Advertising & Brand Management

Advertising Definition
 Advertising is any paid form of non-personal presentation

& promotion of ideas, goods & services by an identified sponsor. – (American Marketing Association)  Advertising is controlled, identifiable information & persuasion by means of mass communications media.(John S. Wright, Willis L. Winter & Sherilyn K. Zeigler)  Advertising is a message paid for by an identified sponsor & delivered through some medium of mass communication. It is persuasive communication; it is not neutral; it is not unbiased. It says “ I am going to sell you a product or an idea.” – (J. Thomas Russell & W. Roland Lane)

 It is paid form & commercial in nature.
 It is non- personal presentation.  It is aimed at promoting & selling.  It has an identified sponsor.  It informs the potential consumer.

Social Functions
 Inform about availability of different products & services.
 Inform about use of different products & services.  Influence people way of thinking, buying behavior &


 Plays a great role in the economic growth. .  Enhances demand of products & services. distribution & employment.Economic Functions  Helps in creation of production.

 Generates employment. To consumers:•Creates awareness. •Ensures quality of product or services received.  Enhance knowledge . To society: Increases standard of living.  Assist dealers.Benefits To Manufacturer: Increases sales.  Lessens the burden. •Assist in purchase decision. To salesmen: Prepares a platform for sales.  Reduces cost.  Builds brand image.  Transforms culture .  Helps introducing new products & organizations.

differentiation & positioning  Contributes to revenue & profit generation .Role of advertising in marketing process  Determining the marketing mix  Developing & managing the brand  Achieving effective market segmentation.

Types of advertising ADVERTISING TO CONSUMERS .

product ads .Classified ads End.

Display advertising National advertising Retail(local) advertising .

Co-operative ads Direct response ads .


Trade ads Industrial ads .

Professional ads Corporate or institutional ads .

PRODUCT ADVERTISING .Types of advertising NON.

Idea advertising Service advertising .

Political Advertising Surrogate Advertising .

Primary demand ads Selective demand ads .

Economic aspects of advertising  Effects the value of products or services  Effects prices of products or services  Effects consumer demand & choice  Effects the competitive environment .

Social Aspects of Advertising  Advertising educates consumers  Pro: Advertising informs  Con: Advertising is superficial  Advertising improves living standards  Pro: Ads lower the costs of products  Con: Ads are wasteful and help only some .

Critics of advertising feel that advertising is superficial because many ads carry little actual product information. Do you think advertising is superficial? .

 Pro: Ads reflect society’s priorities.  Pro: Ads address a wide variety of basic human needs.  Con: Ads promote materialism. .Advertising Affects Happiness and Well-Being  Con: Ads create needs.

Critics feel advertising promotes materialism .

Advertising: Demeaning and Deceitful. or Liberating and Artful?  Con: Ads perpetuate stereotypes  Pro: Advertisers are more sensitive now  Con: Ads are often offensive  Pro: Ads are a source of liberation  Con: Ads deceive via subliminal stimulation  Pro: Advertising is art .

SEC regulates advertising of securities & the disclosure of information in annual reports . Federal Communications Commission.FCC prohibits obscenity. Prohibits false labeling & packaging. Advertising Review Council – ARC monitors all advertising. Securities and Exchange Commision. drug. is an     independent agency of us Government with its main objective to keep business free and fair. telegraph & television. poster and demos. established in 1915. packaging. promotional & marketing materials for print ads. fraud & lotteries on radio . internet ads. It has the authority to deny or revoke broadcast licence.Legal aspects of advertising  Federal Trade Commission – FTC. It regulates deceptive advertising & controls advertising process Food & Drug Administration – FDA regulates the advertising of food. radio & television spot. online stores. cosmetic & medical products. telephone.

Other important regulatory bodies are:Advertising Standards Authority –ASA National Advertising Division – NAD National Advertising Review Board – NARB Advertising Standard Council of India – ASCI Information & Broad casting Ministry Advertising Agencies Association of India (AAAI) .Legal aspects of advertising  Bureau of Alcohol. Tobacco. It reviews & evaluates claims for truth & accuracy which are directed towards children. Children’s Advertising Review Unit – CARU resolves issues regarding advertising to children. Firearms & Explosives – ATF is responsible         for putting warning labels on alcoholic beverage advertising & banning active athletes as celebrities in beer ads.

1957  Trade Marks Act. 1999  The Pharmacy Act. 1986  Broadcasting Services Regulation Bill.Legal Acts The Indian Penal Code (IPC). Feeding Bottles & Infant Foods (Regulation of production. 1950  The Drugs & Magic Remedies (objectionable Advertisement) Act. 1950  The prevention of Insults to the National Honor Act. 1860  Drugs & Cosmetics Act. 1984  The Consumer Protection Act. 1971  The Prize Competitions Act. 1940  Drugs Control Act. supply & distribution) Act. 2003 Legal aspects of advertising . Production. 1948  The Monopolies & restrictive Trade Practices (MRTP) Act. 1992  Indian Copyright Act. 1978  The Infant Milk Substitutes. 1950  The Indecent Representation Of women (Prohibition) Act. 1954  The young person (harmful publication) Act. Supply & Distribution) Act. 1995  Cigarettes & other Tobacco Products (Prohibition of Advertisement & Regulation of Trade & Commerce. 1955  The Prize Chits & Money Circulation Scheme (banning) Act. 2006  The Cable Television Networks (Regulation) Act.

2. 3.Ethical aspects of advertising      1. it must honor the norms of social behavior. 4. To ensure that advertisements observe fairness in competition so that consumers need to be informed on choices in the market place and the canons of generally accepted competitive behavior in business are both served.has the set guidelines To ensure the truthfulness and honesty of representations and claims made by advertisements and to safeguard against misleading advertising. To ensure that advertisements are not offensive to generally accepted standards of public decency. . To safeguard against indiscriminate use of advertising for promotion of products which are regarded as hazardous to society or to individuals to a degree or of a type which is unacceptable to society in large. Should not mislead the consumer What it promises must be there in the performance of products Ad should not be indecent and obscene As advertising is also a social process. and should not offend our moral sense ASCI (Advertising Standards Council of India) regulates the advertising in India .

Ethical aspects of advertising Advertising is a highly visible business activity and any lapse in ethical standards can often be risky for the company.g. gambling. religious & Racial issues •Controversial products (e. alcohol. Some of the common examples of ethical issues in advertising are give below: •Vulgarity/Obscenity used to gain consumers’ attention •Misleading information and deception • Puffery •Stereotypes •Cultural. tobacco etc) •Comparative advertising •Freedom of speech in advertising •Surrogate advertising •Advertising to children •Matters of questionable taste •Subliminal advertising .

information processing. opinions & others feedback .The communication process of advertising Noise : External •Public opinion •Marketing strategy •Competition •Other noise Message : Encoding strategy & tactics ( by agency) Media mix: channels (one way & two way) Receiver: message reception & response: •Perception •Learning •Persuasion •action Source: Advertiser (objectives) Noise: internal Perceived needs. attitudes.

and Action.the elaborate advertisement where Mukesh Ambani spoke about the new project being introduced on his father’s 70th birthday.Dhirubhai Ambani Pioneer offers induced people to go for the product.     . 1 lakh. as a representative of the company image and also spoke about introducing a new technology – CDMA. Desire. Attention. It shows a set of stair-step stages which describe the process leading a potential customer to purchase. and discount coupons worth Rs. Action. easy payment schemes.was generated as the company spokesperson featured in the ad. 40paise STD calls. Interest. Desire. Illustration Reliance India Mobile campaign can be used to explain this model better. Awareness. Interest.Advertising response hierarchy model AIDA model was presented by Elmo Lewis to explain how personal selling works. The stages. form a linear hierarchy.was created with various offers like free SMS.

Bernard Berelson. and Hazel Gaudet published The People's Choice. The study suggested that communication from the mass media first reaches "opinion leaders" who filter the information they gather to their associates. a paper analyzing the voters decisionmaking processes during a 1940 presidential election campaign." People tend to be much more affected in their decision making process by face to face encounters with influential peers than by the mass media (Lazarsfeld.Two step flow of communication Development of the Two-step Flow of Communication theory  It was first identified in a field somewhat removed from communications-sociology.  Lazarsfeld et al suggested that "ideas often flow from radio and print to the opinion leaders and from them to the less active sections of the population. Menzel. 1963) .  In 1948.  The study revealed evidence suggesting that the flow of mass communication is less direct than previously supposed. Paul Lazarsfeld. with whom they are influential.


economical. . 1949). Individuals who act as opinion leaders on one issue.  A later study directed by Lazarsfeld and Katz further investigated the characteristics of opinion leaders. and educational levels within their community. but very similar in these areas to those with whom they had influence.The Opinion Leaders  A study by Robert Merton revealed that opinion leadership is not a general characteristic of a person. but rather limited to specific issues. This study confirmed the earlier assertions that personal influence seems more important in decision making than media. may not be considered influentials in regard to other issues (Merton.  The opinion leaders seem evenly distributed among the social.

They are generally gregarious. Finally. sociable individuals. Studies by Glock and Nicosia determined that opinion leaders act "as a source of social pressure toward a particular choice and as a source of social support to reinforce that choice once it has been made (1966). They achieve these positions based on their knowledge of situations outside their circles (1952). they had/have contact with relevant information supplied from outside their immediate circle. . The opinion leaders receive a disproportionate amount of their external information from media appropriate to their niche.Characteristic of opinion leaders  the opinion leaders were identified as having the strongest interest in       their particular niche.“ Charles Glock explained that opinion leaders often develop leadership positions in their social circles. They hold positions within their community affording them special competence in their particular niches.

They determined there were a number of opinion leaders spread throughout the socio-economic groups.Criticisms Although the theory of indirect flow of information from media to the target was quickly adopted. The faults lie in the manner with which the researchers addressed the flow of influences. Berelson. The panel method by which they attempted to better understand the influences reaching a voter was unfaulted. the original study performed by Lazarsfeld. these leaders were not directly linked to particular groups within the socio-economic levels. For these reasons. . It had a few faults. and Gaudet was not. however.  The first problem concerning the findings of the study were that the data had to be collected in a random sample. but subjects in a random sample can only speak for themselves.  Lazarsfeld and his associates in the 1940 election study were unable to determine the specific flow of influence. each person could only say whether or not they considered his/herself an advice giver.

Trust Personal contact carries more trust than media. In this situation. there is always opportunity to counter any resistance.Praises and Support     Lazarsfeld and his associates detailed five characteristics of personal contact that give their theory more validity: Non-purposiveness/casualness One must have a reason for tuning into a political speech on television. Persuasion without conviction The formal media is forced to persuade or change opinions. sometimes friendly insistence can cause action without affecting any comprehension of the issues. In personal communication. As people interact. Flexibility to counter resistance In a conversation. they are better able through observation of body language and vocal cues to judge the honesty of the person in the discussion. . they are more likely open to the conversation. a one sided form of communication. but political conversations can just "pop-up". This is not so in media. the people are less likely to have their defenses up in preparation.

BACKGROUNDTHE PROPONENT   Wilbur Schramm (1907-1987)  The founder of the academic field of communication  First Professor of communication .

 Envisioned the process as a two-way circular communication between the sender and receiver  Schramm incorporates the study of human behavior in the communication process .  It focuses on the Fields of Experience  Focuses on role of Exchangeability  Feed back loops play a important role in this model  Emphasized the process of encoding and decoding the message.Schramm’s Communication Model  It is based on Shannon & Weaver’s prior mathematical model.

Elements of the Schramn’s model  Encoding  Decoding  Interpreting  Message  Source  Destination  Signal  Feedback .

 characteristics of messages that impact communication between two individuals are: intonations and pitch patterns. . accents. Meanings can be denotative or connotative.  Follows the process of interpreting the message.) noise. age. Connotative meanings are emotional or evaluative and based on personal experience. This process is influenced by the presence of both physical (phone.  The successful transmission of a message depends on the acceptance of the message. attitudes. Denotative meanings are common or dictionary meanings. and gestures.) and semantic (distractions. TV. Schramn’s  Feedback “the return process in which the originator of a message also acts as the recipient of a message resulting directly from the first message” Two Sources of Feedback . quality of voice.The message returning to the originator of the first message from the recipient (originated with Ferdinand de Saussure – 1915) People are constantly monitoring their personal communication behavior and evaluating it – what is sometimes called “self-monitoring”. etc. etc. sirens.Suggestion of Dr. facial expressions.  message can be complicated by different meanings learned by different people.

Diagram of Schramm's feedback loop .

Diagram of Schramm's field of experience .

STRENGTHS  The model provides an additional perspective which is the ‘field of experience’  Included feedback. context and culture  Adapted by other model designers .

Why is this important?  Applying Communication to Educational Communication  Being able to identify noise  Helping Create Overlapping fields of experiences  Communication has a great impact on society .

.Schramm’s model for everyday use          Gaining attention (reception) Informing learners of the objective (expectancy) Stimulating recall of prior learning (retrieval) Presenting the stimulus (selective perception) Providing learning guidance (semantic encoding) Eliciting performance (responding) Providing feedback (reinforcement) Assessing performance (retrieval) Enhancing retention and transfer (generalization).

Individual Interpretations: This theory gives a basic explanation for the way humans react when they act outside of their beliefs. or other beliefs they have. This theory of Cognitive Dissonance says that human beings often have conflicting beliefs with actions they take. . so we either cease the action or believe that we are right. We cannot carryout actions that we believe are wrong. Cognitive Dissonance is when you have two good choices and you make your decision then you find yourself unsure or in doubt about the choice you made.Cognitive Dissonance Theory Leon Festinger in 1962 gave the theory of Cognitive Dissonance. This dissonance creates a tension and tension reduction is automatically sought by changing our evaluations by some degree. You might have to downplay the other choice in order to reassure yourself.

When marketers want to persuade their audience to buy a product or perform a subject they must convince them that this is a good action and if their beliefs do not match this action.  Use: . It is put in the most general.  Ideas and Implications: It implies that when there is tension we change a belief or an action. It implies that we experience more dissonance when the issue is more important. Critique: This theory explains what dissonance is and how it is created along with predicting what will happen when one experiences it. they must persuade them to change their beliefs. This theory could be used in the persuasive context in a variety of ways. simple terms possible and could be applied to any thought or action. The theory of cognitive dissonance could be proved false through testing and invites new research on specific aspects of the concept. when we put off a decision and the decision is permanent.

The consumer may then see a competitor’s advertisement that seems to prove conclusively that this competitive product is better. If the buyer is unable to justify the purchase. . Even though advertisers want to create dissonance for nonusers of their product. Marketing (buyer’s remorse): theory that a consumer may use a particular product because he or she believes the advertising for that product. The consumer must now relieve the uncomfortable feeling that the dissonance brings about and will often do so by switching products. This creates dissonance. he or she will also be less likely to purchase that brand again. A consumer who is experiencing cognitive dissonance after his or her purchase may attempt to return the product or may seek positive information about it to justify the choice. Cognitive dissonance most often occurs after the purchase of an expensive item such as an automobile. which claims that the product is the most effective of its kind in the job that it does. they do not want to create it for those who do use their product.

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