Unit 1

Advertising: Introduction, Scope, importance in business: Role of advertising in social and

economic development of India, Ethics and truths in Indian Advertising.
Introduction of Advertising
Advertising is a powerful communication force and vital marketing tool helping to sell goods,
services, images, and ideas through channel of information and persuasion. It is highly visible
force in the society. All of us receive many advertising messages daily. It is essential to the
success of any type of business and industry. Non-business organisation such as government,
college and universities, and Public Service groups employ more and more advertising
strategies. It is one of the parts of the marketing and communication process. Advertising
convince people to buy products. All advertising contains both information and persuasion.
Today we can say advertising is a communication, marketing, public-relation, information and
persuasion process.

DEFINITION:
The word advertising came from the Latin word' advertere' means "to turn the mind toward".
The American Marketing Association (AMA) recommends the definition, “Advertising is any
paid form of non-personal presentation and promotion of ideas, goods and services by an
identified sponsor". The AMA points out that advertising is a tool of marketing along with
the product and its packaging, price, distribution and personnel selling. Its task is to present
and promote the idea or goods and services. According to this definition promotion is 'non-
personal'. It is directed "to whom it may concern". If advertising is effective, it is because the
audience is receptive to it.

AMA definition actually describes the four main following points of advertising: The phase
paid form in the AMA definition is too restricted for many advertising professionals. The phrase
was designed to distinguish between advertising, which is delivered through space, or time for
which the advertiser has paid, and publicity, which is delivered without charge as part of the
news and entertainment content of the media.

Paid form: When product or services are mentioned favorably in the media newspaper,
magazines and radio or television- the item appears because it is presumed to provide
information or entertainment for the audience. But this is publicity, and no payment is made by
the benefited organization. Advertising on the other hand, is published or broadcast because the
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advertiser has purchased time or space to tell the story of a certain product or service.

Non-personal presentation: Personal selling takes place when a personal face-to-face

presentation is made. Although advertising complements or may submit for, personal selling it
is done in a non-personal manner through intermediaries - or media.

Idea, goods and services: From this point advertising is concerned with much more than the
promotion of tangible goods. Most of the advertising is designed to help sell goods and services.
It is being used increasingly to plead a cause of Social welfare

An Identified Sponsor: Advertising discloses or identifies the sources of the opinion and ideas.
According to an identified sponsor, this point distinguishes advertising from propaganda.
Propaganda attempts to present opinions and ideas in order to influence attitudes and actions.
Advertising on the other hand, disclose or identifies the source of the opinions and ideas it
present.
According to Mc Cann Erickson, Advertising is "Truth Well Told" Actually advertising is
a paid publicity and silent salesmanship.

According to Seldon, "Advertising is a business force, which through printed words, sells or
helps sale, build reputation and fosters goodwill".

John V. W. expressed, "Advertising like salesmanship is an attempt to influence the thoughts

and action of people".

DIFFERENT TYPES OF ADVERTISING

Advertising is the promotion of a company's products and services carried out to drive up sales
of the products and services. It is also done to build a brand image and communicate changes
in old products or introduce new product/services to the customers. Advertising has become an
essential element of the corporate world and hence companies allot a considerable amount of
resources towards their advertising budget.

PRINT ADVERTISING - NEWSPAPERS, MAGAZINES, BROCHURES, FLIERS

Print media has always been a popular advertising option. Advertising done via newspapers or
magazines is a common practice. In addition to this, the print media also offers promotional
brochures and fliers for advertising purposes. Often, newspapers and magazines sell the
advertising space according to the area occupied by the advertisement or the position of the
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advertisement in the publication (front page/middle page, above/below the fold), as well as the
readership of the publications. For instance, an advertisement in a relatively new and less
popular newspaper will cost far less than that of an established newspaper that has a high
readership. The price of print ads may also depend on quality of the paper and the supplement
in which they appear. For example, an advertisement in the glossy (and popular) supplement of
a newspaper costs more than one in a supplement which uses mediocre quality paper.

OUTDOOR ADVERTISING - BILLBOARDS, KIOSKS, TRADE-SHOWS AND

EVENTS

Outdoor advertising is also a very popular form of advertising. It makes use of several tools and
techniques to attract the customer’s outdoors. The most common examples of outdoor
advertising are billboards, kiosks, hoardings, flex and also trade-shows organized by the
company. Billboard advertising is very popular. However, it has to be really catchy in order to
grab the attention of the passersby. Kiosks not only provide an easy outlet for the company's
products but also make for an effective advertising tool to promote the company's products.
Organizing special events or sponsoring them makes an excellent advertising opportunity and
strategy. The company can organize trade fairs, or even exhibitions for advertising their
products. For instance, a company that manufactures sports utilities can sponsor a sports
tournament to advertise its products.

BROADCAST ADVERTISING - TELEVISION, RADIO AND THE INTERNET

Broadcast advertising is a very popular advertising medium which constitutes several branches
like television, radio or the Internet. Television advertisements have been very popular ever
since they were introduced. The cost of television advertising generally depends on the duration
of the advertisement, the time of broadcast (prime time/lull time), sometimes the show on which
it will be broadcasted, and of course, the popularity of the television channel itself. The radio
might have lost its charm due to new age media. However, it remains the choice of small-scale
advertisers. Radio jingles have been very a popular advertising medium and have a large impact
on the audience, which is evident in the fact that many people still remember and enjoy old
popular radio jingles.

COVERT ADVERTISING - ADVERTISING IN MOVIES

Covert advertising is a unique kind of advertising in which a product or a particular brand is

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incorporated in some entertainment and media channels like movies, television shows or even
sports. There is no commercial advertising as such in the entertainment but the brand or the
product is sometimes showcased in the entertainment show.

SURROGATE ADVERTISING - ADVERTISING INDIRECTLY

Surrogate advertising is prominently seen in cases where advertising a particular product is

banned by law. Advertisements for products like tobacco, cigarettes or alcohol which are
injurious to health are prohibited by law in several countries. Hence these companies come up
with several other products that have the same brand name and indirectly remind people of the
cigarettes or alcohol of the same brand by advertising the other products. Common examples
include Fosters and Kingfisher beer brands, which are often seen to promote their brand with
the help of surrogate advertising.

SOCIAL ADVERTISING - ADVERTISING FOR SOCIAL CAUSES

Public service advertising is a technique that makes use of advertising as an effective

communication medium to convey socially relevant messages about important matters and
social causes like AIDS, energy conservation, political integrity, deforestation, illiteracy,
poverty and so on. David Ogilvy who is considered to be one of the pioneers of advertising and
marketing concepts had reportedly encouraged the use of the advertising field for a social cause.
Ogilvy once said, "Advertising justifies its existence when used in the public interest - it is much
too powerful a tool to use solely for commercial purposes. Today, public service advertising
has been increasingly used in a non-commercial fashion in several countries across the world
in order to promote various social causes. In the United States, radio and television stations are
granted to bidders on the basis of a fixed amount of public service advertisements aired by the
channel.

CELEBRITY ENDORSEMENT

Although the audience is getting smarter and smarter, there exists a section of advertisers that
still bank upon celebrities and their popularity for advertising their products. Using celebrities
for advertising involves signing up celebrities for advertising campaigns, which consist of all
sorts of advertising including, television ads or even print advertisements. How effective these
ads are, is something that each consumer himself can determine.

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So, those were the most popular kinds of advertising used today. Each of the advertisement
types mentioned has its own sub-types and rates of effectiveness. It is the job of advertising
department to figure out which type of which medium is the best and the most feasible for the
company.

Scope of Advertising

Advertising has become an essential marketing activity in the modern era of large scale
production and serve competition in the market.

Promotion of Sales. It promotes the sale of goods and services by informing and persuading
the people to buy them. A good advertising campaign helps in winning new customers both in
the national as wet] as in the international markets.

Introduction of New Product. It helps the introduction of new products in the market. A
business enterprise can introduce itself and its product to the public through advertising. A new
enterprise can’t make an impact on the prospective customers without the help of advertising.
Advertising enables quick publicity in the market.

Creation of Good Public Image. It builds up the reputation of the advertiser. Advertising
enables a business firm to communicate its achievements in an effort to satisfy the customers’
needs. This increases the goodwill and reputation of the firm which is necessary to fight against
competition in the market.

Mass Production. Advertising facilitates large-scale production. Advertising encourages

production of goods in large-scale because the business firm knows that it will be able to sell
on large-scale with the help of advertising. Mass production reduces the cost of production per
unit by the economical use of various factors of production.

Research. Advertising stimulates research and development activities. Advertising has become
a competitive marketing activity. Every firm tries to differentiate its product from the substitutes
available in the market through advertising. This compels every business firm to do more and
more research to find new products and their new uses. If a firm does not engage in research
and development activities, it will be out of the market in the near future.

Education of People. Advertising educate the people about new products and their uses.
Advertising message about the utility of a product enables the people to widen their knowledge.

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It is advertising which has helped people in adopting new ways of life and giving-up old habits.
It has contributed a lot towards the betterment of the standard of living of the society.

Support to Press. Advertising provides an important source of revenue to the publishers and
magazines. It enables to increase the circulation of their publication by selling them at lower
rates. People are also benefited because they get publications at cheaper rates. Advertising is
also a source of revenue for TV network.

Importance of Advertising

Advertising is an important part of trade and commerce for multiple reasons, including:

Increases sales

Advertising's main goal is to increase the number of people who buy your product. You can
achieve this by using advertisements to persuade customers that your product is high-quality,
useful or desirable. An effective advertisement can convince customers to purchase your
product, which may dramatically improve your overall sales.

Informs customers

Creating an advertisement is a simple way to inform potential customers of your product and
any advantages or features it may have. You can include important information such as the
function of a product, where you can buy it, price and unique qualities in a short period of time.
Advertising also allows you to tell your audience about promotions such as sales, special
services for new customers or special events.

Helps introduce products

When your company introduces a new product or service, you can create an ad to inform your
customers about it. This allows you to show the new product to a large number of people and
create an interest for the release. Telling a larger amount of people about your product release
may increase the number of people who want to buy it.

Informs you about your competition

You can use advertisements to monitor your competition and learn about any developments
they make. When a competitor releases a new product or feature, they may create an
advertisement to inform their customers. This gives you the opportunity to develop something

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new of your own or create a new advertisement detailing the features of an existing product that
addresses the same challenges.

Retains customers

Using advertising can help remind your customers about your brand and may encourage them
to continue buying your product. A customer who once used your product may see an
advertisement and remember their positive experience. This can motivate them to purchase that
product again or try other services from your company.

Increases employee morale

An effective advertisement may improve the morale of coworkers who see or hear about it.
People may find it easier to talk to potential customers about new products or services if the
customer is already slightly aware of them. A quality advertisement may also increase a person's
pride in their workplace.

Differentiates your brand

Because most products and services have multiple companies competing for customers, your
company may need to find ways to distinguish itself from competitors. Advertising elements
such as logos, color schemes, fonts and taglines are ways to establish a brand identity and create
a difference between your product and other companies. If a customer recognizes or likes your
brand design, that may increase the chances of them purchasing your product.

Increases customer trust

Advertisements can increase familiarity and trust between a company and its customers. If a
potential customer sees multiple ads about your product, they may consider you a trusted brand.
You can also use advertising to address any concerns, which further builds trust between your
company and your customers.

Reaches target customers

Using advertising can help you easily identify or market toward a particular target audience.
After researching a target audience, you can release an ad that may appeal to them at locations
they usually frequent. If you have more than one target audience, you can create separate ads
and market to both audiences in different areas.

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Explains company values

A company with powerful, visible values can resonate with customers and may encourage brand
loyalty. Advertisement allows you to describe your company's core traits or values to a wide
audience and may encourage them to try your product. Having clear company values can also
increase customer trust and may strengthen a brand's identity.
Role of advertising in Social and Economic Development of India

Advertising is omnipresent and ever appealing. Hence, it always calls out for an action. Such
actions create a change in several factors existing in a country. In this topic, we will understand
the economic and social aspect of advertising. In simple words, we will see the impact of
advertising on the economy and society.

Role of Advertising in Economic Development of India

Economy can be referred as elements which keep a nation in force. Factors such as demand,
supply, production, service, money, infrastructure, human resources, etc. come under the term
economy. Advertising is an industry which strongly affects many of these factors to a material
extent. Let's understand some of the factors getting affected due to advertising.

Advertising enhance Product Value: Through continuous advertising, a product earns a

recognizable recall value in the market. This is because, people start remembering and
resonating the product when they continuously watch the advertisement. This builds the value
of the product in the market, enhancing its life. When a product attains value in the market, it
tends to survive long, thereby spearheading towards growth and achieving other milestones.

Advertising enhance Profits: With regular advertising, a brand can expect a rise in sales. This
because advertising makes the product known and marketable. With more sales, a company can
aim for higher profits. At such phase, the company can also save its cost due to high economies
of scale and reap the benefits of having an effective cost of production.

Advertising affects Product Price: Advertising is a cost which cannot be compromised. A

company has to spend well on in advertising campaigns based on several factors such media,
geographical reach, technology, etc. so as to penetrate most. This is surely going to add up a lot
of penny towards marketing and selling the product to the final consumer. Hence, the advertiser
is bound to recover this cost from the customers. So, advertising shifts product prices to the

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higher side. Well, the price factor can be seen from another angle too especially when a
company is engaged in high economies of scale leading to reduction in its production cost.
During such scenario, the product price may either remain stable or may even go down. A good
example can be the prices of Coca Cola and Big Cola. A 2.5 Litre bottle of Coca Cola costs
around Rs. 95 in Indian markets whereas a 3 litre bottle of Big Cola costs Rs. 90/-. One need to
remember that Coca Cola is a popular brand and a regular advertiser, but Big Cola isn't.

Product Life Cycle: Every product has to pass through several stages during its life span.
Since inception, primary focus is on survival and growth. This happens only because of timely
and appropriate advertising techniques followed by the organization. With regular advertising,
there can be stronger penetration in the market and more conversions. This can take the brand
to higher levels of product life cycle. However, from another perspective, advertising can also
help a falling brand from getting withdrawn from the market after its decline.

Production and Distribution Cost: Advertising creates a favourable impact on demand,

which pushes production and hence, distribution. With high production, a company can
optimally utilize its fixed cost, thereby controlling the overall cost. On the other hand, to cater
high demands, the company may have to extend its supply. This is where there will be a rise in
distribution cost. But to note, this rise in distribution cost compensates the increase in sales.

Consumer Demand: Demand is a desire backed by ability and willingness to pay. With
continuous advertising, short term as well as long term demand can be created. This is because
advertising facilitates mental and physical preparedness for audience, encouraging them to buy
the product either now or over a period of time.

Competition: Advertising is an effective tool for mitigating competition. Brands have to

advertise to present themselves to the audience. When many brands from a particular sector
advertise, it creates strong competition. So as to compete in the market, advertising at regular
intervals becomes a necessity. A good example can be ads shown by Nirma, Tide, Arial and
Surf Excel. Each of these brands have to advertise to manage competition from their rivals.

Market Expansion: Advertising helps a brand to not only survive but also grow. Continuous
advertising enables a brand to create and increase demand for itself, which facilitates market
expansion. With wide advertising, a brand can enter into more geographical areas, thereby
spreading its business circle and customer-ship.
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Economic Growth: Advertising is a strategic industry providing opportunities and upliftment
to many. In simple words, it’s not only the advertiser who grabs the benefit of advertising, but
the society and other supporting enterprises as well. Many job and business opportunities
emerge through advertising, which directly and indirectly boosts an economy.

Standard of Living: Advertising makes viewers aware about the various offerings made in the
market by various brands. This enables an easy and smooth purchase for the buyers and
facilitates a better standard of living. This involves mainly luxury / premium goods. For
example, advertising by Sabhasachi on television channels mainly delivering entertainment
programmes has penetrated the idea of fashion and luxury clothing for wedding and other
auspicious occasions, thereby sparkling the standard of living index of many individuals.

Brand Image: Brand image is a very important performance indicator for any brand. With a
favourable brand image, a company can derive more sales and consumer trust. This brand
image enhances with appropriate and timely advertising. In fact, advertising like advocacy
advertising also enables a brand to mitigate crisis, if any.

Consumer Choice: Advertising facilitates consumer choice. Consumers can see a variety of
options available to them in the market and can take decision upon buying. Advertising by
several brands do create a problem of choice for the consumers, but it also extends
understanding alternatives and choosing the best product as per consumer wish.

Advertising and Consumer Demand

Advertising is that tool which acts as a communication manager for an advertiser to effectively
communicate his intent to the right audience. By using most appropriate ingredients, an
advertisement can be well crafted which can not only serve to achieve consumer objectives but
also create a demand in the market. Everything here starts with an act of developing a strong
attitude for the product which is going to move consumer focus into the brand and make them
to buy it. Let's understand the relationship between advertising and demand.

 Advertising creates demand

 Advertising can increase demand
 Advertising persuades consumers by creating a desire
 Advertising can increase aspiration level by developing a favourabe attitude

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  Advertising can stimulate buying
 Advertising can generate off season demand
 Advertising facilitates brand continuity
 Advertising helps break and build brand loyalty (Brand Shift)

Role of Advertising in Social Development of India

Advertising is a powerful tool not only for communication but also for persuading the right
person to take an action. With an ocean of media, advertising gets scattered and delivered in
various eyes in various forms. During this process, several factors existing in a society are
considered, which in turn affects consumer behavior. Here, we will discuss the effect of
advertising on society and how it develops an attitude in the consumer mind.

Information: Advertising throws light in the dark. When a product or a service is advertised, it
is actually a transmission of information from the seller to the potential buyer. But one need to
remember that not every information is a solution. A society marks progress when right
information is delivered, which intend people to stay aware and beware.

Solution: Advertising of certain products stands as a solution for many. Not every products
and service is developed with an intent to provide solution for an ultimate buyer. There are
products which may be harmful or inappropriate for viewers. But when a problem is resonated
to a product, it automatically becomes a solution. For example, soaps do not add beauty, they
only clean dirt from the body and adds a temporary fragrance. When a soap is advertised as a
product adding glow and beauty to a person's face, it may become inappropriate for the user.
The user may buy with an intent of getting beauty on face.

Creation of realistic / unrealistic desire: Advertisements create desire in the viewer's minds.
Such desires can either be true or even an unnecessary one. Realistic desires lead to a genuine
purchase. But unnecessary desires lead to flop purchase, which may seem to be exploitative.

Altering Consumer Behavior and Attitude: Advertisements have the power to alter people's
mind and actions. A good advertisement can surely stuff in positive vibes and thoughts with
depiction of message in the most moral way. But ads using inappropriate mediums and
messages tend to exploit and manipulate people's mind which can create terrible consequences
in the internal and external surrounding. For example, ads showing violence has a tendency to

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promote violence which can either encourage people to commit violence. Such ads may also
trigger people emotionally and mentally.

Advertising Promotes Materialism: Materialism is a belief that certain consumer goods and
services provide the greatest source of satisfaction in life. Advertising helps a product to be
placed in such a way that it can promote status symbol, success, achievement, power, etc.
which can encourage its demand and consumption. But the same can be harmful to the society
as materialism tends to ruin people's relationships, increase anxiety and depression levels and
can also create a less satisfactory feel upon using a particular product compared to other.

Advertising promotes consumption of unhealthy / questionable products: At times, a

product may not be suitable or appropriate for a person. Precisely, it may be beyond a person's
affordability or may not be useful or may be harmful or may even confuse buying decision. An
advertisement can also affect a person's thought process and may tend tend to influence
personal characteristics like selfishness, manipulative, over spending, stereotyping, hatred to a
particular person / place / animal / thing, etc.

Advertising is deceptive (misleading) and manipulative: At times, certain competitive

products can be promoted in an inappropriate way that can adversely impact the thought
process of the viewers. Some ads tend to create confusion among the viewers with tall claims
or false comparison or unlimited benefits subject to condition (which is of course, never
displayed). Such ads mainly aim for instant sales compromising the real needs of the
consumers.

Ethics in Advertising

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.
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Nowadays, ads are more exaggerated and a lot of puffing is used. It seems like the advertisers
lack knowledge of ethical norms and principles. They just don’t understand and are unable to
decide what is correct and what is wrong.

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
colorful 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 coloring 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.

e.g. a sanitary napkin ad which shows that when the napkin was dropped in a river by some
girls, the napkin soaked whole water of the river. Thus, the purpose of advertising was only to
inform women about the product quality. Obviously, every woman knows that this cannot
practically happen but the ad was accepted. This doesn’t show that the ad was unethical.

Ethics in Advertising

Ethics also depends on what we 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.

Generally, big companies never lie as they have to prove their points to various ad regulating
bodies. Truth is always said but not completely. Sometimes it’s better not to reveal the whole
truth in the ad but at times truth has to be shown for betterment.
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Pharmaceutical Advertising - they help creating awareness, but one catchy point here is that
the advertisers show what the medicine can cure but never talk about the side effects of that
same thing or the risks involved in intake of it.

Children - children are the major sellers of the ads and the product. They have the power to
convince the buyers. But when advertisers are using children in their ad, they should remember
not to show them alone doing their work on their own like brushing teeth, playing with toys, or
infants holding their own milk bottles as everyone knows that no one will leave their kids
unattended while doing all these activities. So showing parents also involved in all activities or
things being advertised will be more logical.

Alcohol - till today, there hasn’t come any liquor ad which shows anyone drinking the original
liquor. They use mineral water and sodas in their advertisements with their brand name. These
types of ads are called surrogate ads. These type of ads are totally unethical when liquor ads are
totally banned. Even if there are no advertisements for alcohol, people will continue drinking.

Cigarettes and Tobacco - these products should be never advertised as consumption of these
things is directly and badly responsible for cancer and other severe health issues. These as are
already banned in countries like India, Norway, Thailand, Finland and Singapore.

Ads for social causes - these types of ads are ethical and are accepted by the people. But ads
like condoms and contraceptive pills should be limited, as these are sometimes unethical, and
are more likely to lose morality and decency at places where there is no educational knowledge
about all these products.

Looking at all these above mentioned points, advertisers should start taking responsibility of
self-regulating their ads by:

 Design self-regulatory codes in their companies including ethical norms, truth, decency,
and legal points
 Keep tracking the activities and remove ads which don’t fulfil the codes.
 Inform the consumers about the self-regulatory codes of the company
 Pay attention on the complaints coming from consumers about the product ads.
 Maintain transparency throughout the company and system.

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When all the above points are implemented, they will result in:

 Making the company answerable for all its activities

 Will reduce the chances of getting pointed out by the critics or any regulatory body.
 Will help gain confidence of the customers, make them trust the company and their
products.

Truths in Advertising

Advertising is very important to convey the right message to the right audience. This becomes
successful only there is truthfulness in the advertising message. Let's understand the need and
importance of truthfulness in advertising.

Ad Industry Survival: True advertisements not only add value to the product but also impacts
survival and sustainability of ad industry and players involved in the ad making.

Firm's Survival: True message in an advertisement also facilitates survival of the

organization. When message is shown in the right way, it develops trust in the minds of the
audience. This trust backs firm's survival.

Corporate Image: True message in an ad also builds corporate image as it develops trust and
faith among the audience towards the corporate.

Improve Customer Loyalty: With correct message, an advertiser can expect loyalty from
customers with respect to retention. Truthfulness in advertising is powerful enough to keep
customers loyal for a certain period of time.

Gain Competitive Advantage: Displaying true message enables a firm to gain advantage over
competitors.

Brand Image and Equity: A firm can gain brand image and equity by showing the right
message to the right audience and through delivery of the right product by creating an
appropriate association between the product elements and the people.

Business Expansion: A brand can step into more product line and create an extension in the
business. This is partially a derivative of true advertising as the truthful element injects the
spirit of loyalty and value towards corporate thereby making new product push easier in the
market.
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Forms of Untruthful Advertising

At times, advertising can be deceptive or untrue as it may include misleading or inappropriate

information or tall and false claims to deceive the audiences to make a move in the favor of the
advertiser. Various such tactics followed by advertisers are discussed below:

Deceptive Pricing: There have been several instances of businesses concealing taxes or
surcharges from customers via deception. For example, there is an airline ticket booking
service that claims to purchase your flights for as little as Rs. 1,000/-. After reviewing the
advertising, you decide to book one. However, once the ticket reaches the final payment step,
your bill turns out to be Rs. 2,000. These might be illegal charges on consumers’ bills, which
refers to “cramming”. If any such “additional charge” or “hidden costs” arises in the name of
different charges, customers have the right to file a complaint with the Consumer Forum.

Deceptive Measurements or Quantities: There may be times when the firm provides a fake
quantity. If the brand has given a measurement or amount less or more than the actual one, they
are accountable for misleading information.

Deceptive Comparisons: In the market, there is always unavoidable competition between two
brands. The rivalry, however, is considered to be fair only if the businesses continue to promote
their brand’s features. When a firm chooses to promote itself against its competitors by
comparing their characteristics, it becomes a misleading advertisement.

Deceptive Guarantee or Warranty: Different brands and corporations provide guarantees or

warranties on their products. They aim to increase the value of their brand by giving such
tactics to the public. However, the brand may not always explain the solution and may
subsequently reject to assist the client. It is when a customer has the right to sue a brand
because of misleading advertising. A brand must respond to the consumer if they misled them
about the promise. Contract law needs clarity for a contract to be binding; thus, rules governing
misleading and fraudulent advertising must fill the void.

Bait and Switch: Bait and switch are essential methods marketers use to show one product as
bait and then switch it with another. They proceed to market an upgraded product before you
after offering a low-cost one. A store advertises a low-cost product that they have no intention
of selling. However, when the buyer contacts them about purchasing the product, the vendor

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compels them not to do so. They instead laud a high-priced product and persuade the buyer to
buy the upgraded version.

Misleading Depiction of Product: There are always occasions when corporations provide
appealing images of their items to get customers to purchase them. This is unmistakably
fraudulent advertising. Some food product businesses show a different image on the package
and avoid the legislation by mentioning in the corner that the image is a serving
recommendation. Such businesses have made wise decisions. A few fruits that are packaged in
packets exhibit a false-color of the items that they are.

Ignorance of vital message: There may be instances where businesses withhold critical
information from their customers. For example, while advertising paneer, the advertisement
must state that it must be used within five days from opening the packet. These are the details
that the audience must be aware to avoid loss. As a result, mentioning them should be an
essential element of the company’s advertising strategy.

Misuse of the word "free": Many organisations show the word free in their advertisements
especially the ones running in price sensitive markets. In such markets, consumers expect more
for less cost and anything coming free of cost is always an attraction. This free element can be
an independent product, extra quantity of the same product in the packet subject to conditions.
The only thing to be noted here is that the quality of the product should not be compromised for
the act of "free-ness". A misleading ad can also include false promises, hidden conditions,
deceptive product property, contests and prizes, usage of word "No. 1", etc.

Positive Influence of Advertising

Advertising can have positive influences on a person's mind as well. While it's important to
acknowledge the potential negative aspects of advertising, it's equally important to recognize
the beneficial aspects. Here are some ways in which advertising can positively influence an
individual's mind:

Information Dissemination: Advertising serves as a source of information about products,

services, events, and new innovations. It helps consumers stay informed about available
choices, which can lead to better decision-making.

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Product Awareness: Advertising increases awareness about products and services that can
genuinely improve people's lives. For example, ads for healthcare services can inform
individuals about available medical treatments.

Economic Benefits: Advertising plays a crucial role in stimulating economic activity by

driving demand for products and services. This, in turn, creates jobs and contributes to
economic growth.

Entertainment and Creativity: Many advertisements are creative and entertaining, which can
engage and captivate audiences. Well-executed ads can become a form of art and storytelling,
enhancing cultural and creative experiences.

Social Awareness: Advertising campaigns can raise awareness about important social and
environmental issues, promoting positive changes in society. For instance, public service
announcements can educate the public about health and safety.

Promoting Diversity and Inclusivity: Some advertising campaigns actively promote diversity
and inclusivity by featuring individuals from various backgrounds and identities. This can help
challenge stereotypes and promote tolerance and acceptance.

Inspiration and Aspiration: Inspirational advertising can motivate individuals to strive for
personal growth and self-improvement. It can showcase stories of success and achievement,
encouraging viewers to set goals and work towards them.

Community Engagement: Advertising often promotes community events, fundraisers, and

charitable initiatives. These campaigns can encourage people to get involved in their
communities and contribute to social causes.

Convenience: Advertising informs consumers about new and convenient ways to access
products and services, making their lives more convenient and efficient. For example, ads for
online shopping platforms can save consumers time and effort.

Cultural and Trend Awareness: Advertising reflects and shapes culture by showcasing
current trends, fashion, and lifestyle choices. This can help individuals stay connected with the
evolving cultural landscape.

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Market Competition: Advertising fosters healthy competition among businesses. Companies
strive to innovate and offer better products and services to attract customers, which ultimately
benefits consumers through improved choices and quality.

Education and Learning: Educational advertisements, such as those promoting online courses
or educational resources, can help individuals acquire new skills and knowledge.

Consumer Empowerment: Advertising can empower consumers by providing them with

information to make informed choices, compare prices, and find the best deals.

Negative Influence of Advertising on Consumers

Advertising can have both positive as well as negative influences on an individual's mind. Here
are some negative effects of advertising:

Manipulation of Desires: Advertising often portrays products and lifestyles in a way that
makes people feel like they need them to be happy or successful. This can lead to the
unnecessary accumulation of material possessions and dissatisfaction with one's life.

Body Image Issues: Many advertisements promote unrealistic beauty standards, which can
lead to body image issues, low self-esteem, and even eating disorders, especially among young
people.

Unhealthy Habits: Advertisements for unhealthy foods, alcohol, and tobacco can encourage
unhealthy habits and contribute to public health problems like obesity, alcoholism, and
smoking-related diseases.

Deceptive Practices: Some advertisements use deceptive tactics to exaggerate product benefits
or downplay potential risks. This can lead consumers to make ill-informed decisions and waste
money on products that don't live up to their claims.

Environmental Impact: Advertising often encourages conspicuous consumption, contributing

to overconsumption and environmental degradation. The constant drive for new products and
the disposable culture it promotes can lead to resource depletion and increased waste.

Financial Pressure: Advertising can create financial pressure on individuals by promoting a

culture of consumerism. People may feel compelled to spend beyond their means to keep up
with the trends and lifestyles depicted in ads.
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Privacy Concerns: Digital advertising, especially targeted ads, raises concerns about invasion
of privacy. Advertisers often collect personal data, which can make individuals feel
uncomfortable or even violated.

Stereotyping and Discrimination: Some ads reinforce harmful stereotypes and contribute to
discrimination based on gender, race, ethnicity, or other characteristics. This can perpetuate
biases and negatively impact social attitudes.

Impulsive Purchases: Advertising is designed to trigger impulsive buying decisions. People

may make purchases they later regret because they were influenced by persuasive ads.

Distracting Content: Excessive advertising, particularly in digital media, can be distracting

and disrupt an individual's focus and attention span.

Overwhelming Information: The sheer volume of advertising encountered daily can be

overwhelming and lead to information overload. This can make it difficult for individuals to
filter and process information effectively.

Fostering Materialism: Advertising often promotes a materialistic worldview, where

happiness and success are equated with material possessions. This can undermine the value of
relationships, personal growth, and experiences.

Emotional Manipulation: Advertisers use emotional appeals to influence consumers'

decisions. While this can be effective in selling products, it can also manipulate people's
emotions and exploit vulnerabilities.

Deceptive and Misleading Advertisements: Case Study

Sensodyne Toothpaste: In India, the Central Consumer Protection Authority noted an absence
of relevant study or material indicating worldwide prominence of Sensodyne products.
Considering the same, they directed the Sensodyne toothpaste to cease the telecast of its
misleading commercial within seven days in which it was claimed that the stated toothpaste is
recommended by dentists worldwide and that it is the world's number one sensitivity
toothpaste. The Authority also slapped a fine payment of ten lakh rupees as penalty.

Horlicks: GSK Consumer Healthcare was once in the dock with authorities for another of its
product other than Sensodyne. The authorities had clamped down on the advertisement of

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Horlicks for claiming that 9 out 10 children’s diet is deficient in essential nutrients. The
Advertising Standards Council of India (ASCI) said that the claim was misleading and
exaggerated.

Byju: Byju’s claim about its learning app that 1 crore students were taking its courses and that
90% of them renew their subscription was touted to be untrue.

Apollo Hospitals: Apollo Hospitals in one of its advertisements had claimed, “Achieve
freedom from your weight issues,” which can mean a cure for various obesity related diseases
such as diabetes, infertility, heart diseases, etc. ASCI called out the ad for being
unsubstantiated with research and for being misleading.

Dove: Hindustan Unilever Ltd came under scanner of the ASCI for its Dove Hair Fall Rescue
Shampoo advertisement, which implied reduction in natural hair fall. ASCI called it
misleading.

Usha Electronics: Usha International advertisement claim for its Usha Honeywell evaporative
air cooler which said 'cools up to 80 square metres', was found inadequately substantiated
under test conditions and misleading by exaggeration.

Kindle: Amazon Kindle’s advertisement for ‘Unlimited Reading’ was held to be not
substantiated as a limit of 10 books was advertised as an ‘unlimited offer’.

Patanjali: Patanjali’s Coronil which was claimed to be a cure for Coronavirus. It was found to
be misleading and untrue and the same was published by the Board in order to make the public
aware of its nature.

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