Introduction to

Advertising
 Promotion Mix
• The specific blend of
promotion tools that
the company uses to
persuasively
communicate
customer value an
build customer
relationships.

1-2
Advertisement can be defined as the “paid form of non-personal presentation and
promotion of idea, goods or services by an identified sponsor”.
• It is an impersonal presentation where a standard or common message
regarding the merits, price and availability of product or service is given by the
producer or marketer. The advertisement builds pull effect as advertising tries
to pull the product by directly appealing to customer to buy it.
Sales Promotion
• Sales promotion refers to short term use of incentives or other promotional
activities that stimulate the customer to buy the product. Sales promotion
techniques are very useful because they bring:
• (a) Short and immediate effect on sale.
• (b) Stock clearance is possible with sales promotion.
• (c) Sales promotion techniques induce customers as well as distribution
channels.
• (d) Sales promotion techniques help to win over the competitor

1-3
 Personal Selling:
• Personal selling means selling personally. This involves face to face interaction
between seller and buyer for the purpose of sale.
• The personal selling does not mean getting the prospects to desire what seller
wants but the concept of personal selling is also based on customer satisfaction.
Public Relations
• a public relations means maintaining public relations with public. By maintaining
public relations, companies create goodwill.
• Public relations evaluate public attitudes; identify the policies and procedures of an
organisation with the public interest to earn public understanding and acceptance.

1-4
Direct Marketing
• Direct connections with carefully targeted individual consumes to both
obtain an immediate response and cultivate lasting customer relationships.

1-5
Push Vs Pull

1-6
 Push Strategy
• A push promotional strategy involves taking the product
directly to the customer via whatever means, ensuring the
customer is aware of your brand at the point of purchase.
• "Taking the product to the customer"
Examples of push tactics
• Trade show promotions to encourage retailer demand
• Direct selling to customers in showrooms or face to face
• Negotiation with retailers to stock your product
• Efficient supply chain allowing retailers an efficient supply
• Packaging design to encourage purchase
• Point of sale displays
1-7
• The term 'push strategy' describes the work a manufacturer of a product
needs to perform to get the product to the customer. This may involve
setting up distribution channels and persuading middle men and retailers to
stock your product.
• The push technique can work particularly well for lower value items such
as fast moving consumer goods (FMCGs), when customers are standing at
the shelf ready to drop an item into their baskets and are ready to make
their decision on the spot.
• This term now broadly encompasses most direct promotional techniques
such as encouraging retailers to stock your product, designing point of sale
materials or even selling face to face. New businesses often adopt a push
strategy for their products in order to generate exposure and a retail
channel. Once your brand has been established, this can be integrated with
a pull strategy.

1-8
 Pull Strategy
• A pull strategy involves motivating customers
to seek out your brand in an active process.
• "Getting the customer to come to you"
Examples of pull tactics
• Advertising and mass media promotion
• Word of mouth referrals
• Customer relationship management
• Sales promotions and discounts
1-9
• 'Pull strategy' refers to the customer actively seeking
out your product and retailers placing orders for stock
due to direct consumer demand.
• A pull strategy requires a highly visible brand which
can be developed through mass media advertising or
similar tactics. If customers want a product, the
retailers will stock it - supply and demand in its
purest form, and this is the basis of a pull strategy.
• Create the demand, and the supply channels will
almost look after themselves.
1-10
 Defining Advertising
• Advertising is paid • Five basic
persuasive components:
communication 1. Paid communication
• Uses nonpersonal mass 2. Sponsor is identified
media to reach broad 3. Tries to persuade or
influence
audiences to connect an
identified sponsor with 4. Reaches a large
audience
a target audience
5. Conveyed through
impersonal mass media

1-11
Paid Form:
• The sponsor has to pay for advertising he has to bear a cost to
communicate with customers.
Impersonality:
• There is no face to face contact between customers and
advertiser. It creates a monologue and not a dialogue.
Identified Sponsor:
• Advertisement is given by an identified company or firm or
individual.

1-12
 Features of Advertising and
Advantages/Merits of Advertisement:
Reach:
• Advertising can reach a large market. As through various media of advertising
there is benefit of mass reach for example, any message given on All India Radio
or TV can reach in different corners of the country wherever TV and Radio
network is available.
Choice:
• There is wide variety of media available for advertising for video, audio, visual
audio, print media etc. Under each category large variety is available for example,
in print media we can select from magazines, newspaper, banner etc. This variety
or choice helps the marketer to select the media, keeping in mind the target
customer.
Legitimacy:
• In advertisement the messages regarding the product or service are given publicly
to customers so there is always a proof for it and customers believe that publicly
the company will not give false information of the product. The customer feels
comfortable to buy a product which is widely advertised.
1-13
Expressiveness:
• Advertising provides enough opportunities to marketers to dramatize the
message with the help of drawings, colours, pictures, music, dance
etc. They can easily express the use of product through various techniques,
and can add multimedia effect also.
Economy:
• It is always felt that advertising increases the cost of product or service but
advertising is considered economical as compared to other promotional
techniques because it reaches masses and if we calculate cost per customer
it is very low or nominal.
Enhancing Customer Satisfaction and Confidence:
• Customer feel more assured about quality and feel more comfortable if
sponsors claim these benefits in advertising.

1-14
 Disadvantages of Advertising:
It is an Impersonal Communication/Less Forceful:
• In advertising there is no direct communication between the customer and
marketer. The marketer assumes that the message is communicated but the
audience or customers do not pay any attention to impersonal messages conveyed
through advertising. The response of customer cannot be known in advertising.
Advertising is less effective:
• In advertising there is only one way communication i. e., communication from
seller only, but two way communication is always more effective as in two way
communication the customer gets chance to clarify his or her queries. Sometimes
customers have many doubts regarding the use of product, these doubts can be
clarified only when there is two way communication.
Difficulty in Media Choice:
• In advertising various media are available. Each media have its own advantages
and disadvantages. So the effectiveness of advertisement depends to a great extent
on the right choice of media. When choice of media is faulty or wrong no matter
how good the advertisement is it will not reach the target customer.
1-15
Inflexibility:
• It is very difficult to change advertisement as
companies use standardized messages which cannot
be changed according to the need of customers.
Lack of Feedback:
• The evaluation of effectiveness of advertisement is
very difficult as there is no immediate and accurate
feedback given by the customers.

1-16
1-17
• Setting Advertising Objectives: A specific
communication task to be accomplished with a
specific target audience during a specific
period of time. – Inform, persuade, remind?

1-18
OBJECTIVES OF ADVERTISING
• Informative advertising Promotion that seeks to develop
initial demand for a good, service, organization, person,
place, idea, or cause. It is used heavily when
introducing a new product category. Suggesting new uses
for a product, describing available services and support.
INTRODUCTION
• Persuasive advertising Promotion that attempts to
increase demand for an existing good, service,
organization, person, place, idea, or cause. It becomes
important when competition increases. Persuading
customers to buy now, to receive sales call, convincing
customers to tell others about the brand. GROWTH
• Reminder advertising Advertising that reinforces
previous promotional activity by keeping the name of a
good, service, organization, person, place, idea, or
cause before the public. Helps in maintaining customer
relationships. MATURITY
• Advertisers coordinate advertising objectives with the
1-19
product’s stage in the product life cycle.
• Setting the Advertisement Budget :A brand’s
adverting budget usually depends on its stage of PLC.
New products need large advertising budgets to build
awareness, mature products usually require lower
amount of adverting budget.
• Developing Advertising Strategy : The strategy by
which the company accomplishes its advertising
objectives. It consists of two major elements: creating
advertising messages and selecting advertising media.

1-20
A) Creating Advertising Message: Advertising can succeed only if
advertisements gain attention and communicate well.
Message Strategy : What general message will be communicated to
consumers? – Creative – The compelling “Big Idea” that will bring the
advertising message strategy to life in a distinctive and memorable way.
Execution Style: Approach, style, tone, words, and format used for executing
an advertising message. – Fantasy – Axe deo, Mood or image-
Singapore Airlines- soft lightning and refine air attendants Musical :
Setting the Advertisement Budget Personality symbol- cartoon character
that represents product- Britania tiger, Mr clean, Scientific evidence:
Colgate, Testimonial,- Amitabh Bachan- Cadbury chocolates, Slice of
life- normal person using product in normal setting- kellogs- healthy
breakfast

1-21
• B) Selecting Advertising Media-
• 1) Deciding on reach, Frequency, Impact
2) Choosing among major media types
3) Selecting Specific Media vehicles.

1-22
• Reach and frequency needed to achieve advertising objective.
• Reach: Measure of percentage of people in the target market
who are exposed to the ad campaign. 70% target audience?
• Frequency: Measure of how many times the average person
in the target market is exposed to the message. Frequency of
3?
• Impact: Qualitative value of a message exposure through a
given medium. TV has more impact than radio, High TRP?

1-23
 Selecting Media Choices

Direct Mail
Magazines
Newspapers
TV
Internet
Outdoor
Radio
1-24
Selecting the Right Advertising Media

Cost
Cost per
per The
The cost
cost of
of reaching
reaching aa thousand
thousand
thousand
thousand people
people or
or households
households at at least
least once
once

The
The number
number of
of different
different people
Reach
Reach exposed to an advertisement
people
exposed to an advertisement at least
at least once
once

The
The number
number of
of times
times an
an individual
individual is
is exposed
exposed to
to aa
Frequency
Frequency message
message

Audience
Audience The
The ability
ability of
of an
an advertising
advertising medium
medium to
to reach
reach aa
Selectivity
Selectivity precisely
precisely defined
defined market.
market.
1-25
 Newspapers
Advantages
Advantages Disadvantages
Disadvantages

 Year-round readership  Limited demographic

selectivity
 Geographic selectivity
 Little color
 Immediacy
 May be expensive
 High individual market
coverage  Low pass-along rate
 Short lead time  Clutter
 Mass market medium
1-26
 Magazines
Advantages
Advantages Disadvantages
Disadvantages

 Good reproduction  Higher cost per contact

 Demographic  Long-term advertiser

selectivity commitments

 Regional/local  Slow audience build-up

selectivity  Limited demonstration
 Long advertising life capabilities

 High pass-along rate  Lack of urgency

 Long lead time
1-27
 Radio
Advantages
Advantages Disadvantages
Disadvantages
 Selectivity and  No visual treatment
audience segmentation
 Short advertising life
 Immediate and portable
 High frequency to
 Geographic flexibility generate retention
 Entertainment  Commercial clutter
carryover
 Background
 Short-term ad distractions
commitments

1-28
 Television
Advantages
Advantages Disadvantages
Disadvantages

 Wide, diverse audience  Short life of message

 Low cost per thousand  Expensive with high
campaign cost
 Creative and
demonstrative  Little demographic
selectivity with network
 Immediacy of messages
 Long-term advertiser
 Demographic selectivity commitments
with cable
 Long lead times
 Clutter

1-29
 Outdoor Media
Advantages
Advantages Disadvantages
Disadvantages

 High exposure  Short message

frequency
 Lack of demographic
 Moderate cost selectivity
 Flexibility  High “noise” level
 Geographic selectivity
 Broad, diverse market

1-30
 Internet
Advantages
Advantages Disadvantages
Disadvantages

 Fast growing  Difficult to measure ad

effectiveness and ROI
 Ability to reach narrow
target audience  Ad exposure relies on
“click through”
 Short lead time
 Not all consumers
 Moderate cost have access to internet

1-31
 Scheduling the Promotion

Continuous Advertising
Advertising is
is run
run steadily
steadily throughout
throughout the
the
Continuous period.
period.
Media
Media Schedule
Schedule Yellow
Yellow Pages
Pages

Flighted Advertising
Advertising is
is run
run heavily
heavily every
every Thursday
Thursday or
or
Flighted month
month end.
end.
Media
Media Schedule
Schedule Movies
Movies

Pulsing Advertising
Advertising combines
combines continuous
continuous scheduling
scheduling
Pulsing with
with flighted.
flighted.
Media
Media Schedule
Schedule

Seasonal
Seasonal Advertising
Advertising is
is run
run only
only when
when the
the product
product is
is
likely
likely to
to be
be used.
Media
Media Schedule
Schedule used.
1-32
 Media Vehicles
• Media planner must choose the best media
vehicle- TV- Star TV, ndtv?, Magazine-
Bussinessworld, Femina?

1-33
 Evaluating Advertising
Effectiveness
• The net return on advertising investment
divided by the costs of the advertsing
investments.
• Measuring Communication effect?
• Sales and profit effects?

1-34
 Significance of Advertising
• Benefits to Manufacturers & Traders
• It helps in introducing new products. A business enterprise can introduce
itself and its products to the public through advertising.
• It can create new taste among the public & stimulate them to purchase the
new product through effective advertisement.
• It helps create steady demand of the products. Eg. Cold drink is advertised
in summers.
• It helps in meeting the forces of competition in the market-place. If a
product is not advertised then competitors may snatch away the market
share.
• It also helps in increasing the goodwill of a firm by promising improved
quality to the customers.

1-35
• Benefits to Customers
• It helps the customers to know about the existence of various
products and their prices. They can choose from the various
brands to satisfy their wants.
• It educates the people about the new products and their diverse
uses.
• It increases the utility of existing products for many people
adds to the amount of satisfaction which they are already
enjoying.
• It induces the manufacturers to improve the quality of their
product through research and development. This ensures
supply of the products of better quality to the consumers.
1-36
• Benefits to Society
• It provides employment to persons engaged in writing,
designing and issuing advertisements. Employment is further
generated to meet the increased demand.
• It promotes standard of living of the people by increasing the
variety and quality in consumption activities by the
manufacturers.
• It educates the people about the various uses of different
products and this increase their knowledge.
• It also sustains the press and other media. It provides an
important source of income to the press, radio and television
network.
1-37
• Is advertising a SOCIAL WASTE????

1-38
• It multiplies the needs – induces to buy products
which are not required
• IT makes the product more costly- cost of ad is added
on the price of the product
• It creates brand monopoly- those who have more
money advertise more.
• Every advertisement is not creative-
• Undermine moral values- indecent language, photos
etc
• Corrupt the minds of youngsters.
1-39
 Factors to consider before choosing
an advertising media
• Nature of the Product
Products are classified into two broad categories, consumer goods and
industrial goods. Consumer goods can be advertised in the newspapers,
magazines, radio and TV & through outdoor displays on the other hand
industrial goods can be advertised through specialized trade, technical and
professional journals etc.
• Nature of Market
Nature of the market can be determined with the help of various factors
such as geographical region, size of population and purchasing power of
population. The market can be local or national. Films are more suitable
for local products whereas newspapers are more suitable for advertising
products which can be sold throughout the country.

1-40
• Objectives of advertising
The objectives may be introduction of new product, to increase demand of an
existing product, or to avoid competition by the rivals. If advertising is not to be
carried on a mass scale to have big impact in the short and long run, a combination
of various advertising media may be chosen.
• Circulation of Media
If the media have greater circulation, the message of the advertiser will reach a
larger number of people. It may be mentioned that newspapers have the widest
circulation, but other media have limited and selective distribution.
• Financial Considerations
The cost of media is an important consideration and it should be considered in relation
to a) the amount of funds available – Here the amount of funds available may
decide the choice of a medium, and b) the circulation of the media- here the
advertiser should try to develop some relationship between the cost of the medium
and its circulation. The cost-benefit analysis will enable the advertiser to take right
decision in regard to selection of the media.
1-41
• Type of Audience
If the message is to be conveyed to illiterate or less literate people then, radio,
television and cinema advertisement will serve the purpose. Newspapers,
magazines, displays and direct mail is more suitable for literate people.
• Life of advertisement
Outdoor displays, magazines and direct mail have sufficiently longer life but
the life of newspaper, radio and TV ads is very short unless they are
repeated regularly. Therefore, the advertiser should also take into
consideration the duration for which he wants to create the impression in
the minds of the prospective customers.
• Media used by competitors
The choice of media used by competitor also effects the choice. If a product is
being advertised in a newspaper, the products of its substitutes will find it
better to advertise them in the same newspaper.
1-42
• But big firms don't depend on a single medium
of advertisement. They choose a variety of
media in order to popularize their products and
to sell on a massive scale.

1-43
1-44
1-45
1-46
1-47
Surf Excel Liquid
Surf Excel Liquid Another ad from Surf showing a little tot rejoicing
in the time honored childhood pastime of getting filthy. Instead of a
spanking and a grounding, the kid is greeted by an indulgent mom
and a bucketful of detergent for his mucky clothing. The panel
approves this progressive approach to parenting.
Cadbury Dairy Milk Silk
Continuing with chocolate themed hedonism, the new ad for Cadbury
Dairy Milk has a couple of strangers in the night exchanging glances
while stuck in bumper to bumper traffic. Even if boy doesn't actually
meet girl, they bond over chocolate gunk stained faces.

1-48