric published by Penguin Classics:
----------------------
“In the societies of the early archaic age, the prevalent systems of government
---------------------- were either aristocracies or tyrannies. Neither of these was conductive to the
flowering of public debate. There is no great mystery in the fact that it took rise
---------------------- of democracies and otherwise open societies at Athens and elsewhere to create
---------------------- the climate in which public eloquence became a political indispensability. When
power was to be secured either by brute force or by the inheritance of authority
---------------------- from ancestors, there was little need for the politician to find convincing reasons
for the citizens to accept his politics.”
----------------------
Why was rhetoric so important for Athens? Lawson-Tancred explains:
----------------------
“All those who lived in the limelight of public opinion ran the constant
---------------------- risk of finding themselves before their fellow citizens, in highly unpredictable
mood, possibly needing to refute the most extravagant allegations against them
---------------------- mustered by their political or private enemies.”
---------------------- This was the background against which Aristotle envisioned a move for
rhetoric from a subject of philosophical to scientific study.
----------------------
We are the legitimate heirs of this indispensable element of democracy
---------------------- that first emerged in ancient Greece and that prospers worldwide today. We
have to understand our position in the world and we have to behave responsibly
---------------------- towards those who trust us: the general public with whom an open society rests.
---------------------- Public relations practice became a profession when it took over
responsibility for preserving the freedom of the public to be more intelligent
---------------------- than any single body or individual: government, corporation, scientist, or
---------------------- prophet. We are the guardians of common sense.
As such, we have special responsibilities to the general public.
----------------------
a) Firstly, to survive and to prosper we need to keep our open licence to
---------------------- operate - not only for our clients and organisations, but for the good of a
free society. We should never forget that this is the place for our existing
----------------------
and prospective clients, their partners and adversaries, other organisations,

audiences, markets, publics and targets; but out there also is a society that Notes
enables us to live as we like. We need to keep that society and preserve its
licence to operate. ----------------------
b) Secondly, we represent the reflexiveness of our free society in that we ----------------------
enable its members to live through its complexities without going mad. If
public relations influences 80% of mass media content, as social scientists ----------------------
claim, then we should understand that mass media cannot operate without
----------------------
public relations: journalism and public relations are co-dependent and
although they may clash from time to time; if one goes, the other also ----------------------
disappears.
----------------------
c) Thirdly, we have a responsibility to preserve and develop the way our
societies use reason in deliberating social change. A systematic study of ----------------------
public relations practice and, through it, a systematic study of contemporary
society is our professional responsibility – it is a part of what makes us ----------------------
professionals. We must preserve, develop and disseminate the knowledge
----------------------
that is essential for democracies to prosper.
Making the News ----------------------
PR firms become the media; or rather, the media become with their output laden. ----------------------
According to the public interest group PR Watch, up to 40 percent of the ----------------------
television news we see every day is PR. Video news releases have become a
standard tool for the PR industry to get its message across. ----------------------
VNRs (Video News Reports) are tight, pre-packaged bundles of ‘news’ ----------------------
that often make it directly to TV newscasts with little or no editing. Media aren’t
required to tell viewers that they are watching industry PR, making it seem as ----------------------
though an industrious reporter was responsible for the story and making it seem
as though the story itself is newsworthy. ----------------------
Recently, the White House came under fire for more than 20 different ----------------------
agencies making and sending tax-payer-funded VNRs to hundreds of local
----------------------
news stations around the country. The VNRs in question promoted Bush
administration policies and the Government Accountability Office called them ----------------------
a form of covert propaganda, which the administration denied.
----------------------
It develops thinking on the most important question facing PR today
– its relationship with democracy – and finds a balance of advantages and ----------------------
disadvantages which leave a residue of concern.
----------------------
This exciting new edition challenges the conventional thinking about
public relations and expands and updates the arguments put forward in the ----------------------
previous edition. It is designed to appeal to final year undergraduates, post
graduates and researchers studying public relations. ----------------------
Public relations practitioners have a crucial role to play in protecting and ----------------------
advancing the interests of democracy. They will, however, need to address at
least three specific issues in order to transform their capability to rise to the ----------------------
challenge of playing their role to the fullest. ----------------------

Notes Enhancing public trust in the political process is, of course, a long-term
project - not amenable to quick fixes or ‘eye-catching initiatives.’ But it is
---------------------- important to recognise that there are immediate, practical things that can be
done.
----------------------
Firstly, the mindset of the profession has to be engaged to the realities
---------------------- of 2007. It has recognise how it needs to adapt to the current context. When
the Institute of Public Relations was established in 1948, it was at the height
----------------------
of the Cold War; there was genuine concern that the West could be overrun
---------------------- by Communism and public relations was one of the tools which could defend
the ‘Western way of life’ of a society defined essentially by its free speech and
---------------------- democracy, as much as its capitalism.
---------------------- It was also a period of rationing – and that was not just of clothes,
petrol or chocolate. Information was also a rationed commodity. Even the
---------------------- most enlightened holder of information was restricted by the communication
channels available to them.
----------------------
We now live in a world not of rationing but of abundance. We now have
---------------------- information obesity. The challenge facing public relations practitioners is not
one about how to ensure that information is rationed in the most open way
----------------------
to encourage free speech and democracy. The challenge is how can we help
---------------------- our fellow citizens to be sophisticated consumers in an age of abundance, so
they can make the best choices available to them and be free of media and
---------------------- communications manipulation.
---------------------- The second issue is the need to be in the vanguard of attacking
‘convenience information’ - rather like the celebrity chef Jamie Oliver, who
----------------------
succeeded in being seen as leading the charge against convenience food. Public
---------------------- relations practitioners have to similarly, seize the mantle in the battle against
‘convenience communications’ and the risks this poses to democracy.
----------------------
As campaigners against convenience communications, PR professionals should
----------------------
act in three ways:
----------------------  As individual points of conscience within an organisation they should
---------------------- highlight where the interests of democracy and free speech are being
upheld. or being compromised.
----------------------
 In an organisational role, they must be seen as one of the leading bodies
---------------------- actively promoting the interest of democracy and free speech.
----------------------  They should act as an inter-connected community highlighting abuses of
communication and public relations practice. They should use the viral
----------------------
potential of online technology and networking, to create, a tidal wave of
---------------------- communications.
---------------------- The third key challenge is for PR professionals to use the concept of
brands as a vital communications tool. A brand is a way of describing the total
---------------------- personality of an individual, product or organisation. It is not about logos - a

myth perpetuated by the graphic design community. (Two of the world’s best- Notes
known brands don’t have a logo. Have you seen a logo for ‘Al Qaeda’ or ‘the
Mafia’?) ----------------------
The public relations community needs to lead the way in defining the ----------------------
‘democracy’ brand. By creating a defined brand for democracy, it goes beyond
----------------------
merely having a formal dictionary definition. It provides a tool for communication
to ensure it lives, is sustainable and is robust from any undermining political ----------------------
acts or communication.
----------------------
In our quest to define a ‘democracy’ brand, we need to identify its
----------------------
icons – the things that come readily to mind when you think about it; most
crucially identify its values – the things you do even when it hurts. The last ----------------------
element to a brand is its ‘information’ level – the facts and figures where most
----------------------
communications tends to focus upon.
Creating a brand for democracy with defined icons, values and information ----------------------
will enable everyone with an interest in upholding democracy to fight its corner ----------------------
and advance its interest.
----------------------
Why do we need to act?
Whatever the merits of a regional assembly, it was evident that ‘democracy’ ----------------------
was increasingly defined by fellow citizens not as a fundamental right or way
----------------------
of running our society. Rather, people were evidently paying lip-service to
‘democracy’ as a right to select their national leaders, but not much beyond this. ----------------------
Democracy as a plebiscite tool - solely to choose our leader - was very ----------------------
much used by those great lovers of democracy, the Nazis.
Young people involved in the political process are a fundamental ----------------------
component of our democratic future. ----------------------
The decline in traditional media - with fewer journalists monitoring
the work of local and central government - poses an even greater burden on ----------------------
other stakeholders, such as the public relations profession, to play their part in ----------------------
upholding the interests of democracy.
----------------------
In the light of the July 11 bombings in Mumbai and the recent elections,
it is timely to remind ourselves of the essential quality of life we have by living ----------------------
within a democracy. As public relations professionals we need to be aware and
demonstrate how we are crucial partners to the future well-being of democracy. ----------------------
The PR industry has power over much of what we see and hear, and ----------------------
consequently what we are likely to think, but we can claim our own power of
consumers’ rights and citizens’ rights. If we make a concerted effort to maintain ----------------------
a healthy skepticism and demand accountability from the entities that use PR
----------------------
to manipulate the public, we can get better information and a more meaningful
democracy. ----------------------
----------------------

Notes
----------------------
Fill in the blanks.
----------------------
1. Public relations is not about establishing and maintaining relations
---------------------- with public but about _________ public perceptions.
1. PR attempts to make a person or organisation responsive to public
----------------------
expectations and also tries to persuade the public to respond in a
---------------------- favourable way.
----------------------
i. Publicity a. Asymmetrical model
----------------------
ii. Information b. Symmetrical model
---------------------- iii. Advocacy c. Press Agency model
---------------------- iv. Relationship d. Public Information model
----------------------
---------------------- Activity 2
---------------------- 1. Visit a library and go through the history of PR and find out how some
prominent figures in history were instinctively handling their public
----------------------
relations themselves. Name five such people.
---------------------- 2. Research and find out whether it is possible to conduct PR activities in
non-democratic countries.
----------------------
----------------------
Summary
----------------------
 It has often been said that the business of business is to make profits.
---------------------- However, behind making profits, there lies a more fundamental function
of business that is vital for the business of business.
----------------------
 The fundamental function of business is communication. Imagine if there
---------------------- was no communication in a business organisation; would there be any
function at all?
----------------------
 People often talk about Public Relations without knowing exactly what it
---------------------- is.
----------------------  To get a clearer picture of what Public Relations its, there are a number
of definitions.
----------------------
 Public image is important to all organisations and prominent personalities.
---------------------- PR workers put together information that keeps the public aware of an
organisation’s accomplishments and keeps management aware of public
---------------------- attitudes.

 Public relations involve evaluation of public attitudes and opinions, Notes
formulation and implementation of an organisation’s procedures and
policy regarding communication with its publics, coordination of ----------------------
communications programs, developing rapport and good-will through
a two way communication process, fostering a positive relationship ----------------------
between an organisation and its public constituents. ----------------------
 The PR function is carried out by: Independent PR agencies and
----------------------
Corporate communication/PR division of business firms, corporate sector,
governmental and non governmental organisations. ----------------------
 Origins in ancient civilizations and medieval society offer glimpses at
----------------------
Public Relations-like activities.
 Much of the history of public relations is linked with the growth and ----------------------
maintenance of religion.
----------------------
 John the Baptist is recognised in the social history of Christianity as the
precursor, the advance man, who was effective in generating in his publics ----------------------
an anticipation and enthusiasm for Jesus Christ. In the mid-first century, ----------------------
Peter and Paul are other examples among many.
 Then the history can be traced through the colonial era and in colonial ----------------------
America too. ----------------------
 Based on their research and theory, Grunig & Hunt presented four
----------------------
models of Public Relations corresponding to four periods in the modern
development of Public Relations. ----------------------
 These models and eras are: Publicity (or Press Agentry model, in Grunig
----------------------
& Hunt’s terms), Information (Public Information model), Advocacy
(Asymmetrical model) and Relationship (Symmetrical model). ----------------------
 Modern public relations use a variety of techniques including opinion
----------------------
polling and focus groups to evaluate public opinion, combined with a
variety of high-tech techniques for distributing information on behalf of ----------------------
their clients, including satellite feeds, the Internet, broadcast faxes and
database-driven phone banks to recruit supporters for a client’s cause. ----------------------
 Public relations is an old and noble profession that can only flourish in a ----------------------
democracy.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes Keywords
----------------------
●● Above-the-line campaign: a marketing campaign using only advertising.
---------------------- ●● Account: the term used to describe a client or job. In consultancies, “an
account team” refers to the group of PR consultants servicing a particular
----------------------
client.
---------------------- ●● Below-the-line campaign: a marketing communications campaign that
does not use advertising. Instead it uses promotional tools such as Public
----------------------
Relations, direct marketing and sales promotion.
---------------------- ●● Brief: the instructions from a client to a consultancy, or directions
---------------------- communicated within a PR agency.
●● Public Relations: That form of communication management that
---------------------- seeks to make use of publicity and other non-paid forms of promotion
---------------------- and information to influence the feelings, opinions or beliefs about the
company, its products or services, or about the value of the product or
---------------------- service or the activities of the organisation to buyers, prospects, or other
stakeholders.
----------------------
●● Public Relations: Public Relations is the management function that
---------------------- identifies, establishes and maintains mutually beneficial relationships
between an organisation and the various publics on whom its success or
---------------------- failure depends.
---------------------- ●● Publics: PR is concerned with total communications of all sections of
an organisation with all the people with whom it has or should have
----------------------
communications.
---------------------- ●● Public Affairs: the process of communicating an organisation’s point of
view on issues or causes to political audiences like MPs and lobbying
----------------------
groups.
----------------------
---------------------- Self-Assessment Questions
---------------------- 1. “Needs determine the behaviour in communication process”. Discuss.

2. Write three definitions of Public Relations.
----------------------
3. Describe at least three different areas in which the discipline of Public
---------------------- Relations developed.
---------------------- 4. Write explanatory notes on the following:
5. State whether the following statements are True or False.
----------------------
6. Mention ten specialisation areas of public relations today.
----------------------
7. What are the four models of PR that correspond to four eras?
---------------------- 8. Name three responsibilities that PR professionals have towards the public.
---------------------- 9. What are the five ways that the activity of public relations is evolving into
in the 21st century?
1. False
----------------------
2. True
----------------------
3. True
1.
PR puts together information that keeps the public aware of the ----------------------
organisation’s accomplishments and keeps the management aware of
public attitudes. ----------------------
1. Public relations is not about establishing and maintaining relations with
----------------------
public but about handling public perceptions.
1. True ----------------------
Match the following. ----------------------
i. –c
----------------------
ii. –d
----------------------
iii. –a
iv. –b ----------------------
----------------------
Suggested Reading
----------------------
1. Banik, G.C. PR and Media Relations. Jaico Publishing, 2005
----------------------
2. Wilcox, Dennis L. Essentials of Public Relations.
----------------------
3. Cutlip, Scott M. Effective Public Relations.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Nature and Scope of Public Relations
UNIT
10
Structure:
10.1 Introduction
10.2 PR Today
10.3 PR and Advertising
10.4 The Public
10.5 Crisis Public Relations
Summary
Keywords
Suggested Reading
Nature and Scope of Public Relations 279

Notes
Objectives
----------------------
----------------------
• Illustrate the role of Public Relations in the business scenario today.
----------------------
• Distinguish between Public Relations and advertising
---------------------- communications.
• Recognise the scope and philosophy of PR.
----------------------
• Specify the meanings of publics and different publics.
----------------------
• Interpret ‘Crisis’ and take steps to plan Crisis Management.
----------------------
---------------------- 10.1 INTRODUCTION
---------------------- The field of Public Relations is a 20th century phenomenon and has been
rapidly gaining ground. It has acquired such importance that the corporate
---------------------- world turns to it time and again.
---------------------- Even though the IT industry had a difficult time in 2000-2001, it relied
heavily on PR.
----------------------
Innovators like Microsoft and its competitors have adopted PR practices
---------------------- to promote products, corporate positions and to build their reputation.
---------------------- Bill Gates said, “If I had one last marketing dollar, I would spend it on
public relations.”
----------------------
10.2 PR TODAY
----------------------
---------------------- PR aims at starting a point of view, an opinion, a movement where none

exists; it helps lead a movement, an argument; it aims at changing a negative
---------------------- environment, stimuli; and speed things up when issues get sluggish.
---------------------- Public Opinion is considered to be :

a) The barometer of Public Relations
----------------------
b)
A provider of a psychological environment in which organisations
---------------------- ‘prosper’ or ‘perish’
---------------------- Public Relations need to work not only to create a favourable image but
also to project what the an organisation stands for even if misunderstandings
---------------------- occur.
---------------------- Public Relations ‘educates’ the market in a persuasive way.
---------------------- For PR to succeed, it must be free of bias; it has to be impartial. Credibility

is vital in PR.
---------------------- The primary purpose of PR is UNDERSTANDING.
---------------------- A PR program has two major elements:

1) To present an organisation in a positive light Notes
2) To take strong action where there has been negative events or bad publicity
----------------------
PR, Government regulations and sponsorships can be a part of the overall
IMC Communications approach. ----------------------
Role of PR ----------------------
The role of Public Relations can be identified as: ----------------------
a) To evaluate public attitudes
----------------------
b) To identify issues of concern
----------------------
c) To execute programs to gain public acceptance
Corporate goals can be ----------------------
In the context of Public Relations, corporate goals can be: ----------------------
a) To increase business ----------------------
b) Spread goodwill
----------------------
c) Reflect a positive image or
----------------------
d) Further community/charitable efforts
Public Relations can have a strong impact on public awareness at a much ----------------------
lower cost than advertising. It will definitely have greater credibility. Therefore,
----------------------
Public Relations can be a really powerful brand-building tool.
Aims and objectives of PR ----------------------
What are the aims and objectives? What should the objectives of Public ----------------------
Relations be?
----------------------
a) to achieve goodwill.
----------------------
b) to safeguard reputation.
c) to build internal relationships. ----------------------
Some additional objectives include: ----------------------
d) to build up mutual understandings and good relations. ----------------------
e) to inform the public through different media.
----------------------
f) to show how to employ the objectives.
----------------------
g) to create public opinion.
h) to win the publics. ----------------------
i) to build up a good image of the organisation. ----------------------
j) to help inform the public about the good work being done by an organisation. ----------------------
k) to inform the public about the activities, achievement and outstanding
performances of the organisation through the newspapers and other media. ----------------------
----------------------

Notes l) to advise the management about what people think about the company i.e.
to provide the management with necessary feedback.
----------------------
m) to publish the launching of a new product or a new service.
---------------------- n) to establish and maintain cordial relations with the press and other media,
for avoiding adverse criticism.
----------------------
o) to maintain good relations with the government, both state and central, and
---------------------- the community in which an organisation operates.
---------------------- p) to mould public opinion in favour of an organisation.
---------------------- q) to change the attitudes of the various groups of public in favour of the
organisation and its products of servicing.
---------------------- r) to arrange effective and timely publicity of the performance and the policies
---------------------- of the organisation.
s) to establish and maintain mutual understanding and cordial relationships.
----------------------
Are there Codes of Professional Conduct in PR?
----------------------
A code per se, establishes PR as a profession and helps maintain standards. The
---------------------- code of professional conduct controls professional behaviour.
---------------------- Code of Ethics controls moral considerations.
---------------------- Institute of Public Relations built law on professional conduct in 1962.
---------------------- The International Public Relations Association (IRPA) has adopted a code of
professional conduct.
----------------------
The IPRA and the European Center of Public Relations (CERP) adopted
---------------------- International Public Relations Code of Ethics, at a then in May 1965.
---------------------- (More about Code and Conduct in the area of Public Relations will be given
later on in this book.)
----------------------
Purpose and philosophy of PR
----------------------
What is the Purpose and Philosophy of PR?
----------------------
To understand this, we look at the definition 06 PR.
---------------------- “Deliberate, planned, sustained effort to establish and maintain mutual
---------------------- understanding between an organisation and its public(s).”
But sometimes, we can also see that PR is a consistently misused and
---------------------- misunderstood statement.
---------------------- The key factor in the field of Public Relations is: UNDERSTANDING
---------------------- Here, we remember Philip Kotler’s reference to PR activity:
“Publicity is non-personal stimulation of demand for product/service or business
----------------------
unit by planting commercially significant news about it in a published medium
---------------------- or obtaining favourable presentation of it on radio, television or stage that is

not paid for by the sponsor.” He simply relegated it to ‘publicity’, diverting it Notes
to one of his 4Ps - the promotion ‘P’.
----------------------
“PR is the art and social science of analysing trends, predicting the consequences,
counseling organisation leaders and implementing planned programs of action ----------------------
which will serve both the organisation and public interest.”- The Mexican
Statement ----------------------
The operative word here is ‘planned’. ----------------------
After having scrutinised the above definitions of Public Relations, it will be an
----------------------
opportune moment to understand the purpose and philosophy of PR. So what is
the ‘PR situation’? ----------------------
PR educates the market in a persuasive way. The basis of this activity is ----------------------
understanding, which can be demonstrated in the manner described below.
This can be demonstrated in the PR Transfer Process. ----------------------
What is PR Transfer Process? It is transferring certain negative emotions to ----------------------

positive such as:
----------------------
Hostility - Sympathy
----------------------
Prejudice - Acceptance
Apathy - Interest ----------------------
Ignorance - Knowledge ----------------------
Much of problem-solving in PR is here: conversion of these negative emotions ----------------------
to positive.
----------------------
a) Hostility
Most organisations have to contend with some degree of hostility at some ----------------------
time or the other. Public services cannot please all people all the time. In
----------------------
the commercial world, people at different times for different reasons may
be hostile to their services. ----------------------
The PR task here is to present facts in order to be understood (and not
----------------------
hide!).
People may not love you. But with understanding can sympathise or be ----------------------
tolerant. ----------------------
Research may identify the cause like misinformation, lack of information
or information from rival source. ----------------------
If hostility is unjustified, a good informative PR program can reverse the ----------------------

situation. Opinion leaders (if misunderstood or uninformed) can do damage
to an organisation. ----------------------
b) Prejudice ----------------------
Overcoming prejudice is difficult (racial/religious). Prejudice is often deep- ----------------------
rooted, bound in environment, family upbringing, educational/political/
religious background, nationality/ethnic group. There could be prejudice ----------------------

Notes about colours, shapes and can affect products sometimes.
Prejudice can seem petty/immature (boarding plane, going abroad).
----------------------
Prejudice can be overcome through understanding.
----------------------
Post-war prejudice and hostility to Japan was overcome through time – e.g.
---------------------- the popularity of Japanese cars in Asia today and abroad.
---------------------- Prejudice about airships, Airship Industries had to encounter (closer home
– Sahara Airlines, Indian Airlines).
---------------------- c) Apathy
---------------------- Apathy is a dreadful negative state. Apathy is, in fact, perfectly
understandable. People are often wrapped up in own affairs and resist new
---------------------- ideas.
---------------------- Apathy is a kind of protective conservatism – it is in people’s interest to be
aware about beneficial products/services.
----------------------
Local authorities/Government departments have to fight apathy – to get
---------------------- people to enjoy rights, services, facilities to which they are entitled. Like
getting the people to vote in the elections.
----------------------
Apathy made it necessary for use of seat belts in cars legal and compulsory.
----------------------
In the changing times of today, apathy has to do with lifestyles and older
---------------------- age groups. People do not want to change.
---------------------- It is true in developing countries that Ministries use PR to affect social

changes which call for revolutionary changes in lifestyles.
----------------------
d) Ignorance
---------------------- The world has become complex; we are inevitably ignorant about many
things
----------------------
With introduction of new products, advertising alone will not break
---------------------- the barrier of ignorance and information. Therefore, educational PR is
essential. The market has to be prepared for new things.
----------------------
But the marketing world is not in love with market education – including
---------------------- trade and consumers.
---------------------- When PR is accepted as an integral part of marketing mix, it can be a great
asset in demolishing ignorance and pave the way for successful advertising.
----------------------
Sony used PR a year before launching Compact Video Camera. Tata
---------------------- splashed the media with coverage of their “Dream car” months before the
Indica was launched! So did Reliance before they launched the Infocom
---------------------- operations.
---------------------- Advance knowledge can build interest, curiosity, expectation and
awareness. It can be an excellent prelude to product launch.
----------------------
Hence, PR opens up immense possibilities for use of its techniques.
----------------------

But it must be spelt out - PR must be clear about purpose. With well- Notes
defined objectives, PR can be very economical way of achieving specific
results. ----------------------
The PR philosophy must be clear. PR cannot be a substitute for advertising. ----------------------
Once suspect, PR loses credibility.
----------------------
Unless the PR message is believed, the effect will be disastrous, implying
impartiality and inaccuracy. ----------------------
----------------------
10.3 PR AND ADVERTISING
----------------------
What is Public Relations? It’s about relationships between an organisation,
individual at one end and the audience at the other end. ----------------------
Marketers engage in PR to develop a favourable image of their organisation or ----------------------
product in the eyes of the public.
----------------------
What’s important is: The Tone of Voice and the Message which should fit into
the overall IMC Strategy/Communication. ----------------------
PR is different from Advertising, Sales Promotion, Marketing, Selling, ----------------------
Personnel, Industrial Relations, Propaganda.
a) PR vs. Advertising ----------------------
Advertising is ‘paid-for’ communication. Advertising builds brand image. ----------------------
The sole purpose is to “sell” products or services or a corporate. ----------------------

b) PR vs. Propaganda ----------------------
Propaganda is when you coerce into accepting beliefs or convert, which is
----------------------
not often considered ethical. Hitler’s Nazi propaganda is an example.
 PR recognise long term responsibility – mutual understanding, ----------------------
ethical, truthful
----------------------
 Democracy cannot run without good PR.
----------------------
c) PR as a business opportunity
----------------------
Public relations can and will deliver, at times better than advertising, that
too at a fraction of the cost. ----------------------
Today, clients have realised the value of public relations as a means of
----------------------
communication. They know that while advertising can neither be replaced
nor substituted, it can certainly be reinforced and given credibility by ----------------------
public relations. They are also realising that there is more to public relations
than the huge press conferences where the media are (invited)... They are ----------------------
realising that there are columns other than the product launch column
----------------------
that they were accustomed to earlier. Some enterprising clients use PR
agencies to increase their market value in the employment scene. Others ----------------------
are using PR agencies to influence stock prices. Technology companies
are using public relations to tell prospective employees that they are an ----------------------

Notes “employer of choice.” Public relations can and will deliver, at times better
than advertising, at a fraction of the cost. It is our duty to keep reminding
---------------------- clients of this fact.
---------------------- The PR agency needs to find a means of evaluation that, even if not
universal, will at least find general acceptance. While a few large agencies
---------------------- probably are using their own proprietary models, broad basing their appeal
and use must help the industry as well. Small PR agencies tend to be wary
----------------------
of the large ones and understandably so. But in their own interest, it makes
---------------------- sense for them to insist on clients being ‘media trained’ as larger agencies
insist. Even if they are unable to provide this, they must ensure that their
---------------------- clients go through this even if it is outsourced. It will only make things
easier for them in the long run.
----------------------
PR practitioners are consultants. Their place is in the board room and not
---------------------- the back room. They honestly spend more time with CEOs than advertising
agency heads. It is not a perk but an indication of their value. They should
----------------------
provide strategic counsel, project themselves as more than media relations
---------------------- experts, and understand disciplines like internal communication. It is they
who build corporate image and must build their own image as an industry.
---------------------- They should truly understand crises and thrive on them.
---------------------- The cola industry is facing a huge crisis again. Last time around, public
relations played a minor role as clients relied on ads featuring Shah Rukh
---------------------- Khan who said that Pepsi was safe because he was saying so! Now the
crisis is snowballing with every government and state threatening to join
----------------------
the fray. If this is not an opportunity for the PR industry to mould public
---------------------- opinion, what is?
---------------------- 10.4 THE PUBLIC

----------------------
What are the “Publics” of PR?
----------------------
In Advertising we speak of ‘target’ audiences. In PR we talk of ‘publics’. PR is
---------------------- concerned with total communications of all sections of an organisation with all
the people with whom it has or should have communications.
----------------------
Basic Public
----------------------
The basic publics for a public relations activity would include:
----------------------
a) The Community or general public– those who live around.
----------------------
b) Media
---------------------- c) Employees – broken down into the various categories in the organisation.
---------------------- Officials, clerical staff, retired employees, new employees, employees,
outstanding employees, families of employees. (Potential Employees
---------------------- – who may live locally or elsewhere, work for other organisations or be
attending school, college or university.)
----------------------

d) The money market – shareholders, banks, insurance companies, brokers, Notes
investment analysts, venture capitalists, foreign investors
----------------------
i) Shareholders: new shareholders, large shareholders, institutional
investors, vocal shareholders, employee shareholders, shareholders ----------------------
who have held stock for more than five years.
----------------------
e) Consumers and users – past, present and future
i) Consumers: large buyers (users of services), satisfied customers, ----------------------
dissatisfied customers, new customers, old customers, customers in
----------------------
different parts of country, former customers, potential customers.
f) Distributors – wholesalers, agents, retailers ----------------------
Who are the “publics” for an event? Evidently you could specify them into: ----------------------
 Media ----------------------
 Suppliers
----------------------
 Client
----------------------
 People who attend
 Chief Guest ----------------------
 Celebrity (if any) ----------------------

Such a categorisation of publics of different organisation are by no means ----------------------
exhaustive but they indicate the market analysis which is necessary in the
preparatory stages of planning a PR program. ----------------------
Unless the publics are defined the media cannot be selected and PR material ----------------------
cannot be prepared to satisfy their interests and needs, nor can the extent of
an activity be measured in man-hours and other costs. ----------------------
In defining publics, it is possible to recognise the size of communication ----------------------
problem. It may happen that because of constraints in time, money and
resources, some publics may have to be neglected. ----------------------
No practical PR program can be planned until the publics have been ----------------------
identified and priorities are set.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
i. Hostility a. Interest
----------------------
ii. Prejudice b. Knowledge
---------------------- iii. Apathy c. Acceptance
---------------------- iv. Ignorance d. Sympathy

1. The primary purpose of PR is understanding.
----------------------
2. PR and sponsorships can be part of the overall IMC Communications
---------------------- approach.
1. PR Program has two major elements as to present the organisation in
----------------------
positive light and to take strong action at time of bad ________.
----------------------
---------------------- Activity 1
----------------------
1. The launch of the last Harry Potter book was managed with PR
---------------------- activities. It was an international event. Find out about the “hype” that
surrounded Harry Porter.
----------------------
2. Organisations get involved in philanthropic activities to show their
---------------------- commitment to society. Research newspapers and list down 2 business
heads that have made their philanthropic announcements recently.
----------------------
---------------------- 10.5 CRISIS PUBLIC RELATIONS

---------------------- Crisis is a critical factor which has a huge impact on corporate reputation.
---------------------- Does corporate reputation really matter? It does when -
---------------------- a) consumers boycott a company’s products to protest unfair practices.
b) a company associated with environment problems is denied approval for
----------------------
plant expansion.
---------------------- c) a company known for its discriminatory practices cannot recruit minority
candidates
----------------------
Crisis PR
----------------------
What is meant by Crisis PR? It is called for when the relationship falls into a
---------------------- crisis mode.
----------------------

Crisis often strikes many organisations and we have come across many such Notes
instances. Many crises have been overcome successfully in an organisation.
----------------------
How can they prepare for the unknown?
For understanding how to tackle a crisis situation, take a look at this quotation ----------------------
by Timothy Combs: “A crisis is unpredictable but not unexpected. ”
----------------------
A crisis is an unexpected development that often :
----------------------
i) Embarrasses the organisation
An example of this situation is when a senior official in TATA Home ----------------------
Finance was found to have siphoned off money from the company. The ----------------------
Board of Directors of the TATA group was seriously embarrassed and
promised to make a thorough investigation into the matter and bring the ----------------------
culprit to book.
----------------------
ii) Frightens the public
----------------------
There is no better situation to illustrate this than the Bhopal Gas tragedy,
where poisonous gas leaked from the Union Carbide plant and caused ----------------------
deaths to hundreds.
----------------------
iii) Brings the companies credibility under severe scrutiny
The company in either situation comes under the media glare and has to ----------------------
justify reasons for its behaviour. ----------------------
What could be a company’s reactions to a crisis?
----------------------
i) Denial of the crisis:
----------------------
This is the most inappropriate but unfortunately the first reaction of most
companies. The assumption is that we can manage to bluff our way out of ----------------------
the situation. However, when that becomes difficult to do they resort to the
next alternative, which is try to manage the news. ----------------------
ii) Managing the news ----------------------
This means using all means straight and crooked to influence the outcome
----------------------
of the news. It might vary from offering a bribe to a journalist to physically
threatening the opposing party to withdraw from the situation. ----------------------
iii) Being transparent ----------------------
This is the most desirable course of action when the company is in a crisis.
People are prone to forgive a mistake, than the brow beaten by cunning and ----------------------
manipulative explanations. A crisis can be viewed not as a problem but as ----------------------
an opportunity. When a crisis hits, the public want to know three things:
i) What went wrong? ----------------------
ii) How it will be fixed? ----------------------

iii) Will the company ensure that it will not happen again? ----------------------
----------------------

Notes The Golden Hour
While dealing with crisis, it is important to recognise the critical hour, the
----------------------
time when one must act.
---------------------- “From the moment a story emerges, there is a golden hour,” Rob
---------------------- Shimmin, MD, Ogilvy Global Public Relations Worldwide.
“The time when you control the story and when other parties take the
----------------------
story, shape crisis and the public’s perceptions of your company.” – Shimmin
---------------------- It is in these critical moments that you must convince the media that you
---------------------- are the best source of information. It is here where you will either gain or lose
all control for your crisis. There must be consistency in messaging. All company
---------------------- spokespersons must be talking the same language, make sure that you are not
undercutting your message even by one syllable. Everyone in the organisation
----------------------
must understand what is expected and where you are trying to go. The golden
---------------------- hour gets increasingly shorter. Once you lose control of the debate, you may
never be able to get it back.
----------------------
The ‘golden hour’ gets increasingly shorter.
----------------------
The core message will always be wrapped within these three areas and adhere
---------------------- to the cardinal rules of crisis communications:
---------------------- i) Tell the truth
---------------------- ii) Tell it all

iii) Tell it fast
----------------------
A company’s willingness to tell the full truth depends on management’s
---------------------- willingness to admit that they have made a mistake. Some executives can do
---------------------- this and some cannot. By and large, the public is willing to forgive you if you
are honest and truly remorseful.
----------------------
For instance, in the case of Enron, most people had never heard of the
---------------------- brand. What people do remember, however, is the effort by Ken Lay, Chair and
CEO, and the Lay family to be less than forthcoming. They remember Mrs.
---------------------- Lay on TV, crying and saying they would lose their house. The public does not
---------------------- care about the problems of Ken Lay’s family. The public cares only about the
thousands of families who lost their jobs and retirement money. The Lays can
---------------------- move into one of their other houses.
---------------------- A part of the reaction to a crisis response must include a structure for how
to prioritise your response to media requests.
----------------------
After a crisis, there could be thousands of press calls for print, Internet,
---------------------- radio and television sources.
Depending on circumstances, decisions must be made as to which media
----------------------
outlets are the most important to communicate with first. CNN will broadcast
---------------------- to over 39 countries worldwide today. The Wall Street Journal will talk to the
United States tomorrow.
As a general rule, Mike Lawrence, executive vice president with Cone Notes
Inc., a Boston-based PR and strategic consulting company for consumer product
corporations and nonprofit organisations, advises companies to respond to news ----------------------
organisations with the greatest reach for the most critical audiences.
----------------------
He gave the example of a chemical company in Western Massachusetts,
which accidentally released a big chlorine cloud. Police responded; news went ----------------------
out over the AP wire; the flood of calls began.
----------------------
In that instance, he recommended going to the local radio first to inform
the community on the issue and discuss whether evacuation is necessary. It is ----------------------
better to have your voice going out over the airways than that of emergency
----------------------
personnel.
But how can one prepare in advance for something unknown? ----------------------
How can we prepare in advance for the unknown? ----------------------
Crisis management for brands and companies as a whole unfolds in six parts. ----------------------
Each part can be handled by planning in advance and then following through at
the time the crisis occurs. ----------------------
a) Develop and implement a corporate strategy that creates goodwill and ----------------------
credibility in the mind of the consumer and the public for your company
----------------------
while times are good.
b) Imagine the worst: Identify potential risks with a brand threat audit and ----------------------
develop strategies to minimise these threats.
----------------------
c) Build a crisis management strategy: Bring together a team, an infrastructure,
a process and a plan to respond to crisis. Rehearse the strategy, involve the ----------------------
CEO, and constantly update critical information. ----------------------
d) Stick to the blueprint: Respond to a crisis based on the predetermined crisis
strategy. ----------------------
e) Don’t react: Do not react spontaneously to a crisis without a strategically ----------------------

developed game plan.
----------------------
f) Time heals: Restore the brand; use time as your ally.
----------------------
It sounds simple, but there are several critical success factors that must be in
place for any crisis management plan to work. They are as follows: ----------------------
i) The fish rots from the head: The CEO must buy into and be part of the
----------------------
strategy from its inception. The head of the company sets the tone for the
importance of crisis management throughout the entire organisation. He/ ----------------------
she will also be the most likely spokesperson for the company and must be
credible. ----------------------
ii) Look the devil in the eyes: Identify the weakest and worst internal and ----------------------
external areas that have the potential to damage the brand.
----------------------
iii) Develop a strategy, rehearse it and update plans: It is only a crisis because
there has been no advance planning and your crisis plan information is not ----------------------
current.
Notes Legal and crisis management teams speak in the same voice. Conflict
between these parties during a crisis causes delays, allowing external
---------------------- parties to speak for and blame you.
---------------------- iv) Employees first: Employees represent the brand and are on the frontline
with consumers; they need to feel secure about their jobs and be able to
---------------------- communicate problem resolution strategies directly to the public. (Imagine
the WorldCom call center the day after the company declared bankruptcy.)
----------------------
v) Constant and continuous communication: We should not dismiss the
---------------------- importance of immediate response, constant communication, an unswerving
message and a consistent face to the public.
----------------------
The irony is that in most crises, the full range of problems that a company
---------------------- might face can be anticipated or even predicted in advance, based on the
potential risks associated with a specific industry.
----------------------
Sam Waltz, President of The Atlantic Leadership Institute, a Delaware-
---------------------- based business and communications counselling company, recommends that
---------------------- organisations conduct a brand threat audit by identifying worst-case scenarios
and then categorising the potential likelihood of these scenarios occurring. They
---------------------- could refine the threat assessment by gauging how the stakeholders (customers,
employees, investors) feel about the company, identifying weaknesses in the
---------------------- brand and establishing what reputation the brand has in the marketplace.
---------------------- Brand owners can then develop benchmark levels and strategies to
improve present levels. Corporate leaders can proactively manage to reduce
---------------------- these risks or prepare for potential threats well enough so that there is no doubt
---------------------- that the capability exists to handle a problem if and when it occurs.
Responsible companies then can track the potential and the dimension
---------------------- of these problems with their partners, customers, industry associations and
---------------------- other organisations. This will serve to educate the public as well as the brand
owner, as well as allay fears in the minds of the stakeholders in advance of
---------------------- major issues, which could occur. Organisations should carry out a Brand Threat
Audit - identify worst scenarios. Brand owners can develop benchmark levels to
---------------------- improve present levels and corporate leaders can proactively manage to reduce
---------------------- these risks or prepare for potential threats.
Pre-Crisis Planning
----------------------
The objective here is to prevent or lessen the negative outcomes of crisis and
---------------------- protect organisation from damage, loss and reputation loss.
---------------------- a) Scanning the Market for
---------------------- i) Possible danger areas

ii) Potential source of crisis
----------------------
iii) Industry-wide issue analysis
----------------------
iv) Organisation -specific issue analysis
---------------------- v) Risk assessment

vi) Stakeholder relationships Notes
After scanning the market for the above tell-tale signs, a situation can be
----------------------
assessed and evaluated.
Issue Sources could be Newspapers, Business Magazines, TV News, Trade ----------------------
Journals, Public Opinion Polls, Medical/Science Journals, On-line (web
----------------------
pages, sites etc), newsgroups etc.
Risk Assessment Sources could be Safety/accident records, Ethical climate ----------------------
surveys, Financial audits, Liability exposure, employees Comp, Product
----------------------
tampering, Risk audits (70-80%), Sexual harassment exposure
Relationship Sources could be Shareholder resolutions, Stakeholder ----------------------
complaints, Rumours/grapevine at conventions, Speculative discussions, ----------------------
Potential Boycotts
Remember the key principle to be followed is: Keep in continual contact ----------------------
with key constituents and listen to what they are saying. ----------------------
b) Assessing the Situation
----------------------
While assessing the situation you must be very careful in evaluating all the
dimensions of that particular situation. For instance: ----------------------
i) Evaluate issues in two dimensions – that of likelihood or impact. ----------------------
ii) Evaluate risks with risk management grid. ----------------------
iii) Evaluate relational threats in terms of:
----------------------
 Power (Leverage)
----------------------
 Legitimacy (Value driven)
 Willingness (Desire for action) ----------------------
Historical Types of Crises ----------------------
Crises can be of various types. What could occur? There are potential crisis ----------------------
events as follows:
a) Product failure - Firestone Tyres ----------------------
b) Human failure - Arthur Anderson, ENRON, WorldCom ----------------------
c) Management failure - ENRON, WorldCom ----------------------
d) Natural disasters - Lightning, fire, tsunami, earthquake
----------------------
e) Terrorism - World Trade Centre
f) Technical breakdown - New York electricity breakdown ----------------------
g) Challenges - boycotts, strikes, lawsuits, government actions ----------------------
h) Mega damage - oil spills, radioactivity
----------------------
i) Organisations’ misdeeds
----------------------
j) Workplace violence
k) Rumours ----------------------

Notes Designing Tools and Systems
a) Select a Crisis Management Team
----------------------
b) Select Spokespersons
----------------------
c) Develop a Crisis Management Plan
----------------------
d) Prepare a Crisis Communication System
---------------------- a) Selecting the Crisis Management Team CMT
---------------------- While selecting the Crisis Management Team, ensure that the members are
from a cross-functional group, who have been designated to handle ANY
----------------------
crisis.
---------------------- The characteristics of a good CMT would –
---------------------- i) Work together (conflict management).
---------------------- ii) Apply the CMP (manage stress).
---------------------- iii) Listen to others.

iv) Make the right decisions.
----------------------
v) Communicate proactively.
----------------------
The people involved in the Crisis Management team will have to play
---------------------- combined roles of a really diverse nature. They should be people who have
a collective experience in different areas, which can have a bearing in the
----------------------
nature of their work in this crisis management mode. Typical roles would
---------------------- be –
 Legal
----------------------
 Security/safety
----------------------
 PR
----------------------  Operations
----------------------  Top Management (CEO)
----------------------  Victim manager
---------------------- Make time for training (63% companies do that).

b) Selecting Spokespersons
----------------------
In such a situation, not everyone is allowed to speak to the press or to
---------------------- the public. Certain people are selected to be the ‘spokesperson’ or
‘spokespersons’ for the company. There are certain observations which
---------------------- you should notice and bear in mind.
---------------------- The underlying principle should be: “One voice is more important than one
person.”
----------------------
The role predominantly is: Manage the accuracy and consistency of the
---------------------- messages coming from the organisation.

All communication should be guided by the 5 C’s: Concern, Clarity, Notes
Control, Confidence and Competence
----------------------
The skills of the spokesperson should on the basis of:
 Appear pleasant on camera (visual, nonverbal). His or her spoken ----------------------
words and actions must be consistent and must covey a pleasant and
----------------------
approachable demeanor overall, as against an aggressive appearance.
 Answer questions effectively so that the messages are put forth clearly ----------------------
– to be received in the manner that it was intended to be. This will
----------------------
ensure that there are no or minimum communication gaps.
c) Some Dont’s ----------------------
i) Do not argue with reporters ----------------------

ii) Avoid “no comment” (65% believe “no comment” = “guilty”) ----------------------
iii) Challenge incorrect information
----------------------
iv) Assess assumptions of questions
----------------------
v) Legitimise
vi) Avoid jargon ----------------------
vii) Provide structure ----------------------

viii) Present information clearly ----------------------
d) Develop a Crisis Management Plan (CMP)
----------------------
What exactly do you mean by a Crisis Management Plan? It should be a
plan specially developed to handle a crisis situation. ----------------------
It should be: ----------------------
i) A potential action plan ----------------------
ii) used during the crisis
----------------------
iii) Focus on ‘how-to’.
----------------------
What should it not be? If you know what it should follow, then you will be
clear as to what you should definitely work towards. It should not be: ----------------------
 Overly detailed: There is a shortage of time here and a million things ----------------------
to do. So keep it short and sweet. Keep to the point.
 Rigid: Since it is a crisis, being rigid will not help. You may have ----------------------
to improvise at the last moment and keep on doing it. Your prime ----------------------
objective being to salvage the situation, you will be on the alert to
rectify things as soon as possible. ----------------------
e) Components of Crisis Management Plan (CMP) ----------------------
i) Introduction - is usually by CEO
----------------------
ii) Rehearsal dates
----------------------
iii) CMT members

Notes iv) CMT contact sheet
v) Crisis Assessment means:
----------------------
 overview piece
----------------------
 short
----------------------  likely scenarios
---------------------- vi) Incident report form (documents what happened)
---------------------- vii) Proprietary information (list)
viii) Strategy worksheet
----------------------
ix) Stakeholder contact sheet
----------------------
x) Crisis control centre (e.g. where, capabilities)
---------------------- xi) Post crisis evaluation
---------------------- The quality of preparation for any crisis of these events will hinge on the
quality of upfront disclosure from key decision makers in a company.
----------------------
f) Prepare Crisis Communication System
----------------------
This would consist of the following:
---------------------- i) the physical setup
---------------------- ii) tools such as
----------------------  Intranet
 Internet
----------------------
 Phones
----------------------
iii) preparing the team too and having them in place
---------------------- The Role of the CEO
---------------------- It is a brave and rare CEO who will comment on potential risks, especially those
that may involve his/her personal behaviour or business ethics.
----------------------
According to Rob Shimmin, managing director of Ogilvy Global Public
---------------------- Relations Worldwide, as a crisis team member you have to be able to say to the
CEO, “Let’s look at audited books. Is there anything there that concerns you?”
---------------------- The best preparation will occur where there is complete disclosure between all
---------------------- parties.
In the case of a CEO or an employee error, it would be best to change business
----------------------
practices so it is clear that the behaviour will not be repeated and will not be
---------------------- tolerated. The ramifications of personal behaviours must be made clear to all
staff – even the CEO.
----------------------
In the absence of a crisis management structure with appropriately trained staff,
---------------------- there will be a battle between attorneys and communications. A conflict here
can kill the best of crisis response initiatives. The real problem, according to Al
---------------------- and Laura Ries, authors of the recent book The Fall of Advertising & the Rise

of PR, is that “For CEOs in major corporations, whenever there is a problem, Notes
the first person they want to talk to is their lawyer. The first advice the lawyer
gives is to tell the CEO to shut up to protect against self-incrimination in a ----------------------
future trial or to imply that saying anything at all is a tacit admission of guilt.”
----------------------
From a crisis management perspective, this is a disaster. The CEO must react
immediately. Companies can not wait for the PR director and legal counsel to ----------------------
negotiate positions through a committee.
----------------------
A delayed response will be an attempt to cover without taking responsibility.
----------------------
a) Meet the Crisis team
In advance of any crisis, companies must create an action plan. ----------------------
Waiting to set up a team until after a crisis starts is like locking the gates after ----------------------
the horses are gone. Time and momentum are irretrievably lost. The team
must know what to do and who to call. This action plan should consist of the ----------------------
following items and activities: ----------------------
 Determine a crisis management team: The team should be made up of
the CEO and senior executives, public relations staff, media consultants ----------------------
and legal counsel. They should be able to identify the crisis spokesperson. ----------------------
Ideally this should be the CEO. This person must be believable and
empathetic. ----------------------
 Involvement of the CEO in all crisis-planning activities: Effective crisis ----------------------
response requires the buy-in and participation of the CEO. In times of
crisis, immediate action based on a clear plan by the CEO is mandatory. ----------------------
A plan made by middle management for senior management without the
----------------------
early involvement of C-level executives will fail.
 No strangers: Everyone on the crisis team must know each other and how ----------------------
to work with each other. In the middle of a crisis, you can not risk time over
----------------------
introductions and establishing trust.
 Train spokespersons: Train someone specifically to work with the media. ----------------------
Fumbled words and messages will seal the coffin. ----------------------
 Think: photo, headline, story: To make write a brief crisis manual and build
a process to determine what to do in the event of a crisis. ----------------------
 Build a dark site: In advance of an anticipated crisis, we can build a ----------------------

website populated with key information to be lit up once the crisis hits.
Designated staff could be given a laminated card that says who to call first ----------------------
and a password to log on to the site. An outside crisis phone system can be ----------------------
set up which can include toll-free numbers.
----------------------
 Be accountable to and for employees: Crisis planning must include
methods to reassure all employees and to account for missing employees ----------------------
if necessary. Identification of alternative places to work and/or counseling
may also be required. These are issues that some U.S. companies faced in ----------------------
the wake of September 11th.
----------------------

Notes  Practice and update crisis plan: The crisis plan should be Updated e.g.
Relevant computer files. Company spokespersons should do dry runs in
---------------------- front of cameras responding to hard journalistic questions.
---------------------- Most crises are preventable. If the CEO is involved in crisis planning, if we
know what our risks are and work to mitigate these known risks, develop a plan,
---------------------- and know how to implement it, we have got a pretty good shot at keeping the
demons at bay.
----------------------
Bear in mind that most potential crises are of the steady drip-drip-drip variety,
---------------------- with trouble brewing from daily business, bad products or known malfeasance.
Take care of any and all problems early. The wheels of blame get into motion
----------------------
the moment a crisis occurs. Companies must be prepared to react instantly.
---------------------- The situation with Ford-Firestone and accidents involving tyres is an example
of a circumstance where the problem was documented yet corporate leaders
----------------------
ignored the situation until there was a full-blown crisis with multiple deaths,
---------------------- lawsuits, product recalls and a CEO ouster. The Catholic Church is another
instance where years of incidents of abuse by priests had been identified and
---------------------- ignored.
---------------------- “Companies will be blamed the moment crisis occurs regardless of whether it
was their fault; all companies must be prepared and reactive to that,” said Mike
----------------------
Lawrence, executive vice president with Cone Inc., a Boston-based public
---------------------- relations and strategic consulting company for consumer product corporations
and nonprofit organisations. He goes on to urge brand owners to lay down a
---------------------- reputation early and consistently to “show that the brand has higher priorities
---------------------- than just making money.”
Above all, remember, as any student of management will tell you, failure to
----------------------
plan is planning to fail.
---------------------- Steps of Crisis Management
---------------------- i) Advance preparation for crisis
---------------------- ii) Recognise the crisis
---------------------- iii) Contain the crisis

iv) Resolve the crisis
----------------------
v) Build an advantage from crisis
----------------------
Manage post-crisis
---------------------- This is a crucial stage. There must be follow up at all levels. Remember, it is a
---------------------- time for shaping memories – for internal & external audiences. Crisis an event,
by itself. The question is What will you do? Have a plan ready! Companies
---------------------- should build their corporate reputation by developing practices that integrate
economic and social considerations into their competitive strategies. They not
----------------------
only do things right – they do the right things. In doing so, they act like good
---------------------- citizens.

They can initiate practices that : Notes
 reflect their core values.
----------------------
 consider the joint welfare of investors, customers and employees.
----------------------
 evoke concern for the development of local communities.
----------------------
 ensure the quality and environmental soundness of their technologies,
products and services. ----------------------
Dealing with Journalists ----------------------
There are three situations in which you can plan an interview with a journalist. ----------------------
These are-
----------------------
a) Proactive to approach the journalist
----------------------
This happens when we feel that the organisation has something important to
say. We approach a journalist to explore whether they would be interested ----------------------
in the news angle.
----------------------
If the journalist is interested, he would agree to do the story and we have
an interview that will lead to a published story. ----------------------
b) Reactive - The journalist approaches the organisation ----------------------

In this scenario, the journalist has probably learnt that there is something ----------------------
interesting in your organisation that he would like to know about. The
----------------------
journalist approaches for additional information. You might want to help
the journalist if you feel that the information may portray the organisation ----------------------
in a positive light. Alternatively, if the issue is sensitive or controversial we
----------------------
may decline to comment on it.
However, the best approach is to always clear the queries that the journalist ----------------------
has to the best of our ability; if we refuse to help, the journalist will seek ----------------------
information from someone else who might not have all the facts or might
not have the organisational interests at heart. ----------------------
c) Crisis - The journalists requests someone for information/comment from ----------------------

the organisation ----------------------
In this situation, the journalist seeks someone out as an authority or expert
----------------------
and asks for the opinion of the concerned person on an issue. The issue
may pertain to organisation or industry or might be a general one. The ----------------------
important thing is that the journalist feels that inputs will add the concerned
----------------------
person’s perspective to the matter.
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
1. PR is also directed towards the employees of the organisation.
----------------------
2. From the time the crisis emerges, there is a “golden hour” for the
---------------------- companies to act.
Fill in the blanks.
----------------------
1. A crisis management plan should be a potential action plan used
---------------------- during the crisis and focuses on how to ______ the crisis.
---------------------- 2. Dealing with the journalist can be proactive or _______.
----------------------
Activity 2
----------------------
---------------------- 1. Give some examples of organisations where, due to some negative

publicity impact, they had to suffer damage. Point out how, with PR,
---------------------- they managed to overcome this situation.
---------------------- 2. Search the web and study the business profile of two CEOs of
multinational companies, whose role appears to be very prominent.
---------------------- Also specify how their personal image has had an impact on the image
of the organisation.
----------------------
----------------------
Summary
----------------------
 The field of public relations is a 20th century phenomenon and has been
---------------------- rapidly gaining ground.
----------------------  PR aims at stating a point of view, an opinion, a movement where none
exists; it helps lead a movement, an argument; it aims at changing a
---------------------- negative environment, and speed things up when issues get sluggish.
----------------------  The role of public relations can be identified as: evaluate public attitudes,
identify issues of concern and execute programs to gain public acceptance.
----------------------
 Public opinion is considered to be the barometer of public relations and
---------------------- provides the psychological environment in which organisations prosper
---------------------- or perish.
 Corporate goals can be - to increase business, spread goodwill, and reflect
----------------------
a positive image or further community/charitable efforts.
----------------------
 The aims and objectives of public relations are many. The purpose and
---------------------- philosophy of Public Relations is to change some negative emotions to
positive – like hostility, apathy, ignorance and prejudice. The basis of
---------------------- Public Relations understands.

 There are many differences between public relations and advertising; also Notes
vis-à-vis propaganda.
----------------------
 In advertising, we speak of ‘target’ audiences. In PR we talk of ‘public’.
PR
is concerned with total communications of all sections of an organisation ----------------------
with all the people with whom it has or should have communications. So
the publics can be many and will be individually relevant for different ----------------------
industrial situations. ----------------------
 Crisis is a critical factor which has a huge impact on corporate reputation.
----------------------
A crisis can happen any time to any organisation. Organisations must
plan for crisis management well in advance. They must set up a crisis ----------------------
management team, crisis management system, have spokespersons in
place and also plan for post-crisis phase. The role of the CEO is important ----------------------
in crisis. ----------------------
----------------------
Keywords
----------------------
●● Crisis Management: this involves planning and preparing a client for
any possible crisis that is likely to affect the organisation, and how it ----------------------
should communicate to all its stakeholders during that crisis. This
involves training relevant spokespeople, co-ordinating crisis recovery ----------------------
activities and ensuring a unified, confident and controlled public image. ----------------------
Crisis management is closely related to issues management.
●● “Golden hour”: The time when you control the story and when other ----------------------
parties take the story, shape crisis and the public’s perceptions of your ----------------------
company.”
----------------------
●● CMP : Develop Crisis Management Plan
●● CEO : Chief Executive Officer ----------------------
●● CMT : Crisis Management Team ----------------------
●● BLOGS: Blogs and participatory journalism are impacting the practice ----------------------
of public relations. What it really comes down to is offering readers a
unique perspective and commentary, providing links to unique resources ----------------------
and news and updating daily or close to it.
----------------------
●● Broadcast: the dissemination of programs or messages through the media
of radio, internet or television. ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
1. What is the role of public relations? Mention three areas.
---------------------- 2. What are the aims and objectives of public relations? Mention any three.
---------------------- 3. Mention four corporate goals that an organisation can have and which can
---------------------- be impacted by public relations.
4. Mention six additional objectives of public relations.
----------------------
5. Crisis management for brands and companies as a whole unfolds in six
---------------------- parts. What are they?
---------------------- 6. What are the components of a Crisis Management Plan (CMP)?
---------------------- 7. What should be the profile of a ‘spokesperson’?
---------------------- 8. What are the five steps in a Crisis Management Plan?

9. Define the ‘golden hour’ in a business crisis situation. In what other
---------------------- situations can you have a ‘golden hour’?
---------------------- 10. List four crises that have happened to organisations – two of which the
organisation managed to overcome successfully and two in which the
----------------------
organisation never recovered.
----------------------
----------------------
---------------------- Match the following.
---------------------- i. –d
---------------------- ii. –c
---------------------- iii. –a
iv. –b
----------------------
----------------------
1. True
---------------------- 2. True
---------------------- 1. PR Program has two major elements as to present the organisation in
positive light and to take strong action at time of bad publicity.
----------------------
----------------------
----------------------
----------------------

Check your Progress 2 Notes
----------------------
1. True
----------------------
2. True
1. A crisis management plan should be a potential action plan used during ----------------------
the crisis and focuses on how to manage the crisis.
----------------------
2. Dealing with the journalist can be proactive or reactive.
----------------------
1. Banik, G.C. PR and Media Relations. Jaico Publishing, 2005. ----------------------
2. Wilcox, Dennis L. Essentials of Public Relations. ----------------------
----------------------
4. Aronoff, Craig and Baskins, Otis. Public Relations: Profession and Practice.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
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----------------------
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Organisation and Practice
UNIT
11
Structure:
11.1 Introduction
11.2 PR and the Government
11.3 Lobbying/Public Affairs
11.4 International Public Affairs
11.5 Governmental Spin
11.6 Government Bodies
Summary
Keywords
Suggested Reading
Organisation and Practice 305

Notes
Objectives
----------------------
----------------------
• Define the Role of PR and the Government.
----------------------
• Analyse the growing importance of lobbying.
---------------------- • Illustrate the scope and impact of governmental Spin.
---------------------- • Construct the link between PR and the different government bodies.
----------------------
11.1 INTRODUCTION
----------------------
The concept of public relations, ‘spin’, or media manipulation is now
---------------------- familiar. The scandals of government spin doctors have become increasingly
prominent in the news. The world of commercial public relations however is
---------------------- little known to the general public. Industry giants such as Bell Pottinger, or Hill
& Knowlton are almost unknown.
----------------------
The secretive world of the corporate spin industry in the UK reveals a
---------------------- billion pound industry that wields extraordinary influence over the government,
the media and public opinion.
----------------------
Sometimes, the industry is responsible for massive profit-driven cultural
---------------------- pollution it distorts the democratic process and reduces society’s capacity to act
on key environmental and social issues.
----------------------
11.2 PR AND THE GOVERNMENT
----------------------
In its earliest manifestations, PR in government was merely publicity,
----------------------
giving news to media and staging events or supplying information about the
---------------------- organisation and to attract media attention. There was no counselling or PR
policy guidelines.
---------------------- It was merely carried out to make the public aware of the various aspects
---------------------- of the government’s national involvement. There was no organised approach to
mobilising public support for its programs and activities.
---------------------- In other words, PR in government meant looking for opportunities to enlist
public support, and at the same time explaining to the public the objectives
----------------------
behind an organisation’s actions only through press releases.
---------------------- There were no PR departments in government offices. PR activities were
looked after by the Logistics section that was headed by the Section Officer
---------------------- under the overall control of the Director of Administration and Personnel. At
---------------------- that time, PR was considered a logistics job that involved organising travel,
making arrangements like passport, visa, foreign exchange and transport.
---------------------- Occasionally, the PR departments used to issue press releases on service-
related items, through the Press Information Bureau (PIB) of the Government of
----------------------
India. They had no direct relations with the press. Whenever there was an issue
---------------------- such as strike, accident, inauguration of a new service, the Publicity Officer

was given a handout to pass on to newspapers and magazines. There was no Notes
planned media approach to achieve internal and external objectives. There was
no feedback to access public opinion, regarding the policies and programs of ----------------------
the organisations.
----------------------
It was a time when the need was not felt to define PR, outline its
objectives and functions nor to access what relationship it should have with the ----------------------
management. ----------------------
PR in government was considered a fire-fighting service and not as a
----------------------
continuous process that is crucial to create a favorable image of the organisation.
Today, the scene if different. ----------------------
PR is an indispensable tool in today’s management of both public sector ----------------------
and private sector organisations. With the whirlwind growth of business and
commerce in the public sector in India, the need for PR has assumed new ----------------------
meaning. Public sector enterprises are set up to build a sound infrastructure to
----------------------
scale heights of economic success, keeping in mind the ensuing social benefits.
Public sector enterprises are subjected to continuous process of control ----------------------
by the government. Today, the PR wing of many public sector enterprises ----------------------
are geared up to play an active role and to serve as an effective instrument
for projecting the news of their achievements, implementing their goals and ----------------------
objectives, besides contributing to the country’s growth. ----------------------
It is the endeavour of any organisation to draw the attention of the public
----------------------
to its ideas, products and services. No organisation can afford to overlook public
opinion. ----------------------
An organisation, in fact, must develop two-way communication, not only ----------------------
informing the public about its policies and programs, but also observing the
people’s reactions to them. This requires certain skills and expert knowledge. ----------------------
A carefully-planned PR program using competent professional techniques and
----------------------
media can go a long way in building a favourable image and a durable reputation
for the organisation. ----------------------
State-of-the-art PR aims at understanding the profession, the environment ----------------------
in which it works; and the technology that it uses for the ultimate objective of
achieving its desired professional goals. In the government, the role of PR has ----------------------
grown to some importance and it has an elevated status, compared to the earlier ----------------------
times.
----------------------
Government by Public Relations through the Ages
Reflecting on the relationship between public relations and the media, ----------------------
let us be clear about their missions in the 21st century society. The role of the ----------------------
media is to inform the public. In a free and open society, which we purport to
be building in Europe and throughout the Western world, the press and media ----------------------
should keep the public informed so they can make informed decisions about
----------------------
their democratic institutions which underpin our culture of freedom and liberty.

Notes Ostensibly, the mission of public relations is to shape and inform the press
and media so they can fulfill their mission of informing the public. However,
---------------------- we may be working with a false premise. We may not have a free and open
society. Our society may be dominated by totalitarian institutions that are so
----------------------
subtle that the majority of the population may never be aware of their virtual
---------------------- slavery.
You can see that our society is undergoing a robust infusion of political
----------------------
realignment. The planetary population is activated like never before in world
---------------------- history. The public demand for a more direct role in the application of power is
clear. The anti-globalisation movement, the environmental movement, the pro-
---------------------- democracy movement, the peace movement, the protest movement - call it what
---------------------- you will - is sweeping across our tiny planet. People are demanding change.
They are demanding direct access to the levers of power.
---------------------- For the moment, instead of projecting our impressions of where this
---------------------- planetary movement is going, let us examine some of the more obvious origins
of political change and the engagement of public relations and the media in the
---------------------- psychological processes driving the politics of power.
---------------------- Take for instance, the assassination of Caesar – which provides us with a
relatively well-documented historical record and using it as a lens to examine
---------------------- the impact of political messaging on the public and the ensuing reverberations
on power. We can discern a valuable series of lessons in the politics of the
----------------------
classical world.
---------------------- We shall need only to examine the roles of two of the principal actors:
---------------------- Marcus Antonius and Marcus Tullius Cicero. Cicero was the senior and more
powerful statesman.
---------------------- Dignified and elegant in his personal character, Cicero is the ultimate
---------------------- model for eloquent and proper Latin prose. An unsurpassable debater, Cicero
reigned supreme in the pseudo-democratic oligarchy that was the Roman
---------------------- Republic.
---------------------- But, after the assassination of Caesar, Anthony cleverly spun his powerful
speech over Caesar’s dead body and won his place in the Roman empire. He
---------------------- also had Cicero killed.
---------------------- In recent years both individual reporters and their ever-growing corporate
ownership have defaulted on that role. Ted Stannard, an academic and former
---------------------- UPI correspondent, put it this way: “When watchdogs, bird dogs, and bull dogs
---------------------- morph into lap dogs, lazy dogs, or yellow dogs, the nation is in trouble.”
While Thomas is adamant over the disintegration of the professional
---------------------- media and the rise of the Orwellian juggernaut of the Bush presidency.
---------------------- The Internet has created a global network, where people are now capable
---------------------- of sharing their thoughts.
----------------------

When one person publishes a blog that they are disenchanted with official Notes
policy, they will find an audience of like-minded people who will re-enforce
their opposition. ----------------------
A ranking blogger, Arianna Huffington says that today, “The little guy is ----------------------
the true pit bull of journalism. The blogosphere’s ability to include the whole
planet in an immediate dialogue makes it ( America’s) most vital news source.” ----------------------
In the latest surveys, we find that more people are now consulting the ----------------------
Internet for news than the mainstream media. The Internet is a powerful new ----------------------
tool for the communications industry - and the people who seek a broader and
deeper role in the democratic process of government - weak and lethargic as ----------------------
they undoubtedly are.
----------------------
In an era dominated by Berlusconi and Murdoch, we are faced with an
ethical dilemma. As members of the professional media elite, we have to make ----------------------
a decision. Are we going to serve the state, the corporations, the plutocracies ----------------------
that would impose a status quo ante upon the nations of sheep engrossed in
doublethink and babbling newspeak for a mere pittance - the price of slavery? ----------------------
In the modern economy, we are isolated from the immensity of wealth that is
now in control of our planet. ----------------------
Worse. Public relations and the media are intimately engaged in the ----------------------
manufacture of power for the owners of our ownership civilisation. ----------------------
You have the power to decide between perpetuating the powerful or ----------------------
empowering the people. That is the choice facing every intellectual, every public
relations professional, every journalist and every academician in the 21st century. ----------------------
The future is in the hands of ordinary people - just like us. Check it out in ----------------------
the Indian arena.
----------------------
11.3 LOBBYING/PUBLIC AFFAIRS ----------------------
“The conscious and intelligent manipulation of the organised habits and ----------------------
opinions of the masses is an important element in democratic society. Those who
manipulate the unseen mechanism of society constitute an invisible government ----------------------
which is the true ruling power. We are governed, our minds moulded, our tastes ----------------------
formed, our ideas suggested largely by men we have never heard of.
----------------------
This is a logical result of the way in which our democratic society is organised.
Vast numbers of human beings must cooperate if they are to live together ----------------------
as a smoothly functioning society. In almost every act of our lives, whether in ----------------------
the sphere of politics or business, in our social conduct or our ethical thinking,
we are dominated by the relatively small number of persons who understand the ----------------------
mental processes and social patterns of the masses. It is they who pull the wires ----------------------
that control the public mind.”
----------------------
– Edward Bernays

Notes One of the areas that Public Relations operates in is the highly sensitive
domain of ministers and the government. To put it in plain words – the world of
---------------------- lobbying and public affairs.
---------------------- Lobbying depends on experience and research. Well-connected
individuals exploit their political contacts on behalf of clients, providing access
---------------------- to key individuals. Nowadays lobbying companies maintain extensive files on
---------------------- politicians and other, influential people so as to know who best to approach and
in what way, in order to further a campaign. As with other areas of PR, lobbying
---------------------- has become a more challenging discipline.
---------------------- According to a Hill and Knowlton executive, “You can’t just show up with
a bottle of Wild Turkey and get your topic on the hearing schedule anymore.
----------------------
You have to work with staffers, and you have to be more aware of alliances and
---------------------- petty fights on the Hill. It’s just not easy.”
---------------------- One of the more sophisticated methods for influencing legislators is a

practice known as ‘grasstops’ communications. In this, the PR agency will
---------------------- carefully identify the peer group of the target legislator or ‘opinion former’.
They will then hire one or more members of that group, friends or acquaintances
----------------------
of the target, to informally promote the PR message within the group - a ‘district
---------------------- liaison’. In this way, the agency aims to create for the target the artificial
impression that ‘everyone is talking about it’ and that there is strong community
---------------------- support for the issue. With this method, legislators may not even realise What is
---------------------- happening.
Lobbying is used in influencing legislation and all kinds of government
---------------------- decisions. After Railtrack was taken into administration, for example, the four
---------------------- largest institutional investors hired Bell Pottinger, the UK market leaders in
PR and lobbying, to lobby the government for a better deal out of the firm’s
---------------------- collapse. Ernst & Young, administrators of Railtrack, felt the need to hire
Edelman to conduct PR on their behalf over the issue and also Citigate Public
---------------------- Affairs to support them.
---------------------- Bell Pottinger has also picked up an account for the Public Private
Partnership Forum which, in the wake of the London Underground controversy,
----------------------
felt it was “better to concentrate our work on reminding people of the benefits
---------------------- of PPP as a whole.” Bell Pottinger Public Affairs was hired to lobby both central
government and opposition groups including trade unions.
----------------------
In India, we have PR agencies like Perfect Relations who are involved
---------------------- with a great deal of lobbying for their clients.
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
1. PR in government is assumed to be only limited to publicity.
----------------------
2. Public relations of government in India are done by Press Information
bureau. ----------------------
3. India shining campaign is an example of lobbying.
----------------------
Fill in the blanks.
----------------------
1. One of the areas that Public Relations operates in is the highly
sensitive domain of ministers and the government. It is called ________ . ----------------------
2. A PR agency carefully identifies the peer group of the target legislator ----------------------
or the opinion-former and influences it. This is called __________
communication. ----------------------
----------------------
Activity 1
----------------------
1. Visit a library and research some political PR campaigns that have ----------------------
been carried out very successfully. Try and look at both modern world
and historical campaigns. ----------------------
2. Check the business news on TV and see in which industries you find ----------------------
high amount of lobbying? Write down the names of industries. Can you
figure out why this lobbying is happening? ----------------------
3. Search the Internet and find how many countries are involved in ----------------------
promoting the country’s image abroad? Can you find out the basic
concept they are following? Also find out the PR agencies involved. ----------------------
----------------------
11.4 INTERNATIONAL PUBLIC AFFAIRS ----------------------
The hiring of PR agencies to promote a country’s image abroad is ----------------------
becoming an indispensable part of modern diplomacy.
----------------------
The concept of advertising a nation may seem baffling, but the idea is the
same as advertising a firm or its products. ----------------------
There are, however, two special handicaps in promoting a nation. First, it
----------------------
is frightfully expensive; and second, since the benefits accrue to so many agents
in the nation, it is not in the interest of any single firm or individual to bear the ----------------------
expense.
----------------------
Hence, the way to proceed is through a conglomerate of firms and the
government. ----------------------
----------------------

Notes Thus far India has played this well, with the Confederation of Indian
Industry teaming up with the Government of India to invest heavily in promoting
---------------------- “Brand India”.
---------------------- India has hired a PR agency in US to do image-building for the image of
India Inc.
----------------------
The ‘Incredible India’ campaign is a part
---------------------- of Brand India’s image-boosting plan
and by tracking the activities so far, it
---------------------- seems to be working.
---------------------- The story of Hill & Knowlton, et al’s
involvement in the 1991 Gulf War is a
---------------------- signal case of the power of PR.
---------------------- Since the World Trade Centre bombing
and the prospect of war without end,
---------------------- effective PR in the USA may now be a prerequisite for the long term survival of
---------------------- a government in the Islamic world.
Both Pakistan and the Phillipines, two countries in the thick of George Bush’s
---------------------- ‘crusade’, hired Weber Shandwick subsidiaries in 2002. Pakistan is paying
---------------------- Sterling International Consulting Group $50k per month to create a more
favourable image for the country in the USA and the Philippines, where
---------------------- over 1000 US troops are fighting Islamist guerrillas, is using Rhoads-Weber
Shandwick Government Relations to facilitate its communications with the
---------------------- Pentagon. Saudi Arabia, home of most of the September 11 hijackers, has been
---------------------- directing larger and larger sums at rehabilitating its tarnished image in the USA.
It has hired Qorvis Communications to advertise its efforts to help the US in
---------------------- combatting terrorism and to place pro-Saudi articles in the press, spending a
record $14.6 million between April and September 2002, and Paton Boggs
---------------------- undertakes lobbying for the kingdom in Congress.
----------------------
11.5 GOVERNMENTAL SPIN
----------------------
The relationship between government and the PR industry is a long
---------------------- and intimate one. Many top lobbyists begin their careers working in political
---------------------- circles and many top PR people have worked in government. Government spin
doctors and their commercial counterparts use the same skills and techniques
---------------------- to accomplish the same goal to create a favourable public image in the media.
Several top PR people have managed to reach the top in both the governmental
---------------------- and business worlds.
---------------------- One of the most famous British spin doctors is Sir Tim Bell, of Bell
Pottinger. In the late 1970s, Bell was a rising star at an advertising agency,
---------------------- Saatchi & Saatchi. When Saatchi & Saatchi were hired to handle advertising for
---------------------- the Conservative’s 1979 election campaign, Bell was to become one of Margaret
Thatcher’s personal spin doctors. He coached her on interview technique and
---------------------- even advised on clothing and hairstyle choices. As the 1979 election campaign

intensified, he and Gordon Reece, media relations supremo at Conservative Notes
Central Office, “assiduously courted the editors of two newspapers they had
singled out for special attention: Larry Lamb of the Sun and David English ----------------------
of the Daily Mail… They would drop by regularly for informal meetings with
Lamb, usually in the evenings over large quantities of champagne,” writes Mark ----------------------
Hollingsworth in his biography of Bell. ----------------------
Bell’s work for the conservative party did not end there. In 1984, he was
----------------------
seconded to the National Coal Board (NCB) to advise on media strategy at the
start of the miners’ strike. However, his duties went far beyond mere media ----------------------
relations. So highly was Bell regarded that he became closely involved with the
overall political strategy as the industrial dispute turned into political warfare ----------------------
between the NUM and the government. Whilst the NCB’s own industrial
----------------------
relations department wanted to reach a negotiated settlement, Bell, amongst
others was able to persuade Ian McGregor to accept nothing less than an ----------------------
unconditional return to work.
----------------------
What is ‘Spin’?
a) ‘Spin’ ----------------------
In public relations, spin is sometimes pejorative term signifying a heavily ----------------------
biased portrayal in one’s own favour of an event or situation. While
traditional public relations may also rely on creative presentation of the ----------------------
facts, ‘spin’ often, though not always, implies disingenuous, deceptive ----------------------
and/or highly manipulative tactics.
Politicians are often accused of spin by commentators and political ----------------------
opponents, when they produce a counter argument or position. ----------------------
The term is borrowed from ball sports such as cricket, where a spin bowler
may impart spin on the ball during a delivery so that it will curve through ----------------------
the air or bounce in an advantageous manner. ----------------------
The techniques of ‘spin’ include:
----------------------
 Selectively presenting facts and quotes that support one’s position
(cherry picking) ----------------------
 Non-denial denial ----------------------
 Phrasing in a way that assumes unproven truths ----------------------
 Euphemisms to disguise or promote one’s agenda ----------------------
 Ambiguity ----------------------
 Skirting ----------------------
 Rejecting the validity of hypotheticals ----------------------
 Appealing to internal policies ----------------------
Another spin technique involves careful choice of timing in the release
----------------------
of certain news so it can take advantage of prominent events in the news.

Notes A famous reference to this practice occurred when UK government press
officer Jo Moore used the phrase It’s now a very good day to get out
---------------------- anything we want to bury, (widely paraphrased or misquoted as “It’s a
good day to bury bad news”), in an e-mail sent on September 11, 2001. The
---------------------- furor caused when this e-mail was reported in the press, and eventually it
---------------------- made her resign.
Giving things a different ‘spin’ has now become second nature for
----------------------
governments the world over. They are all the time trying to present things
---------------------- in a superior light to what they actually are. The result is they end up
clothing policy announcements in a shroud of legal obfuscation hoping
---------------------- that the public would perceive them as something superior.
---------------------- ‘Spin’ can be defined as the art of making things appear in a more favourable
light than its inherent quality would merit, but with an important caveat:
---------------------- there should be no resort to uttering lies.
---------------------- When the character Bertie Wooster in one of P. G. Wodehouse’s novels is
asked by his fiancee if he liked the book Types of Ethical Theory he replies
---------------------- that he could not put it down. Of course, he cleverly omits to mention that
he had not got around to picking it up in the first place. Now, that would be
----------------------
an example of ‘spin’ in its most pristine form. Note that there has been no
---------------------- falsehood uttered in the reply.
---------------------- But not everybody has the same felicity with the English language as P.G.
Wodehouse did.
---------------------- Nevertheless, best results in ‘spin’ are achieved by following some simple
---------------------- rules. Omitting to juxtapose relevant past information is useful in giving
something a clever ‘spin’.
---------------------- The second rule of ‘spin’ is using technical jargon that has the potential to
---------------------- be construed in more common parlance. The result often is a favourable
‘spin’ on things that are presented.
----------------------
But when bad news is so stark that no amount of ‘spin’ can put on it a
---------------------- favourable colour, there is a third rule that one employs. On such occasions,
it would be a good tactic to drown the bad news with more of the same
---------------------- kind, hoping that the subsequent bad news at least would go unnoticed by
the public.
----------------------
This was resorted to recently by a member of the British Government. That
---------------------- it eventually led to the minister and the civil servant putting in their papers
is an unfortunate collateral aspect of the doctrine of clever ‘spin’.
----------------------
b) Spin doctor
----------------------
Skilled practitioners of spin are sometimes called ‘spin doctors’, though
---------------------- probably not to their faces unless it is said facetiously. It is the PR equivalent
of calling a writer a “hack”.
----------------------
Perhaps the most well-known person in the UK often described as a “spin
---------------------- doctor” is Alastair Campbell, who was involved with Tony Blair’s public

relations between 1994 and 2003, and also played a controversial role as Notes
press relations officer to the British and Irish Lions rugby side during their
2005 tour of New Zealand. ----------------------
The American radio and television talk-show host Bill O’Reilly, who is ----------------------
often considered a spokesman for conservatism, has called his television
show The O’Reilly Factor “The No Spin Zone”, emphasising his own ----------------------
purported dislike of the phenomenon.
----------------------
Some other American talk and radio-show hosts and commentators, such
as Keith Olbermann, who maintains an on-going “feud with Bill O’Reilly”, ----------------------
and who himself has been tagged with being more liberal in his views,
----------------------
mock O’Reilly’s epithet “no spin zone” suggesting his own avoidance of
“spin” to be just another instance of spin from “the other side”. ----------------------
Journalism, which purports to maintain objectivity, at times and sometimes
----------------------
even often seems engaged in the very phenomenon of spin that they deride.
Many such commentators and their featured on-air media consultants, ----------------------
commonly termed ‘talking heads’ or pundits, come to programs on radio, ----------------------
television, and in publishing from prior professional careers in public
relations and politics, sometimes even as former political campaign ----------------------
directors or speech writers for political figures.
----------------------
For those who do, mastering the ‘art’ of spin has already been an important
part of their past work experience and it may lead not only to their acute ----------------------
understanding and critique of the phenomenon but also to their supreme
ability to continue practicing it in ever-more subtle ways. ----------------------
State-run media in many countries also engage in spin by selectively ----------------------

allowing news stories that are favourable to the government while censoring
anything that could be considered critical. ----------------------
They may also use propaganda to indoctrinate or actively influence citizens’ ----------------------
opinions.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
Fill in the blanks.
----------------------
1.
In public relations, _______ is a sometimes a pejorative term
---------------------- signifying a heavily biased portrayal in one’s own favour of an event
or situation.
----------------------
----------------------
1. Lobbying is not often used in influencing legislation and all kinds of
---------------------- government decisions.
2. One of the areas that Public Relations operates in is the highly
----------------------
sensitive domain of ministers and the government.
---------------------- 3. Skilled practitioners of spin are sometimes called “spin doctors”.
---------------------- 4. Doordarshan, a Public Service Broadcaster, is the largest terrestrial
network in the world and was started in 1959.
----------------------
5. Sound broadcasting started in India in 1927.
----------------------
---------------------- Activity 2
----------------------
Visit the web sites of the following bodies:
----------------------
i. All India Radio
---------------------- ii. DAVP
---------------------- iii. National Film Archives, Pune, India
---------------------- iv. Films Division

v. Publications Division government of India
----------------------
Now study the nature of each body, its role and functions. Do you feel they
---------------------- have an impact on the workings of public relations?
----------------------
11.6 GOVERNMENT BODIES
----------------------
DAVP : Directorate of Audio Visual Publicity (India)
---------------------- The Directorate of Advertising & Visual Publicity (DAVP) is the nodal
---------------------- agency of the Government of India for advertising by various Ministries and
organisations of the Government of India, including public sector undertakings
---------------------- and autonomous bodies.
---------------------- The primary objective of the Government in advertising is to secure the

widest possible coverage of the intended content or message through various
---------------------- newspapers and journals of current affairs as well as science, arts, literature,
sports, films, cultural affairs, etc. which are published daily, weekly, fortnightly
---------------------- or monthly.

In releasing advertisements to newspapers/journals the DAVP does not Notes
take into account the political affiliation or editorial policies of newspapers/
journals. However, DAVP would avoid releasing advertisements to newspapers/ ----------------------
journals, which incite or tend to incite communal passion, preach violence,
offend the sovereignty and integrity of India or socially accepted norms of ----------------------
public decency and behaviour.
----------------------
DAVP is the nodal agency for undertaking multimedia advertising and
publicity of policies and programs of the government. The advertising unit of the ----------------------
Ministry of Information and Broadcasting was declared an Attached Office of
----------------------
the Ministry on October 1, 1955 with a new name, Directorate of Advertising &
Visual Publicity (DAVP). DAVP was further declared as Head of a Department ----------------------
on April 4, 1959.
DAVP has been instrumental in creating awareness amongst the masses on ----------------------
socio-economic themes, seeking their participation in developmental activities ----------------------
and in eradication of poverty and social evils.
DAVP performs the functions of a multi-media advertising agency for ----------------------
the Central Government and acts as service agency for Central Government ----------------------
ministries/departments to meet their publicity needs, including production of
media inputs as well as dissemination of messages/information. ----------------------
It also helps Central Government departments in formulating ----------------------
communication strategies/media plans and help implement them at the grass-
roots level by providing multi-media support. ----------------------
The channels of communication used are Advertisements, Exhibitions,
----------------------
Outdoor Publicity which include display of hoardings, kiosks, bus panels, wall
paintings, cinema slides, banners etc., Printed Publicity - Booklets, folders, ----------------------
posters, leaflets, calendars, diaries etc., Audio & Visual Publicity – Spots,
jingles, sponsored programs, short films etc. ----------------------
DAVP has a network of offices spread all over the country. There are ----------------------
two Regional Offices at Bangalore and Guwahati, two Regional Distribution
Centres at kolkata and Chennai and 35 Field Exhibition Units, which include ----------------------
seven mobile exhibition vans, seven family welfare units and 21 general field
exhibition units. ----------------------
All India Radio (AIR) ----------------------

All India Radio is a national service planned, developed and operated by ----------------------
the Ministry of Information & Broadcasting under the Government of India.
Sound broadcasting started in India in 1927, with the proliferation of private ----------------------
radio clubs.
----------------------
The operations of All India Radio began formally in 1936, as a government
organisation, with clear objectives to inform, educate and entertain the masses. ----------------------
When India attained Independence in 1947, AIR had a network of six ----------------------
stations and a complement of 18 transmitters.
The coverage was 2.5% of the area and just 11% of the population. Rapid ----------------------
expansion of the network took place post Independence. ----------------------

Notes AIR today has a network of 215 broadcasting centres with 144 medium
frequency (MW), 54 high frequency (SW) and 139 FM transmitters.
----------------------
The coverage is 91.42% of the area, serving 99.13% of the population.
---------------------- AIR covers 24 languages and 146 dialects in home services. In external services,
it covers 27 languages, 17 national and 10 foreign languages.
----------------------
Commercial Broadcasting Service
---------------------- Advertising over ‘air’ began with broadcasting in India. The Indian
---------------------- Broadcasting Company, which started operation in July 1927 used both spot
and sponsored advertisements to finance a part of its expenditure. The activity
---------------------- was discontinued after 1934.
---------------------- There was a re-thinking for some years and ultimately the Government of
India decided to introduce advertising on Vividh Bharathi Service of All India
---------------------- Radio.
---------------------- This service was started on 3rd October 1957. Vividh Bharati was made
the carrier service and the existing transmitters carrying Vividh Bharati program
---------------------- were converted into Commercial Broadcasting Centres in a phased manner.
---------------------- Doordarshan (DD)
---------------------- Doordarshan, a Public Service Broadcaster, is the largest terrestrial

network in the world. The service was started on 15th September, 1959 to
---------------------- transmit educational and developmental programs on an experimental basis
with half an-hour programming.
----------------------
A major land-mark was the introduction of colour television in 1982
---------------------- with Asiad ’82 (9th Asian Games) which ushered in a major revolution in
broadcasting in the country.
----------------------
This was followed by a phase of rapid expansion of Doordarshan when in
---------------------- 1984, DD installed a transmitter in the country more or less every day.
---------------------- As on 31st March 2005, Doordarshan has 1314 transmitters (1188 for DD
1 + 121 for DD 2 + 5 others) with 56 studio centres and 23 satellite channels
---------------------- (which includes Gyandarshan).
---------------------- The flagship of Doordarshan - DD 1 (National) operates through a
network of 1188 transmitters of varying power, covering 77.5% of the land area
---------------------- and 89.6% population of India.
---------------------- Being the primary channel of Doordarshan, it has three major components
of program - information, education and entertainment.
----------------------
The information component consists of News and Current Affairs. The
---------------------- education component is drawn from the contributions from IGNOU, UGC,
CIET, SIET and other sponsored programs like TURNING POINT (Science
---------------------- magazine) and Terra Quiz (a programs on environment).
---------------------- Question Hour in Parliament is telecast live on the National channel.

The entertainment programs mainly consists of mid-day daily soaps,
---------------------- feature films etc.

Doordarshan has made a significant contribution to accelerate socio- Notes
economic change, promote national integration and stimulate scientific temper.
Being a Public Service Broadcaster, it strives to carry messages in its ----------------------
programs about issues such as population control, family welfare, environment ----------------------
and ecological balance, highlighting the need for social welfare measures for
women, children and the less privileged. It has also given ample importance to ----------------------
sports and the artistic and cultural heritage of the country.
----------------------
Its diverse network has been quite successful in meeting this goal, as far
as residents of India were concerned. ----------------------
Today, using the Internet, a large number of viewers the world over can ----------------------
have access to the content aired by Doordarshan, at the click of a mouse.
Doordarshan has a three tier program service - National, Regional and ----------------------
Local. The emphasis in the national programs is focussed on events and issues
----------------------
of interest to the entire nation. The regional programs are beamed on DD
Channel from the state capital Kendras at specific times and on the 11 Regional ----------------------
Language Satellite Channels (RLSCs) and relayed by all transmitters in the
respective States. ----------------------
Directorate of Field Publicity ----------------------
Field Publicity came into existence in 1953. The set-up was created under
----------------------
the integrated publicity program named “Five Year Plan Publicity Organisation”.
Later in 1959, a full-fledged Directorate was constituted. It is engaged in the ----------------------
task of publicising various programs and policies of the Government through
its network of 268 Field Publicity Units under the control and supervision of 22 ----------------------
Regional Offices.
----------------------
Publicity to the policies and programs of the Government and people’s
reaction are gathered through the network of field units. The field units of the ----------------------
Directorate utilise various modes of communication viz film shows, group
discussions, public meetings, seminars etc. The units also utilise the local ----------------------
festivals and celebration of national days such as Independence Day and
----------------------
Republic Day for mobilising mass participation in community development
programs. ----------------------
Films Division
----------------------
This media unit of Ministry of Information & Broadcasting is engaged in
the production of documentaries and news magazines for publicity of Central ----------------------
Government programs.
----------------------
Over the last 50 years, Films Division has been motivating the broadest
spectrum of the Indian public to enlist their active participation in nation ----------------------
building activities. The aims and objectives of the Division, focused on national
perspectives, are to educate and motivate the people in the implementation of ----------------------
national programs and to project the image of the land and the heritage of the ----------------------
country to Indian and foreign audiences.
The Division produces documentaries/news magazines from its ----------------------
headquarters at Mumbai, films on defence and family welfare from New Delhi ----------------------
and features with a rural bias from the regional centres at Kolkata and Bangalore.

Notes The documentaries and newsreels of State Governments are also featured
in the Division’s release on the theatrical circuit. The division sells prints, stock
---------------------- shots, videocassettes and distribution rights of documentaries and features in
India and abroad.
----------------------
By organising five International Film Festivals for documentary, short
---------------------- and animation films at Mumbai, the Division has emerged as a powerful force
behind the documentary film movement in the world.
----------------------
The National Film Archive of India (NFAI)
---------------------- NFAI was established as a media unit of the Ministry of information and
Broadcasting in February 1964. With headquarters at Pune, NFAI has three
----------------------
regional offices at Bangalore, Kolkata and Thiruvanthapuram. Its three principal
---------------------- objectives are to:
a) trace, acquire and preserve for posterity the heritage of Indian cinema
----------------------
b) classify, document data and undertake research relating to films
----------------------
c) act as a centre for the dissemination of film culture
---------------------- Another important program of NFAI is film teaching scheme comprising
---------------------- long and short-term Film Appreciation courses, conducted in collaboration with
FTII and other educational and cultural institutions.
----------------------
Central Board of Film Certification
---------------------- The Central Board of Film Certification, with its headquarters in Mumbai
is responsible for certifying the films produced in India as well as outside the
----------------------
country for public exhibition. It is a statutory body under the Administrative
---------------------- Control of Ministry of Information & Broadcasting. Under entry 60 of the
Union list in the 7th Schedule of the Constitution, the Central Government is
---------------------- responsible for sanctioning of Cinematograph Films for Public Exhibition in
India.
----------------------
The Board gives four categories of certificates “U” for unrestricted
---------------------- public exhibition, “A” for public exhibition restricted to adults only, “UA” for
unrestricted public exhibition with parental guidance for children below the age
----------------------
of 12 and “S” for exhibition to restricted audience such as doctors etc.
---------------------- These certificates are issued through the Regional Offices of the Board
---------------------- located at Bangalore, Kolkata, Chennai, Cuttack, Guwahati, Hyderabad,
Mumbai, New Delhi and Thiruvananthapuram.
---------------------- Any appeal against the decision of the Board lies with the Film Certification
---------------------- Appellate Tribunal.
Publication Division
----------------------
Publication Division is one of the leading publishing houses of the country
---------------------- and the largest in public sector.
---------------------- It publishes and sells books and journals at affordable prices. Some of
---------------------- the important journals published by the Division include Yojana, Kurukshetra,
Employment News, Aajkal etc. published in English, Hindi and Urdu every
week. Employment News/Rozgar Samachar is the largest circulated career Notes
guide.
----------------------
It carries information about job vacancies in Central/State Government
departments, public sector undertakings, educational institutions and reputed ----------------------
private organisations. It has so far published more than 7500 titles.
----------------------
The Division has published perhaps the largest series by a single individual
- “The Collected Works of Mahatma Gandhi’ - in 100 volumes in English. ----------------------
Multi-Media Interactive CDs ----------------------

The Division has entered the field of e-publishing through its Multi-Media ----------------------
Interactive CD project.
----------------------
CDs on Brihadishwara Temple, Tanjavur, Indian Paintings, Sanchi Stupa,
Qutub and Mehrauli have been completed, while CDs on the Legacy of Adi ----------------------
Shankara-Cultural and Vedic Tourism in India, Monuments and Tourist Centres ----------------------
of Goa, Konark – A world heritage monument and Sufi Saints of India are in
progress. ----------------------
The Press Information Bureau (PIB) ----------------------
Roles and Objectives ----------------------
The Press Information Bureau (PIB) is the nodal agency of the Government ----------------------
of India for disseminating information to the print and electronic media, on its
various policies and programs. ----------------------
The PIB acts as an interface between the government and the media and ----------------------
the Information Officers serve as official spokesmen for the government.
----------------------
The organisation is headed by the Principal Information Officer at the
----------------------
national level. There are 8 regional offices and 35 branch offices all over India
for disseminating information. ----------------------
At the headquarters, the Bureau has a team of officers attached to various ----------------------
Ministries and Departments for the purpose of assisting them in the management
of the media and public relations. ----------------------
The information material released by the Bureau in Hindi, English, ----------------------

Urdu and other regional languages reaches over 8408 newspapers and media
----------------------
organisations. PIB also provides feedback to the government as reflected in the
media. ----------------------
Special feedback digests are prepared, analysing countrywide coverage ----------------------
of major happenings and decisions.
----------------------
The Regional and Branch offices act as nodal information offices for all
offices of the Union government in their area and coordinate information and ----------------------
publicity activities for them. ----------------------

Notes Press Relations Wing of PIB, New Delhi
The Press Relations wing’s basic function is to provide necessary facilities
----------------------
to journalists/media-persons.
----------------------
Services/Facilities Extended to Media
---------------------- Accreditation
---------------------- Accreditation is granted to media persons for the purpose of access to
sources of information in the government and also to news materials, written or
----------------------
pictorial, released by the PIB and/or other agencies of the Government of India.
---------------------- Accreditation is given to news media representatives in accordance with
---------------------- ‘The Central Press Accreditation Rules 1999’ as per eligibility conditions laid
down and with due approval of the Central Press Accreditation Committee.
----------------------
Central Press Accreditation Committee
----------------------
The Government of India constitutes a committee called the Central Press
---------------------- Accreditation Committee, which consists of the Principal Information Officer
as Chairperson and a maximum of 19 other members, representing different
---------------------- journalists associations/unions.
---------------------- Renewal of Accreditation
---------------------- The accreditation card is usually valid upto 31st December and has to be
renewed every year, by applying for renewal in a prescribed application form.
----------------------
Publication of Accreditation Index and Telephone Directory
----------------------
Accreditation Index and Telephone Directory containing various
---------------------- information viz. names, address, telephone numbers, fax numbers etc. of all
accredited media persons and media organisations are published every year and
----------------------
issued to all accredited media persons free of cost. Accreditation Index is also
---------------------- placed on the PIB web site.
---------------------- Telephone connnections on priority

Accredited media persons are allotted telephone connections on priority,
----------------------
on the recommendation of the PIB.
----------------------
Journalists’ Welfare Fund
---------------------- There is a Journalists’ Welfare Fund being maintained by the Ministry
of Information and Broadcasting. It is operated in accordance with prescribed
----------------------
guidelines.
---------------------- Press Lounge
---------------------- Press Lounge with all facilities such as newspapers/magazines, PTI/
UNI’s current news, TV and a work room with computers and Internet facility
---------------------- is made availabe to accredited media persons for professional use.
----------------------

Conference Hall Notes
A fully equipped PIB conference hall, situated at a central place, is
----------------------
available for press briefings/conference organised by different ministries and
government departments. ----------------------
Special Accreditation
----------------------
During international events or VVIP’s visit to India, special accreditation
cards and other allied facilities are provided to media persons, to enable them ----------------------
to cover the event effectively and smoothly.
----------------------
Press Tours
----------------------
Press tours are conducted by the PIB headquarters and its Regional/Branch
offices, to give publicity through media to various government development ----------------------
schemes/projects located all over India.
----------------------
Hospitality
----------------------
The hospitality grant is operated by PIO, which is meant for hospitality
of foreign/Indian editors, correspondents, other categories of journalists etc., in ----------------------
the interest of official publicity.
----------------------
Composition of Screening Committee
Chairman : Principal Information Officer ----------------------
Members :
Joint Secretary/Additional Secretary, Ministry of Urban ----------------------
Development Director of Estates Four journalists representing
prominent national level Journalistic Associations/ Federation ----------------------
IMPCC ----------------------
As per the directive of Ministry of Information and Broadcasting, Inter-
Media Publicity Co-ordination Committees have been set up at all the State ----------------------
Capitals and Union Territories: ----------------------
a) Objectives of IMPCC
----------------------
i) To identify themes for co-ordinated multi-media publicity and to
prepare a common brief for all the local media in consultation with ----------------------
State authorities on all-important subjects as they arise.
----------------------
ii) To review the campaigns of publicity and to evaluate their impact to
the extent possible. ----------------------
iii) To consider monthly program of the activities of the different media ----------------------
units and indicate the lines of co-ordination among them as well as
between the Central Media and the State Information Agencies. ----------------------
The seniormost officer among the local Central Media Heads is the ----------------------
Chairperson of the Committee. The Chairperson keeps himself/herself
acquainted with the work of all the media and gives suggestions for ----------------------
improvement to the head of the Media Units under intimation to the ----------------------
Ministry of Information and Broadcasting.
----------------------

Notes All local Principal Officers of Central Media Units, State Director of
Information/Public Relations/Publicity, Defence Public Relations Officers
---------------------- and Publicity Officers of Public Sector Undertakings are members of
IMPCC. The Inter-Media Publicity Co-ordination Committee meets at
---------------------- least once a month, and as often as necessary.
---------------------- b) Purpose
---------------------- The basic purpose of establishing the Inter Media Publicity Coordination
Committees was to effectively coordinate the publicity efforts of various
---------------------- Central Government Media Units as well as to achieve coordination with
the State Government on common themes, so as to achieve maximum
----------------------
projection of development programs and achievements through media set
---------------------- up.
c) IMPCC Activities
----------------------
Under the IMPCC banner, multimedia campaigns are organised on various
---------------------- burning issues. Recently the with the coordination of all media units, a
---------------------- campaign on Rainwater Harvesting in Kolar district of Karnataka was
successfully conducted.
---------------------- Various other wings of I & B, viz., Directorate of Field Publicity, Song
---------------------- and Drama Division, Press Information Bureau, Doordarshan and All India
Radio contributed towards creation of awareness about the government
---------------------- program.
---------------------- Similar campaigns were also organised on issues like AIDS, Sarva Siksha
Abhiyan and so on.
----------------------
----------------------
Summary
 The concept of public relations, spin, or media manipulation is now
----------------------
familiar. The scandals of government spin doctors have become
---------------------- increasingly prominent in the news. The world of commercial public
relations, however, is little known to the general public.
----------------------
 The secretive world of the corporate spin industry in the UK reveals
---------------------- a billion pound industry that wields extraordinary influence over
government, the media and public opinion.
----------------------
 In its earliest manifestations, PR in government was merely publicity,
---------------------- giving news to media and staging events or supplying information about
the organization and to attract media attention. There was no counselling
----------------------
or PR policy guidelines. Today the scene if different.
----------------------  PR is an indispensable tool in today’s management of both public sector
and private sector organisations. With the whirlwind growth of business
----------------------
and commerce in the public sector in India, the need for PR has assumed
---------------------- new meaning.
----------------------

 One of the areas that Public Relations operates in is the highly sensitive Notes
domain of ministers and the government. To put it in plain words – the
world of lobbying and public affairs. ----------------------
 Lobbying depends on experience and research. Well-connected individuals ----------------------
exploit their political contacts on behalf of clients, providing access to
key individuals. Nowadays lobbying companies maintain extensive ----------------------
files on politicians and other influential people so as to know who best
----------------------
to approach and in what way, in order to further a campaign. As with
other areas of PR, lobbying has become a more challenging discipline. ----------------------
Lobbying is used in influencing legislation and all kinds of government
decisions. ----------------------
 The hiring of PR agencies to promote a country’s image abroad is ----------------------
becoming an indispensable part of modern diplomacy. Many countries
are indulging in this, including India. ----------------------
 Government spin doctors and their commercial counterparts use skills ----------------------
and techniques to accomplish the same goal; to create a favorable public
image in the media. Several top PR people have managed to reach the top ----------------------
in both the governmental and business worlds.
----------------------
 In public relations, spin is a sometimes a pejorative term signifying a
heavily biased portrayal in one’s own favour of an event or situation. While ----------------------
traditional public relations may also rely on creative presentation of the ----------------------
facts, “spin” often, though not always, implies disingenuous, deceptive
and/or highly manipulative tactics. Politicians are often accused of spin ----------------------
by commentators and political opponents, when they produce a counter
argument or position. Skilled practitioners of spin are sometimes called ----------------------
‘spin doctors’. ----------------------
 The last section takes a look at the governmental bodies that are related
to the world of public relations and advertising, like DAVP, All India ----------------------
Radio, Commercial Broadcasting Service, Doordarshan, Directorate for ----------------------
Field Publicity, The National Film Archives, Films Division, the Press
Information Bureau (PIB), their role and functions. ----------------------
----------------------
Keywords
----------------------
●● Corporate PR: Analysis of the objective condition of the company’s
reputation and image. May involve conceptual reworking of the image. ----------------------
●● Corporate Communication: deliberately planned management of the ----------------------
communications affecting the perception and image of an organisation.
----------------------
●● Corporate Relations: the use of communication and public relations
techniques to build favorable attitudes toward a particular company with ----------------------
competitors, consumers, the financial community, stockholders, and other
publics. ----------------------
----------------------

Notes ●● DAVP : Directorate of Audio Visual Publicity (India)
●● DD : DOORDARSHAN
----------------------
●● UNI : United News of India
----------------------
●● PIB : Press Information Bureau
---------------------- ●● PTI : Press Trust of India
---------------------- ●● NFAI : THE NATIONAL FILM ARCHIVE OF INDIA
---------------------- ●● NGO: Non-Profit Organisation.

●● CERP : IPRA and European Center of Public Relations
----------------------
●● Lobbying: It’s the highly sensitive domain of ministers and the
---------------------- government.
---------------------- ●● Spin: ‘Spin’ can be defined as the art of making things appear in a more
favorable light than its inherent quality would merit, but with an important
---------------------- caveat: there should be no resort to uttering lies.
---------------------- ●● Spin Doctor: Skilled practitioners of spin are sometimes called “spin
doctors”, though probably not to their faces unless it is said facetiously.
----------------------

---------------------- 1. Describe the role of the government in public relations today.
---------------------- 2. What is the definition of ‘spin’? In which other areas is the word ‘spin’
associated?
---------------------- 3. What is meant by lobbying? How important is this in public relations?
---------------------- 4. Have you come across some companies that do a lot of lobbying? Mention
three of them.
----------------------
5. List the facilities provided by the public relations wing of PIB.
----------------------
6. Write about a famous PR personality and his agency, which is involved in
---------------------- public relations activities with the government.
---------------------- 7. Which industries, do you feel, has to deal with a lot of PR activities with
the government?
----------------------
----------------------

----------------------
1. False
----------------------
2. True
---------------------- 3. False
----------------------

Fill in the blanks. Notes
1. One of the areas that Public Relations operates in is the highly sensitive
----------------------
domain of ministers and the government. It is called lobbying.
2. A PR agency carefully identifies the peer group of the target legislator or the ----------------------
opinion-former and influences it. This is called grasstop communication.
----------------------
----------------------
Fill in the blanks.
1. In public relations, spin is a sometimes a pejorative term signifying a ----------------------
heavily biased portrayal in one’s own favour of an event or situation. ----------------------
----------------------
1. False
----------------------
2. True
3. True ----------------------
4. True ----------------------
5. True ----------------------
----------------------
Suggested Reading
----------------------
2. Wilcox, Dennis L. Essentials of Public Relations. ----------------------
3. Cutlip, Scott M. Effective Public Relations ----------------------

4. Jefkins, Frank. Planned Press and Public Relations. ----------------------
5. Reily, Robert. Public Relations in Action.
----------------------
6. Black, Sam. Sharpe, Melvin. Practical Public Relations.
----------------------
7.
Aronoff, Craig and Baskins, Otis. Public Relations: Profession and
Practice. ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
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Public Relations Practitioner
UNIT
12
Structure:
12.1 Introduction
12.2 The Role of the PR Practitioner
12.3 The PRSA Statement
12.4 The Qualities of a PR Professional
12.5 Public Relations and the Law
Summary
Keywords
Suggested Reading
Public Relations Practitioner 329

Notes
Objectives
----------------------
----------------------
• Explain the role of a PR practitioner.
----------------------
• Discuss the PRSA Directives.
---------------------- • Define the Code of Conduct in PR as a profession.
---------------------- • Assess Ethics and avoid Unethical Measures.
----------------------
12.1 INTRODUCTION
----------------------
Every profession has a Code of Ethics to enable its practitioners to perform
---------------------- their functions conscientiously. It also enables the members of the profession to
strive for better understanding and cooperation among themselves. It lays down
---------------------- some laws for the PR profession and facilitates enforcement of discipline. The
---------------------- code is acknowledged and accepted not only by the profession, but also by the
public, who are protected by it.
----------------------
PR professionals base their principles on the fundamental value and
---------------------- dignity of the individual, holding that the free exercise of rights – especially
freedom of speech, assembly and the press – is essential for public relations.
----------------------
PR professionals dedicate themselves to the goals of better
---------------------- communication, understanding and cooperation among diverse individuals,
groups and institutions of society, of equal opportunity of employment in the
---------------------- public relations profession and to conduct themselves professionally with truth,
accuracy, fairness and responsibility to the public.
----------------------
---------------------- 12.2 THE ROLE OF THE PR PRACTITIONER

---------------------- If you are interested in pursing a career in Public Relations, you will have
to develop numerous skills.
----------------------
The Public Relations practitioner is a jack-of-all-trades and a master of
---------------------- some as well!
---------------------- As the number of communication mediums increase, the Public Relations
practitioner has to rapidly learn how to use them in his/ her practice. It is quite
---------------------- like a race, if you do not stay ahead you will never be able to catch up after the
others pass you by.
----------------------
You will need to be skilled in the application of new techniques by
---------------------- communication specialists. The more you know of the new techniques, the
---------------------- better equipped you are to do your job.
The last generation of Public Relations practitioners faced the challenge of
---------------------- becoming conversant with the computer and the enormous number of software
---------------------- programs that drove it. After that followed the Internet.

All these technologies have made communication faster and more efficient. Notes
Mentioned below are some roles that Public Relations practitioners must don:
----------------------
Advisors and Counsellors to Management
----------------------
Public Relations practitioners play a dual role. They are both advisers and
counsellors to management. Public Relations practitioners act as the eyes, ears ----------------------
and often mouth of the organisation.
----------------------
Their activities are as follows:
a) They are constantly looking for any information that may have a positive ----------------------
or a negative impact on the working of the organisation. ----------------------
b) They look at all the relevant newspapers and magazines, view television
news. ----------------------
c) Study the advertisements and communication efforts of competitors. ----------------------
d) Analyse government policy decisions and assess their impact.
----------------------
e) They listen to relevant radio programs; attend trade and industry seminars
to listen to points of views on interesting issues. ----------------------
f) They have a system in place to gather all this information and analyse ----------------------
whether the information will have a beneficial or harmful impact on the
working of their organisation. ----------------------
After careful thought, they will come up with a strategy on how their ----------------------
company should react to various news issues and what steps they should take in
the short term and the long term. ----------------------
They will also study the possible impact of choosing a plan of action and ----------------------
be able to anticipate the results.
Having collected, analysed and prepared a strategy to address relevant ----------------------
communication related issues, they advise the top management in their company. ----------------------
As there would be different issues and of varying importance, they advise the
concerned people. ----------------------
For example, the PR practitioner may have been closely tracking the ----------------------
proposed policy changes by the government regarding Human resource
practises. ----------------------
These issues could be six months old. Some people in the government ----------------------
may favour certain changes, some who oppose them and some who really do
not care about the changes. ----------------------
The PR practitioner, by carefully gathering news reports and conducting ----------------------
some commissioned research as well, would be able to advise or counsel the
Vice President of Human Resources in his company regarding the plan of action ----------------------
to be adopted and the possible results.
----------------------
Should his Vice President HR make a public statement in a prominent
newspaper giving his support for the proposed government policy? Or should ----------------------
the company keep a low profile and wait and watch? should they actively lobby
to influence the policy makers to change their stand? ----------------------

Notes Taking a wrong decision could seriously impact the business of the
company, therefore the PR practitioner must advise and counsel top management
---------------------- to consider all the facts and then take the most sensible decision.
---------------------- Technicians in Communication disciplines
The PR practitioner has to understand and be skilled in the usage and
----------------------
application of all communication media. They should understand the strength
---------------------- and weaknesses of each media discipline and know how to use each media
discipline for the best advantage.
----------------------
Let us consider an example: your company has developed a new medicine
---------------------- that helps people with asthma lead normal lives.
---------------------- Asthmatic patients often have to take heavy medication to prevent and
control asthmatic attacks.
---------------------- The side effect of some steroid base medicines is that they weaken the
---------------------- person and make their limbs susceptible to fractures by depleting the calcium in
the bones.
---------------------- A number of asthmatics, therefore, are unable to participate in activities
---------------------- that involve physical exertion.
The medicine your company had developed is absolutely safe and has no
----------------------
side effects at all.
---------------------- It would have tremendous benefit for asthmatics, particularly young children,
and allow them to lead a normal life playing games, going for picnics. etc.
----------------------
To create publicity for this event, the best communication discipline
---------------------- would be television because it would allow people to see and hear the patient
---------------------- who has used your medicine. The person could be interviewed and film clips
showing the before and after effects of the medicine could be aired.
---------------------- The impact of seeing and hearing an asthmatic person, who is
---------------------- demonstrating the benefit of the medicine would have a far greater impact on
potential customers for your product than if you saw the same information
---------------------- conveyed as a news report in a local newspaper.
---------------------- Knowledge about print, broadcast, advertising, direct mail, events,

seminars and conferences, market research…etc. are absolutely essential.
----------------------
Each communication discipline has its own characteristics and therefore
---------------------- unique strengths and weaknesses. It is up to the PR practitioner to exploit these
advantageously.
----------------------
Advice Management on Policy
---------------------- The PR practitioner also performs a very important role of being the
conscience of the organisation.
----------------------
Issues related to ethics and values, unfair trade practises, customer
---------------------- relationships and community citizen roles are a matter of concern to the
---------------------- organisation. The PR practitioner helps not only prepare policy frameworks but
also develop systems and processes for their implementation.
For example, if he believes that his organisation should practise a Notes
democratic culture, it would be in the interest of the organisations to publicise
the policy and say that it is an ‘equal opportunity employers.’ ----------------------
He would, therefore, make sure that no candidates are discriminated ----------------------
against in interviews because they belong to any particular caste, race, creed or
religious order. ----------------------
Plan Public Relations Programs ----------------------
Public Relations is concerned not only with communicating the right
----------------------
messages but also with the practise of all that we say that the organisation is
claiming to do. It is not only about the saying but also the doing. In fact, in good ----------------------
companies you perform first and then speak about it later.
----------------------
Depending on the business, marketing and marketing communication
objectives of the company the, PR practitioner will develop a PR program. ----------------------
Traditionally the PR program is divided into internal and external ----------------------
programs. The internal program addresses all those people who are a part of the
company employees, management, shareholder etc. ----------------------
The external program addresses all those people who are critical to ----------------------
the company’s existence, such as customers, potential customers, suppliers,
government bodies etc. ----------------------
The PR programs are planned with specific objectives and corresponding ----------------------
strategies and activity plans are drawn up. Subsequently, resources of men (who
will do it), money (how much money needs to be spent) and minutes (how ----------------------
much time will it take to be done) are shared across the programs, both internal ----------------------
and external.
Sell Programs to Top Management ----------------------
As PR practitioners have access to a lot of information and are constantly ----------------------

in touch with news sources as well as people who shape the preparation of news
----------------------
content, they develop a wide perspective of what is happening in the business
environment. What are the technological advancements, social changes, ----------------------
financial climate, political leanings etc.?
----------------------
Based on their analysis of all these factors, PR practitioners develop PR
programs to take the best position for practising business. They then have to ----------------------
make other senior members of the management team understand the reasons for
following a particular course of action and the likely implications. ----------------------
This in reality becomes quite time consuming, particularly if it is a large ----------------------

company and a number of the decision makers have wrong or incomplete
----------------------
knowledge of the changes happening in the business environment.
Therefore, it is up to the PR practitioner to educate them on relevant ----------------------
happenings, clear all their doubts and then convince them to support a particular
----------------------
course of action that will be most beneficial for the company.
----------------------

Notes Listen to Speeches, Make Speeches and Write Speeches for others
In every organisation there are requirements for management to
----------------------
communicate with different audiences. This sort of communication is called ‘one
---------------------- to many communication’, as one person is talking to a number of other people.
Surveys conducted over the years reveal that the one thing that scares
----------------------
people more than anything else is –making a public speech.
---------------------- Public Relations practitioners troubleshoot this problem for their company
---------------------- people. They help them prepare speeches-rehearse and finally give the feedback.
This also means that they themselves have to be skilled in making speeches.
----------------------
As gathering information is a critical part of the Public Relations function,
---------------------- they also have to regularly attend to functions where important people deliver
speeches.
----------------------
Invite Speakers for Company Meets
---------------------- Heads of Chambers of Commerce, Government officials, educationists,
---------------------- local community representatives and customers are all-important people and
can impact a company’s future.
----------------------
Interaction with them helps companies develop relationships. It is the
---------------------- responsibility of the Public Relations practitioner to identify and invite these
people as a part of a long-term business strategy. Very often, the presence of a
---------------------- celebrity can liven up a routine company function. One such example is that of
---------------------- a Pune based company – Alfa Laval that invites film stars and sports people to
meet their employees at annual functions.
---------------------- Place Speakers on Radio and TV Programs
---------------------- Every organisation has to communicate with audiences, on whom the
success or failure of business can depend.
----------------------
It would be good for the organisation, if the people understand the business
---------------------- and the value offered, through your products and services. Then it is more likely
---------------------- that they will buy from you.
As every organisation is a collection of people, it is critical that as
----------------------
many people as possible are able to communicate with relevant audiences
---------------------- and showcase their unique abilities for this is what cumulatively makes the
organisation what it is.
----------------------
Therefore, the PR practitioner is always on the lookout for speaking
---------------------- opportunities for the people in his company. These could be on radio, television,
seminars or conferences.
----------------------
Plan, Conduct and Attend Meetings
----------------------
Meetings are generally instances of ‘many to many’ communication
---------------------- situations .The PR practitioner has to identify occasions to have meetings,
particularly if there have been important developments in the business
---------------------- environment and appropriate actions need to be taken.

On the other hand, the PR practitioner may merely sit in on company meeting Notes
to gauge the quality of communication exchange:
----------------------
 Are there bottlenecks in the communication process?
 What is the level of enthusiasm and motivation etc.? ----------------------
Prepare Publicity Items ----------------------
A good PR practitioner is multi skilled and can work comfortably with ----------------------
all communication mediums. A large part of his responsibility is generating ----------------------
publicity for all the good work the company is doing while underplaying work
that should not get publicity. ----------------------
A large part of generating publicity is preparing materials like press ----------------------
releases, brochures, leaflets, webpages, for distribution to the media.
----------------------
However, there would be times when the company does not have any
interesting information to give out. It then depends on the PR practitioner to ----------------------
conceptualise an event that would attract favourable publicity.
----------------------
Liaise with Editors and Reporters
----------------------
Media relations have become an extremely specialised field. This is
----------------------
largely due to the vast number of publications television channels, radio stations,
websites, etc. ----------------------
And all of these operate at different levels - local, regional, national and ----------------------
international.
----------------------
Some are general interest in their content (India Today) while others are
highly specialised and cater to niche audiences (PC Quest). ----------------------
Moreover, the tremendous movement in the media industry and journalists ----------------------
frequently changing jobs and you can guess why it is so difficult to develop
enduring relationships in media relations. ----------------------
The good PR practitioner realises this and also understands the nature of ----------------------
the media person. ----------------------
Media people always look for stories that will interest their readers- they ----------------------
are not interested in helping you publicise your business.
----------------------
Skillful media relations involve treading the fine line between catering for
your organisations publicity objectives while respecting the journalists’ need ----------------------
for quality news that would interest their readers/viewers or listeners.
----------------------
Hold Press Conferences and Write Feature Articles
----------------------
This is a part of media relations activity. Press conferences are occasions
when your organisation needs to communicate some important and urgent ----------------------
information to the media community at one instance. Relevant media people
----------------------
are invited to a venue- usually the conference hall in a hotel and the nominated

Notes company official addresses them. Press conferences enable interaction as the
media persons can ask quiz to the company official.
----------------------
i) Holding a Press Conference is like Organising an Event
---------------------- Invitations have to be sent out, venue selected, catering arranged for, audio
---------------------- - visual aids set up and a host of other things.
ii) Writing Feature Articles
----------------------
Feature articles are opportunities to communicate through a publication
----------------------
with your select audience. The topics can vary from management, financial,
---------------------- business, political, environment to almost any interesting subject.
---------------------- The publication prints your article because it recognises your knowledge
in that particular subject and feels that their readers would stand to benefit
---------------------- from sharing your learning.
---------------------- People who regularly write feature articles get recognised as experts and
it helps the image of the organisation to have experts in their employment.
----------------------
Research on Public Opinion
----------------------
Communication is a two way process as it involves at least two people - a
---------------------- sender of messages and a receiver of messages.
---------------------- Most organisations are constantly communicating through various

mediums and often they do not receive feedback on the messages they have
---------------------- sent out. For example, your company has developed a new advertisement. The
---------------------- advertisement features a prominent film star. The advertisement campaign is
scheduled to run for a period of three months in newspapers and on television.
---------------------- Wouldn’t you like to know in the first week itself what your customers think of
the advertisement? Whether they like it or not?
----------------------
If they do not like it, you will be wasting your money.
----------------------
Therefore, the Public Relations person researches the public’s opinion
---------------------- and gets valuable feedback. This ensures that your company is sending the right
messages.
----------------------
Plan and Write Booklets, Leaflets, Reports and Bulletins
----------------------
As a part of communication responsibility, the PR practitioner has to
---------------------- write booklets, reports and bulletins. Some of this communication may be from
management to staff, some might be from the company to customers, some
---------------------- from the company to suppliers and so on.
---------------------- What to say, whom to say it to, when to say it, and how often to say it and
how to say it; are all questions that the PR practitioners has to find answers to.
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
1. PR professionals base their principles on the fundamental value and
dignity of the individual, holding that the free exercise of rights. ----------------------
1. The Public Relations practitioner is a jack-of-all-trades and a master
----------------------
of _____.
2. Public Relations practitioners play a dual role. They are both advisers ----------------------
and ________ to the management.
----------------------
3.
_________ articles are opportunities to communicate through a
publication with your selected audience. ----------------------
----------------------
Activity 1 ----------------------
Check the website of Public Relations Society of America or PRSA and find ----------------------
out and list the activities conducted by them for members.
----------------------
----------------------
12.3 THE PRSA STATEMENT
----------------------
Let us take a look at what is the PRSA.
----------------------
The Public Relations Society of America or PRSA, established in 1947,
is the peak professional association for U.S. based public relations practitioners ----------------------
(though it is making inroads internationally given US dominance in the Public
----------------------
Relations field).
----------------------
Additionally, PRSA has a number of local affiliates across the United
States (and internationally) that offer their own activities and services, as well ----------------------
as a student organisation; the Public Relations Student Society of America
(PRSSA) which has 255 chapters nationwide. In addition to offering professional ----------------------
advancement, networking, and ethics guidelines, PRSA offers the “Accredited
----------------------
in Public Relations” (APR) certification.
----------------------
PRSA has over 20,000 members and 114 chapters, which include
international affiliates. It is estimated, however, that less than 10% of public ----------------------
relations practitioners in the US belong to PRSA.
----------------------
The statement begins with the following information.
----------------------
“Public relations helps our complex, pluralistic society to reach decisions
and function more effectively by contributing to mutual understanding among ----------------------
groups and institutions. It serves to bring private and public policies into ----------------------
harmony. Public relations serves a wide variety of institutions in society such

Notes as businesses, trade unions, government agencies, voluntary associations,
foundations, hospitals, schools, colleges and religious institutions. To achieve
---------------------- their goals, these institutions must develop effective relationships with many
different audiences or publics such as employees, members, customers, local
----------------------
communities, shareholders, and other institutions, and with society at large.
---------------------- The managements of institutions need to understand the attitudes and values
---------------------- of their publics in order to achieve institutional goals. The goals themselves are
shaped by the external environment. The public relations practitioner acts as a
---------------------- counselor to management and as a mediator, helping to translate private aims
into reasonable, publicly acceptable policy and action.
----------------------
Let us remember the PRSA’s definition on the role of the public relations
---------------------- practitioner.
---------------------- ‘The Public Relations practitioner acts as a counsellor to management
and as a mediator, helping to translate private aims into a reasonable, publicly
---------------------- acceptable policy and action.’
---------------------- As a management function, public relations encompasses the following:
----------------------  Anticipating, analysing and interpreting public opinion, attitudes, and
issues that might impact, for good or ill, the operations and plans of the
---------------------- organisation.
----------------------  Counseling management at all levels in the organisation with regard to
policy decisions, courses of action, and communication, taking into account
---------------------- their public ramifications and the organisation’s social or citizenship
---------------------- responsibilities.
 Researching, conducting, and evaluating, on a continuing basis, programs
----------------------
of action and communication to achieve the informed public understanding
---------------------- necessary to the success of an organisation’s aims. These may include
marketing, financial, fund raising, employee, community or government
---------------------- relations, and other programs.
----------------------  Planning and implementing the organisation’s efforts to influence or change
public policy.
----------------------
 Setting objectives, planning, budgeting, recruiting, training staff,
---------------------- developing facilities – in short, managing the resources needed to perform
all of the above.
----------------------
 Examples of the knowledge that may be required in the professional
---------------------- practice of public relations include communication arts, psychology, social
psychology, sociology, political science, economics, and the principles
----------------------
of management and ethics. Technical knowledge and skills are required
---------------------- for opinion research, public-issues analysis, media relations, direct mail,
institutional advertising, publications, film/video productions, special
---------------------- events, speeches, and presentations.
----------------------

In helping to define and implement policy, the public relations practitioner Notes
uses a variety of professional communication skills and plays an integrative
role both within the organisation and between the organisation and the external ----------------------
environment.
----------------------
12.4 THE QUALITIES OF A PR PROFESSIONAL ----------------------
“A good PRO should be a multi faceted professional.” ----------------------
Harold Burson on PR Practitioners ----------------------
Harold Burson is a legend in the Public Relations industry. His firm Burson
----------------------
Marsteller Public Relations is amongst the five largest PR consultancies in the
world. ----------------------
Here is what he has to say about the skills of a PR practitioner.
----------------------
A PR practitioner acts as a ‘sensor of social change.’ He is in close touch with
the social, cultural, political, technological and economic environment. He is ----------------------
able to foresee changes in them and advise his organisation to act accordingly.
----------------------
He also acts as the ‘Corporate conscience’ of the organisation, advising them to
maintain high ethical and moral standards in their dealings. He apprises them ----------------------
on the correct behaviour in circumstances, where they are open to doubt. ----------------------
Above all he is a ‘Communicator’ laying down and maintaining the lines of
communication within and outside the organisation, with all the audiences on ----------------------
whom the success or failure of business depends. ----------------------
A PRO (Public Relations Officer) must have the following qualities in order to
become a successful PRO. ----------------------
The message may be of any kind and any type. But it needs transmission and ----------------------
the public wants quick communication. In that case, it is the ability of the PRO
----------------------
to enrich the common men, in however possible way. Whether the message is
written, spoken, printed, photographed broadcasted or filmed, the main need is ----------------------
fast communication.
----------------------
So it may be in any process and by any means any of the ways mentioned above
may be applicable as per demand of the public. ----------------------
A PRO must be confident and smart enough to deal with any type of catastrophe.
----------------------
A PRO must be a cool headed man with the ability and patience to control the
entire matter. ----------------------
A PRO must be social and pleasant to get along with any type of personality. ----------------------
PRO means, Public Relation Officer, which implies that the man has to maintain
close relation with the public. ----------------------
He must be kind and soft-spoken and must get along with the individual public ----------------------
psychology. He should not give them false notions or flatter them. A PRO must
----------------------
be genuine, amiable with a commoner.
----------------------

Notes Public Relations Officer must maintain an intricate relationship within his
own concern. He must have the integrity and the unity outside and inside the
---------------------- organisation.
---------------------- Most important is his relationship with the media which is an essential part of
his job. For media is the only way through which news can travel like lightening.
---------------------- Media relationship must have enough depth with a PRO.
---------------------- A Public Relation Officer must have imaginative power which is a necessary
quality. He must be capable enough to plan campaign, press conference or a
---------------------- simple event, brief photographers, buy print, edit house journals etc. and must
have an ability to figure out successfully any of the above functions.
----------------------
A PRO should never take it for granted that he has come to know everything.
---------------------- He should remain inquisitive and investigative by nature so that he can gain
more knowledge. His willingness and eagerness should always be bubbling,
----------------------
for the favour of himself as well as others. This is one of the most important
---------------------- qualities of a PRO.
---------------------- In short, a PR practitioner must be as follows:

 The PR personnel must have an analytical mind, farsightedness and the
---------------------- ability to handle crises. The job demands an alert mind for planning,
---------------------- defence and guarding the image of the firm, person or product.
----------------------  A good command over language is required for preparing news releases,
leaflets, reports, articles and effective oral communication skills to make
---------------------- press briefings, hold meetings, conferences and presentations.
----------------------  Good organisational skills and the ability to handle a number of tasks
simultaneously. Ability to appreciate suggestions from others is essential
---------------------- for effective functioning.
----------------------  Resilience, a good sense of humor, patience and diplomacy are assets
for PR professionals.
----------------------
---------------------- 1. A PR person must be confident and smart enough to deal in type of

catastrophe.
---------------------- 2. A PR person must be soft spoken and have good command over
language.
----------------------
----------------------
i. Conspiracy a. Published written information
---------------------- ii. Libel b. Illegal activity of a client
iii. Slander c. Use of the name or picture of another for
----------------------
trade purposes
---------------------- iv. Appropriation d. Distributing spoken defamation

Notes
Activity 2
----------------------
1. Meet a PR practitioner in your city and talk to him about his duties and
----------------------
responsibilities as a professional. Find out how much it matches with
what is outlined here in this unit. ----------------------
2. Visit some PR agencies in your city. Meet some people who work ----------------------
there, keeping in mind the qualities of a good PR professional. Now
list down the qualities that you could find in them. ----------------------
----------------------
12.5 PUBLIC RELATIONS AND THE LAW
----------------------
Public relations personnel must be aware that they can be legally held
----------------------
liable if they advice or tacitly support an illegal activity of a client or an
employer. This area of liability is called conspiracy. ----------------------
A Public relations officer should be thoroughly familiar with the concepts ----------------------
of libel and slander. Such knowledge is crucial, if an organisation’s internal
and external communications are to meet legal and regulatory standards with ----------------------
minimum legal complications.
----------------------
Corporations, to some degree, are also considered ‘public figures’ by the courts
for several reasons: ----------------------
 They engage in advertising and promotion offering of products and services ----------------------
to the public.
----------------------
 They are often involved in matters of public controversy and public policy.
 They have of access to the media - through regular advertising and news ----------------------
releases - that enables them to respond and rebut defamatory charges made
----------------------
against them.
The Fair Comment Defence ----------------------
You should know that organisations can do much to assure that their ----------------------
communications avoid materials that could lead to potential lawsuits.
----------------------
By the same token, organisations are somewhat limited in their ability to
use legal measures to defend themselves about criticism. ----------------------
Executives are often incensed when an environmental group includes their ----------------------
corporation on its annual ‘dirty dozen’ polluters or similar lists. Executives are
also unhappy when a broadcast consumer affairs reporter flatly calls the product ----------------------
‘rip-off.’ Or take the case of Pepsi and Coke being referred to as ‘pesticide’
----------------------
ridden.
A corporate reputation may be damaged and product sales may go down, ----------------------
but a defamation case is difficult to win because as previously mentioned, the
----------------------
accuser must prove actual malice. Also operating is the concept of fair comment
and criticism. ----------------------

Notes Code of Conduct
What is meant by Code of Conduct? Or what is a Code of Ethics for Public
----------------------
Relations?
---------------------- a) Code of Professional Conduct and Ethics for Public Relations
---------------------- Each profession – whether it is medicine, accountancy, law or business
management, or even politics – is governed by its respective code of ethics and
---------------------- principles.
---------------------- The code is the accepted set of manners and morals prevailing in a given section
of society. Ethics is the principles of conduct, based on the distinction between
---------------------- right and wrong and conduct is the manner of behaving from a moral point of
---------------------- view.
PR may be misused by practitioners. Hence, it is necessary that a professional
---------------------- body is answerable for an individual’s professional practice within the collectively
---------------------- defined and agreed upon code of conduct and ethics for the profession.
The code of professional conduct for public relations was adopted by the
---------------------- International Public Relations Association (IPRA) in May 1961. The public
---------------------- relations association of each country has its own code of conduct for its members.
 The IPRA and PRSI Code
----------------------
At the first All India Public Relations conference held in New Delhi on April
---------------------- 21, 1968 the Public Relations Society of India (PRSI) adopted the same code
for public relations practitioners in India as was adopted by IPRA in 1961.
----------------------
The Code includes the following :
----------------------
a) To be free and fair, honest and truthful while discharging the professional
---------------------- responsibilities as a member of the PRSI.
---------------------- b) To maintain professional standards for the practice of public relations in

India.
----------------------
c) To share the responsibilities for the good character and reputation of the
---------------------- public relations profession.
d) To keep the objectives in full accord with public welfare as well as the
----------------------
interests of clients or employers.
---------------------- e) To be guided in all activities by the standards of accuracy, truth and good
name.
----------------------
f) To safeguard the confidence of both present and former clients or employers.
----------------------
g) Not to engage in any activities in which they are directly or indirectly in
---------------------- competition with a present client or employer without the full knowledge
and consent of all concerned.
----------------------
h) To cooperate with fellow practitioners in curbing malpractices to the extent
---------------------- that the members live up to these principles and standards of practice, they
will be meeting their responsibilities for making the profession in which
---------------------- they are engaged worthy of continued public confidence.

i) To maintain personal and professional integrity, to maintain far dealing Notes
towards clients, employers and colleagues, and to be faithful towards the
public and media. ----------------------
Thus, the members can look at the profession of public relations as a very ----------------------
honourable one. Every PR professional must follow this code to maintain the
dignity of the profession and high standards in the work environment. ----------------------
The Public Relations Society of India is the apex body of PR practitioners ----------------------
in India. They are engaged in extending the mission of PRSI to integrate,
strengthen and advance ethical professional values and practices amongst its ----------------------
members, through regular interactions and training programs.
----------------------
They are also engaged in spearheading a movement to build value and generate
understanding for public relations amongst various stake holders, promote ----------------------
accreditation of working PR practitioners in the country
----------------------
 The International Code of Ethics for Public Relations
----------------------
Considering that all Member Countries of the United Nations Organisation
have agreed to abide by its Charter which reaffirms ‘its faith in fundamental ----------------------
human rights, in the dignity and worth of the human person’ and that having
regarding to the very nature of the human person, nature of their profession, ----------------------
Public Relations practitioners in these countries should undertake to ascertain ----------------------
and observe the principles set out in this charter.
Apart from ‘rights’, human beings not only have physical or material ----------------------
needs but also intellectual, moral and social needs, and that their rights are of ----------------------
real benefit to them only in so far as these needs are essentially met.
----------------------
Considering that, in that course of their professional duties and depending
on how these duties are performed, Public Relations practitioners can ----------------------
substantially help to meet these intellectual, moral and social needs.
----------------------
Lastly, considering that the use of techniques enabling them to come
simultaneously into contact with millions of people gives Public Relations ----------------------
practitioners a power that has to be restrained by the observance of a strict
moral code. ----------------------
On all these grounds, the undersigned Public Relations Associations ----------------------
hereby declare that they accept, as their moral charter, the principles of the
following code of ethics, and that if, in the light of evidence submitted to the ----------------------
society, a member of these Associations should be found to have infringed this ----------------------
code in the course of his professional duties, he will be deemed to be guilty of
serious misconduct calling for an appropriate penalty. ----------------------
Each member of the Association must maintain the following guidelines: ----------------------
Must Endeavour
----------------------
 To contribute to the achievement of the moral and cultural conditions
enabling human beings to reach their full stature and enjoy the indefeasible ----------------------
rights to which they are entitled under the Universal Declaration of the
----------------------
Rights of Man (United Nations, 10 December ‘48)

Notes  To encourage the erection of patterns and networks of communication
which in sponsoring the free circulation of essential information, would
---------------------- enable everyone within the group to feel informed, concerned, responsible
and part of a team.
----------------------
 To behave on all occasions and in all circumstances in such a way as to
---------------------- deserve the confidence of all those with whom they come into contact.
----------------------  To take into account the fact that because of the public character of his
profession, his behaviour even in private will have an effect upon the
---------------------- judgments formed about the profession as a whole.
---------------------- Must Undertake
----------------------  To respect, in the exercise of his profession the moral principles and rules
of the “Universal Declaration of the Rights of Man.”
----------------------  To respect and uphold the dignity of the human person and recognise that
---------------------- each individual has the right to form, by himself, his own judgment.
 To create the moral, psychological, and intellectual conditions of the true
---------------------- interchange of ideas, to recognise the right of the parties involved to explain
---------------------- their cases and express their points of view.
 To act, in all circumstances, in such a way as to take due note of the
----------------------
respective interests of the parties concerned, by constantly establishing the
---------------------- relationship between, on the one hand, those of the organisation.
 To respect his promises and engagements, which must always be arranged
----------------------
in terms which do not lead to confusion and act honestly and loyally on
---------------------- every occasion, in order to safeguard the confidence of both present and
former clients or employees.
----------------------
Must Refrain From
----------------------  To subordinate truth to other consideration. To discriminate information
---------------------- not based upon checked facts or facts that can be checked.
 To end his assistance to any enterprise or action which might harm the
---------------------- moral honesty, dignity or integrity of the human person.
----------------------  To make use of any method or technique which will lead to influence the
subconscious mind of individuals, in order to make them act irrationally
----------------------
and, by so doing, free them from the responsibility of their actions.
---------------------- Hence, it can be concluded that all these code of ethics are to be intricately
followed by a member of International Public Relation Association (IPRA)
----------------------
Libel and Privacy
----------------------
Practitioners responsible for writing news releases, speeches, corporate
---------------------- reports, newsletters, house organs and other communications are constantly
watchful for pictures or statements that might defame or invade privacy.
----------------------
Libel and privacy are two related areas of civil law that become increasingly
---------------------- important as aggressive lawyers pursue and generous juries encourage by voting
large damage awards.
Both practitioners and their employers can be held liable for tort violations. Notes
Libel and slander
----------------------
Defamation appears as libel (published written information) and slander
(distributing spoken defamation). It includes statements or communications ----------------------
that diminish the respect, goodwill, confidence or esteem; or produce other
----------------------
adverse feelings about a person or institution.
Related laws are designed to protect the reputations of persons and institutions. ----------------------
Four conditions – sometimes five – must be met before a statement is held
----------------------
legally libelous. The statement must :
i) Hurt someone’s reputation; be defamatory. ----------------------
ii) Identify the victim by name or be some other way obvious to others. ----------------------
iii) Be communicated – published or broadcast – to an audience other than the
----------------------
victim.
iv) Contain an element of fault, proof of a falsehood being disseminated with ----------------------
either malice or negligence.
----------------------
v) Or, in the absence of the fourth condition, cause provable damages or
injury. ----------------------
Newsletters covering public relations periodically report cases of practitioners ----------------------
suing in state courts under libel laws because of statements made after they were
fired from public relations firms or other organisations. Similarly, practitioners ----------------------
responding to press inquiries about terminated executives must be aware of
----------------------
their own state’s libel laws, as statements may be seen as damaging someone’s
reputation or future employment opportunities. ----------------------
Common law defenses, however, are well established as the following : ----------------------
 Truth is the oldest and strongest defense. The burden of proving falsity is on
the one bringing suit. The plaintiff must not only prove that the statement is ----------------------
false, but also that it was done with malice or negligence. ----------------------
 Privilege protects otherwise libelous statements that are fair and accurate
accounts of what occurs in government proceedings and documents. ----------------------
 Fair comment includes opinions about the performance of those in the ----------------------
public limelight; actors, politicians, sports stars, musicians and other ----------------------
celebrities. Any individual has the right to sue for libel, as do corporations.
----------------------
In some states nonprofit organisations (NGO) and other small groups can sue
for libel. Governments cannot sue for libel, but public officials may sue as ----------------------
individuals when they think their reputations have been subjected to defamatory
----------------------
statements that cause injury or actual damages. Suing may not be the wisest
course, however. ----------------------
Corporations and executives considering suits against critics who they feel ----------------------
defamed must consider the public relations ramifications of their suits in the
----------------------
court of public opinion, as well as their chance of winning in a court of law.

Notes Privacy
Citizens express increasing concern about protecting their private lives as
----------------------
computers make it increasingly easy to identify specific individuals and
---------------------- associate them with records of past and current behaviour.
---------------------- Legal scholar William L Prosser divided the law of privacy into four different
areas:
----------------------
i) Intrusion upon the plaintiff’s solitude or into his or her private affairs.
----------------------
ii) Public disclosure of embarrassing private facts about the plaintiff.
----------------------
iii) Publicity that places the plaintiff in a false light in the public eye; and
---------------------- iv) Appropriation for the defendant’s advantage of the plaintiff’s name or
---------------------- likeliness.
---------------------- Each of the four categories affects public relations. Intrusion means invading a
person’s solitude or seclusion, usually through illegal entry, unlawful search or
---------------------- electronic eavesdropping; secretly tapping conversations, whether in person or
---------------------- over the phone, may lead to privacy claims. Public disclosure of private facts is
similar to libel in that it violates the personality and may cause mental anguish.
---------------------- A person is placed in a false light when he or she is made to appear other than
---------------------- he or she is.
Appropriation occurs when someone uses the name or picture of another for
----------------------
advertising or trade purposes without consent.
----------------------
Summary
----------------------
 Every profession has a Code of Ethics to enable its practitioners to perform
----------------------
their functions conscientiously. It also enables members of the profession
---------------------- to strive for better understanding and cooperation among themselves. It
lays down some laws for the PR profession and facilitates enforcement
---------------------- of discipline. The code is acknowledged and accepted not only by the
profession, but also by the public, who are protected by it.
----------------------
 There are a number of activities that Public Relations practitioners must
---------------------- know such as Advisors and Counsellors to Management, Communication
---------------------- Disciplines, Advice Management on Policy, to planning Public Relations
Programs, selling Programs to Top management, listening to Speeches,
---------------------- making Speeches and writing Speeches for others, inviting speakers to
company meets, placing Speakers on Radio and TV Programs, Planning,
---------------------- conducting and attending meetings, preparing Publicity items, liaising
---------------------- with Editors and Reporters, holding conferences and writing Feature
Articles, researching on Public opinion, planning and writing booklets,
---------------------- leaflets, reports and bulletins – to name a few.
----------------------

 As the number of communication mediums increase, the Public Relations Notes
practitioner has to rapidly learn how to use them in his/her practice.
----------------------
 The PRSA’s statement outlines the role of the public relations practitioner.
 A good PRO should be a multi faceted professional. ----------------------
 Harold Burson, a legend in the Public Relations industry, talks about ----------------------
the skills of a PR practitioner. He says a PR practitioner acts as a
‘sensor of social change.’ He also acts as the ‘Corporate conscience’ ----------------------
of the organisation advising them to maintain high ethical and moral
----------------------
standards in their dealings. Above all he is a ‘Communicator’ laying
down and maintaining the lines of communication within and outside the ----------------------
organisation with all the audiences on whom the success or failure of
business depends. ----------------------
 Public relations personnel must be aware that they can be legally held ----------------------
liable if they advice or tacitly support an illegal activity of a client or an
employer. ----------------------
 If you are interested in pursing a career in Public Relations, you will have ----------------------
to develop numerous skills. The Public Relations practitioner is a Jack-of-
all-trades and a master of some as well! ----------------------
 Each profession – whether it is medicine, accountancy, law or business ----------------------

management, or even politics – is governed by its respective code of
ethics and principles. ----------------------
 The code is the accepted set of manners and morals prevailing in a ----------------------
given section of society. Ethics is the principles of conduct, based on the
----------------------
distinction between right and wrong conduct is the manner of behaving
from a moral point of view. ----------------------
 The IPRA and PRSI code of conduct specifies a pattern of behaviour for
----------------------
the Public Relations industry in India. Each country has also laid down its
own code of conduct. ----------------------
----------------------
Keywords
----------------------
●● Public Relations Manager: This manager oversees plans and programs
designed to promote a favorable image for a company or institution among ----------------------
its various publics such as customers, dealers, investors, government,
employees, and the general public. The marketing aspects of the public ----------------------
relations job are concerned with obtaining publicity for marketing ----------------------
programs (such as for a new product launch). The responsibility for
product publicity may reside with the public relations manager or with the ----------------------
product publicity manager. The public relations manager would normally
report to corporate management whereas the product publicity manager ----------------------
would normally report to the marketing manager. ----------------------
----------------------

Notes ●● Perceptions: the image people have about a person or organisation or
brand
----------------------
●● PR Transfer Process: It is transferring certain negative emotions to
---------------------- positive.
●● IPR : Institute of Public Relations
----------------------
●● IRPA : The International Public Relations Association
----------------------

---------------------- 1. What do you think is the profile of a good PR practitioner?
---------------------- 2. List six qualities that you feel are compulsory in a good PR professional.
3. What are the four conditions that renders something ‘libel’?
----------------------
4. Mention ten points that specify the Public Relations code of conduct.
----------------------
5. List six activities that a Public Relations practitioner would be involved in.
---------------------- 6. As per the PRSA statement, what are the six conditions to be adhered to?
----------------------
----------------------
---------------------- 1. True
1. The Public Relations practitioner is a jack-of-all-trades and a master of
----------------------
some.
---------------------- 2. Public Relations practitioners play a dual role. They are both advisers and
counsellors to the management.
----------------------
3. Feature articles are opportunities to communicate through a publication
---------------------- with your selected audience.
1. True
----------------------
2. True
----------------------
---------------------- i. –b
---------------------- ii. –a
---------------------- iii. –d
iv. –c
----------------------

Notes
Suggested Reading
----------------------
2. Reily, Robert. Public Relations in Action. ----------------------
3. Black, Sam. Sharpe, Melvin. Practical Public Relations. ----------------------
4.
Aronoff, Craig and Baskins, Otis. Public Relations: Profession and ----------------------
Practice.
----------------------
----------------------
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----------------------
----------------------
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----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes
----------------------
----------------------
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Principal Areas of PR Work
UNIT
13
Structure:
13.1 Introduction
13.2 The PR Plan
13.3 Corporate Social Responsibility
13.4 The Press Conference
13.5 Other PR Events
13.6 Techniques for TV and Radio
13.7 Preparing Press Conference Material
13.8 Areas of PR Work
Summary
Keywords
Suggested Reading
Principal Areas of PR Work 351

Notes
Objectives
----------------------
----------------------
• Recognise and construct a PR Plan.
----------------------
• Analyse the importance of corporate social responsibility.
---------------------- • Learn how to plan and conduct a Press Conference.
---------------------- • Select and use a mailing list with ease for Press Relations.
----------------------
13.1 INTRODUCTION
----------------------
There are various areas that Public Relations impacts, but the entire activity
---------------------- has to be planned out with the minutest of details. For Strategic Planning for a
PR campaign, there must be a fully worked-out public communications strategy
---------------------- namely, the formulation of the aims and tasks of the PR campaign.
---------------------- Here, defining the target audience is very important. Deciding upon the
mechanics of an effective influence on the target groups is critical. So are the
----------------------
forms and methods of implementing the PR campaign.
---------------------- You can plan for special events too. Evaluation of the effectiveness of the
PR campaign on the basis of qualitative indices is very important.
----------------------
Planning for Crisis
----------------------
In Crisis Communication, you are faced with the realities of crisis
---------------------- communications planning, communication plan development and budgeting;
plan development process; communication management policy; threat
---------------------- identification; scenario development; message development. A model plan
---------------------- outlines crucial contact lists, response procedure reminders and must also
review lessons learned and incident recap analyses.
---------------------- Anti-crisis PR
---------------------- A full diagnosis of the company’s activity is to be done. Other tasks include
Analysis of external factors influencing the process of anti-crisis management of
----------------------
reputation, devising and introducing by stages anti-crisis programs, organising
---------------------- special PR promotions raising the company’s image, and pursuing flows of
information conducive to the fall of the company’s image.
----------------------
Corporate PR
---------------------- Analysis of the objective condition of the company’s reputation and
image. Conceptual reworking of the image. Defining the target audience and
----------------------
diagnosing the mechanisms of effective influence. Devising a corporate style.
---------------------- Strategic advancement and polishing of the image. Maintenance of a positive
reputation in professional circles and business structures. Organisation of
---------------------- promotions for the maintenance of a corporate culture. Production of video
clips, issue of corporate publications. Organisation of corporate celebrations.
----------------------

Organising special events Notes
This involves the following: Providing organisational support for large-
----------------------
scale projects; integrated plan of the whole cycle of the PR campaign; writing
scenarios for special PR promotions and implementation of the concepts ----------------------
devised; holding mass events, city celebrations, festivals, opening ceremonies;
organisation of presentations, seminars, conferences; providing support for ----------------------
participation in exhibitions, charity and sponsorship events.
----------------------
Campaigns of information
----------------------
These campaigns should involve handling information in the correct
manner so that it can be used to the corporate’s advantage. They should be: ----------------------
information support for projects, placement of informative material in national
and regional media, devising a strategy of communication with professional ----------------------
associations and public organisations, creation of information controls, holding
----------------------
presentations for media representatives, organising press conferences, briefings,
“round table” discussions, individual interviews, tracking press cuttings, writing ----------------------
articles, press releases, assembling press kits.
----------------------
13.2 THE PR PLAN ----------------------
What can PR do for your company? ----------------------
A well executed Public Relations campaign is one of the best ways for
----------------------
your company to gain exposure and improve your company’s public image. A
public relations program can build the publics’ confidence in your company and ----------------------
its products. Good public relations can increase your sales, help you build your
brand value and lower your advertising costs. Public relations consultants can ----------------------
provide the assistance needed to develop an effective public relations strategy
----------------------
to help your business grow.
PR Campaign Plan ----------------------
We must note that PR consists of: ----------------------
All forms of planned communications, outwards and inwards, between ----------------------
an organisation and its publics for the purpose of achieving specific objectives,
concerning mutual understanding. ----------------------
Unless there are targets or objectives, there is nothing against which to ----------------------
evaluate results.
----------------------
Planned Operation
If PR is to be cost-effective, it should be a planned operation like ----------------------
marketing strategy, sales or advertising campaign. It can be planned in two
----------------------
ways: management can brief in-house PR or an external PR consultant.
But the situation has to be researched and reasons and purposes are there ----------------------
to work out a plan of positive action. It is not a case of preparing an isolated ----------------------
campaign, but organising a year’s work on the basis of time, money and other
resources such as equipment. The gin-and-tonic PRO is a ghost of the past. ----------------------

Notes Today’s PRO is a businessman, a budget-minded miser accountable for
every hour, every rupee he spends and proud of the documented, recorded
---------------------- achievements gained by his varied skills and knowledge.
---------------------- 6-Point Planning Model
This method follows a blend of the definition at the beginning and the Mexican
----------------------
Statement. The six stages are:
---------------------- i) Appreciation of the situation or the communication audit
---------------------- ii) Definition of objectives
---------------------- iii) Definition of publics

iv) Choice of media and techniques
----------------------
v) Budget of the cost of man-hours, materials and expenses
----------------------
vi) Evaluation of results
---------------------- The model sets out a logical sequence of decisions and actions and places PR in
---------------------- its problem-solving role in the effort to achieve mutual understanding.
Analysis of the 6-Point Model
----------------------
 Appreciation of the situation
----------------------
Sometimes called the communication audit, the object of this study is to
---------------------- establish the current image and to discover what is the state of hostility,
prejudice, apathy, prejudice or ignorance.
----------------------
It is no use planning a PR campaign unless we know where we are now.
----------------------  Definition of objectives
---------------------- The PRO or PR consultant needs to examine all the proposals of all
departments in an organisation to determine what communication
---------------------- problems have to be handled.
---------------------- It may be a new product launch, a rights offer of shares, the opening of a
new factory, participation in an exhibition, a recruitment campaign etc.
----------------------
Without these objectives a practical plan of campaign cannot be devised
---------------------- nor can its results be accessed.
----------------------  Definition of publics
In order to achieve our objectives, we need to define the special publics or
----------------------
target groups to whom PR messages are to be assessed.
---------------------- They may be as varied as employers, politicians, distributors, school
---------------------- children, opinion leaders, customers past, present and future, actual or
potential of either sex and of different ages and social grades.
----------------------  Choice of media and techniques
---------------------- Having put our objectives and publics together, we now have to decide
how or whether it is possible to communicate in order to achieve our
---------------------- defined objectives through our defined publics.

Media can be divided into the existing commercial (newspapers, Notes
magazines, radio, TV and trade exhibitions) and private created (house
journals, audio-visuals, visual aids etc ----------------------
Techniques are also involved such as press events, feature articles, radio ----------------------
and TV interviews, corporate identity schemes, talks and film/video/slide
shows or sponsorships. ----------------------
 The Budget ----------------------
The three main costs are time, materials and expenses.
----------------------
a) Material costs for printing, film production, catering, hospitality,
travel, time man-hours. ----------------------
b) It is no use listing great many objectives, identifying the right ----------------------
publics and deciding best media and techniques, if time and budget
are inadequate. ----------------------
c) Budgetary controls are likely. For example, daily time sheet. In PR ----------------------
consultancy, time sheet is critical so that time is rationed carefully
and calculated. ----------------------
Assessment of results ----------------------

There are three ways of measuring results: ----------------------
 by observation and experience ----------------------
 by evaluating media coverage and
----------------------
 by use of research techniques
----------------------
It all depends on the objectives – the staff of right calibre are recruited,
a share issue is oversubscribed, proposed hostile legislation is defeated ----------------------
or amended, a satisfactory percentage of staff accept relocation, or a
take-over bid is aborted, the results will be self-evident. If the campaign ----------------------
produces enquiries they can be counted. If the tone of media coverage
----------------------
is improved, it can be seen from press cuttings and monitored scripts of
broadcasts. ----------------------
But if it is a case of measuring a shift in attitude or opinion or awareness
----------------------
or correctness of the corporate image, a research survey such as opinion
poll or image study will be necessary. ----------------------
Consider Image
----------------------
Image is whatever is in people’s minds, according to the quality of their
information, awareness of experience. It can depend on the extent of their ----------------------
hostility, prejudice, apathy or ignorance or otherwise. Different people can ----------------------
have different images of the same thing e.g. nuclear power, trade union leaders,
foreign countries, religions. ----------------------
Ideally, those responsible for PR will try and achieve a consistent and true ----------------------
image. While a correct image is desirable (and a good one has to be earned)
there are some variations on the image as a correct impression. ----------------------

Notes 13.3 CORPORATE SOCIAL RESPONSIBILITY
---------------------- Corporate social responsibility is an important issue affecting the business
world today.
----------------------
It is not merely about ‘doing good’ or even being seen to be doing good,
---------------------- but it is about recognising a company’s responsibility to its stakeholders and
acting on their best interests.
----------------------
When McDonald’s presented its annual corporate social responsibility
---------------------- (CSR) report last year, the company clearly outlined its commitment to social
issues like children’s welfare, environment friendly policies, conservation
---------------------- animal welfare.
---------------------- This apart, there was a new addition: the company’s commitment towards
creating new Happy Meal options and help educate consumers about the role of
----------------------
nutrition and fitness in maintaining good health.
---------------------- What is the connection between corporate social responsibility and
corporate strategy?
----------------------
Traditionally, there’s been disconnect between a company’s philanthropic
---------------------- (read social) activity and corporate strategy. Today, no amount of lip service
to corporate social responsibility will be enough if it is not directly linked to
----------------------
overall corporate strategy – which should work towards the good of society in
---------------------- the long run.
---------------------- Corporate social responsibility is not about just bringing benefits to all the
stakeholders, including customers, employees and the community at large.
---------------------- Investors today are demanding to know where and how the company
---------------------- is spending money and the exact impact philanthropic activities have on
communities.
---------------------- Therefore, companies are now using their respective core competencies
---------------------- to deliver value through their social projects.
Take a look at a cross section of specialists in the not-so-profit sector
----------------------
globally and companies in India, one can capture the new face of corporate
---------------------- social responsibility that is emerging.
For instance, management gurus Michael E Porter and Mark Kramer, both
----------------------
founders of Foundation Strategic Group (FSG), argue that there is a more truly
---------------------- strategic way to think about philanthropy than in current mainstream practice.
They say that companies can use their charitable efforts to improve the quality
---------------------- of business environment in the locations where they operate.
---------------------- This aligns social and economic goals, improves a company’s long-term
business prospects and makes its philanthropic activities far more effective.
----------------------
This would mean rather than get into completely unrelated philanthropic
---------------------- activities, companies should attempt to utilise their competence to bring value
to stakeholders.
----------------------

Kramer, Chairman & Founder of the Centre for Effective Philanthropy says: Notes
“Over a period of time, the term ‘corporate social responsibility’ has
----------------------
become increasingly broad, referring to an ever larger set of business practices,
company values, legal requirements and voluntary contributions. For many ----------------------
companies today, the tangle of expectations that are grouped under the CSR
term are so complex that it is extremely hard to think clearly about a CSR ----------------------
strategy.”
----------------------
Kramer also says that every aspect of a corporation’s CSR should be linked
to corporate strategy by connecting it as lightly as possible to the company’s ----------------------
unique capabilities and competitive context.
----------------------
Infosys
----------------------
An interesting example of this new age CSR can be seen here in Infosys.
Infosys maintains that until recently most companies, especially large companies ----------------------
appeared to be all-powerful. However, events like financial scandals and the
collapse of the stock markets have undermined such positions. According to ----------------------
Infosys, CSR is a major part of the overall corporate strategy – it must have a ----------------------
holistic approach and needs to tie into the corporate objectives and strategy.
Investing in CSR has moved from being a public relations tool or a ‘feel- ----------------------
good’ factor to a key parameter to help companies become open and transparent. ----------------------
CSR no longer stands in isolation but has become a part of good corporate
governance policies. ----------------------
The reality today is that companies are taking the issues of ‘reputational ----------------------
risk’ very seriously; it is no longer seen as an option.
----------------------
The Infosys model is based on the principle that goodwill earned from the
stakeholders leads to the benefit of the corporation, which, in turn enables the ----------------------
corporation to further enhance stakeholder value. The company is using its core
competence in the area of technology to bring larger good to the community. ----------------------
As a part of its “Computers at Classroom” initiative, Infosys donated 1185 ----------------------
computers to 435 institutions across India. Infosys is working closely with the
government to conceptualise innovative ideas that has resulted in Government ----------------------
of India bringing out three different plans aimed at eradicating poverty through
----------------------
information technology.
First is the wired-village concept implemented in Gujarat. Second is 100% ----------------------
introduction of computer education in all schools in a district in Karnataka. ----------------------
Third is one allocation of resources for e-governance. All this is apart from the
company’s other social activities including fellowship programs and healthcare ----------------------
initiatives through Infosys Foundation, which is headed by Mrs Sudha Murthy.
----------------------
This is similar to the model CISCO follows globally to disseminate
knowledge through the internet. ----------------------
In the World Economic Forum at Davos, John Chambers, the CEO of ----------------------
CISCO, said he is looking for ways to leverage CISCO’S expertise in technology
for the betterment of the community. The company’s e-NGO initiative is helping ----------------------

Notes non-profit organisations use the internet and other productivity-increasing tools
to improve their ability to serve their constituents. One of the programs the
---------------------- company is proud of is the CISCO Networking Academy. The company believes
that education and internet are two great equilisers in life and the Networking
---------------------- Academics will succeed in teaching students around the world the skills they
---------------------- need to join the Information Age and to help their communities.
Aditya Birla Group
----------------------
The Aditya Birla group has the Aditya Birla Centre for Community
---------------------- Initiatives and Rural Development. They are involved in issues related to:
vocational training, education (has 35 odd schools), leprosy eradication, widow
----------------------
remarriage and orphanages.
---------------------- Tata Group
---------------------- In order to work out a comprehensive plan for its not-so-profit initiatives,
the Tata Group has instituted the Tata Council for community initiatives.
----------------------
CSR activities at Tata are more structured and are implemented through
---------------------- a management systems approach than before. Earlier these activities were
conducted only at the company level without a group level possibility.
----------------------
Traditionally, Tata companies established societies or trusts to carry out
---------------------- this work.
---------------------- Now newer companies have community facilitators and all Tata companies
now are engaged in the process of involving employees volunteering to do
---------------------- communities work development work, thereby, broadening the base to enable
social work while Tata Group will continue to provide health services, education
----------------------
and other tangible benefits.
---------------------- The focus is more on building self-reliant communities and working
towards sustainable livelihoods.
----------------------
For this the company intends to involve volunteer from within the group,
---------------------- who will be project leaders. They will be responsible for measuring human
---------------------- impact on a five-point scale of human excellence. The purpose is to improve the
quality of lives of the people at all times.
---------------------- For instance, the Tata Group may continue to provide for school buildings
---------------------- and support other expenses but the human indicator would be to see how the
group builds confidence in children and create measurable choices and future
---------------------- opportunities for their holistic development.
---------------------- In the last decade, Tata Steel has embarked on a new strategy of CSR,
which aims to take forward the contribution of business to sustainable
---------------------- development. The paradigm shift was to bring about sustainable development
of the communities we serve and enhance value creation.
----------------------
Not all companies in India are of the opinion that a company’s CSR
---------------------- needs to be necessarily linked to its corporate strategy.
----------------------

They feel that by doing so, a company is limiting the greater good it can bring Notes
to society.
----------------------
Activity 1 ----------------------
Visit a PR agency in your city. Find out what method they use for planning ----------------------
a PR campaign for their clients.
----------------------
----------------------
13.4 THE PRESS CONFERENCE
----------------------
Receptions and Conferences
From time to time you need to inform more than a handful of journalists ----------------------
about significant events or changes within your organisation and you may say ----------------------
“Let’s have a press conference.” Certainly senior management will be keen
to have one. All kinds of events will make a good story, but a full–scale press ----------------------
conference is not necessarily the most effective way of broadcasting it and it
will cost a considerable amount of money. ----------------------
The most common practice to get the media to visit you is to hold a press ----------------------
conference.
----------------------
There is only one reason for calling a press conference rather than
sending out a news release: the subject demands a question-and-answer format. ----------------------
If reporters want to meet and question your speaker, a press conference is in
----------------------
order. A press conference should be called when there’s a reason for two-way
communication between the organisation’s spokesman and the media to permit ----------------------
a forum.
----------------------
If a press conference does not have that purpose, it will result in a loss of
credibility to the sponsor. ----------------------
You do not use a press conference to achieve greater publicity. ----------------------
Wrong Time for Press Conference
----------------------
Before you set up a press conference, take a long, hard look at your plans
and answer these questions: ----------------------
Is there a more effective way to handle this information? ----------------------
Do you really need a question-and-answer session with journalists?
----------------------
If you answered no to the first question and yes to the second, your next
step is to take a look at the press kit you have assembled for the conference. ----------------------
Can anything be added to this material? Does it cover all the bases from ----------------------
all angles? If it does, then send it to the press; you don’t need a press conference!
It maddens reporters to spend time at a press conference when they could have ----------------------
been given the same information in a press release or press kit. ----------------------
----------------------

Notes If your material is not hard news, consider approaching a few carefully
selected reporters and developing stories directly with them instead of calling a
---------------------- press conference or inviting the press to an event.
---------------------- The results can be better, particularly if you are introducing a complex
new product journalists will want to examine.
----------------------
This is particularly true in the computer industry, for example. A Survey
---------------------- of 21 high-tech editors cited in Public Relations Journal concluded, “Press
conferences are regarded as rarely useful; press tours or mailed releases are
---------------------- preferred.”
---------------------- An editor of a popular Indian computer publication explains why the
journalists at his publication find press conferences only minimally useful:
---------------------- “We very much prefer to see products before they are released, under a non-
disclosure agreement.”
----------------------
“That’s because we want to be able to cover them when they’re new,
---------------------- which means we have to write about them as much as three months before
---------------------- they’re available. If we wait for a press conference to learn about new products,
our readers won’t know about them until they are old news.”
---------------------- There is another reason press conferences lose out, according to the
---------------------- same editor: “We prefer one-on-one product demonstrations so we can cover
the ground our readers want to know about. We’re more technical than other
---------------------- magazines at the bits and bytes level.”
---------------------- Find out the preferences and needs of the journalists you work with and
if you determine that they do not like press conferences, do not worry! There’s
---------------------- sure to be another, more effective way to work with them.
---------------------- If you work with a national or regional organisation or a business, you
have to decide which city is best for your press conference. You should consider
---------------------- the following factors when you choose a location.
---------------------- Sometimes the subject demands an on-the-scene location. A press
conference about coal mining in Dhanbad, Bihar would, most likely, be held in
---------------------- that state.
---------------------- You could also hold a simultaneous, auxiliary conference in a more
accessible location, perhaps using a satellite media tour to bring the out-of-the-
---------------------- way site to big-city journalists.
---------------------- Some cities have specialised print and broadcast reporters who will be
more likely than generalists to understand the subject of your conference and
---------------------- give you first-rate coverage.
---------------------- Delhi, for example, has reporters and commentators who specialise in
stories relating to the government.
----------------------
Mumbai has more journalists who specialise in financial stories than any
---------------------- other Indian city. Press conferences concerning show business work best in
Mumbai.
----------------------

Journalists specialising in agriculture are concentrated in North India. Notes
Cities where the local press usually gives you favourable coverage are
----------------------
better places for your press conference than areas where the media are neutral
or indifferent to your business or organisation. ----------------------
Local reporters often set the tone for the conference and influence the
----------------------
attitudes of national reporters.
On the other hand, make sure it does not look as if you are avoiding an ----------------------
obvious problem by running away from areas where you have trouble.
----------------------
If you hope to get network TV and radio coverage, try to stage your press
conference in a city with a network news staff. ----------------------
However, do not choose a location just because it has network-affiliated ----------------------

stations, since the networks often do not use material from their affiliates except
for disasters and major crimes. ----------------------
Once you have chosen your city, you will have to find a good location for ----------------------
your press conference.
----------------------
Determine whether most major media offices are in the same area of the
city. If that is the case, you will get better coverage if your conference is in that ----------------------
part of town. Hotel conference rooms are often used for press conferences, but
----------------------
private clubs and other centrally located meeting rooms are also possibilities. It
is not a good idea to hold a press conference or special event in a building with ----------------------
restricted access.
----------------------
Reporters will not appreciate having to sign in and wait for security
approval. If you must use such a facility, be sure you know in advance which ----------------------
reporters are coming.
----------------------
Give the list to the security guard, and have a publicity staff member or a
volunteer from the publicity committee on duty with the guard to make sure that ----------------------
reporters are admitted instantaneously.
----------------------
If you expect extensive radio and TV coverage, think about sound and
lighting for your press conference. Some hotels have meeting rooms with ----------------------
complete built-in sound systems, which can facilitate the conference, ask in
advance. ----------------------
If you cannot find a meeting room with a sound system, take a quick look ----------------------
in the yellow pages to find and rent the sound equipment you need. Without a
sound system, reporters converge on the speaker and poke microphones in the ----------------------
face. ----------------------
That can rattle even the best spokesperson and interfere with his effectiveness.
----------------------
Check to see if the room you rent has suitable lighting for TV cameras.
----------------------
This has two important advantages.
One, you decide how to light the scene so your speaker and props get ----------------------
better lighting. And two, television crews can travel lighter, arrive later, and ----------------------

Notes spend little or no time setting up. Given the tight schedules in most newsrooms,
this could be a deciding factor.
----------------------
Check each potential press conference or special event site to see if it is
---------------------- accessible to TV crews. Are the passageways, doorways, and elevators large
enough to accommodate bulky equipment? If the crews bring their own lights,
---------------------- are there enough heavy-duty power points for them? If the press conference
concerns a highly visual topic that TV reporters and newspaper photographers
----------------------
will want to shoot, consider holding it on location instead of in a conference
---------------------- room.
Preliminary planning
----------------------
Is the conference really necessary?
----------------------
Consider all aspects and examine the situation from all angles. Ask the following
---------------------- questions:
----------------------  Is the news such that speed of communication is of the essence?

 Is there some important hard news to impart such as discovery of a new
---------------------- and revolutionary drug, an announcement of a project which will create
---------------------- new employment opportunities?
 Is there a complicated scientific or technological angel to the story which
---------------------- requires the presence of experts to explain or demonstrate it?
----------------------  Does the story concern products to which people do not generally have
access and which can be put on show?
----------------------
 Is the product so new and different that it must be seen or sampled in
---------------------- person to be to understand what it is all about?
----------------------  Is there a fashion element to the product which needs to be seen?
A press conference for soft news such as product launches and the like is
----------------------
often seen as an opportunity to meet the journalists in influential media and to
---------------------- entertain.
a) Timing
----------------------
When a press conference is decided upon, timing will be important.
----------------------
An important story will need to be released as soon as possible, after
---------------------- all facts are known to the organisation or there will be the danger of the
story breaking in an uncontrolled way. Some events will need immediate
---------------------- reaction, while others can be held for a short period while detailed
---------------------- arrangements are being made.
Sometimes the timing is governed by factors external to the PR department,
---------------------- such as publication of financial results or market survey reports, the start
---------------------- of an advertising campaign for a new product or the date set for signing
of a contract.
----------------------
However, where the timing is flexible (from the company point of view),
---------------------- the following have to be considered:

i) Availability of key people from the company Notes
ii) Availability of celebrities, models and so on
----------------------
iii) Availability of a suitable venue
----------------------
iv) The time required to send out invitations and receive replies
v) The time required to put together the presentation with display ----------------------
material
----------------------
vi) The time required to produce press kits
----------------------
vii) The press dates of important publications
b) Type and budget ----------------------
Press conferences can be: ----------------------
i) News conference when there are immediate announcements to ----------------------
be made and there is hard news to be imparted. Refreshments are
unlikely to be elaborate and mid-morning or lunch is the best time. ----------------------
ii) A photocall, an event arranged specially for photographers. Here ----------------------
the item or event to be photographed may be staged. Here again, the
arrangements are not elaborate, the emphasis being on photographic ----------------------
facilities and the refreshments will be simple.
----------------------
iii) The press ‘reception’ which is the most frequent type. This is for
‘soft’ news, product launches being the most common. ----------------------
Budgets must be kept aside for all these activities. It can vary on the ----------------------
venue – whether it is at the premises of the company or a five star hotel
etc. ----------------------
Technically, there are three types of press conferences: ----------------------
(i) Regular Press Conference ----------------------
(ii) Emergency Press Conference
----------------------
(iii) Occasional Press Conference
----------------------
Each and every Press Conference should be accompanied with
photographs. ----------------------
c) Schedule the Press Conference
----------------------
Be aware of media deadlines. If you schedule your press conference between
9:00 A.M. and 11:00 A.M. on Tuesday, Wednesday, or Thursday, reporters ----------------------
from almost all the media will be able to attend and still have the time to
----------------------
digest the material before their deadlines.
Avoid holding press conferences during major national events and ----------------------
holidays; it is difficult to get the coverage. ----------------------
d) How to organise a Press Conference?
----------------------
One of the most important functions of a PRO is to organise Press
Conferences as and when required. ----------------------

Notes The Press Conferences are to be organised for various reasons. It may be
when a company or an organisation is faced with a crisis situation such as
---------------------- strikes, lock-outs, accidents, or any other industrial unrest.
---------------------- It may be required to organise a Press Conference to inform the press
about the outstanding achievements or performance by an organisation
---------------------- either in the government or public sector or in private sector. It may also
be required for informing the public about outstanding production, exports
----------------------
on foreign exchange earned by a foreign company during a financial year
---------------------- and so one Press Conferences are also organised by the ministers of both
the centre and state - the Prime Ministers and Chief Ministers - to inform
---------------------- the publics through the Press about an important policy decision of the
government.
----------------------
Press Conferences are organised by political parties and sometimes by
---------------------- an individual political leader, an MP or MLA to inform the public about
something important. Press Conferences are also organised whenever a
----------------------
plane or train accident occurs or for any other cause of national emergency.
---------------------- One of the most important functions of the PR Department is to organise
a Press Conference when necessary.
----------------------
For organising a Press Conference successfully, a PRO has to take a
---------------------- number of steps which may be enumerated as follows:-
---------------------- To finalise the subject matter of the Press Conference.
---------------------- Finalise the date, time and venue of the Press Conference. The dates of
the Press conference are to be finalised with the spokesman of the Press
---------------------- Conference. PROs cannot decide or the subject or the date and time of
the Press Conference. These are to be finalised in consultation with the
---------------------- spokesmen. The spokesman may be a Chairman, MD or any central or
---------------------- state minister or a high government officials, such as chief secretary.
(i) After finalising of the date, the PRO should finalise the time of the
----------------------
Press Conference. The most suitable time for a Press Conference is
---------------------- afternoon or before lunch or at noon.
(ii) To arrange for the transport to take the reporters to the venue of the
----------------------
Press Conference and to take them back to the press offices after the
---------------------- P.C.
---------------------- (iii) Drafting of the invitation.

(iv) Maintain a Press Conference’s Register
----------------------
(v) PROs should also arrange for a Photo coverage of the press
---------------------- Conference.
---------------------- The success of the conference depends upon the attendance of the Press
representatives.
----------------------
A successful conference requires 80% attendance. If the conference is
---------------------- arranged late in the evening, then it will be useless because the news will
not be published in the morning.
For Emergency Press Conferences there is no time or date nor is there Notes
any need to arrange for lunch/dinner. Planned/Routine Press Conference
should not be organised on Saturdays or Sundays, because detailed reports ----------------------
will not be published on those days.
----------------------
e) Sending invitation letters
----------------------
The letters should reach at least four days before the Conference. As a
follow-up, the PROs should ring up all the journalists to ensure that they ----------------------
have received the invitation and will be attending the PC.
----------------------
i) Format for Invitations
Invitations for press conferences and special events should always be ----------------------
typed with wide margins and limited to one page. Use a format that ----------------------
covers who, when, where, why, how, and what. Mention any photographic
possibilities. If the conference or event is not at a well-known location, ----------------------
indicate travel directions.
----------------------
Whether you are contacting newspapers or broadcasters, send your
invitation to the reporter who writes about your subject. Even though the ----------------------
invitation could be sent to the city editor at the newspaper or the news
assignment editor at a radio or TV station, and forwarded to the right ----------------------
reporter, it is better to direct it to a specific journalist. ----------------------
The city editor and the news assignment editor are generalists and they
may miss something that a specialist would know is important. The ----------------------
larger the newspaper or broadcaster, the more important it is to get your ----------------------
invitation directly to the right reporter.
----------------------
For a large daily newspaper, if your event or press conference offers
unusual photo possibilities, send a duplicate invitation to the photo ----------------------
assignment editor.
----------------------
Be sure you let him and the reporter know who else has received the
invitation. ----------------------
Three important people on your invitation list are the editors at UNI, PTI ----------------------
and Associated Press.
They compile the lists of press conferences, conventions, meetings, ----------------------
product and political demonstrations, picket lines and special events, ----------------------
which are sent out on the wires and arrive by Teletype in the newsrooms
at broadcasters and newspapers. ----------------------
Refreshments should be provided. Venue of the Conference should be ----------------------
(a) In the company’s conference Hall or (b) Conference rooms in Hotels.
See that the room is well-equipped with microphone systems. The sitting ----------------------
arrangements should also be looked after properly with the name plates
bearing the paper’s name on the table. The PRO has to decide whether ----------------------
some moment or gifts should be given or not. This cannot be decided ----------------------
by the PRO independently. He will have to do it in consultation with the
authorities. ----------------------

Notes A handout has to be prepared bearing the subject matter, a report of the
financial turnovers and liabilities of the company. Along with it, one
---------------------- writing pad and a pen and printed folder or booklet should also be provided.
These comprise a Press Gift. Beside a Press Conference Register has also
---------------------- to be kept. The PRO should see to it that when the journalists enter the
---------------------- Hall, they should be heartily welcomed.
ii) Preparing Content
----------------------
Whenever you can, prepare visual aids for a press conference or event.
----------------------
Charts and graphs help reporters understand facts, figures and
---------------------- comparisons more quickly. Pictures, props, slides and videotapes make
your presentation more interesting. And, of course, TV reporters will be
---------------------- delighted if your visual material can be televised; it makes their stories
more interesting to viewers. That helps them. And since your message
----------------------
will be more effective, it helps you, too. Make sure that your speakers
---------------------- are brief and to the point. The purpose of your press conference is for
reporters to question your speakers. A 20minute presentation is long for
---------------------- a press conference. Some publicists limit their speakers to five-minute
opening statements. You needn’t cover every detail; if things are not clear,
----------------------
reporters will ask you questions, which is anyway what you want.
---------------------- Since questions and answers are the essence of any press conference, your
---------------------- speaker should practice answering every possible question, fair and foul.
Your speaker should be able to make his/her central point in 10 to 20
---------------------- seconds. If he/she can do that, he/she has a better chance of getting his/her
---------------------- statement on the air uncut and unedited. It may well be all the time she is
allowed.
---------------------- Radio and TV reporters may ask for brief interviews after the conference
---------------------- presentation. Be prepared to schedule them on the spot and have an area
set aside to conduct them.
----------------------
iii) Anticipating Problems
---------------------- The last thing you want at a press conference is your competition or
opposition. If the conference is on private property, you can exclude them.
----------------------
If you expect a demonstration or heckling and harassment from your
---------------------- opposition, take steps in advance to quickly and quietly contain it.
---------------------- List all the things that could go wrong and figure out how you will cope
if they do. Murphy’s law changes when you make contingency plans: If
---------------------- it can go wrong, it will, unless you have spent a lot of time preparing for
---------------------- problems.
On D-Day
----------------------
“Always attend the events, conferences, and broadcast interviews that
---------------------- you have arranged,” says a well known Public Relations executive “You, the
publicist, are the host or hostess.
----------------------

You make journalists feel welcome when they are visiting your Notes
organisation, and you help people from your organisation feel at ease when they
visit the media. But most important of all, when you are on the scene with the ----------------------
media, you will get to meet journalists that can and should be the start of your
working relationship with them.” ----------------------
Do not invite many people from your organisation to your press conference. ----------------------
Since they will probably not know any of the journalists, they will tend to
----------------------
talk with each other. That behaviour is natural, but it gives the appearance of
aloofness. ----------------------
The people from your organisation or business who attend should greet
----------------------
journalists, make them comfortable and answer their questions.
With only a few people from your organisation on hand, there will be less ----------------------
of a tendency to talk among yourselves.
----------------------
As the reporters and editors arrive, give them each a press packet or kit
that includes the following: ----------------------
 A basic one-page release ----------------------

 A longer, three- or four-page version ----------------------
 A copy of the speaker’s statement
----------------------
 Background information on your business, organisation, product, industry,
or cause ----------------------
 A brief bio-data of the speaker ----------------------
 Copies of any relevant documents ----------------------
 Any other information that you think will help a reporter write a good
story ----------------------
 Small souvenir items ----------------------

 Product samples, if they can help journalists write stories ----------------------
 Where to find the in-depth information on your website, with URLs that
----------------------
take journalists to the exact information they seek, so that they do not
need to slog through your site, searching for it. Many photographers get ----------------------
no briefing about the story that they are covering.
----------------------
Take some time to fill them in, and offer them copies of the press release
or backgrounder sheet, but unless they ask for advice (which is not likely), do ----------------------
not try to tell them how to shoot their pictures.
----------------------
It is a courtesy, however, Tell them about the photo opportunities and the
timing. Do not wait for late comers. Start your press conference on time, even ----------------------
if there are only a few journalists present.
----------------------
If you are demonstrating a product, practice ahead of time so that
everything will go right. ----------------------
----------------------

Notes Another prominent Indian publicist suggests, “Run through your demo
quickly and stay within the allotted time.
----------------------
Make sure to get to the point very quickly. Senior reporters and editors are
---------------------- often hard pressed for time.
Record your press conference on audiotape or videotape, if possible,
----------------------
using quality equipment.
---------------------- The tape will help you write the news release to send to newspaper and
TV reporters who could not attend. It can also be edited into video and audio
----------------------
news releases to be sent directly to broadcasters.
---------------------- Moreover, you will have a record of the information and of your
---------------------- organisation’s positions on the issues for later use, perhaps with your board of
directors, shareholders, distributors, dealers, volunteers, members, or staff. You
---------------------- can easily make it available to them by archiving it on your website.
---------------------- One final arrangement is often overlooked, particularly by organisations

without full-time offices. Have someone on hand at the telephone number listed
---------------------- on your press conference or special event invitation, so that media people who
cannot attend can call for information and get an immediate response. Make
---------------------- sure that you have thoroughly briefed that person at the telephone.
---------------------- After the Press Conference
---------------------- What if nobody attends the Press Conference?
Even if no one arrives or only a few journalists arrive, if you act quickly
----------------------
and confidently, you may still drum up coverage.
---------------------- The journalists who did not come will want to hear from you. “They may
---------------------- have been busy with other assignments, and even if they did not come, they are
entitled to news,” says a well known PR practitioner. “If you decline to give
---------------------- them news, the next time you run a press conference, you can be sure those
people will not show.”
----------------------
Put your pride on the shelf, confidence in your voice, and your brain
---------------------- in high gear. And, do not refer to the number of people who attended your
press conference or event; that is not important. What matters is that you have
---------------------- newsworthy material.
---------------------- Your immediate step is to call the number listed on your invitation. Ask
your telephone monitor if there are any messages. (If there are, you will begin
---------------------- to feel better immediately.) Make a list of journalists who for information.
---------------------- Add the names of reporters who said they would not cover your conference
or event but asked for follow-up information. That’s your primary list. Next
----------------------
step is to write a one-page press release summarising the announcement made
---------------------- at your press conference or describing your special event.
This should be sent to the newspaper and TV reporters who did not attend.
----------------------
If you have any visual material you can reproduce easily for the TV stations.
----------------------

If you have recorded your press conference or media event on videotape Notes
and you have the facility, you could edit a video news release from your footage
and distribute it to television stations. ----------------------
You will have to work quickly to meet deadlines. This applies especially ----------------------
if you had some coverage and wish to expand it. Once the stations or papers that
did attend have run your story, others are less likely to; it’s already stale news. ----------------------
So, this is no time for writer’s block or introspection. You have to prepare ----------------------
all your material, make your calls, and deliver your stories by 3:00 P.M., at the
latest. After that, you’re entitled to a leisurely lunch. ----------------------
Checklist for press conference /reception ----------------------
i) Once the date is final, check it with the registers of journalists in your ----------------------
field.
ii) Make a guest list of journalists/photographers. ----------------------
iii) Work out the format for the event. ----------------------

iv) Book outside speakers, models, specialists as required. ----------------------
v) Design, print and distribute invitations.
----------------------
vi) Work out the program of events or timetable for the conference or
reception. ----------------------
vii) Book the venue and give a briefing to the banquet manager choosing ----------------------
menu, drinks etc.
----------------------
viii) Book outside caterers.
----------------------
ix) Brief in-house caterer.
x) Organise all products required for demonstrations or for samples. ----------------------
xi) Brief all speakers and start to work on speeches or presentations. ----------------------
xii) Brief display designers for static displays as banners, backdrop etc. ----------------------
xiii) Brief scriptwriters, photographers etc for audio-visual presentation.
----------------------
xiv) Book photographer to cover the event.
----------------------
xv) If necessary, arrange for extra telephone lines, electric points etc.
xvi) Book amplification system and any other electrical equipment what will ----------------------
be needed.
----------------------
xvii) Plan and make the press kit.
----------------------
The week before the event –
i) Have signs and name placards made. ----------------------
ii) Organise and carry out rehearsals. ----------------------

iii) Brief telephone and reception staff at your company HQ or at the agency ----------------------
so that they know where the event is taking place and how to contact staff,
if necessary. ----------------------

Notes iv) Follow up invitation to the guest list.
v) Make name badges for all those attending.
----------------------
vi) Double-check everything.
----------------------
On the day
---------------------- i) Build displays.
---------------------- ii) Run through presentations.
---------------------- iii) Final rehearsal of demonstration and live events.
iv) Check the room arrangements in reception, presentation and eating areas.
----------------------
v) Arrange speakers’ name cards on the speakers’ table, check water and
---------------------- glasses.
---------------------- vi) Check all audio-visual equipment, microphones, lapel mikes, lighting,
sound systems etc
----------------------
vii) Check that all accessories, scissors, tape, pens writing pads etc are in
---------------------- place for the event.
---------------------- viii) Brief the hotel staff on timing, drinks limitations and so on.
ix) Check the catering arrangements, availability of ash trays etc.
----------------------
The day after
----------------------
i) Send out press kits to all those who could not attend, with particular
---------------------- reference to those who asked for kits or who accepted the invitation but
and were unable to attend.
----------------------
ii) Follow up all requests for further information, photographs, features etc.
----------------------
----------------------

1. It is advised not to invite many people from own organisation to your
---------------------- press conference.
---------------------- 2. The success of a press conference depends upon the attendance of the
Press people.
----------------------
3. A good press conference is always in a question-and-answer format.
----------------------
Fill in the blanks.
---------------------- 1. As per _______, every aspect of a corporation’s CSR should be
---------------------- linked to corporate strategy by connecting it as lightly as possible to
the company’s unique capabilities and competitive context
----------------------
----------------------
----------------------

Notes
Activity 2
----------------------
1. Research the newspapers and TV business channels and find out about ----------------------
two Indian companies and two foreign companies that are prominent
in their CSR activities. Avoid the examples given in this unit. ----------------------
2. Attend any press conference in the press club of your town. Now ----------------------
observe closely all the operations during the conference and make a
report. ----------------------
----------------------
13.5 OTHER PR EVENTS
----------------------
What are the other PR events? Other than Press conference or reception, it
----------------------
could be Facility visits (to factory, attending inauguration in premises, going
on board ship/plane etc); Radio/TV – broadcasters may need many visits to file ----------------------
story; seminars, exhibitions or sponsored events.
----------------------
1. Seminars and Workshops
Organisations which are leaders in their field often possess information ----------------------
which could be of immense value to specialists in the media and, provided ----------------------
that it is not confidential in nature, there is much goodwill to be obtained
by passing it on. The process of ‘educating’ the media, if carried out ----------------------
in the right way, can be a profitable experience at all levels. A seminar
covering advanced technical processes aimed at senior editors can help ----------------------
you establish your company as the voice in this field. ----------------------
2. Advanced Seminars
----------------------
At this level, the seminar may have been conceived as a pooling of
information within the industry, with the representatives of different ----------------------
organisations such as universities, technical colleges and government
----------------------
departments present as well as researchers for leading manufacturers.
However, only the most informed of journalists can benefit from ----------------------
an invitation to such a meeting, as the level of discussion is bound to
demand the use of complicated scientific terms or technical jargon and the ----------------------
presentation may not be geared to explaining difficult points to those who
----------------------
are not well-versed in the subject.
However, the results and findings of such a meeting, together with ----------------------
simplified summaries of any papers or reports could form the basis of a
----------------------
useful advanced media seminar.
Subject and speakers ----------------------
The important consideration is that you have something important to say. ----------------------
It is even more important with this type of educative process than with
general press conferences and receptions to avoid offering yet another ----------------------
push to the company’s products. ----------------------

Notes It is important not to harp on the same old theme. As market trends shift
it is advisable to hone on important and critical areas.
----------------------
The speakers should be people who know their subjects in depth. It is no
---------------------- good choosing people because they are well-known, for they must be able
to answer detailed questions from knowledgeable members of the media.
----------------------
Advanced seminars are equally appropriate for educating all sections of
---------------------- media and for use by all types of organisation.
Workshops
----------------------
Many of the points covered under advanced seminar are also relevant to
---------------------- workshops. These too are likely to take up more time than the average
---------------------- press conference and include involvement on the part of the audience.
Exhibitions and Shows
----------------------
Setting up and organising an exhibition or show is huge. Exhibitions
---------------------- are usually used to launch and demonstrate new products and therefore
offer an opportunity of showing to the media new developments without
---------------------- having to visit various factories of the exhibitors.
---------------------- Sponsored Events
---------------------- Invitations to sponsored events are often a way of saying ‘thank you’ for
the support during the year. Though, in some cases, there is a definite
---------------------- link between the sponsored event and the sponsored products. Sponsored
events can also have a high degree of news value in their own right. e.g.
----------------------
Camlin sponsored a Painting Competition for Children or Idea sponsored
---------------------- Rock Idol Contest.
---------------------- Openings
The first consideration here is who should perform the opening ceremony.
---------------------- You may decide that the opening is not of great significance beyond your
---------------------- local area. In this case the MD or Chairperson may do the honours. On the
other hand you may want to emphasise the company’s local ties, in which
---------------------- case the mayor, any councilor or even a local celebrity may be invited.
---------------------- If, on the other and, the opening represents a great step forward in new
technology, a big rise in export orders or a timely increase in employment
---------------------- in the area, the story may have national appeal. And a national figure may
be invited.
----------------------
If this looks a possibility planning should start a long time in advance.
----------------------
Why Special Events?
---------------------- From time to time, it may be useful to invite journalists to your own
premises or to exhibitions or sporting events.
----------------------
The reasons for such visits may be many and varied.
----------------------
You may want to show off a new and different software; the company may
---------------------- be opening an ultra-modern showroom or a new city centre or presenting

a new product at a trade exhibition or you may simply want to show Notes
specialist writers what your operation involves.
----------------------
Whatever the event, it must be well thought about, carefully planned and
efficiently executed. The arrangements for the whole trip will be a part of ----------------------
the PR showcase for your organisation. It could be a sponsored event as
in a play or new machinery installation, historical exhibitions and unusual ----------------------
laboratory techniques might also form the basis of a special event or press
----------------------
visit.
a) Initiating the visit or event ----------------------
As usual, the first question to ask is whether or not there is a valid reason ----------------------
for inviting the media. Is there a newsworthy story? Will a visit provide a
really useful in-depth background material? Are there misunderstandings ----------------------
or misconceptions which this visit could clear up?
----------------------
Sometimes there are other internal reasons for staging a special event, but
it can also be used to get to know specialist writers better. For example, a ----------------------
factory opening will be important to local community relations but the city ----------------------
based trade press may also be interested. A sponsored event which is part
of a company’s promotional strategy could also be useful for entertaining ----------------------
influential specialists who might enjoy a day out.
----------------------
b) Planning
Detailed planning is essential for the success of any kind of visit or event. ----------------------
So the first job after ensuring that your potential guests are able to come ----------------------
is to work out a program of events and to brief everyone concerned. Here
are some points to watch which apply to most types of events, however ----------------------
large or small.
----------------------
c) Travel arrangements
----------------------
To some extent these will depend on how far your city is from local or
national media. ----------------------
It will also depend on the journalists’ own inclinations. The choice of ----------------------
transport could include coaches, trains or aeroplanes. Tickets and seats
can be booked in advance and sent to the guests. Make sure you have ----------------------
someone on that bus or train or at the airport to receive and welcome them
and take care of all their requirements and to keep them comfortable. ----------------------
d) Tour itineraries and guides ----------------------
If your guests are to tour the factory or premises do not just leave things to ----------------------
chance or to a spur-of-the-moment initiative. This certainly will not work
if the group is too large to go round in one batch. ----------------------
Work out the route in advance, taking into account the likely timings on ----------------------
important processes, tea and coffee breaks and the production schedule
----------------------
for the day. You should organise the tour so that the visitors have the most
interesting time possible. It usually makes sense to start at the beginning ----------------------

Notes of the production process, following the items through to completion, but
it is worth breaking out of the logical progression if there is something
---------------------- which can be seen at a particular time of the day.
---------------------- Check to see the interests of your guests and then talk to the factory
managers, briefing them as fully as possible and taking their advice. They
----------------------
will know their production lines far better than you do.
----------------------
One guide should not take care of more than six or seven people, if the
---------------------- factory is noisy, the number should be smaller. Once the itinerary has
been agreed write it down and time it. The written itinerary can be passed
----------------------
to anyone who may want to take over the tour at the last minute and the
---------------------- time will also help you to plan the rest of the day.
---------------------- You may want to organise a discussion group or arrange for individual
journalists to meet key members of staff.
----------------------
If you have a large party of journalists it is a good idea to brief the
---------------------- journalists on what to expect. A party made up of consumer journalists will
---------------------- pose different questions to those from the trade or industrial journalists,
who will be better informed about the technical processes involved.
----------------------
Make sure that all the guides appreciate the good points which can be
---------------------- conveyed about your operation, such as increasing labour force, recycling
waste material, quality control procedures and environmental awareness.
----------------------
e) Catering arrangements
----------------------
At special events and exhibitions, you will probably be limited to the
---------------------- caterer who has concession to the venue. However, thought has to be
---------------------- given to the choice of food and drink to be served.
If the event is in your premises, you can use your own canteen facilities
----------------------
or even order from a hotels or a restaurant.
---------------------- Checklist for a visit
---------------------- 1. Send out invites and check responses.
---------------------- 2. Brief factory GM and discuss itinerary and guides.

3. Book coach and send out details of travel arrangements and pick up point.
----------------------
Send timetable and maps if necessary to local journalists.
---------------------- 4. Brief development manager and arrange your lab.
---------------------- 5. Write the script for development presentation and sort out ppt or slides or
flip charts.
----------------------
6. Organise catering with canteen staff or outside caterers (or restaurant).
---------------------- 7. Brief MD and board members on the arrangements for lunch, provide
---------------------- guest list and book the board room.

8. Arrange for a member of staff to be on the coach and work out how to Notes
organise coffee on the coach.
----------------------
9. Inform reception to arrange for car parking, should there be a need.
10. Make sure that there is a large enough selection of overalls to fit various ----------------------
sizes and that there are safe cloakroom facilities
----------------------
11. Alert all staff to the visit on the factory and office notice boards.
----------------------
12. Check catering arrangements for the day – glasses, paper plates, napkins
etc. ----------------------
13. Rehearse the presentation with the presenter and check visual aids. ----------------------
14. Agree on special prices and discounts with the factory GM.
----------------------
15. Put together a press kit of background material, booklet samples etc
----------------------
16. Check TV and radio broadcasts for traffic delays, weather changes etc.,
which may affect the visit. ----------------------
17. Make sure that you are present when the coach arrives, stay with the ----------------------
guests until they leave and be ready to sort out any small snags which may
arise during the day. ----------------------
13.6 TECHNIQUES FOR TV AND RADIO ----------------------
----------------------
Techniques for television and radio have grown in significance. TV has
become a leader in the field of communication. Some people believe that this is ----------------------
so becasue print is declining and many publications had to be discontinued. But
this is debatable. ----------------------
It is important that you understand the medium and make full use of all ----------------------
opportunities.
----------------------
Like Press, TV people have a strong sense of editorial independence, but
give the growth in the number of channels, it is getting more complicated to use ----------------------
the medium to your advantage.
----------------------
With careful planning you can also maximise the coverage for your
sponsorships and generate soft news via magazine programs and chat shows ----------------------
thus generating more coverage for your company.
----------------------
Radio is also expanding and crying out for material to fill airtime.
----------------------
Both TV and radio coverage may be proactive, coming as a result of
the efforts of the PR or broadcasting unit, or reactive resulting from requests ----------------------
from journalists and researchers for interviews or material for news and feature
programs. ----------------------
----------------------
----------------------
----------------------

Notes 13.7 PREPARING PRESS CONFERENCE MATERIAL
---------------------- Lists and Contacts
---------------------- The media comprise literally thousands of publications and a number of

TV and Radio channels. Every time something newsworthy happens in your
---------------------- organisation you will need to consider which of these are likely to be interested
in the information. In most cases, the answer will be only a few.
----------------------
It is therefore useful to compile lists of those you need to contact regularly.
---------------------- This will save the chore of going through large media directories every time
you want to contact the media.
----------------------
Compiling media lists
----------------------
Uses for the media list
---------------------- The first step in compiling a media list is to define the uses to which it
will be put. Once this has been done, it is quite easy to list the relevant media
----------------------
for each type of activity. Such an exercise not only pinpoints the media which
---------------------- will be of interest to you but also helps in classifying the list in the most helpful
way.
----------------------
It is worth reiterating the point that media offers a means of influencing
---------------------- your target audiences. Depending on the particular objectives of the public
relations program, these audiences may include existing or potential customers,
----------------------
creditors, shareholders, schools or other educational bodies, employees,
---------------------- local residents, government and other authorities and opinion leaders in the
appropriate fields.
----------------------
In order to reach these groups, you will have to study the media in some
---------------------- detail. The audience and readership profiles of the different media will help to
select media.
----------------------
The media cannot operate without inputs and you will need to provide
---------------------- them with something of interest to them. It may not be ‘hard news’ that would
be of interest to the news desk but it must have something to interest a specific
----------------------
readership. In fact, almost everything that happens in your organisation could
---------------------- be of interest to the right publication.
---------------------- All the following activities will give rise to a need to communicate with
the media. Hence, the need for a carefully selected list of those who would be
---------------------- interested in your news.
----------------------  Launch of a new product or service

 Initiation of new factories or offices
----------------------
 Financial results
----------------------
 Sponsored events, awards and charitable activities
----------------------  Launch of promotional campaigns
----------------------  Disasters, strikes and closures

 Awards and accolades for the company Notes
 Visits of dignitaries or celebrities or press facility visits
----------------------
 Important orders and exports
----------------------
 Scientific or technical advances
 Appointments at all levels ----------------------
 Publication of survey or market research material ----------------------

 Small changes in prices, products and services ----------------------
 Involvement in local activities
----------------------
 Annual General Meeting (AGM)
----------------------
Each of these activities offers a newsworthy vehicle for furthering your
objectives vis-à-vis your various target audiences. ----------------------
How to find the information? ----------------------
There are a number of reference woks, both printed and electronic,
which can be used to study the media. They vary in the type and quantity of ----------------------
the information. You may need to use two or three different sources to make an ----------------------
accurate analysis of the media, which will be valuable to your organisation.
----------------------
Names and positions are as important as addresses and telephone
numbers and some directories do not give more than editors’ and advertisement ----------------------
managers’ names. Others give a complete breakdown of specialist editors and
correspondents. Some are updated yearly and some in two or three years. ----------------------
The more frequently the database is updated, the more accurate it will be. ----------------------
Of course it would be easier for you to maintain your own database, which you
can update on a regular basis. ----------------------
The choice ----------------------
To make up the media list, consider the following categories and make ----------------------
your selection in the light of the analysis made of the uses to which the list will
be put. ----------------------
 Television ----------------------
 Cable and satellite television
----------------------
 Print: dailies, magazines, trade journals
----------------------
 Radio
 Press agencies and wire services (like PTI, UNI, Reuters etc.) ----------------------
What to include in your list? ----------------------
Any mailing list must include the name of the TV or radio station or ----------------------
publication, the address. But this is not enough. A news release going to Aaj
Tak, New Delhi may or may not possibly find its way to the right person who ----------------------
will be interested in the information.
----------------------

Notes The mailing list must include the position of the relevant editor or
correspondent such as Business Editor or Industrial Correspondent.
----------------------
It should also include the person’s name. This makes it really difficult to
---------------------- keep the list up-to date and experience shows that it is far easier and successful
to have a personal approach rather than ‘To the Legal Correspondent.’ This
---------------------- personalised method ensures that the material will reach the right person.
---------------------- It is essential to have the phone numbers, the fax numbers and the e-mail
id of the contacts. This will save time in looking up numbers when they are
---------------------- needed as part of the ongoing media relations program.
---------------------- How to organise the list?
---------------------- Once you have been through the various categories and picked out all the
names to be included, the next step is to arrange them in some sort of order. The
---------------------- names can be arranged in alphabetical order of the publications.
---------------------- It will be a highly specialised list and some care would be needed to find
out exactly which publications are likely to cover the subject and who on these
---------------------- publications will be the most useful contact. For instances if it is financial news
it should be sent to the Business Editor of Correspondent for the news to be
---------------------- received in the right spirit.
---------------------- Checklist for compiling media list
----------------------  Define target audience against agreed objectives and list the type of media
that reach these audiences.
----------------------
 List the newsworthy activities which are likely to occur with reasonable
---------------------- frequency and key interested media in the above list, to give an integrated
list of possible types of outlet.
----------------------
 Invest in one or two media guides such as the IENS or ABC publications
---------------------- for compilation and reference purposes.
----------------------  Check through all possible categories of TV, radio and the press and
make a classified list of editors, sub editors, assistant editors, producers,
---------------------- correspondents and reporters who are likely to be interested in the material
that you plan to send out.
----------------------
 Ensure that the list includes names, addresses, telephone numbers, mobile
---------------------- numbers, fax numbers, e-mail ids and lead times.
---------------------- In-house lists
Taking from directories alone is not enough. Changes in media
----------------------
professionals are fairly frequent and nothing gives a worse impression of the
---------------------- PR executive than the continual receipt of material with the predecessor’s name
on it. Constant updating of all media contacts should be of utmost priority.
---------------------- An electronic media database is easier to handle. Keeping a backup is very
important.
----------------------
----------------------

Personal Contacts Notes
A great deal of emphasis tends to be put on personal contacts. Knowing
----------------------
a journalist well does not mean that he or she will definitely oblige you all the
time. If your material is newsworthy and you ensure that the material lands on ----------------------
the right person’s desk at the right time, chances are that it will be published.
----------------------
Personal contacts will push through more of your stories than that of other
PR professionals, plus you will be able to ask for a favourable comment at times. ----------------------
It is true that a good working relationship will help you achieve maximum news
coverage but most journalists judge the material on its merits, whatever the ----------------------
source.
----------------------
If you need to work particularly closely with specialists or local media it
get to know the organisations and their needs. Meet editors and journalists to ----------------------
see how you can best help each other. These could be of benefit to both sides.
----------------------
13.8 AREAS OF PR WORK ----------------------
Reputation - Protection and Enhancement ----------------------

Image building and image maintenance lie at the core of Public Relations ----------------------
activity. Everyone has an image, an individual or an organisation, the question
is – Is it good or bad for you? ----------------------
Reputation is not built overnight, they are the sum of cumulative actions ----------------------
over a period of time. It takes years of doing the right actions to build a good
reputation. It takes one bad action to ruin it forever. ----------------------
If you do the right thing you have to make sure people hear of it. ----------------------
It is the PR practitioner’s task to protect and enhance the organisation’s ----------------------
reputation continuously. It is a difficult task as it is people’s actions that build or
destroy reputations and in a large organisation, spreading across different cities ----------------------
and even countries it is next to impossible to make sure that everyone is doing
the right thing all the time. ----------------------
Corporate Identity Programs ----------------------

These are the visual cues that your organisation sends out. People see ----------------------
these visual cues and use them to form an opinion of your organisation.
----------------------
The company’s logo says something about what kind of company it is,
for example when you see the TATA logo, a rush of associations come to your ----------------------
mind. Like old, conservative, prosperous, honest, trustworthy, quality, patriotic,
wealthy... ----------------------
The buildings that your organisation operates from send out similar ----------------------
signals. If your building is located in a posh business area and is constructed of
granite and glass it sends out signals of prosperity and competence. ----------------------
If your office stationery is on expensive bond paper it sends similar ----------------------
signals.
----------------------

Notes If the brochures and the signage’s are of the same standard then there is a
reinforced impact.
---------------------- If the people in your office are well dressed it supports the other signals
---------------------- being sent out.
The corporate identity of an organisation is the sum of all the visual cues
---------------------- that an organisation sends out and it is the responsibility of the PR practitioner
to see that they are contributing to the overall image in a harmonious manner.
----------------------
Marketing Communications – Product Publicity
----------------------
All communication mediums have a role to play in taking the organisations’
---------------------- business goals forward.
---------------------- Marketing communication often falls under the Public Relations

responsibility. Marketing communication directly relates to the marketing
---------------------- goals of the company. The function of marketing is the development of an ever
increasing customer base that is satisfied with the goods or services provided
---------------------- to them in exchange of a fair price. Sustained customer satisfaction drives
---------------------- companies who are adept in marketing. The pool of satisfied customers in turn
attracts potential customers and the cycle goes on.
---------------------- All the marketing in the world will not attract repeat customers, unless the
---------------------- product or service is of a good quality and they fully understand its value.
Marketing communication deals with product and service publicity and
----------------------
ensures that customers and potential customers are informed of the benefits and
---------------------- value being provided.
Community Relations – Volunteer Work, Charities etc.
----------------------
As a corporation relies heavily on local government for construction
---------------------- permits, changes in zoning laws, and even tax concessions, it is important that
there is a good working relationship among the corporation and the various
----------------------
community groups. Community Relations practitioners spend a lot of time
---------------------- interpreting the organisation to the community.
---------------------- A number of activities at the community level that are practised are:
 Presenting information to various government advisory groups
----------------------
 Screening applicants for corporate contributions
----------------------
 Volunteering corporate facilities for meetings and production of materials
----------------------  Providing summer jobs for youths
----------------------  Cleaning up the neighbourhood
----------------------  Participating in environment protection drives

Special Events Management–sports shows, political rallies…
----------------------
This is a relatively new role for Public Relations practitioners. As
---------------------- corporate houses try and develop mutually beneficial relationships with their
---------------------- publics, they are participating in activities ranging from sponsoring a rock show
to supporting local youth for mountaineering expeditions.
Outside of corporate houses, political parties are also availing the Notes
organising and publicity skills of PR practitioners in their political activities.
These largely focus on the image building of individuals, party members, to ----------------------
promote the party as a whole. ----------------------
Public Affairs – Government Relations
----------------------
Since the time of the ancient Egyptians 5000 years ago, governments
have always engaged in what is known as public information, public relations ----------------------
and public affairs. ----------------------
The objective of government information efforts are aimed at:
----------------------
 Communicating the work of the government agencies
----------------------
 Improving the agency operations through appropriate public information
techniques. In other words, explain agency programs so that citizens ----------------------
understand and can take actions necessary to benefit them.
----------------------
 Educating administrators and bureaucrats about the role of the mass
media and how to work with media representatives. ----------------------
Employee Relations ----------------------
There is often a very thin line that divides the responsibilities between ----------------------
Public Relations and human resource management. In the top ranking
companies, management and staff utilise the strength and weaknesses of each ----------------------
other and work together to achieve the highest productivity.
----------------------
Unfortunately, more often than not you will find yourself in situations
were both are working at cross-purposes rather than together. ----------------------
The Rationale for Employee Relations ----------------------
Every company exists but on paper and in truth it is only a company ----------------------
because of the people who work in it.
----------------------
It is very correctly said that Corporate success depends on a workforce that:
----------------------
 respects its management
 has pride in its products ----------------------
 believes that it is being treated fairly ----------------------

a) Critical Audience for PR /Corporate Communication Department ----------------------
Let us assume that the happier and better informed the employees in the ----------------------
company are, the better are the chances of them being productive.
----------------------
Employee relations become a critical audience as it can directly impact
the profitability of the company. PR practitioners also describe the employees ----------------------
as an ‘Internal Audience.’
----------------------
----------------------

Notes Titles:
There are various titles and terminologies used to define the PR practitioner
----------------------
within the company. The title ‘Director of Corporate Communications’ used
---------------------- by some companies is broader than ‘Director of Public Relations’, implying
responsibility for internal as well as external communications.
----------------------
b) Employee Communication Responsibilities
----------------------
Let us look now at some areas of responsibility that is handled by the in-house
---------------------- PR practitioner:
 Developing company magazines, brochures
----------------------
 Policy manuals
----------------------
 Video presentations
----------------------  Content for Intranet…etc.
---------------------- c) Employee Communication Subjects
---------------------- There are certain subjects that employees are concerned about more than
others and therefore the employee communication program needs to focus on
---------------------- them.
---------------------- Information about working conditions
---------------------- i) How safe is the working environment?

ii) Has the management taken adequate safety measures to ensure our health
---------------------- and safety while we are at work?
---------------------- iii) What are the compensation/remuneration packages and how do we
qualify for them?
----------------------
iv) What are the growth possibilities and how can I increase the chances of
---------------------- promotion?
---------------------- Such questions need to be answered in the employee communication program.
Retirement Benefits:
----------------------
i) What is the age for retirement?
----------------------
ii) What are the company policies regarding medical facilities, housing
---------------------- loans…etc?
---------------------- New company products:
i) Is the current product range being supplemented?
----------------------
ii) Are there any new products under development?
----------------------
iii) Are any products going to be removed from the existing product line up?
---------------------- Changes in management and supervisory levels:
---------------------- i) Are there any new people joining the organisation?
---------------------- ii) What are their portfolios?

iii) Are any people leaving the organisation? Notes
iv) Why are they leaving?
----------------------
Corporate plans for expansions or alterations in operating procedures:
----------------------
i) Is the company planning to enter any new areas of business?
ii) Is the company planning to upgrade or shut down any business facilities? ----------------------
iii) Is the company planning a merger or acquisition? ----------------------

Successful Employee Relations depends on keeping all the employees well ----------------------
informed on all activities that could impact their professional careers.
----------------------
If you do not give your employees the information they are seeking, some
one else will or they will form their own opinion of what is fact or fiction. ----------------------
Communication with employees involves other sensitive issues too.
----------------------
When does a company right to maintain strong, safe production levels intrude
upon the individual rights of an employee? ----------------------
Let us take the example of the Bhopal Gas tragedy. Was it not necessary for ----------------------
the management of Union Carbide to inform the employees about the unsafe
working conditions and educate them about safety measures as well? ----------------------
What about child labour or about minimum daily wages? There are a number of ----------------------
companies which deliberately leave gray areas in their employee communication
so that they can profit from their employees’ ignorance. Decisions such ----------------------
as these on what should be shared with employees and what should not are ----------------------
top management responsibilities. The manner in which the issues need to be
communicated to employees heavily influences how the workforce accepts ----------------------
them.
----------------------
1. Seminars, exhibitions and sponsored events are also type of Public ----------------------
Relations.
----------------------
2. TV journalist and other people have a strong sense of editorial
independence. ----------------------
1. The corporate identity of an organisation is the sum of all the ______
----------------------
cues that an organisation sends out.
2. There is a very thin line that divides the _________ between Public ----------------------
Relations and human resource management.
----------------------
----------------------
----------------------

Notes
Activity 3
----------------------
1. Attend a local seminar or exhibition. Did you notice any PR activities
----------------------
being conducted by the organisers? List down such activities.
---------------------- 2. If you meet any journalist there, talk to him and get feedback about the
---------------------- event from his point of view.
3. Search the newspapers to spot a write up in the newspapers, check
---------------------- how the event has been covered.
----------------------
---------------------- Summary
----------------------  A well executed Public relations campaign is one of the best ways for
your company to gain exposure and improve your company’s public
---------------------- image. A public relations program can build the employees’ confidence in
---------------------- your company and its products. Good public relations can increase your
sales, help you build your brand value and lower your advertising costs.
----------------------  PR includes a 6-point planning model.
----------------------  Corporate Social Responsibility is an important issue affecting the
business world today. It is not merely about ‘doing good’ or even
----------------------
being seen to be doing good, but it is about recognising a company’s
---------------------- responsibility to its stakeholders and acting on their best interests.
Corporate social responsibility is not just about bringing benefits to all
---------------------- the stakeholders, including customers, employees and the community at
large. Investors today are demanding to know where and how the company
----------------------
is spending money and the exact impact the philanthropic activities have
---------------------- on communities.
 Therefore, companies are now using their respective core competencies
----------------------
to deliver value through their social projects.
----------------------
 From time to time, you need to inform journalists about significant events
---------------------- or changes within your organisation. The most common practice to get
the media to visit you is to hold a press conference. There is a procedure
---------------------- to be followed before, during and follow-up activity after the press
conference. Apart from press conferences, there can be other PR events
----------------------
such as openings, seminars, exhibitions etc.
----------------------  Techniques for television and radio have grown in significance. They
---------------------- need special treatment.
 The use of a mailing list is important and it must be used in the right way
---------------------- for effective results.
----------------------
----------------------

Keywords Notes
----------------------
●● Media: channel for the communication of information including
newspapers, magazines, radio, TV, mobile phones and the internet. ----------------------
●● News Conference: the live dissemination of news information by
----------------------
an organisation to invited media. The format is usually a presentation
of information by the organisation followed by a question and answer ----------------------
session.
----------------------
●● Pitch: when PR consultancies are invited by a prospective client to
propose how they would tackle a given brief. ----------------------
●● Podcast: Technically, a podcast is a media file that is distributed by ----------------------
subscription (paid or unpaid) over the Internet using syndication feeds,
for playback on mobile devices and personal computers. Like ‘radio’, it ----------------------
can mean both the content and the method of syndication. The latter may
also be termed podcasting. ----------------------
●● Prcampaign Plan: All forms of planned communications, outwards ----------------------

and inwards, between an organisation and its publics for the purpose of
achieving specific objectives, concerning mutual understanding. ----------------------
●● Press Pack/Kit: a branded pack handed out to the media by an organisation. ----------------------
It normally contains background material, photographs, illustrations and
news releases. ----------------------
●● Press Release: see News Release. ----------------------

●● Proposal: document outlining a proposed PR campaign to an existing or ----------------------
potential client.
----------------------
●● PRO: Public Relations Officer
●● Corporate Social Responsibility: Corporate Social Responsibility is ----------------------
an important issue affecting the business world today. It is not merely ----------------------
about ‘doing good’ or even being seen to be doing good, but it is about
recognizing a company’s responsibility to its stakeholders and acting on ----------------------
their best interests.
----------------------
Self-Assessment Questions ----------------------
1. How do you make a PR plan for a client who is going to introduce a new ----------------------
floor cleaner in the market? What steps would you take?
----------------------
2. Write about two examples of corporations that indulge in Corporate
Social Responsibility activities. ----------------------
3. How would you go about planning a Press Conference for a FMCG ----------------------
company that is going to announce the appointment of a new CEO?
----------------------
4. What measures would you take to generate a good database of journalists?
Who you could start a rapport with for your PR activities? ----------------------

Notes 5. List down areas where PR can be used effectively.
6. Outline five objectives that may be the starting point for a PR campaign.
----------------------
7. Write down the different items that a Press Kit should have.
----------------------

----------------------
1. False
----------------------
2. True
---------------------- 3. True
---------------------- 1. As per Kramer, every aspect of a corporation’s CSR should be linked to
corporate strategy by connecting it as lightly as possible to the company’s
---------------------- unique capabilities and competitive context.

1. True
----------------------
2. True
----------------------
Fill in the blanks.
---------------------- 1. The corporate identity of an organisation is the sum of all the visual cues
that an organisation sends out.
----------------------
2. There is a very thin line that divides the responsibilities between Public
---------------------- Relations and human resource management.
----------------------
Suggested Reading
----------------------
----------------------
2. Wilcox, Dennis L. Essentials of Public Relations.
----------------------
3. Cutlip, Scott M. Effective Public Relations
---------------------- 4. Jefkins, Frank. Planned Press and Public Relations.
---------------------- 5. Reily, Robert. Public Relations in Action.
---------------------- 6. Black, Sam. Sharpe, Melvin. Practical Public Relations
----------------------
----------------------
----------------------

Case Studies
UNIT
14
Structure:
14.1 Introduction
14.2 Case Study 1: Du Pont Corporation and the Issue of Sexual Harassment
14.3 Case Study 2: Cadbury Dairy Milk - Celebrating 100 Years of Happiness
14.4 Case Study 3: American Idol
14.5 Case Study 4: AIDS at Work
14.6 Case Study 5: Bad PR – Corporate Coldness
Summary
Keywords
Suggested Reading
Case Studies 387

Notes
Objectives
----------------------
----------------------
• Analyse Case Studies.
----------------------
• Streamline your abilities in dealing creatively with complex or
---------------------- ambiguous problems.
• Structure your thinking to reach sensible conclusions with the
----------------------
available facts which are critical to your success, in a short time.
---------------------- • Derive some learning from the case studies.
---------------------- • Apply learning acquired to live work situations later in career.
----------------------
14.1 INTRODUCTION
----------------------
This unit includes case studies for analysis. What are case studies? How
----------------------
are they useful in the process of learning for a student?
---------------------- A case study is a research strategy, sometimes likened to an experiment,
---------------------- a history, or a simulation, though not linked to any particular type of evidence
or method of data collection. It is qualitative research.
----------------------
Rather than using large samples and following a rigid protocol to
---------------------- examine a limited number of variables, case study methods involve an in-depth,
longitudinal examination of a single instance or event, a case. They provide
----------------------
a systematic way of looking at events, collecting data, analysing information
---------------------- and reporting the results. As a result, the researcher may gain a sharpened
understanding of why the instance happened as it did, and what might become
----------------------
important to look at more extensively in future research.
---------------------- Case studies lend themselves to both generating and testing hypotheses.
---------------------- The scope and relevance of case studies
---------------------- Rogers, in Business Analysis for Marketing Managers (1978),
distinguishes case studies from case histories and projects. He describes a case
---------------------- history as an event or a series of events set in an organisational framework with
---------------------- or without a related environment. The events are described in some detail with
the main and subsidiary points highlighted. Actions taken by the subjects in the
---------------------- case are described; reactions, responses and effects on other subjects are related
---------------------- and events taken to a conclusion or to a point that is irreversible.
He defined the case study as also describing events in a framework within
----------------------
an environment. The problems are not always highlighted or even made clear;
---------------------- they emerge as the case material is subjected to analysis.
----------------------

A conclusion is not necessarily stated nor is the situation reached in the Notes
case irreversible. It is usually possible to ‘take over’ operations at a suitable
point in the role of an external adviser or from a position in the case. Most ----------------------
business cases fall into this category. ----------------------
The case project is a series of diverse continuous events, set in an
----------------------
organisational framework and normally in a well-defined environment. Those
studying the case are led to a specific point in time and circumstance where ----------------------
they become a ‘participant’ in the case. They may be asked to assume the role
----------------------
of a person in the case, appointed to a particular vacancy, or to advise from the
position of an external consultant. ----------------------
The role is made explicit and it is from that viewpoint that analysis, views, ----------------------
arguments and recommendations must be made; there is thus a behavioural
aspect introduced. ----------------------
What does a case study do? ----------------------
The case study offers a method of learning about a complex instance ----------------------
through extensive description and contextual analysis. The product articulates
----------------------
why the instance occurred as it did, and what one might usefully explore in
similar situations. ----------------------
Case studies can generate a great deal of data that may defy straightforward ----------------------
analysis.
----------------------
Why case study?
----------------------
Case studies are an increasingly popular form of teaching and have an
important role in developing skills and knowledge in students. ----------------------
Using case study teaching is useful, because of the wealth of practical, ----------------------
real life examples that can be used to contextualise the theoretical concepts.
----------------------
Educational research has shown case studies to be useful pedagogical tools. The
importance of using case studies is that it exposes students to real-world issues ----------------------
with which they may be faced.
----------------------
Case studies –
----------------------
 Allow the application of theoretical concepts to be demonstrated, thus
bridging the gap between theory and practice. ----------------------
 Encourage active learning. ----------------------
 Provide an opportunity for the development of key skills such as ----------------------

communication, group working and problem solving.
----------------------
 Increase the students’ enjoyment of the topic and hence their desire to
----------------------
learn.
----------------------
Case Studies 389

Notes Most courses today already have some case study teaching in them and
we have introduced a greater extent of case-based approach in this course for
---------------------- the above reasons. We have found the use of case studies to be very beneficial.
----------------------
14.2 CASE STUDY 1: DU PONT CORPORATION AND THE
---------------------- ISSUE OF SEXUAL HARASSMENT
----------------------
----------------------
----------------------
----------------------
----------------------
In modern working environment, men and women work in close proximity.
---------------------- There is the possibility of an attraction between them.
Sometimes, people abuse the working relationship and attempt to take
----------------------
advantage of the situation.
---------------------- Unfortunately, statistics prove that more often it is the female employees
---------------------- who get harassed by their male counterparts.
To protect the female employees from encountering any such situation,
---------------------- Du Pont Corporation took some proactive steps.
---------------------- Du Pont meets this problem by:
----------------------  Holding a travel safety seminar for female employees
Female employees often have to travel outstation on duty. Sometimes, they
----------------------
have to travel stay alone for prolonged periods of time. Work could take
---------------------- them overseas, to countries where their dress and mannerisms may attract
unfavourable attention.
----------------------
To overcome this problem, Du Pont holds a travel safety seminar, advising
---------------------- female employees on all the necessary precautions to take to prevent any
untoward event.
----------------------
 A personal safety program which includes a rape prevention workshop
---------------------- In the event of a female employee encountering an unavoidable situation
---------------------- where she might be in danger of abuse, she is trained on how to react to
marginalise the danger to herself.
----------------------
 A manager’s workshop to define their role in helping employees who
---------------------- have been assaulted
Female employees who have suffered unavoidable abuse need special
----------------------
attention and consideration to overcome their trauma.
---------------------- Managers are specially trained to help in these situations.
----------------------  Legal Assistance

Legal fees in contesting a rape trial can be prohibitive. The prolonged Notes
nature of these trials can financially cripple the already traumatised victim.
Du Pont helps its employees in seeking the most appropriate legal counsel ----------------------
and advises them on how to handle related legal issues.
----------------------
 Liability Coverage
----------------------
In certain circumstances, there might be related expenses like loss to
property or inability to go to work because of a medical condition. In these ----------------------
circumstances, the liability coverage provided by Du Pont takes care of
this. ----------------------
 Public Relations Assistance in handling rape trial publicity ----------------------
Rape trials by their very nature attract extensive and intensive media ----------------------
coverage. Handling hordes of journalists, fielding difficult questions with
appropriate answers while all the time maintaining your cool is a difficult ----------------------
if not impossible task.
----------------------
Preventing a dramatisation of your case is another precaution that needs to
be taken. ----------------------
Du Pont provides expert counsel to its employees in such circumstances. ----------------------

The company promotes the program in internal publications, on the ----------------------
company news hotline and in monthly safety meetings to encourage
----------------------
employee participation.
----------------------
14.3 CASE STUDY 2: CADBURY DAIRY MILK -
CELEBRATING 100 YEARS OF HAPPINESS ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Case Studies 391

Notes Introduction
Cadbury Dairy Milk Megabrand is the market leader in moulded chocolate
----------------------
in the UK. Focus PR is one of four roster PR agencies for Cadbury Trebor
---------------------- Bassett and was appointed in 2004 as the lead PR agency for the 2005 Cadbury
Dairy Milk centenary campaign, following a series of previous PR campaigns
----------------------
for the brand.
---------------------- Objectives
----------------------  To create a high-impact, emotionally-engaging consumer PR program to
support the integrated above- and below-the-line marketing campaign
----------------------
 To share Cadbury Dairy Milk’s Centenary with the nation
----------------------  To position Cadbury Dairy Milk as the No.1 chocolate brand for the next
---------------------- 100 years, inspired by the last 100 years
 To support the underlying masterbrand message of Cadbury = Happiness
----------------------
 To be a major contributor to value growth.
----------------------
Results
----------------------
The campaign comprised a number of different elements: launch activities
---------------------- in January to ‘kick off’ the centenary year; Happy 100 Club - celebrating
CDM’s birthday with the nation’s centenarians; Edible Poster Tour of ten UK
----------------------
city centres to support an on-pack promotion; Valentine’s Day radio editorial
---------------------- competitions and press features; Happiness Factory and Happiness Factory
Bus Tour - a media editorial campaign to support an on-pack promotion to
----------------------
turn dreams into reality. Focus PR was also challenged to create a campaign to
---------------------- support key Out of Home customer, The Tussauds Group.
---------------------- A poll was devised to find the nation’s favourite personality, who would
then be made into the first-ever chocolate statue to be created jointly by Madame
----------------------
Tussauds and the chocolatiers at Cadbury. A photocall was held at Madame
---------------------- Tussauds to launch the poll and unveil the world’s largest Cadbury Dairy Milk
bar.
----------------------
Celebrities secured by Focus PR for the Top Ten poll included: David
---------------------- Beckham, Sir Elton John, Jonathan Ross, Paula Radcliffe, Ricky Gervais,
---------------------- Sharon Osbourne and Will Young. The winner was Sir Elton John and David
Furnish unveiled the chocolate figure of Sir Elton John at a photocall at Madame
---------------------- Tussauds, London, on Tuesday 14 June 2004.
---------------------- From December 2004 – December 2005, the project generated over 1.2
---------------------- billion opportunities to see/hear in the UK and international media across 409
pieces of coverage.
----------------------
Coverage highlights include The Sun, The Daily Mail, The Mirror, Metro,
----------------------

GMTV, Hello, OK! and numerous local and national radio stations. (By feeding Notes
the international ‘machine’, coverage has also appeared in the US, Canada,
Australia, South Africa and India). ----------------------
Verdict ----------------------
‘’The success of the campaign is a true testament to excellent teamwork. We ----------------------
consider the campaign to be a blue print of how we can generate real value
from our partnerships.’’ Clare Lloyd, Sponsorship & Events Manager, Cadbury ----------------------
Trebor Bassett observed. ----------------------
14.4 CASE STUDY 3: AMERICAN IDOL ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
Since its debut in the summer of 2002, FOX’s American Idol has been
nothing short of a cultural phenomenon, a perpetual ratings leader and a ----------------------
consistent sensation. The show made stars out of such anonymous performers ----------------------
as Kelly Clarkson, Ruben Studdard, Clay Aiken and William Hung, and the
series is slated to be on television at least through 2011. Millions of fans bow ----------------------
down to the American idols on American Idol.
----------------------
Issues
----------------------
In March 2002, B|W|R pitched a new Fox series based on the wildly
popular UK reality show “Pop Idol.” Our creativity was not only baked into our ----------------------
proposal but also its delivery—sending it in a pizza box via singing telegram
(a rousing parody of “One” from A Chorus Line). What could have wound up ----------------------
another quickly forgotten summer series instead became a triumphant home
----------------------
run, gaining media recognition as a bonafide cultural phenomenon.
----------------------
----------------------
Case Studies 393

Notes Challenge
Three main challenges confronted B|W|R: living up to the huge success
----------------------
of the UK original and the expectations of the client, giving substance to a
---------------------- summer television show (usually a disposable commodity) and, as early media
outreach quickly revealed, overcoming the perception of “American Idol” as
---------------------- “another reality TV show.”
---------------------- Insight
While “Star Search” and its ilk gave judges all the power, “American Idol”
---------------------- offered the viewing public a first: the chance to “elect” the next big pop music
---------------------- star themselves through telephone and online voting. This helped distinguish
“AI” from the reality TV pack.
---------------------- Strategy
---------------------- The PR agency chose to create a purposeful gradual build of media
exposure to introduce the show, as to not over saturate the market prematurely.
---------------------- The notion was to capitalise on word of mouth, partnered with select television
breaks and key print features. This strategy was chosen because the “stars” of
---------------------- the show (the top 10 contestants) would not be seen biweekly until Week Five
of the series. Initially they sought to create stars (or at least personalities with
---------------------- whom viewers could connect) out of the judges: Paula Abdul, Randy Jackson
and especially the acerbic Brit Simon Cowell.
----------------------
Campaign
----------------------
In anticipation of the “cattle-call” auditions in Los Angeles, New York, Chicago,
---------------------- Atlanta, Miami, Dallas and Seattle, B|W|R:
 Secured a TV Guide reporter to attend auditions as a possible contestant
---------------------- for a feature story to run in conjunction with the show’s launch
----------------------  Posted fliers in local karaoke bars in each city
 Set up contests with local Fox affiliates to attract people to the auditions
----------------------
 Contacted local media outlets in each market to publicise the actual
---------------------- auditions
 Contacted local high schools, colleges, acting schools, musical theatre
----------------------
programs, comedy clubs etc., to invite people to open auditions
----------------------  Contacted media to cover auditions to help promote auditions in other
cities, as well as to promote the premiere of the show
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

For the show’s launch and support campaign, B|W|R: Notes
 Enticed the media to review tapes of the UK version
----------------------
 Introduced media and readers/viewers to the cast (judges and hosts)
----------------------
 Brought back the star appeal of Paula Abdul
 Merchandised initial assessments of the show (e.g., USA Today, Newsweek) ----------------------
as a genuine litmus of pop culture in order to build interest by other media
----------------------
 Secured opportunities associating the show with American culture, such
as getting all ten finalists invited to sing the National Anthem at Dodger ----------------------
Stadium in a tie-in with Major League Baseba
----------------------
 Began to limit access to the top ten contestants as the dynamic shifted
during the final four weeks of airing, in order to create a media frenzy for ----------------------
any little titbit of information
----------------------
Outcome
----------------------
After premiering modestly in June with 10 million viewers, “American
Idol” consistently won its time period among its key demographic until drawing ----------------------
a peak 28 million during its two-hour finale on September 4, 2002 when Kelly
Clarkson was crowned the winner. ----------------------
Throughout the series, media hits escalated, garnering front-page coverage ----------------------
in hundreds of national and major market papers including USA Today as well as
the cover of entertainment magazines such as US Weekly (three times), People ----------------------
(twice), Entertainment Weekly, Billboard, Broadcasting & Cable, TV Guide and ----------------------
Seventeen.
----------------------
The show not only became the No. 1 new summer series on television and
“water-cooler” talk in every office and dorm room, its reach also spilled over ----------------------
into unexpected media: Political shows such as “The O’Reilly Factor” debated
its import. ----------------------
On ESPN, its images teamed with those of sports icons. Business ----------------------
stories tracked products–books, videogames, DVDs–spawned by the show. Its
----------------------
popularity inspired spoofs on “Saturday Night Live” as well as a rash of TV
imitators, including a revival of “Star Search.” ----------------------
The show’s creator, Simon Fuller, could have said, “I’m satisfied with ----------------------
Pop Idol,” and just called it a day. Instead, he spun that show off into American
Idol—and also created Indian Idol, Indonesian Idol, Malaysian Idol, Latin ----------------------
American Idol—and many, many more. More than 100 versions of Idol exist
----------------------
around the world.
Meanwhile, host Simon Cowell started his own production company, ----------------------
creating a series that are arguably similar in vein to American Idol, like ABC’s ----------------------
American Inventor and the upcoming NBC summer series, America’s Got
Talent. Ryan Seacrest is constantly reinventing himself as a host. Paula Abdul ----------------------
has recovered some of the popularity she once had as a pop star. In fact, many of ----------------------
Case Studies 395

Notes the people behind American Idol are constantly dreaming new ways to expand
their empires. Partnering with Sony, American Idol has albums that showcase
---------------------- its contestants talent, and they have a summer concert tour.
---------------------- Indian Idol is a popular television show on Indian television, a singing
talent contest to determine the best undiscovered young singer in the country. It
----------------------
is based on the international Idol series format, launched by UK show Pop Idol.
----------------------
The program airs two back-to-back prime-time shows a week: the first
---------------------- night features an hour of performances while the second night features an
elimination.
----------------------
The show is produced and broadcasted on Sony TV, India and is co-
---------------------- produced with FremantleMedia (makers of the Idol series), which is owned by
---------------------- the German media corporation Bertelsmann.
---------------------- Indian Idol – a show, that proved to be so entertaining. When ‘Idols’,

the hugely popular worldwide phenomenon, was brought to India as ‘Indian
---------------------- Idol’, Sony Entertainment Television promised the nation that it would forget
---------------------- everything else and it surely did!
In a span of merely nine months, ‘Indian Idol’ took millions of Indians
----------------------
to towering heights of sheer frenzy, propelling them to live their dreams and
---------------------- becoming ‘water cooler conversation’ across the nation. ‘Indian Idol’ experienced
viewer engagement as never before, truly cutting across all boundaries of caste,
----------------------
creed, social status and geographies to witness people from every walk of life
---------------------- turn up in full strength, not only to participate and make their dreams come true
but also religiously vote to choose their ‘Indian Idol’.
----------------------
In keeping with its philosophy of offering innovative and distinct content,
---------------------- Sony Entertainment Television, is now all set to launch the second series of its
---------------------- groundbreaking phenomenon, ‘Indian Idol.’
---------------------- 14.5 CASE STUDY 4: AIDS AT WORK

---------------------- Issues
---------------------- AIDS is a leading cause of death among Americans ages 25 to 44, the heart
of the workforce. An estimated two-thirds of large businesses and nearly one in
---------------------- ten small businesses have encountered employees with HIV or AIDS. Despite
the impact that HIV/AIDS had during its first 10 years of existence, there was
----------------------
no nationwide effort to promote HIV/AIDS policies and prevention education
---------------------- in the workplace. Ogilvy PR was asked by CDC (Centers for Disease Control
and Prevention) to help create outreach and education programs focused on the
---------------------- American workplace. Ogilvy PR was the PR agency, who handled this.
----------------------
----------------------

Challenge Notes
HIV/AIDS-related stigma and misinformation about the transmission of
----------------------
the virus was proving to be a contentious issue in offices and on unionized job
sites. Businesses and unions, already pressed on insurances expenses and other ----------------------
health related issues, were reluctant to address HIV/AIDS directly.
----------------------
Insight
From field research, Ogilvy PR learned that in order to be accepted by ----------------------
workers and staff, workplace education had to be endorsed and initiated by
----------------------
senior management and labor leaders. Only through their support and leadership
would worker acceptance be possible. ----------------------
Strategy ----------------------
Ogilvy PR worked with CDC on the creation of the Business Responds to
AIDS program in 1992 and the Labour Responds to AIDS program in 1995 to ----------------------
ensure that American workplaces were armed with the necessary information ----------------------
to increase understanding HIV/AIDS and reduce its stigma. The programs
were framed in five key areas: Workplace Policy Development; Manager and ----------------------
Labour Leader Training; Employee Education; Employee Family Education;
and Community Service and Volunteerism. ----------------------
An important element in the success of the launch and maintenance of ----------------------

the programs was the development of a Business and Labour National Partners
Board, a prestigious advisory panel of leading business and labor leaders. ----------------------
This created an opportunity for thought leaders to serve as role models ----------------------
for other business leaders and provide direction and input on innovative and
effective ways to engage the business and labor communities. ----------------------
Campaign ----------------------
Ogilvy PR developed an array of materials in support of the programs ----------------------
including: Informational brochures, posters, billboards, airport dioramas and
video education tapes. ----------------------
The creation of a website, www.hivatwork.org, to provide business ----------------------
and labour communities with one stop access to tools and resources, policy
development language, news briefs, national conference listings, current laws, ----------------------
and expert forums
----------------------
The creation of a Business Manager’s Kit and a Labor Leader’s kit, each
with comprehensive guidance for fulfilling the five program areas, both Kits are ----------------------
available in hard copy and are downloadable from the website.
----------------------
A series of announcements, AIDS in the Workplace, on television, radio
and print public service produced and marketed nationally. ----------------------
Media relations materials for national press launches, satellite news ----------------------
interviews, radio and TV talk shows, and video and audio news releases.
Direct outreach through town forums with AIDS leadership, tailored ----------------------
direct mailings to CEOs and national teleconferences to business, labour and ----------------------
public health communities.
Case Studies 397

Notes Results
The National Commission of AIDS commended CDC’s HIV/AIDS
---------------------- workplace programs as “the most successful, innovative partnership between
---------------------- government and the private sector.”
A significant numbers of U.S. corporations, unions and local businesses
---------------------- have utilised CDC’s HIV/AIDS in the workplace tools and technical assistance.
---------------------- An online promotional campaign focusing on the availability of the
Manager’s Kit and Labour Leader’s Kit from the www.hivatwork.org website
----------------------
resulted in a 440 percent increase in downloads of the kit components in the
---------------------- first eight months.
TV, print and radio public service announcements generated an additional 50
----------------------
percent calls to the Business and Labour Resources Services HIV/AIDS hotline.
---------------------- Ogilvy PR is proud to continue its association with CDC, as it continues to
support and expand the Business & Labour Respond to AIDS programs.
----------------------
---------------------- 14.6 CASE STUDY 5: BAD PR - CORPORATE COLDNESS

---------------------- After power was cut to a traffic signal and a girl died in a car accident,
FPL’s actions outraged parents and jurors alike.
----------------------
At first glance, it was a senseless, horrible traffic accident. A gloomy late-
---------------------- afternoon sky, a stoplight that didn’t work, the screech of tires on rain-soaked
pavement. A 12-year-old girl died. To her family and friends, it was a shattering
---------------------- loss. To those who didn’t know her, it was just another sad story in the local
section of the daily newspaper.
----------------------
How that accident led to one of the largest damage awards in Florida
---------------------- history is a story of an almost unbroken chain of corporate error? The $37
million verdict against Florida Power & Light Co. delivered by a Miami-Dade
----------------------
jury March 5 can be viewed as many things: a cautionary tale for companies
---------------------- facing a sensitive lawsuit, a primer on legal strategy, a study in jury psychology.
Or it can be categorised more simply “The jury had to be angry, either... at FPL
---------------------- or... at the lawyer,” says Mitchell Lipcon, a Miami lawyer who has published a
newsletter on jury verdicts for 25 years.
----------------------
Lipcon says he’s never seen a larger wrongful death award in Florida
---------------------- composed entirely of compensatory damages. No punitive damages were
---------------------- awarded to the parents of Jill Goldberg, the 12-year-old student killed on Sept.
12, 1997. What went wrong for FPL? Almost everything, starting with the
---------------------- accident itself. The traffic signal at the corner of Southwest 120th Street and
67th Avenue in the Miami-Dade suburb of Pinecrest stopped working that day
---------------------- because FPL lineman Ray Woodard pulled a fuse from a transformer box on a
---------------------- 20-foot pole about 100 feet away from the intersection.
Woodard was there to repair a downed power line and turned off power to
---------------------- the transformer to protect the FPL crew on the scene. But Woodard never saw
---------------------- the metal plate at the base of the pole marked “traffic signal,” which indicated

that the transformer supplied power to the stoplight. He never alerted police, or Notes
the city, of the outage.
----------------------
About 10 minutes after Woodard removed the fuse, the Mercedes edan
driven by Rosalie Goldberg, her daughter, Jill, beside her, sailed through the ----------------------
intersection. A Ford Expedition travelling down 120th Street struck the car. The
Mercedes spun and slammed into a GMC Suburban. Jill was killed. ----------------------
Early news reports detailing Jill’s death didn’t mention FPL’s role in the ----------------------
accident. When it came to light, it did so in the Pinecrest local paper. There,
FPL made its second mistake. Spokesman Dale Thomas told the paper that the ----------------------
utility had no duty to warn the public about power outages or disabled traffic
----------------------
lights. The company’s primary obligation, Thomas said, was to protect its
own workers. Moreover, he made no expression of sympathy for the accident ----------------------
victims.
----------------------
When Jill’s grieving father, Walter Goldberg, read Thomas’ words, he
decided to hire a lawyer. “That set me off,” says Goldberg, a marine biology ----------------------
professor at Florida International University. “It was just corporate posturing.”
----------------------
Common Corporate Mishap
James Lukaszewski advises companies about how to handle potential ----------------------
public relations disasters. The White Plains, N.Y., consultant, whose clients ----------------------
average $750 million in revenue annually, says FPL made a common blunder
in its initial public comment. “The single greatest cause for adverse litigation ----------------------
is when the victims feel the company doesn’t really care,” Lukaszewski says.
Questions to FPL concerning the Goldbergs’ case were routed through FPL ----------------------
spokesman Thomas, who declined to comment other than to say the utility would ----------------------
file an appeal. Lukaszewski says FPL should have contacted the Goldbergs
immediately to express its sympathy and then settled quickly and quietly to ----------------------
avoid negative publicity.
----------------------
FPL could have done just that. Stuart Grossman, the Miami personal
injury lawyer who represented the Goldbergs, says his first and only ----------------------
settlement demand was $5 million. The most the utility’s lawyers ever offered
was $400,000. “The Goldbergs would have been happy not to go to court,” ----------------------
Grossman says. Lukaszewski says FPL’s decision to press for trial is a sign ----------------------
that FPL still acts like an old-style public utility with monopoly power instead
of a corporate entity with shareholders with whom to reckon. FPL decided to ----------------------
handle the personal injury suit internally, rather than turning to longtime outside
counsel Steel Hector & Davis. ----------------------
That may have been its third mistake. Walter Goldberg says the principal ----------------------
FPL lawyer, Robert Dugan, never expressed any regret to him over the loss of
----------------------
his daughter. “I saw him at least a half-dozen times. He never once offered an
apology,” Goldberg says. “The last time I saw him, he wagged his finger at us ----------------------
and said, accept our [settlement] offer or we’ll see you in court.”
----------------------
----------------------
Case Studies 399

Notes Corporate Confidence
FPL had good reason to feel confident. The law concerning liability for
----------------------
power outages in Florida seemed to be in the utility’s favour. In fact, had a bolt
---------------------- of lightning knocked out the traffic light, FPL would never have faced a trial.
Based on that, FPL’s lawyers twice asked Miami-Dade Circuit Judge Juan
----------------------
Ramirez Jr. to dismiss the case, maintaining that it couldn’t be held responsible
---------------------- for Jill Goldberg’s death. Ramirez refused.
Its best legal argument defeated, FPL decided to sail into trial anyway.
----------------------
Once the case went before a jury on March 1, FPL switched strategy.
----------------------
“They blamed the drivers,” Goldberg says.
---------------------- FPL lawyers Dugan and co-counsel Robert Boan told the jury that the
---------------------- utility couldn’t be obligated to ensure that every traffic light in the county
worked when it terminated power. And, they said, Rosalie Goldberg should have
---------------------- stopped at the intersection once it was clear that the light was not functioning,
as required by Florida traffic laws.
----------------------
Jurors’ View
----------------------
Jury foreman Juan Perez says FPL made its biggest mistake in not
---------------------- accepting any blame for Jill’s death.
“If FPL would have acknowledged responsibility for throwing the switch
----------------------
and then made the case that they were only partially responsible, that might
---------------------- have flown better with some members of the jury,” Perez says. “But they said,
‘Screw you, we’re not responsible.”
----------------------
Perez, a 30-year-old Kendall resident, says the jury was angered by
---------------------- FPL’s repeated assertion that it “was impossible” to identify which transformer
supplied power to every traffic light in the county. Evidence at trial showed that
---------------------- there are 2,024 signals in the county, he says.
---------------------- “That’s what pissed me off the most,” he says. “There are a limited
[number] of lights and they kept saying it was impossible. Give me a break.”
----------------------
But even more convincing to the jury, he says, was the testimony of FPL
---------------------- lineman Woodard, who said that he never looked to see whether the traffic light
was affected.
----------------------
“To them, power outages were a fact of life and they throw switches all
---------------------- the time,” he says. “But to say that in front of a jury is almost suicidal to a
defense.”
----------------------
He said the jury also found fault with FPL’s lawyers. “They turned their
---------------------- back to the jury when they spoke, and when they talked to us, they wouldn’t
look us in the eye,” he says. After a one-week trial, the jury deliberated for three
----------------------
hours. It was unanimous. FPL was entirely at fault for Jill’s death. But for the
---------------------- power outage, the fatal accident would not have happened.
----------------------

‘Shame on You’ Notes
Then came the matter of damages. Perez, the foreman, took the lead.
----------------------
(FPL’s lawyers may have made another mistake in allowing Perez on the jury.
He works as a consultant to construction companies that have damage claims ----------------------
against government entities.)
----------------------
Grossman had asked for $10 million. The jurors ultimately awarded the
Goldbergs $37 million - $17 million for Walter Goldberg’s pain and suffering ----------------------
and almost $20 million to Rosalie, Jill’s mother.
----------------------
After reading the verdict, Perez made a statement. “We, the jury, urge
Florida Power & Light to review the limited amount of intersections that are ----------------------
controlled by its disconnects and provide a proper label or identification,” ----------------------
Perez said. Perez says one female juror pointed at the FPL lawyers and said,
“Shame on you.” The FPL lawyers left the room immediately, leaving their trial ----------------------
materials behind.
----------------------
FPL has hired the Miami firm Hicks & Anderson to handle its appeal.
----------------------
Post-trial motions are due today and FPL is expected to ask Ramirez to reduce
the judgment. ----------------------
Perez says the case “has really affected me.” He’s considering approaching ----------------------
the Miami-Dade County Commission to ask it to force FPL to comply with the
jury’s directive. ----------------------
“I hope FPL listened to us. I hope this wasn’t all about money,” he says. ----------------------
“We weren’t a runaway jury.”
----------------------
Summary ----------------------
 A case study is a research strategy, sometimes likened to an experiment, ----------------------

a history, or a simulation, though not linked to any particular type of
evidence or method of data collection. It is a qualitative research. ----------------------
 Using case study teaching is useful, because of the wealth of practical, real ----------------------
life examples that can be used to contextualise the theoretical concepts.
----------------------
Educational research has shown case studies to be useful pedagogical
tools. The importance of using case studies is that it exposes students to ----------------------
real-world issues with which they may be faced.
----------------------
 There are five case studies here for you to study and analyse. Case Study
1 is the Du Pont Corporation and the issue of Sexual Harassment. Case ----------------------
Study 2 is the Cadbury Dairy Milk - Celebrating 100 Years of Happiness.
Case Study 3 is based on the American TV reality show - American Idol. ----------------------
Case Study 4 focuses on AIDS at Work. Case Study 5 takes a hard look ----------------------
at Bad PR – Corporate Coldness.
----------------------
----------------------
Case Studies 401

Notes Keywords
----------------------
●● Exposure: the extent to which the target audience becomes aware of a
---------------------- person, message, activity, theme or organisation through the efforts of
PR. This might be used as part of the evaluation process.
----------------------
●● Exclusive: a news story offered by a PR practitioner to a single newspaper
---------------------- title, radio, website, or TV station.
●● Healthcare PR: specialist PR discipline that communicates about either
----------------------
prescription only (ethical healthcare) or OTC (over-the-counter) products
---------------------- or issues, to medical groups, interested third parties or specialist media.
----------------------
----------------------
1. Can and should corporate social responsibility target marginalise groups
---------------------- of the society? Will it then not be interfering with the responsibility of the
state?
----------------------
2. Does corporate social responsibility target only one section, i.e. the urban
---------------------- community and thus address only civic problems?
---------------------- 3. Can a corporate adopt an unconventional PR approach such as street plays,
intervene for mitigating the effects of disasters for promoting sustainable
---------------------- development? If so, how? Has any corporate done this before?
---------------------- 4. Examine the role of PR especially in the field of environment protection.
Since all corporates are in some way involved in worsening the environment,
---------------------- would this strategy fetch the corporate much praise or goodwill?
----------------------
Suggested Reading
----------------------
1. Jefkins, Frank. Planned Press and Public Relations.
----------------------
----------------------
---------------------- 4. Cutlip, Scott M. Effective Public Relations.
---------------------- 5. Aronoff, Craig and Baskins, Otis. Public Relations: Profession and
Practice.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Media Relations, Investor Relations
UNIT
15
Structure:
15.1 Introduction
15.2 How to write a Good Press Release
15.3 Media Relations
15.4 Investor Relations
Summary
Keywords
Suggested Reading
Media Relations, Investor Relations 403

Notes
Objectives
----------------------
----------------------
• Assess a good Press Release.
----------------------
• Identify different styles for different media.
---------------------- • Explain the importance of New Media.
---------------------- • Comprehend the importance and need for Media Relations.
---------------------- • Understand the basics of good Investor Relations.
---------------------- 15.1 INTRODUCTION

----------------------
What are Press Releases?
---------------------- The media or press release is one of the basic communication tools of any
---------------------- media relations program.
It is necessary every time you have any information to give to the media.
----------------------
Changes in company policy, new products and services, financial results,
---------------------- staff appointments, sponsorship news, new office inauguration – in fact almost
---------------------- any ‘happening’ or change within your company will probably merit a release
to at least a few papers for change is news.
----------------------
Press releases will be required for any kind of event to which media are
---------------------- invited, whether it is a top-level news conference, an exhibition press briefing
or a sponsored sporting event. Where appropriate, photographs illustrating the
----------------------
content of the release or the CEO or MD of the company, will be needed; unless
---------------------- it is purely a photo-story these must be captioned separately to the release.
---------------------- Hard News and Soft News
---------------------- ‘Hard’ news is primarily human stories. It deals with the shocking,
unexpected and unusual. It is usually explained by contrasting two headlines:
---------------------- ‘Dog bites man’ is not news but ‘Man bites dog’ is news.
---------------------- From the PR point of view, hard news is often unwelcome. Disasters, fires,
factory closures, customer accidents and the like are all hard news and will
---------------------- automatically be headlines. It makes sense then to have a carefully thought-out
---------------------- disaster contingency plan. Beneficial hard news would include the launch of a
new product, such as a new drug which could significantly change the lives of
---------------------- a large number of people; the opening of a new office to offer substantial job
---------------------- creation or a major change in the financial position of the company.
‘Soft’ news on the other hand, would be activities of most companies which
----------------------
become feature news. The launch of a new product, however important to your
---------------------- business, is not usually hard news, though you may get good coverage in the
media.
‘Feature’ news is often generated by the PR department or consultancy Notes
itself. It may take the form of a substantial market survey or the start of a new
sponsored competition etc. ----------------------
----------------------
15.2 HOW TO WRITE A GOOD PRESS RELEASE
----------------------
Press releases are the cornerstone of any public relations program. Write
them well, and your business or organisation will get its share of coverage. ----------------------
In an ideal world each news outlet would receive a release tailored to its ----------------------
particular needs. It is possible. But more often than not, the numbers are such
that one release is duplicated and sent out by post, fax or email to media selected. ----------------------
Most of the written material sent to the media often lands up in the dustbin – ----------------------
some of it unread! Sometimes press releases are written to please the management
of the company rather than to fulfill the requirements of the media. ----------------------
Most editors have become disillusioned with the material which comes to ----------------------
them from PR sources!
----------------------
Try to put yourself in the editor’s seat for a moment. If he works at a large
daily newspaper, he gets hundreds of press releases each day. ----------------------
He may have an hour to read all of them, so he will be able to spend a few ----------------------
seconds on each one or even less.
He will have to make quick judgments, based on a skim of the first paragraph ----------------------
or two, but he will also judge your release by its format. If it doesn’t look like ----------------------
news, he may not even read it. ‘Using plain white paper on news releases is
important from a physical point of view,’ says Brian Youmatz of the Framingham ----------------------
Middlesex News. ‘If the press release is on a letterhead, we usually tear it off
and glue the release on another sheet of paper which is time consuming’. ----------------------
1. Format for Press Release ----------------------

So you will have to follow a format, so that your press release can be ----------------------
effective.
----------------------
1 Keep typed lines 50 to 60 characters long, including punctuation marks
and spaces. This length is easy to read and allows margins wide enough ----------------------
for editing.
----------------------
2 Double- space the entire release.
3 Indent paragraphs 10 space then the standard 5. That makes your copy ----------------------
easier to scan and edit, editors will appreciate your thoughtfulness. ----------------------
4 To prevent typesetting errors avoid using hyphens at the ends of lines.
----------------------
5 If your release spills over to a second sheet, try to end the first page with
a completed paragraph or at least a completed sentence. Type ‘More’ ----------------------
across the bottom of the page at least three times.
----------------------
6 Start the second page with a brief heading that includes the name of
your organisation, the date and topic of your release. ----------------------

Notes 7. Mark the end of your release with this sign repeated several times- ####,
this is a version of journalese for ‘that’s all folks’!
----------------------
2. The Content
---------------------- Whatever the subject of the press release there are a number of simple
questions to which the editor or journalist needs to have the answers. They
----------------------
are the 5Ws and 1H:
---------------------- Who?
---------------------- What?
---------------------- Why?
Where?
----------------------
When?
----------------------
How?
---------------------- If at all possible, answer these questions in the first sentence of the release or
---------------------- at least in the first paragraph. Each answer can be elaborated in the following
paragraphs in order of importance.
---------------------- This method of constructing a release enables the editor to assess the
---------------------- importance of the story at a glance. It also means it can be subbed to fit the
available space without any rewriting. It is unlikely the editors will bother
---------------------- to rewrite the relatively small stories which are the bread-and-butter of most
media relations programs.
----------------------
Here is a small release, which refers to the launch of a government -
---------------------- sponsored industrial development scheme. Read the whole press release
and see for yourself how it is written. Are the 5Ws and 1H revealed there?
----------------------
Minister of industries launches first IT Zone in Karnataka
----------------------
Bangalore determined to attract new industry and cut unemployment
---------------------- The Honorable Minister of Industries, today the 12th of November, 2006,
cut the ribbon to mark the launch of the first IT Zone in Karnataka, namely
----------------------
the city of Bangalore.
---------------------- The Minister welcomed the move made by the Karnataka Industrial
---------------------- Development Centre in attracting IT companies and providing opportunities
for creating some 1,50,000 job opportunities to the state.
---------------------- Bangalore, being the capital of Karnataka, needed to be refurbished as
---------------------- high-tech city. The Chief Minister has been trying to ride the IT wave and
encourage new industry in the state.
---------------------- The IT Zone covers 600 acres, which for the next twelve years, will offer
---------------------- unprecedented benefits for the industrialists and inventors. These benefits
include tax exemptions and minimum red tape procedures.
----------------------
The IT Zone was announced by the state government in March of this year.
---------------------- There will eventually be ten zones in all, each of them designated in an

area of particularly high employment. The government wants to stimulate Notes
new industry in these areas both by encouraging growth and development
of new companies and by expansion of existing companies. ----------------------
In addition to the benefits conferred by the IT Zone status, Bangalore has ----------------------
a good deal to offer the industrialist. Geographically it is at the center of
many markets and its development means that there are excellent housing ----------------------
and recreation facilities. It can offer a workforce which through experience
----------------------
is willing, adaptable and ready to retrain.
An analysis of this release shows that the first paragraph answers the relevant ----------------------
questions as follows:
----------------------
Who? The Minister for Industries
----------------------
What? First IT zone
Why? To launch ----------------------
Where? Bangalore city ----------------------

When? Today, 12 November 2006 ----------------------
How? Cuts the ribbon.
----------------------
The second paragraph reports the Minister’s comments. The third and fourth
paragraphs expand on the IT Zone. The fifth paragraph briefly expands the ----------------------
IT Zone scheme. The sixth paragraph returns to the subject of the IT Zone ----------------------
and gives more information. Obviously all these sections can be expanded
more but this short press release gives the facts. ----------------------
3. Headlines ----------------------
The headline of your press release must attract attention, which probably ----------------------
means that it should be short. But if possible it should be a summary of the
information you are trying to convey in the release. ----------------------
If it is not possible in a single short headline, you could add a sub-head. ----------------------
Remember the editor is not going to quite as tempted as the reader might
be. ----------------------
Your release should ideally start with a heading that includes the name, ----------------------
address and telephone number of your organisation and the name of a contact
----------------------
person. The inclusion of a home number on your release means that will
have to be ready to respond to reporter’s questions at any time. ----------------------
To keep your credibility with the media, you need to have your facts on ----------------------
your fingertips.
----------------------
If you have a website, include the URL in your heading.
Many journalists read background material on websites first, before they ----------------------
call publicists. ----------------------
----------------------

Notes Press Release format for Headings
Next in your heading is the date.
----------------------
You should guess at the date you expect the release to arrive at the editor’s
---------------------- desk and date your release a day or two after that. If a news release carries
---------------------- yesterdays date, the editor may assume the news is stale and throw it away
without reading it. The next words in your heading will usually be, ‘For
---------------------- Immediate release’. Never write for ‘Immediate publication’. That looks
like you are commanding the publication to run your release.
----------------------
If there are pictures with your release, use the phrase ‘with art’, and add a
---------------------- word or two to identify each shot.
---------------------- And when you post your release on your website, include a link to the on-
line image so that journalists do not have to go hunting for the photo.
----------------------
4. Media Requirements
---------------------- Of course, different media will have different requirements, but on the
---------------------- whole a basic release such as above, may be suitable for most of them. The
following points are to be considered:
---------------------- a) TV and Radio: Here the material will be used in spoken rather
---------------------- than written format and you may want to rephrase the information
accordingly.
---------------------- b) News Desks: Whether working on TV, Radio or newspapers, news
---------------------- editors deal in immediacy. Material should be short and to the point. It
should also be topical. Advance information is particularly useful.
---------------------- c) National media, editors and magazines: Lead times for writers on
national dailies are longer in this area and there is more room for
----------------------
lengthier explanations provided they are relevant to the recipient’s
---------------------- speciality.
d) Local media: Regional dailies, weeklies and magazines and local TV
----------------------
and radio stations are particularly interested in their own area, so make
---------------------- sure there is a local angle in your story.
5. Style
----------------------
This is always a difficult area, as each writer tends to have his or her own
---------------------- style, which on the whole just gives variety. However, a clear and concise
style is easy to read; flowery style is not.
----------------------
Avoid long words when simple ones will do. Remember that all the
---------------------- publication’s readers will not have the command over language that you
may have. The subject matter and the medium which the release is aimed
---------------------- at are perhaps the two most important areas to think about.
---------------------- A little humour or a chatty approach often helps to enliven a rather dull
subject but often these approaches are associated with the fact that there is
---------------------- no content in the story, so, don’t overdo it!
----------------------

Use newspaper style. Limit your paragraphs to four or five lines. Short Notes
sentences (10 or 12 words) are easier to read. Many of your paragraphs may
only contain one sentence. It is important that a press release communicates ----------------------
efficiently. Every word counts. Review your copy to see how many words
you can cut out. ----------------------
Cross out as many adjectives as you can and that includes words like, ‘first, ----------------------
leading, pioneering, largest…etc. ----------------------
Clear writing helps. Fiery phrases and fancy verbal imagery can put reporters
----------------------
off.
Always use the active voice. The active voice is a stronger statement and ----------------------
takes fewer words. ----------------------
Avoid jargon. A press release, should make a direct statement. Try to use
----------------------
short, simple words.
6. How to write a good caption? ----------------------
Very often releases are accompanied by photographs and these can be very ----------------------
important. They are particularly important for magazines, as they rely heavily
----------------------
on photographs.
----------------------
If photographs are to be sent, they must be captioned. A good picture tells
a story, says the old newspaper adage, but it will need the names of people ----------------------
and products filled in it.
----------------------
Like releases the caption should be kept short and to the point. For the
photograph taken to accompany the IT Zone inauguration by the Minister ----------------------
cutting the red tape with the CM and others looking on, the caption should
----------------------
read :
----------------------
Caption –
The Honorable Minister for Industries toady cut the tape at Bangalore to ----------------------
launch the first IT Zone. He is watched by the Chief Minister of Karnataka, ----------------------
Dr Krishna, Mayor of Bangalore and others.
----------------------
The caption reflects who, what, why, where and when questions important
for good press releases. ----------------------
a) Checklist for writing captions ----------------------
i) Is the caption short and to the point?
----------------------
ii) Does it identify everyone or everything in the picture?
----------------------
iii) Double-check all spellings.
----------------------
7. The mechanics of the release
The quality of paper, its layout and sign-off information can almost as ----------------------
important as the release itself. ----------------------

Notes Remember, the good impression created by the writing of a first class
release will fall flat if there is no contact information, no space for remarks
---------------------- or subbing and no indication that the release has ended and there are no
---------------------- continuation sheets.
a) The paper
----------------------
The quality of paper should be good; robust enough to stand wear and tear
---------------------- of the postal system and the editor’s desk. The masthead should have the
---------------------- logo, name of company and address details, so that it is clear who is sending
it.
----------------------
Captions can be typed on plain paper or labels and stuck to the back of
---------------------- photographs.
---------------------- b) Contact Information
---------------------- It is extremely important to give full details of the people who can be contacted
for further information, in addition to the company or organisation’s printed
---------------------- on the press release.
---------------------- The details are typed such as this:
---------------------- For further information contact:
---------------------- Ranjit Sahgal,
---------------------- GM: Corporate Communications

Axis Software
---------------------- D Block, Connaught Place
---------------------- New Delhi 110 049
Phone : 011-26874322, 011-26873434-9
---------------------- Mobile : 9822607005
---------------------- Fax: 011-6873410
Email : ranjit.sahgal@axissoftwareindia.com
---------------------- Background information: www.axissoftware.com
Preeti Modi
----------------------
PR Manager,
---------------------- Impact PR
J 48 South Extension
----------------------
Part 2
---------------------- New Delhi 110 039
Phone: 011-26324156, 011-26324261-9
---------------------- Mobile : 9890143403
---------------------- Fax: 011-26324157
---------------------- Email: preet.modi @impactpr.com
----------------------

Here, you will notice that details are given of both the organisation and the Notes
PR consultancy. Sometimes PR companies only give their own executive’s
names but there are times when a journalist wants to check up directly from ----------------------
the client. In such situations, client’s information can be very important. ----------------------
c) Layout
----------------------
The release must be set in such a way that it is easy for the journalist to
utilise. A story of marginal interest may make it because it is quite easy to ----------------------
sub, whereas another similar story is ‘spiked’ because the lines are too close ----------------------
together and the margins are too narrow.
----------------------
Checklist for Layout
1. The margins: wide enough for remarks and subbing. ----------------------
2. Double spacing : leave space for remarks and subbing. ----------------------

3. Typed on one side only: allows for cutting out and pasting up. ----------------------
4. Underlining: never underline in a release as this is a printing instruction ----------------------
to set in italics.
----------------------
5. Capital letters: use these only for proper names and for a few dignitaries
such as His Excellency the Governor, Prime Minister, Mayor, or for ----------------------
Managing Director or Chairman. Do not use stops between letters such
as WHO, UNO etc ----------------------
6. Numbers: should be spelt out such as three, nine at the beginning of ----------------------
a sentence. However figures can be retained for dates, addresses and
----------------------
prices.
7. Carry over: Try not to carry part of a sentence over to the next page ----------------------
and if possible leave paragraphs intact as well. ----------------------
8. Page identification: Every page should be numbered and should carry
continuation note at the end of each page and at the top of the next ----------------------
page. This ensures that material stays in the correct order. ----------------------
9. Ending: the word END can be typed at the end of the copy before the
----------------------
contact details but not really necessary if the contact details are there.
d) Dates ----------------------
All material sent to the media should be dated, with the precise date not ----------------------
just June 2003 or May 2002. The date has an obvious value if the story is a
----------------------
topical one but it also helps the journalist to check how long the material has
taken to reach. If the material is not topical then the date should be changed ----------------------
if it is delayed.
----------------------
e) Captions
----------------------
Never write captions on the back of photographs. It will show through or
damage the photo. Always use paper, which can be cut and gummed on to ----------------------
the photograph or labels.
Notes f) Envelopes
The main consideration with envelopes is that they should be large enough
----------------------
and strong enough to accommodate the material contained within them.
---------------------- Always use hard backed envelopes when sending out photographs and if
possible type the word ‘PHOTOGRAPHS:DO NOT BEND’. This helps in
---------------------- keeping the material intact.
---------------------- g) Planning and mailing
---------------------- Once the decision has been made, good mailing should be planned under
the following:
----------------------
The Mailing List
---------------------- Ideally, a PR professional should check every name on the complete list and
decide if the person would be interested in the press release. Sometimes you
----------------------
may be using alternate communications disciplines such as advertising and
---------------------- direct marketing, so you may need to complement the media list. So you
should maintain multiple lists:
----------------------
Advertising list: National newspapers, TV, Radio
---------------------- PR list: local newspapers, TV, Radio, Cable
---------------------- Content of the release: Does the release need to be angled differently for
the different sections of the list?
----------------------
Photographs: Are these really necessary and to be sent to all?
----------------------
h) In house distribution
---------------------- The most usual method is by courier or personally. However fax or e-mail
---------------------- can be used which are faster. Photographs can also be scanned and sent
through email. New technology means that you can send a press release on
---------------------- an AGM or a musical performance from the venue itself, if you are armed
with a laptop with modem.
----------------------
i) Timing
---------------------- This is one of the most important considerations. Media vary in their
---------------------- frequency of publication: some are dailies, fortnightlies, weeklies, monthly
or bi-monthly etc. Radio and TV can react more quickly with the news item
---------------------- going on air an hour or so after it has been received. Magazines have longer
lead times.
----------------------
j) Follow–up
----------------------
It is sensible to plan regular follow-up with key media professionals. This
---------------------- will create a rapport which is very important while organising press releases
to be sent or press conferences.
----------------------
8. Fact Sheets
---------------------- If you find that have a lot of relevant material to give to the press, what do
---------------------- you do? But then, you know that press releases should be limited to one
page, so what do you do with the rest? The answer is to use a Fact Sheet to
round up your press release. The convenience here is that a fact sheet can Notes
run into several pages and include historical perspective, anecdotes and data.
----------------------
You get the best of both: a short press release that quickly gives reporters
and editors the essence of your story and material to do an in-depth article. ----------------------
Other types of writing for Media
----------------------
There are many tools that can be utilised while writing for media. Apart
from Press Releases, there are tools such as Advertorial. Read on to see what ----------------------
exactly is an Advertorial.
----------------------
Advertorials
----------------------
Most publications are on the look-out for ways of increasing their circulation,
their publications and some for increasing their revenue. This means both editorial ----------------------
division and the advertisement division may be interested in ‘advertorials’,
associated booklets, competitions and Special Offers. ----------------------
These promotional tools can be extremely useful to the discerning PR ----------------------

professional, particularly for products and services which have passed their first
peak of interest. The first advantage to the participating company is that they are ----------------------
not seen by the reader as advertising but as a part of the editorial content and ----------------------
therefore having the endorsement of the editorial staff. This is true even though
the approach may vary from a fairly soft sell in the advertorial to a strong sales ----------------------
pitch in the special offer. The second advantage is that such promotions enable
----------------------
the name of your organisation or your brands to be included in the copy which
can be very important for publications which would not normally use such names. ----------------------
The choice of different types of bought space will depend on the product or ----------------------
service in question and partly on the budget. It will also depend on which type
of promotion the editor is prepared tolerate in his or her pages, for the choice of ----------------------
medium is as important here as in many other parts of the media program. The
best advertorial in the world is of no use if it is targeted at the wrong audience. ----------------------
Advertorials are paid-for editorial material and though they must be labeled ----------------------
as advertisements, they are designed to look like the editorial pages of the
----------------------
publication as much as possible. The difference is, of course, that the copy has
been supplied by the PR professional and the photography and space must have ----------------------
been paid for by the organisation or client.
----------------------
Advertorials may take the form of a single or double-spread in the magazine
or they may be more elaborate booklets which are bound into the copy of ----------------------
magazine. They are particularly important to the PR professional who has to
----------------------
promote everyday products such as soap, shampoo etc.
The magazine Filmfare always has some pack or sachet attached to it. ----------------------
The contents ----------------------

In theory, the advertorial could be put together on almost any subject ----------------------
appropriate to the magazine and to the sponsor. In practice, it is mainly used in
the fields of food, cooking and beauty. But there is no reason why an enterprising ----------------------

Notes PR professional might not put together any package which could be of interest
to the general consumer.
----------------------
A gardening magazine may be interested in advertorials on certain types of
---------------------- plants or fertilisers; holiday packages may be of interest to motoring or travel
magazines; home décor and colour scheme advertorials may be of interest to
---------------------- homemakers and may be offered by paint and wallpaper companies. Indeed the
---------------------- opportunities are many and varied. A news release is straightforward with no
fancy writing. It contains the who, when, where, why, what and how. A few days
---------------------- after issuance it is no longer newsworthy. On the other hand, a feature story,
though it must also be newsworthy, is relatively timeless.
----------------------
Feature Stories
----------------------
Unlike a news story a feature can have a point of view. And it usually isn’t
---------------------- written in inverted – pyramid format. You can write news stories and features
about the same material, increasing your chances of successful placement.
----------------------
The feature story is a valuable publicity tool and an ideal vehicle for helping
---------------------- people understand how to choose, buy and use your product or service. The
‘angle’ is the most important attribute of a feature story, which usually highlights
---------------------- an intriguing or unknown facet of the organisation, product, cause, service or
individual.
----------------------
Fillers
----------------------
This is the material used to fill in the empty at the last minute. Some of the
---------------------- Filler material comes from who publicise people.
Before you spend any time writing a sheet of Fillers, ask your target
----------------------
publications if this sort of material is of interest to them.
---------------------- Each Filler should be 100 words or fewer, and 50 words is probably the best
---------------------- length.
Letters to the Editor
----------------------
The ‘Letters to the Editor’ section of a newspaper is highly read. It is not
---------------------- used by publicists as much as it could or should be. Always address your letter
to ‘Dear Editor’. If you start with ‘Dear Sir’ and the editor is a woman she may
---------------------- decide that you are not really writing to her.
---------------------- Letters to the Editor should be short – a maximum of 3-5 paragraphs.
Sentences should be concise. Make only one point per letter.
----------------------
If your letter is about a controversial situation start with the name of your
---------------------- organisation and the purpose of the message. Your next paragraph should convey
some brief background material.
----------------------
Your opinion should come in the third paragraph, and the concluding
---------------------- paragraph should tell your readers what you want them to do.
---------------------- It is also possible to write letters to the editor to clarify misconceptions about
or inaccuracy in the coverage of your business or product. In fact, journalists
---------------------- expect you to do this. Briefly mention the misconception or inaccuracy then

devote the bulk of the letter presenting the correct information. Notes
The last paragraph should draw a conclusion or ask for an action. Once again,
----------------------
limit yourself to 3 – 5 paragraphs.
Podcasts ----------------------
Technically, a podcast is a media file that is distributed by subscription (paid ----------------------
or unpaid) over the Internet, using syndication feeds for playback on mobile
devices and personal computers. Like ‘radio’, it can mean both the content and ----------------------
the method of syndication. The latter may also be termed podcasting. The host
----------------------
or author of a podcast is often called a podcaster. The term “podcast” is derived
from Apple’s portable music player, the iPod. A pod refers to a container of some ----------------------
sort and the idea of broadcasting to a container or pod correctly describes the
process of podcasting. ----------------------
What is Podcasting? ----------------------
Podcasting is a way to receive audio files over the Internet. ----------------------
Many content providers, including CNN, offer podcast feeds at no cost.
These feeds deliver audio broadcasts to your desktop. You can listen to these files ----------------------
on your computer or load them on your MP3 player and take them with you. ----------------------
Blogs
----------------------
“Blogs and participatory journalism are impacting the practice of public
relations.” ----------------------
There are many ways to do a successful blog. What it really comes down ----------------------
to is offering readers a unique perspective and commentary, providing links to
unique resources and news and updating daily or close to it. ----------------------
Add your own spin and commentary. It doesn’t have to be long, just interesting. ----------------------
A good example of a more news-oriented blog with good spin is Adrants. About
half their posts summarise “real news” in the mainstream press, but with a ----------------------
sardonic insider feel. ----------------------
It is essential that your blog brings the reader more than just facts and links.
Remember, the value-add for the reader is your analysis. If you can relate some ----------------------
personal experiences along the way, all the better. John Battelle’s Searchblog ----------------------
does this well, he provides his analysis of search, media and technology news
in a way that feels very insider. ----------------------
Why Blog For PR? ----------------------
Businesses in general have not yet woken up to the threat posed by blogs. ----------------------
But on the brighter side, a majority of PR professionals also believe that
----------------------
blogs can be an opportunity for companies as well. Overall, eight out of ten
believe that businesses could benefit from setting up their own blogs. ----------------------
There are now over “4.1 million blogs around the world with a new blog ----------------------
created every 7.4 seconds.” However, there are only about 5000 company blogs.
That leaves a lot of room for you to stake your niche and gain valuable exposure. ----------------------

Notes An article in BusinessWeek highlighting blogs’ new importance to companies
states, “Blogs or websites with content management systems are changing the
---------------------- model for companies, we really now have to engage customers on a one on one
---------------------- level.” With Microsoft leading the way, corporations have accepted blogging as
an integral part of public relations. Companies now recognise the need to talk
---------------------- to their clients and potential clients in a more intelligent and unbiased way.
---------------------- Business blog expert Wayne Hurlbert sums up the reason to blog for PR,
“A rapidly growing number of journalists and editors are reading blogs on a daily
---------------------- basis. It’s becoming imperative that a company start a blog to keep up with that
---------------------- trend.”
---------------------- Perhaps the single most powerful aspect of blogs, in the area of public
relations, is the personalisation aspect. The writer is a real person, putting a
---------------------- human face on what might otherwise be perceived as a unknown and distant
company. By developing trust among the various readership groups, the blog
----------------------
writer provides a personal link to the company.
---------------------- If the goal of a public relations effort is to work in coordination with sales
---------------------- and marketing, a blog will establish trust with current and prospective customers
and clients. It’s a well known truism that people will buy from their friends and
---------------------- people whose word they trust. The development of a blog component to the
---------------------- company website will go far in achieving those trust based goals.
In the past, public relations depended upon controlling the message that
----------------------
was put forward from the organisation. The unspoken goal was to manipulate
---------------------- public opinion. The prearranged message was centralised and carefully vetted
for wording and nuances. The term “spin” was born to describe the technique.
----------------------
Blogging as a public opinion medium gives up that tight control, and presents
---------------------- a message in a conversation with the reader. In that sense, the blog cultivates
public opinion. With increasing transparency, inside and outside of organisations,
----------------------
the best approach is one of open discussion. A blog is the ideal delivery vehicle.
---------------------- Many people have begun to mistrust the traditional canned public relations
---------------------- approach as lacking honesty. The openness of a blog changes that perception
entirely. As the philosopher Marshall McLuhan stated, ‘Perception is reality’.
---------------------- In other words, what we perceive to be true is real in our own thoughts.
---------------------- A blog can enhance that perception of honesty by delivering the straight
goods on an issue.
----------------------
With that open approach, lacking the traditional tightly controlled message,
---------------------- trust in the company is enhanced. In both the short and longer terms, that trust
translates into more life long customers and clients.
----------------------
Businesses seeking a public relations vehicle, that provides numerous
---------------------- additional benefits, should consider adding a blog component to their website.
The authentic and personalised blog voice is a natural fit for any public relations
----------------------
effort.
A rapidly growing number of journalists and editors are reading blogs on a Notes
daily basis. It’s becoming imperative that a company start a blog to keep up with
that trend. A blog’s updated post can be on a journalist’s computer in seconds. ----------------------
Old style tightly controlled public relations are becoming a thing of the past. ----------------------
Get into the new public relations paradigm, by adding the personalised voice
----------------------
of a blog.
Other tools of public relations ----------------------
(1) Research (2) News & Feature Articles (3) Letter writing (4) Photography (5) ----------------------
Investor relations (6) Annual reports (7) Philanthropy (8) Internal Communications
(9) Speeches (10) Films, tapes slides closed circuit TV. ----------------------
----------------------
----------------------
----------------------
1. Press releases are the cornerstone of any public relations program.
----------------------
2. Never write captions on the back of photographs.
1. The quality of paper should be good and robust enough to stand wear ----------------------
and tear of the ______ system and the editor’s desk.
----------------------
2. As per the newspaper style, the paragraphs should be of ______ lines.
3. A press release is good if the sentences are short. A short sentence is ----------------------
generally consists of _____ words. ----------------------
----------------------
Activity 1
----------------------
1. Research the local newspapers in your town / area and check different ----------------------
Press Releases. Make notes on the nature of the press release and the
differences between different samples. ----------------------
2. Study the business pages of your local newspaper. Can you make out ----------------------
if the news is based on a press release? Make a comparative of such a press
release and regular news. ----------------------
----------------------
15.3 MEDIA RELATIONS
----------------------
Writing scares many intelligent, creative, dynamic people and writers
too!! There is a fear, which strikes people if they are told to write an assignment, ----------------------
called Writers Block! ----------------------
Dealing with the Media
----------------------
Over the last 10 years, the number of media options in –Print, TV, Radio
and Internet has exploded. In advertising, for example Media planners use some ----------------------

Notes of the most sophisticated software in the world to track the efficacy of the many
media options.
----------------------
The PR practitioner practises media relations for two purposes. To send
---------------------- information about his organisation and to gather information that would be of
importance.
----------------------
The PR practitioner has to identify important members of the media and
---------------------- ensure that they have a clear understanding of what his organisation stands for and
the efforts it is making to add value to: its customers, the community, employees,
---------------------- the industry… and so on.
---------------------- The development of a good relationship hinges on both parties finding the
interaction mutually beneficial. Give and take are a part of the relationship.
----------------------
Pitching your story to journalists: 5 key factors
---------------------- What does it take to sell a story to a journalist? These are some key points that
---------------------- you should keep in mind:
a) The quality of the story peg: Wherever you go and whichever media we pitch
---------------------- to, it is a good story that sells. What makes a good story peg are relevancy,
---------------------- topicality, and how useful will the story be to the business community and/or
newspaper readers. When we offer a good story to a journalist, not only are
---------------------- we helping ourselves but also the journalist in getting a byline or maybe to
---------------------- the front page. For instance, if you give an exclusive to a young journalist,
you are helping him/her get noticed in the market and among his/her peers
---------------------- and he/she will remember you for that.
---------------------- b) Relationship with the journalist: A good relationship with the journalist opens
doors quickly for you. This empowers you to call the journalist on his/ her
----------------------
mobile phone, or at odd times occasionally and he/she will forgive you for
---------------------- it. Relationship alone however doesn’t work always. We cannot be good
friends with a journalist and expect him/her to do a story for us every time.
----------------------
That’s mixing personal and professional matters and nobody appreciates
---------------------- that in the long run.
---------------------- c) Knowing what the journalist writes on: We are not only talking about
knowing what particular beat a journalist writes on, but also his/ her writing
----------------------
style, the type of issues he/she picks up in that particular beat, the angles
---------------------- that he/she gives to his/her stories. Let’s take an IT journalist in say The
Economic Times for example. We can study which IT vertical he/she writes
----------------------
on predominantly. Does he/she concentrates more on consumer technology
---------------------- or B2B technology? If he/she writes a column, what is the theme that
connects the last five stories in that column? Does he/she writes for the ET
----------------------
weekday paper but also writes for The Sunday ET edition? Does he/she
---------------------- concentrate more on exclusives, interviews, personal profiling, or industry
stories? Are his/her stories more of fact reporting or does he/she tend to put
----------------------
in his/her opinions into his/her stories?
d) Industry knowledge : Often when we pitch supposedly-new-industry-trend- Notes
stories to a journalist, he/she knows about it already. That’s what happens
when we do not study and analyse the industry and the market developments, ----------------------
and tend to blindly pass on what our clients briefed us. When we have a ----------------------
good knowledge of the industry and our clients and can figure out ourselves
correctly what makes news and what does not, only then we can actually ----------------------
pitch a good industry story to the media. ----------------------
e) Media list : Having an updated and exhaustive media list can be quite a
----------------------
boon. Our media lists should contain details of all the journalists in a) that
particular beat b) the weekday and weekend editions c) all newspapers, ----------------------
and d) all cities. That way when your pitch fails with one journalist or in
----------------------
one particular city say Delhi, you can pick up the phone to a journalist in
Mumbai or Bangalore. ----------------------
----------------------
15.4 INVESTOR RELATIONS
As organisations have grown over the years, it has become necessary to seek ----------------------
ever-increasing amounts of funds to sustain the business activity. This has led
----------------------
to company asking members of the public to invest money in their organisation
and receive a profit on that investment. Investor relations involves keeping the ----------------------
investors updated through annual reports, quarterly reports…etc, that are sent
along with their dividend checks. ----------------------
Globalisation has exposed Indian companies to sophisticated investors. In ----------------------
their quest to vie for investors’ attention and monies, to adjust to the evolved
market structure and to meet global standards of disclosure and transparency, ----------------------
companies need to have a continuous dialogue with the investing community. ----------------------
Often, even well-performing companies remain undervalued due to lack of
public information and poor analysts coverage. A scientific Investor Relations ----------------------
Program not only helps a company improve its visibility among investors, but ----------------------
also helps it understand its value drivers and bridge the value gap.
Financial Relations-Relationship building with financial community ----------------------
This Public Relations function involves communicating with the Financial ----------------------
Community.
----------------------
The financial community could include the following:
----------------------
 Security Analysts at Brokerage Houses
 Large Banks ----------------------
 Non Banking Financial Institutions ----------------------

Extensive information is provided to the members of the financial community ----------------------
who then make their decision to buy or sell a companies stock.
----------------------
Information is provided in the form of printed material and through meetings,
conferences and seminars, between company officials and members of the ----------------------
financial community.
Notes Ethics : Financial PR
Additionally Public Relations personnel also have a legal obligation to promptly
----------------------
release news about:
----------------------  Dividends
----------------------  Earnings
----------------------  New Products

 Mergers
----------------------
… and any other development that might affect the security values or influence
---------------------- investment decisions of stockholders or the investing public.
---------------------- In India, SEBI enforces this code.
Bending the Rules
----------------------
Financial PR practitioners are often guilty of walking the fine line between
---------------------- ethical and non ethical practices.
---------------------- (The moneys involved can be very tempting, and it undermines the conscience
of all, but a determined few.)
----------------------
Common areas for malpractice
----------------------
 ‘Hyping’ the sale of new securities
----------------------  Being overly optimistic on ‘financial health’
----------------------  ‘Untimely’ release of sensitive financial information i.e. regarding mergers
and acquisitions
----------------------
 Making unsubstantiated product/service claims.
----------------------  Providing fraudulent testimonials
----------------------  Deceptive pricing
----------------------  Rigging surveys
 Manipulating contests
----------------------
Tools for Communicating
----------------------
Providing liberal amounts of financial information to the financial community
---------------------- is imperative for maintaining favourable relations.
---------------------- The Financial Community, is on the other hand, a very well defined target
audience and can be reached through:
----------------------
 The Annual General Report
----------------------  Quarterly Reports
----------------------  Minutes of the AGM
----------------------  Financial Literature, namely the Company Prospectus
----------------------

Notes
----------------------
Fill in the blanks.
----------------------
1. _________ are paid-for editorial material and they must be labeled as
advertisements. ----------------------
2. Letters to editor for controversial situation should start with the name ----------------------
of the _______ and the purpose of the message.
----------------------
3.
___________ relations involves keeping the investors updated
through annual and quarterly reports sent along with the dividend ----------------------
payments.
----------------------
4. A rapidly growing number of _________ read blogs on a daily basis.
It is becoming imperative that a company starts a blog to keep up with ----------------------
that trend.
----------------------
5. A blog can enhance the perception of _________ by delivering the
straight goods on an issue. ----------------------
----------------------
Activity 2
----------------------
1. Access the following and study their features: ----------------------
i. Corporate film of two companies
----------------------
ii. Two feature articles on two different topics
----------------------
iii. Five Letters to the Editor on topics related to some organizations
or products ----------------------
iv.
Two Chairman’s Speeches published in leading dailies or ----------------------
business magazines
2. Visit an automobile company blog sites and study the information ----------------------
available there. Do you think it is making an impact on the subject of ----------------------
discussion? Is it positive or negative?
----------------------
3. Go to the CNN site and access the news podcasts. What is special
about this? ----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Notes Summary
----------------------  The media or press release is one of the basic communication tools of
---------------------- any media relations program. It is necessary every time you have any
information to give to the media. Changes in company policy, new products
---------------------- and services, financial results, staff appointments, sponsorship news, new
office inauguration – in fact almost any ‘happening’ or change within your
---------------------- company will probably merit a release to at least a few papers, for change
---------------------- is news.
 There’s a difference between ‘hard’ news and ‘soft ‘news.
----------------------
 Press releases are the cornerstone of any public relations program. Write
---------------------- them well, and your business or organisation will get its share of coverage.
---------------------- There are certain formats and guidelines to be followed while writing press
releases.
----------------------
 The mailing list also must be very carefully generated so as to give maximum
---------------------- mileage to the press release.

 There are many tools that can be utilised while writing for media. Apart
----------------------
from Press Releases, there are tools such as Advertorial. You could also
---------------------- write fact sheets, fillers, letters to the editor to enhance public relations for
your organisations. Other Tools of Public Relations are : (1) Research (2)
----------------------
News & Feature Articles (3) Letter writing (4) Photography (5) Investor
---------------------- relations (6) Annual reports (7) Philanthropy (8) Internal Communications
(9) Speeches (10) Films, tapes slides closed circuit TV.
----------------------
 Podcasting is a way to receive audio files over the Internet. Many content
---------------------- providers such as CNN offer podcast feeds at no cost. These feeds deliver
audio broadcasts to your desktop.
----------------------
 Blogs and participatory journalism are impacting the practice of public
---------------------- relations.”There are many ways to do a successful blog. What it really comes
down to is offering readers a unique perspective and commentary, providing
----------------------
links to unique resources and news and updating daily or close to it.
----------------------  Businesses in general have not yet woken up to the threat posed by blogs.
----------------------  PR professionals also believe that blogs can be an opportunity for companies
---------------------- as well. With Microsoft leading the way, corporations have accepted
blogging as an integral part of public relations. Companies now recognise
---------------------- the need to talk to their clients and potential clients in a more intelligent
---------------------- and unbiased way.
 Blog cultivates public opinion. With increasing transparency, inside and
----------------------
outside of organisations, the best approach is one of open discussion. A blog
---------------------- is the ideal delivery vehicle. Businesses seeking a public relations vehicle,
that provides numerous additional benefits, should consider adding a blog
----------------------
component to their website.
 Over the last 10 years the number of media options in Print, TV, Radio and Notes
Internet has exploded. In advertising, for example Media planners use some
of the most sophisticated software in the world to track the efficacy of the ----------------------
many media options. ----------------------
 The PR practitioner practises media relations for two purposes. To send
----------------------
information about his organisation and to gather information that would be
of importance. ----------------------
 The PR practitioner has to identify important members of the media and ----------------------
ensure that they have a clear understanding of what his organisation stands
----------------------
for and the efforts it is making to add value to: its customers, the community,
employees, the industry… and so on. ----------------------
 What does it take to sell a story to a journalist? These are some key points ----------------------
that you should keep in mind.
----------------------
 As organisations have grown over the years it has become necessary to
seek ever-increasing amounts of funds to sustain the business activity. This ----------------------
has led to company asking members of the public to invest money in their ----------------------
organisation and receive a profit on that investment.
----------------------
 Investor relations involves keeping the investors updated through annual
reports, quarterly reports etc. ----------------------
 This Public Relations function – ie financial relations, involves ----------------------
communicating with the Financial Community. There are many tools that
can be used to communicate to the financial universe. ----------------------
----------------------
Keywords
----------------------
●● Feature article: A broad or in-depth newspaper, magazine, internet,
----------------------
radio or TV article that discusses, analyses or interprets an issue, subject
or trend. A feature generally takes longer to research and produce than a ----------------------
news story.
----------------------
●● Financial PR: The efforts of a publicly-held company, or one that is on
the way to A public flotation, to communicate with shareholders, security ----------------------
analysts, institutional investors and stock exchanges.
----------------------
●● Fillers: This is the material used to fill in the empty at the last minute.
Some of the Filler material comes from publicity people. ----------------------
●● Integrated campaign: A multidisciplinary approach which uses a number ----------------------
of marketing communications techniques in order to deliver a consistent
set of messages. The aim is to achieve seamless communication with the ----------------------
audience.
----------------------
----------------------

Notes ●● Internal Communications: Information dissemination and flow between
an organisation and its employees. Common tools include newsletters and
---------------------- intranets.
---------------------- ●● Media Relations: Communicating with the media by pro-actively
speaking to journalists and sending out relevant articles to the respective
---------------------- publications, responding to media enquiries, and providing appropriate
information on behalf of an organisation.
----------------------
●● Sector/trade press: The media relevant to specific audiences. This
---------------------- includes special interest magazines such as hi-fi magazines for hi-fi
enthusiasts. Trade journals are read for business and professional reasons,
----------------------
for example Electronics Week is read by electronics engineers.
----------------------
----------------------
---------------------- 1. Why are press releases written in an inverted pyramid format?

2. In what circumstance would you write a Letter to the Editor. Write a Letter
----------------------
to the Editor of your local newspaper on an issue that is close to your heart.
---------------------- 3. Write a feature story not exceeding 250 words defending the necessity for
four- wheeler riders to wear seat belts.
----------------------
4. Of all the factors to keep in mind when developing a “Press Release” which
---------------------- are the most important factors? Explain why.
---------------------- 5. Write down eight points that are checklists while preparing the layout of
a Press Release.
----------------------
6. Write down three checklists for writing a caption to a photograph.
---------------------- 7. Differentiate between ‘hard’ news and ‘soft’ news. Give two examples
---------------------- each.
8. Write short notes on:
----------------------
i) Filler
----------------------
ii) Fact Sheet
---------------------- iii) Podcast
---------------------- iv) Blogs
---------------------- 9. Mention some reasons for which a press release is written.
----------------------
----------------------
----------------------
----------------------
----------------------

1. True
----------------------
2. True
----------------------
Fill in the blanks.
The quality of paper should be good and robust enough to stand wear and
1. ----------------------
tear of the postal system and the editor’s desk.
----------------------
2. As per the newspaper style, the paragraphs should be of 4-5 lines.
----------------------
A press release is good if the sentences are short. A short sentence is
3.
generally consists of 10-12 words. ----------------------
Fill in the blanks.
----------------------
Advertorials are paid-for editorial material and they must be labeled as
1.
advertisements. ----------------------
Letters to editor for controversial situation should start with the name of
2. ----------------------
the organisation and the purpose of the message.
----------------------
Investor relations involves keeping the investors updated through annual
3.
and quarterly reports sent along with the dividend payments. ----------------------
A rapidly growing number of journalists read blogs on a daily basis. It is
4. ----------------------
becoming imperative that a company starts a blog to keep up with that
trend. ----------------------
A blog can enhance the perception of honesty by delivering the straight
5. ----------------------
goods on an issue.
----------------------
1. Banik, G.C. PR and Media Relations. Jaico Publishing, 2005 ----------------------
2. Jefkins, Frank. Planned Press and Public Relations. ----------------------
----------------------
----------------------
5. Cutlip, Scott M. Effective Public Relations
----------------------
----------------------
----------------------
----------------------

Notes
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----------------------

Glossary
Advertising
Account Executive (AE) : 1. (advertising definition) The person in an
advertising agency who serves as the principal contact with a specific agency
client (or more than one client) and coordinates the work of agency staff
members assigned to those client(s). 2. (sales definition) A salesperson who
has responsibility for the overall relationship between his or her firm and a
few major accounts. Comment: An account executive coordinates financial,
production, and technical capabilities of the firm to satisfy the needs of the
account.
Ad : The name used to indicate an advertising message in the print media.
Advertiser : The company, organisation, or individual who pays for advertising
space or time to present an announcement or persuasive message to the public.
Advertising : The placement of announcements and persuasive messages in
time or space purchased in any of the mass media by business firms, non profit
organisations, government agencies, and individuals who seek to inform and/ or
persuade members of a particular target market or audience about their products,
services, organisations, or ideas.
Advertisement : Any announcement or persuasive message placed in the mass
media in paid or donated time or space by an identified individual, company, or
organisation.
Advertising Agency : An organisation that provides a variety of advertising
related services to clients seeking assistance in their advertising activities. A
full-service advertising agency engages in the planning and administration of
advertising campaigns, including setting advertising objectives, developing
advertising strategies, developing and producing the advertising messages,
developing and executing media plans, and coordinating related activities
such as sales promotion and public relations. A limited-service advertising
agency concentrates on one of the major advertising agency functions such as
developing and producing advertising messages or media plans.
Advertising Allowance : A payment made to a retail or wholesale operator by
the seller of an advertised product or for use in purchasing local advertising
time and space for the advertiser’s product.
Advertising appeal : Although several studies have examined the effects
of advertising appeals and arguments on consumer attitudes and purchase
intentions separately, little research has focused on exploring how advertising
appeals interact with arguments to influence how consumers process advertising
information, evaluate the advertised brand, and form their purchase intentions.
Advertised Brand : A brand that is owned by an organisation (usually a
manufacturer) that uses a marketing strategy usually involving substantial
advertising. An advertised brand is a consumer product, though it need not be,
and is contrasted with a private brand, which is not normally advertised heavily.
Advertising Budget : The decision about how much money should be spent
for advertising during a specific time period in order to accomplish the specific
Glossary 427
Notes objectives of a client. This decision also involves the allocation of specific
amounts of the total advertising appropriation to various media, creative
---------------------- approaches, times of the year, and to the production costs involved in preparing
the advertising messages for placement in the various media.
----------------------
Advertising Contract : A contractual agreement between an advertiser and the
---------------------- operator of any form of advertising media for the purchase of specified types of
advertising time or space.
---------------------- Adaptive control budgeting : An advertising budget method whereby the
advertiser uses test markets to examine the sales level and profitability of
----------------------
advertising spending levels that are higher and lower than the spending level
---------------------- currently being used by the advertiser. The advertiser may decide to adapt to
either a higher or lower spending level depending on test market results.
---------------------- Advertising Copy : The verbal or written component of advertising messages.
---------------------- Advertising claim : A statement made in advertising about the benefits,
characteristics, and/or performance of a product or service designed to persuade
---------------------- the customer to make a purchase.
---------------------- Advertising clutter : The extent to which multiple messages compete for the
consumers’ (limited) attention. It often is used to indicate multiple competing
---------------------- messages in one medium (such as television) or place.
---------------------- Advertising/display allowance : A form of trade sales promotion in which

retailers are given a discount in exchange for either promoting the product in
---------------------- their own advertising, setting up a product display, or both. It is also known as
a display allowance.
---------------------- Advertising Effectiveness : An evaluation of the extent to which a specific
---------------------- advertisement or advertising campaign meets the objectives specified by the
client. There is a wide variety of approaches to evaluation, including inquiry
---------------------- tests, recall tests, and market tests. The measurement approaches include recall
of ads and advertising themes, attitudes toward the advertising, persuasiveness,
---------------------- and impact on actual sales levels.
---------------------- Advertising exposure : Any opportunity for a reader, viewer, or listener to see
and/or hear an advertising message in a particular media vehicle.
---------------------- Advertising idea : The theme or concept that serves as the organising thought
for an advertisement. Ideas are used to dramatize the product-related information
---------------------- conveyed in advertising.
---------------------- Advertising Manager : The advertising manager participates in the development
of marketing plans, acts as the principal contact with the advertising agency,
---------------------- provides the agency with market and product data and budget guidelines, and
critiques the agency’s creative and media recommendations at the time of (or
---------------------- prior to) their submission to marketing management. The advertising manager
---------------------- normally reports to the corporate or division marketing manager. Comment:
Many consumer packaged goods companies with product manager setups do
---------------------- not have an advertising manager; rather the functions listed above are performed
by product managers or brand managers for their assigned products. If, in such
---------------------- setups, there is an advertising manager, this executive usually is limited to
providing expert counsel and services to the product managers.
----------------------

Advertising media : The various mass media that can be employed to carry Notes
advertising messages to potential audiences or target markets for products,
services, organisations, or ideas. These media include newspapers, magazines, ----------------------
direct mail advertising, Yellow Pages, radio, broadcast television, cable
television, outdoor advertising, transit advertising, and specialty advertising. ----------------------
Advertising message : The visual and/or auditory information prepared ----------------------
by an advertiser to inform and/or persuade an audience regarding a product,
organisation, or idea. It is sometimes called the creative work by advertising ----------------------
professionals in recognition of the talent and skill required to prepare the more
effective pieces of advertising. ----------------------
Advertising objective : A statement prepared by the advertiser (often in ----------------------
association with an advertising agency) to set forth specific goals to be
accomplished and the time period in which they are to be accomplished. ----------------------
Objectives can be stated in such terms as products to be sold, the amount of
trial purchases, the amount of repeat purchases, audience members reached, the ----------------------
frequency with which audience members are reached, and percentages of the
audience made aware of the advertising or the product. ----------------------
Advertising penetration : The percentage of the target market that remembers ----------------------
a significant portion of the advertising message conveyed by an advertised
campaign. ----------------------
Advertising strategy : A statement prepared by the advertiser (often in ----------------------
association with an advertising agency) setting forth the (1) competitive frame,
(2) target market, and (3) message argument to be used in an advertising ----------------------
campaign for a specific product or service.
----------------------
Advertising wearout : The occurrence of consumers becoming so used to an
ad that they stop paying attention to it. ----------------------
Ad elements can aid recall : Unrelated, Nonverbal Ad Elements Can Aid
Recall Multimedia advertisements often use nonverbal auditory and visual ----------------------
elements that do not ... for the use of auditory and visual elements in multimedia
----------------------
advertisements.
AIDA : Attention, Interest, Desire, Action. An approach to understanding how ----------------------
advertising and selling supposedly work. The assumption is that the consumer
passes through several steps in the influence process. First, Attention must be ----------------------
developed, to be followed by Interest, Desire, and finally Action as called for ----------------------
in the message. Another, but similar, scheme was developed by Lavidge and
Steiner in 1961, later to be dubbed the AIDA: Hierarchy of Effects Model by ----------------------
Palda in 1966. This approach involves the hierarchy of effects: awareness,
knowledge, liking, preference, conviction, and finally purchase in that order. ----------------------
Note the similarity to the adoption process.
----------------------
All-you-can-afford budgeting : An approach to the advertising budget that
establishes the amount to be spent on advertising as the funds remaining after ----------------------
all other necessary expenditures and investments have been covered in the
comprehensive budget for the business or organisation. ----------------------
Ambiance : An overall feeling or mood projected by a store through its aesthetic ----------------------
appeal to human senses.
----------------------
Glossary 429
Notes Attitude : 1. (consumer behavior definition) A person’s overall evaluation
of a concept; an affective response involving general feelings of liking or
---------------------- favorability. 2. (consumer behavior definition) A cognitive process involving
positive or negative valences, feelings, or emotions. An attitude toward an
---------------------- object always involves a stirred-up state—a positive or negative feeling or
motivational component. It is an interrelated system of cognition, feelings, and
---------------------- action tendencies.
---------------------- Attitude toward the ad : Consumers’ overall evaluations of an advertisement,
not the brand being promoted.
----------------------
Audience : The number and/or characteristics of the persons or households
---------------------- who are exposed to a particular type of advertising media or media vehicle.
Audit Bureau of Circulations (ABC) : An organisation sponsored by
---------------------- advertisers, advertising agencies, and print media publishers that verifies the
audience circulation figures claimed by newspapers and magazines.
----------------------
Bait-and-switch advertising : The advertising of a product or service at an
---------------------- unusually low price with an intention to switch ... to a higher priced item when
the customer comes to the store to buy the advertised item. This practice is
---------------------- illegal if customers find it difficult or impossible to buy the advertised item.
---------------------- Banner Ad : A graphical Internet advertising tool. Users click on the graphic
to be taken to another Web site. The term “banner ad” refers to a specific size
---------------------- image, measuring 468 pixels wide and 60 pixels tall (i.e. 468x60), but it is also
used as a generic description of all graphical ad formats on the Internet.
----------------------
Billboard : Generic term for hoardings, bulletins and posters.
---------------------- Button Ad : A graphical advertising unit smaller than a banner ad. Also called
---------------------- a tile ad.
Belief : 1. (consumer behavior definition) A cognition or cognitive organisation
---------------------- about some aspect of the individual’s world. Unlike an attitude, a belief is
always emotionally or motivationally neutral. Krench and Crutchfield define
---------------------- belief as a generic term that encompasses knowledge, opinion, and faith an
---------------------- enduring organisation of perceptions and cognition about some aspect of the
individual’s world. It is the pattern of the meanings of a thing, the cognition
---------------------- about that thing. 2. (consumer behavior definition) The perceived association
between two concepts. A belief is synonymous with knowledge or meaning in
---------------------- that all refer to consumers’ interpretations of important concepts.
---------------------- Bleed ad : The print ads or brochures for which the color, graphics, and/or
artwork extends to the edge of the page. Such pages have no unprinted margins
---------------------- or borders and are usually sold at a premium price.
B2B advertising : This area includes: (1) industrial advertising, which involves
---------------------- goods, services, resources, and supplies used in the production of other goods
---------------------- and services; (2) trade advertising, which is directed to wholesalers and retailers
who buy the advertised product for resale to consumers; (3) professional
---------------------- advertising, which is directed to members of various professions who might use
or recommend the advertised product; and, (4) agricultural advertising, which is
---------------------- directed to farmers as business customers of various ...
----------------------

Broadsheet : Term used to describe a full or standard size newspaper such as Notes
the New York Times. Typically, a broadsheet newspaper is 6 columns wide by
20-22 inches high. ----------------------
CPM (Cost per Thousand) : Used as a comparison tool to determine the
----------------------
efficiency of different media vehicles. Cost of a media vehicle divided by the
targeted impressions expressed in thousands. ----------------------
CPP (Cost per Point) : CPP’s represent how much it would cost to deliver one
target rating point, or 1% of target audience. Primarily used in television and ----------------------
radio buying as a comparison and planning tool to determine how much media
----------------------
can be afforded at a given budget level.
Circulation : The number of copies of a print advertising medium that are ----------------------
distributed. Paid circulation refers to the number of copies that are purchased
by readers. ----------------------
Client : The term used to indicate an advertiser who is being served by an ----------------------
advertising agency.
----------------------
Copy research : The testing of audience reactions to advertising messages while
the advertising is being developed (called pre-testing) or after the advertising ----------------------
has been produced in final form (called post-testing.)
Commercial : The name used to indicate an advertising message in the radio, ----------------------
broadcast television, and cable television media. ----------------------
Commission method of compensation : The traditional compensation method
whereby advertising agencies have been paid on the basis of a percentage of ----------------------
the cost of media time and/or space they purchased for a client... Recently,
clients have been moving toward the negotiation of specific fees for the services ----------------------
rendered by advertising agencies. ----------------------
Concept : A briefly stated idea or theme for possible use as the organising idea
for an advertisement or advertising campaign. ----------------------
Concept statement : A verbal and/or pictorial statement of a concept (for a ----------------------
product or for advertising) that is prepared for presentation to potential buyers
or users to get their reaction prior to its being implemented. Product concepts ----------------------
are followed by prototypes; advertising concepts by one of several forms of
semi-finished production. ----------------------
Continuity : 1. (advertising definition) A script for a television commercial. ----------------------
2. The timing pattern used in a media plan to schedule the exposure of the
advertising messages during the time period covered by the media plan. 3. ----------------------
(channels of distribution definition) The degree to which a channel relationship
is expected to last into the future. ----------------------
Competitive parity budgeting : An advertising budget method whereby an ----------------------
advertiser chooses to use a level of spending on advertising that is similar to the
advertising spending level being used by major competitors. ----------------------
Cooperative Advertising : An approach to paying for local advertising or ----------------------
retail advertising whereby the advertising space or time is placed by a local
retail store but is partly or fully paid for by a national manufacturer whose ----------------------
product is featured in the advertising.
----------------------
Glossary 431
Notes Comparative advertising : 1. (consumer behavior definition) An advertisement
in which there is specific mention or presentation of competing brand(s) and a
---------------------- comparison is made or implied. 2. (advertising definition) An approach to the
advertising message that persuades the audience by comparing the performance
---------------------- of two or more brands of a product or service. The reference brand may be
the previous formula used by the advertiser, an unnamed competitor of the
---------------------- advertiser, or a specific and named competitor of the advertiser.
---------------------- Controlled circulation : The distribution of a newspaper or magazine, usually
free, to selected individuals who are members of an audience of special interest
---------------------- to advertisers.
---------------------- Copy platform : A statement prepared by the advertiser (often in association
with an advertising agency) setting forth the advertising strategy, a summary of
---------------------- the rationale for the strategy, and related background information.
Copy testing : Advertising is necessary to build a brand. Advertising is, in
----------------------
essence, communication, and marketers will always have to test. However,
---------------------- advertisers today seem obsessed with creating entertaining advertising, ignoring
the informative role of this form of communication ... Of those that remember
---------------------- something about the advertising, only about one-quarter can cite a main point
that reflects a real advertising message.
----------------------
Copy writer : A person with good verbal abilities who is talented in creating
---------------------- advertising ideas and skilled at writing advertising copy.
Corrective advertising : An advertising message placed by an advertiser
---------------------- in order to correct a deceptive or unfair advertising message previously
disseminated by the advertiser. This type of advertising is used when the Federal
----------------------
Trade Commission or a body like AAAI (India) finds that certain advertising
---------------------- messages used by an advertiser require correction.
Cost-per-thousand (CPM) : A simple and widely used method of comparing
---------------------- the cost effectiveness of two or more alternative media vehicles. It is the cost of
---------------------- using the media vehicle to reach 1,000 people or households. The CPM of any
vehicle is computed by dividing the cost of placing a specific ad or commercial
---------------------- in the media vehicle by the vehicle’s audience size and multiplying the result
by 1,000.
---------------------- Coverage : The degree to which a particular advertising medium delivers an
---------------------- audience within a particular geographic area or within a specific target market.
Creative boutique : limited-service advertising agency that focuses its work
---------------------- on the development of highly effective (creative) advertising messages for its
clients.
----------------------
Day-after-recall (DAR) : A method of testing the performance of an ad or
---------------------- a commercial whereby members of the audience are surveyed one day after
their exposure to an ad or commercial in an advertising vehicle to discover
---------------------- how many of the audience members remember encountering that specific ad or
commercial in the advertising vehicle.
----------------------
Dealer tie-in : The local support by a retailer for an advertiser’s promotional
---------------------- program through use of in-store display materials, cooperative advertising,
local contests, identification in media advertisements, and so on.
----------------------

Deceptive advertising : The advertising intended to mislead consumers by Notes
falsely making claims, by failure to make full disclosure, or by both.
Direct marketing : 1. (retailing definition) A form of nonstore retailing in which ----------------------
customers are exposed to merchandise through an impersonal medium and then
----------------------
purchase the merchandise by telephone or mail. 2. (channels of distribution
definition) 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, catalog selling, cable selling, etc.) for the purpose of soliciting a
response by phone, mail, or personal visit from a prospect or customer. ----------------------
Direct response advertising : An approach to the advertising message that ----------------------
includes a method of response such as an address or telephone number whereby
members of the audience can respond directly to the advertiser in order to ----------------------
purchase a product or service offered in the advertising message. Direct response
advertising can be conveyed to members of a target market by a wide variety ----------------------
of advertising media, including television, radio, magazines, mail delivery, etc.
----------------------
Effective frequency : An advertiser’s de-termination of the optimum number of
exposure opportunities required to effectively convey the advertising message ----------------------
to the desired audience or target market.
----------------------
Flat rate : A price charged for advertising space or time that does not include
discounts based on the quantity of space or time purchased by the advertiser. ----------------------
Frequency : The number of times a person, household, or member of a target
market is exposed to a media vehicle or an advertiser’s media schedule within a ----------------------
given period of time. This number is usually expressed as an average frequency
----------------------
(the average number of exposures during the time period) or as a frequency
distribution (the number of people exposed once, twice, three times, etc.). ----------------------
Generic advertising : An approach to preparing advertising messages that
concentrates on the customer benefits that apply to all brands in a product ----------------------
category, as opposed to benefits that are unique to specific brands.
----------------------
Global advertising : The use of advertising appeals, messages, art, copy,
photographs, stories, and video and film segments on a global scale. ----------------------
Hierarchy of effects model : 1. A concept related to the manner in which ----------------------
advertising supposedly works; it is based on the premise that advertising
moves individuals systematically through a series of psychological stages ----------------------
such as awareness, interest, desire, conviction, and action. 2. An early model
that depicted consumer purchasing as a series of stages including awareness, ----------------------
knowledge, liking, preference, conviction, and purchase.
----------------------
House agency : An advertising agency that is owned and operated by an
advertiser. ----------------------
Infomercial : The use of a program-length time period to advertise products ----------------------
and services. This approach often includes a direct response offer to sell the
advertised items directly to the public. ----------------------
Integrated Brand Communications : If an advertising agency is shaping an
integrated marketing communications plan, it is a fair assumption that the plan ----------------------
will revolve around advertising. While an important medium, advertising is not ----------------------
the end-all be-all of a successful integrated marketing plan.
Glossary 433
Notes Interactive advertising : a small number of specific outcome measures,
research on interactive advertising will need to focus much more on the ongoing
---------------------- processes ... to examine how consumers want, or will at least accept, advertising
and other forms of marketing communication as part of their ... A key issue
---------------------- for advertisers is identifying which advertisements are more appropriate for
interactive media and which are better ...
----------------------
International advertising : The advertising phenomenon that involves the
---------------------- transfer of advertising appeals, messages, art, copy, photographs, stores, and
video and film segments (or spots) from one country to another.
----------------------
Insert(s) : sales promotion definition) A preprinted advertising page(s),
---------------------- commonly offering coupons or other promotional activities, that is inserted into
a separate publication, such as a newspaper... advertising definition) Preprint
---------------------- advertising of one or more pages that is loosely inserted between the pages of a
newspaper or magazine.
----------------------
Institutional advertising : An advertising message or advertising campaign
---------------------- that has the primary purpose of promoting the name, image, personnel, or
reputation of a company, organisation, or industry. When employed by a
---------------------- company or corporation it is sometimes called corporate advertising.
Impression : A single potential exposure of a message to a member of your
----------------------
target audience. The number of pairs of eyes or ears that will be exposed to a
---------------------- media vehicle.
Low involvement hierarchy : In the hierarchy of effects model, the order
---------------------- consists of acquiring information, leading to formation of positive attitudes
and then to the behavioral act of purchase or trial. Under low involvement
----------------------
conditions, the process is reversed such that it is after purchase, if at all, that
---------------------- interest and attitudes emerge.
Makegood : In broadcast, a commercial offered in lieu of an announcement
---------------------- which was (or will be) missed due to either station error, preemption by another
advertiser, or movement of the program purchased from one time slot to another.
----------------------
In print, the free repeat of an ad to compensate for the publication’s error in the
---------------------- original insertion.
Manufacturer’s Brand : A brand owned by a manufacturer, as distinguished
---------------------- from a brand owned by a reseller.
---------------------- Media Buying : The advertising agency function that involves negotiating with
the salespeople of various advertising media in order to obtain needed time and
---------------------- space for advertising agency clients at the most favorable prices.
---------------------- Media Mix : The specific combination of various advertising media (including
network television, local television, magazines, newspapers, specialty
---------------------- advertising, etc.) used by a particular advertiser and the advertising budget to
be allocated to each medium.
----------------------
Media vehicle : A specific newspaper, magazine, radio station, television
---------------------- program, outdoor advertising location, edition of Yellow Pages, etc., that can
be employed to carry advertisements or commercials. For example, The New
---------------------- Yorker magazine or Business Today is a media vehicle in the magazine category
of advertising media.
----------------------

Media weight : A measure of the amount of advertising media used in an Notes
advertising campaign.
Moral dimension of advertising : from researchers and marketers, such as ----------------------
ethical issues surrounding cigarette advertising, gift giving, political advertising,
----------------------
and customer privacy... mentally disabled), products (six essays), pricing (six
articles), promotion and advertising (nine selections), and distribution (three ----------------------
essays... labels inappropriate marketing (ten essays, including ones on sex-
appeal advertising of Guess... This is important when sex-appeal advertising is ----------------------
discussed because the intent is usually to get consumers ...
----------------------
National Brand : A brand that is marketed throughout a national market.
It contrasts with regional brand and local brand. It usually is advertised and ----------------------
usually is owned by a manufacturer, though neither is necessary for the
definition because Kmart’s brands, for example, are obviously national, even ----------------------
international.
----------------------
Negative advertising : The use of advertising messages that concentrate on
pointing out undesirable aspects of competing products, services, organisations, ----------------------
or ideas. This technique is frequently used in political advertising to attack
opposing politicians and political ideas. ----------------------
Objective-and-task budgeting : An advertising budget method in which
----------------------
advertising expenditures are determined on the basis of a specific audit of the
resources needed to achieve the specific objectives and tasks outlined in the ----------------------
advertiser’s media plan.
Offer : The terms and conditions (price, quantity, delivery date, shipping ----------------------
costs, guarantee, etc.) under which a product or service is presented for sale to
----------------------
potential customers in direct response advertising.
OTC : Opportunity-To-See ----------------------
Percent-of-sales budgeting : An advertising budget method in which ----------------------
advertising expenses are established as a fixed percentage of past, current, or
future sales levels. ----------------------
Pre-print advertising : Any advertising material printed ahead of a publication’s ----------------------
regular press run, often on a printing press ... The preprint advertising is inserted
into the publication during its regular printing and binding process. Preprint ----------------------
advertising includes a variety of approaches, including multipage inserts, free
standing inserts, reply cards and reply envelopes. ----------------------
Pre-testing : The testing of the potential communication effectiveness of ----------------------
advertising messages before they are exposed to audiences as part of a regular
media schedule. Advertisers often expose versions of advertising messages that ----------------------
are under development to small samples of audience members to examine the
extent to which the intended message is. ----------------------
Primary advertising : An approach to the advertising message that emphasises ----------------------
the basic attributes of the product category.
Promotion Mix : The various communication techniques such as advertising, ----------------------
personal selling, sales promotion, and public relations/product publicity
available to a marketer that are combined to achieve specific goals. ----------------------
----------------------
Glossary 435
Notes Promotional Campaign : The combination of various advertising, public
relations, sales promotion, and personal selling activities used by the marketer
---------------------- over a period of time to achieve predetermined goals.
Payout budgeting : An advertising budget method in which advertising
----------------------
expenses are treated as part of the investment required to establish a new
---------------------- product.
POP : Point of Purchase
----------------------
POS : Point of Sale
---------------------- Point of Purchase advertising : Advertising usually in the form of window
---------------------- and/or interior displays in establishments where a product is sold to the ultimate
consumer.
---------------------- Promotion Mix : The various communication techniques such as advertising,
personal selling, sales promotion, and public relations/product publicity
---------------------- available to a marketer that are combined to achieve specific goals.
---------------------- Promotional Campaign : The combination of various advertising, public
relations, sales promotion, and personal selling activities used by the marketer
---------------------- over a period of time to achieve predetermined goals.
---------------------- Positioning : The idea of ‘positioning’ a product or service emerged in the
early 1970’s when Al Ries and Jack Trout wrote a series of articles called ‘The
---------------------- Positioning Era’ for Advertising Age. Their definition of positioning is still one
of the best: “… positioning is not what you do to a product. Positioning is
---------------------- what you do to the mind of the prospect. That is, you position the product in the
mind of the prospect.” This appears in the book by Al Ries and Jack Trout -
---------------------- “Positioning: The Battle for your Mind .”
---------------------- Another definition could be : Choosing a market niche for a product, taking
into consideration price, promotion, distribution, packaging, competition,
---------------------- marketplace needs, etc.
---------------------- Puffery : 1. (advertising definition) An exaggerated advertising claim that
would be generally recognized as such by potential customers. 2. (consumer
---------------------- behavior definition) An advertising term implying gross exaggeration but
usually not considered deception because it is assumed not to be believable.
---------------------- Examples are the mile-high ice cream cone or the world’s softest mattress. 3.
(sales definition) The exaggerated statements made by a salesperson about the
---------------------- performance of a product or service.
---------------------- Rate : 1. (advertising definition) The cost of a unit of space or time in an
advertising media vehicle. 2. (physical distribution definition) A charge usually
---------------------- expressed in dollar terms for the performance of some transportation or
distribution service.
----------------------
Rating Point : Rating points represent the percent of the total available target
---------------------- audience impressions that are delivered by a media vehicle.
----------------------  GRP stands for Gross Rating Points, the sum of all the rating points for a
specific time period.
----------------------  TRP stands for Target Rating Points, the rating points delivered to a
particular target audience for a specific time period.
----------------------

Reach : The percent of the target audience that will see or hear an ad at least Notes
one time.
Recall test : A test of advertising effectiveness in which a sample of members ----------------------
of the audience are contacted at a specific time after exposure to a media vehicle
----------------------
and asked to recall advertising messages they remember seeing and/or hearing
in the media vehicle. ----------------------
Sales promotions : Those activities other than advertising and personal selling
aimed at stimulating product sales. Some of the components of sales promotion ----------------------
are trade shows, premiums, incentives, give-aways, and specialty advertising
----------------------
(in which a firm’s name may be printed on a calendar, for example.
Scribble or rough : A dummy of a print advertising layout or an early version ----------------------
of a television storyboard prepared by art directors and copywriters to help
them realize the advertising idea and discuss it with others in the advertising ----------------------
agency and sometimes with clients.
----------------------
Selective advertising : An approach to developing advertising messages that
seeks to present the unique or differentiating characteristics of a particular ----------------------
brand of product or service.
----------------------
Selecting the right Media : Setting aside enough money for an advertising
budget can be quite a challenge for a small business... wisely is to make sure ----------------------
you select the most effective advertising media in which to run your ads...
which ads are reaching your customers, you can adjust your advertising dollars ----------------------
accordingly and come back better prepared when your advertising cycle begins
again ... ----------------------
Share : The percentage of households or target audience members using ----------------------
television or radio that are tuned to a particular program.
----------------------
Sleeper effect : A controversial finding in the communications literature that
asserts that the influence of advertising or other communications material can ----------------------
increase once the message is no longer broadcast or presented to the respondent...
The belief is that the influence of advertising or other communications increases ----------------------
with number of repetitions.
----------------------
Social advertising : The advertising designed to educate or motivate target
audiences to undertake socially desirable actions. ----------------------
Split run : The placement of two or more different ads for the same advertiser in
alternate copies of the same media vehicle in order to compare the effectiveness ----------------------
of the different advertising messages. ----------------------
Sponsorship : Advertising that seeks to establish a deeper association and
integration between an advertiser and a publisher, often involving coordinated ----------------------
beyond-the-banner placements.
----------------------
Standard advertising unit : The system of standard sizes of newspaper space
adopted by newspapers in order to introduce a measure of uniformity to the ----------------------
complex process of buying space in a variety of newspapers in an assortment
of market areas. ----------------------
Sub-head : A part of the written component of print advertising that is designed ----------------------
to guide the reader’s attention to specific details about the advertised item or to
help organise issues presented in the body copy. ----------------------
Glossary 437
Notes Subliminal advertising : Advertising messages that are supposedly disguised
so that they are not able to be overtly seen and/or heard yet are nevertheless
---------------------- effective in persuading members of the audience.
Surrogate advertising : To choose in place of another, substitute. Advertising
----------------------
messages where the brand is not mentioned but only implied.
---------------------- Tabloid : Term used to describe a smaller than standard size newspaper such as
the Chicago Sun Times. Typically, a tabloid newspaper that is 5 columns wide
---------------------- by 14 inches high (approximately half the size of a broadsheet newspaper).
---------------------- TG : Target Audience.
---------------------- Tearsheet : An advertisement torn from a newspaper or magazine, sent to an

agency or advertiser as evidence of insertion.
---------------------- Understanding Media Math : Advertising is a complex business. Among
other tasks, advertisers and marketers must concern themselves with devising
---------------------- a focused, effective ... Additionally, each category has several different ways to
---------------------- assess advertising costs... media buyers use all this information to purchase and
monitor advertising campaigns... Buyer Most marketers will hire professional
---------------------- help before launching an advertising campaign.
Unique Selling Proposition (USP) : An approach to developing the advertising
---------------------- message that concentrates on the uniquely differentiating characteristic of the
---------------------- product that is both important to the customer and a unique strength of the
advertised products when compared to competing products.
---------------------- Wearout : A condition of inattention and possible irritation that occurs after an
audience or target market has encountered a specific advertisement too many
---------------------- times.
---------------------- Word-of-mouth : When the message reaches the consumers through what is
spoken by consumers and no advertising is involved.
----------------------
Zapping : The act of using a remote control to change television channels when
---------------------- an advertisement begins. Advertisers are concerned that this will be harmful,
but it is still unclear what effect zapping will have on advertising effectiveness.
---------------------- Zipping : Advertisers are concerned about the effect of zipping on advertising
---------------------- effectiveness, but any effect is not yet known. In fact, viewers may pay more
attention to advertising while zipping to be able to stop fast forwarding in time
---------------------- when the show resumes.
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------
----------------------

Public Relations Notes
AIR : All India Radio ----------------------
Above-the-line campaign : a marketing campaign using only advertising.
----------------------
Account : the term used to describe a client or job. In consultancies, “an account
team” refers to the group of PR consultants servicing a particular client. ----------------------
Below-the-line campaign : a marketing communications campaign that does ----------------------
not use advertising. Instead it uses promotional tools such as Public Relations,
direct marketing and sales promotion. ----------------------
BLOGS : Blogs and participatory journalism are impacting the practice of ----------------------
public relations. What it really comes down to is offering readers a unique
perspective and commentary, providing links to unique resources and news and ----------------------
updating daily or close to it.
----------------------
Brief : the instructions from a client to a consultancy, or directions communicated
within a PR agency. ----------------------
Broadcast : the dissemination of programs or messages through the media of ----------------------
radio, internet or television.
----------------------
Brainstorming : the creative process of group thinking to stimulate or articulate
ideas on a given subject or problem. ----------------------
Client : the organisation or person who employs a PR consultancy. ----------------------
Clipping : see Cutting.
----------------------
CERP : IPRA and European Center of Public Relations
----------------------
CMP : Develop Crisis Management Plan
CEO : Chief Executive Officer ----------------------
Corporate PR : Analysis of the objective condition of the company’s reputation ----------------------

and image. May involve conceptual reworking of the image.
----------------------
CMT : Crisis Management Team
----------------------
Communication : the credible, honest and timely two-way flow of information
that fosters common understanding and trust. ----------------------
Competition : other organisations that represent a threat to a particular business.
----------------------
Contract : an agreement made between the PR consultancy and the client
covering areas of agreed objectives, timing, service levels and price. ----------------------
Copy : the text produced by a consultancy for a press release or article. ----------------------
Journalists also refer to their news stories or features as copy.
----------------------
Corporate Communication : deliberately planned management of the
communications affecting the perception and image of an organisation. ----------------------
Corporate Relations : the use of communication and public relations techniques ----------------------
to build favorable attitudes toward a particular company with competitors,
consumers, the financial community, stockholders, and other publics. ----------------------
Glossary 439
Notes Corporate Social Responsibility : Corporate Social Responsibility is an
important issue affecting the business world today. It is not merely about
---------------------- ‘doing good’ or even being seen to be doing good, but it is about recognizing a
company’s responsibility to its stakeholders and acting on their best interests.
----------------------
Crisis Management : this involves planning and preparing a client for any
---------------------- possible crisis that is likely to affect the organisation, and how it should
communicate to all its stakeholders during that crisis. This involves training
----------------------
relevant spokespeople, co-ordinating crisis recovery activities and ensuring a
---------------------- unified, confident and controlled public image. Crisis management is closely
related to issues management.
----------------------
Cue sheet : briefing notes to help a spokesman prepare for an interview with
---------------------- a journalist. The cues should cover the issues that are likely to arise in the
interview and the approach that should be taken on these issues.
----------------------
Cutting : the piece of written material containing messages about the client
---------------------- or its products or an extract from a paper or magazine regarding a particular
account. Also commonly referred to as ‘clipping’.
----------------------
DAVP : Directorate of Audio Visual Publicity (India)
---------------------- DD : DOORDARSHAN
---------------------- E-PR : the practice of public relations using the internet instead of, or alongside,
traditional media.
----------------------
Editorial : written materials composed to communicate a brand to the various
---------------------- audiences identified by the client and consultancy.
---------------------- Embargo : a warning to the media not to publish a news item until the date
specified on the release (usually appears at top of first page of news release or
---------------------- statement). Journalists usually honour this unofficial agreement.
---------------------- Evaluation : measurement of the agreed objectives set by the consultancy and
client prior to the start of an agreed activity like a media relations campaign.
---------------------- The results of the evaluation are used for future planning and development of
---------------------- the ongoing PR strategy and to benchmark against overall objectives.
Exposure : the extent to which the target audience becomes aware of a person,
---------------------- message, activity, theme or organisation through the efforts of PR. This might
---------------------- be used as part of the evaluation process.
Exclusive : a news story offered by a PR practitioner to a single newspaper
---------------------- title, radio, website, or TV station.
---------------------- Feature article : a broad or in-depth newspaper, magazine, internet, radio or
TV article that discusses, analyses or interprets an issue, subject or trend. A
----------------------
feature generally takes longer to research and produce than a news story.
---------------------- Financial PR : the efforts of a publicly-held company, or one that is on the
way to A public flotation, to communicate with shareholders, security analysts,
----------------------
institutional investors and stock exchanges.
----------------------

Fillers : This is the material used to fill in the empty at the last minute. Some of Notes
the Filler material comes from publicity people.
----------------------
Full Service : a one-stop PR shop which incorporates clients from many different
industry sectors and which offers a range of PR disciplines, and sometimes in- ----------------------
house design and other services.
----------------------
“Golden hour” : The time when you control the story and when other parties
take the story, shape crisis and the public’s perceptions of your company.” ----------------------
Healthcare PR : Specialist PR discipline that communicates about either
----------------------
prescription only (ethical healthcare) or OTC (over-the-counter) products or
issues, to medical groups, interested third parties or specialist media. ----------------------
Integrated campaign : a multidisciplinary approach which uses a number of ----------------------
marketing communications techniques in order to deliver a consistent set of
messages. The aim is to achieve seamless communication with the audience. ----------------------
Internal Communications : Information dissemination and flow between an ----------------------
organisation and its employees. Common tools include newsletters and intranets.
IMPCC : Ministry of Information and Broadcasting Inter-Media Publicity Co- ----------------------
ordination Committees. ----------------------
Image : Image is whatever is in people’s minds, accord to the quality of their
----------------------
information, awareness of experience.
IPR : Institute of Public Relations ----------------------
IRPA : The International Public Relations Association ----------------------
IMC Strategy : Integrated marketing Communications Strategy ----------------------
Ivy Ledbetter Lee : Known as the first Public Relations practitioner
----------------------
Letters to the Editor : The ‘Letters to the Editor’ section of a newspaper is
highly read. It is not used by publicists as much as it could or should be. Always ----------------------
address you letter to ‘Dear Editor’.
----------------------
Lobbying : It’s the highly sensitive domain of ministers and the government.
----------------------
Logo : A graphic or symbol owned by and representing a company or brand.
Marketing Public Relations : Publicity activities intended to encourage ----------------------
product purchase and consumer satisfaction. ----------------------
Media Relations : Communicating with the media by pro-actively speaking
to journalists and sending out relevant articles to the respective publications, ----------------------
responding to media enquiries, and providing appropriate information on behalf ----------------------
of an organisation.
Messages : agreed words or statements that a client wants to convey to third ----------------------
parties, like the media or shareholders for example. ----------------------
News Release/Press Release : a written communication sent to all news media.
----------------------
Also known as a press release.
NFAI : THE NATIONAL FILM ARCHIVE OF INDIA ----------------------
Glossary 441
Notes NGO : Non-Profit Organisation
MPR : Marketing Public Relations
----------------------
Media : channel for the communication of information including newspapers,
---------------------- magazines, radio, TV, mobile phones and the internet.
---------------------- News Conference : the live dissemination of news information by an organisation
to invited media. The format is usually a presentation of information by the
---------------------- organisation followed by a question and answer session.
---------------------- Pitch : when PR consultancies are invited by a prospective client to propose
how they would tackle a given brief.
----------------------
Podcast : Technically, a podcast is a media file that is distributed by subscription
---------------------- (paid or unpaid) over the Internet using syndication feeds, for playback on mobile
devices and personal computers. Like ‘radio’, it can mean both the content and
---------------------- the method of syndication. The latter may also be termed podcasting.
---------------------- Prcampaign Plan : All forms of planned communications, outwards and
inwards, between an organisation and its publics for the purpose of achieving
---------------------- specific objectives, concerning mutual understanding.
---------------------- Press Pack/Kit : a branded pack handed out to the media by an organisation.
It normally contains background material, photographs, illustrations and news
----------------------
releases.
---------------------- Press Release : see News Release.
---------------------- Proposal : document outlining a proposed PR campaign to an existing or
potential client.
----------------------
PRO : Public Relations Officer
---------------------- PCRA : Petroleum Conservation Research Associations
---------------------- Public Relations : That form of communication management that seeks to
make use of publicity and other non-paid forms of promotion and information
----------------------
to influence the feelings, opinions, or beliefs about the company, its products
---------------------- or services, or about the value of the product or service or the activities of the
organisation to buyers, prospects, or other stakeholders.
----------------------
Public Relations : Public Relations is the management function that identifies,
---------------------- establishes and maintains mutually beneficial relationships between an
organisation and the various publics on whom its success or failure depends.
----------------------
Public Relations Manager : this manager oversees plans and programs
---------------------- designed to promote a favorable image for a company or institution among its
various publics such as customers, dealers, investors, government, employees,
---------------------- and the general public. The marketing aspects of the public relations job are
concerned with obtaining publicity for marketing programs (such as for a new
----------------------
product launch). The responsibility for product publicity may reside with the
---------------------- public relations manager or with the product publicity manager. The public
relations manager would normally report to corporate management whereas the
---------------------- product publicity manager would normally report to the marketing manager.

Perceptions : the image people have about a person or organisation or brand Notes
PIB : Press Information Bureau
----------------------
PTI : Press Trust of India
----------------------
PR Transfer Process : It is transferring certain negative emotions to positive.
Promotion Mix : The various communication techniques such as advertising, ----------------------
personal selling, sales promotion, and public relations/product publicity ----------------------
available to a marketer that are combined to achieve specific goals.
Promotional Campaign : The combination of various advertising, public ----------------------
relations, sales promotion, and personal selling activities used by the marketer ----------------------
over a period of time to achieve predetermined goals.
Publics : PR is concerned with total communications of all sections of an ----------------------
organisation with all the people with whom it has or should have communications. ----------------------
Public Affairs : the process of communicating an organisation’s point of view
----------------------
on issues or causes to political audiences like MPs and lobbying groups.
Regulatory News Service (RNS) - RNS is an online application which allows ----------------------
listed companies or their Advisers to submit announcements to investors and
----------------------
intermediariaries through the London Stock Exchange.
RLSC : Regional Language Satellite Channels ----------------------
Search engines : these allow you to search the contents of the world wide web. ----------------------
When you key in a search term, you receive a list of items that match your
query. ----------------------
Sector/trade press : the media relevant to specific audiences. This includes ----------------------
special interest magazines such as hi-fi magazines for hi-fi enthusiasts. Trade
journals are read for business and professional reasons, for example Electronics ----------------------
Week is read by electronics engineers. ----------------------
Spin : ‘Spin’ can be defined as the art of making things appear in a more
----------------------
favorable light than its inherent quality would merit, but with an important
caveat: there should be no resort to uttering lies. ----------------------
Spin Doctor : Skilled practitioners of spin are sometimes called “spin doctors”,
----------------------
though probably not to their faces unless it is said facetiously.
Socrates : Greek philosopher ----------------------
Spokesperson : A person who is allowed to speak to the press or to the public; ----------------------
certain people are selected to be the ‘spokesperson’
----------------------
Teaser: a promotion that is intended to arouse interest in the main campaign
which follows. It is usually used in media relations. ----------------------
The Aeneid : Ancient book by Virgil ----------------------
Transcript : written outline of a radio or TV broadcast about a client.
----------------------
UNI : United News of India
----------------------
Glossary 443
Notes Vertical media : media relating to different market sectors for a product or
service. For example, you can promote a barcode printer in the printing media,
---------------------- packaging media and food retailing media.
---------------------- Viral campaign : a communications campaign which is designed to exploit the
potential of the internet to spread messages rapidly. The audience is encouraged
---------------------- to pass a message on to all their email contacts.
---------------------- VNRs : Video News Reports
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References Notes
 Advertising Management – Philip Kotler ----------------------
----------------------
 Advertising Procedure – Klepper’s
----------------------
 Advertising Management – U C Mathur
----------------------
 Strategic Marketing Communications – P R Smith & Taylor
----------------------
 International Advertising – John Jones, SAGE publications
----------------------
 Successful Brands – Pran Chaudhury
----------------------
 Advertising Management – Aaker and Mayers
----------------------
 PR and Media Relations – Dr G C Banik, Jaico Publishing, 2005
----------------------
 Essentials of Public Relations – Dennis L Wilcox ----------------------
 Effective Public Relations – Scott M Cutlip ----------------------
 Planned Press and Public Relations – Frank Jefkins ----------------------
 Public Relations in Action – Robert Reilly ----------------------
 Practical Public Relations – Sam Black and Melvin Sharpe ----------------------
 Effective Public Relations – Scott M Cutlip ----------------------
----------------------
 Public Relations: Profession and Practice – Craig Aronoff and Otis Baskins
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References 445
Notes
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Notes
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References 447
Notes
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ADVERTISING AND PUBLIC

(FOR PRIVATE CIRCULATION ONLY)

COURSE DESIGN AND REVIEW COMMITTEE

Published by Symbiosis Centre for Distance Learning (SCDL), Pune

Copyright © 2022 Symbiosis Open Education Society

Unit No. TITLE Page No.

---------------------- • Differentiate between various types of advertisement.

---------------------- 1.1 INTRODUCTION

---------------------- Customers are more likely to be persuaded to buy a product/service that

2 Advertising and Public Relations

4 Advertising and Public Relations

5. Early success ----------------------

6 Advertising and Public Relations

Non-personal means that it is not on a person-to-person basis. ----------------------

---------------------- 7) “Advertising is the life of trade.”

---------------------- Check your Progress 1

8 Advertising and Public Relations

The main benefit of advertisement is that it imparts information to ----------------------

---------------------- Check your Progress 2

---------------------- 2. Generally advertising is used in new products launches.

---------------------- The principal criticisms against advertising are many.

10 Advertising and Public Relations

5. Advertising causes costly competition and higher prices ----------------------

12 Advertising and Public Relations

1.8 COMMUNICATION IN ADVERTISING ----------------------

To communicate, persuade, influence and lead to some action is what ----------------------

14 Advertising and Public Relations

16 Advertising and Public Relations

---------------------- d. Convenience stores:

18 Advertising and Public Relations

Within the context of the 4 Ps of marketing, we have Product. ----------------------

a) Pioneering or Informative advertising: Here an attempt is made to stimulate ----------------------

---------------------- 1. It contributes a smaller percentage, as compared to consumer advertising.

20 Advertising and Public Relations

---------------------- c) To make its achievements known.

---------------------- There should be a thorough knowledge of the target market, especially if

---------------------- Financial Advertising

22 Advertising and Public Relations

24 Advertising and Public Relations

26 Advertising and Public Relations

---------------------- 1.10 DIGITAL ADVERTISING

---------------------- 1. Paid Search Advertising

28 Advertising and Public Relations

30 Advertising and Public Relations

32 Advertising and Public Relations

Banner and Display Ads ----------------------

34 Advertising and Public Relations

●● Account Executive (AE): 1. (advertising definition) The person in an ----------------------

●● Advertising: The placement of announcements and persuasive messages ----------------------

---------------------- 6. What is the difference between advertising, public relations and

---------------------- Answers to Check your Progress

36 Advertising and Public Relations

3. Batra, Rajiv. Myers, John G; Aaker, David A. Advertising Management. ----------------------

38 Advertising and Public Relations

Objectives of Advertising, Planning and Decision Making 39

---------------------- Advertising is an all-pervasive facet of most growing communities.

40 Advertising and Public Relations

Objectives of Advertising, Planning and Decision Making 41

---------------------- What are Advertising Objectives?

42 Advertising and Public Relations

 What the product is ----------------------

Objectives of Advertising, Planning and Decision Making 43

---------------------- Sometimes societal advertising is used to educate people on the usefulness

44 Advertising and Public Relations

The main benefit of advertisement is that it imparts information to ----------------------

3. Batra, Rajiv. Myers, John G; Aaker, David A. Advertising Management. ----------------------

---------------------- 2. Batra, Rajiv. Myers, John G; Aaker, David A. Advertising Management.