BC-3106 Subject – Advertising & Sales Promotion

UNIT I CONCEPT, IMPORTANCE TYPES, HISTORY, OBJECTIVES

Advertising is a non-personal form of promotion that is delivered through selected media

outlets that, under most circumstances, require the marketer to pay for message
placement. Advertising has long been viewed as a method of mass promotion in that a
single message can reach a large number of people. American Marketing Association
defines advertising as "any paid form of non-personal presentation of ideas, goods and
services by an identified sponsor".
Elements
1. It can be in any form like a sign, symbol, an illustration or ads in magazines,
newspapers, radio or TV.
2. It is non personal: There is no personal selling involved in it.
3. It is employed to communicate information about goods and services.
4. It is openly paid by an identified sponsor.

Importance of Advertising
Market research firm Zenith Opt media estimates that worldwide spending on advertising
exceeds (US) $400 billion. This level of spending supports thousands of companies and
millions of jobs. In fact, in many countries most media outlets, such as television, radio and
newspapers, would not be in business without revenue generated through the sale of
advertising.
1. Advertising is an important contributor to economic growth
2. Advertising is the communication link between the seller and the buyer
3. Advertising informs, persuades and reminds the customers about a product.
4. It helps in achieving organizational goals.
5. Advertising is complementary to personal selling
6. It is a tool of marketing and a component of overall promotion activities
7. Advertising influence the marketing mix or 4 Ps-Product, Place, Price and
Promotion
8. Advertising is also useful for promoting:
 • Standardized products products aimed at large markets.
• Products that have easily communicated features products low in price.
• Products sold through independent channel members and/or are new.

9. Promoting Products or Organizations – Institutional Advertising promotes

organizations, images, ideas or political issues. 1E Beer Company sponsors responsible
drinking to promote the company image. Product Advertising promotes goods and
services.
10. Stimulating Primary and Selective Demand – First to introduce product needs to
stimulate primary demand. Pioneer Advertising informs people about the product
(introduction stage of the product life cycle). Do not emphasize the brand name. It can also
be used to stimulate the demand for a product group. For Selective demand, advertisers
use Competitive advertising, brand uses, benefits not available with other brands. Can use
comparative 'advertising, E.g. Competitive advertising between Pepsi and Coco Cola
11. Offsetting Competitors Advertising – Defensive advertising, offset to lessen the effect of
competitors advertising. Used in fast food industry, extremely competitive consumer
products markets.
12. Making salespersons more effective – Tries to presell product to buyers by informing
them of uses, features and benefits- encourage them to contact dealers etc. Cars...bring, to
retail store.
13. Increasing use of product – Consumer can consume only so much of a product, this
limits absolute demand. May need to convince the market to use the product in more than
one way.
14. Reminding and reinforcing customers – Reminder, need to keep company/product
name at the forefront of consumers' minds in the competitive marketplace. Reinforcement
prevents cognitive dissonance.
15. Reducing Sales fluctuations – Increase sales during slow periods will help increase
production efficiency. Advertising reduces prices of soft drinks, A Cs in the winter months
(reduce inventory costs).

IMPORTANCE, OF ADVERTISING TO DIFFERENT ELEA IENTS OF

MARKETING/BUSINESS IMPORTANCE TO MANUFACTURES
• It increases sales volume by creating attraction towards the product.
• It helps easy introduction of new products into the markets by the same
manufacturer
 • It helps to create an image and reputation not only of the products but also of the
producer or advertiser. In this way, it creates goodwill for the manufacturer.
• Retail price, maintenance is also possible by advertising where price appeal
strategy
• It helps to establish a direct contact between manufacturers and consumers.
• It leads to smoothen the demand of the product. It saves the product from
seasonal fluctuations by discovering new and new usage of the product.
• It creates a highly responsive market and thereby quickens the turnover that
results in lower inventory.
• Selling cost per unit is reduced because of increased sale volume. Consequently,
product
overheads are also reduced due to mass production and sale.
• Advertising gives the employees a feeling of pride in their jobs and to be in the
service of such a concern of repute. It thus inspires the executives and worker to
improve their efficiency.
• Advertising is necessary to Meet the competition in the market and to survive.

IMPORTANCE TO WHOLESALES AND RETAILERS

• Easy sale of -the products is possible since consumers are aware of the product and
its quality.
• It increases the rate of the turn-over of the stock because demand is already
created by advertisement.
• It supplements the selling activities.
• The reputation created is shared by the wholesalers and retailers alike because
they need not spend anything for the advertising of already a well advertised
product:
• It ensures more economical selling because selling overheads are reduced
• It enables them to have product information.

IMPORTANCE TO CONSUMERS
• Advertising stresses quality and very often prices. This forms an indirect
guarantee to the consumers of the quality and price. Further large scale production
assumed by advertising enables the seller to seller product at a lower cost.
 • Advertising helps in eliminating the middlemen by establishing direct contacts
between producers and consumers. It results in cheaper goods.
• It helps them to know where and when the products are available. This reduces
their shopping time.
• It provides an opportunity to the customers to compare the merits and demerits of
various substitute products.
• This is perhaps the only medium through which consumers could know the varied
and new uses of the product.
• Modern advertisements are highly informative.

IMPORTANCE TO SALESMEN
Salesmanship is incomplete without advertising. Advertising serves as the forerunner
of a
salesman in the distribution of goods. A sale is benefited the advertisement in following
ways:
• Introducing the product becomes quite easy and convenient because
manufacturer has already advertised the goods informing the consumers about the
product and its quality.
• Advertising prepares necessary ground for a salesman to begin his work
effectively. Hence sales efforts are reduced.
• The contact established with the customer by a salesman is made
permanent through
effective advertising because a customer is assumed of the quality and price of the
product.
• The salesman can weigh the effectiveness of advertising when he makes direct
contact with the consumers.

IMPORTANCE TO COMMUNITY OR SOCIETY

• Advertising, in general, is educative in nature. In the words of the late President
Roosevelt of the U.S.A., "Advertising brings to the greatest number of people actual
knowledge concerning useful things: it is essentially a form of education and -the
progress of civilization depends on education."
• Advertising leads to a large-scale production creating more employment
opportunities to the public in various jobs directly or indirectly.
 • It initiates a process of creating. more wants and their satisfaction higher
-standard of living. For example, advertising has made more popular and universal
the uses of such inventions as the automobiles, radios, and various household
appliances.
• Newspapers would not have become so popular and so cheap if there had been no
advertisements. The cheap production of newspapers is possible only through the
publication of advertisements in them. It sustains the press.
• It assures employment opportunities for the professional men and artist.
• Advertising does provide a glimpse of a country's way of life. It is, in fact, a
running commentary on the way of living and the behavior of the people and is also
an indicator of some of the future in this regard.

ADVERTISING
THE ECONOMIC IMPACT OF ADVERTISING
The economic effect of advertising is like he breaks shot in billiards. The moment a
company begins to advertise,: a chain reaction of economic events takes place. The extent
of the chain reaction, although hard to measure, is related to the force of the short. But
because it occurs at the 1p time as many other economic events, the direction is often
disputed.
For example
• Does advertising affect the value of products?
• Does advertising raise or lower prices?
• Does advertising promote competition or discourage it?
• How does advertising affect the total demand for a product category?
• Does advertising make more consumer choices available or fewer?
• How does advertising influence the business cycle?
• These are just some of the frequently asked (an difficult to answer) questions
related to the chain reaction of economic events
1. Effect on the Value of Products-Why do most people prefer Coca-Cola to some other
cola? Why do more women prefer Estee Lauder to some unadvertised, inexpensive
perfume? Are the advertised products functionally better? Not necessarily. But
advertising: can add value to a product in the consumer's -mind.
Advertising also creates added value by educating customers about new uses for a product.
VEET was originally advertised make-up remover, later as a disposable handkerchief.
Sunkist promoted oranges a food and later as a drink.
2. Effect on Prices - If advertising adds value, to products, it follows that advertising also
adds cost. Right'? And if companies stopped all that expensive advertising, products would
cost less. Right? Advertised products do cost more than unadvertised products; the
opposite also true. We can make some important points:
• As one of the many costs of doing business, advertising is indeed paid for by the
consumer who buys the product. In most product categories, though, the amount
spent on advertising is usually very small compared to the total cost of the product.
• Advertising is one element of the mass-distribution system that enables many
manufacturers to engage in mass production, which in turn lowers the Unit cost of
products. These savings can then be passed on to consumers in the form of lower
prices. In this indirect way, advertising helps lower prices.
• In industries subject to government price regulation (agriculture, utilities),
advertising has historically had no effect on prices. In the 1980s, though, the
government deregulated many of these industries in an effort to restore free market
pressures on prices. In these cases, advertising does affect price – often downward,
sometimes upward.
• In retailing, price is a prominent clement in many ads, so advertising tends to hold
prices down. Manufacturing firms advertise to stress features that make their
product better, advertising tends to support higher prices.
3. Effect on Competition —
• Intense competition does tend to reduce the number of businesses in a industry.
However, the firms eliminate by competition may be those that served customers
least effectively.
• In many cases, advertising by big companies has only effect on small businesses
because no adviser is large enough to dominate the whole country.
• Regional oil companies for example, compete very successfully with national oil
companies on the local level. And non-advertised store brands of food compete
effective with nationally advertised brands on the same shelves.
• In Industries characterized by heavy advertising expenditure, advertising does
inhibit the entry of new competitors.
 • In some markets, the original brands probably benefit greatly from this barrier.
But heavy spending on plants and machinery is usually a far more significant
barrier.

4. Effect on Consumer Demand – The question of advertising’s effect on total comsumer

demand is extremely complex.
• Many social and economic forces including technological advances, the
population‘s educational level, increases in population and per capita income, and
revolutionary changes in lifestyle, are more significant.
• For example, the demand for CD players cellular phones, and personal computers
expanded at a tremendous rate, thanks in part to advertising but more to favorable
market conditions. At the same time, advertising has not reversed sales declines for
such items as hats, fur coats, and manual typewriter.
• Advertising can help get new products off the ground by stimulating demand for a
product class. But in declining markets, advertising can only slow the rate of
decline.
• In growing markets, advertisers generally compete for shares of that growth. In
mature; static, or declining markets, they compete for each other's shares—
conquest sales.
Features of Advertising
1. Non-personal presentation of message — In advertising there is no face-to-face or direct
contact with the customers. It is directed to the prospective buyers in general.
2. Paid form of communication – In advertising the manufacturer communicates with
prospective customers through different media like, newspapers, hoardings, magazines,
radio, television, etc. He has to pay certain amount for using some space or time in those
media.
3. Promotion of product, service or idea —Advertisement contains any message regarding
any particular product, service or even an idea. It makes people aware about the product
and induces them to buy it.
4. Sponsor is always identified – The identity of the manufacturer, provider who issues
advertisement is always disclosed.
5. Communicated through same Media – Advertisements are always communicated
through use of certain media. It is not that there will be just one medium All the media may
also be used.

History of Indian Advertising

 • Pre independence —West end watch co Mumbai 1907
• 1930 —Talkies and radio emerge in India
• 1941 Lecla chitnis : LUX SOAP(1943), EVEREST (1946)
• 1950 2-3 MIN FILMS in existence
• 1960 first Indian ad convention(Kolkata), nargis wadia :made for each other
• NRS(National Readership Survey), INS (Indian News Paper Society), AAI
(Advertising Association of India) Come into existence.
• 1970 – 1980 : radio & TV Commercials
• 1990 —CNN, DD2, and channels.
• LINTAS (Lever International Advertising Service), Mc Cann,O & M (Ogilvy
and
Mather), FCB Ulka, Orienta etc.(2008)
Objectives
1. Communicate
2. Inform
3. Increase in sale
4. Competition
5. New product launch
6. Build goodwill
7. Better dealer relations
8. Effective brand performance

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FUNCTIONS OF ADVERTISING
1. Primary Functions — To Increase Sales,
• Persuasion of dealers
• Help to dealers
• Increase in per capita use
• Receptiveness of new- product
• Insurance for manufacturers Business
• Confidence in quality
• To eliminate seasonal fluctuations
 • More Business for all
• Raising standard of living.
2. Secondary Functions —
• To encourage salesman ship and lend them moral sport
• To furnish information
• To impress Executives
• To impress factory workers
• To secure better employees

Types of Advertising
A. Advertising based on Demand influence Level
Advertising can be grouped on the basis of whether advertisers attempts to promote in
general or specific brand of product. Two type of advertising can be grouped in this
category.
1. Primary Demand Advertising – Primary demand refers to the demand for the
generic products like TV, Milk and Magazines, etc. Primary demand advertising
intends to promote the demand of a product and not simple one particular brand of
that product.

2. Selective Demand Advertising – The selective demand advertising is done with the
objective of stimulating the demand of specific brands in which the advertiser deals.
Competitive advertising stimulates selective demand. The advertisement of Surf,
Godrej, Colgate, Nescafe, Samsung, and Sony are all examples of selective brand
advertisements.

B. Advertising based on Objectives

Another classification of advertising is on the basis of objective/functions they are expected
to perform. Such advertising comprises of –
1. Institutional Advertising – The institutional advertising is intended of focus and enhance
the image of the institution. Big companies like Reliance, L&T, and Godrej etc. resort to
this type of advertising.
2. Product Advertising – A large number of advertisements fall under this category. The
purpose of this advertising is to stimulate the demand of the product being advertised and
includes description of the product, size, quality benefits, uses etc.
3. Public Service Advertising – Public service advertising is done as part of social
responsibility by the advertiser. The focus of this advertising is welfare of the public and
includes social, economic and cultural issues of public interest. For instance,
advertisements of road safety, pollution control, AIDS family Welfare, literacy etc, Such
advertising may intend to educate, creating awareness, information and reminding the
public at large.

C. Advertising based at Audience

Such advertising is targets to specific segment of audience and depending the nature and
requirements of the audience. Advertising copy is prepared and messages are drafted. Such
advertising includes –
1. Consumer Advertising – Most of the consumer goods producer engage in consumer
product advertising. Such advertising is done for the ultimate user of the product
appealing directly to the buyers/consumers. Toothpastes, Soaps, Cold, Drinks and
Cosmetics are all examples of consumer advertising. Such advertising may be done through
various media like Radio, TV and Print (newspapers and magazines.)
2. Industrial Advertising – The manufacturer of industrial goods such as raw material,
machinery, equipments, suppliers or fabricated parts do industrial goods such as
advertising is targeted towards industrial buyers with the object of promoting goodwill of
the product as well as the company persuades industrial users to deal in the product being
advertised. Such advertising is done through Trade Journals, Magazines, Catalogues and
Direct Mail etc.
3. Trade Advertising – This category includes all such advertisements that are directed to
retailers and suppliers of consumer‘s goods. The main purposes of these advertising are to
convince the retailers to stock a particular product and emphasis is an improved profit
potential.
4. Professional Advertising – There are certain products for which consumers they do not
take the buying decision. The professionals like doctors, dentists, architects, civil engineers
etc. exert considerable influence in consumers purchase decisions. Because these
professionals are considered to be an expert in their field, the consumers respect their
judgment about the quality and usefulness of the product hence these professionals
demand comprehensive evaluate criteria for the product.

D. Timing of the Response it elicits

Such advertising includes –
1. Direct Action Advertising – The objective of direct action advertising is to obtain the
immediate or response over a short period of time. Such advertising use words like –
Hurry, Discount/offer is valid for limited period, send the enclosed etc. Such
advertisements are given to make sakes promotion campaign successful.
2. Indirect Action Advertising – Such advertising to create a favorable attitude of the
customer about the product, company. Therefore such advertising is a normal part of the
company‘s advertising strategy to get a positive response in the long run and not on seeking
immediate response in the form of inquires or orders. Action sought here is indirect in
nature.
E. Advertising based on Geographical coverage
Advertising can be classified on the basis of geographical coverage also. The message of
such advertisements are aimed at specific response for specific geographical segments –
1. National Advertising – This advertising spread, throughout the country largely use such
advertising. Such companies select those advertising media, which have wide accessibility.
Companies like Ford, Reliance, Tata, Broke Bond, Escorts advertising theirs products at
the national level.
2. Local Advertising – The Company with limited resources, productions and target
market do local advertising. Big companies, who are interested to penetrate the local
market intensively, many also sometimes use the local media for advertising.
3. Global Advertising – Multi-national firms do the business in different countries. Firms
such as IBM, Proctor & Gamble, Sony, National Panasonic, and General Electric etc.
advertise globally through international media. However, they will have to keep local
cultural conditions into consideration while preparation of advertising copy.

F. Others
Besides the above, other types of advertising can be as follow &
1. Financial Advertising – Financial advertising refers to advertisements issued by
financial institutions like bank mutual funds and other companies offer sale of
shares/debentures to public.
2. Cooperative Advertising – When two or more advertisers join hands to participate in
the advertising campaign collectively, it is termed as cooperative advertising. Examples
include Acc, Indian Bank Association etc.
3. Push and Pull Advertising – Push advertising is aimed at advertising the benefits of the
products to the retailers and the middleman so they can carry the product and promotes it
to the customer.
Pull strategy, on the other hand, often used in a situation when the manufactures go
directly to the consumers and stimulate the demand for the products that the customer will
ask and the dealers will be motivated to stock the brand in order to please their customers.
3. Comparative Advertising – It compares specific product attributes with
competitor‘s brand. Today‘s comparative advertising sis used widely. Here the
advertiser put the competitors name (sometimes not) and highlight the advantages
of his product. Negative comments about competitors are viewed as unethical or
unprofessional.
Commercial Advertising
Commercial advertising in general is the use of advertising to generate revenue. One
important aspect of commercial advertising is that it creates a demand or a perceived need
for something. As soon as the consumer has a reason to want, commercial advertising is
there to offer a solution to that need.
Advertisements give answer to a consumer‘s questions, including where to eat, where to go,
or what to buy. Effective advertising works to create a desire a solution to that need. Not
every aspect of commercial advertising relates to fulfilling and immediate need. Advertisers
also strive to create name recognition, which is commonly called ―branding‖. Effective
branding means the consumer instantly recognizes the company or the product name and
has come to feel positively about it. Companies use commercial advertising in an effort to
impress consumers with how happy they will be once they buy the item or use the service
offered.

Sales Promotion: Objectives, Importance, Techniques, Examples, Methods, Types and

Tools
Concept and Nature of Sales Promotion:
Sales promotion is an important tool of promotion which supplements personal selling and
advertising efforts. According to American Marketing Association, “Sales promotion includes
those marketing activities, other than personal selling, advertising, and publicity, that stimulate
consumer purchasing and dealer effectiveness, such as displays, shows and expositions,
demonstration, and various non-recurrent selling efforts not in the ordinary routine.”
Sales promotion includes techniques like free samples, premium on sale, sales and dealer
incentives, contests, fairs and exhibitions, public relations activities, etc. Sales promotions are
those activities, other than advertising and personal selling that stimulate market demand for
products. The basic purpose is to stimulate on the spot buying by prospective customers through
short-term incentives. These incentives are essentially temporary and non-recurring in nature.
Sales promotion is different from personal selling which is persuasion of customers by the sales
persons to buy certain products. It is also different from advertising. Except for advertising
through direct mail, advertising deals with media owned and controlled by the firm itself.
Usually, sales promotion deals with non-recurring and non-routine methods in contrast to
personal selling or advertising. As a matter of fact, sales promotion activities aim at
supplementing and co-ordinating personal selling and advertising.
Sales promotion includes activities of non-routine nature to promote sales, e.g., distribution of
samples, discount coupons, contests, display of goods, fairs and exhibitions, etc. But it does not
include advertisement, publicity and personal selling.
Interrelationship of Sales Promotion and Advertising:
Sales promotion includes all those activities which promote sales such as distribution of samples,
discount coupons, contests, display of goods, fairs and exhibitions, etc. Advertising, on the other
hand, is any paid form of non- personal presentation and promotion of ideas, goods and services.
The objectives of both sales promotion and advertising are similar and they complement each
other.
They are interrelated in the sense that they are integral parts of the ‘promotion mix’ of the
business. Advertising supports sales promotion activities by informing the public about such
efforts of the company. Similarly, sales promotion activities remind the people of the message
advertised by the business firm.
Objectives of Sales Promotion:
The basic purpose of sales promotion is to increase the sales of a product by creating demand.
Sales promotion has a capability to complement and supplement the advertising functions of the
marketing. It helps marketers to realize a variety of objectives. These objectives are for both
marketers and traders.
Following are the objectives of sales promotion:
i. It improves the performance of middlemen and acts as a supplement to advertising and
personal selling.
ii. It motivates sales force to give desire emphasis on new accounts, latent accounts, new
products and new territories.
iii. It increases sales and makes sales of slow moving products faster and stabilize fluctuating
sales pattern.
iv. It attracts channel members to participate in manufacturer promotion effort.
v. Motivating the dealers to buy high volumes of products and push more of the brands that are
on promotion.
vi. Supporting and supplementing the advertising and personal selling efforts.
vii. Making consumers to switch brands in favour of firm.
viii. To overcome the seasonal fluctuation of products.
ix. Inducing retailers to promote the brand by local advertising and POP display.
x. Sales promotions motivate the salesmen to sell more and to sell the full line of products.
xi. To reduce the perception of risk associated with the purchase of a product.
Sales promotions encourage the customers to try a new product. For example, companies
distribute free samples of their new product. To attract new customers distribute free sachets to
households. Some companies offer a free pack with purchase of a product like free soap with
purchase of detergent. Henko detergent introduced scratch card scheme in which customers
usually received discount coupons so that customers buy the same product (Henko detergent)
again. These encourage the customers to use the product or service and make them brand loyal.

Components of Sales Promotion:

Sales promotion has two components consumer promotion and trade promotion :
1. Consumer Sales Promotion Methods:
Consumer promotion is for the common customer, this promotion is supported by
advertisements, publicity, direct selling etc. This type of sales promotion is targeted at the end
consumers. Customer sales promotion is a “pull strategy” and encourages the customers to make
a purchase.
i. Price-Off Promotions:
It means offering product at lower than its normal price. Company offers either a discount on the
normal selling price of the product or more of the product at the same price. This type of
promotion must be used with care as the increase in sales is gained at the cost of a loss in the
profit. It attracts non users and act as an effective tool to counter competition.
ii. Coupons:
It is a method of offering a discount offering. Coupons are the most widely used customer sales
promotion technique. A coupon is a certificate that offers a price reduction for some specified
items to the holder. Coupons are distributed with purchase of a product, magazines, newspapers,
etc.
A few examples of coupon distribution can be coupon pasted on a package, or placed inside a
package to encourage repeat purchase. Coupon books are sent out in newspapers, or offered with
the purchase of an item in a given time frame.
iii. Premiums:
Marketers can offer an article of merchandise as an incentive in order to sell product or service
these are known as premiums, as the customer gets something in addition to the main purchase.
For example, if a customer buys toothpaste, he gets a toothbrush free. Premiums are of different
types like packed premium, banded premium, personality premium and container premium.
iv. Free Samples:
Offering free gifts or samples is the most expensive form of sales promotion. Marketers use this
technique to increase their sales volume in the early stages of the product life cycle. It means
offering a small quantity of a product free in order to persuade customer to try the product.
v. Money Refund and Rebates:
In case of money refund, the customer receives a specific amount of money (refund) after he
submits a proof of purchase to the manufacturer. Manufacturers devise the strategy such that the
customer qualifies for a refund only when he makes multiple purchases. It is a kind of offer of a
refund of money to customer for mailing in a proof of purchase of a particular product, it induce
trial from primary users and motivate several product purchase.
vi. Frequent User Incentives:
Repeat purchases may be stimulated by frequent user incentives. Hence, firms offer incentive
schemes to reward their loyal customers. The best example of this is the frequent flyer scheme
offered by airlines.
vii. Consumer Contest:
In this method of sales promotion, customers take part in small competitions on the basis of their
creative and analytical skills. Customers are invited to compete on the basis of creative skill,
such contests create brand awareness and stimulate interest in the brand, and it acquaints
consumers with brand usage and benefit.
viii. Trade Shows:
A group of retailers or manufacturers conduct exhibitions and trade shows to make the customer
aware of the products offered by various firms. Industrial shows and annual industrial exhibition,
exhibition of home appliances, consumer goods or gym equipment, etc. are examples of this type
of sales promotion.
2. Trader’s Sales Promotion Methods:
Trade promotion is not advertised and publicised it is for the channel members, company’s offers
are for dealer, distributors, retailers and agents only main purpose is to increase sales by offering
incentives to them. It is a “push strategy” and encourages the channel members to stock the
product. This form of promotion is usually not advertised, as it is an internal affair between the
company and its distribution network partners.
a. Trade Buying Allowance:
In this method there is temporary price reduction and reimbursement of expenses incurred by the
dealers in full or in part. Buying allowance is a temporary price reduction offered to the retailer
for purchasing specific quantity/units of the product. Such an offer acts as an incentive to
stimulate short-term profit of the retailer and promote new products for the company. It
encourages trade cooperation and stimulates repurchase.
b. Buyback Allowance:
In this method, intermediaries are offered a monetary incentive for each additional unit
purchased after the initial deal. This method aims at stimulating the channel members to
purchase additional quantities of stock that is over and above the normal stock, as the monetary
incentive they receive is proportional to the amount of additional stock they purchase.
c. Merchandise Allowance:
It is an allowance to trader for providing desired sales promotion and product display.
Middlemen are usually required to show the proof of the advertisement carried out by them.
d. Free Merchandise Schemes:
In this sales promotion technique, an additional amount of the product is offered without any
additional cost, as an incentive to purchase a minimum quantity.
e. Point-of-Purchase (POP) Displays:
POP displays include window displays, wall displays, display racks, danglers, balloons, outside
signs, etc. These items attract the attention of a customer and inform him about the product.
f. Dealer Gift:
It is a reward or gift which is offer of useful articles and attractive gift to dealers for personal,
family or office use. Retailers obtain gifts only when they buy specific quantities of goods or
fulfill a given sales target. Marketers use this technique when they use new distributors or they
want to push products to retailers. For example – a silver tray to display a product. When the
event is over, the retailer is allowed to keep the silver tray.
g. Premiums:
When an additional compensation is offered to trader for pushing additional product in market,
this method is used to push a specific product or product line.
Need and Importance of Sales Promotion:
Sales promotion acts as a bridge between advertising and personal selling. Due to the adversity
of markets, the importance of sales promotion has increased tremendously. Sales promotion
helps remove the consumer’s dissatisfaction about a particular product, manufacturer, and create
brand-image in the minds of the consumers and the users.
Sales promotional devices are the only promotional devices available at the point-of-purchase.
An advertising medium reaches the prospects at their homes, offices, etc. and may soon be
forgotten. The sales promotional devices at the point-of-purchase stimulate the customers to
make purchase promptly on the spot.
Business firms use promotional tools to achieve the following benefits:
(i) Attracting Attention:
The first aim of sales promotion is to attract the attention of the prospective buyers and inform
them about the availability, characteristics and uses of a particular product.
(ii) Highlighting Utility of Product:
Promotion helps in letting the people know about the utility of the new products. It also tells
them how the concerned products will be helpful in satisfying their specific demands.
(iii) Stimulation of Demand of New Product:
Promotional activities are used to create interest in the new product and to persuade people to
buy the same. This helps in launching the new product.
(iv) Product Differentiation:
Promotion helps in differentiating a particular product of the firm from the competing products
of other firms. A firm can also use data revealing how its product compares with the other
products.
(v) Synergy in Promotional Activities:
Sales promotion activities supplement personal selling and advertising efforts of the firm. They
add to the overall effectiveness of the firm’s promotional activities.
(vi) Stabilisation of Sales Volume:
In the modern age of competition, it is an important purpose of promotion to help in stabilising
sales volume by reassuring the customers about the quality and price of the product. It is possible
that a customer using a particular brand, may buy another because the other brand is promoted in
an effective manner.
(vii) Performance Appraisal or Marketing Control:
The management of a company can keep an effective check on the results achieved through sales
promotion schemes, because it is in a position to analyse the costs incurred and the benefits
derived.
Planning Sales Promotion:
Proper planning is essential for the success of promotion plan as it involve high investment on
promotion products and execution of promotion activities. With growing competition at the
market place and the need to release full benefit of sales promotion, it requires an appropriate
approach according to market conditions and nature of product.
The following steps are suggested for effective planning and management of the sales promotion
function:
Step one is to assess and analysis of the present situation of the brand in terms of market share,
major competitors and brand performance. This benchmark should then be related to the market
size and the potential estimated in market. It will now pave the way for determining the roles of
sales promotion in desired change in the market share of the brand. The outcome of this exercise
will be the availability of desired information to set measurable an attempt and goals.
Second step deals with the identification of the alternative schemes, and the selection of the
most appropriate sales promotional schemes, these schemes should match with the budget.
Third step relates is to incorporating creativity into the scheme to be offered. This is making the
scheme attractive and challenging form the view point of this target group segment.
Fourth step is to ensure the legal validity of the sales promotions schemes to be offered for
customers and traders. Promotional offers should not violate the land of law.
Fifth step is concerned with primary decision relating to timing and duration of the schemes to
be offered locating, selection of dealers and convictions of the trade and sales force about the
suitability of the scheme. It will be useful in determination of sales quota and sales targets for
middlemen.
Sixth step cover the development and evolution criteria in relation to sales to be achieved cost
effectiveness and turnover of promotion. It is a process of evaluation cost and output of sales
promotion methods.
Seventh step relates to monitoring the offer, collection of the relevant data and for the future use
as well as mid period corrections in promotion methods.
Eighth step involves evaluation of effectiveness of sales promotion in the context of the goals.
Efforts must also be put into perfect the measurement, the methodology for evaluation and
documentation of corporate experiences on sales promotion the errors in the existing system,
corrections in procedures and the mishaps that occurred ultimately to help in improving the skills
of managing the sales promotion function.
Types of Sales Promotion Programs:
Sales promotional activities may broadly be classified into the following:
(i) Consumers sales promotion program

(ii) Dealers sales promotion program

(i) Consumers Sales Promotion Program:

Sales promotion directed towards the consumers may be conducted either to increase the
consumer’s knowledge of the product regarding its use or it may be conducted to attract new
customers. In some cases, this type of programme is also conducted to retaliate against a
competitors’ sales activities.
In some cases, this type of sales promotional programme becomes necessary in view of seasonal
decline in sales. For example, woolens are put on discount at January-end each year, the end of
the winter season.
In case of consumers sales promotion programme, an attempt is made to reach the consumer at
his home or at a retail store. The techniques of promotion used are-free samples, contests,
coupons, demonstrations, price reductions, counter- display cards, etc. Free samples are
distributed among the prospects to arouse interest.
Sales contests are conducted to attract new customers or to introduce new products. For this
purpose, an entry form is designed and the consumer is asked to forward the entry form along
with the cash memo of the product or wrappers, foils, etc.
In the demonstration method, the technical experts or sale demonstrators are sent to various
customers to induce them to buy the product. This technique is used by Real Value (fire-fighting
equipments), Birla-Yamaha (petrol and diesel generators), etc. Sometimes, coupons are
introduced either through press advertising or through the package of the product itself, which
induce the consumer to buy the product at a concessional price.
(ii) Dealers Sales Promotion Program:
The products are often sold through retailers and wholesalers. In such cases, promotional
activities are conducted to induce the dealers to keep a large stock with them. These activities
might include extra cash or trade discount on the basis of orders placed. They are also known as
Trade Promotion.
Role of Retail Stores:
Retailer takes many marketing decisions, tries to find new marketing strategies to attract and
hold customers. This is achieved by providing special varieties of goods (Liberty showrooms at
Connaught Place and other places in Delhi provide different varieties, shapes, styles, colours,
etc.) by offering better customer service (take back goods, if not satisfied, free home delivery,
order-on-phone, credit facilities, etc.) and by providing personalised services.
The retailer takes decisions concerning the target customer, services, ambience within outlet, and
the decisions concerning price, place and promotion. Reputed retail stores, use timely sales
promotion tactics like sales during off seasons two clearance or special prices and incentives
(like buy two get one- free, credit cards accepted during sales), samples for introducing new
products (to sell their own brand of tea), Gifts based on a number of visits, point of purchase
displays, or visiting celebrities. Thus, retails stores try to focus customer attraction by carrying
out sales promotion techniques.
Techniques of Sales Promotion:
The techniques of sales promotion used by business houses are discussed below:
1. Distribution of Samples:
Many big businessmen distribute free samples of their products to the selected people in order to
popularise their products. Distribution of samples is popular in case of books, drugs, cosmetics,
perfumes and other similar products. As the distribution of samples is very costly, this system is
confined to those products of small value which have often repeated sales.
2. Rebate or Price-Off Offer:
In order to increase sale, many producers introduce price off offer to the customers. Under this,
the product is offered at a price lower than the normal price. For example, during off season
(winter), ceiling fans, coolers and refrigerators may be offered at 20 to 30% off price.
Rebate offer is given for a limited period only, for example, Coca cola offered 2 litre bottle at Rs.
35 only during winter 2009. Khadi Gram Udyog offers rebates on Khadi cloth and readymades to
coincide with the month of Gandhi Jayanti every year.
3. Partial Refund:
A firm may use the strategy of refunding a part of the price paid by the customer on the
production of some proof of purchase of its product. For instance, the buyer of two cakes of a
branded soap may be refunded Rs. 5 on returning the empty packages to the dealer.
4. Discount Coupons:
A discount coupon is a certificate that entitles its holder to a specified saving on the purchase of
a specified product. Coupons may be issued by the manufacturers either directly by mail through
sales-force or through the dealers. The coupons are also issued through newspapers and
magazines. The holders of coupons can go to the retailers and get the product at a cheaper price.
The retailers are reimbursed by the manufacturer for the value of coupon redeemed and also paid
a small percentage to cover handling cost. But many retailers do not patronise this method
because it involves financial and accounting problems for them.
5. Packaged Premium:
Under this, the seller offers premium to the buyer by way of supplying a gift along with the
product or inside the product package. Premium on sales helps the salesman to make effective
presentation, stimulate sale in a particular area, lead to enlistment of new customers and have the
way for introducing new brands in the market. Premiums are generally given in the case of
customer convenience goods such as packed tea leaves, blades, tooth-pastes and toilet soaps.
6. Container Premium:
Several firms use container premium to push the sale of their products. For instance, Taj Mahal
tea leaves, Ariel detergent powder, Bournvita, Kissan jams, etc. are made available in special
containers which could be reused in kitchens after the product has been consumed. The reusable
containers for packaging often have special appeal to the consumers who don’t have to pay
anything extra for the product.
7. Contests:
There may be consumers’ contests, salesman’s contests and dealers’ contests. Contests for
salesman and dealers are intended for inducing them to devote greater efforts or for obtaining
new sales idea in the task of sales promotion.
Contests for consumers may centre around writing a slogan on the product. Such slogan centres
around the questions as to the liking of a customer for the product, or formulation of new
advertising idea for the product. Such contests are held through radio, T.V., newspapers,
magazines, etc.
8. Public Relations:
Public relations activities strive for creating a good image of the enterprise in the eyes of the
customers and the society. These activities are not aimed at immediate demand creation. It is
very common that big business enterprises convey their greetings and thanks to the people
through newspapers and other media.
9. Free Gift:
The customer does not get any benefit at the time of purchase, rather he gets it through mail. For
this he has to send the proof of purchase (e.g., cash memo and wrapper) to the manufacturer to
claim the gift which might be a diary or book or any other item. The gift is sent by the
manufacturer by mail or through courier.
10. Exchange Offer:
It means exchange of an old product with the new one after payment of the exchange price fixed
by the manufacturer. Such offers are very common these days in case of electric irons, TVs,
refrigerators, scooters, gas stoves, washing machines, etc.
11. Product Combination or Gift:
It refers to giving a free gift on purchase of a product. Generally, the free gift is related to the
product but it is not necessary. For example, Mug free with Bournvita, Toothbrush free with
Toothpaste, DVD free with TV, Vacuum cleaner free Fridge, etc.

12. Instant Draws and Assured Gifts:

Some sectors offer instant draws and assured gifts to their customers when they make purchases.
The scheme may be like – “Scratch a card (or burst a cracker) and instantly win a car, A.C.,
fridge, T.V., computer or electric iron on the purchase of a T.V.”

13. Full Finance @ 0%:

Manufacturers of durables like bikes, T.V., A.C., etc. offer easy financing schemes even at 0%
rate of interest e.g., “Pay Rs. 10,000 in cash and Rs. 30,000 in 12 equal instalments of 2,500 each
by post-dated cheques and get a bike on the spot.” This tool of promotion misleads the customers
and so should be avoided by the marketers.
8. Sales Promotion Tools and Programmes:
Sales promotion techniques are known as promotion tools and the mode of their application is
known as sales programme.
These tools and programmes are divided under two heads:
1. Tools and programmes for consumer sales promotion.
2. Tools and programmes for dealer/distributor sales promotion
1. Tools and Programmes for Consumer Sales Promotion:
i. Sample:
Also known as consumer sample or free samples and given to consumers to introduce a new
product or to expand the market. The consumers are expected to be convinced to use the product.
ii. Demonstrations or Instructions:
These are instructions given to aware the consumers about using the product. This method may
be used in products like washing machine.
iii. Coupon:
It is a certificate that reduces the price. When a buyer gives a coupon to the dealer or retailer he
gets the product at lower price. It gives expected result.
iv. Money-Refund Orders:
The technique indicates refund of full purchase price if the buyer so wants. It is helpful in the
introduction of a new product. Refund offer creates additional interest and increases sales
considerably. It is a good device for creating new user and to strengthen the brand loyalty.
v. Premium (Gift) Offers:
These are temporary price reductions, which appeal to bargain instinct. Towels, dinner ware,
hair-brushes, key-chains, artificial flowers, ball pens, toilet soaps, bathing soaps, blades, are
given as in-pack premiums. BUY ONE GET ONE, BUY TWO GET ONE FREE are the usual
offers made to the customers to appeal them.
vi. Price-Off:
The price off label is printed on the package that is a certain amount is reduced from the actual
price to woo the customers. It gives a temporary discount to the consumers.
vii. Contests or Quizzes:
These are held to stimulate consumer’s interest in the product. In these contests, participants
compete for prizes on the basis of their skill or creative ideas. In this type of sales promotion,
prizes are offered in kinds (especially the products of the company) and sometimes a payment is
given to the participants.
viii. Trading Stamps:
Trading or Bonus stamps are issued by retailers to customers who buy goods from there. The
number of stamp given to a buyer depends upon the amount of purchases made by him. Stamps
are issued at predetermined percent rate of the purchase amount.
These stamps are given free of charge and the customers can redeem them to obtain products out
of the specified list. This technique induces customer to buy their requirements from the retailers
who offer such stamps. The purpose is to increase customer loyalty.
ix. Fairs and Exhibitions:
Trade shows, fashion shows or parades, fairs and exhibitions are important technique/tools of
sales promotion. They provide a forum for the exhibitions or demonstration of products. Free
literature can be distributed to introduce the firm and its products to the public.
Fairs and exhibitions are organized usually by big firms or trade associations. At these fairs and
exhibitions, business firms are allotted stalls wherein they display their products and attract the
customers through gifts, special concessions and free demonstrations of technical and specialty
products.
x. Public Relations Activities:
These include greetings or thanks in newspapers, donating space for noble causes, offer of
Privileged Citizen Card, etc. Their purpose is not to create immediate demand or to increase
sales. They are designed to create a good image of the firm in the society.
xi. Exchange Scheme:
This technique offers to exchange the old product with new one in payment of a fixed amount
which is less than the original price. For example, exchange of old Black & White Television for
Colour Television by paying rupees 8000 only (original price is rupees 10000) was offered by a
particular producer of colour TV sets.
2. Tools and Programmes for Dealers/Distributors Sales Promotion:
i. Free Display:
There is provision of free display of material either at the point of purchase (POP) or at the point
of sale (POS), depending on one’s view point. Display reaches consumers when they are buying
and actually spending their money.
ii. Retail Demonstrations:
These are arranged by manufactures for preparing and distributing the products as a retail
sample, for example, Nescafe Instant Coffee was served to consumers for trying the sample on
the spot of demonstration regarding the method of using the product.
iii. Trade Deals:
These are offered to encourage retailers to give additional selling support to the product, e.g.,
tooth paste sold with 30% to 40% margin.
iv. Buying Allowance:
Sellers give buying allowance of a certain amount of money for a product bought.
v. Buy-Back Allowance:
It is offered to encourage repurchase of a product immediately after another trade deal. A buy
back is a resale opportunity.
vi. Advertising and Display Allowance:
These are also offered to retailers to popularise the product and brand name of the manufacturer.
vii. Contests:
Sales contests are held for salesmen. These are usually aimed at increasing the performance of
the sales persons.
viii. Dealer Loader:
A gift for an order is a premium given to the retailer for buying certain quantities of goods or for
special display done by the retailer.
ix. Training for Salesmen:
Periodical training programmes are conducted by dealers and distributors for salesmen to give
them a better knowledge of a product and its usage. Dealer sales promotion provides the selling
devices. Sales promotion devices at the point of purchase inform, remind, and stimulate buyers
to purchase products.
People who see these devices are in a buying mood and thus they can be easily persuaded to buy
those products. Tell tags are informative labels affixed on the product, describing in detail the
features of the product and its unique selling points. Counter, top racks, posters, mechanised
signs are other point-of purchase displays.
Benefits of Sales Promotion:
(i) Creates differentiation – When you launch a new product or ask customers to engage with
your business in a new way, this sets you apart from your competition. Promotion planning
compels you to identify something new or different that offers value to your customers;
(ii) Creates new content and communication opportunities – One of the easiest way to create new
content for your customers is to create news by using sales promotion.
(iii) Creates upsell and cross sell opportunities – When you package or bundle products around a
theme or solution, you can often generate sales of multiple items rather than a single item.
(iv) Drives customer decision making – Limited availability offers can create a sense of scarcity
in your customers that get them to act. If you can add sampling of your promotional item to the
mix, you can create compelling reasons to buy.
(v) Creates word-of-mouth opportunities – Promotions can often get your regular customers a
new reason to be surprised and delighted by your business which gets them to talk about your
product to their friends;
(vi) Creates training opportunities for staff – Promotions give a chance to train, prepare and re-
engage the sales staff in what’s new in the business;
(vii) Creates testing opportunities – Promotion gives a limited time window to test new ideas and
new products and to measure them. This will help to figure out whether they warrant additional
investment of time and money to make them permanent products or services;
(viii) Grows revenue – Sales promotions are a great way to build year-over-year and month-over-
month revenue growth.
Limitations of Sales Promotion:
Sales promotion activities are often criticised on the following grounds:
(i) No Real Incentives:
The incentives offered through sales promotion schemes are fictional, and not real. It is said that
the manufacturer will realise the cost of these incentives by raising the price of goods.
(ii) Shoddy Products are Passed-off:
Only products which are lacking in quality, or are not likely to be favoured by consumers,
require sales promotion efforts.
(iii) Short Term Perspective:
The sales promotion schemes are carried out during particular seasons and not on a permanent
basis; the results achieved through them are generally short-lived. As soon as the incentives
offered under such schemes are withdrawn, the benefit in terms of increased sales may also
vanish.
(iv) Switching of Demand:
Sales promotion shifts demand from one brand to another. It does not create new demand.
(v) Reflection of Crisis:
Frequent use of sales promotion activities may lead consumers to think that the product is of
inferior quality. They may not, therefore, prefer to buy such products.

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UNIT II ADVERTISING MEDIA, TYPES OF MEDIA, MEDIA PLANNING,
ADVERTISING AGENCIES AND CLIENT RELATIONSHIP
Media
 The plural of medium, are means of communication
• Derived from the Latin word ―medius‖ middle(―between‖), the term refers to anything
that carries information between a source and a receiver.
• Is a mean of transmitting the message, thought opinion and view point.
• Its purpose is to facilitate communication and learning.
Advertising media means a media where advertisements can be placed. Media can be in
print, broadcast, or in electronic format (Internet). Real life media examples would be
television, radio, magazines, newspapers, web sites, etc.
PRINT MEDIA -
VARIOUS TYPES OF MEDIA
The print media have their own charm and effectiveness. It provides ailed advertising
information. They reach quality audience in terms of) in, occupation and education. The
print media use printed letters and words, typed letters, cyclostyled circulars. They are also
known as publication media. The degree of readers' interest in the advertising content
depends the vehicle. The print media charge for advertising space, depending on column
required and the page number. The advertiser performs the job cliecking, processing,
printing and distributing. The print media have en divided into:
1. Newspapers,
2. Magazines and
3. Direct mail advertising.

NEWSPAPER
Newspapers are generally published on a daily basis. According to the recent readership
survey (NRS and IRS 1999 figures lift-r, hence both are mentioned), the total number of
major national and gional/local dailies in 12 Indian languages and English is 117 (IRS), 96
(NKS). Maximum number of dailies is in English 22 (IRS), 18 (NRS). Secondary figure of
dailies is in Hindi, numbering 26 (IRS), 23 (NRS). In the regional languages, Marathi and
Guajarati dailies, have the largest number —(I RS), 15 (NRS), and 14 (IRS), 11 (NRS)
respectively.
CLASSIFICATION OF NEWSPAPERS ON THE BASIS OF FREQUENCY
The newspapers are classified into two broad categories on the basis of frequency, viz.
dailies and weeklies. The dailies are published every day While the weeklies are published
once in a week. The frequency is decided On the basis of circulation. The weeklies publish
concise figures and news for the whole of the week, while the dailies publish all sorts of
news daily divvied from different sources.
Physical Size - The size may be the standard size or the tabloid size. The standard size has 8
columns to the page, i.e. 300 lines in depth, while the tabloid has 6 columns, i.e. 200 lines in
depth. The standard size is that of The Hindustan times and The Times of India, while the
tabloid is about half the standard %size-The Illustrated Weekly, Blitz, etc. Advertisers
have to bear in mind the question of size. Newspaper charge for advertising on the basis of
columns and formats. There are two basic newspaper formats, standard size and tabloid.
The Standard-size newspaper is about 22 inches deep and 143 inches wide and is divided
into six columns. The tabloid newspaper is generally about 14 inches deep and 11 inches
wide.
Specialized Audience -Some dailies and weeklies serve special-interest audiences, a fact lost
on advertisers. They general contain advertising oriented to their s audiences, and they
may have unique advertising regulations.
Supplements -Many newspapers iSSUe Supplements. The dailies issue Saturday Sunday
supplements. Some dailies issue only Sunday magazines. Re supplements are issued tw
dailies. Sometimes, the dailies issue some special! supplements, Such as Independence Day
supplement, Supplements on the, progress of a particular State or public enterprise or
trade or industry.
OTHER TYPES OF NEWSPAPERS
Most Sunday newspapers also feature a Sunday supplement magazine.' Some publish their
own supplement, such as Los Angeles Magazine of the: Los Angeles Times. Another type of
newspaper, the independent shopping guide or free community newspaper, offers
advertisers local saturation. Sometimes called pennvsavers, these shoppers offer free
distribution and extensive advertising pages targeted at essentially the same audience as
weekly newspapers— urban and suburban community readers. Readership is often high,
and the publisher uses hand delivery or direct mail to achieve maximum saturation-
OTHER CLASSIFICATION OF NEWSPAPERS
The primary role of newspapers is to deliver promptly detailed coverage of news and other
information, and incorporate interesting features for readers. Newspapers can be classified
in different ways. The following classification of newspapers is convenient.
National Newspapers -Newspapers with national circulation in India are either in English
or Hindi. Times of India, The Hindzi, Hindustan Times and others are national English
dailies. Hindustan, Nav Bharat Times and Rashtriya Sahara are Hindi national dailies.
These newspapers have editorial content with a nationwide appeal. This mainly attracts
national and regional advertisers. Among the general national level English newspapers,
Times of India has no equal. Its readership figure is 44.23 lakhs. NRS indicates that
95.75% TOI readers are urban and only 4.25% are rural.
Daily Newspapers (Regional/Local) -These newspapers are published daily and in some
cases the circulation figures of these regional newspapers are much higher than national
newspapers.
Special Audience Newspapers - These newspapers are published daily and in some cases
the circulation figures of these regional newspapers are much higher than national
newspapers. For example, circulatory figure of Punjab Kesari is 57.09 lakhs, which is
more than any English national daily. They provide only brief coverage of important
national news and events.
TYPES OF NEWSPAPER ADVERTISING
Display advertising is a type of advertising that typically contains text (i.e., copy), logos,
photographs or other images, location maps, and similar items. In periodicals, display
advertising can appear on the same page as, or on the page adjacent to, general editorial
content.
Classified advertising - is a form of advertising which is particularly common in
newspapers, online and other periodicals, e.g. free ads papers or Penny savers. Classified
advertising differs from standard advertising or business models in that it allows private
individuals (not simply companies or corporate entities) to solicit sales for products and
services.
Special Advertising - Some special commodities and products are advertised under special
advertisement columns. Sometimes, a few pages are devoted only advertisements. They
are well planned and are in special color to draw the attention of readers.
Public Notices - A public notice or notice of intent is information directed to citizens of a
governmental entity regarding government-related activities. Public notices have
traditionally been published in specified governmental publications and in local
newspapers, a common source for community information. A public notice typically
possesses four major characteristics:
1. A public notice is published in a broadly available forum, such as a local
newspaper.
2. A public notice is capable of being archived in a secure and publicly available
format.
3. A public notice is capable of being accessed by all segments of society.
4. The public and the source of the notice must be able to verify that the notice was
published, and its information disseminated to the public.
Preprinted Inserts - Like magazines, newspapers carry preprinted inserts and delivers
them to the newspaper plant for insertion into a specific edition. Inserts sizes range from a
typical newspaper page to a double postcard; formats include catalogue, brochures, mail-
back devices, and perforated coupons.
General Advertising - National or general advertising refers to display advertising by
marketers of branded products or services, who sell on a national or regional level. The
objective of such ads is to help create and stimulate customer demand for the product or
service, augment re-sellers' promotional efforts and encourage them to stock marketer's
products
Local Advertising - Local advertising is often referred to as retail advertising and is used
by local business establishments, individuals and other organizations to reach the
consumers in the local market area served by the newspaper. Supermarkets, departmental
stores, retailers, banks, schools, computer education centers, and others use local display
advertising.
Some Advantages in Newspaper Advertising –
1- We can reach certain types of people by placing your ad in different sections of the
paper. People expect advertising in the newspaper. In fact, many people buy the paper
just to read the ads from the supermarket, movies or department stores.
2- Unlike advertising on TV and radio, advertising in the newspaper can be examined at
your leisure. A newspaper ad can contain details, such as prices and telephone numbers
or coupons.
3- From the advertiser's point-of-view, newspaper advertising can be convenient because
production changes can be made quickly, if necessary, and you can often insert a new
advertisement on short notice.
4- Another advantage is the large variety of ad sizes newspaper advertising offers. Even
though you may not have a lot of money in your budget, you can still place a series of
small ads, without making a sacrifice.
Disadvantages with Newspaper Advertising –
1. Newspapers usually are read once and stay in the house for just a day.
2. The print quality of newspapers isn't always the best, especially for photographs. So use
simple artwork and line drawings for best results.
3. The page size of a newspaper is fairly large and small ads can look minuscule.
4. Your ad has to compete with other ads for the reader's attention.
5. We're not assured that every person who gets the newspaper will read your ad. They
may not read the section you advertised in, or they may simply have skipped the page
because there wasn't any interesting news on it.
Rate Card - Like the magazine rate card, the newspaper rate card lists advertising rates,
mechanical and copy requirements, deadlines, and other information Because rates vary
greatly, advertisers should calculate which papers deliver the most readers for their money,
and weigh that information against that readership.
Local Versus National Rates - Most newspapers charge local and national advertisers
different rates. The national rate averages 75 percent higher, but some papers charge as
much as 254 percent more. Newspapers attribute higher rates to the added costs of serving
national advertisers. For instance, an ad agency usually places national advertising and
receives a 15 percent commission from the paper. If the advertising comes from another
city or state, then additional costs, such as long- distance telephone calls, are involved.
Flat Rates and Discount Rates - Many national papers charge flat rates, which means they
allow no discounts; a few newspapers offer a single flat rate to both national and local
advertisers.
SOURCES OF PRINT MEDIA INFORMATION
Audit Bureau of Circulations (ABC) was formed in 1914 to verify circulation and other
marketing data on magazines and newspapers. Each publication submits a semiannual
statement, which is checked by specially trained ABC field auditors. The publisher supplies
data on paid circulation (for a specified period) for its regional, metropolitan, and
demographic editions, broken down by subscription, single-copy sales, and average paid
circulation. The ABC also analyses new and renewal subscriptions by price, duration, sales
channel, and type of promotion. Classified Advertising Network of India (CANT) is a
statewide affiliation of daily newspapers that reaches over 7.5 million Indians. It enables
advertisers to place classified ads in daily newspapers throughout the state easily and
inexpensively.
Magazine Publishers Association (MPA) has a total membership trade group provides the
circulation figures of all ABC merry, magazines (general and farm) from 1914 to date, with
annual fig related to population. It estimates the number of consumer mag copies sold by
year from 1943, and it lists the 100 leading magazines according to circulation.
Media mark Research Inc. (MRI) conducts personal interview determine readership
patterns. In addition to reporting the audience and readership demographics for leading
consumer magazines national newspapers, MRI publishes annual studies on the affl
market, business-purchase decision makers, and the top 10 1 markets.
Newspaper Association of India(NAI) is the promotional arm` the Indian newspaper
Publishers Association and the nation newspaper industry. The association provides its
newspaper mein with market information by conducting field research and collect case
histories. It also administers the National Newspaper Netw one-order, one-bill system.
Newspaper Space Bank (NSB) is an on-line database se through which advertisers can buy
cancelled, unsold, or reran space in major market newspapers across the country at die
discounted rates after normal closings.
Simmons Market Research Bureau (SMRB) is a respect syndicated research organization
that publishes magazine readership studies. Its annual study of media and markets
provides data o readers' purchase behavior and demographics based on person interviews.
In addition, SMRB publishes the National College S and the Simmons Teen-Age Research
Study twice a year.
Standard Rate and Data Service (SRDS) publishes New spa Rates and Data, Consumer
Magazine and Agri Media Rates and Data and Business Publication Rates and Data, as
well as other monthly directories so advertisers and their agencies don't have to obtain rate
cards for every publication.
Audience studies provides by publications. Newspapers are also offer a magazines so or
media planners many other types of statistical reports, including reader income,
demographic profiles, arid percentages of different kinds of advertising carried
----MAGAZINES ---
The second form of print media is the magazine. It offers specialized formation to a special
audience. Newspapers appeal to people in a particular locality; but magazines reach special
types of people in all qualities. Magazines are subscribed to by those people who have
certain stern, they may be interested in movies, households, sports, politics, etc.
CLASSIFICATIONS OF MAGAZINE
Content - One of the most dramatic developments in publishing has been the emergence of
magazines with special content, which has given many books goods prospects for long-term
growth. The broadest classifications Content are consumer magazines, farm magazines,
and business magazines. Each may be broken down into hundreds of categories. viz -
a) Consumer magazines - Consumer magazines serve the interests of consumer-men,
women, and children. There are specific magazines serving the interests of all types of
consumers. The Manorama, Grahsobha, Women's Era, etc. are consumer magazines.
b) Farm Publications - are directed to farmers and their families or to companies that
manufacture or sell agriculture equipment, supplies, and services: Farm Journal,
Progressive Farmer, Prairie Farmer, Successful Farming. Farm Magazines in India are not
very popular in spite of the expansion of agricultural techniques and inputs, the though
agricultural production has increased considerably.
c) Business magazines, by far the largest category, target business readers. They include
trade publications for retailers, wholesalers, and other distributors; business and industrial
magazines for business people involved in manufacturing; and professional journals for
lawyers, physicians, architects, and other professionals.
d) Audience. Magazines may be classified on the basis of editorial appeal or audience or
readers. They may be consumer magazines, farm magazines or business magazines.
Geography - On the basis of regional publications, magazines maybe divided into national
magazines, regional magazines and local magazines. Many specialized magazines have
nationwide circulation. They serve the interests of specialized people living in any part of
the country. Some magazines, such as Commerce and Industrial Times, are in demand in
foreign countries as well. The circulation of some magazines is restricted to a particular
region, community or religion. Bengali magazines have circulation only in the eastern part
of the country, while Grihsobha is popular in Northern India.
Size
It does not take a genius to figure out that magazines come in different shapes and sizes,
but it might take one to figure out how to get one ad to run in different-size magazines and
still look the same. Magazine sizes run the gamut, which makes production standardisation
an occasional nightmare. The most common magazine sizes follow :
Size Approximate size
classification Magazine of full-page ad
Large Life 4 col. x 170 lines (9.375 x 12.125 inches)
Flat Time, newsweek 3 col. x 140 lines (7 x 10 inches)
Standard National Geographic 2 col. x 119 lines (6 x 8.5 inches)
Small or Reader's Digest, 2 col.x 91 lines
Advantages of Magazines
• It offers selectivity, reproductively, Long life, possible prestige and other services.
• The advertiser can select any one specialised magazine according to his product.
• They are cheap and intensive medium of advertising.
• They reach the actual prospects who are willing to purchase the advertised goods.
• Necessary duplication and waste are avoided by the proper selection of a magazine.
• Magazine advertising can be reproduced at a later stage because the advertised content
and photo can be used at any time.
• Some magazines pay special attention to colour and printing impressions.
• Magazines are kept for a longer period and maybe used as references.
• Many magazines offer prestige advertisements. The advertisement in The' illustrated
Weekly, India Today, etc- enjoy some prestige. Magazines may. offer research possibilities,
test marketing, split-run testing and many other extra services.
Disadvantages of Magazines - Magazines are not as flexible as television and radio. They
may not be suitable for local conditions because they have a nationwide appeal Very few
magazines offer regional editions in regional languages., Magazines do not have a wide
reach as the other media.
LEAFLET AND PAMPHLETS
Pamphlets and leaflets are two common types of print publications used in advertising. The
core difference between a leaflet and a pamphlet is based on size. A pamphlet typically has
five or more pages of company or production information, whereas a leaflet is one single
page, similar to a flyer.
Size and Scope - Leaflets, pamphlets and similar types of print collateral are used to launch
new companies or products, promote special events or attract attention from new
customers. A leaflet is a quick-hitter, one-page piece that typically includes one or two key
messages and often an image. It is printed on better quality paper than a flyer. A pamphlet
is longer and provides a more thorough overview of your company and product or service
benefits.
Placement - Leaflets offer a bit more flexibility in placement. Because they are on one page,
you can post or hang a leaflet in a public place just as you would a flyer. You can also hand
leaflets out to prospects or customers or send them in the mail. Posting pamphlets isn't
practical since you need target customers to dig into the material. It is also more costly to
mail the larger-sized pamphlet.
Attention or Education - Because of the message limitations, leaflets serve the purpose of
getting attention or promoting a singular product or event. Pamphlets typically have a
broader purpose of educating customers. An insurance company might use a pamphlet to
provide prospects of an overview of various insurance products. Banks provide pamphlets
that cover various types of checking and savings accounts or loan products. You can also
provide a complete overview of your company, its mission and your philosophies.
Costs - The costs of print collateral are typically based on the volume and quality of the
paper and use of color. Therefore, you could have an exceptionally high-quality leaflet with
a higher cost than a small, lower quality pamphlet. Typically, though, a pamphlet is more
expensive because of the size and amount of paper used. You also pay an employee or
designer for development. It costs more to design a pamphlet than a leaflet because of the
complexity and content.
ELECTRONIC MEDIA
Electronic media is enjoying broader use every day with an increase in electronic devices
being made. The meaning of electronic media, as it is known in various spheres, has
changed with the passage of time. Electronic media exists today in many forms: radio,
television, videotape, audiotape, telephone, telegraph, computer file, etc.
History
• Telegraph, 1938
• Telephone, 1876
 • Radio, 1895
• Television, 1927
• Early Computer, 1942
• Photocopy Machine, 1946
• Transistor, 1947
• Computer, between 1960‘s & 1980‘s
Lancaster and Naisbitt proposed that we are approaching a paperless society, where it is
faster and less expensive to communicate through electronic channels: ``It is becoming
cheaper to handle words electronically than to handle them physically, to the point where
the physical mode is becoming too expensive for ordinary use.''
There are three traditional types of Electronic Media and a few Hybrids:
1) Television
2) Radio
3) Internet
4) Smart phones may have created a new media type.
5) Electronic display advertising, electronic streaming billboards may also be a new
hybrid
Internet, TV, Radio, arguably electronic Bill boards might qualify. Smart Phones
are a play between Phone & internet so might pass for electronic media.

Advantage
• Immediacy
• Provides information and entertainment
• Creates awareness among people.
• It develops our thoughts and ideas.
• Keeps us in touch with what is happening in our society.
• Made communication increasingly easier.
• Connect diverse people from far and near geographical location.

Disadvantage
• Noise pollution
• Decision Making
• Common diseases and complications brought by electronic media.
• Eyesight
• Exposure to radiation which is lethally harmful to human body.

OUTDOOR MEDIA
Bulletin
Bulletin Billboard ads impact our increasingly mobile population. Bulletin Billboard signs
are the perfect point-of-purchase media. Month-long presence and tremendous visibility
allow Billboard advertisements to impact commuters. Size: 14' x 48' (odd- sized Bulletins
also exist in most markets)
Wallscape
Affixed to buildings and visible from a distance, Wallscape Billboard ads provide
maximum impact, offering the high-impact advertising Billboards are known for in major
metro areas. Wallscapes vary in size, providing many creative options for your Billboard
signs. Size: Varies
Poster
Highly visible to vehicular traffic, these billboard ads bring your message to a more local
audience. Achieve dramatic impact and frequency with multiple units strategically located
to maximize your billboard advertising objectives. Size: 10'5" x 22'8"
8-Sheet
Located along primary and secondary roadways in urban areas, 8-Sheet Billboard signs
are a great medium for local businesses to drive traffic to their stores. 8-Sheet Billboard
advertisements can target neighborhoods, shops and ethnic areas. Size: 5' x 11'
Spectacular
CBS Outdoor's Spectacular consists of unique opportunities in the major downtown metro
areas and the highest traffic choke points. With units located in the top markets, these
overwhelming structures will turn your brand into a staple of the city's scenery.
Size: Varies
DIRECT MAIL
Direct mail is a way of advertising in which advertisers mail printed ads, letters or other
solicitations to large groups of consumers. Bulk-mail rates are used to lower the cost of the
mailing, and targeted mailing lists are used to maximize potential response. Direct mail is
used in many different situations, limited primarily by the imagination of the advertiser.
Stores typically use direct mail to advertise new products or to distribute coupons.
Charities typically use the it to raise money or recruit volunteers. Almost any sales pitch
can be made by direct mail.
There are four main types of direct mail. Each type of direct mail is used to sell different
types of products or services.
CATALOGS - Catalogs are a type of direct mail. Catalogs are used to present a number of
products to a single buyer. This direct mail type is often used by home-based business and
mail- order marketers.
POSTCARDS - Postcards are the second type of direct mail. Postcards can be the most
effective and the cheapest to produce. The front of the postcard has the customer's address
while the back has the advertisement. Postcards are good for a new business or a business
new to an area.
STANDARD LETTER MAILINGS - Standard Letter Mailings has the highest response
rate among all direct mail formats. This type of direct mail is also known as a self mailer.
These pieces are usually a page-length advertisement which can be folded and mailed. The
promotional message is normally on one side and folded so that the message is on the inside
facing sheet.
ALL-IN-ONE MAILERS - All-in-One Mailers are a combination of any of the above types
of direct mail. These work as combination sales messages using postcard format with letter
mailing length. These can be included in a catalog or booklet with a return card
FACTORS AFFECTING CHOICE OF MEDIA SELECTION -
1. The nature of the product
2. Potential market
3. The type of distribution strategy
4. The advertising objective
5. The type of selling message
6. The budget
7. Competitive advertising
8. Media Availability.
9. Characteristics of media.

WHAT IS MEDIA PLANNING?

I: "the process of choosing the vehicle of mass communication in which to place an

advertiser's message, purchasing that time or space, and ensuring that the advertising
message runs as purchased."
It is also a series of decisions made to answer the question, "What are the best means of
delivering advertisements to prospective purchasers of a brand or service?"
Every media plan begins with the market analysis or environmental analysis. Complete
review of internal and external factors is required to be done. At this stage media planner
try to identify answers of the following questions:
• Who is the target audience?
• What internal and external factors may influence the media plan?
• Where and when to focus the advertising efforts?
The target audience can be classified in terms of age, sex, income, occupation, and other
variables. The classification of target audience helps media planner to understand the
media consumption habit, and accordingly choose the most appropriate media or media
mix.
II. Establishing Media Objective
Media objectives describes what you want the media plan to accomplish. There are five key
media objectives that a advertiser or media planner has to consider - reach, frequency,
continuity, cost, and weight.
1. Reach - Reach refers to the number of people that will be exposed to a media vehicle at
least once during a given period of time.
2. Frequency - Frequency refers to the average number of times an individual within target
audience is exposed to a media vehicle during a given period of time.
3. Continuity - It refers to the pattern of advertisements in a media schedule. Continuity
alternatives are as follows:
 Continuous: Strategy of running campaign evenly over a period of time.
 Pulsing: Strategy of running campaign steadily over a period of time with
intermittent increase in advertising at certain intervals, as during festivals or special
occasions like Olympics or World-Cup.
 Discontinuous: Strategy of advertising heavily only at certain intervals, and no
advertising in the interim period, as in case of seasonal products.
4. Cost - It refers to the cost of different media
5. Weight - Weight refers to total advertising required during a particular period.
III Determining Media Strategies
Media strategy is determined considering the following:
1. Media Mix - From the wide variety of media vehicles, the advertiser can employ one
vehicle or mix suitable vehicles.
2. Target Market
3. Scheduling - It shows the number of advertisements, size of advertisements, and time on
which advertisements to appear.
 Seasonal Pulse: Seasonal products like cold creams follow this scheduling.
 Steady Pulse: According to this scheduling one ad is shown over a period of time,
say one ad per week or one ad per month.
 Periodic Pulse: A regular pattern is followed in such scheduling, as in case of
consumer durable, and non-durable.
 Erratic Pulse: No regular pattern is followed in such scheduling.
  Start-up Pulse: Such scheduling is followed during a new campaign or a launch of a
new product.
 Promotional Pulse: It is for short time, only for a promotional period.

4. Reach and frequency

5. Creative Aspects - Creativity in ad campaigns decides the success of the product, but to
implement this creativity firm must employ a media that supports such a strategy.
6. Flexibility - An effective media strategy requires a degree of flexibility.
7. Budget Considerations - In determining media strategy cost must be estimated and
budget must be considered.
8. Media Selection - It covers two broad decisions - selection of media class, and selection of
media vehicle within media class.
IV Implementation of Media Plan
The implementation of media plan requires media buying. Media Buying refers to buying
time and space in the selected media. Following are the steps in media buying:
• Collection of information: Media buying requires sufficient information regarding nature
of target audience, nature of target market, etc.
• Selection of Media/Media Mix: Considering the collected information and ad-budget,
media or media mix is selected which suits the requirements of both - target audience and
advertiser.
• Negotiation: Price of media is negotiated to procure media at the lowest possible price.
• Issuing Ad - copy to media: Ad-copy is issued to the media for broadcast or telecast.
• Monitoring performance of Media: Advertiser has to monitor whether the telecast or
broadcast of ad is done properly as decided.
• Payment - Finally, it is the responsibility of advertiser to make payment of media bills on
time.
V Evaluation and Follow-up
Evaluation is essential to assess the performance of any activity. Two factors are important
in evaluation of media plan:
•How successful were the strategies in achieving media objectives?
•Was the media plan successful in accomplishing advertising objective?
Successful strategies help build confidence and serve as reference for
developing media strategies in future, and failure is thoroughly analyzed to avoid mistakes
in future.
ADVERTISING AGENCY
“The work of a tailor is to collect the raw material, find matching threads, cut the cloth in
desired shape, finally stitch the cloth and deliver it to the customer.‖
Advertising Agency is just like a tailor. It creates the ads, plans how, when and where it
should be delivered and hands it over to the client. Advertising agencies are mostly not
dependent on any organizations.
These agencies take all the efforts for selling the product of the clients. They have a group
of people expert in their particular fields, thus helping the companies or organizations to
reach their target customer in an easy and simple way.
Functions of Advertising Agency
Advertising agency performs following functions:
1. Contacting Clients: Advertising agency first of all identify and contact firms which are
desirous of advertising their product or services. Ad-agency selects those firms which are
financially sound, makes quality products or services, and have efficient management.
2. Planning Advertisement: Advertising agency's next function is to plan ad for its client.
For ad planning following tasks are required to be performed by ad-agency:
 Study of client‘s product to identify its inherent qualities in relation to
competitor‘s product.
 Analysis of present and potential market for the product.
 Study of trade and economic conditions in the market.
 Study of seasonal demand of the product
 Study of competition, and competitor‘s spending on advertising.
 Knowledge of channels of distribution, their sales, operations, etc.
 Finally, formulation of advertising plan
3. Creative Function: Creative people like - the copywriters, artists, art-directors, graphic-
specialists have to perform the creative function which is most important part of all
advertising function.
4. Developing Ad-Copy: Ad-agency with the help of their writers, artists, designers,
animators, graphic-designers, and film-directors prepares and develops Ad-copy.
5. Approval of Client: Ad-copy is shown to the client for his approval
6. Media Selection and scheduling: It is very important function of ad-agency to select
appropriate media for its clients. Ad-agency has to consider various factors like- media
cost, media coverage, ad-budget, nature of product, client's needs, targeted customer, and
etc while selecting media.
7. Ad-Execution: After approval, verification, and required changes, the ad-copy is handed
to the media for ad-execution.
8. Evaluation Function: After execution, it is the responsibility of ad-agency to evaluate the
effectiveness of ad to know how beneficial the ad is for its client.
9. Marketing Function: The advertising agency also performs various marketing function
like- selecting target audience, designing products, designing packages, determining prices,
study of channel of distribution, market research, sales promotion, publicity, etc.
10. Research Function: Ad-agency performs various research functions like- research of
different media, media cost, media reach, circulation, entry of new media, information
regarding ratings, and TRP's of TV programmers, serials.
11. Accounting Function: Accounting function of ad-agency includes checking bills, making
payments, cash discounts allowed by media, collection of dues from clients, payment to
staff, payment to outside professionals like- writers, producers, models, etc
The reasons behind hiring the advertising agencies by the companies are:
 The agencies are expert in this field. They have a team of different people for
different functions like copywriters, art directors, planners, etc.
 The agencies make optimum use of these people, their experience and their
knowledge.
 They work with an objective and are very professionals.
 Hiring them leads in saving the costs up to some extent.

5 TYPES OF ADVERTISING AGENCIES.

1. Full service Agencies
 Large size agencies.
 Deals with all stages of advertisement.
 Different expert people for different departments.
 Starts work from gathering data and analyzing and ends on payment of bills to
the media people.
2. Interactive Agencies
 Modernized modes of communication are used.
 Uses online advertisements, sending personal messages on mobile phones, etc.
 The ads produced are very interactive, having very new concepts, and very
innovative.
 Creative Boutiques
 Very creative and innovative ads.
 No other function is performed other than creating actual ads.
 Small sized agencies with their own copywriters, directors, and creative people.
4. Media Buying Agencies
Buys place for advertise and sells it to the advertisers.
Sells time in which advertisement will be placed.
Schedules slots at different television channels and radio stations.
Finally supervises or checks whether the ad has been telecasted at opted time and
place or not.
5. In-House Agencies
 As good as the full service agencies.
 Big organization prefers these type of agencies which are in built and work only for
them.
 These agencies work as per the requirements of the organizations.
There are some specialized agencies which work for some special advertisements. These
types of agencies need people of special knowledge in that field. For example,
advertisements showing social messages, finance advertisements, medicine related ads, etc

CLIENT AGENCY RELATIONSHIP IN ADVERTISING

The client-agency relationship starts when a client appoints an advertising agency for
making his ad. It continues till the ad agency provides satisfactory services to him. Such a
relation should always be cordial. There should be a mutual trust, confidence and
understanding between the two parties. It is so, since, the primary objective of both sides is
same, i.e. to make a successful advertising campaign.
Lack of mutual trust will be harmful to both parties. It is, therefore, necessary to maintain
good relations between the client and ad agency as follows:
1. Meaningful two-way communication is required to maintain a friendly client-agency
relationship.
2. Both parties should take special efforts to maintain a cordial relationship.
3. The approach of give-and-take is required to keep relations over a longer period.

Mentioned below are some significant guidelines (grouped under three categories) to
maintain a cordial client-agency relationship in advertising:
1. Suggestions for both parties (Client and Ad Agency).
2. Guidelines for the Client (Advertiser), and
3. Advice to the Advertising Agency.

Suggestions for a client and advertising agency to maintain their relations:

1. There should be a mutual understanding between client and agency. Misunderstanding
or confusion, if any, between the two parties, should be resolved quickly through direct
talks.
2. The agency should work sincerely and honestly to bring a success to the client's ad
campaign.
3. Both parties should properly follow the terms and conditions of the contract.
4. Good communication must be there between client and agency. Hence, regular
meetings between them shall be arranged.
5. Both should take necessary efforts to maintain their relations friendly.
Guidelines for the client to preserve relationship with advertising agency:
1. Treat the ad agency with courtesy at all times and never hurt its ego.
2. Provide all possible information about the product to be advertised and the organization.
A well-informed ad agency will make better ads.
3. Don’t unnecessarily bargain for the fees charged by the ad agency as this may affect the
quality of work.
4. Motivate the agency to do a good impactful work. Its charges such as media bills, fees
and other costs must be paid well in time. The client should not wait for the ad agency to
remind him about the payment dues.
5. Don’t change the ad agency without a proper reason. If not satisfied, always first
communicate your expectations and then wait for necessary changes to reflect.
6. The client should approve the proposals submitted by the ad agency. He must avoid
making petty arguments and only highlight those crucial relevant matters that needs
attention.
7. Give sufficient time to the agency to work on and develop an ad campaign. The client
should not pressurize it to work quickly. He should avoid giving deadlines.
8. Reduce disputes to a minimum.
9. Finalize in advance the charges for a particular ad campaign. Advice to the advertising
agency to maintain good relationship with client:
1. The advertising agency should do a smart and hard work to bring success to the client's
ad campaign.
2. It should make a good advertising plan and must implement it efficiently and effectively.
However, first it must get the approval from the client.
3. It is the duty of the account executive of the agency to keep his customer happy and
satisfied.
4. It should not charge client unreasonably high rates.
5. It should not make ads for client's competitor.
6. It should get all the information from the market that will help to create better ads.
7. Discuss the ad fees with the client in advance to avoid disputes.
8. Disclose to the client the names of the team members (employees) that are working on his
ad campaign.
9. Inform the client about changes, if any, happening within the agency.
10. Never hurt client's ego. Agency should always provide timely services to him and try its
best to satisfy him.
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UNIT III ADVERTISING BUDGET, FACTORS AFFECTING ADVERTISING
EXPENDITURE, ETHICS AND CODE OF ADVERTISING
THE ADVERTISING BUDGET
Determining the total appropriation allocated to advertising is not an easy task, nor is it
always done at the end of the advertising plan. Often a dollar amount, say $ 370,000 is
budgeted for advertising during the budget planning process (just before the end of the
fiscal year). The amount could be totally arbitrary, based on the opinion of the marketing
vice president or the amount the advertising manager was able to beg, borrow or steal.
In addition, dollar allocation usually is a political process. Companies led by financial types
are unlikely to give much money to advertising and will require the advertising manager to
justify every penny. Companies led by marketing or advertising types are likely to be
generous to advertising and will view the cost as a long-term investment.
Although the appropriation and budgeting process relies on numerical information, the
process is more art than science. It is often on educated guesses, tradition, or the financial
condition of the company. It is also in constant flux; that is if a campaign seems to be
working, it is easy to get additional dollars. The opposite is also true: If the company has a
financial downturn, advertising will probably take the hit.
The budget is a critical part of planning an advertising campaign. A $50,000 budget will
only stretch so far and probably will not be enough to cover the costs of television
advertising in most markets. The budget also determines how many targets and multiple
campaign plans a company or brand can support. Mc Donald‘s, for instance, can support
multiple campaigns.
Certain types of advertisers – industrial and business-to-business, for example –typically
operate on smaller advertising budgets than consumer packaged-goods companies. Their
media choices and narrow targeting strategies reduce their budgets so these companies
often rely more on direct mail, trade publications, and telemarketing for their advertising.
The big budgeting question at the marketing – mix and marketing communication-mix
level is – How much should we spend? Let‘s examine five common budgeting methods to
help answer that question.
Historical Method – Historical information is the source of this common budgeting method.
A budget may simply be based on last year‘s budget with a percentage increase for
inflation or some other market place factor. Say Morris Hardware spent $12,000 on
advertising last year. It will spend $12,000 + 5% ($12,600) this year. This method, though
easy to calculate, has little to do with reaching advertising objectives.
Objective-Task Method: Bottom –UP – The objective-task method is also a common
method for determining the budget. This method looks at the objectives for each activity
and determined the cost of accomplishing each objective: What will it cost to make 50
percent of the people in the market aware of this product? How many people do we have to
reach and how many times? What would be the necessary media levels and expenses? This
methods advantage is that it develops the budget from the ground up so that objectives are
the starting point. Conversely, its results are only as good as the stated objectives and the
dollar amounts assigned to each objective.
Percentage-of-Sales Method – The percentage-of-sales method companies the total sales
with the total advertising (for marketing communication) budget during the previous year
or the average of several years to compute a percentage. This technique can also be use
across an industry to compare the expenditure of different product categories on
advertising.
For example, if a company had sales figures of $5 million last year and an advertising
budget of
$1 million, then the ratio of advertising to sale would be 20 percent. If the marketing
manager predicts sales of $6 million for next year, then the ad budget would be $1.2
million. How can we calculate the percentage of sales and apply it to a budget? Follow these
two steps –
Step – 1 = Past advertising dollars/Past sales = %of sales
Step – 2 % of sales X nest year‘s sales forecast = new advertising budget
This method has two advantages. It is simple to use and expenditure are directly related to
funds available or sold projections. However, it has several limitations. It assumes that
advertising is a result of sales rather than the cause of sales. Also, this method does not
include the possibility of diminishing returns, meaning that after a certain point additional
dollars may generate fewer and fewer sales. In short, using the percentage-of-sales method
may mean under spending when the sales opportunities are high and over spending when
the potential is low.
Competitive Methods – Budgeting often considers the competitive situation and uses
competitors‘ budgets as benchmarks. Competitive parity budgeting relates the amount
invested in advertising to the product‘s share to market. To understand this method, you
need to understand the share-of-mind concept. This concept suggests that the advertiser‘s
share-of- advertising voice-that is, the advertiser‘s media presence – affects the share of
attention the brand will receive, and that, in turn affects the market share the brand can
obtain. Here‘s a depiction of these relationships –
Share of media voice = Share of consumer mind = Market share
Objective Setting & Determining Target Audience
Advertising is a method of communication with a specified objective the objectives of
advertising as explained before are grouped as sales objectives (measured in terms of
increase in sales, increase in market share and return on investment) and communication
objectives. The communication objectives of advertising can be grouped into the following
–
Building awareness (informing) – The first task of any advertising is to make the audience
appreciate that the product of service exists and to explain exactly what it is
Creating favourable attitudes (persuasion) – The next stage and the one that preoccupies
most advertising, is to create the favourable attitude to the brand which will eventually
lead the consumers to switch their purchasing pattern.
Maintenance of loyalty (reinforcement) – One of the tasks which is often forgotten is that
of maintaining loyalty of existing customers who will almost always represent the main
source of future sales.
Some of the broad advertising goals are explained as per the following –
1. Launch of new products and services – In a saturated market, the introduction of new
products and brands can giv3e the seller a tremendous opportunity for increasing his sales.
In the case of innovative products (totally new to the market) such as Laptop Computers, a
great deal of advertising has to be done over an extended period of time to make people
aware of ―what the product is‖ and what is does‖ and ―How the customers would find it
useful.‖
2. Expansion of the Market to include the New Users – Advertising can be used to tap a
new segment of the market, hitherto left unexplored. For example TV and video Camera
manufacturers who have been concentrating on domestic users and professional can direct
their advertising to the government institutions and large organization for closed circuit
TV networks, security systems and educational purposes.
3. Announcement of a Product Modification – For such advertising, generally, the terms
―new‖, improve‖, ―Excel‖ etc. is used as prefixes to the brand name. for example, ―Surf
Excel‖ gives the impression of an advanced detergent powder, although there may be no
tangible difference between the earlier brand and the new one.
4. Announcement of a Special Offer – Because of competition, slack season, declining sales,
etc, and advertising is used to make a special offer. For example, Colgate Dental Cream
campaign about 20% extra was to increase volumes through a sales promotion campaign.
Hotels offer special rates during off-season.
5. To Announce Location of Stockiest and Dealers – To support dealers, to encourage
selling of stock and to urge action on the part of readers, space may be taken to list the
names and addresses of stockiest and dealers.
6. To Educate Customers – Advertisement of this type is ―informative‖ rather than
persuasive‖. This technique can be used to show new users for a well-established product. It
can also be used to educate the people about an improved product e.g. Pearl odor free jars
and bottles.
7. Reminder Campaigns – This type of advertising is useful for products, which have a high
rate of repeat purchase, or those products, which are bought frequently e.g., blades,
cigarettes, soft drink, etc.
8. To sought Dealer Cooperation and Motivation – A successful retail trader depends upon
quick turnover so that his capital can be reused as many times as possible. Advertisers send
―display‖ material to dealers for their shop, apart from helping the retailer with local
advertising.
9. To create Brand Preference – This type of advertising does two things – (i) it creates a
brand image or personality (ii) It tells the target audience why Brand X is better than
Brand Y.
10. Communication objective.
Defining Advertising Objective you must proceed from –
a. The Product and its virtues
b. The competition
c. The segment of the Market aimed at all of which should be set down in the
marketing objective.
Sept I – Define the audience. Issues like Social class, income, Occupation, Value and
ambitions, Attitudes to product.
Step II – Define the stage of the communication task – What is the Specific Communication
task? Communication is a process of acting on the mind of your audience. ―We must
create a state of mind conductive to purchase.‖
Step III – Define Consumer Preference or Resistance. What do consumers like about
Brand? What do they dislike? This is where you need research into consumer attitudes.
Step IV – Define the product promise or claim
1. It must be meaningful and of value to consumer
2. It must be a distinctive – unique claim
3. It must concentrate on this unique claim or the Unique selling Proposition (USP) s
Step V – Define the Brand Image – What will be the brand‘s Personality? i.e. what
character or association does like it evoke?
After you have answered the above questions it is then that we are moving ahead where the
setting of objectives are concerned. The important thing to understand about setting
advertising objectives is that most advertisers do not set sensible ones. But then these same
advertisers are not sure if their advertising is paying off either.
Factors affecting advertising expenditure in a company –
1. Location
2. Type of advertising-creative-expenses
3. Ad-agency CM house-outsource
4. Target audience
5. Rate of Media –Max circulation ex-newspaper
6. Media Reach & frequency
ETHICAL ASPECTS OF ADVERTISING
• Ethics are the moral standards against which behaviour is judged
• Key areas regarding ethics and advertising are –
1. Truth in advertising
2. Advertising to children
3. Advertising controversial products
• Truth in Advertising
1. Deception is making false or misleading statements
2. Puffery (commercial exaggeration) is legal
3. Cannot legislate against emotional appeals
• Advertising to Children – Issues
1. Advertising promotes superficiality and materialism in children
2. Children are inexperienced and easy prey.
 3. Persuasion to children creates child parent conflicts.
4. What does the literature say about kid‘s abilities to process persuasive
• Advertising Controversial Products
1 Critics question the ―targeting‖ of minorities.
2. Tobacco, Alcohol, gambling and lotteries are product categories of greatest
concern.
3. How does the concept of ―primary demand‖ provide insight here?
4. What does the literature say about advertising‘s impact on these product
categories?

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UNIT IV DISPLAY, CLASSIFIED, COOPERATIVE AND COMPARITIVE
ADVERTISING
1. Display Advertising – Display advertising includes copy, illustrations or photographs
headlines, coupons and other visual components. Display ads vary in size and appear in all
sections of the newspaper except page one, the editorial page, obituary page, the classified
sections and the first page of major sections. One common variation of the display ad, the
reading notice, looks like editorial matter and sometimes costs more than normal display
advertising. To prevent readers from mistaking it for editorial matter, the world
advertisement appears at the top. Retailers often run newspaper ads through cooperative
(or co-op) programs sponsored by the manufactures whose products they sell. The
manufacturer pays fully or partially to create and run the ad, which features the
manufacturer‘s product and logo along with the local retailer‘s name and address.
2. Classified Advertising – Classified ads provide a community marketplace for good,
services, and opportunities of every type-from real estate and new-car sales to employment
and business opportunities. A newspaper‘s profitability usually depends on a healthy
classified section. Classified ads usually appear under subheads that describe the class of
goods or the need the ads seek to satisfy.
Most employment, housing and car advertising is classified. To promote the use of
classified ads in the village Voice, MD & E created a series of display ads that used
humorous ―Situation Wanted‖ ads as the main visuals. Classified rates are typically based
on how many lines the ad occupies and how many times the ad runs. Some newspapers
accept classified display ads, which run in the classified section of the newspaper but
feature larger type, photos, art borders, abundant white space, and sometimes even colour.
Cooperative (co-op) advertising is an agreed-on sharing of specified advertising costs or
other promotional costs among manufacturers and retailers or analogous groups. Co-op is
an arrangement beneficial to both manufacturers and their business partners and an
excellent way to expand advertising and promotion dollars. Co-op can extend far beyond
the traditional print and broadcast media; in fact, many manufacturers now allow Internet
advertising under the guidelines of their co-op advertising programs. The list of eligible
media continues to grow, varies by manufacturer, and will be reimbursed provided it is
agreed on and specified within the manufacturer‘s plan.
Cooperative advertising is the sharing of costs for locally placed advertising between a
retailer or wholesaler and a manufacturer. Many manufacturers have a set amount of
cooperative advertising funds available per year, distributed as opportunities for
collaboration arise. Manufacturers report, however, that much of this money goes unspent,
as relatively few retailers and wholesalers pursue cooperative agreements.
Cooperative advertising can be a very powerful tool for the small business owner,
especially one with limited means to support the kind of advertising campaign which can
be vital to the survival and success of a business enterprise. The added funds from such a
cooperative agreement can improve the quality of advertising or broaden the scope of its
distribution. It can create important links between products and the small wholesaler or
retailer who handles the product for the manufacturer. Above all, it can attract customers
loyal to a certain product to a vendor whose name had not before been associated with that
product.
Cooperative advertising can take many forms, as Gail Smith explained in Industrial
Distribution: "There are many devices with which a manufacturer can assist a distributor
in product promotion, including product flyers, catalog and trade magazine ads, direct
mail flyers and direct mail campaigns, electronic data for CD-ROM, trade show booth
materials for customer appreciation/open house or sports events, and giveaway items, such
as clothing, mugs, or sports gear. Any one or combination of the above, used with a
marketing program, can effectively assist a distributor with making their customer base
aware of a product."
NON-COMMERCIAL ADVERTISING
It is sponsored by or for a charitable institution or civic group or religious or
political organization. Many noncommercial advertisements seek money and placed in the
hope of raising Funds. Others hope to change consumer behavior. So the main goals of
noncommercial Advertising are:
• Stimulate inquires for information
• Popularize social cause
• Change activity habits
• Decrease waste of resources
• Communicate political viewpoint
• Improve public attitude
• Remind people to give again.

So called word-of-mouth advertising is a person to person communication that is perceived

as being noncommercial, concerning goods or services: it is face-to-face product related
communications between and among the friends, relatives and others. Because it is
noncommercial, it is usually seen as being an unbiased source of information.
COMPARATIVE ADVERTISING
A popular method of advertisement is comparative advertising where one product/ service
is advertised by comparing them with the goods or services of another party. Such other
party is usually a competitor or the market leader of that good or service. The comparison
is made on the basis of quality, price, availability, performance, etc. with a view towards
increasing the sales of the advertiser, either by suggesting that the advertiser's product is of
the same or of a superior quality. However, such advertisements often lead to infringement
of trademarks of the competitors (as per the Trademarks Act, 1999) and promote unfair
competition.
REGULATION OF ADVERTISING IN INDIA
Opening statement: We, therefore, hold that "commercial speech" is a part of the freedom
of speech and expression guaranteed under Article 19(1) (a) of the constitution" – The
Supreme Court of India
H.G. Wells once famously said that advertising was legalized lying. This reflects the
dilemma on advertising and its effect on consumers. In an environment of zealous
competition in the foreground of a market economy, advertisements often tend to
exaggerate and misrepresent facts which ultimately affect impressionable minds. That is
precisely what all legal systems must seek to address. Several countries have enacted
comprehensive laws that govern and control advertising. Many countries in Europe restrict
domestic advertising that target children below a certain age.
Issues in Advertising
Deceptive Advertising- As advertisements aim to influence or persuade customers into
buying products that they promote, many a times advertisements illegally use false
statements and misrepresentations about their products in violation of customer’s right to
know exactly what they are purchasing.
Misleading Prices- Companies often hide or fudge prices of products/ services advertised in
order to attract a larger customer base. The prices they advertise often do not disclose
additional charges and the overall cost to the customer. Such advertisements are commonly
found in the airlines, mobile telephony industry and memberships for clubs. A common
case of such misleading pricing is the ‗end-of-season sales‘ when the prices of products are
often knocked down and advertised in the media in order to push up sales. But what such
advertisements don‘t disclose is that such knocked down/ discounted prices are actually
pushed up before providing the discount so that the profit margin of the seller on such
products remains intact.
Failure to maintain standards- At times companies/ sellers/ service providers cleverly
bypass established standards applicable to the products by adopting a different standard
which provides a sense of enhanced efficacy of the goods/ services in the mind of the
customer. This also provides unfair advantages to the seller over its competitors. Such
advertisements are often seen in advertisements that compare the products advertised
against the products of other leading brands.
Labeling issues- Labeling on products can also be misleading. They may, at times,
misrepresent or obfuscate the actual weight of the packets or adopt a different standard of
measurement contrary to the generally accepted standards. The packaging of products
may also use exotic high sounding words such as ―organic", ―eco-friendly", ―natural",
―mild" etc. without a proper explanation of the terms and such terms may even be used
for products that have nothing to do with such concepts.
Surrogate Advertisements- Whenever the advertisements for certain products like tobacco
or liquor which have adverse effect on health and are restricted or banned, the
manufacturers tend to launch new products with similar brand names. A blitzkrieg of
advertisements is launched in the media for such new products with an aim to reinforce or
sustain the banned products/ advertisements.
----------------------------------
Legal scenario in India - There is several laws in India that relate to advertising. A
snapshot of some of these enactments is provided hereunder-
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 to 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 unfair trade practices pertaining to false advertisements may be sought under
the Act ;
Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of
Trade and Commerce, Production, Supply and Distribution) Act, 2003- Section 5 of this
Act, inter alia, prohibits both direct & indirect advertisement of tobacco products in all
forms of audio, visual and print media;
Cable Television Networks (Regulations) Act, 1995 and Cable Television Networks
(Amendment) Rules, 2006- Section 6 of the Cable Television Networks (Regulations) Act,
1995 provides that no person shall transmit or re-transmit through a cable service any
advertisement unless such advertisement is in conformity with the advertisement code
prescribed under the Cable Television Networks (Amendment) Rules, 2006. However, the
aforesaid provision does not apply to programmes of foreign satellite channels which can
be received without the use of any specialized gadgets or decoder. 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 morality, decency and religious susceptibilities of the
subscribers;
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;
Drug and Magic Remedies (Objectionable Advertisement) Act, 1954- This Act purports to
regulate the advertisements of drugs in certain cases and to prohibit the advertising for
certain purposes of remedies alleged to possess magic qualities and to provide for matters
connected therewith;
Drugs and Cosmetics Act, 1940- Section 29 of the Act imposes penalty upon whoever uses
any report of a test or analysis made by the Central Drugs Laboratory or by a Government
Analyst, or any extract from such report, for the purpose of advertising any drug. The
punishment prescribed for such an offence is a fine which may extend up to five hundred
rupees and/ or imprisonment up to ten years upon subsequent conviction;
Emblems and Names (Prevention of improper use) Act, 1950- This piece of legislation
prohibits the use of any trade mark or design, any name or emblem specified in the
Schedule of the Act or any colorable imitation thereof for the purpose of any trade,
business, calling or profession without the previous permission of the Central Government;
Food Safety and Standards Act, 2006- Section 53 of this Act provides a penalty of up to Rs.
10 lakhs for false and misleading advertisements relating to the description, nature,
substance or quality of any food;
Indecent Representation of Women (Prohibition) Act, 1986- This Act is aimed at
prohibiting indecent representation of women through advertisements 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).
Prenatal Diagnostic Techniques (Regulation and Prevention of Misuse) Act, 1994-
Advertisement in any manner regarding facilities of pre-natal determination of sex
available at any genetic counseling centre, laboratory, clinic or any other place is
prohibited under this Act and has been made a punishable offence under the Act (Section
22);
Young Persons (Harmful Publications) Act, 1956- Section 3 of the Act, inter alia, imposes
penalty for advertising or making known by any means whatsoever that any harmful
publication (as defined in the Act) can be procured from or through any person;
The Representation of People Act, 1951- The display to the public of any election matter by
means of cinematograph, television or other similar apparatus in any polling area during
the period of forty-eight hours ending with the time fixed for the conclusion of the poll for
any election in the polling area is prohibited under the Act (Section 126).
Indian Penal Code, 1806- The IPC, vide an array of provisions, prohibits obscene,
defamatory publication, publication of a lottery and/ or statements creating or promoting
disharmony/ enmity in society.
REGULATORY 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 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/industries from time to time. However, the
codes are self-imposed discipline to be followed by those involved in the industry and in no
way are the codes mandatory.
AAAI – ADVERTISING AGENCIES ASSOCIATION OF INDIA
Advertising Agencies Association of India (AAAI) is the official, national organisation
of advertising agencies, formed in 1945, to promote their interests. The Association
promotes professionalism, through its founding principles, which uphold sound business
practices between Advertisers and Advertising Agencies and the various media. AAAI
today is truly representative, with a very large number of small, medium and large-sized
agencies as its members, who together account for almost 80% of the advertising business
placed in the country. It is thus recognised as the apex body of and the spokesperson for
the Advertising industry at all forums – Advertisers and Media owners and their
associations and Government.
Objectives of AAAI
• To benefit Indian consumers and to protect their interests by helping ensure that
advertising is honest and in good taste.
• To benefit Indian advertisers by promoting their sales, increasing their sales and
increasing productivity & profitability, to stimulate business and industrial activity.
• To benefit media by establishing sound business practices between advertisers and
advertising agencies and each of the various media owners.
• To benefit the nation by harnessing advertising for the good of the country, its
institutions, its citizens to co-operate with the Government in promoting its social
objectives and in the task of nation-building.
• To question advertising that is wasteful and extravagant to make it possible for the small
entrepreneur to grow through advertising and to compete with the biggest to encourage
market and media research to serve society by meeting its social responsibilities.
• To encourage the interest of young individuals in the business of communication, to assist
in education and training programmes and to provide information of benefit to members.
Non- members are also provided this service for a fee.
• To establish a common platform in building and sustaining the prestige of the advertising
profession and to serve as a spokesman against unwarranted attacks or restrictions on
advertising.
• To establish a forum where representatives of advertisers, advertising agencies, media
owners and Government can meet on mutual ground and examine problems of mutual
concern.
• To offer effective co-operation and liaison with Government officials and bodies for the
purpose of broadening their understanding of the role of advertisers, advertising and
advertising agencies.
• To co-operate with Government bodies in discussion of matters such as taxes, radio and
TV advertising, legislation, political campaign advertising, controls on pharmaceuticals,
tobacco or liquor advertising and other subjects of similar complexity and sensitivity.
• The AAAI today is truly representative, with a very large number of small, medium and
large-sized agencies as its members, who together account for almost 80% of the
advertising business placed in the country. It is thus recognized at all forums - advertisers,
media owners and associations, and even Government - as the spokesperson for the
advertising industry.
ASCI – ADVERTISING STANDARD COUNCIL OF INDIA
In India, as in several advanced economies, there is only one body for Self-Regulation in
Advertising – the ASCI, which is concerned with safeguarding the interests of consumers
whilst monitoring/guiding the commercial communications of Practitioners in Advertising
on behalf of advertisers, for advertisements carried by the Media, in their endeavors to
influence buying decisions of the Consuming Public.
The sponsors of the ASCI, who are its principal members, are firms of considerable repute
within industries in India, which comprise of advertisers, media, and advertising agencies
and other professional or ancillary services connected with advertising practice. The ASCI
is not a Government body, nor does it formulate rules for the public or for the relevant
industries.
It has adopted a Code for Self-Regulation in Advertising. It is a commitment to honest
advertising and to fair competition in the market-place. It stands for the protection of the
legitimate interests of consumers and all concerned with advertising – advertisers, media,
advertising agencies and others who help in the creation or placement of advertisements.
As the Code becomes increasingly accepted and observed pro-actively, three things will
begin to happen.
i. Fewer false, misleading claims
ii. Fewer unfair advertisements
iii. Increasing respectability

ASCI encourages the public to complain against advertisements which they consider to be
false, misleading, offensive or unfair. All of these complaints are evaluated by an
independent Consumer Complaints Council (CCC).
Objectives of ASCI:
The main objects to be pursued by the Company on its incorporation are:
• To monitor administer and promote standards of advertising practices in India with a
view to.
• Ensuring the truthfulness and honesty of representations and claims made through
advertising and safeguarding against misleading advertising.
• Ensuring that Advertising is not offensive to generally accepted norms and standards of
Public decency.
• Safeguarding against the indiscriminate use of advertising for the promotion of products
or services, which are generally regarded as hazardous to society or to individuals or which
are unacceptable to society as a whole.
• Ensuring that advertisements observe fairness in competition and the canons of generally
accepted competitive behaviour.
• To codify adopt and from time to time modify the code of advertising practices in India
and implement, administer and promote and publicize such a code.
• To provide facilities and machinery in the form of one or more Consumer Complaints
Councils having such composition and with such powers as may be prescribed from time to
time to examine complaints against advertisements in terms of the Code of Advertising
practices and report thereon.
• To give wide publicity to the Code and seek adherence to it of as many as possible of those
engaged in advertising.
• To print and publish pamphlets, leaflets, circulars or other literature or material that
may be considered desirable for the promotion of or carrying out of the objects of the
Company and disseminate it through any medium of communication
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UNIT-V ADVERTISING COPY
Meaning and Definition of Advertising Copy –
According to Otto Kleppner ― The advertisement copy refers to the reading matter that
from the text of the advertisement, whether the text consists of only one word or many
thousand words.‖ In the words of S.W. Dunn and Barban, ―The copy, regardless and
medium, is basically amplification of the headline theme or of the visualization.‖
According to Wells, Burneett and Moriarty, ―Copy is the text of an advertisement or the
words that people say in a commercial.‖
According to O Guinn, Allen, and Semenik, ―Copywriting is the process of expressing the
value and benefits a brand has to offer via writing or verbal descriptions.‖
According to George Clark , ― Copywriting is a specialized form of communication ideas
that are meant to serve the requirements of modern marketing.
Characteristics of Advertisement Copy –
1) Written or Audio-Visual Text: Advertising copy is the reading matter or spoken
material or text to be shown on TV. It includes the words, sentences, paragraph, subheads,
headlines, figures and illustration in an advertisement.
2) Advertisement Message: Advertisement copy explains the message or the central idea of
an advertisement. It is designed to convey the message to whom it is intended.
3) Focus on AIDA – The main purpose of adverting copy is to influence the attitudes and
action of buyers so that it results in more purchase by them and greater sales volumes for
the advertisers. A well designed copy call attention, creates interest, produces and leads the
prospects to action.
4) Visualization – Vision creates a copy. Visualization is an essential element of the copy,
copywriters are versatile people who have great vision. In addition to having an ear for the
right, or clever phrase, they listen to how people talk and identify the tone of voice that best
fits the target audience and advertisement need.
5) Word-oriented Creative Concept – Advertisement copy is a word-oriented creative
concept, Finding these ―magic words‖ is the responsibility of copy writers who search for
the right words to warm up a mood or soften consumer resistance.
6) Layout – An advertisement copy has its own layout. This layout is divided in display
copy and body copy (or text). Display copy includes all elements that readers see in the
their initial scanning.
7) Visual Communication – In effective advertising, it‘s not just the words that need to
communicate it‘s visual, too. And they must work together to present the creative concept.
Words and pictures accomplish different message effects. In most advertising copies the
power lies with the visual and its primary function is to get attention. In copy, visuals are
because –
a. Visuals generally are better at getting and keeping attention
b. Pictures communicate faster than words
c. Seeing believes.
d. Visuals and field easily in consumers‘mind, and
e. Visuals differentiate products
8) Appeal – Appeal is an important ingredient of advertising. Rather, it is the basic object
and soul of the copy. Copy creates an appeal to buy and to act. This appeal is created
through poetic words, evocative language, illustrations and photos, attractive design
through artistic production.
9) Considerations – An advertising copy considers –
a. The single most important thought of the target market.
b. The product features to be emphasized.
c. The benefits a sure receives from these features,
d. The media chosen for transmitting the information.
e. The suggested mood or tone for the ad,
f. The ways in which mood ad atmosphere will be achieved in the ad, and
g. The production budget for the advertisement.
10) Tight Style- Advertising copy is tight. Wells and others write, ―Every word counts
because both space and time are expensive. Ineffective words such as interesting, very. In
order to, buy now and save, introducing, nothing less than waste precious space.
11) Other features –
a. An advertising copy cab be a mix of written, audio or visual
b. It has an effective dialogue delivery
c. Writing a copy is a creative process

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Types of Advertising Copy –
1) Educational copy – The object of this copy is to educate the people properly about the
uses of a product. This copy introduces new products in the market in such a way that the
product gets a warm welcome by the consumers. This copy highlights the special features
of product, their uses, and benefits. Sometimes the new product is compared with the
existing ones. Educational copy of the advertisement may be of two types: introductory or
missionary. The introductory copy has the object to introduce the product while
missionary copy is created to propagate the existing product.
2) Institutional Copy – Institutional copy sells the name of the company or the advertise,
not the product. The object is to build the goodwill of the firm. This copy seeks to create
reputation of the firm through its philosophies, objectives and policies.
3) Reason-Why Copy – This term ‗reason-why‘was popularized by Claude Hopkins, who
believed advertising should always give consumers a reason to buy the product. With
sound reasons and arguments, this copy seeks to convince the readers about why a
particular product should be purchased.
4) Human Interest Copy – This copy makes its appeal to the emotions senses of human
beings. Emotions include the feelings like sympathy, fear, curiosity, learning, questioning,
etc. while senses are like touch, hearing, sight, taste and smell. Thus, the human interest
copy appeals more to sentiments, impulses and heart rather than to the loci and intellect.
Human interest copy can be classified into following types –
a. Fear copy – The fear copy of advertisement appeals to human sense of fear. This
copy arouses the interest to protect life and property. It creates awareness towards
the risks, dangers, hazards and perils of life by using ‗fear‘.
b. Story copy – This story copy advertisement tries to create interest in the minds of
the readers through words, dialogues and language. The experiences of some
customers with the product advertised are narrated in the copy.
c. Predicament Copy – This copy explains humourously the major benefits of
product over other competing products. Sometimes, it is prepared by using the
elements of ear story or philosophy.
5) Humourous Copy – Many advertisement copies are made more appealing by a touch of
humour. Brain Stendhal and Samuel Craig concluded the following generalizations about
humourous messages –
a. Humourous message attract attention
b. Humourous message may detrimentally affect comprehension.
c. Humour may distract the audience, yielding a reduction in counter-
argumentation.
d. Persuasion is usually no greater than that of serious appeals.
e. Humour tends to enhance source credibility.
f. A humourous context may increase liking for the source and create a positive
mood.
g. Where humour is used to reinforce attitudes the audience already accepts, it may
increase the effectiveness of the message.
6) Descriptive Copy – Most copies include some description of the product of service. When
the description becomes the major focus of the advertisement, the copy is called
descriptive. This copy is prepared when the appearance of the product or the reward it
promises needs strong emphasis I advertisement.
7) Testimonial – Dunn and Barbo write, ―Testimonials are almost as old as advertising
itself, but they are still widely used and can be quite effective.‖ This copy generally features
‗celebrities‘ or popular personalities in the advertisement who come from television, film
sports, music and other highly visible fields. Advertisers tend to prefer celebrities who are
widely known, easily recognized, well liked, and who have not endorsed a wide variety of
products.
8) Dialogue Copy – Dialogue copy, if it is well written, is interesting, convincing, and
persuasive. Dialouge must be well-written. Poor dialogue is dull. Unnatural dialogue is
unconvincing.
9) Narrative Copy – In narrative copy, the story is important. Almost everyone likes to
hear an interesting story. It is a reliable approach to communicating and advertising point.
Among the common forms of narrative copy are the short story, the picture and caption,
and comic strip.
10) Suggestive Copy – This copy tries to provide valuable suggestions to the consumers
regarding the product directly or indirectly.
a. Direct suggestive Copy – It appeals to reader directly about the product and tries
to convince them. It makes statements with reference to products. It does not
compel the readers to buy.
b. Indirect Suggestive Copy – It does not express the message or the theme to the
readers directly. The consumers are expected to understand it in their own interest.
In indirectly suggest the reader to buy the product advertised.
11) Expository copy – This copy explains facts directly. It tells everything about the
product to the consumers. It does not hide the facts. The statements about the copy are
simple and direct.
12) Scientific Copy – In this copy, the technical specifications of a product are examined.
The features and merits of the product are described in scientific terms. It provides
conviction value to the copy. Saffols-a low cholesterol edible oil makes use of a scientific
copy.
13) Topical Copy – When the copy is integrated to a recent happening or event, it is called
topical coy. Most political events, national sports, world events, parliament news, or global
events are presented in topical advertising copy. For latest events in the field of budgets or
games topical copy can be used.
14) Questioning Copy – In this copy, several questions are put forward not to seek answers
but to emphasize a certain attribute. In marketing ready-mades, Park Avenue puts a
question in advertisement: Should a grown mean‘s clothes just conceal his body or reveal
his mind? Thus, this copy can emphasize any aspect of the product by raising a question.
15) Prestige Copy – In this copy, the product is not directly advertised; rather a favourable
atmosphere is created for sale of the product. The copy is used to build an image of
product. Vimal Shirting, S. Kumars Suiting have this kind of advertising Copy. These
create an image of a successful man‘s product.
16) Comparative Copy – In this copy the advertiser‘s named product is directly compared
with one or more competitive products. Otto Kleppner has given the following conclusions
about this advertising copy –
a. The leader in a field has never embarked on such campaigns.
b. The most successful comparison ads are those comparing the advertised product
with products identical in every respect except for the specific differential features
in the ad. The stronger the proof that product are otherwise identical, the better.
c. The differences features should be a importance to the consumer.
17) Intentional Copying – Sometimes advertisers intentionally copy elements from rival
creative in the same product category in order to create the dissonance with a view to
secure competitive foothold. The idea behind it is to take away a competitive brand
advantage.

Elements, Components or Structure of Advertising Copy –

1) Headlines – The headline is the most important statement in an advertisement. The first
thing a person reads, it relates the product to the consumer‘s life. It‘s the headline‘s
responsibility to arouse the interest of readers. The headline is the word in the leading
position of the ad-the work that will be read first or are positioned to draw the most
attention. The prime function of headline are –
a. To gain immediate attention
b. To lure readers into the text
c. To select the right prospects by addressing their specific needs, wants, or interests
d. To put forth the main theme, appeal, or proposition of the ad in a few words.
e. To communicate the entire advertising message.

QUALITIES OF A GOOD ADVERTISEMENT COPY

The importance of a good advertisement copy can hardly be overemphasized. All the
planning, research and expenses would go waste if proper care is not taken in drafting an
advertisement copy that will achieve the purpose of advertising The psychological aims of
an advertisement are that public must be made –
 1) Look
2) Like
3) Learn and
4) Buy

As James Hunter puts it ―The aim of advertising copy is that it shall be seen, read the
message conveyed and then acted upon‖. An advertisement copy which fails in attracting
the attention of the prospects and creating an urge in their minds for possessing the
product will naturally be of no use through a large sum has been spent lavishly on
advertising the product by the advertiser.
A good copy of advertisement should possess the following characteristics or qualities or
values –Attention value
i) Suggestive value
ii) Memorizing value
iii) Conviction value
iv) Sentimental appeal value
v) Education value
vi) Instinctive value

i) Attention value – An advertisement copy must attract the attention of the potential
consumers. If it fails in this mission, the whole money and effort will waste though it
possesses all other values because everything else follows this. So, it must have display
value.
a. Use of pictures – Pictures have to immense display and attention value. The old
Chinese proverb ‗one seeing is worth though telling ‘photograph, if appropriately
used will not merely attract the attention of the consumer but also will tell
everything about the product.
b. Use of Display type or Heading – Uses if appropriate to headings enhance the
value of an advertisement copy to a great extent. To invite attention, the heading
should be brief and meaningful, made up of three or four words and should be
printed in emphatic bold display types. The headlines should, generally, be in the
form of a ‗slogan‘or a ‗query‘that will compel the attention of the reader.
c. Boarder etc. – Attractive boarder can be used to compel the attention of the
readers. The boarder must have distinctive like so as to separate it from the rest of
the setting. A full page advertisement with a very small matter in the centre and an
artistic or novel boarder with have a very great attention value. Underlining of key
words or an attractive arrangement of types may also catch the eyes of readers.
d. Price Quotation – Prices should not be quoted on the advertisement copy except
when they are very low as in clearance sale or special offers. But if an appeal is
 being made to high clad customers who care more for quality than price, a price
quotation should be avoided and emphasis should be laid on quality.
ii) Suggestive Value – Having attracted the attention of the reader, the next task would be a
offer a suggestion about the use and the utility of the product that may remain inscribed on
the mind of the reader even when he forget where he really say the advertisement.
iii) Memorizing Value - The copy of the advertisement should be so drafted and laid out
that the product will stick to the mind of the individual reader. Repetition of advertisement
with slogan is an effective method of creating a memorizing will have tremendous
memorizing value.
iv) Conviction Value – An advertisement copy can effective and achieve the desired end
when the suggestion contained in it is backed by convicting arguments. The advertiser
must be careful to include the statement in the advertisement copy which do not conform to
the product.
v) Sentimental Value – Sentimental play a very important role in advertising particularly
in the case of food articles. Sentiments reflect the personal feelings and attitudes of an
individual towards various things. They indicate reactions of a person in favour or against
a particular product.
vi) Educational Values – A good copy of advertisement must possess educative value
because the object of modern advertising is not merely to satisfy the existing demand but to
create future demand. So a good copy of advertisement should educate the general public
about the uses of the new product of the new uses of the same product.
vii) Instructive Appeal Value – Human thoughts and actions are guided by instincts and
indications. All that one thinks or does has its roots in one instinct or the other. Instincts
are the underlying forces which compel the men to act in certain ways. The most important
functions of an advertisement copy are to induce, persuade and motivate the prospects to
thinks well of a product and to take to its use.
a. Self-Preservation Instinct – Many of our thoughts and actions are inspired by our
anxiety to preserves our person, our health, our family and our belonging.
b. Hoarding Instinct – Banking institutions, insurance companies or other
government and non-government saving organization serve to hording instinct of
the people.
c. Parental Instinct – Parental instinct takes the form of love and affection for the
children. Those advertisers who deal in children requirements like garments, toys,
baby food etc, may promote this instinct in parents i.e., motherly feelings of women
or parental sentiments of men through their advertisement copy.
d. Self-Display Instinct – Instinct of self-display is promoted by the advertisers of
readymade clothing, women‘s dresses, jewelry etc.
 e. Something for Nothing Instinct – Everybody has vague desire to get something
without paying anything for it. This desire is, more or less, present in everybody
irrespective of the statue or income.

On the basis of the above basic instincts, the following themes or central ideas may be laid
down for advertisement copies meant to advertise different type of products –
a) Pride – This theme can be used to popularize luxury articles among riches,
the possession of which gives them a distinctive status and a feeling of pride.
b) Beauty – This theme is used in advertisement for cosmetics, perfumeries, toilet
soap etc. for men and women.
c) Health – In drugs and food products advertisement, the use of this theme is used.
d) Economy – It is central theme in advertisement of clearance sales or bargain
purchases.
e) Comfort – The advertisements for fans, electric appliances, refrigerators etc.
Generally contain this feeling of comforts.
f) Fear – Themes stressing the fear of death accidents, personal loss through
burglary, fire etc., and other untoward happening in life are generally used by
insurance companies or banking companies. The traffic police is also using this
theme in their notes of caution i.e.e, ‗Life is short, Don‘t make it shorter‘.
g) Parental Affection – All advertisement copies or product meant for children such
as toys, baby foods and dresses etc. use this feeling.
h) Patriotism – This theme may be used in advertising for those who use foreign
products.
i) Achievement – This theme is used generally by large concerns engaged in the
production of goods necessary for the development of country‘s economy.
j) Emulation and Imitation – This theme is used where people buy more not to
satisfy their genuine requirement, but as their neighbors happen to possess them.
Thus, a good advertisement copy must possess the above qualities to make it an ideal
advertisement.
Writing the Body Copy –
Advertising body copy can be written to go along with various types of creative appeals and
executions comparisons, price appeals, demonstrations, humour, dramatizations, and the
like, copywriters choose a copy style that is appropriate for the type of appeal being used
and effective for executing the creative strategy and communicating the advertiser‘s
message to the target audience.
a) Emotive – Within this kind of copy the emotions can be appealed to. The principal
emotional needs are self-assertion, sex and love, companionship, self-preservation,
acquisitiveness, curiosity, comfort and security.
b) Factual-hard-selling – This body copy uses the five-point AIDCA formula. It is the
attention, interest, desire, conviction, and action. It is very competitive, persuasive and
action promoting.
c) Factual-educational – This is still a hard-selling ad, but it will be more informative, like
the ads for the latest-model car.
d) Narrative – It is a more literary and leisurely written text. The copy is more like a story.
e) Prestige – Again, the copy may be in the narrative style, but being used mainly for public
relationship purposes.
f) Picture and Caption – This body copy is usually a series of pictures or cartoons with
captions explaining how to use the product.
g) Monologue or dialogue – Real or fictitious characters may be used to present the sales
massage. This could be testimonial advertisement with well-known personalities
expounding the merits of the product or the service.
h) Gimmick – Difficult to put over effectively because there is usually need for
concentrated reading, this style is sometimes used when a very original presentation is
required. It is more likely to be used in magazines.
i) Reader – It is headed by a statement that is an advertiser‘s announcement.
j) Testimonial – This may be in the form of a monologue, but it could be a testimonial
statement linked to normal text copy.
k) Quotation – Within this kind of body copy a famous person‘s words are quoted.
l) Back-selling – This is used to tell readers about a material ingredient or component
which is contained in a finished product, the object being to encourage its continued usage.
m) Straight-line – This explain in straightforward terms why a reader will benefit from use
of a brand.
n) Dialogue – It delivers the selling points of a message to the audience through a character.
o) Direct response – It highlights the urgency of acting immediately. This relies on sale
promotion devices.
p) Translation – It defines technical information into understandable language.
Guidelines –
Body copy for print ads has a better chance of being effective if these guidelines are
followed –
i) Use the Present tense whenever possible.
ii) Use singular nouns and verbs
iii) Use active verbs
iv) Use familiar words and phrases
v) Vary the length of sentences and paragraphs.

ESSENTIAL OF A GOOD ADVERTISING COPY

Prof. R.S. Davar has pointed the following feature and essentials of a good advertising
copy–
1) Attentive Value – Attention is the first step in the selling process. Therefore the
advertising copy should be so designed which can draw the attention of even the most
causal reader.
2) Suggestive Value – After attraction the attention of the prospects, the advertising copy
must offer a suggestion about the good uses of the product. Suggestions can be given
through rational slogans.
3) Memorising Value – The advertising copy must create an everlasting memory and vision
for the readers. Good slogans, repetitive use of advertisements, and brand names, logo, etc.
provide the considerable amount of memorizing value. Products like Surf, Lux, Dalda,
Lifeboy, Philips, Brooke Bond, etc. have become household names due to their memorizing
value.
4) Conviction Value – The advertising copy should put the convincing arguments so that it
can create customers. Simply telling that product is available is not sufficient; rather the
copy should convince the readers about everything they want to know about products.
Advertisements of Bajaj Scooter, Godrej products, Amuls, etc. are some of the good
examples having convincing value.
5) Sentimental Value – People are also guided by emotions and feeling. Personal have
individual likings, disliking and choice towards particular products. There are certain
common sentiments like patriotism, better quality, low price, aesthetic values, artistic
presentation, etc. which can be used by advertising copy to attract the readers on the basis
of emotional values.
6) Educative Value – To create demand, the customers must be educated about new
products and new uses of existing products. The copy can also help to bring changes in
taste and to create good habits by educating them. Sometimes, advertisement copy also
gives a lot of information about the firm and its achievements.
7) Instinct Appeal Value – A man has some instinct behind his every thought and action.
Instincts are the hidden forces which compel or induce consumers to act in the market. For
example, the insurance advertisement copy may appeal to the self-protection instinct of a
man. Similarly advertisement copies can be drafted for beauty and aesthetic appeal, for
luxury and convenience appeal or display sense of people.

SUGGESTED READINGS
1) MODERN ADVERTISNG MANAGEMENT- J.N JAIN /P.P.SINGH
2) ADVERTISING AND SALES MANAGEMENT – G.S. SUDHA
3) ADVERTISING MANAGEMENT – LEO BURNETT AND MORIARTHY
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