Social & Ethical Issues in Advertising

Since advertisement is for the society, it affects the society in multiple ways. Society

is worried with how the advertising is done and its effects on it. Advertising is
condemned because of deception, manipulation, bad taste and manipulating

consumers against their will. It is supposed that the expressiveness of the

advertisement has an impact on the value system of the society. The consumer is

betrayed when the benefits he perceives are far below his expectations. This could be
due to misrepresentation or improper importance on attributes. Advertisement as a

whole should not be deceptive. It should not hide material facts and give a true picture
of the advantages, the rate and the offer.

For example:
“Buy Z brand of toothpaste with a trip to Europe”
The Advertisement is misleading it should be written as,

“Buy Z brand of toothpaste with chance of a trip to Europe”

Let us talk about Ethics and Advertisements

Business ethics is the behaviour that business adapts to in its dealings with the world.
The ethics of a particular business can be varied.

Many businesses have earned a bad image just by being in business. Business line is
adopted to earn money; making money is not incorrect in itself. It is the way in which

some businesses do themselves that arises the question of ethical behaviour.

Advertising is condemned of influencing the buyers to make a decision against their

will or interest; Advertisements also play with the sub-conscious mind, motives of
consumers. The appeals created by the advertisements are sometimes so strong that
the consumer fully believe in them, does not apply their mind to make a choice, and

buys it without much consideration.

Advertising has also been condemned because of:

• Advertisement of harmful products without crossing the legal limits like
advertisement of Soda having same brand as of whiskey.
• Majority of exposure scenes (not suitable as children also watch them).
• Advertising strategy of extreme repetition of the advertisement.
• Accused of offering too much importance to the material facets of life.

• It encourages certain individuals as stereotype. Mostly women are always

displayed in the role of a mother or a homemaker, in place of business

executives except in few cases. Similarly, business executives are displayed

with a cigarette. Women are shown to display a romantic situation.

• Excess advertising on children is a great matter of worry.

• Due to advertisement price of product tends to rise thus provides sensitivity to

price. It shows demarcation among closely resembling brands.

• Advertisement creates unnecessary fear among consumers. Advertising create

insecurity by making people worried about their health like tooth decay, body
odours, lack of memory etc.

Impact of advertising on society

Advertising bears several responsibilities towards society. Advertising informs the
people so that they can be conscious of products and make informed choices among

varied products or brands. Advertising also helps businesses in assisting them to sell
their products. However, while fulfilling its role as a dream merchant, advertising has

also been in the circle of controversy of the many ills that it delivers to society. It is
accused of promoting materialism and consumption, of causing us to buy items for

which we have no need, of taking advantage of kids, of influencing our behaviour,

using sex to sell, and usually contributing to the damage of our social system.

Advertising does not operate in a vacuum but in a market environment where

different forces like consumer requirements, business interests and government laws
are at work. It is an influential force in terms of its expressiveness and functions a

critical social role. In addition, the high visibility and pervasiveness, it creates criticism
and controversy. Much of this controversy comes from the fact that advertising is used

more as an influential communication tool thereby generating serious impact on the

tastes, values and lifestyles of society. As consumers, when we purchase a product or
service, it is probable a decision we take based on our needs and wants.
In spite of the above condemnation, the advertisement has come to play its role in the
system. It sends massages and makes goods available. It encourages purchases and

inspires to consume. It is a necessary part of marketing tactic. It promotes various

social issues and brings awareness in the public like regarding family planning, health

care, avoidance of accidents are the major topics. If certain system, policy and
regulations are followed, advertising benefits are greater than its condemnation . The

Advertisement must be legal with moral, sincere, truthful and civilized. This will
make sure the expansion of the advertising both in India and abroad.

Regulation of Advertisements
Introduction
The Central Consumer Protection Authority (CCPA) under the Department of Consumer
Affairs has issued ‘Guidelines for Prevention of Misleading Advertisements and Endorsements
for Misleading Advertisements, 2022’. The Guidelines are a progressive step towards
regulation of advertisements in India. They aim to curb misleading advertisements and protect
the consumers. The guidelines seek to ensure that consumers are not fooled with
unsubstantiated claims, exaggerated promises, misinformation and false claims.

About the CCPA and the Guidelines

The CCPA has been established under Section 10 of the Consumer Protection Act, 2019. Its
functions include: (a) Regulating matters relating to violation of the rights of the consumers,
unfair trade practices and false or misleading advertisements which are prejudicial to the
interests of consumers; (b) To promote, protect and enforce the rights of consumers as a class.

The new guidelines related to advertisements have been notified in exercise of the powers
conferred by Section 18 of the Consumer Protection Act, 2019 to CCPA. The guidelines will
be applicable to advertisements published on all platforms like print, television and online.

Misleading advertisement has already been defined under Section 2(28) of the Consumer
Protection Act, 2019. It includes any advertisement with: (a) False description of a product or
service; (b) False guarantees misleading the consumers; (c) Express representation
constituting unfair trade practice; (d) Deliberately not revealing the essential information about
the product.

What are the emerging trends in advertising?

Digital Media Marketing: The lockdowns and restricted movement increased the use of social
media. The demand for content has also increased commensurately. As a result, social media
users are paying more attention to posts regarding brand endorsements.
Surrogate Advertising: The banned product (like alcohol or tobacco) rather than being
projected directly to consumers is veiled behind another product (like Music CDs or pan
masala), either by having the same brand name or similar practices. The aim is to ensure that
whenever there is a mention of that brand, people start associating or recalling it with its main
product.

Bait Advertising: It is a deceptive and insincere offer whereby the advertiser does not intend
to sell the advertised product or service at the unusually low advertised price. The intention is
to increase traffic, then switch the customer to a higher priced item when the customer is about
to make the buying decision or visits the store. This is often accomplished by inducing
customers to buy higher priced models by disparaging the less-expensive product.

Online Gaming Advertising: There has been a substantial rise in online gaming and real
money winning games in India, perhaps owing to the ease of accessibility to smart phones and
the internet.
Ambush Marketing: It is also called ‘parasitic’, ‘guerrilla’ or ‘moment’ marketing. It occurs
when a brand exploits the goodwill of an event with the intent to unfairly piggyback or gain
market benefits from that event, despite having no financial or official sponsorship or
involvement. Recently, multiple brands were seen engaged in ambush marketing in relation to
the Tokyo Olympics 2020 (2021) event.

What are the salient provisions of the new guidelines?

Non-misleading and valid advertisement: An advertisement can be considered non-
misleading if it contains true and honest representation of goods. Genuine advertisements do
not exaggerate the accuracy, scientific validity or practical usefulness or capability. In case of
unintentional lapse, the advertisement may still be considered as valid if the advertiser has
taken prompt action in letting the consumer know the deficiency.

Surrogate advertisement: The guidelines completely disallow any attempts to advertise

products that are prohibited by law.
Advertisements Targeting Children: The guidelines forbid advertisements from exaggerating
the features of a product or service in such a manner as to lead children to have unrealistic
expectations. It also forbids any health or nutritional claims or benefits without being
adequately and scientifically substantiated by a recognized body.
Further, advertisements targeting children shall not feature any personalities from the field of
sports, music or cinema for products which require a health warning (for such advertisements)
or cannot be purchased by children. The guidelines also require that advertisements including
‘chips, carbonated beverages and such other snacks and drinks’ shall not be cast on channels
exclusively meant for children.

Disclaimer in Advertisements: Disclaimers in advertisements, in a way, limit the

responsibility of the company. The guidelines stipulate that disclaimer shall not attempt to hide
material information with respect to any claim made in such advertisements. The omission or
absence is likely to make the advertisement deceptive. A disclaimer shall be in the same
language as the claim made in the advertisement and the font used in a disclaimer shall be the
same as that used in the claim.
Duty on Manufacturer: The guidelines also impose duties on the manufacturers, service
providers and advertising agencies. They shouldn’t claim and make comparisons in an
advertisement which relate to matters of objectively ascertainable facts. Moreover, the
advertisement must be framed to gain the trust of the consumers and not to “abuse the trust of
consumers or exploit their lack of experience or knowledge”.

Due Diligence by Endorsers: The guidelines state that the endorsements should reflect the
genuine, reasonably current opinion of the endorser regarding their representation. Such
endorsement must be based on adequate information or experience with the goods or services
and must not be deceptive. Foreign professionals are barred from making endorsements in all
circumstances where Indian professionals are barred.

Penalties: CCPA can impose penalty of up to INR 10 lakh on manufacturers, advertisers and
endorsers for any misleading advertisements. For subsequent contraventions, CCPA may
impose a penalty of up to INR 50 lakhs. The Authority can prohibit the endorser of a misleading
advertisement from making any endorsement for up to 1 year and for subsequent contravention,
prohibition can extend up to 3 years.

What is the significance of the New Guidelines on Regulation of Advertisements?

First, the guidelines provide better clarity to the existing rules and provisions. It defines ‘bait
advertisement’, ‘surrogate advertisement’ and clearly provides what constitutes as ‘free claim
advertisements’. Further, the enforcement issues in existing advertisement laws have been
addressed by the guidelines in as much as it imposes severe penalties.

Second, it will help in upholding and protecting the rights of consumers like right to be
informed, right to choose and right to be safeguarded against unsafe products and services.
These rights are often violated by sellers through misleading advertisements.
Third, several preemptive provisions have been laid down on advertisements targeting
children. This has been done keeping in view the sensitivity and vulnerability of children and
the severe impact advertisements make on the younger minds.

Fourth, the guidelines perform an essential function in bringing the Indian regulatory
framework at par with international norms and standards. Further, the government is
expected to come out with guidelines in consultation with industry representatives to curb fake
reviews on e-commerce platforms.

Fifth, it gives a framework for the industry stakeholders to prevent misleading ads even by
mistake.

What are the concerns associated with the Guidelines?

First, surrogate advertisements have been banned. However, there is ambiguity regarding
brand extensions. A brand extension is when a company uses one of its established brand
names on a new product or new product category. The Guidelines recognize advertisements of
Brand extensions (provided they comply with other guidelines), there is no objective criteria
prescribed to determine the validity/genuineness of such advertisements. This might have an
impact on advertisement and thus sales of many branded products.

Second, in case of any ambiguity or dispute in interpretation, the decision of CCPA shall be
final. This might lead to increased litigation and put further pressure on the Judiciary.
Third, the opinion is divided over the provisions related to celebrity endorsements vis-a-vis
due diligence. Some experts believe, celebrities lack technical knowledge to undertake due
diligence. Other critics argue that the penalty (INR 10 Lakh) is too small for big celebrities who
charge crores of rupees for endorsements.
Fourth, a lot of claims made by advertisements are unverifiable (e.g., products may claim they
make the child stronger, or taller). It is difficult to define what is misleading. The ambiguity
might increase consumer complaints.

What lies ahead?

First, some provisions of the guidelines are bound to face litigation in courts. For instance,
guidelines prohibit advertisements of chips, carbonated beverages and such other snacks on
exclusive children’s channels. It remains to be seen whether it can survive a challenge under
Article 14 and Article 19(1)(g) of the Indian Constitution. Many experts believe that it
impinges upon the right of the channels such as Cartoon Network to earn revenue from such
advertisements.
Second, the advertisers, too, must take a cue from the guidelines and impose self-regulation to
comply with the same.

Third, while the guidelines must be hailed as a step in the right direction, there is a definite
need to ensure their implementation in the spirit they have been drafted with. This will require
strengthening of consumer courts at District, State and National level coupled with massive
awareness campaigns on the lines of Jago Grahak Jago.

Conclusion
The latest guidelines aim to protect consumers’ interest by bringing in more transparency and
clarity in the way advertisements are being published. They will enable the consumers to make
informed decisions based on facts rather than false narratives and exaggerations. The
guidelines are pathbreaking because they fill significant consumer protection gaps while
explicitly outlining advertiser duties.

Brand Extension
A brand extension is a marketing strategy that some companies use to grow their core business.
A brand extension strategy involves using an established brand to launch a new product. The
new product isn’t related to the brand’s flagship product.
Brand extension turns brand equity into an effective tool. Companies that attempt brand
extension rely on their loyal customer base to see success with new products. In most scenarios,
brand extension is a risk. However, when a brand extension product is successful the company
reaps many benefits.
There are many examples where a new product category fails during a brand extension. Not all
customer bases will blindly buy new products from a brand they’re loyal to. There are
characteristics that successful brand extensions have as well as lessons that can be learned from
failed brand extensions.

Successful Brand Extensions

Brand extensions are risky. But even with risk on the horizon, certain strategies increase the
chances of success.

 The extension product should be at least somewhat related to the brand’s original
product category. There should be a logical connection between the existing product
and the new product.

 It focuses on niche market segments that weren’t originally covered by the company.
 Brand values are identified along with customer perceptions. These are integrated into
a plan that aims to increase value to the customer while maintaining core values.

A successful brand extension diversifies company offerings. Allowing the company to make
money through different channels and increase overall profits. When brand extensions go well,
they go very well. You can expect other benefits like:
 Improved brand reputations – When brands are known for a range of products, they’re
able to build a larger loyal customer base.

 Increased brand awareness – Some customers will know the brand for a specific line of
products, while others will know it for extended products. The two may overlap, as
well.

 Increased market share

Failed Brand Extensions

Sometimes, even with the best planning and strategy, brand extensions fail. There are some
commonalities between failed brand extension campaigns.
 Too much focus on offering a variety of products. They release unrelated products
instead of offering complementary products. When a company does this, they tend to
offer a product extension that doesn’t apply to their brand. This can have disastrous
consequences.

 Not performing an extension evaluation or consumer evaluation. Not keeping your

target customer in mind is a big mistake.
 Extending with a product that creates a negative association

 Not lining up the product with your brand identity

A poor brand extension can permanently damage a company’s reputation. It can make
customers perceive the company in a negative light. Some will be considered cheap, while
others may be called greedy. If the release is bad enough, the company can actually fail.
Types of Brand Extensions
There are several different kinds of brand extensions that a company can attempt. The chosen
strategy largely depends on the type of customers that a brand has.

Line Extension
As the name implies, a line extension is the release of an entirely new product line. The new
line exists within a product category the company carries and the brand’s customers are already
familiar with it. This means the company doesn’t have to risk entering a new category. Instead,
they’re just adding a new line of products that may be more successful than their current
offerings.
Because the customer base is already familiar with the brand’s category, this extension will
likely do well. For the most part, line extensions are simple. It may include new flavors, colors,
or scents, depending on the product. This type of brand extension carries the least amount of
risk for a company.

Complementary Product Extension

Another successful brand extension strategy focuses on complementary products. A
complementary product is a new product that works with the brand’s current products. Often,
complementary products are accessories for main products.
The extent to which products are considered complementary depends on the industry. In
sporting goods, complementary products may be a different kind of apparel than what the
company normally makes. For toothpaste companies, toothbrushes and floss could be
considered complementary products.

Customer Base Extension

This brand extension strategy is almost exclusive to the largest companies in the world. A
customer base extension requires a parent company or brand, and then sub-brands. Essentially,
the parent company releases a brand new product line under its brand. This expands the parent
company’s customer base and establishes a completely new brand.
There have been instances in which parent companies have released a brand under a customer
base extension. That brand can then act independently, and branch out even further. This is an
excellent business strategy for increasing a company’s market share.

Company Authority Extension

Extending company authority requires a level of success that not all companies can claim.
Company authority extension requires a company to have a large, general industry authority.
The technology industry is a common area to find this. Having commanding authority allows
these companies to release new products in a new category. These are normally successful
releases, as well.
The best instance of this is a computer company releasing cell phones. Because the company
already has authority in the technology space, customers can expect their new products to work
well. Their authority allows them to release just about any product in the technology category
with some success. A failed release will rarely impact the company heavily.

A huge example of this is when Google began releasing smartphones, watches, and laptops.

Brand Lifestyle Extension

Of all of the strategies listed here, the brand lifestyle extension may be the most difficult. Brand
lifestyle extensions require a dominating brand personality. The brand itself has to be associated
with a specific lifestyle, and the customer base has to be fiercely loyal to it. The brand that
commands this lifestyle can release almost any product with success.
Brand lifestyle extensions tend to be seen with brands that are “hyped” up. Fashion brands can
accomplish these kinds of extensions regularly. Brands that are run by celebrities also do well
with this strategy.

Real-World Examples of Brand Extensions

Companies have been attempting brand extensions for decades. Increasing market share is
important to companies, as it tends to increase revenue. Below you’ll find examples of good
brand extensions, as well as some bad ones.

Good Brand Extensions

The brand extensions listed below are some of the most successful in recent times.
 Tesla Tequila: Tesla is an energy company that branched out to sell tequila. The liquor
sold out within hours of release. This is, for the most part, due to the company’s brand
personality and CEO, Elon Musk. It’s a great example of a brand lifestyle extension.

 Reese’s Puff Cereal: Popular candy brand Reese’s released a breakfast cereal with
great success. This is an example of a customer base extension.
 Honda Lawn Mowers: Honda was able to use its company authority to successfully
sell lawn mowers. Because of the dependability of their vehicles, customers were
inclined to buy their small motor products, as well.

Bad Brand Extensions

Sometimes, brand extensions don’t go the way a company plans. Below are some of the biggest
brand extension blunders in history.
 Levi’s Tailored Classics: Levi’s is branded as a rugged outdoor clothing company.
When they attempted to break into the fine garments category, customers were skeptical
at the least. The company’s suits didn’t sell well and damaged Levi’s original reputation
to an extent.

 Colgate Kitchen Entrees: At one point in time, Colgate attempted to start selling food
goods. This didn’t go well. Since most people associated the brand with oral hygiene,
no one wanted to take a chance on their dinner products.
 Cadbury Mashed Potatoes: Cadbury attempted to move away from chocolates. They
targeted mashed potatoes, which failed miserably. It actually damaged the company’s
reputation for selling fine chocolates, as well.

Brand Rejuvenation
Brand rejuvenation is reinvigorating and revitalizing a brand’s reputation to resonate
with a modern audience. Brand rejuvenation aims to reposition a company’s brand
identity to appeal to a new target market or adapt to a rapidly changing market
landscape. This means revisiting the brand’s core values, messaging, visual identity,
and overall customer experience.

Why Do You Need Brand Rejuvenation?

As businesses evolve, their customers and target audience may change. Brand
rejuvenation helps companies to stay relevant and adapt to changing customer needs. It
also enables companies to distinguish themselves from competitors and differentiate
their products and services. A refreshed brand identity can bring new life into your
business, attract new customers, and increase brand loyalty.

How Does Brand Rejuvenation Work

Brand rejuvenation involves various steps. Firstly, companies must conduct a brand
audit and examine their current position, existing branding strategy, marketing
materials, and messaging. Next, companies need to use insights gained from this audit
to establish a roadmap for repositioning the brand. This step may involve creating a
refreshed brand message, rebranding elements, or launching a new product line.
Companies will launch their revitalized brand through various mediums, such as
advertising, PR, and marketing campaigns.

Who Can Benefit from Brand Rejuvenation

Brand rejuvenation is not limited to any specific industry or company size. Businesses
of all sizes, from startups to established organizations, can benefit from the brand
revitalization process. If a company’s brand is outdated and struggling to connect with
its audience, it’s time to consider brand rejuvenation. By focusing on the customer’s
needs, a business can reinvigorate its brand and improve its market position.

Inject new life into your business with Brand Rejuvenation.

Keeping your brand relevant and appealing to your target audience is crucial as a
business owner. With the ever-changing market trends and customers’ ever-shifting
needs and preferences, your brand may inevitably start losing its charm and appeal.
Nevertheless, all is not lost. The good news is that you can reclaim your brand’s glory
and relevance with brand rejuvenation. Brand rejuvenation, or rebranding, is updating
and refreshing your brand image, identity, and positioning to better appeal to your target
audience. It’s a strategic move that enables your brand to stay relevant and competitive.
In this post, let’s explore this concept in more detail and learn how to inject new life
into your business with brand rejuvenation.
Brand Rejuvenation: The Art of Revitalizing Your Business
In today’s competitive business world, staying relevant and maintaining a solid brand
image is crucial. However, with constant changes in the market and customer
preferences, business owners often need help to maintain their brand identity. It’s
during these challenging times that brand rejuvenation comes to the rescue. Brand
rejuvenation is revitalizing your business and breathing new life into your brand.

Brand Rejuvenation: How to Revitalize Your Business

Every business, regardless of its size and industry, requires a brand to establish its
identity and connect with its target customers. However, as the market changes,
customer preferences shift, and competition increases, a company’s brand may lose its
luster. It may start losing customers and sales, becoming less relevant and exciting. This
is where brand rejuvenation comes in. Brand rejuvenation is revitalizing a brand that
has lost its momentum and impact. We will discuss practical and effective strategies for
rejuvenating your brand and winning customers back.

The Process of Brand Rejuvenation

Brand rejuvenation involves a comprehensive review of your brand’s values, strategy,
and goals. The process starts with understanding your target audience and evaluating
your brand identity. You’ll need to examine your logo, website, social media presence,
and marketing efforts more closely. Once you determine what’s working and what’s
not, you can create a new brand identity that aligns with your target audience and
business goals.

Uncovering the Magic Behind Brand Rejuvenation

In this ever-evolving world of cut-throat competition and technological advancements,
brands must constantly upscale their game. Whether Coca-Cola, Apple, or Nike, every
successful brand today has undergone a metamorphosis, turning from old-fashioned,
obsolete brands to modern, relevant ones. But how do they do it? The answer is simple
– brand rejuvenation. We will discuss what brand rejuvenation means, its importance,
and how brands can implement it.

Celebrity Endorsement
A form of brand or advertising campaign that involves a well known person using
their fame to help promote a product or service.”
” Endorsements are a form of advertising that uses famous personalities
or celebrities who command a high degree of recognition, trust, respect or
Celebrity branding or celebrity endorsement is a form of advertising campaign or
marketing strategy used by brands, companies, or a non-profit organization which
involves celebrities or a well-known person using their social status or their fame to
help promote a product, service or even raise awareness on environmental or social
matters.Marketers use celebrity endorsers in hopes that the positive images of the
celebrity endorser of the brand will also be passed on to the products or the brand image
associated with the celebrities

Determinants of celebrity endorsement

1. Credibility
Credibility is “the extent to which the recipient sees the source as having relevant
knowledge, skills, or experience and trusts the source to give unbiased, objective
information” . The two most important aspects of credibility are expertise and trust.
Celebrities are seen as credible sources of information and the credibility of a celebrity
is described as the total amount of positive features that create and increase the
acceptation of the message.

2. Expertise
Expertise of celebrity endorsement is being defined as “the extent to which an endorser
is perceived to be a source of valid assertions”. With regard to expertise, it isn’t
important that the celebrity is really an expert in the field. It is important that consumers
think and believe a celebrity has expertise. The level of celebrity expertise will
determine its effectiveness . The more expertise a celebrity has, the more effective it
will be. The expertise of a celebrity will not be changed by negative publicity, but the
believability and credibility will be negatively influenced.

3. Trustworthiness
Trustworthiness refers to “the honesty, integrity and believability of an endorser” .
Companies try to find endorsers who are widely seen as trustful and who are seen as
honest, believable and dependable . Trustworthiness is the most important factor with
regard to the source credibility and influences credibility Moreover, likeability is
mentioned as the most important attribute of trust . Advertisers can create the highest
effect by taking these two factors, liking and trustworthiness, into account. Because it
is stated when consumers like a celebrity, they will automatically trust a celebrity.

4. Attractiveness
The concept of attractiveness does not only entail the physical attractiveness.
Attractiveness also entails concepts such as intellectual skills, personality properties,
way of living, athletic performances and skills of endorsers . Celebrities can be
attractive because they established for example great sport performances and people
have great respect for their achievement and therefore are attracted to them. Physical
attractiveness suggests that a celebrity determines the effectiveness of persuasion as a
result of that consumers wanting to be like the endorser and wanting to identify
themselves with that endorser.

5. Similarity
Similarity is described as “a supposed resemblance between the source and the receiver
of the message” . In other words: if a consumer can identify him/herself with the
endorser. People can be influenced more easily by an endorser who is similar to them.
If the celebrity and the consumer have common factors like common interests or
lifestyles, a better cohesiveness is created . That is why celebrities are selected upon
their characteristics that match well with consumers. Companies also try to create
empathy using celebrities . Using empathy, companies try to create a bond between the
celebrity and the consumer. Also the level of persuasiveness is increased by using
similarity. Companies might choose to pick a regular-looking person who is not a
celebrity, because consumers can identify themselves more easily.

6. Liking
Likeability is the “affection for the source as a result of the source’s physical appearance
and behaviour” . In addition, states that when people like the celebrity they will also
like the accompanying brand and therefore celebrities are used in commercials and
advertisements. Celebrity endorsement will influence the consumer behaviour and
attitude and advertisers believe that a celebrity can influence the consumer’s vision of
the company’s image.

7. Familiarity
Familiarity is the supposed resemblance as knowledge that a celebrity endorser
possesses through exposure . When companies choose a celebrity, it is important to
what extent consumers are familiar with the celebrity. The more familiar the consumer
is with the celebrity, the more positive the effect will be. It is also well known that
consumers, who are more familiar with a celebrity and are more exposed to a celebrity,
will automatically like a celebrity more; this is called the mere exposure effect . The
effect of familiarity on attitude increases when there are brief exposures of the celebrity
and when there are longer delays between the exposures. The effect decreases when
there are long exposures of the celebrity and when there are shorter delays between the
exposures.

Advantages of Celebrity endorsement

1. Influence Consumer Purchases
The affinity consumers have for certain celebrities can greatly influence their
purchases. People may have the attitude, “If the product is good enough for her, it’s
good enough for me.” This philosophy is often the impetus behind advertisements for
makeup, skin creams, hair products and attire. Consumers want the wavy hair of a local
celebrity, for example. Hence, they purchase the brand that the celebrity uses to achieve
her hair’s fullness and bounce. Local consumers may also desire the same soft drink as
their team’s best baseball player. Essentially, the testimonial of the local celebrity adds
instant credibility to a small company’s product.

2. Build Awareness
Celebrities in advertising build brand awareness, according to “Supermarket News,” a
publication covering the food distribution industry. And they build it much more
quickly than traditional types of advertising. Brand awareness measures the percentage
of people who are familiar with a particular brand. Small businesses spend lots of
money and time for exposure to incrementally increase brand awareness among
consumers. The use of a local celebrity can do much to enhance consumers’ awareness
and understanding of what a small business offers.

3. Position a Brand
Some small companies use celebrities in advertising to position their brands. Product
positioning is placing a company’s products in the best possible light in the minds of a
target group, according to Inc.com. For example, a small investment firm may use a
well-respected and retired local disc jockey to market a retirement plan for people ages
50 and over. The fact that the disc jockey falls in the consumers’ age group and has a
good reputation in the community makes the company’s product and message more
believable.

4. Attract New Users

One challenge small companies face is finding new users for their products. When a
well-known face endorses your brand, it automatically attracts new target audience –
the die hard fans of the celebrity. People who would have not much cared about your
brand will now get open to try it at least once because their favourite sport-star, actor,
politician or model is endorsing it. The bigger the celebrity, the larger audience base
you get to invite in.

5. Breathe Life Into Failing Brand

The use of a celebrity in an advertisement may also help to breathe life into a failing
brand. For example, a small soap manufacturer might think about dropping a brand or
product, especially if production and overhead costs are leaving little or no profit.
However, the use of a celebrity to tout the benefits of the brand could help create new
interest and excitement in consumers.

6. Builds Trust and Credibility for your Brand

People are emotionally and morally connected with their idols. Celebrities are no less
than any idols for them. In this highly populated world, every celebrity that you’ll come
across will have over a million fans, and thus getting the thumbs up from them should
bring a lot of success for your business. Now when these millions of people will join
your brand, your brand’s market value and reputation will automatically improve in the
shortest period of time.

Cons of Celebrity Marketing

1. Images change
Celebrities make mistakes. And when they do, they can affect the brands they endorse.
In 2009, Tiger Woods’ public image crumbled after his infidelity with a number of
 women, hit the news. General Motors, Gillette, Accenture, dropped Tiger to avoid
negative perception. Nike stuck around and lost customers.

2. Celebrities May Eclipse Your Brand

Some celebrities are really huge and their popularity can instantly overshadow the
brand. If this happens, spending millions of dollars on such endorsements starts to make
no sense at all. Some advertisements even focus on celebrities too much, that there’s
absolutely no brand recall. Also, if the media is focusing more on the next movie of the
celebrity on your brand’s press meet, then this is a sign that you’ve made a wrong
choice.

3. Celebrity Endorsements are Expensive

Now this is a very obvious point. So unless you are ready to shed millions and billions
of dollars from your company’s revenue, don’t think about going down this road.
Celebrity marketing is a huge investment and then there’ll be no turning back.

Rural Marketing Strategies To Succeed In Rural India

As India's rural marketplace booms, its vibrant ability keeps enticing brands. With over
65% of the populace dwelling in villages, knowledge of their precise desires and
aspirations is not a choice, but a strategic imperative. But how do you navigate the
diverse landscape of rural India without getting misplaced in translation? Let's discover
9 present-day strategies for achievement in 2024.

1. Beyond Demographics:

While knowing the demographics of rural areas is important, it opens the opportunities to
identify their desires and fears. Additional insights into rural consumer behavior can be
obtained by utilizing mobile data and AI-powered sentiment analysis, providing highly relevant
hyper-personalized ads. Consider modifying your message to specifically address the issues of
a dairy farmer in Haryana as opposed to a coffee producer in Coorg.

Content that Speaks their Language:

Ignore one-size-fits-all advertising strategies. India's rural areas are a mix of many languages,
styles, and traditions. Accept local languages and platforms, such as community apps and
regional OTT offers, to provide content that feels genuine and comfortable. Collaborate with
regional influencers and storytellers to craft relatable stories that appeal to rural audiences.
Leverage the future of OTT by tapping into the rising regional platforms, providing a distinct
space for customized content. For instance, imagine lively Malvi short films highlighting the
advantages of your new hybrid seeds, or catchy Bhojpuri songs promoting your financial
offerings sung by local singers.

Mobile-First, Always:
The use of smartphones in India's rural areas is rapidly increasing, making mobile the
unchallenged leader in rural marketing. Create mobile-first experiences that are optimized for
low-bandwidth settings and data plans. Consider voice-activated search, chatbots that are
engaging, and lightweight applications. Imagine a voice-enabled app in his native tongue
providing farmers with weather and crop prices, or imagine interactive chatbots on a rural
woman's phone educating her financial literacy.

E-commerce with a Rural Twist:

Rural consumers are using Internet shopping more and more. However, traditional logistics
models often fall quickly. Collaborate with neighborhood Kirana shops and community
associations to create last-mile movement systems. To assist those who are short on cash,
consider innovative solutions like barter alternatives and coins-on-transport. Imagine a villager
trading extra produce for needs through a community-driven e-commerce network, or ordering
a farm gadget online and picking it up at his local Kirana shop.

Building Trust through Transparency:

Transparency and trust are highly valued in rural areas. Communicate openly about your costs,
components, and sourcing methods. Use live Q&A sessions and community forums to have
honest conversations. Your most effective marketing strategy in rural areas is word-of-mouth
referrals and loyalty, which are developed by establishing trust.

Skill Development and Empowerment:

Go beyond selling products and investing in rural communities. Collaborate with NGOs and
local institutions to provide skill development workshops, financial literacy programs, and
digital literacy instruction. Empowering rural communities leads to a positive brand image and
a loyal customer base who see you as a partner in their progress.

The Power of Purpose:

Rural customers of today are aware of social and environmental issues. Whether it's women's
empowerment, rural healthcare projects, or sustainable farming techniques, align your brand
with issues that matter to them. Include your mission in your marketing story, but make sure
it's genuine and stay away from tokenism. Consider collaborating with nearby farmers to
advance organic farming methods or supporting a rural healthcare project while advertising
your medical products.
Leveraging the Gig Economy:
The gig economy presents a unique opportunity to reach and engage rural audiences. Partner
with local delivery platforms, micro-influencers, and content creators to spread your message.
This not only provides income opportunities for rural communities but also taps into their local
knowledge and networks for effective outreach.

Embracing AI and Chatbots:

Leverage AI chatbots to provide 24/7 customer support in local languages. Imagine a farmer
seeking crop advice or a rural woman inquiring about loan options, all via an easily accessible
chatbot that speaks their language. This closes the accessibility gap in rural areas while also
improving the consumer experience.
 Techno branding
Branding for a tech company goes much deeper than appearance and requires a business
to commit to one message from the company culture to customer interactions.
Branding for a tech company goes much deeper than appearance. Tech businesses have
to commit to one message from the company culture to customer interactions.
When tech businesses have a strong branding strategy, B2B buyers perceive the
business as a trustworthy authority with high values. That unified message encourages
buyers to spend more and remain loyal to the brand.

Pillars of Branding for a Tech Company

The three main components of a technology branding strategy are:

 Awareness: Does the ideal audience know about the brand?

 Equity: Does the brand have value? Do buyers want to purchase the brand’s products?

 Sentiment: How do buyers feel about the brand?

Perfect Branding Strategy for Tech Companies

1. Define the Branding Strategy's Purpose
Establishing a strategy goal helps marketers know when a branding strategy is
successful. A branding strategy can boost awareness, equity, and sentiment around a
brand. Each branding strategy should focus on a different pillar of branding.

For instance, for the awareness pillar, marketers should determine what good brand
awareness is. Brand awareness for a large tech company like Amazon includes
recognition from a broad audience compared to tech companies focusing on a small
market niche.

2. Choose a Narrow Tech Audience

Branding connects tech companies to a B2B audience, which makes relatability a
crucial element of branding. The branding should reflect the audience the business
markets to and resonate with that audience by addressing needs and pain points.

NVIDIA is a great example of a tech company with good branding for specific
audiences. NVIDIA has a dropdown menu titled "For You," where website visitors from
each tech niche can navigate directly to niche-focused content.
By building a brand for a target audience, marketers are more likely to attract
prospective buyers. For instance, marketers might present at a webinar specifically for
professionals in a tech niche. During the webinar, the presenter connects with a corner
of the tech market that's most interested in that tech business's products. That way, the
leads the business collects are more likely to become loyal customers.
 3. Know Your Value Proposition
A value proposition is a statement that makes a product or company valuable to
customers and becomes a focal element of many branding campaigns. To know what to
include in a tech value proposition, IT brands must understand what makes the tech
brand different.
Tech companies can look at vertical differentiation and horizontal differentiation
factors:

 Vertical differentiation: How is a brand superior to other brands to warrant the higher
prices?
 Horizontal differentiation: What does a brand have that competitors lack that makes the
brand more appealing than similar companies?
The most valuable source of brand differentiation factors in what customers say about
a business. Companies can look at customer reviews to find common characteristics
that customers compliment or call out as a reason the customer chose that specific
brand.

Some key areas in which tech brands differentiate themselves include quality, product
options, support, tech niche, industry expertise, and available resources. Those
differentiation factors become a statement of value that makes the tech brand stand out
from the competition.

4. Define the Brand by More Than Products

Companies today brand themselves by more than just products. Instead, brands are
values, causes, and benefits that appeal to a target audience.

A famous tech company known for its cause branding is Panasonic. This brand defines
its products and company by environmental criteria like sustainable energy usage and
community outreach. Panasonic prioritizes the company's environmental aspect from
the about page to the blog content.
Salesforce is another excellent example of defining the brand by solutions instead of
products. For example, the following ad for Salesforce Customer 360 doesn't list a
single feature or tech spec. However, the ad is clear about the benefit to businesses.

5. Highlight the Brand's Mission

A brand's mission is why a company exists. The mission guides company behaviors and
attracts buyers with a similar goal.
For instance, Google's mission statement is "To organize the world's information and
make it universally accessible and useful."

That mission statement tells consumers why Google provides search engines, online
storage, and file management platforms. This mission is a part of Google's branding,
including ad messages and content. The statement attracts buyers interested in
universally accessible solutions to information management.

6. Build a Brand Story

A brand story puts together all the previous elements into a tale about the creation and
running of the business. Companies communicate their core values, mission, and goals
through brand stories. In addition, the narrative makes a brand personable, which helps
build a connection between a tech brand and B2B customers.

Marketers use storytelling to tell about a brand and about customers who successfully
used the brand's products. DataRobot shows how to use customer stories in branding.
DataRobot’s main website homepage features customer testimonials in the form of case
studies specific to each industry niche.

7. Create an Authentic Brand

Authenticity is the last element of successful branding, and according to 88% of buyers,
authenticity is also one of the most crucial elements when deciding what brands to
support. Whatever a company paints in the brand image should also be a core part of
the company culture and behavior. A company that portrays one image but acts
differently will hurt customer trust.
A business can back up branding claims through supporting research and transparency.
For instance, companies might share annual financial reports or environmental impact
reports that show company action backs the branding message.

Building an authentic brand requires the cooperation of all employees. Workers within
the organization should uphold the company values and create a culture that reflects the
external brand that customers see and experience.