SYBMS – III – ADVERTISING NOTES – ELECTIVE MARKETING

Academic Year 2022-2023

Elective Courses (EC)
Group B. Marketing Electives
3. Advertising

Modules at a Glance

Sr. No. of
Modules
No. Lectures
1 Introduction to Advertising 15

2 Strategy and Planning Process in Advertising 15

3 Creativity in Advertising 15
Budget, Evaluation, Current trends and careers
4 15
in Advertising
Total 60

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Sr. No. Modules / Units

1 Introduction to Advertising

• Definition, Evolution of Advertising, Importance, Scope, Features, Benefits,

Five M’s of Advertising
• Types of Advertising –consumer advertising, industrial advertising,
institutional advertising, classified advertising, national advertising, generic
advertising
• Theories of Advertising : Stimulus Theory, AIDA, Hierarchy Effects Model,
Means – End Theory, Visual Verbal Imaging, Cognitive Dissonance
• Ethics and Laws in Advertising : Puffery, Shock Ads, Subliminal Advertising,
Weasel Claim, Surrogate Advertising, Comparative Advertising Code of Ethics,
Regulatory Bodies, Laws and Regulation – CSR, Public Service Advertising,
Corporate Advertising, Advocacy Advertising
• Social, cultural and Economic Impact of Advertising, the impact of ads on
Kids, Women and Advertising
2 Strategy and Planning Process in Advertising

• Advertising Planning process & Strategy : Introduction to Marketing Plan,

Advertising Plan- Background, situational analysis related to Advertising
issues, Marketing Objectives, Advertising Objectives, Target Audience, Brand
Positioning (equity, image personality), creative Strategy, message strategy,
media strategy, Integration of advertising with other communication tools
• Role of Advertising in Marketing Mix : Product planning, product brand
policy, price, packaging, distribution, Elements of Promotion, Role of
Advertising in PLC
• Advertising Agencies – Functions – structure – types - Selection criteria for
Advertising agency – Maintaining Agency–client relationship, Agency
Compensation.
3 Creativity in Advertising

• Introduction to Creativity – definition, importance, creative process ,

Creative strategy development – Advertising Campaign – determining the
message theme/major selling ideas – introduction to USP – positioning
strategies – persuasion and types of advertising appeals – role of source in ads
and celebrities as source in Indian ads – execution styles of presenting ads.
• Role of different elements of ads – logo, company signature, slogan,
tagline, jingle, illustrations, etc –
• Creating the TV commercial – Visual Techniques, Writing script, developing
storyboard, other elements (Optical, Soundtrack, Music)
• Creating Radio Commercial – words, sound, music – scriptwriting the
commercial – clarity, coherence, pleasantness, believability, interest,
distinctiveness
• Copywriting: Elements of Advertisement copy – Headline, sub-headline,
Layout, Body copy, slogans. Signature, closing idea, Principles of Copywriting
for print, OOH, essentials of good copy, Types of Copy, Copy Research

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Sr. No. Modules / Units

4 Budget, Evaluation, Current trends and careers in Advertising

• Advertising Budget – Definition of Advertising Budget, Features, Methods

of Budgeting
• Evaluation of Advertising Effectiveness – Pre-testing and Post testing
Objectives, Testing process for Advertising effectiveness, Methods of Pre-
testing and Post-testing, Concept testing v/s Copy testing
• Current Trends in Advertising : Rural and Urban Advertising, Digital
Advertising, Content Marketing (Advertorials), retail advertising, lifestyle
advertising, Ambush Advertising, Global Advertising – scope and challenges –
current global trends
• Careers in Advertising : careers in Media and supporting firms, freelancing
options for career in advertising, role of Advertising Account Executives,
campaign Agency family tree – topmost advertising agencies and the famous
advertisements designed by them

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UNIT – 1
INTRODUCTION TO ADVERTISING
About Advertising:
It is easy to become confused about these terms: advertising,
marketing, promotion, public relations and publicity, and sales. The
terms are often used interchangeably. However, they refer to
different -- but similar activities. Advertising is bringing a product (or
service) to the attention of potential and current customers.
Advertising is focused on one particular product or service. Thus, an
advertising plan for one product might be very different than that for
another product. Advertising is typically done with signs, brochures,
commercials, direct mailings or e-mail messages, personal contact,
etc.
Advertising is always present, though people may not be aware of it.
In today's world, advertising uses every possible media to get its
message through. It does this via television, print (newspapers,
magazines, journals etc), radio, press, internet, direct selling,
hoardings, mailers, contests, sponsorships, posters, clothes, events,
colours, sounds, visuals and even people (endorsements).

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Definition of Advertising:
According to Wood, “Advertising is causing to know to remember, to
do.”

According to Wheeler, “Advertising is any form of paid non-personal

presentation of ideas, goods or services for the purpose of inducting
people to buy.”

According to Richard Buskirk, “Advertising is a paid form of non-

personal presentation of ideas, goods or services by an identified
sponsor.”

According to William J. Stanton, “Advertising consists of all the

activities involves in presenting to a group, a non-personal, oral or

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visual, openly sponsored message regarding disseminated through

one or more media and is paid for by an identified sponsor.”

The above definitions clearly reveal the nature of advertisement. This

is a powerful element of the promotion mix. Essentially advertising
means spreading of information about the characteristics of the
product to the prospective customers with a view to sell the product
or increase the sale volume.

Thus, it may be understood from above explanation that;

Advertising is a marketing tactic involving paying for space to promote
a product, service, or cause. The actual promotional messages are
called advertisements, or ads for short. The goal of advertising is to
reach people most likely to be willing to pay for a company's products
or services and entice them to buy.
EVOLUTION OF ADVERTISING
To appreciate the advertising of today and visualize the advertising of
tomorrow, we need to understand the origin and evolution of
advertising.

The Beginning

The first advertisement may have been a sign painted on a wall of a

building. The early outdoor-advertising competitors were town criers
employed by merchants to praise their goods. It was Gutenberg's
invention of the moveable-type printing press in 1450 that resulted in
the mass production of posters and circulars.

The first advertisement printed in English was a handbill printed in

1472. It was primarily an announcement of a prayer book for sale.
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Two hundred years later, the first newspaper ad appeared offering a

reward for finding 12 stolen horses. By the 17th century, classified ads
were appearing frequently in England's newsweeklies. These ads
featured simple descriptions of products and their prices. Illustrations
and color appeared in advertisements in the late 19th century.
The first advertising agency, which was set up by Volney Palmer in
Boston in 1841, introduced the commission system to the business by
offering a discount of 25% on ad space in newspapers. This move
marked the formal beginning of space selling. Initially, most ad
agencies were nothing more than brokers for ad space in newspapers.
Advertisers created their own ads. N.W. Ayer & Son became the first
full-service agency in 1869.

One of the earliest highly successful advertising campaigns was

launched by Pears Soap. In the late 19th century, Thomas Barratt,
whom many consider the father of modern advertising, launched a
series of ads featuring children, animals, flowers, and beautiful
women to promote the company's products.

Propaganda and Mechanization

During World War I, advertising became a medium for propaganda.

Governments used advertising to persuade their citizens to join the
military. This period also saw increased mechanization of the industry,
making ads more costly.

The Emergence of New Mass Media

When new mass media—radio and cinema—became commercially

available in the first part of the 20th century, the advertising industry
quickly took advantage of their reach, spread, and popularity. This
period of prosperity came to an end with the Wall Street crash of
1929, followed by the Great Depression and World War II.
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Initially, a single business would sponsor a radio program for a brief

mention of its name. Later, sponsorship rights for a show were sold to
multiple businesses, a practice that soon became the norm.

Television

The market did not embrace television initially because of the high
cost of TV sets and the lack of programming. However, as the
American economy improved in the 1950s, television's popularity
surpassed that of radio. Soon, the industry considered it the number-
one medium for advertising. With the establishment of the DuMont
Television Network, the modern trend of selling advertising time to
multiple sponsors became a permanent feature of the commercial
television industry in the U.S.

The Advertising Revolution:

The industry became more scientific in the 1960s. This period

witnessed some of the most creative ads of all time. Instead of
focusing on the product, ads endeavoured to strengthen the brand
and create an image for the company. Advertising also became
subtler and more intelligent, often adopting a conversational style.

Advertising also turned into a major industry in the 20th century. The
advertising of the age cleverly used all media, including newspapers,
television, direct mail, radio, magazines, outdoor signs, and, of
course, the Internet.

Contemporary Advertising:

Remote controls in the hands of every spectator and access to

hundreds of cable channels mean that advertising must generate
interest and entertain in order to survive. Along with these

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challenges, there are also new frontiers such as Internet marketing.

Advertisers and agencies today see innovations like digital ads and
interactive advertising as challenges and opportunities rather than
obstacles.

Objectives of Advertising

1. Brand building – Advertising helps in the establishment and

promotion of a brand in the existing market. It also aids in the
creation of new market for the brand. With the help of audio-
visual advertisements, you can also reminding and reinforce the
brand message into your target customers’ mind.
2. Creation of demand – One of the main objectives of
advertising is that it persuades the customers to buy and use a
particular product. Hence, advertising also contributes in
creating brand awareness and demand. Also, advertising is the
best option for promotion when it comes to launch of a new
product or service. Effective and convincing advertisements do
not only help establish a brand identity but also persuade
competitor brand’s customers to switch to a new brand.

3. Informing Customers about a Product, Company or

Service – Advertising is also a strong medium of communicating
about product, company or service. Companies can tell about
features, qualities or unique characteristics of their product or
service in the advertisement.

4. Promoting a Particular Feature – Specific objectives of

companies can also be fulfilled with the help of advertising.
Building up more positive customer attitudes, beating negative
promotion, extending customer base, creating comparison in

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customer’s mind and various other particular objectives can be

attained by making a specific advertisement for the same.

5. Achieve sales and profit goals – Advertisements create

awareness about a brand and help in increasing the demand for a
product or service. The increased demands results in increased
sales and so, profit goals of a company are attained with the help
of advertising.

Importance of Advertising

1. Product Launch – The foremost aim of advertising is

promotion. Hence, advertising is essential, especially for a new
product that has to be launched in the market. Advertising helps
convey the information regarding launch of the new product.

2. Retain the existing customers – It is essential that

customers keep following, buying and using your brand. And this
is where advertising helps companies again! It keeps on
reminding the customers about the brand and so, helps in
retaining the customers and increasing the sales.

3. Brand Promotion – Promotion is quintessential if any brand

wants to stay in the market. This goal is achieved with the help of
advertising which promotes a product, company or service. When
a brand gets established with the help of advertising, it becomes
a promise of quality and the customers start expecting from a
brand. Thereafter, the stage arises where advertising starts acting
as a reminder. It reminds and convinces customers that their
chosen brand is still there.

4. Educates people – Advertising is not only about promotion!

It also educates people and makes the society aware about

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various issues. Many social issues like female foeticide, child

labor, child abuse, etc., are also raised thorough sensible
advertisements. Thus, advertising also helps in educating people
and spreading awareness.

5. Comparison – Advertising also provides the opportunity of

comparing various products to the customers. Based on features,
qualities or specifications described through advertising,
customers can take their pick on the available products.

Features of advertising:

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The nine main features of advertising:

1. Provides information: Advertising's primary purpose is to provide

information about products or services to prospective buyers. The
details of products such as features, uses, prices, benefits,
manufacturer's name, so on; are in the advertisements. The key

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message and brand name are also there. The information supplied
educate and guide consumers and facilitate them to make a correct
choice while buying a product.
2. Paid communication: Advertising is a form of paid
communication. The advertiser pays to the media for giving publicity
to his AD message. He also decides the size, slogan, etc. given in the
advertisement.
3. Non-personal presentation: Advertising is non-personal in
character as against salesmanship, which is a personal or face to
face communication. Here, the message is given to all and not to
one specific individual. This rule is applicable to all media including
the press. However, even in it, target consumers or target market
can be selected for making an AD appeal.
4. Publicity: Advertising publicizes goods, services, ideas and event
events. It is primarily for giving information to consumers. This
information is related to the features and benefits of goods and
services of different types. It offers new ideas to customers as its
contents are meaningful. The aim is to make the popularize ideas
and thereby promote sales. For example, an advertisement for
family planning, family welfare, and life insurance is useful for
placing new ideas before the people.
5. Primarily for Persuasion: Advertising aims at the persuasion of
potential customers. It attracts attention towards a particular
product, creates a desire to have it, and finally induces consumers to
visit the market and purchase the same. It has a psychological
impact on consumers. It influences their buying decisions.
6. Target oriented: Advertising becomes effective and result-
oriented when it is target oriented. A targeted advertisement
intensively focuses on a specific market or particular groups of
customers (like teenagers, housewives, infants, children, etc.). Here,
the selection of a particular market is called a target market.

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7. Art, science and profession: Advertising is art, science and a

profession, and this is now universally accepted. It is an art as it
needs creativity for raising its effectiveness. It is a science as it has
its principles or rules. It is also a profession as it has a code of
conduct for its members and operates within standards set by its
organized bodies. In its field, AD Agencies and space brokers
function as professionals.
8. The element of a marketing mix: Advertising is an important part
of a marketing mix. It supports the sales promotion efforts of the
manufacturer. It makes a positive contribution to sales promotion
provided other elements in the marketing mix are reasonably
favorable. It is alone inadequate for promoting sales. Many
companies now spend huge funds on advertisements and public
relations.
9. Creativity: Advertising is a method of presenting a product in an
artistic, attractive and agreeable manner. It is possible through the
element of creativity. The creative people (professionals) introduce
creativity in advertisements. Without it, the Ads won't succeed.
Therefore, creativity is called the ‘Essence of Advertising.’

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Benefits of Advertising to the Manufacturer / Business / Firm:

The advertising benefits two main groups, namely:

Image credits © Gaurav Akrani.

1. Large-scale production and marketing: Advertising is useful as a

sales promotion technique. It gives information to consumers and
encourages them to purchase more. Manufacturers expand their
production base due to a higher market demand created through
advertisements.
2. Introducing new products: Advertising facilitates the
introduction of new products. Due to it, information about new
products is given to the people (prospects). A demand generates

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because of this, and the manufacturer can sell new products along
with the existing ones.
3. Creates new demand: Advertising spreads information and
encourages consumers to purchase new products. It creates a new
demand. Customers are offered various concessions in the initial
period. It generates positive responses from them, and soon new
customers also respond. Thus, advertisement creates new demand
from non-users.
4. Effective personal selling: Advertising creates a proper
background for personal selling. It gives advance information to the
prospects. They visit the shop in order to purchase a particular
product that they know through advertisements in media. The job of
a salesman becomes easy as consumers develop an affinity for
advertised products. In brief, it supports and supplements personal
selling.
5. Builds brand image: Advertising build brand image and this
develops consumer loyalty towards a specific brand. Manufacturers
introduce branding to popularize their products with a distinct
personality. Brands get popular through advertisements. As a result,
buyers develop loyalty towards a specific brand.
6. Reduces cost of production: Advertising creates demand and
promotes sales. It enables a manufacturer to conduct production on
a large scale. It leads to a reduction in the cost of production and
distribution. As a result, the profit margin of the manufacturer
increases.
7. Facing competition: Advertising aids a manufacturer to deal with
market competition effectively. It helps him to promote and
popularize his products. He can remove misunderstanding among
consumers about his products through appropriate advertisements.
8. Sales promotion: A manufacturer can make his sales promotion
campaign successful by using the support of advertising. He can

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prepare a proper background for the success of such an ad-

campaign as it facilitates direct communication with consumers.
9. Goodwill builder: A manufacturer can build up goodwill in the
business world and also among the group of customers through
advertising. The social welfare programs and community service
activities can get wide publicity through advertisements. The public
can notice even the progress of the organization through it.

Functions / Role of Advertising –

Following are the basic functions / Role of advertising:

1. To distinguish product from competitors' products: There are so

many products of same category in the market and they competes
with each other, advertising performs the function of distinguishing
advertiser's product from competitors.

2. To communicate product information: Product related information

required to be communicated to the targeted customers, and
advertisement performs this function.

3. To urge product use: Effective advertisement can create the urge

within audience for a product.

4. To expand product distribution: When the market demand of a

particular product increases, the number of retailer and distributor
involved in sale of that product also increases, hence product
distribution get expanded.

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5. To increase brand preference: There are various products of

different bands are available, the brand which is effectively and
frequently advertised is preferred most.

6. To reduce overall sale cost: Advertising increases the primary

demand in the market. When demand is there and the product is
available, automatically the overall cost will decrease, simultaneously
the cost of sales like distribution cost, promotional cost also get
decreased.

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Benefits of Advertising to the Consumers:

1. Information and guide: Consumers get information and guidance

from advertising. They can study the advertisements of competitors
and select the appropriate products that are best suited and
profitable to them. It helps to avoid their cheating and exploitation
at the hands of middlemen.
2. Acts as a reminder: Advertising act as a reminder to consumers
and alerts them about the urgent product they need to purchase.

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3. Attracts customers: Advertising leads to competition among

manufacturers and retailers. They have to offer something special in
order to attract buyers. Such attraction offers benefits to
consumers. For example, manufacturers have to bring down the
price in order to attract customers. They have to supply quality
goods in order to attract them more. All this is beneficial to
consumers in terms of price and quality of goods.
4. Raises living standards: Advertising raises the standard of living
of people by supplying information about goods and services, which
can offer convenience and pleasure to them. It guides consumers in
the selection of most suitable products for their daily life. Thus, it
provides a higher standard of living to consumers as a social group.
5. Efficient product use: Consumers get information about uses or
benefits of different products through advertising. They also get
guidance as regards the right manner of using the product and helps
to avoid any possible damage from the use of a purchased product.
The information supplied through advertisements helps to know
how to use a product in different ways.
6. Removes misunderstanding: Advertising helps most consumers
in removing their misunderstanding about certain products. They
change their attitudes towards products and services due to it.
Five M’s of Advertising:
Advertising is an important promotional tool for any marketing
campaign. So much so that whenever we think of marketing we think
of advertising although it is just one of the marketing tools. Today
government bodies as well as nongovernment organizations go for
high profile advertising campaigns. The purpose here is not to
increase the sales figure but to increase the awareness of people
regarding the relevant topics. Today the marketing manager has a
range of advertising options to choose from- from interpersonal

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communication to Internet. Deciding on a correct option calls for

detailed analysis aspects like objective behind advertising (Mission),
company’s earmarked budget (Money), content of communication
through advertising (Message), advertising vehicle (Media) and
impact of advertising (Measurement). These can be broadly classified
as the five M’s of advertising.

Figure: 5 Ms of Advertising

Explanation OF 5 Ms of Advertising:
a. MISSION: First of all the marketing manager must be clear on the
company’s purpose for advertising. “Increase in sales figure” will be a
very broad and to a certain context a vague objective. According to
Philip Kotler, a renowned authority in this field, there can be three
possible objectives behind advertising: Information- when a new
product is launched, the purpose should only be to inform people
about the product. Persuasion- Persuading people to actually go out
and buy the product. This objective is of paramount importance
because of cut throat competition. Any advertisement must be
persuasive in nature, attracting consumers towards the brand.
Reminder - This objective is relevant for well-established companies.
These types of advertisements only try to remind the consumers of
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the brand existence. For instance whenever we hear or read ‘yeh dil
maange more’, we tend to think about Pepsi. Same way we tend to
associate “two minutes” with Maggie noodles. The marketing
manager should establish a clear goal as on the purpose of
advertising, information, persuasion or reminder.
b. MONEY: After the objective has been decided upon, the next step
is to decide upon the budget. There are several methods for deciding
on the advertising budget. The most common among them is the
percentage of sales method. Under this method, a certain percentage
of sales are allotted for advertising expenditure. Though this method
is used widely, there are some problems with this method. The first
issue is what percentage the company should take? Even if a company
somehow decides a percentage figure, this would mean increase in
advertising expenditure when sales are up and less spending when
sales are down. This in some ways is quite paradoxical, because
logically the reverse should happen. The company needs to spend
more on advertising when sales are down. But this method uses
circular reasoning and views sales as cause for promotion. In fact
sales are a result of promotion. Another method suggests that a
company should spend as much as its competitors are spending. This
method claims that it would prevent promotional wars. But then like
each individual each company is also different. It may not make any
sense in spending like your competitor because competitor might be
on a different footing.
C: MESSAGE: As a common experience, we love some
advertisements, while the others just irritate us. An appealing
advertising will win consumers and will consequently induce them to
purchase the product. On the other hand, irritating advertising will
create an adverse effect. This is why many companies hand over this
task to advertising agencies, which has professionals to make impact -

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making ads. The message that company wants to convey should be

put in a manner that will arouse interest. Moreover it should
convincingly highlight upon the products USP. What is said is
definitely important but what is more important is how it is said. The
tone should be appealing. Words used should be catchy and
retentive. These days both electronic as well as print media are
overflowing with ads. People have no time to read or see them, and
therefore they have to be attractive enough to target audience’s
attention. This is the job of message.
D MEDIA: Selecting the proper media vehicle for communicating the
message goes a long way in the success of any kind of advertising.
Each media vehicle has its positive and negative points with a
different reach and impact. Therefore, a company has to be very clear
about its target audience. Choices available are Internet, TV,
newspapers, magazines, direct mails, radio and hoardings. Everyone
of this has its advantages and disadvantages. Companies often go in
for a media mix, i.e. they select more than one of the available
choices. Timing is of great significance here. Many industries face
seasonal fluctuations and pass through cycles. Therefore, advertising
should be timed that way to take care of these fluctuations. A limited
budget should be prudently allotted among these media vehicles.
E MEASUREMENT: It is necessary that effectiveness of any advertising
be judged. Only on the basis of this measurement, can further
decisions regarding continuation or termination of the particular
advertising campaign be taken. An ad can be judged on the basis of its
reach and impact on sales. Good advertising is one that generates
brand awareness and consequently brand preference. How much of
sales can be attributed to advertising, is a difficult question to answer.
Sales are influenced by many factors besides advertising. It is not easy
to isolate the impact of advertising on sales. Nonetheless there are

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some advanced statistical techniques available that can be used with

the help of computer software like SPSS. Thus a systematic and
balanced understanding of these five Ms’ of advertising will help in
designing better advertising campaigns that create a favorable impact
on the target audience.
TYPES / CLASSIFICATIONS OF ADVERTISEMENTS
Advertising is an effective way of promoting your products and
services to your target audience and is usually a paid form of
promotion. When you advertise you tell prospective customers who
you are, where you are and what you can do for them.
Good advertising should:
• build the image of your business
• explain the benefits of your products and services
• increase awareness of new products and services before, when
and after they are launched
• generate interest from your target market, as well as a new
audience of prospective customers
• encourage customers to ask for information about your business
and provide options for how they can contact you
• Increase the demand from customers and increase your sales.
Understanding the wide range of advertising strategies available will
allow you to use the one that is best for your business. You may find
that using a combination of strategies gives you the strongest results.
There are different types of advertisements that helps increasing the
sales, introduce new products, maintain brand image, increase brand
value of the products and so on….

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On the basis of geographical spread, target audience, for what is to be

advertised, objectives etc there are different types of advertising
options available to an advertiser.

TYPES OF ADVERTISING

GEOGRAPHICAL TARGET WHAT IS BEING

SPREAD OBJECTIVE OTHERS
AUDIENCE ADVERTISED

NATIONAL CONSUMER PRODUCT PRIMARY POLITICAL

ADVTG DEMAND/
GENERIC ADVTG
LOCAL SERVICES
RETAIL FINANCIAL
ADVTG
SELECTICVE
GLOBAL IDEA

INDUSTRIAL SURROGATE
ADVTG
INSTITUTIONAL DIRECT
RESPONE
CLASSIFIED
PLACE ADVTG
INDIRECT
RESPONE
DISPLAY
ADVTG
PUBLIC
SERVICES

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Geographical Spread:
a. National Advertising:

Advertising done by large companies on a nation wise basis or

in most regions of the country is called as National advertising.
Apparently the term national advertising conveys mass
marketing effort. In reality this does not necessarily mean that
the product is sold nationwide. National advertising
emphasises brand introduction of new products and greater
brand loyalty for established products. This type of advertising
is done by a manufacturer and is in contrast to that done by a
retailer whose objectives are totally different. The company
thus selects media with a countrywide base. National
advertisers realize that, under some conditions, it is better to
advertise in regional or local media rather than mass media. As
more and more national advertisers are able to identify and
reach narrowly defined market segments there would appear
more regional or local advertising. For example, they may
select regional/local newspapers, television stations, radio, or
outdoor media because of differences in the regional language.
The advertiser would still be classified as national advertiser as
the purpose of the ads is to encourage purchase of the
advertised product at any outlet carrying the item.
Large established firms belongs to this category. Example: Lux
Soap, Sunsilk Shampoo, Colgate Toothpaste, etc.

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b. Local / Retail Advertising

Advertising done by retailers or local merchants to encourage
consumers to shop at a specific stores, use a local service or
patronize a particular establishment. Retail or local advertising
tends to emphasize specific patronage motives such as price,
hours of operations, service, atmosphere, image or
merchandise assortment. Retailers are concerned with building
store traffic, so their promotions often take the form of direct-
action advertising designed to produce immediate store traffic
and sales.

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c. Global Advertising
The discussion of differences in the marketing environments of
various countries suggests that each market is different and
requires a distinct marketing and advertising program. Here, a
company uses a common marketing plan for all countries in
which it operates, thus selling the product in essentially the
same way everywhere in the world. Global advertising falls
under the umbrella of global marketing as a way to implement
this strategy by using the same basic advertising approach in
all markets.

Gillette has used the “Best a man can get” as its global
advertising theme for over a decade and has launched a
number of new razor products including the Sensor, Mach3 &
Fusion using a global approach. Gillette uses the same
advertising theme in each country and maintains websites with
similar content and layout with only language differences. In
2007 Gillette launched a global integrated marketing campaign
to promote its revolutionary six-bladed Fusion razor featuring
three of most prominent athletes in the world – golfer Tiger
Woods, Swiss tennis champion Roger Federer, and French
soccer star Thierry Henry. The integrated campaign was part of
Gillette Champions program, a global sports marketing
initiative for the brand, and includes television, print and

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online advertising; consumer and trade promotions; and a

public relations program.

Very few products lend themselves to global advertising. Differences

in culture, market and economic development; consumer needs and
usage patterns; media availabilities; and legal restrictions make it
extremely difficult to develop an effective universal approach to
marketing and advertising.
Also, advertising may be particularly difficult to standardize because
of cultural differences in circumstances, language, traditions, values,
beliefs, lifestyle and so on.
Globalisation of an ad is appropriate mainly:

• When a company launches High-tech products and new

products coming to the world for the first time, not stepping in
the cultural heritage of a company.
• Also, when a brand or a message which can be adapted for
a visual appeal, avoiding the problem of trying to translate words
into dozens of languages.
• Brands that are promoted with image campaigns that play
to universal needs, values, and emotions.
Target audience
a. Consumer Advertising
Consumer advertising is directed to the end of the consumers. It
takes place to those products that are used by the consumers.
Such advertisements a p p e a r i n t h e m e d i a s u c h a s
television, radio, magazine and n e w s p a p e r .
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Example: Soaps, Shampoos, cosmetics, washingmachine,

refrigerators,
televisions, etc.
b. Retail advertising:
Retail advertising is all advertising by the stores that sell goods
directly to consumer. It has a number of objectives. The primary
objective is to build store traffic, focussing on variety, friendly
and knowledgeable salesperson and prestige brands. Other
objectives such as:
◼ Build store brand awareness
◼ Sells a variety of products by creating a customer
understanding.
◼ Deliver sales promotion understanding
◼ Create and communicate a store image or personality.
◼ Create consumer desire to shop at this particular store.

c. Industrial Advertising:
The most popular terminology used for industrial advertising is
Business to Business advertising. This type of advertising generally
includes a company advertising its products or services for the
companies which actually uses same or similar products or services
or we can say that the advertising company should produce the
products which the other company needs for its productions or
functions. For e.g. some mineral water companies which work on a
smaller scale outsource the packaging bottles, the caps for bottles,
the cover with name printed on it, etc. so for this, the
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advertisements of the manufacturers of bottles, caps and outer

packaging paper can work.
A smaller to smaller and largest of all, every company has to do
industrial advertising. Thus companies manufacturing any products
can be advertised to the other companies, like raw materials, the
machineries used by other companies, spare parts of the machines
which makes it work, anything. The media generally used in the
industrial advertising is print media and direct marketing. This type
of advertisement is given by the manufacturers of Industrial goods
and is targeted towards industrial buyers only.
Role of Industrial Advertising:

▪ It minimizes the hunt for buyers.

▪ It helps in increasing sales of the company.
▪ It helps in making more and more distribution channels.
▪ It makes company work more efficiently to produce the
desired product or service.
▪ It creates awareness among the customers or other
companies about the products and services.

What is being advertised:

a. Product advertising:
Product advertising communicates the features and benefits of
a product to customers and prospects. Companies use product
advertising when they want to launch new products, announce
changes to existing products or increase sales of those products.
Product advertisements must reflect the interests of the target
audience. An advertiser developing a campaign for a food
product, for example, would create messages and select media

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that appeal to a wide consumer audience. A campaign for a

business product, such as a machine tool, would use media that
appeal to different groups influencing the decision to buy,
including plant managers, production engineers and finance
directors.
b. Service Advertising
This type of advertising tries to promote the sale of services
which are intangible, inseparable and perishable. Example:
Advertisements by banks, hotels, airlines, insurance companies,
mobile phones, etc.
c. Idea Advertising
Idea advertising is to achieve the further goals of public
interests and social causes apart from promoting goods and
services. Example Save electricity, HIV awareness programme,
quit smoking, Save the girl child, beti bachao abhiyan by BJP
Government is the recent example on idea advertising.
d. Institutional advertising:
Also known as corporate advertising, institutional advertising is done
by institutions to build their image and goodwill. Focus is not on a
product or a service of the organization. (in detail given later)
e. Place advertising:
Advertising or places to done to promote tourism to such places.

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Objectives:
a. Primary demand advertising / generic advertising:

When an entire product category is advertised instead of a particular

brand, it is known as Primary demand stimulation. Here, the effort is
made to promote the merits of a product category rather than a
particular brand. It contrasts select demand stimulation where
advertisers pay to promote their brand as superior to competitors.
Though not as common, primary demand ads do serve a purpose in
specific instances.
The major purpose of primary demand ads is either to inform
customers about a brand new product or technology that they are
unfamiliar with, or to persuade customers that they haven't
recognized the benefits of a given product. Primary advertisement is
without a brand, much like an advertisement that is mentioned
above. When we see above ad, it mentions us the benefits of eating
an egg.
b. Selective advertising:

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Selective advertising which sometimes is also known as secondary

demand advertising, aims to stimulate the demand for a particular
brand of a product. While the efforts in primary demand advertising is
to convert the non-users into users, selective demand advertising
attempts to convert the users of brand “A” into users of brand “B”. In
such advertising, the advertiser highlights some unique features and
benefits of his brand. For e.g. ABN Amro bank highlights in its
advertisements that ABN Amro is the only credit card which pays
immediate cash back. Generating selective demand is the goal of
many of the advertisements consumers encounter. Television and
radio commercials, magazine and newspaper advertisements, and in-
store product signage typically highlight a specific benefit of a single
brand, whether that is its low price, high quality, unique flavour or
other distinctive trait.
c. Direct Response advertising:
Promotional method in which a prospective customer is urged to
respond immediately and directly to the advertiser, through the use
of a 'device' provided in the advertisement.
These devices (called direct response mechanisms) include a
(1) coupon to cut and mail, (2) business reply card, (3) toll-
free telephone number, or, on the internet. Most
retail sale advertisements are direct response ads in one way or the
other.
Some of the main characteristics of D.R. Advertising:

• It’s trackable. That is, when someone responds, you know

which ad and which media was responsible for generating the
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response. This is in direct contrast to mass media or “brand”

marketing – no one will ever know what ad compelled you to
buy that can of Coke.
• It’s measurable. Since you know which ads are being
responded to and how many sales you’ve received from each
one, you can measure exactly how effective each ad is. You then
drop or change ads that are not giving you a return on
investment.
• It targets a specific audience or niche. Prospects within
specific verticals, geographic zones or niche markets are
targeted. The ad aims to appeal to a narrow target market.
• It makes a specific offer. Most of the direct response ad
usually makes a specific value-packed offer. (E.G. mailer in
Reader’s digest, TV shopping channel ads)

d. indirect response advertising: Such advertising stimulates demand

for a product for a longer time. Such ads are not meant to induce the
demand immediately. The idea is to share information at that
moment, create positive image about the brand and believe that the
customer will buy a product when they are ready for it and they will
look for a particular brand. Sale of a refrigerator may not induce a
person to go and buy it quickly but a viewer who has noticed various
ads may buy it in some time when it is required by them.
Indirect response ads are about creating general awareness of your
name or brand, and the idea is that when a consumer needs your
service, he will think of you and reach out to you. In other words, the
response to the ad is not direct, but rather indirect.
Some people call this type of advertising “branding” because it is
intended to build your brand.

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The main purpose in case of an indirect advertising is to make a

positive effect in the mind of a reader / viewer. The viewer develops a
favourable image of the ad and later on buy the product when he
/she requires it.
e. Public Service advertising: Unlike traditional commercials, Public
Service Advertisements (PSA) are primarily designed to inform and
educate rather than sell a product or service. The goal of a PSA is not
to make a big sale, but rather to change public opinion and raise
awareness for a problem. However, sometimes money is solicited,
although usually not for profit.

OTHERS:
a. Political advertising:
Political advertising is advertising that attempts to influence or
comment upon a matter which is currently the subject of extensive
political debate. Political advertising includes advertising or marketing
communications about a political party, representative or candidate,
advertising about political issues or issues of public interest, and
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advertising in relation to government policies (whether

published/broadcast by the government or someone else).
Advertising by Government, political parties, lobby groups and other
interest groups may fall into this category.

b. Financial advertising: advertising geared to the world of finance,

such as Wall Street brokerage firms, banks, or insurance companies.
Typical products in financial advertising are publicly offered financial
products such as mutual fund shares or limited partnership shares.

c. Surrogate advertising is a form of advertising which is used to

promote banned products, like cigarettes and alcohol, in the disguise
of another product. This type of advertising uses a product of a fairly
close category, as: club soda, mineral water in case of alcohol, or
products of a completely different category (for example, music
CD's or playing cards) to hammer the brand name into the heads of
consumers. The banned product (alcohol or cigarettes) may not be
projected directly to consumers but rather masked under another
product under the same brand name, so that whenever there is
mention of that brand, people start associating it with its main
product (the alcohol or cigarette). In India there is a large number of
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companies doing surrogate advertising, from Bacardi Blast music CD's,

Bagpiper Club Soda to Officers Choice playing cards.

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d. Classified advertising: Classified advertising is a form

of advertising which is particularly common in newspapers, online
and other periodicals which may be sold or distributed free of
charge. Classified advertisements are much cheaper than larger
display advertisements used by businesses, although
display advertising is more widespread.

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Display Advertisement:- Display advertising is advertising on websites

or apps or social media through banners or other ad formats made of
text, images, flash, video, and audio. The main purpose of display
advertising is to deliver general advertisements and brand messages
to site visitors.
A display ad, also known as a banner ad, is a form of online paid
advertising that is typically a designed image or a photo and copy.
Viewers can then click on the image with the promotion to then be
taken to the corresponding landing page.

Display ads can be spotted on websites and can feature interactive

displays or some type of animation to engage the user.

Retargeting can also be used for these ads. For example, on

ecommerce or shopping site a user may place something in his or her
cart and then leave the site without purchasing. Ads can then be used
to advertise exactly what that user placed in his or her cart to get
them to complete the purchase that they left before.

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Theories of Advertising:
Advertising has numerous objectives which includes communicating
with potential customers as well as persuading them to adopt a
particular product or develop a preference towards the product for
repeat purchase which ultimately results in brand loyalty. Advertising
Theory or theories therefore try to explain how and why advertising is
effective in influencing behavior and accomplishing its objectives.

There are numerous theories on advertising. Most theories of

advertising generally propose if you want a consumer to like a
product or a brand continuously then simply expose the consumer to
a product or brand advertising such that there are certain feelings and
expectations attached for the ad itself. Advertising theories also make
use of content specification, Specific message and media
characteristics, consumer characteristics, product/service
characteristics, and competitive actions.

Following are the theories of advertising:

• AIDA
• Hierarchy Effects model
• Stimulus Theory
• Means-End Theory
• Visual Verbal imaging
• Cognitive Dissonance

Diagrammatical representation of AIDA & Hierarchy of effects model

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1. The AIDA model: This model was developed to represent the

stages a salesperson /an advertiser must take a customer through in
the personal-selling process. This model depicts the buyer as passing
successively through attention, interest, desire, and action. The
salesperson must first get the customer's attention and then arouse
some interest in the company's product or service. Strong levels of
interest should create desire to own or use the product. Developed
during the 19th century, AIDA – an acronym for Attention, Interest,
Desire & Action – is a mantra that’s been widely adopted by the
marketing & advertising industry. Over time, AIDA evolved into AIDAS,
with the ‘S’ denoting ‘Satisfaction’.The action stage in the AIDA model
involves getting the customer to make a purchase commitment and
closing the sale. To the marketer, this is the most important stage in
the selling process, but it can also be the most difficult. Companies
train their sales reps in closing techniques to help them complete the
selling process.
Getting attention takes many steps – we might view an advertisement
many times before we find ourselves sufficiently interested to pay
explicit attention to it. Once we have done that it may take many
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more exposures, or even many more campaigns, to elicit our interest,

evoke our desire for the brand, and finally to provoke us into actually
acting on the message by purchasing the advertised brand.

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2. Hierarchy of Effects model:

Hierarchy of Effects Theory. This model aids the marketing team in
identifying the best message strategy. The hierarchy of effects
model is a model which tells advertisers to make an advertisement in
such a way that the customer goes through all these six stages namely
awareness, knowledge, liking, preference, conviction and purchase.
The steps in this model is sequential. A consumer will spend a period
of time at each step before moving to the next. Thus, before a person
can develop a liking for a product, he or she must first have sufficient
knowledge of the product. Once the individual has the knowledge and
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develops liking for the product, the advertiser can try to influence the
consumer to favour a particular brand or company.

This model is known as a "hierarchy" because the number of

consumers moving from one stage to the next reduces, as you move
through the model. There may be a lot of consumers that see the
product advert but not everyone will make a purchase. It takes a lot
of work to take a consumer from awareness to the final stage of
purchase, so businesses need to ensure that they try their utmost to
get customers from conviction to complete the final stage of
purchase.

Awareness

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The customer becomes aware of the product through advertising.

This is a challenging step, there is no guarantee that the customer will
be aware of the product brand after they view the advert. Customers
see many adverts each day but will only remember the brand of a tiny
fraction of products.

Knowledge

The customer begins to gain knowledge about the product for

example through the internet, retail advisors and product packaging.
In today's digital world this step has become more important as
consumers expect to gather product knowledge at the click of a
button. Consumers will quickly move to competitor brands if they do
not get the information they want. The advertiser's job is to ensure
product information is easily available.

Liking

As the title states, this step is about ensuring that the customer likes
your product. As an advertiser what features can you promote to
encourage the customer to like your product?

Preference

Consumers may like more than one product brand and could end up
buying any one of them. At this stage advertisers will want the
consumer to disconnect from rival products and focus on their
particular product. Advertisers will want to highlight their brand's
benefits and unique selling points so that the consumer can
differentiate it from competitor brands.
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Conviction

This stage is about creating the customer's desire to purchase the

product. Advertisers may encourage conviction by allowing
consumers to test or sample the product. Examples of this are inviting
consumers to take a car for a test drive or offering consumers a free
sample of a food product. This reassures consumers that the purchase
will be a safe one.

Purchase

Having proceeded through the above stages, the advertiser wants the
customer to purchase their product. This stage needs to be simple
and easy, otherwise the customer will get fed up and walk away
without a purchase. For example a variety of payment options
encourages purchase whilst a complicated and slow website
discourages purchases.

Six Steps and Behaviour

Lavidge and Steiner suggested that the six steps can be split into three
stages of consumer behaviour: cognitive, affective and conative. The
job of the advertiser is to promote the three behaviours.

• Cognitive (thinking) so that the consumer becomes product

aware and gathers product knowledge
• Affective (feeling) so that the consumer likes the product
brand and has conviction in it
• Conative (behaviour/do/act) so that the consumer buys the
product brand

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Conclusion

This model is known as a "hierarchy" because the number of

consumers moving from one stage to the next reduces, as you move
through the model. There may be a lot of consumers that see the
product advert but not everyone will make a purchase. It takes a lot
of work to take a consumer from awareness to the final stage of
purchase, so businesses need to ensure that they try their utmost to
get customers from conviction to complete the final stage of
purchase.

Perhaps the best known of these response hierarchies is the model

developed by Robert Lavidge and Gary Steiner as a paradigm for
setting and measuring advertising objectives. Their hierarchy of
effects model shows the process by which advertising works; it
assumes a consumer passes through a series of steps in sequential
order from initial awareness of a product or service to actual
purchase. A basic premise of this model is that advertising effects
occur over a period of time. Advertising communication may not lead
to immediate behavioural response or purchase; rather, a series of
effects must occur, with each step fulfilled before the consumer can
move to the next stage in the hierarchy. The hierarchy of effects
model has become the foundation for objective setting and
measurement of advertising effects in many companies.

3. Stimulus Theory: Stimulus Response Theory is a concept in

psychology that refers to the belief that behaviour manifests as a
result of the relationship between stimulus and response. ... In other
words, behaviour cannot exist without a stimulus of some sort, at
least from this perspective.

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A Stimulus-response sales approach uses specific statements (stimuli)

to solicit specific responses from customers, similar to what is called a
“canned” sales pitch. (In selling technique, a sales presentation or sales pitch is a line of talk
that attempts to persuade someone or something, with a planned sales presentation strategy of a
product or service designed to initiate and close a sale of the product or service.)

The stimulus response theory states that if the salesperson uses the
right stimulus of an appropriate strength, the prospect will respond
the way the salesperson wants him to; in this case buy the product.
Some of the stimuli that the salesperson has a control over are:

1. Self-Physical appearance, mannerism, tone of the voice or

modulating the voice and interpersonal skills exhibited by the
salesperson.

2. Price concessions: A salesperson have limited discretions to give

price concessions to the most promising and large prospects.

3. Announcement of price changes: Salespeople can choose their

timing to announce changes in the price.

4. Preferential treatment to important customers like those who buy

in large volumes, make on time payment and are willing to help the
salesperson in liquidating his stocks.

Unfortunately in most cases this doesn’t work. In situations where it

does work, it more often leaves the customer in a state of
post-purchase dissonance. That is because the customer is not
convinced. May be at a particular moment of weakness, the customer
gave in to the salesperson, or the customer who conned in buying
from the salesperson.

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This theory works in organizations which have a selling orientation

and believe in pushing the sale at all costs.

The stimulus response theory saw firms emphasizing the physical

appearance of the salesperson and his or her conversational skills. It
also saw firms giving leverage to their salespeople to finalize the
order at any cost. Hence, there have been examples where the
salespeople made the sale for the firm but it was unprofitable. For,
they lowered their prices or allowed extended period of credit to the
prospect which had a negative effect on the firm’s bottom line.

Under this theory there is also a possibility of the sales person

offering all sorts of concessions to pursue the customer to change the
current product the consumer is using and later on gradually reducing
the discounts.

Here the sales person takes a chance. If the customer likes their
product then he or she may continue to buy the product irrespective
of withdrawal of discounts or incentives and can be loyal customer.
Otherwise the customer may revert back to his old brand.

• Means-End Theory
• Visual Verbal imaging
• Cognitive Dissonance

4. Cognitive Dissonance Theory:

Advertisers, marketers, and public relations pros purposely create

cognitive dissonance to try to sway your beliefs and behaviors.
What’s your best defence? Awareness.

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You’ve likely experienced cognitive dissonance as a result of media or

marketing influences, but you may not have recognized it.
Most of the time, cognitive dissonance seems like an internal battle:
You believe one thing but act in opposition to that belief, or you
believe two contradictory things and are forced to reconcile the
inconsistencies within your mind. (1) But, there may be external
forces — such as advertising, marketing, or public relations —
responsible for creating the dissonance, too.

After all, the main job of these industries is to influence the views and
behaviors of consumers like you. (2) Like it or not, you’ve likely
experienced cognitive dissonance as a result of media or marketing
influences, you just may not have recognized it.

Cognitive Dissonance in Advertising

Advertisers try to paint a picture that your life isn’t complete without
their product or their service. Many use cognitive dissonance to point
out the inconsistencies between the idealized version of you and the
real-life you. You experience dissonance because you want to see
yourself in that idealized way, but you don’t necessarily use that
product or service.

Cognitive Dissonance is a tool that marketers and advertisers use all

the time. A lot of advertisements are set up where they’ll make this
explicit claim that you’re only cool or beautiful or worthy (or some
other positive attribute) if you own this product or service.

Think about a shampoo commercial. A beautiful woman’s hair blows

in the wind. She looks happy, healthy, and gorgeous. The underlying
message is that you too could look happy, healthy, and gorgeous if
you use the same shampoo she uses. You experience dissonance

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because you want to look and feel happy, healthy, and gorgeous,
but you don’t necessarily use that shampoo.

You, the consumer, are left with a few options.

You can reject the claim completely (which is what very strong-
minded people do).

Or

You can resolve the dissonance by accepting the message and

changing your behavior, meaning you buy the shampoo.

Or

You can resolve the dissonance by accepting the message and

changing your belief. You may start to see yourself as less beautiful
and healthy because you don’t use that product.

“You can modify your original belief system or you can resolve the
cognitive dissonance by actually buying what they’re selling,”

The advertiser, of course, wants you to do the latter. And if you

choose the former, your self-esteem will likely take a hit since you
must acknowledge you don’t possess these positive qualities.

The more persuasive and more compelling the advertisement, the

stronger the dissonance and the more urgently you’ll need to resolve
it.

You may have seen this tactic used by luxury companies who set out
to sell a lifestyle more than a specific product. You may not even see
what the product is within the advertisement, What they’re doing is

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marketing a lifestyle and marketing a status or a mentality that’s

associated with the brand.

Their goal is to get you to believe in and support that brand because
you want to attain that lifestyle.

5. Visual Verbal Theory of Advertising: According to Scott, Verbal

means greater emphasis is given on words in some of the ads in order
to evoke response from the target market. Visual imagery is
considered to be more effective than the verbal message. Visual
imagery is stored both as pictures and words in brain and this dual
processing increases recall level. Also, the visual imagery is considered
to be a universal language for the advertisers as an image will depict
the same thing for audience belonging to different geographical and
cultural settings. However, the meaning of words may be different for
different people. In this respect, the visual imagery is very effective.

6. Means – end Theory of Advertising:

IV. Means - End Theory:

The means-end theory sustains that the way consumers relate to products can
be represented by a hierarchical model of three interconnected levels:

Product attributes, consequences of use and personal values.

The theory approach is based on the assumption that consumers see products
as a means to important ends and try to explain how the selection of a product
or , service facilitates the achievement of desired end-states.

The means-end chain model was developed by Gutman (1982). The notion of a
means-end chain provides a useful framework for understanding the

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relationship between consumers or customers and advertising messages. A

means-end chain represents the linkages among brand attributes, the
consequences obtained from using the brand and "consuming" the attributes,
and the personal values that the consequences reinforce. These linkages
represent a means-end chain because the consumer sees the brand and its
attributes, the consumption of which has consequences, as the means for
achieving a valued end state resulting from these consequences.

Attributes are features or aspects of advertised brands. In the case of auto-

mobiles, for example, attributes include price, gas mileage, engine
performance, aesthetic features, and so on. Consequences are what
consumers hope to receive (benefits) or avoid (detriments) when consuming
brands. Increased status, convenience, performance, safety, and resale value
are positive consequences associated with automobiles (benefits), whereas
breakdowns, mishandling, and poor resale value are negative consequences
that consumers wish to avoid (detriments).

In sum, the important thing to appreciate is that attributes reside in brands,

whereas consumers experience consequences as a result of brand acquisition
and usage. Together, brand attributes and the consequences of consuming
these attributes are the means whereby people achieve valued ends. Values
represent those enduring beliefs people hold regarding what is important in
life. They pertain to end states that people desire in their lives, they
transcend specific situations, and they guide selection or evaluation of
behavior.

Ethics and Laws in Advertising : Puffery, Shock Ads, Subliminal Advertising, Weasel Claim,
Surrogate Advertising, Comparative Advertising, Code of Ethics, Regulatory Bodies, Laws
and Regulation – CSR, Public Service Advertising, Corporate Advertising, Advocacy
Advertising

Ethics and Laws in Advertising:

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Ethics means a set of moral principles which govern a person’s

behavior or how the activity is conducted. And advertising means a
mode of communication between a seller and a buyer.
Thus, ethics in advertising means a set of well-defined principles
which govern the ways of communication taking place between the
seller and the buyer. Ethics is the most important feature of the
advertising industry. Though there are many benefits of advertising
but then there are some points which don’t match the ethical norms
of advertising.
An ethical ad is the one which doesn’t lie, doesn’t make fake or false
claims and is in the limit of decency.
The main area of interest for advertisers is to increase their sales, gain
more and more customers, and increase the demand for the product
by presenting a well decorated, puffed and colourful ad. They claim
that their product is the best, having unique qualities than the
competitors, more cost effective, and more beneficial.
But most of these ads are found to be false, misleading customers
and unethical. The best example of these types of ads is the one
which shows evening snacks for the kids, they use colouring and
gluing to make the product look glossy and attractive to the
consumers who are watching the ads on television and convince them
to buy the product without giving a second thought.
Ethics in Advertising is directly related to the purpose of advertising
and the nature of advertising. Sometimes exaggerating the ad
becomes necessary to prove the benefit of the product. For e.g. a
diaper ad which shows that when the diaper was dropped accidently
in a river by a mom, the diaper soaked whole water of the river. Thus,
the purpose of advertising was only to inform moms about the
product quality. Obviously, every mom knows that this cannot
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practically happen but the ad was accepted. This doesn’t show that
the ad was unethical.
Ethics also depends on what we as a manufacturer / advertiser
believe. If the advertisers make the ads on the belief that the
customers will understand, persuade them to think, and then act on
their ads, then this will lead to positive results and the ad may not be
called unethical. But at the same time, if advertisers believe that they
can fool their customers by showing any impractical things like just
clicking fingers will make your home or office fully furnished or just
buying a lottery ticket will make you a millionaire, then this is not
going to work out for them and will be called as unethical.

15 Indian Print & Television Advertisements That Courted Controversy

https://www.scoopwhoop.com/inothernews/indian-advertisements-controversies/#.yo0akkcz9

There are several ethical issues that challenge the standards of

advertising professionals. Some of them are explained below:

• Puffery
• Shock Ads
• Subliminal Advertising
• Weasel Claim
• Surrogate Advertising (already covered in previous topic)
• Comparative Advertising

Puffery: Advertising puffery is defined as advertising or promotional

material that makes broad exaggerated or boastful statements about
a product or service that are subjective (or a matter of opinion),
rather than objective (something that is measurable), and that which
no reasonable person would presume to be literally true.

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Very often we hear that advertisement exaggerates about the

product qualities.

Now a days; ‘puffery’ i.e. “metaphor of idea” (Comparison of Idea)

forms to be main element in advertising. On the one hand critics
accuse it, while on the other defenders i.e. advertisers and advertising
professionals opined it as a helping agent to differentiate their brands
from the competitors.

Puffery is considered to be an ‘opinion’ and not a ‘factual

information’. Advertisers claim that the consumers are intelligent
enough to distinguish between truth and exaggeration. Moreover,
they are not blindly going to believe everything as such presented in
an advertisement.

E.g. In the advertisement of ‘Force 10’ shoes the copy is “I am walking

on air”. This metaphor that tells the lightness of the shoes, is
unbelievable that one can “walk an air”. But the studies reveal that
often many people start believing them & buy those products that
have exaggerated claims in their advertisements. With the use of
special effects exaggerating the “quality” and using various “appeals”
advertisers dramatized their products to such an extent that reality
takes a back seat. E.g. the advertisements of ‘Wheel” & “Vim” bars
show lemons on their package & advertisement even and the
products advertisers claim that it contains lemon while it is found that
they only have Lemon flavor in them. These kinds of deception cases
are more in India as well as in the world. Puffery, though legal, but is
not harmful to an extent.

All above are the methods - known as "puffery" — the advertiser

"puffs up" the product to seem like more than it is. Puffery is not
illegal and is a common method used in advertising.
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If two trade rivals indulge in puffery without hitting each other, the
consumer is misled by both…If both are restrained from making false
representations, then the consumer stands to gain. Similarly,
permitting them to expose each other in a truthful manner will result
in consumer education.
Examples
• Gillette-The Best a man can get.
• Goodyear-Best Tires in the World.
• Papa John’s-Better ingredients, Better Pizza.
• Conagra foods-Better Tomatoes Make Better Ketchup.
• Hutch-wherever you go, our network follows

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Shock Ads:

Shock advertising or Shockvertising is a type of advertising that

"deliberately, rather than inadvertently (unintentionally), startles and
offends its audience by violating norms for social values and personal
ideals".
It's called "shockvertising." As the name suggests, these ads are
designed to shock you and create controversy in order to get you to
remember them, mostly using violence, sex or taboos. Many went too
far over the line in their quest to be "edgy" and were banned or
rejected outright, but ended up out on the web anyway.
Why the shock in advertising?
Shockvertisements use controversial, disturbing, explicit and
provocative messages that challenge the public’s conventional
understanding of the social order. It may not only offend but can also
frighten the audience, to sell a product or deliver a public service
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message. It creates a lasting impression in the minds of the people

who have had one look at the advertisement as it is one of its kinds.
Humour is commonly used to make promotions interesting and to
grab the eyeballs. But to break the clutter, to bring something
different in the market, advertisers makers resort to using shock in
their advertisements. The result- "high impact” and “better recall”
among those exposed to these advertisements.
Impact of Shock on the audience
Consumers are more likely to remember shocking advertising content
over advertising content that is not shocking. Advertisements which
use the negative emotions to create shock do not make the audience
feel good after being exposed to such advertisements. So using
shockvertising may actually evoke negative feelings whenever the
customer sees the brand logo or name of the company and may cause
an uncomfortable feeling along with the brand recall.
In case of a cause or an issue, using shockvertising can work by
getting the attention the cause deserves and getting people
interested in contributing or working for it. It can sensitise people to
other cultures and ways of life.
Bangalore Traffic Police has been running an outdoor advertising
campaign using disturbing photography to shock people and to
discourage them to talk to their friends and families on the phone
while they are driving. Men and women are shown grimacing as blood
spurts out from their telephones. The tag line: “Don’t talk while he
drives”.

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Discover ideas about Road Safety Poster

This is certainly the strongest ad of the 10 I chose, it's very powerful
showing the clear statistical difference between those 10 extra miles
and the difference speeding can make.
CONCLUSION:
Shock advertisements are like Double-edged sword and companies
must be wary about its use. When used appropriately they give an
edge over the competitors and when mishandled leads to the loss of
brand image. Companies must focus on promoting realistic
advertisements rather than promote ads that are intended just for
public stunt. With shock advertisements customized to meet the
needs of the target customers, the word of mouth that the ads create
can be of immense use to increase the sales of the product and also
to enable companies to impart social awareness to the masses.

Comparative Advertising:

Comparative advertising is a form of advertising where one party

advertises its goods or services by comparing them with that of its
competitors. Generally; the competitor is the market leader in that
product category.
With the market becoming overcrowded with a large no. of products,
all the brands are looking for ways to attract the customers attention
and comparative advertising is one such way they have discovered.
Comparative Advertising has become extremely popular way of
advertising especially in sectors like FMCG, automobiles etc.

Types of Comparative advertising

Explicit – In this case a product is directly compared to its competitor
by taking the name of competitor.
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Example:

The Famous Pepsi vs. Coke advertisement where Pepsi highlighted its
superiority by saying that most people preferred the taste of Pepsi
over coke in a blind taste test.

Perfect Examples of Explicit advertising

https://www.youtube.com/watch?v=riD0RlWC24g

https://www.youtube.com/watch?v=TKBHTrf0fzA

https://www.youtube.com/watch?v=OT3xeaWVINA

Implicit – In this case the competing brand is not named explicitly,

rather they are referred to as leading brands.

Example:
Pepsodent in one of its advertisements said it is 102 % better than the
leading toothpaste, implicitly referring to Colgate.
Advertisements can have two purposes:

• To inform the product’s advantages and strengths over

competitors.

The emphasis is on highlighting relative benefits of own product or

services rather than showing the defects of the competitors.

Example: When Johnson and Johnson launched Whisper, they directly

publicized the new features in whisper which were not present in the
then popular brand ‘Carefree’ without ever naming carefree.

• To show superiority of one’s product and showing that the

competitors are inferior.
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It is in this category that the legal issues arise especially when the
claims made are not backed by proper proof or testing.

Example: During the recent Rin vs. Tide controversy Rin openly
declared that its product gave more whiteness than Tide Naturals.

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E.g. 1: PepsiCo again engages in comparative ads, takes pot shot at Coca-Cola
Read more at:
http://economictimes.indiatimes.com/articleshow/58037075.cms?utm_source=contentofinterest&utm_medium=text&utm_campai
gn=cppst

E.g. 2: Jet Airways Vs Kingfisher Airlines Vs Go air

Comparative advertising is, at its very best, not factual and boring, but
subtle and extremely clever!
Subliminal Advertising:
(of a stimulus or mental process) below the threshold of sensation or consciousness; perceived
by or affecting someone's mind without their being aware of it.)

https://www.youtube.com/watch?v=dPpqXHWBy8Q

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Subliminal Advertising is something that is perceived by the viewer or

listener; affecting her mind without her being aware of it. It is
something that is inaudible to the conscious mind but is yet perceived
by the unconscious mind.

Advertising is supposed to be impactful and clever without

overpowering. David Ogilvy, the modern Father of Advertising, once
shared this great quote: “A good advertisement is one which sells the
product without drawing attention to itself.” In short, be subtle.

And advertisements have a long history of being subtle. Whether

hiding a double-meaning in a logo or working some Photoshop magic,
subliminal ads definitely meet the criteria of clever — and the more
clever the ad, the better we feel about “getting” it — and the better
we feel about the product. Win-win for advertisers!
Following are a few examples of subliminal advertising:

E.G. a. Amazon

An oldie, but a goodie, many don’t see the subliminal message in

Amazon’s logo — the current logo has been in use since around
2000, and it doesn’t seem to be going anywhere. And why should it?
The cute A to Z arrow and grinning face work so well.
E.G. b. SFX Magazine

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SFX is a sci-fi magazine that began in 1995 — the mag focuses on sci-fi
and fantasy news and some subliminal messaging. Many sites have
reported that the SFX logo often appears different when women are
on the cover, making the reader view the title as “SEX.” How much
does sex sell? SFX has a circulation of about 26,000.

e.g. c. Tostitos

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The Tostitos logo is fairly well-known, but you may have missed the
subliminal message in it (and in every Tostitos ad that shows the
logo). Notice the two friends sharing chips and salsa? I did, too — and
I wondered why it took me this long to find them.

Negative space is the area that surrounds, or is not used by the main object of
an image. When designers are able to use and exploit negative space it makes
their final piece ten times more interesting and is able to grab your attention
brilliantly.

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Weasel Claim: (A weasel word is an informal term for words and phrases aimed at creating an
impression that a specific or meaningful statement has been made, when instead only a vague or
ambiguous claim has actually been communicated.)

The Weasel Claim is the most popularly-used advertising trick. It

involves using "weasel words," or words that are meant to trick the
audience into thinking the product is better than it really is. Words
such as "virtually," "fights," and "helps" are all weasel words.

The weasel word in the Web site advertisement below is "practically."

It makes you think that is cleans most household surfaces, although it
could only clean a few.
Weasel words are a safe way for ad creators to positively reinforce their product. These words
seem to reassure buyers that the product is the best quality available. Words such as “help”,
“improve”, and “virtually” allow customers to feel comfortable using the product, although it
may not necessarily be an accurate statement. An example of weasel words being put into action
in an everyday ad would be the Cascade dish detergent advertisement I have attached below.
The company claims it makes dishes “virtually spotless”. “Virtually” is a perfect weasel word
because it appeals to customers because everyone wants their dishes to look clean. It is safe
because although it makes them virtually clean, it does not necessarily mean they are actually
clean.

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Code of Ethics, Regulatory Bodies, Laws and Regulation – CSR, Public Service Advertising, Corporate
Advertising, Advocacy Advertising
Code of Ethics:

“Mr. ‘X’, a celebrity, has served notice for giving false and arbitrary
information in ‘y’ ad …”
“Advertiser is sued because of broadcasting absurd or disrespectful
ad …”
These sort of news we hear every now and then. More often, to
increase the sell and achieve success in short span of time, some of
the businesses/individuals make false promises, use unethical words,
or claim oneself to be better than their competitors. All these acts
are illegal.
Therefore, to avoid disputes or discrepancies, it is necessary to
promote reasonable and fair competition, and protect everyone’s

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right, dignity, and integrity. For this to happen, rules of

advertisement is legislated.
What is Code of Ethics for Advertisement?
Code of Ethics define the legal as well as ethical rules and norms of
creating and broadcasting an ad. It restrains an advertiser to promote
any product/service through unreliable, false, and immoral
information.
Such kind of language and information may damage someone’s
fundamental right, business reputation, and can stain their honor
and dignity. So, the law prevents any sort of ad that infringes on
public values, norms, and morality.
Further, it also discourages creation of any sort of ad that contains
disrespectful comparison with other similar products (either of same
nature or different) to maintain fair competition.
Purpose of Code of Ethics for Advertisement

While dealing with an advertisement, the most important point that

you need to take care is — you need to develop a healthy, promising,
and long-lasting public relationships.
The purpose of code of ethics is to:
• Maintain fair competition and protect the right of every
individual.
• Code of ethics help advertisers set ethical standards to govern
the ways of communication and develop self-regulatory ads.
• Ethical norms of advertising restrict ads that make false claims
and are not within the normal standards of decency.

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Regulatory Bodies:

Advertising regulation refers to the laws and rules defining the ways
in which products can be advertised in a particular region.

The purpose of the regulatory bodies would be to make sure that

advertisers and advertisements are –

• Truthful and fair to the consumers and competitors;

• Within the bounds of generally accepted standards of
public decency.
• Not used indiscriminately for the promotion of products,
hazardous or harmful to the society or to the individuals
particularly minors, to a degree unacceptable to the society at
large.

Some of the well-known regulatory bodies are:

• Advertising Standards Council of India (ASCI)

• Federal Trade Commission (FTC) for the United States
• Advertising Standards Authority (United Kingdom)
• Advertising Standard Authority (ASA) for South Africa
1. Advertising Standards Council of India (ASCI):
https://ascionline.org/
The Advertising Standards Council of India is a self-regulatory
organization for the advertising industry to promote, maintain,
monitor and uphold fair, sound, ethical and healthy principles and
practices of advertising for the protection of interest of consumers
and the general public. Established in 1985, ASCI’s role has been
acclaimed by various Government agencies. The Govt. bodies
including The Department of Consumer Affairs (DoCA), Food Safety

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and Standards Authority of India (FSSAI) and Ministry of AYUSH have

partnered with ASCI to address all misleading advertisements in their
respective sectors. The Supreme Court of India in its recent
judgement has also affirmed and recognized the self-regulatory
mechanism put in place for advertising content by ASCI.

ASCI & its Consumer Complaints Council (CCC) deal with Complaints
received from Consumers and Industry against Advertisements which
are considered as False, Misleading, Indecent, Illegal, leading to
Unsafe practices, or Unfair to competition, and in contravention of
the ASCI Code for Self-Regulation in Advertising. Under its National
Advertisement Monitoring Service (NAMS), ASCI proactively monitors
new print and all new TV advertisements released in the country
every month.
https://www.youtube.com/watch?v=bttaKS4sKR8
The CCC found that the claims made in the following advertisements
were misleading that exploit consumers’ lack of knowledge and lead
to widespread disappointment in the minds of consumers.

NESTLE INDIA LTD (NesPlus Multigrain Kokos): The advertisement’s

claims, “Stays Crunchy even in warm milk” was supported with data
that the product remains “crispy” for up to four minutes in warm
milk. Reference to this time period was missing in the advertisement.
The TVC and print advertisement was misleading by omission and
ambiguity, and in contravention of ASCI Guidelines for Disclaimers.

Perfetti Van Melle India Pvt. Ltd (Chupa Chup Sour Strip and Sour
Bite): In the advertisement, the specific visuals in the TVC show the
‘principal/teacher tossing the candy in the air and catching the candy
with his mouth’, and `teenagers tossing the candy in the air and
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catching it in their mouth’. The advertisement features dangerous

acts which are likely to encourage minors to emulate such acts in a
manner which could cause harm or injury. These depictions refer to
dangerous practices without justifiable reason, manifest a disregard
for safety and encourage negligence.

Hindustan Unilever Limited (Pepsodent Germi Check): The

advertisement showing frequent consumption of sugary food by
children (laddoos, ice cream, chocolates) and a voice over stating,
“jahan lagataar 12 mahiney sweet eating ho, wahan Pepsodent
Germicheck ki lagataar 12 ghantey cavity wale germs per dishoom
dishoom zaroori hai”, the pack visual claim in the advertisement “12
hour protection”, was inadequately substantiated. The advertisement
is misleading by implication and omission of other measures required
to be taken for protection from caries after eating sugary food.

Amazon.com Inc. (Gits Instant Dahivada Snack Mix): The price offer
“MRP Rs.130.00, Offer Price Rs.67.00, You Save Rs.63.00 (48%)” of
Gits Instant Dahivada Snack Mix 200g in the advertisement is false
and misleading, as the actual MRP of the product is Rs.65, at which it
is being sold.

United Biscuits Pvt. Ltd. (Mcvities Digestive biscuits): In the context

of a biscuit having maida as predominant ingredient, the packaging
claim, “Whole wheat at its heart”, is misleading by ambiguity and
implication. Also the claim, “Yeh habit hai fit”, is misleading by
implication that it is a good habit to eat biscuits and it would
contribute to physical fitness.

The Emirates Group (Emirates Airlines): The advertisement’s claim,

“We’re offering special introductory fares starting from INR 68,800 in

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Economy class offering an additional piece of luggage (total of 3

pieces) to Newark”, was not substantiated with supporting evidence
of the advertised offer being available and evidence of genuine
customers who have availed of this offer. Furthermore, the claim is
misleading.

Public Service Advertising (PUBLIC SERVICE ANNOUNCEMENT):

A public service announcement (PSA), or public service ad, is a
message in the public interest disseminated without charge, with the
objective of raising awareness, changing public attitudes and behavior
towards a social issue. Unlike traditional commercials, Public Service
Announcements (PSA) are primarily designed to inform and educate
rather than sell a product or service. They have been around for
decades.
The goal of a PSA is not to make a big sale, but rather to change public
opinion and raise awareness for a problem. The strategy here is to
educate first and provoke a feeling and reaction after that. However,
sometimes money is solicited, although usually not for profit.

A typical PSA will be for the latter, with topics including:

• Drinking and Driving

• Texting and Driving
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• Drug Addiction
• Smoking
• Education
• Alcoholism
• Voting right
• Child labor
• Child abuse
PSAs can be seen anywhere traditional ads are seen, including
television and radio, outdoor, online, direct mail and in print. Due to
the nature of the ads, many insertions are provided at a discount.
Structure of PSA

The public service messages are economical and inexpensive, but the
procedures and instructions for such kind of campaigns are the same
as for paid media. But the target of such kind of ads is the whole
community, so you have to maintain the reliability of the ad.

For launching PSA one has to consider:-

1. For employing such kind of ads first make brief analysis of your
message to deliver whether it is in the benefits of the overall
society. The purpose is to educate the people. So the first step is
to decide the message in brief way that you want to
communicate for response.
2. Then decide which advertising mode will be more beneficial in
public interest to deliver the message and with the help of which
broadcasting medium it will show significant result. Try to
portray the message in an informative way that will enlighten
the society in the long run.
3. Now is the time to select your target audience whom you want
to approach, whether that is for the awareness of whole
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community or for some specific audience that you want to

approach on the basis of different segmentation like age,
gender race or some other. This target market approach will
help you to retain your energy both in form of time and money.
Along with being economical it will also directly hit the minds of
the targeted audience efficiently and in an effective way.
4. The 4th step is to determine the budget. The main question is
that what budget is allocated by the state/government or non-
profit organization for that specific campaign. Being economical
and including any influential personality will it improve the
effectiveness of the message?
5. Because of huge competition in media, before starting any PSA
campaign meet higher authority, public service advertisement
representatives and directors to come to know their attention
level for that particular issue so that you may not waste your
time and resources. Due to tough competition not every PSA get
time and space to be broadcasted. Convince them about the
importance of the agenda or choose some other tool to launch.

Corporate Advertising (Institutional advertising):

Corporate Advertising is a form of institutional advertising focusing

not on a particular product or product range but on the organization
itself. The primary purpose is promoting the name, image, personnel,
or reputation of a company, organization, or industry.
Corporate Advertising focuses more on public relations than sales
promotion. Its objective is to build a firm's corporate image,
reputation, and name-awareness among the general public or within
an industry.

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Post the split between Hero and Honda, Hero changed its identity to be known as
Hero MotoCorp. This new identity needed to be told to people as the previously
known ‘Hero Honda’ had become a very well-known brand. To inform people of the
demerger and establish its new identity, Hero MotoCorp got the famous A. R.
Rahman to make an anthem for them. The television commercial struck a chord with
the viewers who started talking about the commercial and viewing it on the internet. A
concept called ‘Image Advertising’ was used in this where the motive of the
advertising was to change the image of the company from what it was to something
new.

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Five most important objectives of corporate advertising are:

1. Creating a positive brand image of the firm
2. Explain a view point to the public and to take a stand during controversial times
3. Engage and enhance employee morale
4. Maintain good relations with labour unions
5. Establish company identity and macro level positioning of the brand

Who Uses Corporate Advertising and Why?

Larger corporations which tend to be more diversified use corporate
advertising to establish a coherent reputation out of a variety of
activities, products and services.
Controversial companies like Cigarette companies, oil companies and
pharmaceutical companies use corporate advertising to deal their
image problems.
A good corporate advertising can clarify and enhance a company’s
reputation.

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In a closer look the companies invest in corporate advertising

campaigns for three main reasons:
• Increase Sales,
• Create a Stronger Reputation
• Recruit and Retain Employees

In order to produce successful image of corporate advertisements,

the following are a few guiding principles:

1. Set proper objectives & strategies.

2. Define the target.
3. Select appropriate media.
4. Develop correct message.
5. Control production & budget.
6. Evaluate the effects.

Recruiting: Corporate Image advertising are designed to attract new

employees / more candidates to apply for vacancies. The Wednesday
/ Thursday section of most English papers is an excellent place to see
this form of corporate image advertising. While one may notice the
ads in these papers and consider the images the firms are presenting.

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Generating financial support: Some corporate advertising is designed

to generate investments in the corporation. By creating a more
favorable image, the firm makes itself attractive to potential stock
purchasers and investors. More investments mean more working
capital, more money for R & D and so on. In most of these kinds of
corporate advertising; the attempt is to make a sale – and the product
is the firm.
SOCIAL CULTURAL AND ECONOMIC IMPACT OF ADVERTISING
A. Social and Cultural Role of advertising
There are some positive and some negative aspects of advertising on
the social ground. They are as follows.
1. Deception in Advertising: The relation between the buyers and
sellers is maintained if the buyers are satisfied with what they saw in
advertise and what they got after buying that product. If seller shows
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a false or deceptive image and an exaggerated image of the product

in the advertisement, then the relation between the seller and buyers
cannot be healthy. These problems can be overcome if the seller keep
their ads clean and displays right image of the product.
2. The Subliminal Advertising: Capturing the minds of the consumers
is the main intention of these ads. The ads are made in such a way
that the consumers don't even realizes that the ad has made an
impact on their minds and this results in buying the product which
they don't even need. But "All ads don't impress all consumers at all
times", because majority of consumers buy products on basis of the
price and needs.
3. Effect on Our Value System The advertisers use puffing tactics,
endorsements from celebrities, and play emotionally, which makes
ads so powerful that the consumers like helpless preys buy those
products. These ads make poor people buy products which they
cannot afford, people picking up bad habits like smoking and drinking,
and buy products just because their favorite actor endorsed that
product.
4. Offensiveness Some ads are so offensive that they are not
acceptable by the buyers. For example, the ads of denim jeans
showed girls wearing very less clothes and making a sex appeal. These
kinds of ads are irrelevant to the actual product. But then there are
some ads which are educative also and now accepted by people.
Earlier ads giving information about birth control pills was considered
offensive but now the same ads are considered educative and
important. But at the last, there are some great positive aspects
which help:

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■ Development of society and growth of technologies

■ Employment
■ Gives choices to buyers with self interest
■ Welcomes healthy competition
■ Improving standard of living.
■ Give information on social, economical and health issues
While there is general agreement that advertising is an important
social influence agent, opinions as to the value of its contribution are
often negative. A number of factors influence the cultural values,
lifestyles, and behavior of a society, the overwhelming amount of
advertising and its prevalence in the mass media lead many critics to
argue that advertising plays a major role in influencing and
transmitting social and cultural values.
Advertising is criticized for encouraging materialism, manipulating
consumers to buy things they do not really need, perpetuating
stereotypes, and controlling the media
Advertising Encourages Materialism: Many critics claim advertising
has an adverse effect on consumer values by encouraging
materialism, a preoccupation with material things rather than
intellectual or spiritual concerns. It surrounds consumers with images
of the good life and suggests the acquisition of material possessions
leads to contentment and happiness and adds to the joy of living.
It has also been argued that an emphasis on material possessions
does not rule out interest in intellectual, spiritual, or cultural values.
Many critics argue that advertising is a major contributing force to
materialistic values, others say advertising merely reflects the values
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of society rather than shaping them. They argue that consumers'

values are defined by the society in which they live and are the results
of extensive, long-term socialization or acculturation.
Advertising Makes People Buy Things They Don't Need: A common
criticism of advertising is that it manipulates consumers into buying
things they do not need. Many critics say advertising should just
provide information useful in making purchase decisions and should
not persuade. They view information advertising (which reports price,
performance, and other objective criteria) as desirable but persuasive
advertising (which plays on consumers' emotions, anxieties, and
psychological needs and desires such as status, self-esteem, and
attractiveness) as unacceptable. Persuasive advertising is criticized for
fostering discontent among consumers and encouraging them to
purchase products and services to solve deeper problems. Critics say
advertising exploits consumers and persuade them to buy things they
don't need.
Advertising and Stereotyping: Advertising is often accused of creating
and perpetuating stereotypes through its portrayal of women, ethnic
minorities, and other groups.
B. Economic Role of Advertising
1. Value of Products: The advertised products are not always the best
products in the market. There are some unadvertised products also
present which are good enough. But advertising helps increase value
for the products by showing the positive image of the product which
in turn helps convincing customers to buy it. Advertising educates
consumers about the uses of the products hence increasing its value
in minds of the consumers. For e.g. mobile phones were first
considered as necessity but nowadays the cell phones come with
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number of features which makes them mode of convenience for

consumers.
2. Effect on consumer demand and choices Even if the product is
heavily advertised, it does not mean that the demand or say
consumption rates will also increase. The product has to be different
with better quality, and more variety than others. For E.g., Kellogg's
cornflakes have variety of flavors with different ranges to offer for
different age groups and now also for people who want to loose
weight thus giving consumers different choices to select from.
3. Effect on business cycle Advertising no doubt helps in employing
more number of people. It increases the pay rolls of people working
in this field. It helps collecting more revenues for sellers which they
use for betterment of product and services. But there are some bad
effects of advertisements on business cycle also. Sometimes,
consumer may find the foreign product better than going for the
national brand. This will definitely effect the production which may in
turn affect the GDP of the country.
The economic aspects are supported by the Abundance Principle
which says producing more products and services than the
consumption rate which helps firstly keeping consumers informed
about the options they have and secondly helps sellers for playing in
healthy and competitive atmosphere with their self -interest.
THE IMPACT OF ADS ON KIDS
Advertising affects children and commercials influence children which
can be seen in their constant demands for products advertised on
television. There can be many negative effects of advertising on
children if parents are not careful.

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Although advertisements help us to become aware of the products in

the market, they have their negative effects also. Children today are
exposed to all types of advertisements on the various media like the
television, print media and internet as well. In fact, everyone is
bombarded by advertisements everywhere nowadays. Children in
general are more susceptible and get easily influenced by
advertisements.
Children are Defenseless:
Children are innocent and not so mature. When a marketer advertises
a product on television, they do not understand that it is a business
and their main aim is to sell. They do not understand that advertisers
try to push their products and market in such a way that children
want to buy it. Children take everything at face value and believe
without a doubt the messages in the advertisements. Advertisements
are made in such a way as to attract the attention of children.
Children do not understand it to be marketing strategy. Children are
an extremely vulnerable target audience and get easily carried away.
Junk Food Advertising and Children
Research has shown that junk food advertisements influence children
greatly leading to an increased demand for junk food by children.
When children watch young adults in good shape eating junk foods in
the advertisements they assume that it is good for the health. They
do not know that junk food is not good for health. They are unaware
of the fact that junk food does not contain nutritional value. They may
even think that by eating these junk foods they might become like the
thin and fit models in the advertisements.
A research conducted has shown that children increased their
consumption of junk foods after seeing these advertisements. They
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are seen to be so influenced by these ads that they almost doubled

their consumption of these unhealthy snacks and foods.
In a study conducted they exposed children to candy commercials. It
was seen that those children who were exposed to the candy
commercials were highly influenced. In fact, these children chose
candy over fruits as snacks. They preferred candy rather than a
healthy food like fruits. When the commercials were eliminated and
the children watched them less it had a positive effect. It encouraged
them to pick the fruits over the candy.
Recent statistics show that obesity of children under the age of five is
increasing at a high rate. Childhood obesity is on the rise and one of
the main reasons for this has been seen as excessive consumption of
fast foods and junk foods.
Not surprisingly, it has been seen that childhood diabetes is also on
the rise.
Resulting in the Nag Factor
Children may pester their parents for the products advertised. They
may insist on a particular pair of branded jeans only and be against
the other brands of clothing in the store. They may also insist on living
a life as portrayed in advertisements.
Children may make excessive demands on their parents for the
products they see in the advertisements. At times, they cry, pinch,
pull and will not keep quiet till the parents purchase the product.
Some parents who cannot control their children may give in to the
tantrums of children left with no choice.
When children see these advertisements, it gives a wrong impression
on their young minds and they start giving a lot of importance to
materialistic joys.

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WOMEN AND ADVERTISING:

Women in India have had a very categorically defined role since time
immemorial. Be it films, advertisements or theatre, women’s roles
have been defined on the continuum of being trivially significant to
being absolutely worthless.
Most ads which featured women showed typical Indian housewives.
Brands like Surf, Nirma, Dabur, etc made women endorse house hold
products. You would either see saree clad women doing some
household chore or buying some grocery items. A research showed
that Indian ads reflected stereotypical roles like women’s place is in
the home and they don’t take important decisions and they are not
considered significant.
https://www.youtube.com/watch?v=ALxiXkHxqCc

There has been a socio-cultural change in the society over decades.

Traditional gender roles, despite certain revisions, are still standard
and stereotypical in the large segment.
Cadbury introduced a new image of a woman when it re-positioned
itself as a product that can be consumed by people of any age group
especially youngsters and not only children. In trying to expand the
target audience, Cadbury portrayed a woman in a way that was never
seen in Indian Ads before.
The visual showed a cricket stadium where the match is about to end.
When India wins, the lead female runs to the pitch, to hug the
batsman. While she is running, she is sensually consuming Cadbury
and the expression of extreme pleasure is evident on her face. This ad
was a paradigm shift for both, Cadbury and existing image of women.
https://www.youtube.com/watch?v=e7JATezA1nY

Currently, Indian ads are a mix of traditional, sexual and progressive.

Traditional ads show women as the typical house wife and home-
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maker and wide. Sexual ads objectify women with a sexual focus.
(deos / body sprays for men).
Showing women as only housewives or mothers, can also have a
negative effect. It might convey the message that Indians are still
narrow minded and are not open to working women and their
changing life styles.
Thus, overall a combination of all aspects need to be perfectly
integrated into Indian ads for portraying the true and acceptable
image of women. Ads like Double Diamond where they show an
independent and confident woman, is the need of the hour. HDFC’s
“Sar Utha K Jiyo” is an example of upgrading woman’s image.
https://www.youtube.com/watch?v=WifWOUypMSQ

Airtel has wife playing the boss of the husband which was not really
accepted and appreciated in our society and culture. It still isn’t to a
greater extent. So, yes media has played an important role in forming
the woman’s image differently, time and again. And it will continue
doing so.
https://www.youtube.com/watch?v=T9BlI9nhqTE

**************

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UNIT 4

Introduction to Advertising Budget:

Budget is the financial statement of income and expenditure for a given
period of time. Therefore, advertising budget is also a statement of
expenditure on various advertising activities and of the income generated
from advertising in the same period.
The size of the budget is determined on the basis of the importance of
advertising in business. It also depends on different variables such as
availability of finance, competitor’s budget, return on investment etc. Apart
from the figures of income and expenditure, the budget must specify the
financial capability and allocation of funds into various activities. The above
factors determine the minimum level of expenditure on advertisement.
Methods of Preparing Advertising Budget:
Thought there are several accepted methods of arriving at the budget, the
individual brand budget will depend upon various factors such as marketing
objective, profitability and competitor's position. The various methods which
are used for setting advertising budgets are:
(1) Percentage of sales method.
(2) Unit of sales method.
(3) Competitor's expenditure method.
(4) Market share method.
(5) Task approach method.
(6) Brand history method.
(7) All you can afford method.
(8) The quantitative method.
(9) Share of voice method.

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(1) Percentage of sales method: The percentage of sales method is most

widely used. In this method advertising budget is linked with the total sales of
the previous year. The percentage may be fixed on the basis of the past
experience. This is the simplest method. The advantage of this method is that
it provides a realistic justification for expenditure on advertising, as it is linked
with the sales turnover. But this method suffers from a basic drawback that it
does not take into account any specific need of the market situation.
(2) Unit of sales method: In this method the calculation of the budget is made
as per the units sold or the total volume of sales taken place in the previous
period. For an example, the advertising expenditure per unit of sewing
machine is fixed at Rs. 10/- In the previous year. The number of sewing
machines sold may be 20,000 as result Rs. 2,00,000 will be the advertising
budget for the current year. This method is simple to plan and easy to execute,
but it lacks flexibility in the budget preparation. It has all the limitations of the
previous method.
(3) Competitor’s expenditure method: This method involves setting budgets
to match competitors’ outlays and funds. In this method, the company
monitors competitors’ advertising and follows it. This method is generally used
in markets in which advertising is heavier and it is felt absolutely important to
the companies not to be left behind the competitors.

(4) Market share method: In this method the advertising budget is decided on
the basis of the market share of the company in a particular product
category. For an example, a company may hold 25 per cent market share of a
particular product category. Here 30 per cent of total advertising expenditure
will be made available to that brand category. This is one of the easiest
methods of deciding the advertising budget.
(5) Objective method: This method is gaining popularity because it provides a
more logical basis for deciding advertising appropriations. It concentrates on
the marketing/ advertising objectives that pre-decided and ask these
questions.
Thus under this method a company launching a new product will decide on to
spend more money as it has to create immediate awareness amongst the

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consumers. The company may spend less on advertising for an existing well-
known brand. There is one problem involved in the use of this method of
selling the appropriation and that is: how does one determine just how much
advertising and what type of advertising will achieve the stated objectives.
(6) All you can afford method: Under this method the advertising budget is
decided on the basis of whatever money is left after all other fixed and
unavoidable expenses have been allocated. Though this method seems to be
illogical but conservative management use this method as it is safe and it
ensures that there is no overspending. New entrepreneurs follow this method
when they are short of funds and have no other options.
(7) Total Group Budget:

In case of multi-location and multi product line firms, a total amount is

decided as advertising and each strategic business unit receives a share
according to their needs. This method helps the group to segregate some
amount for corporate group advertising for building the image of the
organization.

Process / Steps in Advertising Budget-Making Process:

The advertising budget process includes following steps:
(1) Collection and data and preparation of budget,
(2) Presentation and approval of the budget,
(3) Budget execution, and
(4) Budgetary control or control of budget.
(1) Collection of data and preparation of budget: (can also link with other
elements of IMC)

The adv budget is subjected to various information, which the

research people provide to the agency personnel or to the
advertising department. On the basis of such information, the

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concerned person gets insight for decisions dealing with target

markets, new product introduction and media selection. The
decision on very important issue, ‘how much to spend on
advertising’ is taken after deciding upon the above variables.
(2) Presentation and approval of the budget:
The next step is to present the budget before the chief executive of the
company or the vice-president or the manager of marketing department for
approval. Before assigning his approval the concerned authority may consult
the firm’s chief executive or financial committee or the related department.
The chief executive and financial committee acts as a watchdog over the
company’s total fund and involve themselves in allocating the available funds
to the various activities according to their importance in the organisation.
The final budget should be evaluated in conjunction with the sales forecast. If
it is found satisfactory, the chief executive finally approves the budget
proposals.
(3) Budget execution:
The third step in budget marking process in the execution of the advertising
plan. Administration of advertising spending in a routine activity. The
important task undertaken for this purpose is the purchase of authorized time
and space over the media. The cost of advertising production such as making
television commercials is also a significant element in the overall expenditure
for advertising.
The advertising manager should be certain that the expenses are made in
accordance with the approved plan and in economical manner. He is to
monitor the expenses and should have periodical check to determine whether
the activities are being carried on smoothly and the funds are being properly
used. It is the duty of the advertising manager to evaluate the marketing
situation. If there are certain critical changes in the marketing situation, he
should be sure that the budgets have enough flexibility to allow programme
changes. The company may provide contingency fund for such activities for
certain fixed percentages of budget appropriation.

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(4) Budgetary control or control of budget:

The last step is to have control over the budget. It is the duty of the advertising
manager to see whether actual advertising expenditure coincide with the
budgeted expenditure or not. A procedure must be evolved which brings
information about current expenditure to the attention of the advertising
manager. The actual expenditure should then be compared with the planned
expenditure. If the budget is to serve as a control then both must run parallel.
Advertising is closely related to the other business activities such as personal,
selling, merchandising, sales promotion, packaging, sampling and public
relations. It is the responsibility of the advertising manager to see whether the
amount appropriated for advertising is being used only for advertising or for
any other activities closely associated with it.
Testing process for advertising effectiveness:
Meaning of Testing Advertising Effectiveness:
Testing advertising Effectiveness means measuring or evaluating the success
with which the advertising campaign has been carried out. Testing is used to
measure or assess the performance of specific elements of an advertising
programme or of the entire programme itself.
Testing facilities removal of deficiencies in advertising and fair and favourable
results are ensured.
There are primarily two broad types of advertising research viz. Pre-testing
and Post-testing. Pretesting is testing the advertisement before running it so
that the likelihood of preparing most effective ads, by allowing an
opportunity to detect and eliminate weaknesses or flaws increases. Post-
testing is done after the advertisement is run on the media. This is more
expensive and elaborate but most realistic as well because the
advertisements are tested in real life setting.

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When to test the effectiveness of advertising?(Ad Campaigns)

Testing of ad effectiveness is possible at any stage of advertising process. It

can be done before the advertising campaign begins or after the campaign is
fully run.

• Pre-testing gives the maximum safety as much is not lost;

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• concurrent testing makes him to lose little more as the advertising

process has advanced.

• Post-testing results in maximum loss if it fails as the whole show is over

and he gets the post- mortem report, as to what has happened.

Need for Testing Advertising Effectiveness:

(A) Need for pre-testing:
Test can be conducted before the advertising campaign is run or before the
advertising campaign is exposed to the final audience. This campaign is known
as pre-testing of the advertising. Pre-testing of the advertisement is needed:
(1) To find out clerical, grammatical, printing or technical errors.
(2) To make the advertisement effective, impressive and agreeable to target
consumers.
(3) To reduce wastage in advertising.
(4) To ensure that investment is done in a right way, as advertising is an
investment in the image of the brand and hence it must be done properly.
(5) To make communication more effective.
(B) Need for post-testing:
The tests, which are conducted after the advertising campaign or after the
advertisement is exposed to final audience in known as post-testing of the
advertisement. Post-testing of advertisement is needed:
(1) To find out the readership coverage.
(2) To find out the understanding of the message and the audiences belief on
the same.
(3) To measure the memory value of advertising.
(4) To assess the quality of co-ordination of advertising with other promotion
mix and marketing mix elements.

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(5) To appraise the relative effectiveness of different ads in terms of appeals,

ad concept and layout etc.
(6) To improve future advertising efforts.
Methods of Testing Advertising Effectiveness:
(A) Pre-testing Methods of advertising Effectiveness:
Checklist Method:
Checklist is a simple and extensively used method for pre-testing
advertisement. In this method a list of essential elements in an ideal
advertisement are first prepared. This is called the checklist. The checklist is
taken as a base for the analysis and scrutiny of the advertisement prepared. It
ensures that important feature is not omitted and that proper weightage is
given to all the elements in the advertisement.
The checklist usually contains the following points:
(i) Headline
(a) Create strong interest appeal?
(b) Sell or is it adequately attractive?
(c) Mentions benefits?
(d) Agree with the copy and illustration?
(e) Tell you enough but not too much?
(f) Persuade you to read the body copy?
(ii) Copy
(a) Gives too long or too short information.
(b) Start factually and interestingly?
(c) Convince you to buy the product?
(d) Includes the following elements’ prices, illustrations, coupon, slogan,
trademark?

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(iii) Illustration
(a) Attract the attention quickly?
(b) Creates interest?
(c) Ask for some sort of action?
(d) Tells what copy wants to say?
Advantage of Checklist Testing Method:
(i) Simple and speedy to operate.
(ii) Economical
(iii) Facilitates adjustments.
(iv) Accuracy.
(v) Proper weightage.
Limitations of Checklist Testing Method:
(i) Limited practical importance.
(ii) Quality differs.
(iii) Accuracy depends on persons who have prepared it (subjective)
(iv) Personal bias.
Consumer - Jury Survey:
In this method a group of consumers is selected. They are shown the layout
and the copy of the advertisement either directly or through film. The juror
(panel / jury member) is instructed to rank the advertisement in terms of their
likes and dislikes. The jury member rates the advertisement with reference to
the headline, illustration and the copy of the advertisement by comparison to
various advertisements. They may be asked the following questions.
(i) Which of these ads interest you the most?
(ii) Which of these ads can be easily read and understood?

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(iii) Which of these advertisements has more attention value?

(iv) Which of these advertisements would make you buy the product? and so
on.
This method can be conducted in two ways.
(i) Order of merit rating and
(ii) Paired comparison.
(i) Order of merit ratings: In this type of test the jurors are shown a series of
advertisements at a time. They are asked to place them in rank order. Each
rank is assigned certain points. The better the rank, the more will be the
points. The advertisement which secures the maximum number of points due
to better ranking will be selected for releasing in the media.
(ii) Paired comparison: In this method the jury member is shown two
advertisements at a time from the series of advertisements. He is asked to
select the better of the two and the procedure continues until each
advertisement from the lot is paired with every other advertisement.
(3) Sales-Area Test:
In this method the ad campaign is run on a small scale (on experimental basis)
for judging its effectiveness. The procedure is to run the campaign with
different appeals in separate comparable market for a particular period of
time. The impact of the campaign is evaluated in terms of comparing the
actual sales made in different markets.
The campaign of that market is treated as a best one where the sales are
highest. The same ad is used for ad campaign in the entire marketing area.
Sales-area-test when conducted properly provides authentic results because
the test is conducted in actual real-sales situation. However, it has certain
limitations such as, expensive, time consuming and problem in respect of
selection of cities maintaining comparable situation.
(4) Portfolio Test:

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Along with the regular advertisements some dummy copies are kept in a folio.
Then the consumer-sample sees the folio. The consumer is then asked about
what he has seen in each ads and is also asked to choose the ads that
attracted them the most.
(B) Post-Testing Methods of advertising Effectiveness: Post testing of an
advertisement is also known as ad tracking method. These tests are
conducted after running the ad campaign. The basic purpose of post-testing is
to provide an insight into the performance of ad campaigns and draw some
conclusions from it about the future conducting of advertisements. Post
testing deals with advertising exposure, perception, communication and
sometimes sales effect.
• Post-testing is done after the advertisement is run on the media.
• This is more expensive and elaborate but most realistic as well because
the advertisements are tested in real life setting.
The following are the post-testing methods of checking advertising
effectiveness.
(1) Inquiry and Coupon Response:
In the inquiry method the reader is offered something in return for his inquiry
letter. This is called as inquiry testing such technique is used in direct mail
and press advertising. This method can also be used in radio and TV
advertising.
(2) Readership Survey Test:
This test is conducted after the advertisement has been run to determine the
number of readers of the publication who have seen and read the specific
advertisement.
The method is as follows: A group of selected respondents are asked to
identify advertisements they have seen in the publications they read. They are
asked to classify the ads as noted, seen, associated and read most.
The respondents who have classified the ads as noted; tell the interviewer that
they remember seeing the ad in the particular issue of the magazine or copy of

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the newspaper. The purpose is to recollect the name of the company, the
trademark and the product.
The advantage of the readership survey test is that it provides comparative
ratings of different advertisement.
(3) Recall Tests:
In order to measure the effectiveness of the ad in terms of attention, interest
and memory value the recall tests are applied. In this test a group of
respondents who have seen the newspaper or magazine where the
advertisement had appeared is selected. A few questions are asked in order to
verify that the respondents have gone through the advertisement.
The respondents are the given a list of advertisements published in the
newspaper or magazine and they are asked to list each advertisement which
they have seen and remember. Questions can be asked on the message,
color, headline, etc. to find out the impact value.
The recall test may be aided or unaided. In aided recall testing, the
respondent is given some clue to assist him in recalling the specific
advertisement, which he has seen. In unaided recall testing, the respondent is
not given any assistance for giving answer or for supplying information.
(4) Sales Test Method:
In order to judge the efficiency of advertising campaign, the effects of
advertisement on sales can be used as a base.
Several cities are required to be selected as testing area for such sales
testing.
In order to find out the effectiveness of the ad campaign, the increase in sales
in both the cities will be collected and studied. The increase in sales of a
product will indicate the success of the campaign. In case there is decline in
the sales or if the sales do not increase, it indicates that the campaign has
failed.

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CURRENT TRENDS IN ADVERTISING:

Rural Advertising

Over a period of time there has been a substantial growth in the marketing
activities in rural areas. Hindustan Lever is the first company that comes to
mind while thinking of rural marketing. Amul is another case in point of
aggressive rural marketing. Some of the other corporates that are slowly
making headway in this area are Coca Cola India, Colgate, Eveready Batteries,
LG Electronics, Lux, Parle, Airtel, Lifebuoy, Philips, BSNL, Life Insurance
Corporation, Cavin Kare, Britannia and Hero Honda to name a few. These
brands and more are having several innovative advertising campaigns to
increase their brands reach the majority Indian population, which resides in
villages. With the tempo of development accelerating in rural India, coupled
with increase in purchasing power, because of scientific agriculture, the
changing lifestyle and consumption pattern of villagers with increase in
education, social mobility, improved means of transportation and
communication and other penetrations of mass media such as television and
its various satellite channels have exposed rural India to the outside world
and hence their outlook to life has also changed. Because of all these factors,
rural India in now attracting more and more marketers / advertisers.
According to a survey conducted by the National Council for Applied Economic
Research (NCAER), the purchasing power of the rural people has increased due
to increase in productivity and better price commanded by the agricultural
products. Rural marketing has become the latest mantra of most corporate.
Rural Marketing involves reaching the rural customer, understanding their
needs and wants, supply of goods and services to meet their requirements,
carrying out after sales service that leads to customer satisfaction and repeat
purchase /sales. Earlier, the general impression was that the rural markets
have potential only for agricultural inputs like seed, fertilizers, pesticides,
cattle feed and agricultural machinery. There is a growing market for
consumer goods as well. Marketers need to understand the psyche of the
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rural consumers and then act accordingly. They need to frame suitable
advertising strategy which involves more intensive personal selling efforts
compared to urban marketing.

The advertisement with the tag line – 'Thanda MatlabCoca-Cola' was targeted
at rural and semi-urban consumers. According to company sources, the idea
was to position Coca-Cola as a generic brand for cold drinks. The campaign was
launched to support CCI'srural marketing initiatives.

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Firms should refrain from designing goods for only urban markets and
subsequently pushing them in the rural areas. To effectively tap the rural
market, a brand must associate it with the same things the rural people do.
This can be done by utilizing the various rural media to reach them in their
own language and in large numbers so that the brand can be associated with
the rituals, celebrations, festivals, melas and other activities where they
assemble. According to the Indian Market Research Bureau, around 8000 such
melas are held in rural India every year. Rural markets have the practice of
fixing specific days in a week as market Days (often called - Haats) when
exchange of goods and services are carried out. This is another potential low
cost distribution channel available to the marketers. Also, every region
consisting of several villages it- generally served by one town (termed as -
Mandis or Agri-markets) where people prefer to go to buy their durable
commodities. If marketing managers use these sources, they will easily be able
to cover a large section of the rural population. Firms must be very careful in
choosing the vehicle to be used for communication. The audio visuals in the
advertisements must be planned to convey a right message to the rural folk.
The rich, traditional media forms like folk dances, puppet shows, etc., with
which the rural consumers are familiar and comfortable, can be used for high
impact product campaigns.

Example 1 Escorts Company believed in deeper penetration of their product -

bike in rural areas of India. They did not rely on TV or press advertisements,
but rather concentrated on focused approach depending on geographical and
market parameters like fairs, melas etc. Looking at the kuchha roads of village,
they positioned their bike as tough vehicle.

Digital Advertising:

Advertising has evolved over a period of time. It is no longer restricted to print

publications, static billboards, radio, and television. Modern technologies have

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opened the door to a whole new era of advertising—digital advertising. Digital

advertising allows marketers and advertisers to reach and appeal to their core
audiences in new ways and with more precision. It further provides endless
opportunities for marketers and advertisers to engage their customers
personally and across channels. Digital advertising, also called Internet
advertising ("Internet marketing"), is when businesses leverage Internet
technologies to deliver promotional advertisements to consumers. Digital
advertising includes promotional advertisements and messages delivered
through email, social media websites, online advertising' on search engines,
banner ads on mobile or Web sites and affiliates programs. Digital advertising
basically refers to marketing media that is digitally displayed. Digital
advertising technology exists on the Internet, on smart phone and hand-held
media devices, and even on automobiles and billboards. Businesses and
product manufacturers use digital advertising to build or maintain a brand
image and market products and services to consumers. Advances in Internet
technology have evolved the business world in a number of ways, including
taking advertising techniques to a new level.

Some examples of digital advertising are:

Electronic Billboard: Electronic billboards are the digital version of traditional

billboard advertisements. These billboards display a variety of digital
advertising messages. They are targeted because they provide advertisers with
the opportunity to change advertising messages throughout the day. Digital
billboards are cost-effective because several advertisers share the expense
with rotating advertisements. They are flexible because new designs and
advertising messages can be changed within a day or two.

Web -Based Marketing Another example of digital advertising is web-based

marketing. This form of advertising targets Internet users while they visit
websites. Pop-up advertisements appear as a new window and display an
advertising message for a product or service usually related to the original

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website. Video advertisements are another form of digital web-based

advertising that plays brief "commercials" before the video loads, during a
break in the video or at the conclusion of the video. Major search engines offer
video media options to advertisers. :

Viral Marketing : Viral marketing is a form of digital advertising businesses use

to spread the word about their brand. Advertising messages are spread
digitally through email and other online media. This form of advertising
encourages existing customers to tell others about a product, service or
company. The intent is for word to spread like a "virus" to others within a
social group of network.

Audio Advertising: Audio advertising is a form of digital advertising that

targets consumers through Podcasts, Internet radio and live streaming digital
radio. Podcasts are digital audio files such as an MP3 that users download to a
computer or personal media player.

Advertorial / Content Marketing:

Definition: An advertorial is a form of advertisement in a newspaper,

magazine or a website which involves giving information about the product in
the form of an article. Usually, a brand pays the publisher for such an article.

Description: Advertorials are advertisements that appear in the media, be it

magazines, newspapers or websites. Advertorials are paid content.

They are used by marketers to educate prospective consumers about the

features of a product. It can be used to target a specific set of people by
choosing the right medium to publish the advertorial.

Retail / Local Advertising:

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The manufacturer has little concern where its product is purchased. The goal
of the retail advertiser differs from that of national advertiser. The retailer
advertises to encourage patronage by consumers and build store loyalty
among them. The retailer is not particularly concerned with any specific brand.
In case the retailer shows some concern (the retailer wants to clear stocks of a
particular brand), then the message in effect is “buy brand ‘B’ at our store.”
General approach in retail advertising is “buy at our store.” The sale of any
specific brand is not the concern of retailer unlike the national advertiser.
Unlike national brand advertising, which typically is designed to increase
awareness and general interest for a brand or product over time, retail
advertising is meant to drive store traffic and increase sales immediately.
Products advertised in retail ads are intended to be purchased that day.
The retailer must compete in one of the most competitive arenas of business
and move large volumes of products. Besides, the retail advertising must
convey the image of the type of store to particularly attract certain types of
consumers. To achieve these objectives, retailers often communicate price
information, service and return policies and the range of merchandise
available. Some retailer ads are specifically aimed at building the store traffic.
The main purposes of retail advertising is outlined below:

1. Selling the Establishment: To sell the establishment, attract customers to

the premises and, in the case of a shop, increase what is known as ‘store
traffic’, i.e, trying to increase the number of people passing through the
shop. If they can be encouraged to step inside – they may possibly buy
something which they would not bought otherwise.
2. Selling exclusive or own labeled goods: Some retail distributors are
appointed as dealers for certain make. Example is some supermarkets sell
their ‘own labelled goods’ which manufacturers pack in the name of the
supermarket. Some large departmental stores have a special brand name for
all their products, invariably they will be cheaper and they complete with
national brands. Competition between national and own-label brands is
intense, and there is always a risk that the national brands will be de-listed in
favour of a store’s own labelled products. Own label products are usually
made to the retailer’s own specifications or recipes, and are not simply
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replicas of existing national brands. All the retail outlets are likely to use
advertising to promote sale of their stock.
3. Clearance Sale: To clear the stock of the shop, such as promoting products
which are seasonal, special offers could be made. Examples are sale of
certain products during winter or summer. Sale of air conditioners during
winter and water heaters during summer.

Generally, the retailer works in a narrowly limited geographic market. This

allows him to focus his advertising messages to the likes, preferences and
buying habits of targeted audience. The retailer advertises to precipitate
relatively quicker response to most of this local advertising, while the national
advertiser’s prime interest is in establishing long run favourable attitudes
and building brand equity.
Lifestyle Advertising:
A lifestyle brand tries to sell an image and identity, rather than a product. They
want people to associate their brand to a certain lifestyle.
When lifestyle brands advertise, they tend to focus on what kind of person
would buy the product, rather than the product itself.
Lifestyle brands try to convince consumers that their brand relates and have
the same values and aspirations as you do. Their product is a “must-have”.
Many luxury brands (Chanel, Gucci), are associated with life-style branding
because their advertisements display sophisticated people living a life of
luxury.
• Lifestyle advertising targets certain cultural and social groups when
advertising.
• People who live a certain lifestyle will automatically be attracted to
advertisements that display their interests.
• If they see an advertisement that displays similar interests to theirs, they
will be more likely to purchase products from that brand.
AMBUSH ADVERTISING / AMBUSH MARKETING:

Ambush marketing is different from Gaurella Marketing.

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Ambush marketing or ambush advertising is a marketing strategy in which an

advertiser "ambushes" an event to compete for exposure against
competing advertisers.

Ambush marketing is a popular marketing technique that raises awareness of a

brand in hidden ways.

(Literal meaning of ambush: a make a surprise attack on your rival from a

concealed position)

So ambush marketing is done by rival companies which try to associate their

products with an event in the minds of the potential customers without having
to actually pay the sponsorship expenses.

It may come in several forms but the ultimate goal of the companies involved
in ambush marketing is to draw the attention away from the rival brand to
themselves.

Ambush Marketing is a marketing strategy where a company ambushes its

competitor’s marketing efforts to gain an upper hand in terms of exposure by
stealing the spotlight from him. These activities usually capitalize on resources
and efforts of other (competitor) brands.

To make it more clear – When a company capitalize on the resources bought

by some other company, who is not aware of it, to promote itself (or any of its
products), it’s said to be using ambush marketing strategies.

Some ambush marketing campaigns:

https://www.insightssuccess.in/ambush-marketing-examples/

(Flipkart vs. snapdeal)

Old example but brilliant one: When Coke became the official partner of the
1996 cricket world cup, Pepsi took a dig at it with the "nothing official about it"
campaign.

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Ambush marketing is done not only to promote your own brand but also to
show that you are somehow better than the rival.

130 year old Mercedes Benz wished BMW its 100th birthday

Mercedes Benz effectively capitalized on the event of BMW’s 100th birthday

and wished its competitor on social media while advertising for itself.

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Global Advertising (under the umbrella of global marketing) (Already done in

Unit 1)

Global and international advertising are alternative communication strategies

that companies employ to drive demand for goods and services in foreign
markets. International advertising strategies are tailored to reflect regional,
national, and local market cultural differences and preferences.

Technology has standardised world tastes, wants, and possibilities into global
marketing proportions, which allow for world standardized products.
However, not everyone agrees with Levitt's global marketing theory,
particularly with respect to advertising. Many argue that products and
advertising messages must be designed or at least adapted to meet the
differing needs of consumers in different countries.

CAREERS IN ADVERTISING

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Advertising is a creative and growing field and now with globalization and
technological revolution, there are several challenges faced by people working
in this field. With the rapid change in the advertising and marketing sphere
due to new technology and social media growth, there are several career
opportunities like:

Careers in Media and supporting firms

The Indian media Industry is growing rapidly and creating a place for itself in
international markets too. Film, television, advertising and public relations
have witnessed a remarkable growth in last few years. With the appearance of
the internet, other areas have popped up like digital marketing and content
writing. In fact, media is one of the most powerful tools to educate people and
even bring about behavioral changes. A career in this field offers ample job
opportunities and growth. The top most promising career options in the
Media and Supporting Industry are

1. Career as a Journalist Here a person can choose between print, electronic

or online media. One can become a journalist or a news anchor for TV or
Radio. A print, broadcast or online journalist presents news on television,
radio, newspapers, magazines or on news websites. The broadcast area the
role of a news anchor has a glamour quotient attached. Their main work
profile is to compile all news and present it in a simple but effective manner.

2. Career as an Advertising Professional Advertising is about brand

communication. And, the purpose is to sell. It's like we are talking to someone,
convincing him/her to buy our product. In this case, it may be in an online ad
too. One has to remember that no matter what medium they use, one has to
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be persuasive, liked, and sense to the consumer. The world of advertising is

exciting and there are different areas that one can choose from: account
servicing, account planning, creative services, which includes copy writing and
art direction. One can get opportunities to involve in new product
development, product launches, advertising communications, consumer
research, packaging updates and consumer promotions. And some of the
roles that open up are - client servicing executive/Manager/Director, Copy
Executive/Manager, Creative Director, Account Planning
Executive/Manager/ Director.

3. Career as Public Relations Public relations involves monitoring and

evaluating public attitudes and maintaining mutual relations and
understanding between an organisation and its publics which could include
shareholders, government, consumers, employees and the media. Public
relations managers are in demand in all media houses, big corporates and
even in public and private sectors. They are responsible for brand building and
effective communication. Public image is important to all organisations and
prominent personalities. Here, a recent entrant is celebrity management.
Many hotels, .ravel agencies and private consultancy firms hire PR managers
to build an image for their companies and to increase clientele. The role of a
public relations specialist is vital in crisis situations when correct and timely
transmission of information can help save the face of the organisation.

4. Marketing/ Brand Professional Marketing and advertising careers are just

as dynamic and diverse. A brand professional is a link of communication
between brands and their customers with the goal of selling the product or
service. One can get into the planning and execution of marketing plans for
many leading Indian and international brands. Marketing careers are ever-

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evolving with the growth of new media and online opportunities. The world of
advertising also has to keep up with the times and provides a stimulating
environment. The career options are : Marketing Executive/ manager /
director or one could be a brand manager. With the onset of technology, the
digital marketing landscape has emerged and one can be fitted here too.

5. Career as Script Writer With television serials grabbing eyeballs and ads
trending, many young people do want to get into such creativity. One can
become a script writer. We all know that a script is the soul of any programme
or movie. We cannot imagine any TV show, movie or even an ad without a
good script. A script writer is not even responsible for writing script but also
responsible for developing storyline, creating characters and write dialogues.
To become a good script writer one has to be a good observer and learner, and
should have the ability to develop ideas from day-to-day life to unfurl the
requirement of the story. The success of any movie or TV show depends on
upon how well the script is written.

6. Career in Events Management Event management is a fast moving industry

today, with events being hosted almost daily - like weddings, musical shows
and so on. So, making a career in event management is a good choice.
Organising a perfectly synchronised, well-planned. Well-conducted and
memorable event, requires the supervision and services of well-trained and
experienced event professionals. The success of an event manager depends on
upon how well he organises the event and how effectively he is able to achieve
both event and marketing objective s.

7. Career as a Content Writer: A website writer or web writer is a person who

specialises in providing relevant content for websites. Every website has a
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specific target audience and requires a different type and level of content. The
content should contain words (key words) that attract and retain users on a
website. This involves writing content for online sites on a variety of topics. It
may also involve creating blogs and maintain a regular flow of content to
different blogposts. Content writers produce the content for many different
types of websites, social networks, e-commerce sites, news aggregators and
college/company websites.

Role of Advertising Account Executives

The Account Executive (also known as an AE) in an advertising agency is often
referred to as the "middle man" between the client and the creative
department. This is quite the understatement, as a great account executive is
the glue that holds the entire project together. Account executives might focus
on a single client or work on behalf of several at once. To ensure client
requirements are met, account executives need to work closely with
colleagues, including media planners and buyers, copywriters, designers and
administrative staff. Advertising account executives work within advertising or
multi-service agencies acting as a link between clients and the agency. They
are responsible for the coordination of advertising campaigns and therefore
communicating clearly to all those involved. They must understand their
clients' needs and objectives and liaise closely with them throughout
campaigns, often on a daily basis. They manage administrative and campaign
work and ensure that advertising projects are completed on time and on
budget.

Topmost Advertising Agencies:

1. Ogilvy and Mather Limited:
2. JWT India:

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3. Mudra communications Pvt. Ltd:

4. Lowe Lintas and Partners:
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