ADVERTISING (English Version)-munotes

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INTEGRATED MARKETING
COMMUNICATIONS
Unit Structure :
1.0 Objectives
1.1 Introduction to Integrated Marketing Communication (IMC)
1.2 Elements of IMC
1.3 Features of IMC
1.4 IMC planning process or steps involved in IMC planning
process
1.5 Role of advertising in IMC
1.6 Summary
1.7 Exercise
1.0 OBJECTIVES
After studying the unit the students will be able to:
Define the term Integrated Marketing Communication
Explain the various C omponent s, Features and E lements of an
Integrated Marketing C ommu nication
Discuss about the major O bjectives or P urpose of Integrated
Marketing Communication and
Explain the Role of Advertising in an I ntegrated Marketing
Communication
1.1INTRODUCTION TO IMC
1.1.1 Meaning
Integrated Marketing Communication is a simp le concept. It
ensures that all forms of communications and messages are
carefully linked together. Integrated Marketing Communication
plays an important role in the marketing of good sand services. It is
used to influence customer behaviour infavour of the product.
At its most basic level, integrated marketing communication
refers to integrating all the methods of brand promotion to promote
a particular product or service among target customers .I nmunotes.in

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2integrated marketing communication, all aspects of mark eting
communication work together for increased sales and maximum
cost effectiveness.
Integrated Marketing Communication is defined as “ a
marketing mix element used to inform, persuade and remind
people about an organization and/or its products .”
In th is cluttered and fragmented media environment, only
advertising in traditional media (or a mix of one or two other
promotional tools) does not enable marketers to reach their target
market. Thus, integrated marketing communications (IMC) are
required. IMC involves strategic synchronization of various forms of
persuasive communication programs with customers and prospects
over time. The goal of IMC is to convey a company's marketing
messages in a consistent and coherent manner through different
promotional c hannels. The utmost task for IMC is ensuring
consistency in messages and executions so that the target
audience is able to connect any execution to the brand in the end.
1.1.2 COMPONENTS OF IMC
Let us go through various Components of Integrated
Marketing Communication:
1.The Foundation -As the name suggests, foundation stage
involves detailed analysis of both the product as well as target
market. It is essential for marketers to understand the brand, its
offerings and end -users. You need to know the needs , attitudes
and expectations of the target customers. Keep a close watch
on competitor’s activities.
2.The Corporate Culture -The features of products and services
ought to be in line with the work culture of the organization.
Every organization has a visi on and it’s important for themunotes.in

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3marketers to keep in mind the same before designing products
and services. Let us understand it with the help of an example.
Organization A ’s vision is to promote green and clean world.
Natura lly its products need to be eco -friendly and
biodegradable, in lines with the vision of the organization.
3.Brand Focus -Brand Focus represents the corporate identity of
the brand.
4.Consumer Experience -Marketers need to focus on consumer
experience which refers to what the customers feel about the
product. A consumer is likely to pick up a product which has
good packaging and looks attractive. Products need to meet
and exceed customer expectations.
5.Communication Tools -Communication tools include various
modes of promoting a particular brand such as advertising,
direct selling, promoting through social media such as
Facebook, T witter, Orkut and so on.
6.Promotional Tools -Brands are promoted through various
promotional tools such as trade promotions, personal selling
and so on. Organizat ions need to strengthen their relationship
with customers and external clients.
7.Integration Tools -Organizations need to keep a regular track
on customer feedbacks and reviews. You need to have specific
software like customer relationship management (CRM )w h i c h
helps in measuring the effectiveness of various integrated
marketing communications tools.
Integrated marketing communication enables all aspects of
marketing mix to work together in harmony to promote a
particular product or service effectively a mong end -users.
1.1.3OBJECTIVES:
Once they have developed products and services,
organizations must communicate the value and benefits of the
offerings to both current as well as potential customers in both
business -to-business and business -to-consumer markets.
Integrated marketing communications (IMC) provide an approach
designed to deliver one consistent message to buyers across an
organization’s promotions that may span all different types of
media —TV, radio, magazines, the Internet, mobile phones, an ds o
forth.munotes.in

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4Some important Objectives of IMC are as follows:
1.2ELEMENTS OF IMC:
Integrated marketing communication is the process of
coordinating all the activities across different communication
methods. Effective marketing communication is g oal directed, and it
is aligned with an organization’s marketing strategy. It aims to
deliver a particular message to a specific audience with a
targeted purpose of altering perceptions and/or behavior. Integrated
marketing communication (IMC) makes this m arketing activity more
efficient and effective because it relies on multiple communicationmunotes.in

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5methods and customer touch points to deliver a consistent
message in more ways and in more compelling ways.
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6
Publicity ’sprimary purpose is to get specific info rmation across to
as many people as possible within the shortest time frame. To
record any sale of products or services, customers have to be
aware they exist, and they also have to know the attached benefits.
As the number of people aware of a product or service increases,
the potential for additional sales also increases. While publicity is a
key component of marketing strategies, it is different frommunotes.in

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7marketing because there often is no message beyond letting an
audience know that the product or service i n question exists. A
publicity campaign might be built around making a product or brand
visible through strategies such as product placements or logos on
vehicles that are seen around town. This strategy typically does not
share or describe a product's spe cific benefits, but it puts it in front
of as many eyes as possible.
Advertising is any paid form of communication from an identified
sponsor or source that draws attention to ideas, goods, services or
the sponsor itself. Most advertising is directed towa rd groups rather
than individuals, and advertising is usually delivered through media
such as television, radio, newspapers and, increasingly, the
Internet. Ads are often measured in impressions (the number of
times a consumer is exposed to an advertisemen t).
Sales promotions consist of other types of promotions —coupons,
contests, games, rebates, mail -in offers, and so forth —that are not
included as part of another component of the communication mix.
Sales promotions are often developed to get customers an d
potential customers to take action quickly, make larger purchases,
and make repeat purchases. Many stores now place coupons next
to products to encourage consumers to select a particular brand
and products.
Sponsorships go hand -in-hand with events, as organizations
affiliate themselves with events and organizations by signing on to
co-sponsor something available to the community. Sponsorships
cover the gamut: charitable events, athletes, sports teams,
stadiums , trade shows and conferences, contests, scho larships,
lectures, concerts, and so forth. Marketers should select
sponsorships carefully to make sure that they are affiliating with
activities and causes that are well managed and strategically
aligned with the public image they are trying to cultivate.
Personal selling is an interactive, paid approach to marketing that
involves a buyer and a seller. The interaction between the two
parties can occur in person, by telephone, or via another
technology. Whatever medium is used, developing a relationship
with the buyer is usually something the seller desires.
Both the buyer and seller have objectives they hope to
achieve. Although business -to-business markets utilize more
personal selling, some business -to-consumer markets do as well. If
you have ever atten ded a Tupperware party or purchased
something from an Amway representative, you’ve been exposed to
personal selling.munotes.in

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8Public relations (PR) help improve and promote an organization’s
image and products by putting a positive spin on news stories.
Public rel ations’ materials include press releases, publicity, product
placement, and sponsorships. Companies also use PR to promote
products and to supplement their sales efforts. PR is often
perceived as more neutral and objective than other forms of
promotion bec ause much of the information is tailored to sound as
if it has been created by an organization independent of the seller.
Many companies have internal PR departments or hire PR firms to
find and create public relations opportunities for them. As such, PR
is part of a company’s promotion budget.
Packaging of the product is equally part of the product, since the
packaging can covey in little words what the product is. The main
purpose of packaging is to protect the content of the product from
its environmen t, but it can also perform other functions such as to;
inform customers of price, ingredients and product use, brand and
product recognition, attract attention, break through competitive
clutter at the point of purchase and ultimately motivate consumers’
brand choices etc.
Direct marketing involves delivering personalized promotional
materials directly to individual consumers. It provides an interactive
approach for organizations to reach consumers in hope of getting
consumers to take action. Materials may be delivered via mail,
catalogues , Internet, e -mail, telephone, or direct -response
advertising. Several benefits of direct marketing include the ability
to target a specific set of customers, measure the return on
investment (ROI), and test different stra tegies before implementing
to all targeted consumers. However, direct marketing is very
intrusive and many consumers may ignore attempts to reach them.
Digital Marketing is an umbrella term for using a digital tool to
promote and market products, services , organizations and brands.
As consumers and businesses become more reliant on digital
communications, the power and importance of digital marketing
have increased. The direct marketing section of this chapter
already discussed two digital tools: email and mobile marketing,
which fit into both categories. This section will discuss other
essential tools in the digital marketing tool kit: Web sites, content
marketing and search -engine optimization (SEO), and social media
marketing.
1.3FEATURES OF IMC
By in tegrating tools such as advertising, direct mail, social
media, telemarketing and sales promotion, you provide clarity,
consistency and maximum communications impact, according to
the American Association of Advertising Agencies’ definition.munotes.in

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9a)Receive Bet ter Results
In the traditional approach to marketing communications,
businesses and their agencies plan separate campaigns for
advertising, press relations, direct marketing and sales promotions.
Integrated campaigns use the same communication tools to
reinforce each other and improve marketing effectiveness. In an
integrated campaign, you can use advertising to raise awareness of
a product and generate leads for the sales force.
By communicating the same information in press releases
and feature articles, you reinforce the messages in the advertising.
You can then use direct mail or email to follow up inquiries from the
advertising or press campaigns and provide prospects with more
information. To help convert those prospects to customers, you can
use tele marketing to sell directly or make appointments for the
sales team. An active online presence on social media sites like
Facebook and Twitter provide a further set of tools for reaching out
to your customer base.
b)Creative Consistency throughout Channel s
In an integrated campaign, the different tools feature the
same creative treatment. By repeating the headlines, key phrases
and images in each communication, you ensure that prospects and
customers receive consistent messages each time they see one of
the elements of the campaign. Creative consistency helps reinforce
the basic campaign themes by increasing the number of times
prospects see or hear the same message. By working consistently
through several different channels, you can better build awareness
of your business name, brands, offers, catch phrases or other
messages you emphasize.
c)Overall Cost Savings
Creative consistency in your integrated campaigns can also
save you money. By using the same images and adapting the
same copy for different medi a, you reduce copy -writing, design and
photography costs. Expensive video production output can be used
in multiple media like television, YouTube and Facebook. If you
work with external communications suppliers, you may be able to
reduce agency fees by wo rking with a single firm that offers
integrated communications services, rather than separate specialist
agencies.
d)Aligning with Customer Preferences
An integrated campaign helps you provide customers with
information in the format they prefer. Consume rs and business
customers can specify if they want to receive product information
via email, direct mail, text message or telephone. Clients that you
do not reach directly can still benefit from your campaigns by
viewing your print ads or hearing your radi o and TV spots.munotes.in

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10Integration ensures that customers and potential customers receive
the same information in all communications. You can also meet the
needs of customers who search the Internet for product information
by integrating your website design and c ontent with other
communications.
1.4 IMC PLANNING PROCESSOR STEPS INVOLVED
IN IMC PLANNING PROCESS
Step 1. Review of Marketing Plan:
Before developing a promotional programme, it is important to
understand where the company’s (or the brand) current posi tion is
in the market, where it intends to go and how it plan to get there. A
marketing plan is a written document describing the overall
marketing strategy and programme developed for the organization,
a particular product line or a brand.
Marketing plan included the following basic elements:
1. A detailed situation analysis that consists of an internal
marketing audit and an external analysis of the market
competition and environmental factors.
2. Specific marketing objectives that provide direction, a t ime frame
for marketing activities, and a mechanism for measuring
performance.
3. A marketing strategy and programme that include selection of
target market(s) decisions and plans for the four elements of the
marketing mix.
4. A programme for implementing the marketing strategy, including
determining specific tasks to be performed and responsibilities.
5. A process for monitoring and evaluating performance and
provid ing feed back so that proper control can be maintained
and any necessary changes made in the marketing strategy or
tactics.
A promotional programme is an integral part of the marketing
strategy. It will give an idea of the role of advertising and other
promotional mix element will play in the overall marketing
programme.
Step 2.Promotional Progr amme Situational Analysis:
The next step in developing promotional plan is to conduct
the situation analysis. A situation analysis involves the internal
analysis and external analysis. Internal analysis assesses relevant
area involving the product/service offering and the firm itself.munotes.in

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11The capabilities of the firm and its ability to develop and
implement a successful promotional programme, the organization
of promotional department and the success and failures of past
programmes are reviewed.
The analysis studies the relative advantages and
disadvantages of performing the promotional functions. For
example, the internal analysis may indicate the firm is not capable
of planning, implementing and managing certain areas of the
promotional programme.
If this is the case, it would be wise to look for assistance
from an advertising agency or some other promotional facilitator. If
the organization is already using an advertising agency, the focus
will be on the quality of the agency’s work and the results achieve d
by past and/current campaigns.
The other aspect of internal analysis is assessing the
strengths and weaknesses of the firm or the brand from an image
perspective. Often, the image of the firm brings to the market will
have a significant impact on its pr omotional programme.
Another aspect of the internal analysis is the assessment of
the relative strengths and weaknesses of the product or service in
comparison to its competitors, unique selling points or benefits it
has, its price, design, packaging to h elp the creative personnel to
develop advertising message for the brand.
External analysis focuses its attention on the firm’s
customers, market segments, positioning strategies, and
competitors. An important part of the external analysis is a detailed
consideration of customers in terms of their characteristics and
buying patterns, their decision processes, and factors influencing
their purchase decisions.
Attention must also be given to consumer’s perceptions and
attitudes, lifestyles, and criteria used in making purchase decisions
often. Marketing research studies are necessary to answer some of
these questions.
A key element of the external analysis is an assessment of
the market. The attractiveness of various market segments must be
evaluated and the decision made as to which segment (s) to target.
Once the target markets are chosen, the emphasis will be on
determining how the product should be positioned? What image or
place should it have in consumers’ minds?
The external phase of the promotional p rogramme situation
analysis also includes an in depth examination of both direct andmunotes.in

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12indirect competitors. While competitors were analyzed in the overall
marketing situation analysis, even more attention is devoted to
promotional aspects at this phase.
Focus is on the firm’s primary competitors; their specific
strengths and weaknesses; their segmentation, targeting and
positioning strategies; and the promotional strategies they employ.
The size and allocation of their promotional budgets, their media,
strategies, and the messages they are sending to the market place
should also be considered.
Step 3.Analysis of Communication Process:
This stage involves to know how the company can effectively
communicate with consumers in its target market. It involves t he
communication decision regarding the use of various sources,
messages and channel factors. It involves the analysis of effects of
various types of advertising messages might have on consumers
and whether they are appropriate for the product or brand.
An important part of this stage of the promotional planning
process is establishing communication goals and objectives.
Communication objectives refer to what the firm wants to
accomplish with its promotional programmes Russel Colley have
identified 52 poss ible advertising objectives.
The communication objectives may include creating
awareness or knowledge about a product and its attributes or
benefits, creating an image or developing favorable attitudes,
preferences or purchase intentions.
Step 4.Budget Determination:
In budget determination, the two basic questions that should
be asked includes what will the promotional programme’s cost?
How will these funds be allocated? Budget determination procedure
involves selecting the various budgeting ap proache sa n d
integrating them. At this stage, the budget is often tentative. It may
not be finalized until specific promotional mix strategies are
developed.
Step 5.Developing the Integrated Marketing Communications
Programme :
At this stage, decisions are made regarding the role and
importance of each element and their coordination with one
another. Each promotional mix element has its own set of
objectives and a budget and strategy for meeting them.munotes.in

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13Decisions must be made and activities performed to
implement the promotional programmes. Procedures are developed
for evaluating performance and making any necessary changes.
Two important aspects of advertising programme are the
development of the message and media strategy. Message
development, often referred to as creative strategy, involve deter -
mining the basic appeal and message the advertiser wishes to
convey to the target audience.
Media strategy involves determining which communications
channels will be used to deliver the advertising message to the
targe ta u d i e n c e .D e c i s i o n sm u s tb em a d er e g a r d i n gw h i c ht y p e so f
media will be used (e.g., Newspapers Magazines, Radio,
Television, bill boards etc.) as well as specific media selections
such as a particular magazines or TV programme.
This task requires carefu l evaluation of the media options’
advantages and limitations, costs, and ability to deliver the
message effectively to the target market.
Once the message and media strategies have been
determined, steps must be taken to implement them. Most large
compan ies hire advertising agencies to plan and produce their
messages and to evaluate and purchase the media that will carry
their advertisement.
However, most agencies work very closely with their clients
as they develop the advertise ments and select media, because it is
the advertiser that ultimately approves (and plays for) the creative
work and media plan.
Step 6.Mentoring, Evaluation and Control:
This stage determines how well the promotional programme
is meeting communication objectives and helping th ef i r m
accomplish its overall marketing objectives. This stage is designed
to provide managers with continual feedback concerning the
effectiveness of the promotional programme which is used as input
to subsequent promotional planning and strategy developm ent.
1.5ROLE OF ADVERTISING IN IMC
Advertising is one of the important elements ofintegrated
marketing communication . It's the part that involves getting the
word out concerning your business, product, or the services you
are offering. Advertising and marketing are key elements in a
company's success. One cannot be used without the other.munotes.in

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14This essentially is charged with having a product or service
and creating a need or a perceived desire of the consumer to buy it.
The message is designed to create aw areness that the product
exists, how it will be of value to the consumer or make their lives
easier because they have it and explain why they should buy it
immediately .
This only equals one piece of the pie in the strategy. All of
these ele ments must not only work independently but they also
must work to gether towards the bigger goal. In today's
oversaturated, fragmented media landscape, word -of-mouth
marketing remains a cost -effective part of many advertisers'
marketing mix. Advertising is to "display" one’s wares. It is entirely
passive.
It is a single aspect of marketing, which involves spreading
the word about a business, product, or service offered to the public.
Strategy is definitely a key part here, as there are many aven ues to
use. Advertising can serve for marketing well if it is suitable for the
marketing strategy. It is a way to marketing the products or service
of a company. Advertising is one of the keys to a successful
business.
It isn't what it used t ob e .M e d i ah a sc h a n g e dd r a m a t i c a l l y .
Advertising builds brand awareness, which builds trust and
credibility. Of course, that translates to more purchases.
Advertising and promotions managers may travel to meet
with clients or representativ es of communications media. At times,
public relations managers travel to meet with special -interest
groups or government officials. It reaches people through varied
types of mass communication. In everyday life, people come into
contact with many differen t kinds of advertising.
Advertising Trojans make clandestine connections to ad
servers behind your back, consume precious network bandwidth
and may compromise the security of your data. The latest versions
of these "ad -viruses" operate in full stealth and are nearly
impossible to detect without advanced knowledge of the system
environment.
1.6SUMMARY
With the development of technologies and the increased
popularity of social networks, integrated marketing communication
hasmoved from telling and selling approach to one of listening and
learning. Integrated marketing communication saves time which is
often lost in figuring out the best marketing tool.munotes.in

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15The use of IMC tools for sustainability enables a business to
create the product consumption value, i.e., sufficient information for
consumers and the need for sustainable products, deliberate and
well-through -out buying decisions, buying, etc. Integrated
marketing communication goes a long way in creating brand
awareness among customers at a mi nimal cost.
Integrated marketing communication plays an integral role in
communicating brand message to a larger audience. From the
forgoing it can be adjudged that Integrated Marketing
Communication is a basic necessity in the business of establishing
and maintaining a brand. Integrated Marketing C ommunication
involves combining tools or elements used to communicate a brand
to the public.
In communicating the attributes of a brand, an integrated
approach is imperative. Therefore, an organization that wan ts to
achieve brand awarene ss must without fail integrate their
communication process. Integrated marketing communication
scores over traditional ways of marketing as it focuses on not only
winning new customers but also maintaining long term healthy
relationship with them.
1.7EXERCISE
(A)QUIZ TIME (check your progress)
1.As marketers embraced the concept of integrated marketing
communications, they began to reply primarily on media
advertising. (TRUE or FALSE)
2.The integrated marketing communications ap proach calls for a
centralized messaging function so that everything a company
says and does communicates a common theme and positioning.
(TRUE or FALSE)
3.The goal of integrated marketing communications (IMC) is to
generate both short -term financial return sa n db u i l dl o n g -term
brand and shareholder value. (TRUE or FALSE)
4.The non -personal nature of advertising means that there is
generally ample opportunity for immediate feedback from the
message recipient. (TRUE or FALSE)
5.An advantage of publicity over ot her forms of promotion is its
credibility. (TRUE or FALSE)
6.The first step in the IMC \planning process is to review the
marketing plan and objectives. (TRUE or FALSE)munotes.in

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167.According to the American Marketing Association's definition of
marketing, which of the following statements is true?
A)Most marketers are seeking a one -time exchange or transaction
with their customers.
B)The focus of production -driven companies is on developing and
sustaining relationships with their customers.
C)Successful companies recognize that creating and delivering
value to their customers is extremely important.
D)Though marketing plays an important role in developing
relationships with customers, it does not help in maintaining
them.
E)By definition, a marketing transaction has to involve t he
exchange of money.
8.The process of assimilating mass -media advertisements with
other promotional elements such as direct marketing, public
relations, and sales promotion is known as
A)Media fragmentation.
B)Micromarketing.
C)Integrated Marketing Communication s.
D)Social Media
E)Digital Advertising
9.The primary goal of an integrated marketing communications
program is to
A.)Have a company's entire marketing and promotional activities
project a consistent, unified image to its customers.
B.)Control all facets of a product 's distribution.
C.)Communicate with customers primarily through mass -media
advertising.
D.)Have complete control over all the channel partners in the
distribution channel and to slow down the rate of diffusion of a
new product among the customers.
E.)Create a stro ng distribution network, via marketing, that is
capable of destabilizing any competition.
10.The best -known and most widely discussed form of promotion is
A.)Personal Selling.
B.)Sales Promotion.
C.)Direct Marketing.
D.)Advertising.
E.)Publicity/Public Relation.
11.________ ____is a tool of direct marketing that is used to call
customers directly and attempts to sell them products and services
or qualify them as sales leads.
A.)Bait advertising
B.)Buzz marketingmunotes.in

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17C.)Telemarketing
D.)Switch marketing
E.)B2B marketing
12.___________ includes th ose marketing activities that provide
extra value or incentives for purchasing a product, such as coupons
and premiums.
A.)Direct Marketing
B.)Advertising
C.)Public Relations
D.)Sales Promotion
E.)Publicity
13.Sales promotions targeted at the ultimate users of a product ,
such as sampling, coupons, contests, or sweepstakes, are part of
________________.
A.)Consumer -oriented Sales Promotion.
B.)Trade -oriented Sales Promotion.
C.)Buzz Promotion.
D.)Bait-and-Switch Sales Promotion.
E.)Channel -initiated Sales Promotion.
14._________refers to non-personal communication regarding an
organization, product, service, or idea not directly paid for or run
under identified sponsorship.
A.)Advertising
B.)Sales Promotion
C.)Publicity
D.)Public Relations
E.)Telemarketing
15.When an organization systematically plans an d distributes
information in an attempt to control and manage its image and the
nature of the publicity it receives, it is engaging in a function known
as
A.) Buzz Marketing.
B.) Reactive disinformation.
C.) Bait -and-switch Marketing.
D.) Public Relations .
E.) Sales Promotion.
(B)THEORY QUESTIONS
Q.1) Define Integrated Marketing Communication (IMC).
Q.2) State the main tools of Integrated Marketing Communication.
Q.3) State the importance of Integrated Marketing Communication.
Q.4) What are the steps in volved in framing Integrated Marketing
Communication?munotes.in

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18SOLUTION to the QUIZ:
1.As marketers embraced the concept of integrated marketing
communications, they began to reply primarily on media
advertising.
FALSE
As marketers embraced the concept of integrated marketing
communications, they began asking their ad agencies to
coordinate the use of a variety of promotional tools rather than
relying primarily on media advertising. A number of
companies also began to look beyond traditional advertising
agencies and use other types of promotional specialists.
2.The integrated marketing communications approach calls for a
centralized messaging function so that everything a company says
and does communicates a common theme and positioning.
TRUE
The integra ted marketing communications approach seeks to
have all of a company's marketing and promotional activities
project a consistent, unified image to the marketplace. It
recognizes that every customer interaction with a company or
brand across a host of conta ct points represents an
opportunity to deliver on the brand promise, strengthen
customer relationships, and deepen loyalty.
3.The goal of integrated marketing communications (IMC) is to
generate both short -term financial returns and build long -term
bran da n ds h a r e h o l d e rv a l u e .
TRUE
Integrated marketing communications is a strategic business
process used to plan, develop, execute, and evaluate
coordinated, measurable, persuasive brand communications
programs overtime with consumers, customers, prospects,
employees, associates, and other targeted relevant external
and internal audiences. The goal is to generate both short -
term financial returns and build long -term brand and
shareholder value.
4.The non -personal nature of advertising means that there is
generally ample opportunity for immediate feedback from the
message recipient.
FALSE
The non -personal nature of advertising means that there is
generally no opportunity for immediate feedback from the
message recipient (except in direct -response advertisi ng).
Therefore, before the message is sent, the advertiser must
consider how the audience will interpret and respond to it.munotes.in

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195.An advantage of publicity over other forms of promotion is its
credibility.
TRUE
Consumers generally tend to be less \sceptical toward
favourable information about a product or service when it
comes from a source they perceive as unbiased.
6.The first step in the IMC \planning process is to review the
marketing plan and objectives.
TRUE
The first step in the IMC planning pro cess is to review the
marketing plan and objectives. Before developing a
promotional plan, marketers must under stand where the
company (or the brand) has been, its current position in the
market, where it intends to go, and how it plans to get there .
7.According to the American Marketing Association's definition of
marketing, which of the following statements is true?
A.) Most marketers are seeking a one -time exchange or
transaction with their customers.
B.) The focus of production -driven companies is on devel oping
and sustaining relationships with their customers.
C.)Successful companies recognize that creating and
delivering value to their customers is extremely important.
D.)Though marketing plays an important role in developing
relationships with customers, it does not help in maintaining them.
E.)By definition, a marketing transaction has to involve the
exchange of money .
8.The process of assimilating mass -media advertisements with
other promotional elements such as direct marketing, public
relations, and sale s promotion is known as
A)Media fragmentation.
B)Micromarketing.
C)Integrated Marketing Communications.
D)Social Media
E)Digital Advertising
9.The primary goal of an integrated marketing communications
program is tomunotes.in

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20A.) Have a company's entire marketing and pro motional
activities project a consistent, unified image to its customers.
B.)Control all facets of a product's distribution.
C.)Communicate with customers primarily through mass -media
advertising.
D.)Have complete control over all the channel partner s in the
distribution channel and to slow down the rate of diffusion of a new
product among the customers.
E.)Create a strong distribution network, via marketing, that is
capable of destabilizing any competition.
10. The best -known and most widely disc ussed form of promotion
is
A.)Personal Selling.
B.)Sales Promotion.
C.)Direct Marketing.
D.)Advertising.
E.)Publicity/Public Relation.
11. ____ _______ _is a tool of direct marketing that is used to call
customers directly and attempts to sell them products and services
or qualify them as sales leads.
A.)Bait advertising
B.)Buzz marketing
C.)Telemarketing
D.)Switch marketing
E.)B2B marketing
12. _____ ______ includes those marketing activities that provide
extra value or incentives for purcha sing a product, such as coupons
and premiums.
A.)Direct Marketing
B.)Advertising
C.)Public Relations
D.)Sales Promotion
E.)Publicity
13.Sales promotions targeted at the ultimate users of a product,
such as sampling, coupons, contests, or sweepsta kes, are part of
________________.
A.)Consumer -oriented Sales Promotion .
B.)Trade -oriented Sales Promotion.
C.)Buzz Promotion.munotes.in

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21D.)Bait-and-Switch Sales Promotion.
E.)Channel -initiated Sales Promotion.
14. _________refers to non -personal communicati on regarding an
organization, product, service, or idea not directly paid for or run
under identified sponsorship.
A.)Advertising
B.)Sales Promotion
C.)Publicity
D.)Public Relations
E.)Telemarketing
15. When an organization systematically plans a nd distributes
information in an attempt to control and manage its image and the
nature of the publicity it receives; it is engaging in a function known
as
A.) Buzz Marketing.
B.) Reactive disinformation.
C.) Bait -and-switch Marketing.
D.) Public Relation s.
E.) Sales Promotion .

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222
ADVERTISING
Unit Structure:
2.0 Objectives
2.1. Introduction to Advertising
2.2. Features
2.3. Evolution of Advertising
2.4. Active Participants
2.5. Importance of Advertising
2.6.Conclusion
2.7.Exercise
2.0 OBJECTIV ES
After studying the unit the students will be able:
Tounderstand the basic concepts of advertising by learning it’s
characteristics, objectives and types.
Tostudy the various features and active participants of
advertising
Tostudy the evolution of ad vertising and its role in marketing
mix
To learn the advantages and importance of advertising to a
business firm and the consumers
To study the classification of advertising based on different
aspects
2.1.INTRODUCTION TO ADVERTISING
2.1.1 Meaning and De finition
Advertising is the action of calling public attention to an idea,
good, or service through paid announcements by an identified
sponsor.
Advertising involves paying to widely spread a message that
identifies a brand (product or service) or an orga nization being
promoted to many people at one time. The typical media that
organizations utilize for advertising includes television, magazines,
newspapers, the Internet, direct mail, and radio. Businesses are
also advertising on social media such as Faceb ook, blogs, Twitter,
and mobile devices. Each medium (television or magazines or
mobile phones) has different advantages and disadvantages.munotes.in

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23According to Kotler –
“Advertising is any paid form of non -personal presentation &
promotion of ideas, goods, or se rvices by an identified
sponsor.”
According to the Advertising Association of the UK –
“Advertising is any communication, usually paid -for,
specifically intended to inform and/or influence one or more
people.”
A simpler (and modern) definition of adverti sing can be –
“A paid communication message intended to inform people
about something or to influence them to buy or try
something.”
For example, mobile phones provide continuous access to people
on the go although reception may vary in different markets .R a d i o s ,
magazines, and newspapers are also portable. People tend to own
more than one radio, but there are so many radio stations in each
market that it may be difficult to reach all target customers. People
typically are doing another activity (e.g., dr iving or studying) while
listening to the radio, and without visuals, radio relies solely on
audio. Both television and radio must get a message to consumers
quickly. Although many people change channels or leave the room
during commercials, television doe s allow for demonstrations. In an
effort to get attention, advertisers have changed the volume for
television commercials for years.
2.1.2 CHARACTERISTICS OFADVERTISING
Paid Form: Advertising requires the advertiser (also called
sponsor) to pay to cre ate an advertising message, to buy
advertising media slot, and to monitor advertising efforts.
Tool forPromotion: Advertising is an element of the promotion
mixof an organization.
One Way Commun ication: Advertising is a one -way
communication where brands communicate to the customers
through different mediums.
Personal orNon-Personal: Advertising can be non -personal
as in the case of TV, radio, or newspaper advertisements, or
highly personal as in the case of social media and other cookie -
based advertisements.
2.1.3OBJECTIVES:
There are three main objectives of advertising. These are:munotes.in

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241.To Inform: Advertisements are used to increase brand
awareness and brand exposure in the target market. In forming
potential customers about the brand and its products is the first
step towards attaining business goals.
2.To Persuade: A persuading customer to perform a particular
task is a prominent objective of advertising. The tasks may
involve buying or tryi ng the products and services offered, to
form a brand image, develop a favourable attitude towards the
brand etc.
3.To Remind: Another objective of advertising is to reinforce the
brand message and to reassure the existing and potential
customers about the brand vision. Advertising helps the brand
to maintain top of mind awareness and to avoid competitors
stealing the customers. This also helps in the word of mouth
marketing.
Other objectives of advertising are subsets of these three
objectives. Advertising plays role in marketing process to achieve
followings things:
4.Brand Positioning : It helps in shaping or improving the image
and perception that people have about the brand.
5.To Remind Audience: To make people recall the brand in case
they have forgotten or to instil the brand’s name in people’s
mind further.
6.To Excite or Create a Need : Advertising displays tempting,
exciting or compelling content that makes people crave for the
product. It’s also used to generate a need by telling people that
they need t he product or service.
7.To Generate Awareness : It helps in making people aware of
the brand in case it is new or not too popular brand.
8.To Increase Outreach : It helps in spreading the word about the
brand by creating a quality and viral content through
Advertising.
With the development of technologies and the increased
popularity of social networks, integrated marketing communications
have moved from the telling and selling approach to one of listening
and learning With the development of technologies and the
increased popularity of social networks, integrated marketing
communications have moved from the telling and selling approach
to one of listening and learning with the development of
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25integr ated marketing communications have moved from the telling
and selling approach to one of listening and learning .
2.1.4 TYPES OF ADVERTISING
Advertising activities can be categorized into above the line,
below the line, and through the line advertising acc ording to their
level of penetration.
Above the line advertising include activities that are largely
non-targeted and have a wide reach. Examples of above the line
advertising are TV, radio, & newspaper advertisements.
Below the line advertising include conversion focused
activities which are directed towards a specific target group.
Examples of below the line advertising are billboards,
sponsorships, in -store advertising, etc.
Through the line advertising include activities which involve
the use of both ATL & BTL strategies simultaneously. These are
directed towards brand building and conversions and make use of
targeted (personalized) advertisement strategies. Examples of
through the line advertising are cookie based advertising, digital
marketing strat egies, etc.
Advertising activities can also be categorized into 5 types
based on the advertisement medium used. These types of
advertisements are:
Print Advertising :N e w s p a p e r ,m a g a z i n e s ,&b r o c h u r e
advertisements, etc.
Broadcast Advertising :T e l e v i s i o n and radio advertisements.
Non-broadcast : Cinema, CCTV, local cable TV, etc.
Outdoor Advertising : Hoardings, banners, flags, wraps, etc.
Transit or vehicular :R a i l w a y s ,P u b l i ct r a n s p o r tb u s e sa n d
Tramps, etc.
The point of purchase : Hangings on stores, Banne rs, Pamphlets,
Stickers, Window Display, Painted signs, etc.
Digital Advertising : Advertisements displayed over the internet
and digital devices.
Product/Brand Integration : Product placements in entertainment
media like TV show, YouTube video, etc.
Special ty media :Calendars ,T-shirts, badges, caps, keychains,
Diaries, etc.
Virtual media : Online Blogs, forums, social media websites, email
ads, etc.
Miscellaneous : Direct mail advertising, Trolleys at the airport,
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262.2FEATUR ESOFADVERTISING
Advertising istheartofinfluencing human action andawakening
ofadesire topossess products andservices. Itisamass persuasion
activity duly sponsored bythemanufacturer, retailer, ordealer forwhom
theadvertising isdone.
Following arethekeyfeatures ofadvertising:
1.Provides information :Advertising's primary purpose istoprovide
information about products orservices totheprospective buyers .The
details ofproducts such asfeatures, uses, prices, benefits,
manufactu rer's name, soon;areintheadvertisements. The key
message andbrand name arealso there. The information supplied
educates andguide consumers andfacilitate them tomake acorrect
choice while buying aproduct.
2.Payment ofMoney :One ofthefeatures ofadvertising istopaythe
money fortheadvertising. Advertisement appear inthenewspapers,
magazines, televisions, cinema screens andwebsite search engine
pages because theadvertiser haspurchased some time/ space to
communicate information tothepotential customers. The advertiser
must paymoney fortheadvertising activities. Healso decides the
size, slogan, etc.given intheadvertisement. Advertising isalways a
paid form ofcommunication andhence commercial innature. Thus,
advertising canclarifybedistinguished from publicity which isnot
paid forbythesponsor.
3.Non-personal presentation :Advertising isnon-personal in
character asagainst salesmanship, which isapersonal orface to
face communication. Here, themessage isgiven toallandnottoone
specific individual. This ruleisapplicable toallmedia including the
press. However, even init,target consumers ortarget market canbe
selected formaking anADappeal.
4.Publicity :Advertising publicizes goods, services, ideas and event
events. Itisprimarily forgiving information toconsumers. This
information isrelated tothefeatures and benefits ofgoods and
services ofdifferent types. Itoffers new ideas tocustomers asits
contents aremeaningful. The aimistomake thepopulari zeideas
andthereby promote sales. Forexample, anadvertisement forfamily
planning, family welfare, andlifeinsurance isuseful forplacing new
ideas before thepeople.
5.Primarily forPersuasion :Advertising aims atthepersuasion of
potential customer s.Itattracts attention towards aparticular product,
creates adesire tohave it,andfinally induces consumers tovisitthe
market and purchase thesame. Ithasapsychological impact on
consumers. Itinfluences their buying decisions.
6.Target oriented :Advertising becomes effective andresult -oriented
when itistarget oriented. Atargeted advertisement intensivelymunotes.in

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27focuses onaspecific market orparticular groups ofcustomers (like
teenagers, housewives, infants, children, etc.). Here, theselection of
aparticular market iscalled atarget market.
7.Art, science and profession :Advertising isart,science and a
profession, and thisisnow universally accepted. Itisanartasit
needs creativity forraising itseffectiveness. Itisascience asithasits
principles orrules. Itisalso aprofession asithasacode ofconduct
foritsmembers andoperates within standards setbyitsorganized
bodies. Initsfield, ADAgencies and space brokers function as
professionals.
8.Theelement ofamarketing mix:Advertising isanimportant partof
amarketing mix. Itsupports thesales promotion efforts ofthe
manufacturer. Itmakes apositive contribution tosales promotion
provided other elements inthe marketing mix are reasonably
favourable .Itisalone inadequ ate forpromoting sales. Many
companies now spend huge funds onadvertisements and public
relations.
9.Creativity :Advertising isamethod ofpresenting aproduct inan
artistic, attractive and agreeable manner. Itispossible through the
element ofcreativ ity.The creative people (professionals) introduce
creativity inadvertisements. Without it,theAds won't succeed.
Therefore, creativity iscalled the‘Essence ofAdvertising.’
2.3EVOLUTION OFADVERTISING
Intheancient and medieval world such advertis ingasexisted
was conducted byword ofmouth. The first step toward modern
advertising came with thedevelopment ofprinting inthe15th and16th
centuries. Inthe17th century ,weekly newspapers inLondon began to
carry advertisements, and bythe18th century such advertising was
flourishing.
The great expansion ofbusiness inthe19th century was
accompanied bythegrowth ofanadvertising industry; itwas that
century, primarily intheUnited States, that saw theestablishment of
advertising agencies. The firstagencies were, inessence, brokers for
space innewspapers. Butbytheearly 20th century agencies became
involved inproducing theadvertising message itself, including copy and
artwork, andbythe1920s agencies hadcome intobeing thatcould plan
and execute complete advertising campaigns, from initial research to
copy preparation toplacement invarious media.
Advertising developed inavariety ofmedia. Perhaps themost
basic was thenewspaper, offering advertisers large circulations, a
readership located close totheadvertiser’s place ofbusiness, andthe
opportunity toalter their advertisements onafrequent andregular basis.
Magazines, theother chief print medium, may beofgeneral interest or
they may beaimed atspecific audiences (suchaspeople interested inmunotes.in

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28outdoor sports orcomputers orliterature) andoffer themanufacturers of
products ofparticular interest tosuch people thechance tomake contact
with their most likely customers. Many national magazines publish
regional editions, permitting amore selective targeting ofadvertisements.
InWestern industrial nations television and radio became themost
pervasive media. Although insome countries radio and television are
state -runandaccept noadvertising, inothers advertisers areable tobuy
short “spots” oftime, usually aminute orless induration. Advertising
spots arebroadcast between orduring regular programs, atmoments
sometimes specified bytheadvertiser and sometimes leftuptothe
broadcaster. Foradvertisers themost important facts about agiven
television orradio program arethesizeandcomposition ofitsaudience.
The size ofthe audience determines the amount ofmoney the
broadcaster can charge anadvertiser, and thecomposition ofthe
audience determines theadvertiser’s choice astowhen acertain
message, directed atacertain segment ofthepublic, should berun.The
other advertising media include direct mail, which canmake ahighly
detailed andpersonalized appeal; outdoor billboards andposters; transit
advertising, which can reach themillions ofusers ofmass -transit
systems; and miscellaneous media, including dealer displays and
promotional items such asmatchbooks orcalendars.
Inthe21st century, with anintensely competitive consumer
market, advertisers increasingly used digital technology tocallgreater
attention toproducts. In2009, forexample, theworld’s first video
advertisements tobeembedded inaprint publication appeared in
Entertainment Weekly magazine. The thin battery -powered screen
implanted inthepage could store upto40minutes ofvideo viachip
technology andautomatically began toplaywhen thereader opened the
page.
For anadvertisement tobeeffective, itsproduction and
placement must bebased onaknowledge ofthepublic andaskilled use
ofthe media. Advertising agencies serve toorchestrate complex
campaigns whose strategies ofmedia usearebased onresearch into
consumer behaviour and demographic analysis ofthemarket area. A
strategy willcombine creativity intheproduction oftheadvertising
messages withcanny scheduling andplacement, sothatthemessages
areseen by,andwillhave aneffect on,thepeople theadvertiser most
wants toaddress. Given afixed budget, advertisers face abasic choice:
they canhave their message seen orheard bymany people fewer times,
orbyfewer people many times. This andother strategic decisions are
made inlightoftests oftheeffectiveness ofadvertising campaigns.
There isnodispute over thepower ofadvertising toinform
consumers ofwhat products areavailable. Inafree-market economy
effective advertising isessential toacompany’s survival, forunless
consumers know about acompany’s product they areunlikely tobuyit.
Incriticism ofadvertising ithasbeen argued thattheconsumer must pay
forthecost ofadvertising intheform ofhigher prices forgoods; againstmunotes.in

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29this point itisargued that advertising enables goods tobemass
marketed, thereby bringing prices down. Ithasbeen argued thatthecost
ofmajor advertising campaigns issuch thatfewfirms canafford them,
thus helping these firms todominate themarket; ontheother hand,
whereas smaller firms may notbeable tocompete withlarger ones ata
national level, advertising atthelocal level oronlineenables them tohold
their own. Finally, ithasbeen argued thatadvertisers exercise anundue
influence over theregular contents ofthemedia they employ —the
editorial stance ofanewspaper orthesubject ofatelevision show. In
response ithasbeen pointed outthatsuch influence iscounteracted, at
least inthecase offinancially strong media firms, bytheadvertiser’s
reliance onthemedia toconvey amessage; anycompromise ofthe
integrity ofamedia firm might result inasmaller audience forthe
advertising.
2.4ACTIVE PARTICIPANTS IN ADVERTISING:
Participants are individuals/ organizations that are actively involved
in advertising.
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30
1.Advertiser: The advertiser canbeanyfirm, individual, Government
orsocial organization who wants toadvertise their products, services
orhighlight anysocial issues orideas togeneral public toraise their
awareness levels andpromote their products andideas. This group
also includes retailers asthey also display various products intheir
shops forsellingthem tothecustomers.
2.Target Audience :Target audience refers tothedesired audience to
whom amanufacturer wants totarget forpromoting andselling his
products. Target audience may include only aparticular segment of
customers ormass audience .Through advertising, thatmanufacturer
tries toarouse interest initsdesired audience sothat they get
attracted towards hisproducts andultimately getpersuaded tobuy
them. Thus, thetarget audience refers totherecipient ofthe
messages advocated bytheadvertisements.
3.Advertising Agencies :Advertising agencies consist ofhighly
creative andprofessionalized people who areentrusted withthetask
ofdesigning, developing andproducing adsandshowing andprinting
them through appropriate media i.e.T.V., magazines, newspapers,
radio, publications, etc.These agencies areservice based business
and socharge their clients forproducing and popularizing their
products, services or ideas amongst masses through
advertisements. Advertising agencies arecreative teams consisting
oflayout designers, editors, photographers, copywriters, artists, etc.
These agencies even undertake market research onbehalf oftheir
clients. Inshort, advertising agencies arethemedium through which
afirm, individual, socialorGovernment organization canpromote and
communicate about itsgoods, services and ideas amongst the
masses.
4.Advertising Production People :Advertising production people
comprise ofallthose who aredirectly orindirectly concerned with
production and development ofadvertisements. Attractive and
persuasive advertisements arearesult ofthecollective efforts putin
bylayout designers, editors, photographers, copywriters, artists, etc.,
who comprise theadvertising production people. These people aremunotes.in

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31employed byadagencies ortheir services arehired byadagencies
forcarrying outthefunctions ofdesigning and producing ads. It
requires ahigh degree ofcreativity, skills andtalent onthepart of
these people toplan and develop anadvertiseme ntthat would
spread themessage oftheadvertisement effectively amongst the
masses.
5.Target Audience (Readers, Listeners, Viewers andPresent and
Future Buyers) :The target audience comprise ofthereaders,
listeners, viewers and present and future buye rswho are the
recipients ofthemessages given byadvertisements about any
product, service oridea. The target audience canbegrouped into
three groups asfollows: a)Consumers who areloyal toaparticular
brand andthrough advertisements they arepersuaded tostick tothe
brand. b)Consumers who areloyal toacompetitor’s brand andso
through advertisements they arepersuaded toswitch tothebrand
advertised byhighlight itsbetter features, usage and benefits as
compared toitscompetitor’s brand. c)Consumers who donotuse
anysuch product which isadvertised. Thus, they too,arepersuaded
tobuytheadvertised product andgain benefits outofit.
6.Mass Media :Mass media includes T.V, newspapers, radio,
magazines, publications, internet, websites, etcthrough which the
advertising messages aretobehighlighted andcommunicated tothe
masses. Depending onthetype oftheadvertising message andthe
target audience, anappropriate medium forcommunicating the
message istobechosen bytheadvertisi ngagencies. The main
elements ofmass media arelisted asfollows:
(a)Print Media: Itincludes those sources which print andpublish the
advertising messages. Print media comprises ofnewspapers,
magazines, publications, journals, etc.
(b)Electronic Media :People can even obtain information about
various products, services and ideas through electronic media
which includes internet, ads shown ontelevision, radio,
multimedia, etc.
(c)Outdoor Media :Outdoor media consists ofneon signs,
billboards, posters, hoardings, airballoons, handbills, etc.
(d)Direct Mail: Advertising messages caneven becommunicated
directl ytothetarget audience bysending them letters, broachers,
pamphlets, leaflets, etc.
7.Government Authorities :Theadvertising fieldisbound withcertain
well defined norms, standards and code ofconduct laiddown by
various advertising regulating authorities. Alladvertising firms are
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32Government frames various laws and regulations which all
advertising firms arerequired tofollow. InIndia, advertising regulating
authorities include, The Advertising Standards Council ofIndia
(ASCI) andAudit Bureau ofCirculation (ABC).
8.Advertising Production Firms :Asthename suggests, advertising
producti onfirms areengaged with production and development of
advertisements. Bysecuring thecollective help andcreativity ofthe
advertising production people, these firms produce advertisements of
their clients. The advertising production firm isresponsible for
planning, designing, and producing afinal adtotransmit the
advertising effectively amongst themasses.
2.5IMPORTANCE OFADVERTISING
Advertising plays avery important role intoday’s age of
competition. Advertising isonething which hasbecome anecessity for
everybody intoday’s daytodaylife,beittheproducer, thetraders, orthe
customer. Advertising isanimportant part. Let’s have alook onhow and
where isadvertising important:
2.5.1ROLE OF ADVERTISING IN MARKETING MIX
Advertising technically lieswithin the"Promotion" part ofthe
Marketing Mix, butitapplies toalltheother "P's" aswell. Promoting your
business isone ofthekey ingredients tomaking your business
successful. Promotion, along with agreat product, keyplacement ,and
anaffordable price, willhelp youwork your waytothetop.
Promoting yourself does notmean leaving your advertising upto
theword ofmouth ofyour current customer. Word ofmouth isnot
technically aform ofadvertising forabusiness because advertising is
supposed tohelp your business. With word ofmouth there areafew
things youcan't control, such as:
(i)Youcan't control what issaidabout your company
(ii)Youcan't control when your company isbeing talked about
(iii)Youcan't controltheaccuracy ofinformation given toothers.
Notbeing able tocontrol these things may lead tothedownfall ofyour
company.
Taking control ofthese three things isvery important when it
comes tothesuccess ofyour business. That iswhy there isadvertising
made byyour company foryour company. Whether youchoose aflyer,
brochure, commercial, paper ad,orawebsite, getting your name out
there inagood light, attheappropriate time andwithcorrect information
isthekeytohelping your busines ssucceed.munotes.in

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33Thevariables ofmarketing mixthatareaffected byadvertising are:
(a)Advertising andProduct :Aproduct isnormally asetofphysical
elements, such asquality, shape, size, colour andother features. The
product maybeofvery high quality. Attimes, theproduct issodesigned
thatitrequires careful handling andoperations. Buyers must beinformed
and educated onthevarious aspects oftheproduct. This can be
effectively done through advertising. So,advertising plays therole of
informat ionandeducation.
(b)Advertising and Price: The price istheexchange value ofthe
product. Amarketer may bring outavery high quality product with
additional features ascompared tocompetitors. Inthatcase, price would
bedefinitely high, butbuyers maynotbewilling topay. This iswhere
advertising comes in.Advertising can convince buyers regarding the
superiority ofthebrand andthus itsvalue formoney. This canbedone
byassociating theproduct withprestigious people, situations, orevents.
Alternatively, when afirmoffers alowprice product thejobofadvertising
needs tostress theprice advantage byusing hard-hitting copy. Itisnot
justenough toconvince thebyer, butitisdesirable topersuade the
buyers. Inessence, advertising playsthe role ofconviction and
persuasion.
(c)Advertising andPlace :Place refers tophysical distribution andthe
stores where thegoods areavailable. Marketer should seetoitthatthe
goods areavailable attheconvenient place andthattooattheright time
when thebuyers need it.Tofacilitate effective distribution andexpansion
omarket, advertising isvery important. Effective advertising helps in
effective product distribution andthemarket expansion.
(d)Advertising and Promotion :Promotion consists ofadvertising,
publicity, personal selling and sales promotion technique. Business
people today have toface alotofcompetition. Every seller needs
effective promotion tosurvive andsucceed inthiscompetitive business
world. Advertising canplay asignificant roletoputforward theclaim of
seller, and tocounter theclaims ofcompetitor. Through effective
advertising, sellers canface competition andalso help todevelop brand
image andbrand loyalty.
(e)Advertising and Pace :Pace refers tothespeed inmarketing
decisions andactions. Itinvolves among other things thelaunch ofnew
products orbrand variations atgreater speed than before. When new
bands arelaunched, advertising plays animportant role ofinforming,
educating andpersuading thecustom erstobuytheproduct.
(f)Advertising and Packaging :The main purpose ofpackaging is
protecting oftheproduct during transit, andpreservation ofquality and
quantity. Today, marketers make alotofeffort todevelop anddesign
attractive packages asthey carry advertising value. Acreatively designedmunotes.in

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34package attracts theattention ofcustomers. Italso carries anassurance
ofquality andcreates confidence intheminds ofcustomers tobuythe
product.
(g)Advertising andPositioning :Product positioning aims atcreating
and maintaining adistinct image ofthebrands intheminds ofthe
customers. Through advertising themarketer canconvey thepositioning
ofthebrand and accordingly caninfluence thebuying decision ofthe
target audience.
Thus, wecanconclude bysaying, advertising isanessential partofthe
marketing mixandisused topromote sales, tointroduce new products ,
tocreate agood public image foracompany, assist inlarge scale of
production ofproducts, andforeducating people about anewproduct.
2.5.2 Benefits of Advertising to the Business Firms
There are number of advantages of advertising and without
advertising today it has become hard to market your product.
Advertising is an art of influencing the customers through paid non
personnel presentation to purchase and possess a product. It is
possible to formulate the definition of advertising as an instrument
of marketing communication oriented to the dissemination of
information with the aim of attracting customers to the goods and
services of the company.
Thus, advertising has the following advantages/ benefits to a
business firm :
1.Awareness : Advertising increases the brand and product
awareness among the people belonging to the target market.
2.Brand Image : Clever advertising helps the business to form the
desired brand image and brand personality in the minds of the
customers.
3.Product Differentiation : Advertising helps the business to
differentiate its product from those of competitors’ and
communicate its features and advantages to the target
audience.
4.Increases Goodwill : Advertising reiterates brand vision and
increases the goodwill of the brand among its customers.
5.Value for Money : Advertising delivers the message to a wide
audience and tends to be value for money when compared to
other elements of the promotion mix.
2.5.3 Benefits of Advertising to the Customers
Advertising not only benefits the producers and traders but
benefits the customer as well. Advertising provides awareness of
the existence of the product to the custome r. Customer satisfaction
is of immense priority in modern marketing and the importance of
advertising can’t be ignored as such. The importance of advertising
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351.Convenience :W h e nw ek n o wt h a tw eh a v e to buy the product
of a particular brand name, we shall not waste our time in
searching out for the best one. We can make a choice even
before we go to the market.
2.Education of the consumers : Advertisements help us to
become aware of the uses of a new pr oduct and the functioning
of the electronic items. If there are no advertisements, we shall
never be able to know about the new companies that enter the
market or the introduction of new and better products in the
market.
3.Fair prices : Advertisements reduc es the cost of the product by
providing the firms with the advantages of economies of scale
and the elimination of the middleman. As a result, customers get
goods at lower prices. Many expensive products of yesteryears
have come within the reach of the com mon masses due to
continuous advertising and consequent reduction in prices.
Prices of widely advertised products tend to be stable during
adverse business conditions such as depression.
4.Better quality : As said earlier, the producers always try to
retain their old consumers and make new ones by introducing
some special changes in their product to make them
differentiable from the others. Manufacturers are forced to
maintain better standards of the commodity to retain
consumers.
5.Contact between producers and consumers : Advertisements
provide links or contact numbers of the product or th eservice so
that the consumers can report their grievances against the use
of certain products so that the quality can be bettered. Hence, it
brings the consumers and the p roducers closer to each other.
2.5.4 Benefits of Advertising to the Society
1.Educate People: Advertising has aremarkable ability toreach
masses andeducate thesociety. Therefore, many Governments and
even Non-Governmental Organizations (NGO) often takehelp of
advertisements toreach and educate people onimportant social
issues. Thus, advertising plays avery important roleinsociety.
Creative ads released inthepublic interest teach people about:
Family planning, AIDS awareness, Saving water and electricity,
Giving children compulsory education, Providing aright kind of
nutrition tothemother and hernew-born infant, Abolishing child
labour ,etc.
2.Provides Employment: Advertising helps toprovide employment to
persons engaged inwriting, designing andissuing advertisements.
Increased employment brings additional income with thepeople. It
increases more demand inthemarket. Employment isfurther
generated tomeet theincreased demand.munotes.in

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363.Promote theStandard ofLiving: Advertising helps toincrease the
standard ofliving ofthepeople byincreasing thevariety andquality in
consumption. Itraises thestandard ofthepeople. Asaresult, ithelps
insustained research anddevelopment activities bymanufacturers.
4.Sustains thePress andOther Media: Advertising helps tosustain
thepress and other media byproviding animportant source of
income tothepress, radio, andtelevision networks. The customers
arealso benefited because oftheincreased circulation oftheir
publications. Italsoencourages commercial art.
2.6CONCLUSION
Advertising is the best way to communicate to the
customers. Advertising helps informs the customers about the
brands available in the market and the variety of products useful to
them. Advertising is for everybody includin g kids, young and old. It
is done using various media types, with different techniques and
methods most suited. The advertising is a highly cost incurring
method, its efficiency and effectiveness should be en sured. It is for
this, purpose that concept of s cientific advertising should be
carefully planned and efficiently implemented and promptly
monitored and controlled.
2.7EXERCISE
I.)QUIZ TIME to check your progress
1.The choice of medium of advertisement depends on the
contents of the message.
a) True
b) False
2.The choice of medium of advertisement depends on the
contents of the message.
a) True
b) False
3.Which of the following is true of advertising?
A)Advertising attempts to create a personal r elationship with the
consumers.
B)The nature and purpose of advertising is usually the same
across various industries.
C)Advertising is a valuable tool for building brand and company
equity.
D)Advertising is used only for the promo tion of mass consumer
products.
E)One disadvantage of advertising is that it is extreme ly personal
to consumers.munotes.in

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374.Advertising involves dissemination of information about a
produce, service to induce people to take actions beneficial to
_________________.
A.)Advertiser.
B.)Sponsor.
C.)Marketing manager.
D.)Firm.
E.)Retailer.
5.Advertisement is a mass communic ation. It addresses to
masses and it’s a form of ____________________________
communication.
A.)Personal
B.)Non personal
C.)Direct
D.)Indirect
E.)None of these
6.With respect to consumer markets, advertising done by
manufacturers of well -known brands on a countrywide basis or in
most regions of the country is known as ____________ advertising.
A.)Professional
B.)Trade
C.)Business -to-business
D.)National
E.)Direct -response
7.Which of the following is a primary difference between publicity
and advertising?
A.)Unlike advertising, publicity is done only by retailers
B.)Unlike publicity, advertising does not utilize mass media.
C.)Unlike advertising, publicity is not paid for by the sponsoring
organization.
D.)Unlike advertising, publicity is institutional in character.
E.)Unlike publicity, advertising lead s to less scepticism among
consumers.
8.Which of the following is a similarity between publicity and
advertising?
A.) Both are nonpaid forms of communication.
B.) Both are run by an unidentified sponsor.
C.) Both involve non -personal communication to a mas sa u d i e n c e .
D.) Both are not directly paid for by the company.
E.) Both frequently provide an opportunity for immediate feedback.munotes.in

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389.The development of the advertising message that the marketer
wants to convey to its target audience is called the
________ _______.
A.)Creative strategy.
B.)Media Strategy.
C.)Distribution Strategy.
D.)Channel Strategy.
E.)User Strategy.
10.Advertisement is a type of _________________.
A.)Outdoor marketing .
B.)Indirect marketing .
C.)Share marketing .
D.)Transaction marketing .
E.)Relationship marketing .
11.The b est advertisement is________________ .
A.)By emails.
B.)Print media.
C.)Television.
D.)A satisfied customer.
E.)Radio .
12.From the perspective of sales, advertisements are required for
_______________.
A.)Profit.
B.)Loss.
C.)Increasing sales.
D.)Decreasing sales.
E.)None of these.
13.“Adver tising is any paid form of non -personal presentation and
promotion of ideas, goods and services by an identified person”.
Who stated this?
A.)Australian marketing Association
B.)European marketing Association
C.)China marketing Association
D.)American marketing Associ ation
E.)Indian marketing Association
14.For making advertisement s more effective, the manufacturers
improve_____________.
A.) Existing products .
B.) Advertisement style .
C.) Marketing channel .
D.)Sponsors .
E.) None of these .munotes.in

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3915.If the aim of the promotion to in troduce a new consumer product
is to achieve high awareness levels, the firm will mostly likely make
heavy use of ________________ in the promotional mix.
F)Advertising
G)Personal Selling
H)Publicity
I)Sales Promotion
II.)THEORY QUESTIONS
Q.1) Define Advertising and explain its nature and features.
Q.2) Explain the importance of Advertising.
Q.3) Enumerate the objectives of advertising in your own words.
Q.4)State the Active Participants in Advertising.
Q.5) What is the interface between Advertising and Brand building?
Q.6) Explain the main approaches in Brand building.
SOLUTION to the QUIZ
1) The choice of medium of advertisement depends on the contents
of the message.
Ans. True
2) The choice of medium of advertisement depends on the contents
of the message.
Ans. True
3) Which of the following is true of advertising?
Ans. Advertising is a valuable tool for building brand and
company equity.
4) Advertising involves dissemination of information about a
produce, service to induce people to take actions benefic ial to
Advertiser.
5)Advertisement is a mass communication. It addresses to masses
and it’s a form of Non personal communication.
6) With respect to consumer markets, advertising done by
manufacturers of well -known brands on a countrywide basis or in
most regions of the country is known as National advertising.
7)Which of the following is a primary difference between publicity
and advertising?
Ans. Unlike advertising, publicity is not paid for by the
sponsoring organization .
8) Which of the following is a similarity between publicity and
advertising?
Ans. Both involve non -personal communication to a mass
audience.munotes.in

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409) The development of the advertising message that the marketer
wants to convey to its target audience is called the creative
strategy .
10) Advertisement is a type of indirect marketing .
11) The best advertisement is a satisfied customer.
12) From the perspective of sales, advertisements are required for
increasing sales.
13) “Advertising is any paid form of non -personal presentation an d
promotion of ideas, goods and services by an identified person”.
Who stated this?
Ans. American marketing Association
14)For making advertisements more effective, the manufacturers
improve existing products .
15) If the aim of the promotion to introdu ce a new consumer
product is to achieve high awareness levels, the firm will mostly
likely make heavy use of advertising in the promotional mix.

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413
CLASSIFICATION OF ADVERTISING
Unit Structure :
3.0 Objective
3.1. Introduction
3.2. Types of Advertising
3.3. Classification of Advertising
3.4. Other types of Advertising
3.5. Summary
3.6. Exercise
3.0 OBJECTIVES
After studying the unit the students will be able:
To learn different types of advertising based on its role and
functions
To study the broad classification of advertising based on
different aspects: c ategorize advertising using function, region,
target market, company demand and media used.
Tou n d e r s t a n d :*Social Advertising, Political Advertising,
Advocacy Advertisin g,Retail Advertising .
To explain Financial Advertising, Essentials for the success of
financial advertising, Advantages of Financial advertising
To explain Corporate Image Advertising, Publi c Relations
Advertising, Institutional Advertising
To explain Internet Advertising, Types, Advantage and
disadvantages of Internet Advertising
To understanding Product Advertising, Service Advertising,
National Advertising, Retail Advertising
3.1INTROD UCTION
Advertising intends to persuade an audience (viewers,
readers or listeners) to purchase or take some action upon
products ,ideas or services. It includes the name of a product or
service and how that product or service could benefit the consumer,
to persuade a target market to purchase or to consume that
particular brand. These advertisements serve to communicate an
idea to the public in an attempt to convince them to take certainmunotes.in

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42action, such as encouraging environment friendly behaviours ,a n d
even unhealthy behaviours through food consumption etc. To
advertise is to draw the public’s attention usually for the purpose of
selling products, or services, through the use of various forms of
media, such as print or broad cast and notices.
Advertising is not only used as a means to promote a
company’s products and services and to drive sales but as a
means to build a brand identity a nd communicate changes of new
product /service to the customers. Advertising has become an
essential element of the corporat e world and it is also the best
known mass communication channel. Advertising provides a direct
line of communication to the existing and prospective customers
about the product or service.
3.2TYPES OF ADVERTISING
Advertising is also classified accordin g to their functions and
role.
Some of the important classifications of advertising are as follows:
1.Social Advertising: Social Advertising is undertaken by non -
commercial organisations such as Trust, Societies, and Charity
Associations etc. The main ob jective of Social Advertising is to
work for social cause. Advertisements for collecting donations
for war victims or for victims of natural calamities, sales of
tickets for a show etc. are examples of Social Advertising.
2.Political Advertising: Political advertising is undertaken by
political parties to motivate the general public in favour of the
ideology of the party in question. Political advertising is
intensively made during election times to gai n favour of the
voters. Such advertising promotes plans and policies of the
concerned party. It also tries to expose weaknesses of the
opposition with a view to convince the voters to vote for their
party ’scandidates. Some political advertisement is also made to
assist the Government to implement its schemes for
rehabilitati on and national reconstruction. Advertisement issued
by a political party is essentially a political advertising.
3.Advocacy Advertising: We often come across advocacy
advertisement relating to the use of family planning methods,
Conservati on of scarce resources , maintaining green
environment, etc. An extreme example occurred in the 1960s,
when a private citizen bought a two -page advertisement in the
New York Times at a cost of $12,000 to offer his peace plan for
ending the war in Vietnam. I n 1974, Mobil Oil Company began
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43to alleviate the energy crisis that existed at the time. NBC
accepted the television commercial, but ABC and CBS did not,
because of the controversial nature of the topic. As a result,
Mobil Oil Company took out full -page newspaper ads, which
reproduced in print the visuals and text for the commercial. This
is designed to alert people to the fact that such ads are not
editorials or informational pieces, but ar es p e c i f i c a l l y served as
advertisements. Companie s can place advocacy advertisement
on billboards, in print magazines and newspapers, online, and
on television. In fact, many advertising firms consider
candidates who have completed advertising internships far
more attractive than those who have not. If you are planning to
begin your career in advertising in the creative department of an
advertising firm, a bachelor's degree may not be as essential.
4.Retail Advertising: Retail advertising is the advertising by
retailers who usually sell goods direct to the customers. Retail
advertising has such objectives as:
i)to sell the stock;
ii)to establish the identify of business;
iii)to attract personal, telephone or mail order shoppers.
Retail advertising is done throug hw i n d o wd i s p l a y ,n e o ns i g n s ,
posters, leaflets etc. It is usually local in character. The various
advertising approaches of Akbarallys, Amarsons, Asiatic
Departmental Stores are the examples of retail advertising.
5.Financial Advertising: When an advertis ing message is
directed to attract for raising capital, it is called financial
advertising. The banks, insurance companies and commercial
undertakings collect required funds from the savings of the
people by motivating them to post -pone present expenditure to
future -period. An investor considers two things before investing
his hard earned savings.
(1)Safety of investment (2) Return on investment
The safety of investment depends upon the reputation and
goodwill of the company and the properties possessed by i t.
The institutional advertising helps in creating confidence in the
minds of the investors. The financial advertisement sinform the
investors about the past performance in declaring dividends and
the trend in declaring of dividend. The dividend depends up on
the profitability of the company. The company with the help of
charts, diagrams etc. communicate the rate of growth and rate
at which profit is increasing. The financial advertising aims at
establishing financial, solvency of the company in the minds of
the prospective investors. It is because of financial advertising
the company have succeeded in floating of mega issue of
shares arc in cores. The financial advertising aims atmunotes.in

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44establishing financial solvency of the company in the minds of
the prospective investors.
Essentials f or the Success of Financial Ads :
No financial ad ca mpaign, howsoever creative and
persuasive it may be, can produce the desired result, unless the
followi ng conditions are satisfied.
(a)The performance and image of the company and it s future
prospects must be good.
(b)The premium, charged on the share price, must be fair and
reasonable.
(c)The brokers and underwriters must extend unqu alified support
to the company.
(d)The company should get wide publicity from the press through
press confere nces.
(e)True statement of facts, made in the ads.
(f)Finally, financial climate of the country plays an important role.
Adva ntages of Financial Advertising :
Following are main advantages of financial advertising:
(g)Financial advertising transmits to target co nsumers all the
material information about new investment opportunities for
investment of savings, or, surplus funds.
(h)It provides education and guidance to consumers in respect of
their investments in shares, debentures, and public funds, off
companies.
(i)It serves as a reminder to consumers to take suitable follow up
action on their part.
(j)It helps to tap yet untapped rich areas in mini -metros, small
towns, and even in villages for financial institutions.
(k)As financial ads are required to give the required in formation
about the aims, objective business operation, for which
additional funds are required by the advertiser, the company
gets wide publicity through such ads.
(l)Financial advertising serves as a backbone to brokers a sw e l l
as underwriters, who are the “intermediaries” between the
advertiser and the clients.
(m)Finally, financial advertising indirectly aids and supports the
economic an dindustrial growth of the country by mobilizing
public funds for expansion and diversification of business.
6.Corpora te Image Advertising :Corporate Image advertising is
designed or aimed to create a proper attitude towards the sellermunotes.in

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45and to build goodwill or image for the advertiser (manufacturing
concern or the selling concern) rather than to sell a specific
product or service. Institutional advertising is done to build good
public relations image in the market for the marketer and a
patronage for its product or products. Institutional advertising
can therefore be patronage advertising and public relations
service adver tising. Public relations institutional advertising is
aimed to create a favourable image of the company (advertiser)
among employees, investors or general public. Public service
institutional advertising aims at changing the attitudes or
behaviour of the p eople to the good of the community or public
at large. Patronage advertising is aimed to attract customers by
appealing to their patronage buying motives rather than product
buying motives. Most of the companies are successful in
making their image in the minds of the people by using their
names , such as Bata, Tata, Dunlop, J.K., Bombay Dyeing, etc.
7.Public Relations Advertising :It is a part of institutional
advertising. The basic objective of public relations advertising is
to establish cordial and healt hy relations with the customers,
bankers, suppliers, g overnment patrons and the general public.
Through public relations advertising company announces the
changes in its policies, its developmental activities its position
and stand when the employees are o n strike. It helps the
company to eliminate wrong concepts about the company
created by disinterested groups. During the periods of short
supply of goods, the public relations advertising helps to hold
the interest of the customers. The company assures abo ut the
normalcy of supply and request its customers to bear with the
company. Institutional advertising and public relations
advertising are complimentary to each other. Both are directed
in building up corporate image. There are several reasons as to
why a corporate firm may resort to public relatio ns advertising.
The reasons are:
(a) To create a favourable image of the organisation.
(2) To secure and keep good suppliers.
(3) To build goodwill of the dealers.
(4) To arouse and serve customers in a better way.
(5) To arous e interest of the present and potential
shareholders.
(6) To correct misconceptions about the firm during strikes.
(7) To win confidence of its employees.
(8) To render community service.
(9) To make people aware of social evils, health hazards, etc.
(10) To obtain public support for certain cause.munotes.in

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468.Institutional Advertising: The object of institutional advertising
is to build manufacturers reputation in the minds of the public in
general. The advertising message is directed to tell about the
Company, its people, its contr ibution in promoting social welfare
activities, in promoting consumer satisfaction its achievements
in technology its broad philosophies, its share in economic
progress of the Company etc. Such advertisement sdo not bring
benefits in the form of higher sal es immediately. But they create
good footing for the company in the long run. The competitive
strength of the company goes up with the enhancement of
corporate image. It is much easier for a highly reputed company
to launch a new product in the market. Bas ically the institutional
advertising aims at getting public support for raising the capital
through public subscription. The following points are normall y
referred in institutional ads :
(1)Research & Development of the firm.
(2)Number of factories or branches of the firm.
(3)The number of employees and facilities provided to them.
(4)Foreign collaborations, if any.
(5)Distribution network of the firm.
(6)Market position of the firm.
(7)Products or services offered by the firm.
(8)Social welfare programmes undertaken by the firm, etc.
9.Internet Advertising :The Internet facility has been around for
some 30 years. It actually began in the early 1960s in USA,
where the U. S. Department of Defence saw it as a means of
supercomputer communication for researchers and military
facilities across the country. Until its commercial explosion in
1990s, the Internet remained a relatively obscure network of
linked computers -mostly by academics, military researchers,
and scientists around the world to send and receive electronic
mail, tr ansfer files, and find or retrieve information from
databases –At present, Internet the fastest growing medium in
history, offers incredible opportunities for a wide range of people
in both business and advertising. For advertisers, there is a
whole new w orld of potential customers.
10.Primary Demand Advertising :The main objective of Primary
demand advertising is to create demand for a new product or
product category. This is necessary in the case of a newly
developed produ ctor the products wh ich are cost ly in nature.
Forexample, cars, refrigerators, washing machines, watch , etc.
Such advertising is directed towards a class of customers; it is
also described as selective demand advertising. It is heavily
utilised during the introduction stage of product l ife cycle.munotes.in

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47Primary demand is when a potential buyer, or prospect, is
showing interest in a product or service for the first time. Often
times it is because the pro spect was never exposed to the
concept of the product or service or never really understood i t.
But now due to new circumstances he/she has an apparent
need all of a sudden.
11.Selective Demand Advertising :Selective demand advertising
is done to meet the growing competition mainly in growth stage
of the life cycle of the product. Here, the goal of advertising is to
push the demand of specific product or service. Often,
promotion becomes less informative and more emotional during
this phase. Advertising may begin to stress subtle differences in
brands with emphasis on brand name recall. At this stag e,
pricing may also be used as a weapon because products of all
the competitors are almost similar in quality. Selective demand
is when a prospect has a need, has identified the need, and is
actively seeking out a solution. In these cases ,the prospect wil l
come to you if he feels comfortable in your company's ability to
solve his needs. When someone has selective demand they are
more proactive in their search for information. They usually give
themselves enough time to compare the quality, value, and
offer s of different companies. So while they are calling you they
are also likely calling others as well.
12.Product Advertising :Product Advertising refers to the
advertising of tangible product. It is for the marketing of the
product ,advertising as a powerful instrument has emerged. A
product may be anything in which a trader deals or tra de. A
product may be tangible or intangible. Products like radio, soap,
pen cloth etc. are tangible products and services of professional
people like doctors, lawyers, engineer s etc. are intangible
products. The fundamental of any advertising campaign is to
establish the fact that among the substitutes the product
advertised is the best. Thus product is the heart of any
advertising programme. Advertising makes possible for the
smooth entry of the n ew product in to the market.
13.Service Advertising :Service advertising is designed to
operate in the public interest. It is undertaken to seek public
welfare and social development. It is in the nature of non -
commercial institutional ad vertising. In this type of advertising,
the objective is to put across a message intended to change
attitudes or behaviour and, as a result, benefit the public at
large. It is generally used by government and other
organisations to promote public welfare. We often come across
advertisements focusing on the need of small family norms,
functional literacy and environmental sanitation and so on. The
Government of India and many industrial houses have beenmunotes.in

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48sponsoring adverting campaigns pertaining to family pla nning
programmes, national integration, employment assistance
schemes, cleanliness campaigns, need for vaccinations, anti -
dowry cause, drug addiction, AIDS, wildlife preservation, road
safety measures, adult literacy programmes, etc. Today, most of
the man ufactures and businessmen have also started issuing
advertisements in the interest of the public. Advertisements
released by the Indian Railway appealing to the public to take
care of public properties and ads released by Cancer Society of
India for free C ancer check -up, are for socially relevant causes.
Many companies have also taken up public causes such as
supporting a leprosy eradication programme, avoiding pollution,
safe driving, blood donation drive etc., by resorting to public
service advertising. T o create awareness of AIDS and its
preventions ,Lowe Lint ashas designed TV/film/video campaign.
14.National Advertising: It is generally undertaken by
manufactures of branded goods, for which, advertising
messages is communicated to consumer’s all over thecountry.
Almost all possible mass media, including national newspapers,
radio and television network, are employed for national
advertising. Product services, and ideas, which have demand all
over the country, are suitable for national advertising. In Ind ia,
India n Airline Hindustan Lever Ltd., Vicco, Godrej, Bajaj and
Kirloskar are a few leading advertisers at national level.
Likewise, detergents, soaps, toothpastes, cosmetics, scooters,
cars, and bicycles, are some of the products, which are
advertised a ll over the country.
3.3CLASSIFICATIONS OF ADVERTISING
The classification of advertisement is directly related to the
advertising plan. By developing an effective advertising plan, there
is a possibility of increased positive return on advertising
investment regardless of the amount spent.
In advertising management, there are different types of
classification of advertising or advertisement. It includes 5 major
points for explaining the classification and it’s classified as: -
1.On the Basis of Geogr aphical Spread,
2.On the Basis of Target Audience or Market,
3.On the Basis of Media,
4.On the Basis of Purpose,
5.On the Basis of Actions.munotes.in

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491.Classification Based on Geographic Area:
Marketers advertise to the consumer market with national and
retail/ local advertising which may stimulate primary or selective
demand.
a)Global Advertising
International advertising is conceived as a response to global
marketing enabling the agency to channelize advertising from
transnational corporations into transnational media. The same
product brand that was once sold nationally can now be sold to
the whole world backed by the same advertising. E.g. Coke has
been using the same standardized advertising in all countries.
Pepsi adopts the common theme to the national cultu re.
b)National Advertising
National advertising is done by large companies on a nation -
wide basis or in most regions of the country. Most of the
advertisements of well-known companies and brands that are
seen on prime -time television or in other major nati onal or
regional media are examples of national advertising. The goals
of national advertisers are to inform or remind consumers of the
company or brand about its features, benefits, advantages, or
uses and to create or reinforce its image so that consumer sw i l l
be predisposed to purchase it.
c)Retail / Local Advertising
Advertising is done by retailers to local merchants to encourage
consumers to shop at a specific store, or use a local service or
patronize a particular establishment. Retail or local advert ising
tends to emphasize specific patronage motives such as price,
hours of operation, service, atmosphere, image, or merchandise
assortment. Retailers are concerned with building store traffic,
so that their promotions often take the form of direct action
advertising designed to produce immediate store traffic and
sales.
2.Classification Based on the Media Used
Any medium can be effectively used for advertising. Based on
these criteria there can be several branches of advertising.
Mentioned below are the va rious categories or types of
advertising:
a)Print Advertising: Newspapers, Magazines, Brochures,
Fliers
The print media have always been a popular advertising
medium. Advertising products through newspapers and
magazines is a common practice. In addition to this, print
media also offers options like promotional brochures and
fliers for advertising purposes. The newspapers andmunotes.in

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50magazines sell the advertising space according to the area
occupied by the advertisement, the position of the
advertisement (front p age/ middle page), as well as the
readership of the publications. The price of the print
advertisements also depends on the supplement in which
they appear.
b)Outdoor Advertising: Bill boards, Kiosks, Trade Shows
and Events
Outdoor Advertising is also a ve ry popular form of
advertising, which makes use of several tools and
techniques to attract the customer outdoors. The most
common examples of outdoor advertising are bill boards,
Kiosks, and also several events and trade shows organized
by the company. The Bill board advertising has to be really
terse and catchy in order to grab the attention of the
passers -by. The Kiosks not only provide an easy out let for
the company products but also act as an effective
advertising tool to promote the company’s products .
Organizing several trade shows and events by the
companies or sponsoring them, also makes an excellent
advertising opportunity.
c)Broad cast Advertising: Television, Radio, and the
Internet
Broad cast Advertising is a very popular advertising medium
that constitutes several branches like television, radio or the
internet. Television advertisements have been very popular
ever since they have been introduced. The cost of television
advertising often depends on the duration of the
advertisement, the time of broad cast ( peak time/prime
time) and of course the popularity of the television channel
on which the advertisement is going to be broadcasted. The
radio might have lost its charm owing to the new age media,
but the radio remains to be the choice of small scale
advertisers. The radio jingles have been very popular
advertising media and has a large impact on the audience.
3.Classification based on Target Audience
a)Consumer Advertising
A very substantial portion of total advertising is directed to
buyers of consumer’s products who purchase them either for
their own use or for their household’s. The fact that the buyer
of consumer items are generally very large and are widely
distributed over a large geographical area enhances the
importance of advertising as a marketing tool. The
preponderance of such advertising can be seen by looking
into any ge neral print media, such as news papers,munotes.in

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51magazines etc. These advertisements are intended to
promote the sale of the advertised products by appealing
directly to the buy ers/consumers. Such advertising is called
consumer advertising.
b)Business -to-Business Advertising
Advertising targeted to individuals, who buy or influence the
purchase of industrial goods or services for their companies
is known as business -to-business a dvertising. Industrial
goods are products that either become a physical part of
another product ( raw material or component parts), or are
used in manufacturing other goods(machinery), or that are
used to help a company conduct its business (eg .,office
supplies, computers) business such as insurance, travel
services, and health care are also included in this category.
c)Professional Advertising
Advertising targeted to professionals such as doctors,
lawyers, dentists, engineers, or professors to encourage
them to use a company’s product in their business
operations. It might also be used to encourage professionals
to recommend or specify the use of a company’s product to
the end -users.
d)Trade Advertising
Advertising targeted to marketing channel members such a s
wholesalers, distributors, and retailers are regarded as trade
advertising. The goal of trade advertising is to encourage
channel members to stock, promote, and resell the
manufacturers branded products to their customers.
e)Industrial Advertising
Adverti sements directed towards industrial users ( buyers of
raw materials, component parts, machineries etc .)a r e
regarded as industrial advertising, i.e., consumers who
purchase goods for their industrial use and advertisements
directed towards these consumers a re known as industrial
advertising.
f)Agricultural Advertising
Advertisements targeted towards the farmers for the
purchase of seeds, tractors, and other agricultural
implements are regarded as agricultural advertising.
4.Classification based on Purpose :
a)Product or non -product
A product is a thing or service for which customers will
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52advertising is to sell the advertisers goods or services.
Services are intangible products. They include financial, legal,
medical and other recreational services. Non -product
advertising constitutes institutional or corporate advertising in
which the advertiser tries to polish its image or influence public
opinion about an issue. Here the aim is not to sell something,
but just t o let the public know that such an organization exists.
b)Commercial or Non -commercial
Commercial v sN o n -commercial advertising is very easy to
understand. If the idea of advertising is to make profits, then it
is commercial advertising. If the idea of adve rtising is not to
make profits, then it is non-commercial advertising. Most of the
advertisements we see are commercial.
c)Primary -Demand and Selective -Demand advertising
Primary demand advertising stimulates the need for a
particular category of products and the aim is not to sell one
brand. Diamonds forever was used to arouse the need for
diamonds and not to sell the brand of De Beers. Once the
need for particular category is established, selective demand
advertising comes into picture. These advertisemen ts
concentrate on a particular brand of a product and try to
promote it. De Beers, after it made diamond jewellery popular,
went on for selective demand advertisements.
d)Direct Action or Indirect Action Advertising
Sometimes advertisements are designed to get the audience
response immediately. These types of advertisements are
called direct -action advertisements. Typically, these types of
advertisements carry a toll free number and sales promotion
incentives. Indirect -action advertising is done primarily to build
awareness of the product.
5.Classification based on Action
This is the fifth part of the classification of advertising and it
includes 2 sub -points like -
a)Immediate Response -
These kinds of advertisement provide immediate response in
the form of pur chase of the product. For Example –An
advertisement for the offer can result in more sale of a
product.
b)Indirect Response -
These kinds of advertisement are work for building the brand
image in the minds of the customers so that they can
purchase the produ cts over a period of time. For Example –An
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536.Other types of advertising
a)Covert Advertising
Covert Advertising also known as “guerrilla advertising” is a
unique kind of advertising in which a produ ct or a particular
brand is incorporated in some entertainment and media
channels like movies, television shows or even sports. There
is no commercial in the entertainment but the brand or the
product is subtly (or sometimes evidently) showcased in the
entertainment show.
b)Surrogate Advertising -Advertising Indirectly
Surrogate Advertising is prominently seen in cases where
advertising a particular product is banned by law.
Advertisements for products like cigarettes or alcohol which
are injurious to health are prohibited by law in several
countries and hence these companies have to come up with
several other products that might have the same brand name
which indirectly remind people of the cigarettes or beer bottles
of the same brand.
c)Public Service Advert ising -Advertising for social causes
Public Service Advertising is a technique that makes use of
advertising as an effective communication medium to convey
socially relevant message about important matters and social
welfare causes like AIDS, energy conser vation, political
integrity, deforestation, illiteracy, poverty and so on. David
Oglivy who is considered to be one of the pioneers of
advertising and marketing concepts had reportedly
encouraged the use of advertising field for a social cause.
Today publi c Service Advertising has been increasingly used
in a non -commercial fashion in several countries across the
world in order to promote various social causes.
d)Celebrity Advertising
Using celebrities for advertising involves signing up celebrities
for adver tising campaigns, which consists of all sorts of
advertising including, television and print advertisements.
Though the audience are getting smarter and smarter and the
modern day consumers are getting immune to the
exaggerated claims made in a majority of advertisements,
there still exist a section of advertisers who still bank upon
celebrities and their popularity for advertising their products.
3.4CONCLUSION
In this unit you have been introduced to the concept of classification
of advertising. Let us summarize these concepts once more.
Advertising is a form of communication and it is a paid form ofmunotes.in

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54publicity whose purpose is to inform potential customers about
products and services and how to obtain and use them. Many
advertisements are also designed to generate increased
consumption of those products and services through the creation
and reinforcement of brand image and brand loyalty. For these
purposes advertisements often contain both informative and
persuasive messages. All mass media such as, tele vision, radio,
movies, magazines, newspapers, video games, the Internet are
used to deliver the messages of advertising.
Advertising can be classified based on function, region, target
market, company demand, desired response and media.
3.5EXERCISE
I.)Quiz Time ( check your progress )
1. Media advertising is still the most cost -effective way to reach
large numbers of consumers with an advertising message. (TRUE/
FALSE)
2. Primary -demand advertising focuses on creating demand for
a specific company's brands. (TRUE/ FALSE)
3. Business -to-business advertising is limited to industrial
goods; services such as insurance and finance and banking are not
included in this category. (TRUE/ FALSE)
4. ____________advertising is done by local merchants to
encourage consumers t os h o pa ta specific store ,u s eal o c a l
service, or patronize a particular establishment.
A.) Trade
B.) Professional
C.) Direct -response
D.) Retail
E.) National Retail
5. Advertising done for the purpose of building store traffic and
encouraging consumers to make a purchase tak es the form of
_____ advertising.
J) Trade
K) Facultative
L) Professional
M) Direct-action
N) B2Bmunotes.in

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556. ________has long been the cornerstone of brand -building
efforts for many companies.
A.) Interactive media
B.) Mass -media advertising
C.) Online marketing
D.) Product p lacement
E.) Personal
7. Which of these contain no illustrations or logos?
a) TV
b) Magazine
c) Classified advertisements
d) Cinema
8. The advertising media is a marketing communications
umbrella concept that covers _________________ that carry
____________ t o the prospective consumer.
A) media vehicles or channels, advertising messages
B) advertising messages, media vehicles or channels
9. Interactive media can be best described as
A) Marketing Mix
B) Marketing Communications Mix
C) Customized Marketing Messages
D) Media that al low two -way messages between company and
consumer
10. Print advertising is sometimes also called
A) Business Advertising
B) Press Advertising
C) Electronic Advertising
D) None of the above
(II) THEORY QUESTIONS
1)“Advertising is a non -personal communication”. Why it is no n-
personal?
2)Write about the various types of advertising with suitable
examples.
3)“Sale is a main objective of advertising”, d oy o ua g r e eo rn o t ?
Justify your answer.
4)Is advertising different from publicity? Justify your answer.
5)What is Surrogate advertisi ng?
6)What is the difference between Direct action advertising and
indirect action advertising?
7)Name two types of company demand.munotes.in

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56SOLUTION to the QUIZ
1.Media advertising is still the most cost -effective way to reach
large numbers of consumers with an ad vertising message. (TRUE/
FALSE)
TRUE
Advertising remains an important part of many marketers’ IMC
programs because it is an effective way to reach large numbers of
consumers with an advertising message. Television, in particular, is
an excellent way for marketers to reach mass markets.
2.Primary -demand advertising focuses on creating demand for a
specific company's brands. (TRUE/ FALSE)
FALSE
Primary -demand advertising is designed to stimulate demand for
the general product class or entire industry. Selec tive-demand
advertising focuses on creating demand for a specific company's
brands. Most advertising for products and services is concerned
with stimulating selective demand and emphasizes reasons for
purchasing a particular brand.
3.Business -to-business ad vertising is limited to industrial goods;
services such as insurance and finance and banking are not
included in this category. (TRUE/ FALSE)
FALSE
Business -to-business advertising is targeted at individuals who buy
or influence the purchase of industrial goods or services for their
companies. Business services such as insurance ,finance and
banking, and telecommunications are also included in this category
because they are marketed to both busi ness c ustomers and
consumers.
4.Retail advertising is done by l ocal merchants to encourage
consumers to shop at a specific store, use a local service, or
patronize a particular establishment.
5.Advertising done for the purpose of building store traffic and
encouraging consumers to make a purchase takes the form of
direct-action advertising.
6.Mass -media advertising has long beenthe cornerstone of
brand -building efforts for many companies.
7.Which of these contain no illustrations or logos?
Ans. Classified advertisementsmunotes.in

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57Classified adverti sements are small and one column wide.
These advertisements contain no illustrations or logos.
8.The advertising media is a marketing communications umbrella
concept that covers media vehicles or channels that carry
advertising messages to the prospective c onsumer.
9.Interactive media can be best described as media that allow
two-way messages between company and consumer
10.Print advertising is sometimes also called Press Advertising .






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4
ADVERTISING AGENCY I
Unit Structure :
4.0 Objectives
4.1 Introduction
4.2 Meaning and Definition
4.3 Organisation Structure of an Advertising A gency and
services offered
4.4 Types of Advertising A gencies
4.5 Emergence of Global A gencies
4.6 Some o ft h e top Advertising Firms in I ndia
4.7 Agency Selection C riterion
4.8 Maintaining Agency -Client R elationship
4.9 Summary
4.10 Questions
4.0OBJECTIVE S
After studying this unit, the students will be able to:
Know the meaning and definition of Advertising Agencies.
Explain the Organization structure of the Advertising Agency.
Elaborate the types of Advertising Agencies.
Know the top advertising firms in India.
Understand the agency selection criteria.
Explain how to maintain the agency -client relationship .
4.1INTRODUCTION
In the current age of business advertising has become
unavoidable task and day to day the importance of advertising
agencies is increasing. These agencies provide creative and
specialized services to their clients. Advertising agency is the core
of advertising profession and industry. An advertising agency is an
independent company set up to render specialized services in
advertising. An advertising agency is a firm that specializes in the
creation, design and placement of advertisemen ts, and in the
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4.2MEANING AND DEFINITION
4.2.1 MEANING
Due to the specialized nature of advertising business,
organizations utilize the services of advertisin ga g e n c i e s .F o rm o s t
companies, planning and execution of advertising is handled by
advertising agency.
The American Association of advertising Agencies
(AAAA) has defined an advertising agency as:
An independent business organization
Composed of creativ ea n db u s i n e s sp e o p l e
Who develop, prepare and place advertising on advertising
media
For sellers seeking to find customers for their goods and
services.
Thus, an advertising agency is a service organization which
performs the function of preparing, plann ing and checking
advertisements for its clients. It has its own specialized & creative
staff including visualizes, copywriters, artists, painters, models, etc.
It also places advertisements in media. Thus, an agency is a link
between the clients & media ow ners.
4.2.2 FEATURES OF ADVERTISING AGENCY:
1.Advertising agency is concerned with preparing
advertisements for the advertisers.
2.There are various types of advertising agencies such as full
service agency, in -house agency, creative boutiques, etc.
3.An adver tising agency employs creative people like artists,
layout designers, visualizers, copywriters, etc.
4.Some advertising agencies operate at local level while others
operate at national as well as global level.
5.The job of the advertising agency also includes booking time &
space in media.
6.The fees charged by an advertising agency are generally
based on the media billing.
7.Advertising agencies render various services like account
planning , creative services, marketing services, etc.
8.Some advertising agencies have accreditation while some
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4.3ORGANISATION STRUCTURE OF AN
ADVERTISING AGENCY AND SERVICES OFFERED
For smooth functioning, every advertising agency is divided
into departments. The number of departments depends upon the
size of busi ness organization. The organization structure differs
from agency to agency depending upon the functional areas.
1.Creative services department
The creative services departments are the heart and soul of
advertising agency. Creativity differentiates one agen cy from
another. This department is composed of the visualizers,
copywriters, art directors, production manager and traffic
manager. The functions performed by departments are:
i)Copywriting: The visualizers and copywriters plan and
prepare the copy of the advertisement. Some agencies have
separate ‘copy departments’.
ii)Artwork: The art directors and artists prepare the artwork of
the advertising which includes designing attractive
illustration and layout. This is required in order to make the
advertising cop y attractive and appealing.
iii)Production: The production manager looks after
mechanical production of print advertisement and
production of TV or radio commercial. The services of
printers, typographers, script -writers and directors are
required in this pro cess of production of advertisements. At
times, agencies hand over this function to outside
independent units.
iv)Traffic:
Traffic means scheduling. Traffic people are concerned with
routing, scheduling and supervising the work of each
advertising departmen t. The traffic department ensures that
deadlines are met not only within the agency but also
outside organizations such as media houses, suppliers,
traders etc. The traffic manager monitors the production of
finished advertising so that it is completed as per schedule.
2.Account services
An account refers to client who desires agency services.
This department is responsible for providing services to the client.
The department comprises of accounts executive and accounts
supervisors. An accounts executive act s as the link between the
agency and the clients. He is the person who carries the client brief
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The main functions performed by this department are:
i)Client servicing : This department handles the requirements
and p roblems of the clients. It studies the client’s product to be
advertised and collects necessary information about the product
and the organization.
ii)Preparation of advertising plan: This department prepares the
advertising plan and sends it to the client fo ra p p r o v a l .
iii)Agency -client relations: This department acts as a link
between the agency and its clients. It not only maintains cordial
relationship between the clients but also with media owners .
3.Marketing services
The marketing services department is comp osed of media
team, marketing research executives and sales promotion
executives. It performs the following functions:
i)Media services: The main skill of media team is media
planning, media buying and media scheduling. The media team
organizes the timing an d scheduling of the marketing
communications campaign. They look at the range of media to
be exploited and at the best slots in which to run advertising.
They help a client to decide upon the duration of and individual
slot, and how many of them to run. Th ey are responsible for
buying time/ space in media. They also prepare media schedule.
A media schedule is a time -table showing dates and timing of
execution of the advertising campaign in media.
ii)Marketing research : An advertiser needs information on
variou s aspects such as market trends, market competition,
consumer behavior, new trends in media and so on. It is the
responsibility of the marketing research department to provide
such inputs to the client. In fact, the research department
functions before and after a commercial is made for pre -testing
and post -testing its effectiveness. Consumer insights and brand
usages are also tested at times. Large agencies usually have
research subsidiaries. For instance, Hindustan Thomson has
Indian Marketing Research Bu reau (IMRB) while Lintas has
pathfinders.
iii)Sales promotion: This department prepares sales promotion
materials such as sales brochures, sales literature, dealer
displays, point of purchase material etc. It also undertakes
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4.Administration and Finance
The administration and finance department is composed of
office manager, accounts manager and clerical staff. It looks after
the financial and accounting matters. The department performs the
following function s:
i)Office administration: The office manager is responsible for
day-to-day office administration. He also looks after office
management and handles issues relating to personnel i.e.
recruitment, training, promotions, transfers, training etc. The
clerical s taff provides clerical services like typing, filing and
record keeping.
ii)Accounting: This department looks after maintaining proper
books of accounts, receipts and payments etc. It collects bills
from the clients and makes payment of media bills.
iii)Budgeting: This section looks after internal budgets, cash
flows, preparing investment plans etc.
iv)Auditing: the account executive is responsible for getting the
books of accounts audited from the agency’s chartered
accountant. He also prepares necessary reports and
statements.
4.4TYPES OF ADVERTISING AGENCIES
There are different types of agencies that provide client
specific functions. These are explained as under:
1.Full service agency:
Af u l ls e r v i c ea g e n c yi so n et h a tp r o v i d e su n d e ro n er o o fa l l
the services; a client is likely to need. Such agencies are usually
large in size and offer their clients a full range of services in the
area of marketing, communications & promotions. These include
planning, creating and producing the advertisement; placing the
adverti sement in various media & research. Other services offered
include strategic marketing planning, sales, sales training,
designing the package, event management, trade shows, publicity,
public relations, etc. Trikaya, Grey, Ogilvy & Mather are fully
service agencies in India. In other words, they are one stop shops
for all services that are offered to the clients. Today’s agencies
provide total communication packages for the clients’ brands.
Some of the features of full service agency are as under:
Large in size
Deals with all stages of advertisements
Different expert people for different departments
Starts work from gathering data & analyzing and ends on
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2.In-house agencies
At times, an advertiser may establish his own de partment to
perform the advertisement related services, which are normally
provided by an outside agency. Such a department is known as an
in-house agency .It is owned & operated by the advertiser. Some
companies exclusively use in -house agency, while othe rs combine
in-house agency efforts with those of independent outside
advertising agencies. Large advertisers, such as Calvin Klien &
Benetton use in -house agencies.
Advantages:
It saves the cost of advertising as the substantial advertising
money paid to outside agencies in the form of media commissions
goes to the in -house agencies.
It enables greater control over the agency operations both
in terms of cost & creativity.
Since the advertising job is handled by in -house staff. There
may be an increased coordination
Disadvantages:
The in -house agency often lacks expertise available in an
outside agency. Top agency talents are less likely to get attracted
into an in -house agency.
At times in -house staff might turn biased while an outside
agency is more objective in its analysis & evaluation.
Operating an in -house agency is expensive as compared to
getting the advertising job done by an outside agency especially if
the organization is small.
3.Creative Boutiques:
These are agencies that provide only crea tive services. In
other words, they provide just creative work, that is, ideas for
advertising campaign and execution of those ideas. They do not
involve themselves with the media and other functions .T h e s e
creative boutiques have grown when the advertiser desires to use
high quality creative talent of an outside service provider, while the
rest of the functions are performed within the advertiser company.
Full service agencies subcontract work to creative boutiques when
they want to avoid increasing full t ime employees or have access
work. These boutiques usually work on an agreed fee. Some of the
features of creative boutique include:
Very Creative andInnovative ads
No other function is performed other than creating actual arts
Small size agencies with th eir own copywriters, directors and
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4.The specialist agency
There are some agencies who undertaking advertising work
only in certain areas. In other words, they specialize in specific
areas. For e.g., some agencies specialize in financial ser vices,
social advertising, medicine related advertising and so on. In India,
there are agencies specialized in financial advertising and the
DAVP, (Directorate of Advertising Visual Publicity) which gives
publicity to government’s policies andprograms.
5.Agency Network
Due to tremendous increase in the volume of business,
agencies need to have branches across the country in order to
serve local, regional as well as national clients. However, this may
not be possible & economical. To overcome this problem, a
smaller agency can join a large agency forming a network.
Such a network is possible even at international level. The group so
formed provides market information to all network members. They
also share information on agency operations. Examples of
interna tional tie -ups are Trikaya in India with Grey advertising in
USA & Hindustan Thompson with G. Walter Thompson of the USA.
6.Subsidiaries of large agencies:
Large advertising agencies establish subsidiaries which
can develop local niche market. By being asso ciated with the
larger agency, they gain status which helps them to gain
acceptability by clients. In India, “Karishma” is the subsidiary of
Lintas & “Contract” that of Hindustan Thompson.
7.Media Buying Services:
These are independent agencies specialized in media
buying services. Advertising media buying has become a
complex activity in this competitive environment. Advertisers and
advertising agencies develop their own media strategies and give
the contract of executing the same to media buying services.
Agencies offering this service buy large amount of time and space
in media. Hence they are in position to obtain better media
packages, the benefit of which is passed on to the advertisers. For
the services rendered, they are paid a commission or fee by t he
advertiser.
4.5EMERGENCE OF GLOBAL AGENCIES
Today the field of advertising is booming. With the
growing markets and competition, it has become an essential tool
to reach the target market as well as the target audience.
Liberalization has empowered advertising and has
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India has undergone tremendous growth over the past decade. The
30-second slot between the TV shows is a largely coveted space
for most advertising companies today. Indi an television viewers are
very much influenced by visual ads and print ads, thus expanding
the product consumer base. Mumbai continues to be the major
advertising hub for this country.
Earlier in India the advertising agencies were very small
and they us ed to fetch from little to no business. But if we see
the ad agencies in India today, then the scenario is totally different.
Advertising has now become a full fledged industry. The horizons of
advertising agencies have expanded and crossed the national
borders.
Now advertising is no longer restricted to print media or radio
ad but latest tre nd is about internet marketing and social media.
The scenario of Indian advertising world is also going through these
changes and several marketing agencies are becom ing forward
with the latest ideas andconcepts.
Advertisers in India have reached 75% of population, using
television as a media device, and the rest of the population is
reached via radio. India, however, favors newspapers, magazines,
television, radio, bill boards and business publications to convey
messages about various products. It is the advertising agencies
advertisements which portray ideas to the audience. The world’s
leading advertising agencies –Ogilvy and Mather, J Walter
Thompson, BBDO, Lint as, Mc Cann -Ericsson and Leo Bernett has
successfully made a mark in the Indian market.
CHECK YOUR PROGRESS:
1.Enlist the functions of the following departments of the
advertising agency:
a.Creative service Department
b.Account Department
c.Administration and Fi nance Department
d.Marketing Department
2.Define the following terms:
a.Advertising agencies
b.Full service agencies
c.Agency network
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4.6SOME OF THE TOP ADVERTISING FIRMS IN INDIA
ARE:
1.Ogilvy & Mather
It is an international New York based advertising, public
relations & marketing agency established in 1948. It operated in
125t countries across the world with its Indian operations centre
Ogilvy advertising –in Mumbai. The O & M network offers services
to fortune global 500 compa nies over the world. Ogilvy advertising
continues to remain India’s number 1 advertising agency. Ogilvy
andMather is the creative team behind India’s most successful and
renowned brands such as Vodafone, Cadbury, Asian Paints and
Fevicol. They have create d ZooZoo campaigns for Vodafone.
2.JWT
J Walter Thompson had its headquarters in New York and
offices in over 90 countries. It was set up in 1864 and even today,
continuous to create, innovate and define the world of
communication in India. JWT has created advertisements for
brands such as Nestle, Bayer, Ford, Nokia and Unilever.
3.Mudra Communication
Mudra Communications was set up in 1980. It is based in
Mumbai. It is advertising, communications and brand Management
Company in India. It is India’s third la rgest advertising agency. In
2011, Mudra group was acquired by Omnicom Group,
subsequently rebranded as DDB Mudra group and merged with
DDB Worldwide. As an advertising agency it is credited with
handling successful campaigns of brands and products such as
Rasna, Godrej, McDonalds, HBO, Philips, Reliance Netconnect and
Big Bazaar.
4.LOWE Lintas India Pvt. Ltd.
After the merger of Lintas India Ltd. With LOWE Lintas and
Partners Group of the UK, it is known as LOWE Lintas India Pvt.
Ltd.
It is one of the Ind ia’s largest communication groups. The
advertising agency indicates advertising, media buying house,
direct marketing, public relations, design consultancy, market
research, events, rural communications & interactive
communications. LOWE Lintas was recentl y declared to be the 5th
most effective agency in the world by the Effie Effectiveness Index.
The 1stTelevision commercial in India was handled by LOWE
Lintas. The agency handles the account of Unilever, Microsoft, Idea
Cellular, Johnson & Johnson, Nestle , Knorr, etc. They manage
advertising campaigns of 5 of India’s top 10 “Most Trusted Brands
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5.FCB Ulka Advertising Ltd.
FCB being 1 of the top3 advertising agencies in USA, ranks
number 10thin the world. FCB -Ulka has made its mark in India as
Ulkaadvertising. It was founded in 1961. Since its inception it has
continued to be among the top 5 advertising agencies in India.
FCB -Ulka has made a smooth transition from a creative shop to a
large main stream agency. These companies’ aim has always been
to create advertising that is noticeable & that is most relevant to the
buyer not the seller. FCB Ulka is considered as a turnaround
specialist that indulges in more than just brand building. Some of
FCB Ulka’s successful ads include TATA Indicom, Whirlpool ,Z e e
Cinema, Santoor, Sunfeast & Amul.
6.Re Diffusion DY & R
It is a Mumbai based advertising agency that was set up in
1973. It focuses prima rily on integrated PR services and media
relations. It handles the account of Indian oil corporation, LG
Electroni cs, Bharti Airtel, etc.
7.Mc Cann -Ericsson
This advertising agency is a leading global agency. It is one
of the leading advertising agencies in India, itwas born out of a
successful and profitable merger in 1930, and its office are in
Australia, South East Asia, Latin America, Europe and India. The
tag line “Thanda matlab coca cola” is a brain child of this agency.
Another famous tag line created by them is “for everything else
there’s mastercard”.
8.RK Swamy BBDO Advertising Ltd.
It is the agency of the wor ldwide renowned BBDO network. It
was launched as a fully fledged large format agency on April 2
1973. It is one of India’s leading integrated communication service
providers. It is ranked as one of India’s top advertising agencies
over the past 3 decades. Its clients include Air India, State Bank of
India, Union bank, MTNL etc.
9.Grey Worldwide (I) Pvt Ltd
Grey world I ndia pvt .ltd is a subsidiary of Grey worldwide. It
is an advertising agency that provides marketing and advertising
services. The company is based in Mumbai, India with additional
offices in Ahmedabad, Bangalore, Kolkata andNew D elhi. Some of
the ads created b yt h e mi n c l u d ef o rh e r oH o n d a ,M aruti Suzuki,
nestle, Indian oil, A mbuja cement, UTV andGodrej.
10.Leo Burnett India pvt Ltd.
Ar e g u l a r award winner at the Cannes festival, India’s Leo
Burnett has been proclaimed as one of the most creative agencies
of the country. It has over the years successfully offered consumers
with powerful bran de x p e r i e n c e su s i n ga d sl i k eM c Donalds, Heinz,
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11.Contract Advertising India Ltd
Contract Advertising is known for its one of kind specialty
divisions that provide complete advertising solutions. These
divisions include design sutra, eye contract and core consulting
since its inception in 1986, Leo Burnett India Pvt Ltd.
It has successfully delivered successful result to its high
profile clientele including Tata Indicom, Religare, Asian Paints,
Dominos, Spice Jet andAmerican Tourister, etc.
4.7AGENCY SELECTION CRITERION
Much care ha s to be taken in selecting the agency of the
choice of a particular organization. Some of the factors taken into
account are;
1.Creativity
Creativity is an essence of advertising. Hence one of the
most important factors considered while selecting an adverti sing
agency is the quality of creative services offered by the agency.
Creativity depends on the quality of the creative personnel that is
copywriters, artists, art directors, painters, etc. The advertiser must
judge th e agency’s ability to generate and develop new ideas for
his advertising program.
2.Services offered
The advertiser must consider the range of services offered
while selecting an advertising agency. Some agencies especially
smaller ones provide limited services, while larger agencies offer
wider range of services. The advertiser must compare services
offered by various agencies and select one whose services he
thinks will be satisfactory andprofitable.
3.Specialization
Some agencies are specialized in certain lines of business.
Such agencies at tract clients having special needs. E.g. some
agencies are specialized in financial advertising. Advertisers
dealing in financial products may prefer such agencies.
4.Remuneration
The cost of the services rendered is a very important factor
to be taken int o account while selecting an agency. The fees
charged are not uniform, i.e. it differs from agency to agency. The
advertiser must compare the rates of different agencies while
selecting an agency. The payment may be in terms of commission,
lump sum fees, e tc. These have to be discussed before entering
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5.Reputation of the agency
The past record & reputation of the agency in the field of
advertising must be considered. Information about the agency can
be obtained through conversations with the m edia owners and
other advertisers. Further, other factors such as financial standing,
successful campaign of other clients handled by the agencies in the
past, client turnover, agency client relationship must be considered.
6.Location
Many advertisers prefe r an agency having a branch office
located close to the advertiser’s office. This enables them to have a
quick and economical communication with the agency. The agency
can follow the client easily. Thus it offers convenience to both, the
advertisers and ag ency.
7.Other Clients
The advertiser must not approach an agency that handles
competitor’s advertising programs. This is due to confidential nature
of business; the secret information provided to the agency may get
disclosed.
8.Media Connections
An agency wh ich has better contacts with media owners
must be selected. Such an agency is in a position to book the
desired time and space in the media. Moreover, it can also get
media packages, the benefit of which is passed on to the
advertisers.
9.Accreditation of t he agency
Some advertising agencies are accredited by the Indian
Newspaper Society, Doordarshan and All India radio. Accreditation
gives professional status to the agencies. They enjoy better credit
to the media owners. They pass this benefit to their clie nts.
Moreover, such agencies have to follow the code of ethics laid
down by the media owners. Thus the client is likely to get a
minimum standard of the advertising campaign. This suggests that
such agencies must be approached.
10.Size of the agency
Al a r g e sized agency may provide a wider range of services
and facilities. Advertisers prefer larger agencies because they are
benefited due to experience, reputation, and media connection of
the agency. Moreover, this is an age of mega agency.
11.Initiative and In volvement
An agency that anticipates a client’s needs just before the
client does should be preferred. In other words, an advertising
agency that takes keen interest and initiative in the work of its
clients must be given preference. Such an agency may be able to
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4.8MAINTAINING AGENCY -CLIENT RELATIONSHIP
The agency -client relationships stats when the client
contracts work to the agency. It is continuous as long as the
agency provides services to the clients. Such a relationship is
based on mutual trust and respect. It is like an equal partnership
that has to follow a few guidelines to make it more fruitful. An
article published in the economic Times of India on 17th
January 1988 has m ade some suggestions in this regard:
What the clients have to do?
Treat the agency with courtesy at all times. Do not hurt the ego
of agency people.
Create enthusiasm in the staff of the agency for their products/
services. Clients must demonstrate how th eir product is superior
to competitors.
Involve the agency in the product development.
Provide a thorough brief before seeking advertising proposals.
The brief must be in a written form containing a review of the
marketing plans of the current year and the coming year. It must
also clearly define marketing and the advertising objectives.
The client must encourage the agency to consult them during
the process of planning the advertising campaign.
When the agency sends the advertising proposal for the
appro val to the clients, they should not reject the approval on
whims and fancies.
Have faith in the agency
Pay agency bill as per the terms agreed.
Avoid personal favors from the agency. Utilize the services of
the agency strictly for the company.
Reduce disp utes to a minimum.
What the agency has to do?
The following points elaborate the agency’s
responsibilities towards developing healthy relationships with the
clients:
Agencies must not handle conflicting accounts. It means they
must not accept the advertis ing proposal of competitor of the
existing client.
Discuss details of compensation before accepting the account.
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Decide clearly as to who will handle the account within the
agency so as to avoid confusion in due course.
Establish a continuous communication network with the client.
This helps to resolve enemies understanding quickly.
Collect complete information about the client’s business. The
same can be used while preparing the advertising plan.
Maintain a regu lar performance audit from the agency’s side. In
other words, evaluate its performance from time to time.
Come out with new marketing ideas that open up new
opportunities for the client.
Never hurt the client’s ego. Respect his opinion & suggestion.
Keep t he client well informed about any proposed changes at
the agency.
Maintain discipline, punctuality & submit progress report on the
work assigned. This would keep the client informed about the
state of his advertising campaign.
4.9SUMMA RY
Advertising age ncies are those organizations providing
creative and specialized services to their clients. Generally, the
services provided by these agencies are: creative services,
accounting services, marketing services, administration and finance
services.
Agencies h as been classified on the basis of the services
provided by them such as; Full service agencies, In house
agencies, Creative boutiques, The specialist agencies network,
Subsidiaries of large agencies, Media buying services.
Ogilvy & Mather ,J Walter Thomp son, Mudra
communication, LOWE Lintas India Pvt. Ltd., FCB Ulka advertising
Ltd., Re Diffusion DY & R ,McCann -Ericsson, RK Swamy BBDO
Advertising Ltd., Grey world india pvt ltd., Leo Burnett India pvt Ltd.,
Contract Advertising India Ltd . Etc are the top a dvertising agencies
in India.
While selecting the agency some of the factors taken into
account related to the agency are: Creativity, services offered,
specialization, remuneration, reputation, location, other clients,
media connection, accredited, size, initiative and involvement of the
agency.
The relationship between the client and the agency is a
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clients. Such a relationship is based on mutual trust and respect .
The cl ient must encoura ge the agency during the process of
planning the advertising campaign and the agency must keep the
client well informed .
4.10QUESTIONS
1)Define Advertising Agencies . Explain the Organisation structure
an advertising agency.
2)“Today the field of advertising is booming ”.Discuss.
3)Elaborate the types of Advertising agencies.
4)Explain comparatively the relationship between the client and
the advertising agency.
5)Which are the top advertising agencies in India.
6)Write short notes:
e.Selection criteria
f.In house agenc ies
g.Creative boutiques
h.Media buying services.
i.Features of Advertising agencies

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5
ADVERTISING AGENCY II
Unit Structure:
5.0 Objectives
5.2 Ways of getting clients
5.3 Client Turnover
5.4 Creative Pitch
5.5 Agency Compensation
5.6 Agency Accreditation
5.7 Career Options
5.8 Career Options in Advertising Agency, Media and Supplying
/ Supporting Firms
5.9 Freelancing Options for Career in Advertising
5.10 Summary
5.11 Questions
5.0OBJECTIVES
After studying the unit, the st udents will be able to:
Explain the ways of getting clients.
Know the concept Client Turnover and reasons of Client
Turnover.
Elaborate the term Creative Pitch and the steps in creating the
C.P.
Know the methods used for compensation.
Understand the meanin gof Agency Accreditation, its
advantages, criteria and disadvantages .
Know the career options in advertising.
Understand the freelancing career options in advertising.
5.1INTRODUCTION
Liberaliz ation has empowered advertising. There has
appeared a treme ndous growth in the advertising agencies in India
over the past decade. Earlier in India the advertising agencies were
very small and they used to fetch from little to no business. But if
we see the ad agencies in India today the scenario is totally
differ ent. Advertising has now become a full fledged industry. The
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national borders. With the growth in ad agencies, competition for
client’s accounts is increasing.
5.2WAYS OF GETTING CLIENTS
Due to the competition theagencies have to constantly search
for new clients and satisfy the existing clients to retain them with
the ad agency. Some of the ways of getting clients are:
1.Advertisement
An advertising agency can advertise in newspapers seekin g
clients for their business. New advertising agencies working at a
local level can select a local medium to attract small and medium
scale entrepreneurs to give their account to the advertised agency.
2.Referrals
This is one of the most popular routes thro ugh which an
agency gets new clients. If the existing clients are satisfied with the
work of the advertising agency, they are likely to recommend the
agency’s name to new clients.
3.Presentations
The executives of the agency depute personnel to make
present ations in front of the executives of the companies. This
presentation may take into account the products, the marketing and
the advertising plans of the companies. These presentations give
the companies an insight into the creative potential of the people of
the agency.
4.Member of associations
Advertising agency can become a member of various
associations like IMC, MACCIA, AAAI, etc. Such membership give
them a chance to interact with the members of various business
associations which is likely to fetch th em business in the long run.
5.Solicitations
The agency may search new clients by writing letters. It may
directly approach the client and may give a better offer than the one
given by the existing agency. It could either be in the form of better
services o r better agency compensation. The agency may even
make calls to attract new clients.
6.Image & Reputation
Reputation of the agency attracts new clients. An image can
be built by undertaking excellent advertising work of reputed clients
and by winning award s. Many advertising agencies participate in
advertising festivals or competition to win awards & to gain
popularity. Further media coverage helps and agency to get
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5.3CLIENT TURNOVER
5.3.1 Meaning
Client turnover means clients changing their advertising
agencies. It means clients close their accounts with the existing
agencies and switch over to other agencies. Client turnover has
negative effect on the agency as it adversely affects its image and
also its revenue.
5.3.2 The reasons for such client turnover are:
1.Dissatisfaction with the creative efforts:
Creativity is the essence of advertising. One of the important
factors in contracting with a particular advertising agency is creative
services offered by it. However, if the client is not s atisfied with the
creative efforts taken by the agency, he may terminate the contract.
2.Conflict on payment
If the client feels that the agency is charging higher fees, higher
service charges, not passing cash discount received from
media, recommending med ia just for the sake of higher
commission, etc. It may result in client leaving the existing
agency.
3.Handling the competitor’s account
The agency may start handling a competitor’s account. This may
force the client to shift to some other agency.
4.Personal Conflicts
Sometimes the client and the top executives of the ad agency
have conflict regarding any decision of advertising campaign
such as copywriting, copy designing, selection of medium,
media scheduling, etc. Such conflicts lead to ego problems
among them. It may result with the client leaving the agency.
5.Personnel changes in the staff:
A client sometimes switches over to new agency when the
creative team or key employees oft the existing agency moves
out to another agency. Even personnel changes in t op executive
of client may result in shift to another agency. The new top
executive of client may have established ties with some other
agency and they may shift to such agency.
6.Unsuccessful Advertising Campaigns
If the advertising campaign launched fails to bring in the desired
results (increase in sales/brand awareness etc) the client may
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7.Lack of Coordination & Communication
Poor communication & coordination between the client & the
agenc y staff fails to develop trust & confidence in each other. In
such a case the client may leave the agency.
8.Inadequate Services
At times, the client may require additional services & facilities if
the agency is not equipped to provide the same the client m ay
shift to some other agency.
9.In sufficient Network of the agency
The client may plan to enter an entirely new market may be rural
or international market. The agency may not have a branch or
the capacity to handle this new market. Hence, the client may
enter into a contract with another agency.
10.Change of location
A change in the location of agency’s office or the client’s office
to another city may also lead to client turnover.
11. New Advertising Agency
When a new agency, comprising of highly creative p ersonnel
interest enters the advertising scene, the client may contract
with the new agency.
12. Human Tendency to change
Some clients prefer not to contract with the same agency again
& again. They change the agency just for the sake of changing
&n o td u e to some genuine cause.
13. Withdrawal of product from market
The client may withdraw the product from the market thereby
closing the account with the concerned advertising agency.
14. Lack of accreditation
The agency especially if it a small one might not be accredited
by D oordarshan and the INS. Hence, the client may prefer to
move to bigger agencies which are accredited.
5.4CREATIVE PITCH
5.4.1 MEANING
Pitching a process that started merely to compare creative
services has today become a phenomenon decidi ng the fact of
agencies. As the market gets more competitive and witness
information overload, every marketer is looking for unique and
clutter breaking solutions, Pitching is the window for an agency to
enter into the client’s world, and a perfect pitch g ets them entry into
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A creative pitch is a presentation that describes the
concepts that a company (such as an agency) proposes to use
to create a media program or promotional message. It refers to
the presentation by advertising agency people t oa
prospective account.
In this presentation, the agency person uses portfolio, slides,
video, story board or other devices to give information about:
Organisational set up.
Results for other clients.
Types of accounts handled.
Experience of personnel.
Specialisation
Fees charged
Any other information that is pertinent to winning the account.
The purpose of creative pitch is to win a client’s business
and thereby ensure a new stream of revenue.
5.4.2 STEPS
The steps involved in preparing creative pi tch are as under:
1.Locate clients
The first step is to identify the prospective clients. New clients
can be approached directly by putting advertisements in news
papers, by referrals and so on.
2.Research
The advertising agency must undertake research about the
prospective client i.e. the organization, its products, its objectives
etc. Such a research helps in developing ideas and to make a
better creative pitch.
3.Discussion with the client
If possible, the ad agency representative must try to meet
the prospe ctive client informally to ascertain what their needs are
ad their expectations from the advertising agency. Thereafter the
agency may hold discussion with the client on services they can
provide such as market research, planning and advertising
campaign, sales promotion, testing advertising effectiveness and so
on.
4.Preparing outline of pitch
After the discussion with the client, an outline of the pitch is
made. The agency must try to make its pitch stand out from the
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5.Making the pitch
The agency then makes the final pitch. It must be creative,
clear, simple and at the same time convincing. Clear headings,
short paragraphs, numbered pages and an index at the front are
essential.
6.Follow up
Finally, the advert ising agency must follow up with the client
to find out whether or not they have got the contract. The follow up
could be done through email, phone call or personal interaction.
They must try to find out whether the client has any follow up
questions.
5.5AGENCY COMPENSATION
The methods used to compensate the agencies for their
services are
1.Commission
This is the most traditional method of agency compensation.
Under this method the agency is paid a fixed commission by the
media on any advertising time or space purchased. The media
owners pay 15% commission on gross billing amount of the
advertising agency. However, only those agencies which are
accredited are entitled to a commission of 15%. The rates for
outdoor media are slightly higher i.e. 16.66% .
The working of commission method can be illustrated with the
help of an example. Suppose an advertising agency prepares and
places advertisement in a newspaper at an agreed charge of Rs.
50,000. The agency will collect the said amount from its client but
will pay Rs. 42,500 (Rs 50,000 less 15%) to the media owner. The
difference of Rs 7,500 is the commission income to the agency.
The media owner may also offer a 2% cash discount for early
payment, which the agency may pass on to its client.
2.Negotiated Fee
Many agencies and their clients negotiate some type of fee
system or cost plus arrangement for compensation. The fees
negotiated by the agency covers all the expenses incurred as well
as its profit margin. When the agency is not a recognized one, it
may not receive normal media commission. In such a case, it is
paid a negotiated fee for specialized services rendered.
This method is more objective as compared to the
commission method. It is fair to both the parties i.e. the advertiser
and the advertising agen cy. While the advertiser pays fees as per
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3.Agency charges
Apart from the cost incurred for booking time and space in
media, an agency has to spend mo ney on artwork, comprehensive
layouts, and printing, filing radio or TV commercials and so on. In
such case, the agency charges its clients for such expenses. The
suppliers of such services may pay commission to the agency for
large or regular orders. Thus , this method is profitable to the
agency.
4.Cost -plus system
Under this methods, the client agrees to pay the agency
the cost of work i.e. employee cost and out -of-pocket expenses
plus a certain percentage of this amount say 20%.to 25% to
cover overheads a s well as profits of the agency.
This method is used when media billing is small and the
client requires ample of agency service. This happens at the time
of introducing a new product in the market or when the client
needs non -commissionable work from the agency such as
preparing catalogues, brochures etc.
5.Speculative charges
Under this method, the agency pays the bill on behalf of the
advertiser during its difficult period. As and when the advertiser
becomes financially stable, he is charged for the same .S u c h
charges are called speculative charges. However, large
agencies usually avoid such type of dealings.
CHECK YOUR PROGRESS
1.“With the growth in ad agencies, competition for client’s
accounts is increasing ”.Discuss.
2.Enlist the reasons for client’s turnover.
3.Define the following terms:
a.Client Turnover
b.Creative Pitch
c.Commission method
d.Speculative charges method
e.Cost -plus system
f.Agency Charges method
4.“Pitching is the window for an agency to enter into the client’s
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5.6AGENCY ACCREDI TATION
5.6.1 Meaning
Accreditation is a process in which certification of
competency, authority, or credibility is presented. The
certification of competence in a specified subject or areas of
expertise, and of the integrity of an agency, firm, group, or
person is awarded by a duly recognized and respected
accrediting organization.
Agency accreditation refers to official recognition given to
an advertising agency by authorities connected with advertising.
In India, it is given by the Indian Newspaper Soci ety (INS), All
India Radio (AIR) and the Doordarshan as per the accreditation
criteria decided.
It is not compulsory for an advertising agency to obtain
accreditation. However, it is advisable to have accreditation as
accreditation gives professional stat us to an agency.
Accreditation indicates that the agency is observing high
professional standards in its business operations. Further, it also
follows the code of conduct.
5.6.2 Advantages of Accreditation
Accreditations to agencies offer the following ad vantages:
The agency gets a professional status.
The professional status enhances goodwill of the agency.
Clients prefer accredited agencies as these agencies
maintain high professional standards while conducting
their business activities.
Such an agency h as better media connections.
Only an accredited agency gets 15% commission from the
media owners.
Further, it also gets better terms of credit from the media
owners. For instance, it can make payment to the media
owner up to 60 days after the date of adver tisement.
5.6.3 Criteria f or Accreditation
In order to be eligible for accreditation, an agency must
satisfy the following criteria:
1.Skill and Experience
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It must emplo ys k i l l e da n dt r a i n e dp e r s o n n e lt oh a n d l e
advertising business.
It has actually carried on business for a minimum period,
for instance six months in case of INS.
2.Rules and Regulation
The agency must follow the rules and regulations framed by
INS, AIR and DD. Further, it must handle the business in
accordance with the code of ethics adopted by INS, AIR and
DD.
3.Minimum business limits
The agency must have fulfilled the minimum business limits
with INS, AIR, and DD.
5.6.4 Application and Declaration
An adv ertising agency which desires to obtain
accreditation has to submit an application to the concerned
authority. Further, it has to make a declaration to abide by the
rules and regulations in regard to accreditation and the code of
ethics.
The agency is gra nted accreditation if it satisfies the
recognition criteria.
5.6.5 Loss of Accreditation andits Restoration
An accredited agency shall lose its recognition:
1.Upon its decision to disassociate itself as an accredited
advertising agency.
2.Upon death or bank ruptcy of the sole proprietor, dissolution of
partnership firm or winding up of the company.
3.Upon the accredited advertising agency ceasing to do
advertising business as provided for under the rules and
regulations framed by DD/ AIR and INS.
The concer ned authority shall always have to power to
renew or restore full or provisional accreditation of any
advertising agency subject to conditions that may be imposed for
such renewal or restoration.
5.7CAREER OPTIONS
5.7.1 Introduction
The field of adverti sing offers lucrative employment
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Possessing a professional Degree or Diploma in a particular field
of study can give a head start in th is industry. Further, flair for
language and excellent communication skills are other factors
essential for breaking into the realm of the advertising business.
5.7.2 Classification of Advertising Field
Advertising field offers a range of lucrative and in teresting
career options. The job in this field is categorized into two broad
categories, namely, Executive and Creative.
1.Executive
The executive side includes Client Servicing, Market
Research, Media Research etc. The executive department
understands req uirements of the client, seeks new business
opportunities and retains existing business. This department also
selects the appropriate media, analyses timing and placement of
advertisements, and negotiates the financial aspects of a
business deal.
2.Creative
The creative team comprises of copywriters, scriptwriters,
visualizers, creative directors, photographers, typographers,
animators, and so on. The creative department creates
the actual advertisement in different media formats. They
verbalize and visualiz et h es p e c i f i cn e e do ft h ec l i e n t .
To get into a specific department of an advertisement agency,
one could choose from the following careers:
Client Servicing: A post graduate diploma or an MBA in
marketing.
Studio: Course in commercial art or fine arts ( BFA or MFA).
Media: journalism, Mass Communication or an MBA.
Finance: CA, ICWA, MBA (Finance).
Films: Specialisation in audio visuals.
Production: A course in printing and pre -press processes.
The best way to get into this field after a course is to ge t
on-the-job training. All good institutions offer internship as part
of the curriculum.
5.7.3 Essential Requirements
The first and the foremost requisite to take up a position in
advertising world is to be creative. This creativity can be in any
form, be it in language, communication skills, drawing, innovative
thinking, and so on.
Advertising is the best career option for those who are
enthusiastic, creative, optimistic, and have the ability to multi
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makes one understand what a client needs and also helps in
effective decision making. An institution running advertising
related courses can help train and develop students to pick up
traits such as:
Effective communication
Presentation a nd management skills
Team and leadership skills
Stress and pressure management
Persuasiveness
Confidence
Competitiveness
5.7.4 Eligibility
Eligibility for most of the advertising postgraduate courses
is graduation in any discipline with a minimum of 50 pe rcent
marks. Admission to most of these courses is based on an
entrance exam and/or interview. Some institutions also offer
graduate level courses in advertising, for which they admit
students who have cleared class XII.
5.7.5 Job Prospect
Job opportuniti es in advertising include openings in private
advertising agencies.
Advertising departments of private and public sector
companies.
Job seekers can also find openings in advertising /
marketing departments of newspapers, journals,
magazines; commercial sec tion of radio or television;
market research organizations and so on.
One can also work as a freelancer.
5.7.6 Positives of advertising as a career
Challenging and satisfying job.
Hefty growth prospects that are one of the best in the
country.
Heavy pay p ackets with project related incentives.
5.7.7 Negatives of advertising as a career
An industry that is known for its extremely long working
hours.
High pressure and stress inducing work environment.
5.7.8 Top companies
Some of the giants in advertising a nd media planning that
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Hindustan Thomson Associates (HTA), McCann Erickson,
Leo Burnett, Grey, R. K. Swamy -BBDO, Bates, Redifussion Dy
and R, Lintas India Ltd., Ogilvy & Mather Ltd., and Mudra
Communi cations Ltd.
5.8CAREER OPTIONS IN ADVERTISING AGENCY,
MEDIA AND SUPPLYING / SUPPORTING FIRMS
Following are some of the typical roles
A.In an Advertising Agency
1.Advertising Manager
The Advertising Manager builds and implements the
company's advertising strategy from the business, sales
and technical perspective. All the discussions with the
sponsors and agencies are initiated and managed by the
Advertising Manager. He negotiates agreements with
outside sales representatives and manages the
development of sales materials, including media kits.
2.Advertising Sales Director
In addition to the role performed by the advertising
manager, the Advertising Sales Director plans budgets
and projection for advertising.
3.Account Executive
The Account Executive is respon sible for maintaining
good relationships with current and potential advertising
accounts/clients. He is also in -charge of developing
relationships in order to acquire new accounts.
4.Account Co ordinator
The Account Coordinator is responsible for organisin g
advertising for media. He co -ordinates scheduling and
promotions to ensure client satisfaction and project
completion. Assisting Account Executives in maintaining and
nurturing client relationships is part of the job.
5.Media Buyer
AM e d i aB u y e rd e a l sw i t hp u r c h a s i n gm e d i as p a c eo r
time, as well as developing the campaign and researching
how it will be most effective for the client. The job is to
choose a combination of media which is able to communicate
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6.Copywriter
Ac o p y w r i t e ri sr e s p o n s i b l ef o rw r i t i n gt h ec o p yf o r
advertisements, TV commercials or print ads. Copy is nothing
but words used to promote the product or service. From
taglines to brochures to press releases to a l eaflet or a
newsletter all of it is written by the copywriter. It is one of the
most creative and challenging jobs.
B.InMedia
Al o to fm e d i ao p t i o n sa r ea v a i l a b l et oc o m m u n i c a t e
the advertising message to the target audience. Students
have a wide choice if they want to choose media as a career.
However certain skills & qualities are essential which include:
Creative thinking
Dedication and hard work
Working in team
Courses for Media
At the undergraduate level, majority of the institutes
conduct Bachelor of Arts (BA) in Mass Communication cour se for
the minimum three year' du ration. Students can also opt for
postgraduate level study in media through Master of Arts (MA) in
Mass Communication. However, doctorate and diploma level
courses are also offered by the institutes.
Some of the Institutes in India for Media Courses are:
Indian Institute of Mass Communication (IIMC),
International School of Media and Entertainment,
Pioneer Media School,
International School of Business and Media,
Xavier Institute of Co mmunications,
AJK Mass Communication Research Centre,
Mudra Institute of Communications (MICA),
Asian College of Journalism,
The Times School of Journalism, etc.
Job Prospects in Media
Media is certainly among the top career options among the
young aspir ants. After pursuing courses in the field, one can find
various jobs prospects in both government and private sector.
Students can seek their career as journalist, marketing
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C.Media Production House
Media production involves making films and television
serials, fictional and non-fictional programmes. Along with the
technical expertise such as direction and editing, it is
necessary to have facilities w hich include equipments and
trained manpower required to create programmes.
Networking with studios, technicians, actors and channels is
also essential.
D.Brand Management
Brand Management involves creating, managing and
enhancing brands. It is the art of creating and sustaining a
brand in way that it creates differentiation in the customer's
minds resulting into brand loyalty. The typical function of a
brand manager would be to focus on the big picture, take
responsibility for a brand or brand family, map out their
competitors in their brand's category, identify marketing
opportunities and be able to effectively• communicate the
unique benefits of that product or service.
Some of the typical roles one can find in Brand
Management would be:
1.Brand Manager
The planning and directing of marketing efforts for a brand is
carried out by the Brand Manager. He is also responsible for
coordinating activities of specialists in production, sales,
advertising, promotion, research and development, marketing
research, p urchasing, distribution, package development, and
finance.
2.Product Development Manager
AP r o d u c tD e v e l o p m e n tM a n a g e ri sap l a n n i n ga n d
development specialist. His job is to develop marketing
opportunities for consumer or industrial products. A Product
Development Manager needs the skills and understanding in
marketing research, sales forecasting, and promotional planning.
E.Public Relations
The PR department is considered as the spokesperson of the
company. It is responsible for managing communication with the
media, consumers, employees, investors and the general public.
Writing press releases to promote products or to keep investors
informed about business partnerships, financial results or other
company news is part of the job.
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1.PR Specialist
The Public Relations Specialist gives information about an
organization through media. He is in -charge of writing press
releases, speeches, planning special events, representing their
company at press co nferences and trade shows, tracking trends
and looking for opportunities to receive media coverage.
2.PR Director
The company's overall strategic public relation programs
(Community relations, internal communications, media and
investor relations) are devel oped and implemented by the public
relations director. Other responsibilities include planning and
budget management.
3.Corporate Communications Manager
The task of a Corporate Communications Manager is to create
and manage communications programs which de scribe as well as
promote an organization and its products. Speeches/
presentations aimed towards employees and consumers are
made with his assistance.
4.Press Secretary
AP r e s sS e c r e t a r yw o r k sa sal i a i s o nb e t w e e nt h em e d i a ,t h e
public and governmental age ncies. Requests from newspapers,
radio and television reporters; drafting press releases, guest
columns and speeches and organizing events such as press
conferences are handled by him.
5.9FREELANCING OPTIONS FOR CARRER IN
ADVERTISING
A.Market Research
Market research involves researching the intended target,
could be companies or consumers. The first step is to understand
the consumers, their needs, purchasing habits, and how they
view themselves in relation to the rest of the world. Some of the
typical r oles one can find in a Market Research agency would be
1.Market Research Director
An organization's marketing policies, objectives, and
initiatives are guided by the Market Research Director. He
is responsible for the adjustment of the marketing plan after
reviewing changes in the marketplace.
2.Market Research Manager
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market research and the development of new concepts as well as
organization's products, services or ideologies is carried out by a
Market Research Manager. He is actively involved in the
formulation and planning of development proposals which include
objective or purpose of projects, costs of projects, equipments
and manpower requirements.
3.Market Research Supervisor
AM a r k e tR e s e a r c hS u p e r v i s o ri sa c t i v e l yi n v o l v e di n
supervision of market research and analysis of information which
would help in creating demand for products or services. He is
responsible for planning and creating research aspects and
development proposals.
4.Market An alyst
The collection and analysis of data in order to evaluate
existing or potential product and services markets is handled by a
Market Analyst. They are actively involved in the identification
and assessment of research market conditions or industry
chan ges that have the potential to affect sales.
B.Graphics
Meaning
Graphic Design is the skill of creating visual
communication. Visual communication takes many forms and
includes logos, posters, brochures, books, websites, animations,
motion graphics and eve nf i l ma n dv i d e o .
Typical Career Options
Creative, perceptive and energetic individuals may find
career in advertising agencies, design studios, printing industry,
publishing, packaging, display and exhibition -related design.
Lately, opportunities exist i nd i g i t a lm e d i aa n dw e bd e s i g n ,w h i l s t
enterprising graduates practice freelance or open their own
studios.
The following is a list of typical Graphic Design related
career directions:
1.Graphic Design: One can work as a Graphic Designer in a
design studio developing logos, stationery, posters, brochures,
catalogues and more. Good technical skills, creativity, and
knowledge of Graphic Design processes are requirements for
working in this field.
2.Advertising: Work of an Art Director involves generating
creati ve ideas and to oversee execution of these for
television, radio, billboards and magazines. The emphasis
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required to direct teams of people including photographers
and film directors.
3.Publi shing :O n e c a n w o r k a s a n A r t D i r e c t o r i n t h e m a g a z i n e
industry where one will be involved in layout, photography and
production of publications. The candidate must possess a
good mix of technical skills, design knowledge and have a
good eye for photograp hy and styling of photo shoots.
4.Web Design: One can also work as a Web Designer in a
design/web design agency/studio. Strong technical
understanding and creative solutions to technical restrictions
are required in this field.
5.Packaging: Work of a Packagi ng Designer involves creating
effective packaging which may promote the brand and help
ensure product positioning in the market place. They must
have a strong understanding of package -oriented production
and printing processes.
6.Multimedia :W o r ka saM u l t i media artist/ designer designing
title sequences for TV shows and graphics for adverts. A
Multimedia Artist uses computers to create the art, graphic
design, animated images, or special effects seen in a variety
of media productions, including movies, tele vision, and
computer games. A Multimedia Designer often works as part
of a team to create rich web sites, CD -Roms, DVDs or
exhibition materials.
7.Print :W o r ka saP r e p r e s sS p e c i a l i s td e t e r m i n i n g
preparedness of documents before going to printing. It
includ es checking colours, gathering fonts, colour finishes, as
well as other print industry foundations.
8.Illustration: Work as an Illustrator involves conceptualising,
painting and drawing new images used for a variety of
materials and publications. Artistic t alent and knowledge of
design programs such as Illustrator and Photoshop are
prerequisites.
9.Typography: Work as a Type Designer involves creating
unique fonts so that words will have a strong visual impact in
addition to their implied meanings.
C.Animation
Ac a r e e ri na n i m a t i o nr e q u i r e ss t r o n ga r t i s t i cs k i l l sa n das o l i d
familiarity with the latest in computer animation technologies. It
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There are a number of different career paths for animators.
Many animators are employed creating animated graphics
for a variety of projects. This can include websites, online
advertisements and video games.
Animators can find full -time employment with movie or
television production companies, with advertisers, web
design firms, video game companies or with animation firms.
Freelance work is another option for animators, particularly
those specializing in web animation.
Most entry -level positions w ill require an animator to have a
bachelor's degree in a related field such as fine arts or media.
There are a number of Computer Animation Schools that offer
course work specifically in computer animation and associated
technologies.
D.Modeling
It is one of the most fascinating career options and
extremely popular among youngsters. Good earnings and instant
popularity are the main advantages that a career in modeling can
offer. As modeling is also considered as a gateway for entry to
the film industry the competition in the modeling career is also
very high.
Qualification & Qualities
No specific qualification, course or age limit is required to
enter into modeling field. However, physical attributes are more
important. The first and foremost step is to prepare a portfolio.
This consists of a series of photographs taken by a professional
photographer. The portfolio can then be shown to an advertising
agency or to a model coordinating agency.
Types
Modeling in India is mainly categorized into print modeli ng,
television modeling, still modeling, showroom modeling, ramp/live
modeling, advertising modeling etc. The job opportunities are
available in product advertising, live fashion shows, music videos,
in garment fairs and acting in television programs or fi lms.
Besides models having wide experience in this industry
can open school/institution for imparting training to aspiring
models. Experienced models also can set up model coordinating
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Institutes
There are several modeling agencies in India that can give
ag o o db r e a kt os t a r tt h ec a r e e ri nm o d e l i n g .S o m eo ft h ep o p u l a r
modeling agencies in India are Face 1, Mumbai; Ozone Models
Management, Mumbai; Mayros Management Services, Mumbai;
Catwalk, New Delhi ;P l a t i n u mM o d e l s ,N e wD e l h i ;G l i t z ,N e w
Delhi.
E.Dubbing
Dubbing is the post -production process of recording and
replacing voices on a motion picture or television soundtrack
subsequent to the original shooting. The term most commonly
refers to the substi tution of the voices of the actors shown on the
screen by those of different performers, who may be speaking a
different language.
Not only can dubbing be used to perfect audio sounds, but
it is also used as one of the two major forms of "language
transfe r" In this case, dubbing becomes the replacement of the
dialogue and narration of the foreign language, into the language
of the viewing audience.
F.Printing
If you are mechanically -minded, practical and like hands -
on work in a creative environment, then p rinting is for you. You
will utilise a sophisticated range of computer -managed printing
machinery to print everything from books, brochures,
newspapers, magazines, food and product packaging -practically
anything you can think of.
There are many types of printing processes depending on
the sort of final product your employer’s business produces.
Some businesses specialize in color magazines, brochures,
posters and so on.
Other manufacture labels for foodstuffs, bottles, clothing and
ticketing.
Some produ ce specialised items such as chip packets, frozen
food wrapping and CD labels. All of these different processes
require different types of equipment.
Most modern printing equipment is highly computer
controlled, so the work is clean and able to be quality -controlled
to a high degree. One will learn how to determine the type of
paper or material that will be printed on, how to achieve the exact
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Most printers begin their career with an apprenticeship
leading to a Certificate IV in Printing & Graphic Arts.
5.10 SUMMARY
The agencies have to constantly search for new clients
some of the ways of getting clients are: advertisement, referra ls,
presentations, by becoming the member of various associations,
solicitations, by building image and reputation.
Client turnover means clients change their advertising
agency it affects negative ly on the agency. Dissatisfaction with the
creative effort s,conflict on payment ,handling the competitor’s
account ,Personal Conflicts ,P e r s o n n e lc h a n g e si nt h es t a f f ,
Unsuccessful Advertising Campaigns ,Lack of Coordination &
Communication, Inadequate Services ,Insufficient Network of the
agency ,Change of loca tion,New Advertising Agency ,Human
Tendency to change ,Withdrawal of product from market ,Lack of
accreditation are the main reasons for turnover.
As the market gets more competitive and witness
information overload, every marketer is looking for unique and
clutter breaking solutions, Pitching is the window for an agency to
enter into the client’s world.
Commission, Negotiated fee, Agency charges, Cost -plus
system, Speculative charges etc are the methods used to
compensate the agencies for their services are.
Agency accreditation refers to the process in which
certification of competency, authority, or credibility is presented .
The field of advertising offe rs lucrative employment options
in the field of executive and creativity.
5.11QUESTIONS
1.Expla in the ways of getting clients.
2.Define Client Turnover. Discuss the reasons for Client Turnover.
3.What is Creative Pitch? Explain the steps in preparing Creative
Pitch.
4.Explain the Freelancing career options in advertising field.
5.Write short notes:
a.Agency c ompensation
b.Agency accreditation
c.Career Options in advertising field
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6
ECONOMIC AND SOCIAL ASPECTS OF
ADVERTISING
Unit structure:
6.0 Objectives
6.1 Introduction
6.2 Effects of advertising on production cost
6.3 Ethical and social issues in advertising
6.4 Impact of advertising on Indian Values and Culture
6.5 Advertising and standard of living
6.6 Self-regulation Laws and Consumer protection and welfare
6.7 Pro Bono Advertising
6.8 Advertising Standard Council of India
6.9 Summa ry
6.10 Revision
6.0 OBJECTIVES
After studying the unit the students w ill be able:
To explain the effects of different costs on advertising
To explain how society is affected by advertising both positive
and negative way
To explain the regulatory system in India with regards to
advertising
To explain Ethical and Social iss ues related to advertising
6.1INTRODUCTION:
Advertising involves huge cost. It is important to study the
economic impact of advertising. Advertising plays an important role
in an economy by making consumers aware of goods and services
and providing them with information for decision making. Advertising
has an impact on consumer demand, monopoly, competition and
price. A advertising contributes to the wider economy through its
ability to support competitiveness, providing consumers with
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6.2 EFFECTS OF ADVERTISING
6.2.1 Effects of Advertising o nP r o d u c t i o nC o s t
The term production cost refers to the cost incurred by producer
in manufacturing of a product. Advertising does not contribute for
increase in the cost of production. Advertising has indirect effects on
production cost. Due to advertising, the firm may get higher demand,
which may result in economies of scale. Thus per unit cost of
production will come down. Following Table shows it very clearly
how advertising is resulting in economies of scale.
Table -1
Production
in unitsMaterial cost
per unit
(Rs.)Labour cost
per unit
(Rs.)Overcost
per unit
(Rs.)Total cost of
production
per unit
(R s . )Advertising
expenses
(Rs.)
Before
Advertising1000 50 60 70 180 Nil
After
Advertising2000 40 50 60 150 5000
After
advertising3000 30 40 50 120 10000
After
advertising4000 25 30 40 95 15000
Explanation on Table -1
Before advertising total prod uction was 1000 units and cost per unit
was Rs. 180/ -
After advertising the demand for the product started increasing
and production cost per unit started coming down. Thus advertising
indirectly brings down the producti on cost from 180/ -per unit to Rs.
95/-per unit. The gradual reduction I the cost of production is the net
result of various factors such as optimum utilization of production
capacity ,large -scale purchase of raw material ,introduction of labour
saving devices and use of new technology.
6.2.2 Effects of Advertising o nDistribution Cost
Advertising generate demand, which may increase the
production resulting in increase in distribution. The advertising
expenses will definitely add to the total distribution expenses. But the
increase in distribution may lead to economies of scale. Thus the
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Table -2
Particulars of expenses Position before
advertising ( In Rs. )Position after
advertising (In Rs. )
Units distributed within one
week
(a)Advertisi ng expenses
(b)Sales force Salaries
(c)Other distribution
expenses10,000
Nil
8,000
2,00050,000
7,500
15,000
2,500
Total cost of distribution 10,000 25,000
Per unit cost 1.00 0.50
Explanatio n-After the advertising the sales volume has increased
from 1 0,000 units to 50,000 units per week resulting in reduction in
cost per unit. Here it is from Rs. 1.00 to Rs. 0.50. Means there is
benefits of Rs. 0.50 per unit.
6.2.3Effects of Advertising o nC o n s u m e rp r i c e
Consumer price consists of production cost, selling and
distribution costs and profit margin of the seller. An expenditure on
advertising will increase marketing cost. But advertising leads to
increase in demand and considering the demand for the product,
producer go for large scale of producti on and distribution. As such
they get economies of large scale. These economies are passed on
partly to the consumers in the form of reduced prices.
6.2.4Effects of Advertising o nMonopoly and Competition
It is argued that advertising is one factor re sponsible for the
creation ofmonopolies. Advertising is used as a tool for creating
brand loyalty. Due to such brand loyalty, consumers prefer one
specific product and this restricts the entry of other firms. As a result,
monopoly is created. Economist li ke Samuelson held that the very
large advertisers create such brand loyalty that potential competitors
find it very difficult to enter the market. But it does not happen all the
time. There are many instances when a small manufacturer with
limited advertis ing upsets the position of giants because of effective
advertising appeal. Many local and regional advertisers compete
successfully against large national advertisers. Forexample ,Nirma
Washing Powder made a successful entry in the national market.
Hindu stan Lever’s Surf Brand dominated the market till the late
sixties . Twelve years hence Nirma became a major force to reckon
with. The success strategy of Nirma is large volume selling with low
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6.3ETHICAL A ND SOCIAL ISSUES IN ADVERTISING
6.3.1Meaning
Ethics is a branch of social science that deals with moral
principles and values. It is concerned with good and bad, with
reference to particular culture at given point of time. Now ad a y ,the
main intere st for advertisers is to increase the demand for the
products. Most of the advertisements are found to be false,
misleading customers, andunethical. Good advertising is one which
ishonest. It gives details of the products in a true manner. Many a
times a dvertisers indulge in unethical advertising practices.
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6.3.2 Forms of unethical advertising
a) Exaggeration
Forexample, ‘ Cleaning of a basket full of clothes with one soap ’,
another example, ‘XBulb will serve for a life time’
b) Misrepresen tation
For instance, some advertisers may state that their products are
made from foreign components and sometimes they may declare
that their products have won international prizes and awards.
c) Misleading Labels and names
Forexample, the ‘Borolene ’ antiseptic cream label has been copied
and its brand name imitated with such words as ‘Boroqueen’ such
misleading names confuse the consumers as to the real
manufacturers. A product may carry the famous country mark USA
(United States of America). Howeve r,it may be a product of
Ulhasnagar Sindh Association which is popular for duplicate
products.
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d) Misuse of Testimonials
Very often, phony testimonials from popular personalities like
Film stars, Cricket stars etc. are used in advertisements. For
example, Testimonials of the same personality appear on
competitive brands
e) Free gifts, discounts and contests
Forexample, sometimes advertiser offers free gifts or product
which are damaged or of old stock or of inferior quality. Incase of
prize wi nning contests, the decision of the Judges may be final in
favour of their known contestants.
f) Total Lies
For example, Reduction of 10 kg weight within 8 days.
Another example could be a company may advertise that millions of
its readymade shirts have been sold. In fact, the company produces
only a few thousands shirts a year.
g) Cheap and Vulgar advertising
The use of sex symbols, obscene photographs, reference to the
most personal body functions of women are some examples of
vulgar advertising.
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h) Advertising of harmful products
For example, a dvertisement of Pan Masala, Gutka ,
Cigarettes and alcoholic drinks are indirectly advertised and
promoted.
i) Advertising to children
Forexample, advertisements of so called junk food such as
choco lates, candies ,s o f t -drink etc. c anaffect their health adversely
when consumed in large quantity.
j) False statistics
For example, Particular publisher has sold 5000 copies of
books when hardly 700 copies are sold.
6.4IMPACT OF ADVERTISING ON INDI AN VALUES
AND CULTURE
Advertising has close relationship with the cultural values.
Advertising can be made effective by using various aspects of
cultural background and values. Similarly, advertising can also harm
and degrade our cultural background and value system. Critics of
advertising argue that advertising is encouraging materialistic values
at the cost of cultural values while supports of advertising feel that
advertising is supporting and strengthening our cultural heritage.
6.4.1Does advertis ing degrade our cultural values
It is argued that advertising:
a)Advertising supports materialistic values. They support
enjoyment, selfish attitude for material gains, extensive use of
money power for worldly pleasures, and utter disregard to work
culture.
b)Large number of advertisements show the permissive society of
thewest. Itinfluences the people to adopt westernized way of life.
c)C. There are many advertisements that are restricted by law
e.g. liquor, cigarette isput in surrogate advertisement fo rm. For
example, Bagpiper Soda.
d)Advertisements of harmful goods are shown in very attractive
manner. For example, Tobacco, Pan Parag, Cigarettes which are
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e)Extensive advertising leads to severe competition among rival
prod ucers.
f)In many advertisements woman isgiven passive role. It lowers
the dignity of women.
g)Undue importance is given to sex and nudity. Such
advertisements create bad effects on younger generation and
lead to crimes among the youth.
h)Some advertisement ss h o wd e p i c ts c e n e so f murder, rape and
other acts of violence. This leads to harmful effects on the
audience, particularly younger generation, and also harms our
social and cultural values.
The points noted above indicate some sort of aggression of
advertising on our cultural and social values.
Supporters of advertising argue that:
a)Some advertisements promote social welfare and social values.
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b)Some advertis ements support role of women in our society. For
example, advertisements of medicines and washing powder
show the care of mother for cleanliness and health of a child
c)Many advertisements support herbal medicines. For example,
advertisement of VICCO To othpaste etc.
d)Some advertisements create favourable attitude for women. For
example, Amul Ghee shows a man making a surprise breakfast
for his wife who is in bed.
e)Some advertisements support equal importance of male and
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f)Advertisements related to Joint family and prominent role of
women in the family and child care supports family life.
Some advertisements support sports and cultural activities
and even sponsor such events.
6.5SELF REGULATION LAWS AND CONSUMER
PROTECTION AND WELFARE
In nearly all the countries, advertising regulation happens on
many (many) levels. ... The Consumer Protection from Unfair
Trading Regulations is a regulation designed to protect consumers
against aggressive sales techniques, false or deceptive ad
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vitally important in the absence of legislative control on advertis ing
profession. There must be standards/ codes that provide guidelines
to undertake ethical advertising. “Advertising and marketing
self-regulation is a system by which the advertising, marketing,
agency and media industry set voluntary rules and standards of
practice that go beyond their legal obligations. Self -regulatory
organizations (SROs) are responsible for enforcing industry's
commitment to these rules.” The purpose of the Advertising
Standards Code (Code) is to ensure that every advertisement is a
responsible advertisement. All advertising must be legal, decent,
honest and truthful and respect the principles of fair competition, so
that the public can have confidence in advertising.
6.5.1Objectives of self-regulation:
A.Protecting the consumers
B. Cancellation of accreditation of members who do not follow the
code of conduct.
C. Discouraging unethical advertisements. For example ,vulgar and
indecent advertisements .
D. Taking action against the advertisers who advertise products
hazardous to hum an health and life.
6.5.2Scope of Advertising regulations
Some of the principle concepts of advertising and marketing law
include truth in advertising and unfair trade practices. Here are
several laws in India that relate to advertising. A snapshot of some of
these enactments is provided here und er
1.Consumer Protection Act, 1986 -Section 6 of the Act grants
consumers the right to be informed about the quality, quantity,
potency, purity, standard and price of goods or services, as the
case may be so as t o protect the consumer against unfair trade
practices. Section 2(r) of the Act, under the definition of the term
“unfair trade practice”, covers the gamut of false advertisements
including misrepresentations or false allurements. Redress
against such unfai r trade practices pertaining to false
advertisements may be sought under the Act;
2.Cigarettes and other Tobacco Products (Prohibition of
Advertisement and Regulation of Trade and Commerce,
Production, Supply and Distribution) Act, 2003 -Section 5 of
thisAct, inter alia, prohibits both direct & indirect advertisement of
tobacco products in all forms of audio, visual and print media;
3.Cable Television Networks (Regulations) Act, 1995 and
Cable Television Networks (Amendment) Rules, 2006 -
Section 6 of the Ca ble Television Networks (Regulations) Act,
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advertisement is in conformity with the advertisement code
prescribed under the Cable Television Net works (Amendment)
Rules, 2006. Rule 7 of the Cable Television Networks
(Amendment) Rules, 2006 lays down the “Advertising Code” for
cable services which are formulated to conform to the laws of the
country and to ensure that advertisements do not offend mo rality,
decency and religious susceptibilities of the subscribers;
4.Doordarshan/ All India Radio (AIR) Advertisement Code -
Doordarshan and AIR, both under the control of Prasar Bharati (a
statutory autonomous body established under the Prasar Bharati
Act), follow a comprehensive code for commercial
advertisements which control the content and nature of
advertisements that can be relayed over the agencies;
5.Food Safety and Standards Act, 2006 -Section 53 of this Act
provides a penalty of up to Rs. 10 lakhs f or false and misleading
advertisements relating to the description, nature, substance or
quality of any food;
6.Indecent Representation of Women (Prohibition) Act, 1986 -
This Act is aimed at prohibiting indecent representation of women
through advertisement s or in publications, writings, paintings,
figures or in any other manner and for matters connected
therewith or incidental thereto (Section 3 and 4 of the Act).
Needless to say, the foregoing laws are in addition to
applicable IPR laws and other relevant laws in general.
6.5.3Regulatory Authorities
Advertising Standards Council of India (ASCI) is a self
regulatory voluntary organization of the advertising industry. The
ASCI has drawn up a code for self regulation in the advertising
industry with a purpo rted view to achieve the acceptance of fair
advertising practices in the best interests of the ultimate consumer.
The ASCI also lays down similar codes for advertisements in specific
sectors/industries from time to time. According to the ASCI code,
complai nts against deviant advertisements can be made by any
person who considers them to be false, misleading, offensive, or
unfair. The Consumer Complaints Council (CCC) considers and
decides on the complaints received from the general public including
governme nt officials, consumer groups, complaints from one
advertiser against another and even suo moto complaints from the
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6.6PRO BONO ADVERTISING (Social advertising)
6.6.1Meaning :
Social advertising is also called as P ro Bono Advertising. Pro
Bono is a shorten version of Latin word -Pro Bono Publico -which
means ‘ for the good of public’.
Social advertising is non-commercial innature. It is aimed for
social benefits. Such advertisements are primarily designed to
inform and educate rather than sell a product or service. Such social
issues are as follows :
1.Environmental protection
2.Safe driving
3.AIDS awareness
4.Family planning
5.National integration
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6.6.2Advantages:
1.Social advertisement is undertaken for the benefits of the society.
It results in Brand identity and Goodwill.
2.Social advertising can be used as a tool for generating Brand
loyalty.
3.A company undertaking advertising for social causes is p erceived
positively by people. It leads to increase in profits of the company.
4.Positive brand identification is another reason for companies to
undertake advertising for social causes.
5.Social advertising informs people about the social welfare
activities undertaken by the company.
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6.7ADVERTISING STANDARD COUNCIL OF INDIA:
Advertising Standard Council of India (ASCI) is a professional
body set up by advertisers, advertising agencies, Newspapers,
Magazines and other involved in advertising. It was set up in 1985.
The ASCI has been established to monitor and discourage
untruthful advertisements. It ensures that advertising follows the
principles of truth and social morality. The council has drawn up a
code of self-regulation to ensure the truth -fullne ss and honesty of
representations and claim made by advertisements and to safe
guard consumers against misleading and fraudulent advertising.
And to ensure that advertisements are not offensive to generally
accepted standards of public decency.
6.8REVIS ION:
A)When should price be advertised?
Answer:When the quality is not an issue, or if the product is
high quality, the reason for the low price should be explained.
B)What doyouuunderstand by Surrogate Advertising?
Answer: Surrogate advertising is an in direct form of advertising,
which is used in situations where advertising will be legally banned.
C)What isthe Truth involved in Advertising rules which applies
toA d v e r t i s e r s ?
Answer:
1. Advertisers should always ensure the following is kept in mind
befor e advertising.
2. Advertising must always be highly truthful non -deceptive.
3. Ads should be a fair deal.
4. Advertisers should always keep backups on the claims and have
evidence for their advertising.
D)What isthemain cause foraadvertisement tobedece ptive ?
Answer: An ad is deceptive when it omits any information or
contains any wrong statement. As it is likely to mislead the
customers who will be reacting reasonably under various
circumstances and which will help the customer to analyze and
decide whe ther to buy or use the product .
E)What makes an Advertisement unfair?
Answer: If it is likely to cause a substantial injury to the customer,
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6.9SUMM ARY
Aadvertising contributes to the wider economy through its
ability to support competitiveness, providing consumers with
information on products and services, and helps to increase their
choice of goods and services .Advertising has an impact on
consumer demand, monopoly, competition and p rice. Now ad a y ,the
main interest for advertisers is to increase the demand for the
products. Most of the advertisements are found to be false,
misleading customers and unethical. Advertising can be made
effective by using various aspects of cultural back ground and values.
Similarly, advertising can also harm and degrade our cultural
background and value system. Advertising Standards Council of
India (ASCI) is a self regulatory voluntary organization of the
advertising industry. The ASCI has drawn up a cod ef o rs e l f
regulation in the advertising industry with a purported view to
achieve the acceptance of fair advertising practices in the best
interests of the ultimate consumer. The ASCI also lays down similar
codes for advertisements in specific sectors/ind ustries from time to
time.
6.10EXERCISE
1.Explain the economic effects of advertising on production and
distribution cost
2.What is waste in advertising? Explain the reasons of waste in
advertising.
3.‘Advertising has an adverse effect on our values and lif e-styles’
Comment
4.Explain the importance of self-regulation laws in consumer’s
protection
5.Write note on:
a)Advertising and consumer price.
b)Ethics in adverting
c)ASCI
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7
BRAND BUILDING AND SPECIAL
PURPOSE ADVERTISING
Unit structure :
7.0 Objectives
7.1 Introduction
7.2 The communication process
7.3 AIDA Model
7.4 Role of advertising in developing Brand image and brand
equity
7.5 Brand Equity
7.6 Managing brand crises
7.7 Special purpose advertising
7.7 Rural advertising
7.8 Political advertising
7.9 Corporate image advertising
7.10 Green Advertising
7.11 Trends in advertising
7.12 Summery
7.13 Exercise
7.0 OBJECTIVES
After studying the unit the students will be able:
To understand the concept of Brand Building
To explain the role of advertising in brand building
To identify special purpose advertising
Tounderstand the latest trends in advertising
7.1 INTRODUCTION
Ab r a n di st h e sum total of everything which a company does
and that signifies the good and the bad to create a distinct presence
in the mind of a consumer. To build a brand requires a strategic
vision, a clear focus on how you would want your brand to be
perceived and i ts strong value propositions. Brand Building is not an
overnight job. It has to maintain its relevancy over time. Only then
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manufactured is good in quality, only a distinct identity crea ted for a
brand can make it a consumer’s first choice. Over a period of time,
the product gets identified with certain qualities and this creates a
distinct brand identity for the product and company. The American
Marketing Association describes the brand as a “Name, term, sign,
symbol or design or a combination of them intended to identify the
goods and services of one seller or group of sellers and to
differentiate them from those of other sellers”.
Example: The Nike swoosh, The McDonalds “M”, The Merced es
emblem.
A brand represents value, culture, personality. Brands make it
easier for consumers to identify products and services. Brands
ensure a comparable quality. For example, Shoes by BATA,
Woodland, Colgate toothpaste from Colgate Palmolive, Sam sung
mobile handsets by Samsung, Lux beauty soap by HUL. Another
example is Dabur. Dabur Company is dedicated to Ayurvedic
solutions for various consumer needs.
Example:
Dabur Hajmola –for digestion,
Dabur Amla hair oil –for strong hair
Dabur Honey –for good health.
7.2 THE COMMUNICATION PROCESS
Communication comes from the Latin word ‘Communis’ which
means common. In communication we are trying to share
information, an idea or opinion.
Communication always requires four elements. The elements
in the advertising communication process are:
1)Sender -The sender i .e.advertiser encodes the advertising
messages and transmit them to the target audience through selected
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2)The Message -With the help of advertising agency advertiser
comes up with creative and effective advertising message.
3)Medium -Medium means media of advertising through which
advertising messages are transmitted by the advertiser to the
audience.
4)The receiver -The audience is the receiver in the advertising
communication. T he receiver may be readers, listeners or viewers.
7.3 AIDA MODEL
The AIDA is a model used in marketing that describes the
steps a customer goes through in the process of purchasing a
product. The AIDA model has been in use since the late 19th century.
AIDA model has been developed by E.K. Strong in his book ‘The
Psychology of selling’. AIDA is an acronym which stands for:
1.Attract attention:
The product must attract the consumer's attention. This is done via
the advertising materials. It is a typ eo f“ eye catcher .” It could be
attractive Headline, Attractive illustration (Cartoons, Natural scenes)
etc. Examples: a window designed in a striking way, a sensational
YouTube clip, or a themed newsletter, or a graphic on a landing
page.
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2. Maintai n interest:
In the first phase, the attention of the potential customer is piqued;
their interest in the product or service should be aroused. This is
achieved by creating an understanding of the benefits of the product
in relation to the needs of the cus tomer. Example: detailed
information of the product like Quality, Price, Size, Uses of the
product etc.
2.Create desire:
If interest in the product is aroused, it is the seller’s task to persuade
the customer that they want to own this product. In the best -case
scenario, the advertisement or the product itself creates the desire to
purchase. The desire can be created by Offering discounts on
purchases, Free gifts, Offering Guarantee /Warranty, Use of
Testimonials from reputed personalities etc.
3.Take action:
As soon as the desire to buy is aroused, this must be transferred into
an action, that is, the purchase. In the case of online shops, this
would ultimately be the shopping cart process, in which a customer is
lead to a conversion. The ad should en d on an active note , such as
‘Get one today’ ‘Hurry up, the last date’
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7.4 ROLE OF ADVERTISING IN DEVELOPING BRAND
IMAGE AND BRAND EQUITY
A major objective of advertising is brand building. Brand
building involves developing brand’s core values in the minds of
target audience. Brand image is a mental picture or perception of
brand in the mind of the customers. It creates a differentiation in the
minds of customers and makes it a choice above the others in the
same product class. Also Brands offe r “value proposition”. We buy
for emotional reasons, self expressive reasons and factual reasons.
Example: For Volvo buyers, it is safety. For Big Bazaar Loyalists, it is
value for money. For AXE users, it defines them.
7.4.1 Techniques of developing brand image
a.Creativity in advertising -Creative advertisements create good
brand image. For example, Amul Butter, Vodafone, Cadburys
Dairy Milk etc.
b.Brand awareness -Brand awareness is the extent to which a
brand is recognised by the existing and pote ntial customers.
c.Media selection -The quality of media or programmes sponsored
may influence the brand image. For example, Raymond Suiting
may advertise in Business Magazines, but not in ac h e a pl o c a l
magazine .
d.Symbols or Logos -The Symbols or Logos also facilitate instant
brand recognition and recall. For example, McDonalds,
Mercedes, MRF Tyres etc.
e.Sponsoring of events -The event sponsored by the brand
/company can affect the image. For example, Tennis
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f.F. Brand Po sitioning -Brand positioning helps a brand to
achieve a unique position that makes it stand out among the
crowd and give it a sort of exclusivity.
g.G.Brand Loyalty -Brand loyalty occurs when customer
repeatedly purchase the same product instead of competi ng
substitute product.
7.5 BRAND EQUITY
7.5.1 Meaning
Edward Tauber defines brand equity as, ‘The incremental
value of a business above the value of its physical assets due to the
market position achieved by its brand and the extension potential of
the brand’ Brand equity indicates the strength of the brand In the
market place. A strong brand has high brand equity. Consumers are
ready to pay a premium price for a brand with high equity.
7.5.2Factors affecting brand equity
1.Brand Image -Brand image is overall impression of the brand in
the minds of consumers. Positive brand image enhances the
goodwill and brand value.
2.After -sale S ervice -The after -sale-service provided by the
company can make a difference in brand equity.
3.Brand Patent -Patenti ng the product gives exclusive marketing
rights for certain number of years. Other companies can not sell
similar product in the market without the permission of patent holder.
4. Perceived Quality -Ab r a n dw i l lh a v ea s s o c i a t e dw i t hi ta
perception of ov erall quality not necessarily based on the knowledge
of detailed specifications. Perceived quality will directly influence
purchase decisions and brand loyalty, especially when a buyer is not
motivated or able to conduct a detailed analysis. It can also su pport a
premium price which, in turn, can create gross margin that can be
reinvested in brand equity.
5. Brand Association -The underlying value of a brand name is
often based on specific associations linked to it. Associations such
as Ronald McDonald can create a positive attitude or feeling that can
become linked to a brand such as McDonald’s. If a brand is well
positioned on a key attribute in the product class (such as service
backup or technological superiority), competitors will find it hard to
attack .
7.5.3 Managing Brand crisis
Brand crisis is a form of product -harm crisis where the
negative event centres on one particular brand or set of brands
belonging to the same company. In other words, whenever there are
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deliver expected benefits, thereby weakening brand equity.” In 2016
Maggie received a notice from Food Safety Commissioner of Uttar
Pradesh claiming that a package of noodles had been found to
contain lead which was seven times above the permissible limit and
they recalled the batch. A temporary ban was also put on Maggie
and it was pronounced as ‘Unsafe and Hazardous for human
consumption.
7.5.4Following are the ways to manage brand crisis
a.First contact list -Usually in a crisis we need to tread carefully
with communications. Rushing out a public -facing press release
can easily go wrong. Often we can take a bit of time before
putting out a d etailed response to the world. But for other
stakeholders, be they suppliers, investors, or major clients, we
need to be quicker in reassuring them about what’s going on.
There’s nothing worse than dealing with an angry public and
jittery investor at the s ame time. Put together a list of all the
people who will need to be contacted as soon as possible in the
case of a problem. Think about the best person internally to
contact them and make sure they’re included in all discussions
around the crisis.
b.Appoint as p o k ep e r s o n -Speaking of set roles, we need to
choose someone who will be company’s spokesperson. How we
perceive a message is heavily influenced by the person
delivering it. They could be telling the entire truth, but if their voice
isshaky or they l ook nervous, we instantly doubt what’s coming
out of their mouth. Very few people are naturally good at facing a
hostile press.
c.Use social media -According to an ODM study, 65% of
respondents think social media makes a crisis worse. But 55%
think it makes a crisis easier to deal with after. And that pretty
much sums it up. Information, correct or incorrect, spreads like
lightning through social media. This can make things difficult to
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advance . Social media platforms are a double -edged sword in a
crisis. We need to ensure that it is used properly.
d.Focus on facts -Any negative publicity can effectively be
countered by showcasing the facts about the issue. Ideally a third
party endorsing the cont ention of the company can also have a
positive impact on controlling damage.
e.A clear and organized team -A crisis hits and the sooner we act
the better. But who needs to know first? Who needs to start
drafting a response? Who needs to investigate the issu e? A
structured team with set roles for everyone is important. This
stops confusion taking hold from the off and keeps everyone on
their own task.
7.5.5Advantages of Branding:
1.Brands allow consumers to distinguish between various
Company offerings. (e.g. Sunsilk, L’oreal shampoo)
2.Brands helps consumers to make a quick choice.
3.Experiencing various brands help consumers to compare its
quality standards. (Colgate toothpaste)
4.If consumers have the slightest doubt about the performance of
theproduct they decide not to buy it. (e.g. 2015 Maggi noodles
controversy)
5.Brands helps consumers to express their social -psychological
needs like
(a)Social status (Honda car), (b) Success (Rao’s Academy), (c)
Young (Pepsi)
6.Once the brand creates cr edibility for itself in the mind of its
consumers, automatically it will create loyalty among consumers,
which in turn, will always support the increase in the revenue
generating capacity of the brand (e.g. Tata, HUL)
7.6 SPECIAL PURPOSE ADVERTISING
Special purpose advertising includes Rural advertising,
Political advertising, Corporate image advertising, Green advertising,
Online advertising, Digital media advertising, Use of Mobile devises,
Social media etc.
7.7 RURAL ADVERTISING
7.7.1 Meaning
According to the 2011 census of India 68.84% of Indians
(around 833.1 million people) live in rural area. There are 6,40,867
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over large remote areas. There exists diversity with respect to c aste,
religion, language; social custom etc. ‘Go rural’ is the marketer’s new
slogan. Indian marketers as well as multinationals, such as
Colgate -Palmolive, Godrej and Hindustan Lever have focused on
rural markets. Thus, looking at the opportunities, whic hr u r a l
markets offer to the marketers, it can be said that the future is very
promising for those who can understand the dynamics of rural
markets and exploit them to their best advantage.
7.7.2 Features of rural advertising:
a.Rural masse s-The rate of increase in rural population is also
greater than that of urban population. The rural population is
scattered in over 6 lakhs villages. The rural population is highly
scattered, but holds a big promise for the marketers.
b.Diverse Culture -Indian rural marke t is very diverse. There exists
lot of differences based on customs, traditions, beliefs, morals,
practice and so on. So finding a common theme to appeals to
such diverse audience is huge challenge
c.Local language -In order to communicate effectivel yi nr u r a l
areas, it is essential to make use of local language. Use of
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only the language used in these ads must be local, but also the
setting must be local.
d.Traditional media -Traditi onal media likePuppetry, Folk Theatre,
WallPaintings, ads on vehicles etc. are used for promoting
products. Such media has a local reach and is relatively
inexpensive. Local advertisers can use these media effectively.
e.Development of Infrastructure -There is development of
infrastructure facilities such as construction of roads and
transportation, communication network, rural electrification and
public service projects in rural India, which has increased the
scope of rural marketing.
f.Low standard of living -The standard of living of rural areas is
low and rural consumers have diverse socioeconomic
backwardness. This is different in different parts of the country. A
consumer in a village area has a low standard of living because of
low literacy, low per -capita income, social backwardness and low
savings.
g.Traditional outlook -The rural consumer values old customs and
traditions. They do not prefer changes. Gradually, the rural
population is changing its demand pattern, and there is demand
for branded prod ucts in villages
7.8 POLITICAL ADVERTISING
7.8.1 Meaning
Political advertising is one whose central focus is in the
marketing of ideas, attitudes, and concerns about public issues,
including political concepts and political conditions. In politics,
campaign advertising is the use of an advertising campaign through
the media to influence a political debate, and ultimately, voters.
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advertising displays, newspaper ads, billboards, signs, brochures,
articles, tabloids, flyers, letters, radio or television presentations,
digital or social media advertising, or other means of mass
communication, used for the purpose of appealing, dir ectly or
indirectly, for votes or for financial or other support in any election
campaign.
7.8.2 General Requirements
a.Most political advertising requires sponsor identification (a brief
message that explains who paid for the ad). The type of ad, pr int,
broadcast, etc., determines how the sponsor ID must be
displayed.
b.All political advertising about a candidate for partisan office must
identify the candidate's party preference. There are no
exemptions.
c.Statements about candidates in political adver tisements must be
truthful.
d.When candidate photos appear in political ads, at least one photo
must have been taken in the last five years and it can be no
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7.9 CORPORATE IMAGE ADVERTISING
7.9.1 Meaning
Corporat e image advertising is also known as institutional
advertising. It is a type of advertising that does not focus on specific
product, but on the corporate image of the advertiser. The basic
purpose is to generate a positive opinion of the company in the
minds of the people. In other words, it is a type of advertising
intended to promote a company, corporation, business, institution,
organization or other similar entity. Such advertising does not
attempt to sell anything directly. Institutional advertising fo cuses on
touting the benefits, ideas, or philosophies of your business, or its
entire industry, to enhance or repair its reputation rather than selling
a product or service. Since institutional advertising attempts to build
a positive image, it's closely r elated to public relations.
7.9.2 Objectives of Institutional Advertising
a.The first and foremost objective of Institutional Advertising is to
promote the image of a business as a whole rather than of a
single product or service.
b.The business also tri es to promote its mission, vision as well as
its philosophies and principles.
c.Institutional advertising is also an effective way to create and
maintain goodwill about the organization in the market.
d.Organizations also use this kind of advertising to promot eg o o d
qualities such as reliability, low prices or good customer care, that
distinguish it from its competitors.
7.9.3Features of institutional advertising are as follows:
a.Focus on corporate name -The focus of Institutional Advertising
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b.Contents -It includes research and development activities, social
welfare activities etc. of the company.
c.Non controversial -Since only the achievements of the company
are highlig hted the question of allegations and counter
allegations does not arise.
d.Media used -The media used in corporate image advertising is
mostly print, I.e., Newspapers and Magazines
e.Directed towards -Institutional advertising is directed towards
several gro ups such as users of the products, suppliers, investors,
Government and general public.
7.10 GREEN ADVERTISING
7.10.1 Meaning
Green advertising is a specific type of advertising that is
centred around the promotion of factors having to do with
environm ent. It refers to advertising of eco -friendly product s.A
specific type of advertising that is centred around the promotion of
factors having to do with the environment. Oftentimes the companies
that use green advertising also use very environmentally frie ndly
operations and product packaging as well.
An important point to note here is that the product is not
required to do anything with environment. It is more related to the
psychological aspect of a customer that if a product addresses the
environmen tal concerns then it is better. We can even see the
companies which cause pollution advertising their product using
green advertising to create a positive image in front of customers and
present themselves in a good light. Green Advertising helps to
attrac t consumer by highlighting green features and eco -friendly
products that are safe for environment as well as consumers. Green
Advertising has a positive impact on consumers purchase intentions
and builds strong trust between the two.
7.10.2 Green advert ising can be used in two ways:
a.Show that the product is made up of natural resources and is
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b.Show that a company is concerned for environmental
degradation and we ar e working towards it either directly or
indirectly. In this way, companies either make products which
helps environment or they invest the money or resources in
environment protection activities.
7.10.3Features
a.Purpose -It promotes environmental friendl y products.
b.Certificate displayed -The certificate or logo indicating
environment friendly product is displayed
c.Implied Claim -This is an implied of communicating about the
product being environment friendly.
d.Social responsibility -Social objective of b usiness is achieved.
7.11 TRENDS IN ADVERTISING
Advertising media is witnessing convergence of media.
Convergence allows one media outlet to take advantage of features
and benefits offered through other media outlets. For example, there
is convergenc e of television and internet. In the case of some
television programs, one can see the same program on the
television, and another person can see it on the internet.
7.11.1 Online advertising
Online advertising is also called as web advertising is a form
of advertising that makes use of the internet to deliver promotional
messages to consumers. In other words, online advertising which is
also called online marketing or Internet advertising or web
advertising is a form of marketing and advertising whic hu s e st h e
Internet to deliver promotional marketing messages to consumers.
Online advertising helps businesses in targeting global
customers. Business firm can operate business from anywhere in
the world and serve its customers across globe if it has powerful
presence online. Therefore, online advertising serves the aspirations
of getting global exposure within very short span of time. Nowadays
online advertising is a popular trend among all business owners.
Online advertising has emerged as one of the mo st powerful tool of
advertising. This is because the wide reach of Internet and online
advertising websites. The dependency of people over Internet has
increased drastically. They now knock the doors of search engines
or various online service providers in any specific domain of their
interest. Therefore, having a powerful online presence helps
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There are different forms of Internet Advertising. Banner
advertising and pop -up ads are now matter of past. They are still
present and equally popular as they were before, but now the stress
is on search engines based advertising. People now understand that
if they are getting top search engine ranks in almost every popular
search engine , then no one can stop them from getting success in
their business.
7.11.2. Digital media advertising
Digital media advertising also referred to as e -advertising is
the use of elec tric channels to promote products. Such advertising is
digitally displayed. Digital advertising technology exists on the
internet, smart phones, and even on automobiles and billboards. In
other words, Digital advertising includes promotional advertisements
and messages delivered through email, social media websites,
online advertising on search engines, banner ads on mobile or Web
sites and affiliates programs.
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7.11.3 Mobile devices
Mobile advertising is a form of advertising via mobile phones or other
mobile devices. Mobile advertising takes place as text ads via SMS,
Multimedia messages via MMS, or Banner advertisement that
appear in mobile web site, in download apps or in mobile games.
7.11.4 Social media
Social network advertising is a form of on line advertising through
social networking sites. Popular social media sites, Facebook,
Twitter, and You tube offer different ways to advertise brands.
Facebook is one of the biggest players in digital advertising.
7.12 SUMMARY
A brand is the sum tota l of everything which a company does
and that signifies the good and the bad to create a distinct presence
in the mind of a consumer. The AIDA is a model used in marketing
that describes the steps a customer goes through in the process of
purchasing a prod uct. AIDA is an acronym which stands for A -
Attention, I -Interest, D -Desire; A-Action. A major objective of
advertising is brand building. A strong brand has high brand equity.
Special purpose advertising includes Rural advertising, Political
advertising, Corporate image advertising, Green advertising, Online
advertising, Digital media advertising, Use of Mobile devises, Social
media etc.
7.13 EXERCISE
1.Explain in detail the communication process in advertising
2.Discuss the AIDA model
3.Explain the role of advertising in developing brand image?
4.What is brand equity? What are the factors affecting brand
equity?
5.Explain the features of rural marketing
6.What is political advertising? What are its features?
7.What is Green advertising? What are its features?
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