BASICS OF ADVERTISING ( 24202)

UNIT-I

Advertising: Definition, Types and Functions

Advertising is a powerful communication force and vital marketing tool helping to sell goods,
services, images, and ideas through channel of information and persuasion. It is highly visible
force in the society. Today all of us receive many advertising messages daily. Now it is
essential to the success of any type of business and industry. Furthermore, advertising
strategies are employed more and more by non-business organisation such as government,
college and universities, public service groups and characteristics. It is one of the parts of the
marketing and communication process. Advertising convince people to buy products. All
advertising contains both information and persuasion. Today we can say advertising is a
communication, marketing, public-relation, information and persuasion process. Advertising
reaches us through a channel of communication referred to as a medium. It is usually aimed at
a particular segment of the population - the target audience (Consumer and business).

Basically it is a medium of dissemination of information and persuasion. It always creates a

glamorous area. No doubt today advertising covers almost every area of the thought process
and action of society. It is considered to be a highly sophisticated communication force and
powerful marketing tool. In other words we can say that it is a complete psychological
treatment of the consumer and a very creative and glamorous area also.

Definition

The word advertising came from the Latin word' advertere' means "to turn the mind toward".

The American Marketing Association (AMA) recommends the definition, "Advertising is any
paid form of non-personal presentation and promotion of ideas, goods and services by an
identified sponsor". The AMA points out that advertising is a tool of marketing along with the
product and its packaging, price, distribution and personnel selling. Definitely advertising is
openly and over the overtly subsidized information and persuasion, and its task is to present
and promote for more than merchandise. According to this definition promotion is 'non-
personal'. It is directed "to whom it may concern". If advertising is effective, it is because the
audience is receptive to it.

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

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

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

Idea, goods and services: From this point advertising is concerned with much more than the
promotion of tangible goods. Most of the advertising is designed to help sell goods and
services. It is being used increasingly to further public interest group.
An Identified Sponsor: Advertising discloses or identifies the sources of the opinion and
ideas. According to an identified sponsor, this point distinguishes advertising from propaganda.
Propaganda attempts to present opinions and ideas in order to influence attitudes and actions.
Advertising on the other hand, disclose or identifies the source of the opinions and ideas it
present.

According to Mc Cann Erickson, Advertising is "Truth Well Told" Actually advertising is a

paid publicity and silent salesmanship. It takes known what we have to sell or what we want to
buy.

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

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

and action of people".
Canor and Wichart has given a definition in this form, "Advertising includes those visual or
oral messages in magazines, newspapers, movies and letters, over radio and television and on
transportation vehicles and outdoor signs which are paid by their sponsors and directed to
consumers for purpose of influencing their purchases and attitudes".

According to Britannica Dictionary, "A form of paid announcement interested to promote the
sale of commodity or services, to advance an idea or to bring about other effect desired by the
advertiser".
FEATURES OF ADVERTISING

1. Communication : Advertising is means of mass communication reaching the masses.

It is a non-personal communication because it is addressed to masses.
2. Information : Advertising informs the buyers about the benefits they would get when
they purchase a particular product. However, the information given should be complete
and true.
3. Persuasion : The advertiser expects to create a favourable attitude which will lead to
favourable actions. Any advertising process attempts at converting the prospects into
customers. It is thus an indirect salesmanship and essentially a persuasion technique.
4. Profit Maximisation : True advertising does not attempt at maximising profits by
increasing the cost but by promoting the sales. This way It won‟t lead to increase the
price of the product. Thus, it has a higher sales approach rather than the higher-cost
approach.
5. Non-Personal Presentation : Salesmanship is personal selling whereas advertising is
non-personal in character. Advertising is not meant for anyone individual but for all.

OBJECTIVES OF ADVERTISING

The fundamental purpose of advertising is to sell something - a product, a service or an idea. In

addition to this general objective, advertising is also used by the modern business enterprises
for certain specific objectives which are listed below:

1. To introduce a new product by creating interest for it among the prospective customers.
2. To support personal selling programme. Advertising maybe used to open customers'
doors for salesman.
3. To reach people inaccessible to salesman.
4. To enter a new market or attract a new group of customers.
5. To light competition in the market and to increase the sales as seen in the fierce
competition between Coke and Pepsi.
6. To enhance the goodwill of the enterprise by promising better quality products and
services.
7. To improve dealer relations. Advertising supports the dealers in selling the product.
 Dealers are attracted towards a product which is advertised effectively. 8. To warn the
public against imitation of an enterprise's products.

IMPORTANCE OF ADVERTISING

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

1. Promotion of Sales : It promotes the sale of goods and services by informing and
persuading the people to buy them. A good advertising campaign helps in winning new
customers both in the national as wet as in the international markets.
2. Introduction of New Product : It helps the introduction of new products in the market.
A business enterprise can introduce itself and its product to the public through
advertising. A new enterprise can't make an impact on the prospective customers
without the help of advertising. Advertising enables quick publicity in the market.
3. Creation of Good Public Image : It builds up the reputation of the advertiser.
Advertising enables a business firm to communicate its achievements in an effort to
satisfy the customers' needs. This increases the goodwill and reputation of the firm
which is necessary to fight against competition in the market.
4. Mass Production : Advertising facilitates large-scale production. Advertising
encourages production of goods in large-scale because the business firm knows that it
will be able to sell on large-scale with the help of advertising. Mass production reduces
the cost of production per unit by the economical use of various factors of production.
5. Research : Advertising stimulates research and development activities. Advertising has
become a competitive marketing activity. Every firm tries to differentiate its product
from the substitutes available in the market through advertising. This compels every
business firm to do more and more research to find new products and their new uses. If
a firm does not engage in research and development activities, it will be out of the
market in the near future.
6. Education of People : Advertising educate the people about new products and their
uses. Advertising message about the utility of a product enables the people to widen
their knowledge. It is advertising which has helped people in adopting new ways of life
and giving-up old habits. It has contributed a lot towards the betterment of the standard
of living of the society.

7. Support to Press : Advertising provides an important source of revenue to the

publishers and magazines. It enables to increase the circulation of their publication by
selling them at lower rates. People are also benefited because they get publications at
 cheaper rates. Advertising is also a source of revenue for TV network. For instance,
Doordarshan and ZeeTV insert ads before, in between and after various programmes
and earn millions of rupees through ads. Such income could be used for increasing the
quality of programmes and extending coverage.

TYPES OF ADVERTISING
Advertising is complex because so many different advertisers try to reach so many different
types of audiences. There are nine major types of advertising.

Classified ads or classified advertisements are small advertisements in a newspaper or

magazine. They are usually from a person or small company. Classified advertising is a form
of advertising which is particularly common in newspapers, online and other periodicals which
may be sold or distributed free of charge. Classified advertisements are much cheaper than
larger display advertisements used by businesses, although display advertising is more
widespread.

Non Classified / Display Ads Easily confused with classified display ads, these ads too are
more advanced than text ads, however, unlike classified display ads, non-classified ads do not
have any size limitation for the advertiser. So the full page ads you see of the new i-phone on
the front page, yes, that’s a Non-classified ad or a display ad. They are not just advanced, they
can actually be over-the-top sometimes.

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 answers
to a consumer's questions, including where to eat, where to go, or what to buy.
Effective advertising works to create a desire while offering an attractive
solution. Not every aspect of commercial advertising relates to fulfilling an
immediate need. Advertisers also strive to create name recognition, which is
commonly called branding.

Non-commercial advertising or Public Service announcements:- 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.

BRAND ADVERTISING: The most visible type of advertising is national consumer, or brand
advertising. Brand advertising focuses on the development of a long-term brand identity and
image. One of the TV commercials for World span how an ad can use humour to create brand
awareness.

RETAIL OR LOCAL ADVERTISING: A great deal of advertising focuses on retailers or

manufacturers that sell their merchandise in a restricted area. In the case of retail advertising,
the message announces facts about products that are available in nearby stores. The objectives
tend to focus on stimulating store traffic and creating a distinctive image for the retailer. Local
advertising can refer to a retailer or a manufacturer or distributor who offers products in a fairly
restricted geographic area.

POLITICAL ADVERTISING: Politicians use advertising to persuade people to vote for

them or their ideas, so it is an important part of the political process that permit candidate
advertising.

DIRECTORY ADVERTISING: Another type of advertising is called directory advertising

because people refer to it to find out how to buy a product or service. The best-known form of
directory advertising is the yellow pages, although there are many other kinds of directories
such as trade directories, organisation directories, and so forth.

DIRECT- RESPONSE ADVERTISING: Direct- response advertising can use any

advertising medium, including direct mail, but the message is different from that of national
and retail advertising in that it tries to stimulate a sale directly. The consumer can respond by
telephone or mail, and the product is delivered directly to the consumer by mail or some other
carrier. Of particular importance has been the evolution of the internet as an advertising
medium.

BUSINESS-TO-BUSINESS ADVERTISING: Business-to-business advertising includes

only messages directed at retailers, wholesalers and distributors and from industrial purchasers
and professionals such as lawyers and physicians to other businesses, but not to general
consumers. Advertisers place most business advertising in publications or professional
journals.

INSTITUTIONAL ADVERTISING: Institutional Advertising is also called corporate

advertising. These messages focus on establishing a corporate identity or winning the public
over to the organisation's point of view. Many of the Tobacco companies are running ads that
focus on the positive things they are now doing.

PUBLIC SERVICE ADVERTISING: Public Service Announcements (PSA's) communicate

a message on behalf of some good cause, such as stopping drunk driving or preventing child
abuse. These advertisements are usually created by advertising professionals free of charge and
the media often donate the space and time.
DIGITAL ADVERTISING: It is delivered to individual consumers who have access to a
computer and the Internet. advertisers use web pages, baneer ads, and e-mail to deliver their
messages. In this instance, the consumer can respond to the ad or ignore it.

ROLES OF ADVERTISING

Advertising can be explained in terms of the four roles it plays in business and in society.
Different roles of advertising can be broken down into four sub head, they are:

• The marketing role

• The communication role
• The economic role
• The societal role

THE MARKETING ROLE: The marketing role of advertising caters to the requirement of
general consumers. They focus on customer satisfaction and meeting their requirements by
providing goods and services. The marketing role is not directed to all the general public but
caters to the requirement of a certain group or ‘the target market’.

THE COMMUNICATION ROLE: A communication role in advertising focuses on mass

communication requirements that the advertisement will able to fulfil. This is a method of
informing potential customer, the launch of new products or the pass on information about the
service and good they intent to buy.

THE ECONOMIC ROLE: The economic role of advertising focuses directly with dealing the
objectives of the advertiser. Generally, the objectives of the advertiser features generation of sales
volume from an advertisement. This will help the consumer to endorse both the value as well
as benefits of the services or products advertised.

THE SOCIETAL ROLE: The final role is the societal role of advertising which is pretty
interesting. On one hand, advertising helps in the generation of trend within a society. On the
other, it is the reason for breaking of social norms which forms a formidable part of the society
to generate distinctive impact. The societal role tends to have an uncertain nature like by some
and disliked by others.

Awareness, knowledge, liking, preference, conviction and purpose are the pillars on which the
theory of advertising is based on.
FUNCTIONS OF ADVERTISING

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

It performs the following functions:

(i) Promotion of Sales: Advertising promotes the sale of goods and services by informing and
persuading the people to buy them. A good advertising campaign helps in winning customers
and generating revenues.

(ii) Introduction of New Products: Advertising helps in the introduction of new products in
the market. A business enterprise can introduce itself and its products to the public through
advertising. Advertising enables quick publicity in the market.

(iii) Support to Production System: Advertising facilitates large-scale production. The

business firm knows that it will be able to sell on a large-scale with the help of advertising.
Mass production will reduce the cost of production per unit by making possible the economical
use of various factors of production.

(iv) Increasing Standard of Living: Advertising educates the people about the products and
their uses. It is advertising which has helped people in adopting new ways of life and giving up
old habits. It has contributed a lot towards the betterment of the standard of living of the
society.
(v) Public Image: Advertising builds up the reputation of the advertiser. Advertising enables a
business firm to communicate its achievements and its efforts to satisfy the customers’ needs to
the public. This increases the goodwill and reputation of the firm.

(vi) Support to Media: Advertising sustains press. Advertising provides an important source
of revenue to the publishers of newspapers and magazines and the producers of T.V.
programmes.

AIDA MODEL by Elias St. Elmo Lewis

(Attracting Attention, Arousing interest, Building desire, Obtaining action)

Marketing communication especially advertising is meant for a group of users of products

called the target audience. After identifying the target audience we must determine the response
desire. The ultimate response desire is of course the buying of the product or service. We must
know the decision making process that leads the target audience from its present position to a
higher state of readiness to buy. The effectiveness of advertising depends upon to what extent
the advertising message is received and accepted by the target audience. The research has
identified that advertising is to be effective has to attract attention, secure interest, build desire
for the product and finally obtain action.

All advertising, obviously do not succeed on these counts. This is one sole reason behind the
great divergence between the no. of people exposed to the advertising and those who ultimately
purchased the product. At this stage, however, other elements of the Marketing Mix especially
distribution becomes crucial. Advertising communicates an idea, a message, or a brief.
Advertising would be effective only if the media audience accepts the message and is motivate
to take the required action. Several models have been developed which have specifically
identifies the sequence of events which must take place between receipts of the message and
the desire action.

ATTENTION: The layout is the most important factor that directs attention to advertising.
Typography and colours used in the layout can attract us. The size of the advertisement also
compel us to get attracted to it, contrast by white space is a good attention getter. Movement is
a vital element of getting attention; it can be physical or emotional. The position of the
advertisement also adds to its attention value. Celebrities in the advertisement, dramatization,
models selection, illustration etc. all these contribute to attract attention.

INTEREST: An ad seen does not mean ad read. Mostly people see the illustration and do not
read the copy. Here, illustrations have to work hard. They should together with headlines must
provoke further reading. The selection of the illustration and its integration to life are thus.

DESIRE: The basic purpose of advertising is to create a desire for the product and service
being advertised. Appeals are used for the motivation of people. Vivid description or copy
always helps. Buying motives, physiological or as well as psychological make people purchase
products. The copy of the advertisement must kindle these motives. There are certain barriers
here, certain reservation in the mind of customers. We have to overcome them. We have to
convince them by giving evidence, testimonials, endorsement, facts and figures on people
become prone to buy the product.

ACTION: The logical end of the desire aroused is to buy the products:

1) Products are associated with the company.

2) The message is repeated.
3) Certain immediate action appeals are used.

The attention stage is a cognitive stage. In this stage the target audience is exposed to the
message which, when received by them causes a cognitive response awareness. The interest
and desire stage are the effective stages which affect the attitude and bring about an intention to
buy. The final action stage is the behaviour stage. In practice all the ad copies do not lead the
consumer through awareness to purchase. AIDA Model suggests only the desirable qualities in
an advertising copy as a communication tool.

DAGMAR MODEL by Russell Colley (1961)

 • DAGMAR (Defining Advertising Goals for Measured Advertising Results) is much
more than a model for designing an advert, it is used to monitor and evaluate promotion
campaigns. There are three parts to the DAGMAR advertising model.

DAGMAR Step One: Defining Advertising Goals

It is important to understand that DAGMAR is aimed at setting advertising goals and not more
general marketing goals. Elements of a good advertising goal include being a written,
measurable task involving a starting point, a defined audience, and a time limit.To measure the
effectiveness of advertising a business Must know the current state before advertising starts
and then the New state after the campaign has finished. This Means surveying the target
audience to measure current awareness, comprehension and conviction. This helps to establish
realistic goals for the campaign. For example, to increase product awareness from 10% to 35%.

DAGMAR Step Two: Awareness Comprehension Conviction and Action

• The second part of the DAGMAR model attempts to explain the process customers go
through before they buy a product. The process is as follows:

• The first step in advertising is to raise awareness of the product. If customers do not
know the product exists then they will not buy it. To ensure that an advertising
campaign is effective, it is vital to identify the target audience for the campaign – not
everyone will be interested in every product.

• Comprehension is the next step and the aim is that customers understand what the
product will do for them. Advertising that helps a customer understand the benefits and
features of the particular product offered will increase comprehension about the
product.

• Once a customer is aware of and understands a product, then building conviction and a
positive attitude to the product is the next phase. According to David Mercer in the
book Marketing this stage is about persuading the customer to adopt a positive attitude
to the product. It is about much more than understanding the benefits. Why should a
customer buy this particular product from this particular outlet?

• Action. The whole point of marketing and advertising for small business is to generate
or increased revenue. That means the customer must buy – or, take any action which is
a step towards buying. For example, making a phone call, purchasing in a shop, sending
off for more information, etc.

• An understanding of marketing touches will help to define realistic action steps for
advertising campaigns.

DAGMAR Step Three: Measure Advertising Effectiveness

The DAGMAR model was introduced by Russell Colley in a 1961

• In step one of the DAGMAR advertising model, goals were established for the
campaign. The final step is measure the results and effectiveness of the campaign by
evaluating whether the goals were met or not. This may require another survey to
measure awareness comprehension and conviction levels.
 • Advertising can be an important part of marketing for small business and understanding
advertising models such as AIDA and DAGMAR can help improve marketing
effectiveness

MASLOW'S HIERARCHY MODEL

Abraham (Harold) Maslow (April 1, 1908 – June 8, 1970) was an American psychologist. He
is mostly noted today for his proposal of a hierarchy of human needs and is considered the
father of humanistic psychology.

Maslow postulated that needs are arranged in a hierarchy in terms of their potency. The lower
the need is in the pyramid, the more powerful it is. The higher the need is in the pyramid, the
weaker it is.

PHYSIOLOGICAL NEEDS

The base of the pyramid is formed by the physiological needs.

The physiological needs of the organism take first precedence. These consist mainly of:

Eating, Drinking, Sleeping, Shelter, Warmth

If some needs are not fulfilled, a human's physiological needs take the highest priority.
Physiological needs can control thoughts and behaviors, and can cause people to feel sickness,
pain, and discomfort.

SAFETY NEEDS

With his physical needs relatively satisfied, the individual's safety needs take over and
dominate his behavior. These needs have to do with man's yearning for a predictable, orderly
world in which injustice and inconsistency are under control. In the world of work, these safety
needs manifest themselves in such things as:

Personal security from crime, Security against company lay-offs, Health and well-being Safety
against accidents / illness and the adverse impacts.

LOVE/BELONGING/SOCIAL NEEDS:

After physiological and safety needs are fulfilled, the third layer of human needs is social. This
psychological aspect of Maslow's hierarchy involves emotionally-based relationships in
general, such as: Friendship, sexual intimacy, having a supportive and communicative Family

Humans need to feel a sense of belonging and acceptance, whether it comes from a large social
group (such as clubs, office culture, religious groups, professional organizations, sports teams,
gangs) or small social connections (family members, intimate partners, mentors, close
colleagues, confidants). They need to love and be loved (sexually and non-sexually) by others.

ESTEEM NEEDS

All humans have a need to be respected, to have self-esteem, self-respect, and to respect others.
People need to engage themselves to gain recognition and have an activity or activities that
give the person a sense of contribution, to feel accepted and self-valued, be it in a profession or
hobby. Imbalances at this level can result in low self-esteem, inferiority complexes.

COGNITIVE NEEDS

Maslow believed that humans have the need to increase their intelligence and thereby chase
knowledge. Cognitive needs is the expression of the natural human need to learn, explore,
discover and create to get a better understanding of the world around them.

AESTHETIC NEEDS

Based on Maslow's beliefs, it is stated in the hierarchy that humans need beautiful imagery or
something new and aesthetically pleasing to continue up towards Self-Actualization. Humans
need to refresh themselves in the presence and beauty of nature while carefully absorbing and
observing their surroundings to extract the beauty that the world has to offer.

SELF ACTUALIZATION

Is the instinctual need of humans to make the most of their abilities and to strive to be the best
they can. In Maslow's scheme, the final stage of psychological development comes when the
individual feels assured that his physiological, security, affiliation and affection, self-respect,
and recognition needs have been satisfied. As these become dormant, he becomes filled with
a desire to realize all of his potential for being an: Effective Creative, Mature human being

TRANSCENDENCE

Maslow also proposed that people who have reached self-actualization will sometimes
experience a state he referred to as "transcendence," in which they become aware of not only
their own fullest potential, but the fullest potential of human beings at large.
 CLASSIFICATION OF ADVERTISING ON THE BASIS OF TARGET AUDIENCE,
GEOGRAPHICAL AREA, MEDIUM AND PURPOSE

CLASSIFICATION OF ADVERTISING

Different authors have classified advertising in different ways. Philip Kotler has classified
advertising on the following basis:
(a) Geographical Area: National, Regional or Local.
(b) Content: Product Advertising, Brand Advertising, Institutional Advertising.
(c) Type of Appeal: Factual and Emotional.
(d) Audience: Consumer, Industrial, Trade.
(e) Sponsor: Manufacturer, Middlemen, Manufacturer -middlemen, private.
(f) Intended Effort: Direct Action and Delayed Action.
(g) Level of Demand Influence: Primary Product Level, Selective Brand Level.

Classification of Advertising on the various basis of

Geographical Target
area Audience Medium Purpose

Local Consumer Print Media Product advertising

Regional Industrial Electronic Corporate advertising
National Trade Cyber Commercial advertising
International Professional Public service announcement
Action Advertising
Awareness Advertising
Election Advertising
Classification on The Basis of Area Coverage:
On this basis advertising may be classified into the following four categories,
(1) Local, (2) regional, (3) national, (4) international advertising.

1. Local Advertising: It is also known as „retail advertising‟. It is undertaken by local retail

stores, departmental stores, co-operative stores, selling cloth, saris and other consumer goods
and consumer durables. It is directed at local customers. Media, used for local advertising, are
shop decorations, local newspapers, magazines, posters, pamphlets, hoarding, new signs, local
cinema houses, etc.

2. Regional Advertising: It has wider coverage, as compared to local advertising. It covers a

particular region, which may be one state, or, more than one state, the people of which may be
having a common tongue, or, using one common product. It is undertaken by manufacture, or,
regional distributor of a product. Media, used for regional advertising, include regional
newspapers, magazines, radio, regional T.V., outdoor media, etc. It is considered to be an Ideal
form of advertising for launching and marketing a new product in a specific region.

3. National Advertising: It is generally undertaken by manufactures of branded goods, for

which, advertising messages is communicated to consumers all over the country. Almost all
possible mass media, including national newspapers, radio and television network, are
employed for national advertising. Product services, and ideas, which have demand all over the
country, are
Suitable for national advertising. In India, Indian Airline Hindustan Lever Ltd., Vicco, Godrej,
Bajaj and Kirloskar are a few leading advertisers at national level. Likewise, detergents, soaps,
Toothpastes, cosmetics, scooters, cars, and bicycles, are some of the products, which are
advertised all over the country.
4. International Advertising: This type of advertising is undertaken by those companies,
which operate in more than one country, known as multi-national‟ companies. Exporters,
generally
Advertise their products and services in foreign countries, where ready markets are available.
Air India and other airlines, and multi-national companies advertise their products and services
all over the world. Coca - Cola and Pepsi are advertised globally, as the sales are almost all
over the world. International advertising is extremely expensive, involving the services of
professional
Advertising agencies in different countries.

II. Classification on The Basis of Target Audience:

On this basis, advertising may be classified into the following four categories
(1) Consumer advertising (2) Industrial advertising (3) Trade advertising (4) Professional
advertising.

1. Consumer Advertising: This type of advertising is directed to the ultimate consumers of the
consumer products, i.e., the individuals, who buy, or, use the consumer products, or services,
For example, toilet soap, toothpaste, toothbrush, tea, textiles, etc., for themselves and for their
families. All types of consumer products need continuous and extensive advertising on T.V.,
radio, and press.

2. Industrial Advertising: This type of advertising is used by manufacturers and distributors

of industrial goods. Such as, machinery, plants, equipments, spare parts and components, and
are directed at industrial users or customers. Such advertisements usually appear in trade
journals, trade dictionaries, and business magazines and so on. The appeal made is tactual and
rational.

3. Trade Advertising: This kind of advertising is employed by manufactures and/or

distributors to influence and persuade wholesalers and dealers (retailers) to stock and sell the
goods of
The advertiser by offering incentive schemes to them, or, by inviting dealership for their
particular products(s).

4. Professional Advertising: It is directed at professional like doctors, professors, engineers

and others, who are expected to recommend, prescribe, or, specify the advertised products to
ultimate consumers. This is done through professional journals and representative of the
advertisers.
III. Classification on The Basis of Media:
On the basis, advertising may be classified into the following four categories
(1) Print media advertising; (2) electronic, or broadcast media advertising; (3) outdoor media
advertising.

1. Print Media Advertising: The print media consists of newspapers, magazines, journals,
handbills, etc. No newspaper or, journal, today, can survive without advertising revenue. Print
media advertising, even today, is the most popular form; and revenue derived by mass media
from advertising has, therefore, been progressively increasing year after year. Print media
appeals only to the sense of sight, i.e. eyes.

2. Electronic or Broadcast Media Advertising: Electronic or broadcast media consists of

(i) Radio, (ii) television, (iii) motion pictures, (iv) video, and (v) the internet.
The radio is audio in nature, appealing only to the sense of sound (ears). Radio advertising is
more effective in rural areas, as compared to urban regions. Television, as an advertising
medium, is more attractive and effective because it is an audio-visual medium appealing to
Both the senses of sight sound (eyes and ears). Different methods, such as, spot
announcements, sponsored programmes, etc., are used for broadcasting advertising messages.
However, broadcasting media are very expensive form of advertising. Advertising is also
undertaken through movies, video, and the internet.

3) Outdoor Media: This includes posters, neon signs, transit, point of purchase (POP), etc.
Outdoor advertising can be a good supporting media to other forms of advertising. It is a good
form of reminder advertising, especially, the POP advertising.

4) Other Media: This includes direct mail, handbills, calendars, diaries, cinema advertising,
and internet and so on. These miscellaneous media can play an important supporting role to the
major media such as television, and newspapers.

5) Cyber media: All the Ads on internet like web online shopping portals come under cyber
media.

IV. Classification on The Basis of Purpose:

Product advertising
Corporate advertising
Commercial advertising
Public service announcement
Action Advertising
Awareness Advertising
Election Advertising

The Ethical Aspects of Advertising

Ethics are the moral standards against which behavior is judged. Key areas of debate regarding
ethics & advertising are:

Truth in Advertising
• Deception is making false or misleading statements, but puffery
(commercial exaggeration) is legal.

Advertising to Children—Issues
• Advertising promotes superficiality & materialism in children
• Children are inexperienced & easy prey
• Persuasion to children creates child-parent conflicts

ADVERTISING STANDARDS COUNCIL OF INDIA (ASCI)

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 endeavours to influence
buying decisions of the Consuming Public.
The Advertising Standards Council of India (ASCI) established in 1985 is a voluntary self-
regulatory council, registered as a not-for-profit Company under section 25 of the Indian Cos.
Act with the objective of ensuring that all advertising should be legal, decent, honest and
truthful along with a sense of social responsibility to the consumer and to the rules of fair
competition.

Its not a government organization and 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

This only means more freedom for an agency to practise their craft or carry on their business
effectively. As a member of ASCI, one can mould the course of Self-Regulation and participate
in the protection of healthy, effective advertising. The further development of the Code and
future appointments to the Consumer Complaints Council (CCC). Membership of the ASCI
(open only to Firms) entitles one to appoint nominee to discharge one’s function as a member,
including standing for election to the Board of Governors and voting at general meetings.

ASCI encourage 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.

i. Ensuring the truthfulness and honesty of representations and claims made through advertising
and safeguarding against misleading advertising.

ii. Ensuring that Advertising is not offensive to generally accepted norms and standards of
public decency.

iii. 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.

iv. Ensuring that advertisements observe fairness in competition and the canons of generally
accepted competitive behaviour.

v. 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.
vi. 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.

vii. To give wide publicity to the Code and seek adherence to it of as many as possible of those
engaged in advertising.

viii. 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.

Consumer Complaints Council:

The Board of Governors shall appoint Consumer Complaints Council, the number of members
of which shall not be more than twenty one. Out of these 21 members, 12 are from civil society
and nine from advertising practitioners. The CCC decides upon the complaints within a period
of 4 to 6 weeks.
The Consumer Complaints Council shall examine and investigate the complaints received from
the consumers and the general public, including the members of the Company, regarding any
breach of the Code of Conduct and/or advertising ethics and recommend the action to be taken
in that regards.

Power of the Consumer Complaints Council:

i. Each Council shall be entitled to receive complaints from the Board of Governors, the
Consumers, the general public and members of the Company.

ii. Each Council shall enquire, investigate and decide upon the complaints received by it within
the framework of the Code of Conduct adopted by the Company.

iii. All the decisions of each Council shall be by simple majority, in writing and may specify
the action to be taken in respect of the offending advertisement.

ASCI propagates its Code and a sense of responsibility for its observance amongst advertisers,
advertising agencies and others connected with the creation of advertisements, and the media.

ASCI encourages the public to COMPLAIN against advertisements with which they may be
unhappy for any reason and ensures that each complaint receives a prompt and objective
consideration by an impartial committee Consumer Complaints Council (CCC) which takes
into account the view point of the advertiser, and an appropriate decision is communicated to
all concerned. ASCI endeavours to achieve compliance with its decisions through reasoned
persuasion and the power of public opinion.

The Role and Functioning of the ASCI & its Consumer Complaints Council (CCC) in dealing
with complaints received from consumers and industry, against ads which are considered as
false, misleading, indecent, illegal, leading to unsafe practices, or unfair to competition, and
consequently in contravention of the ASCI code for self-regulation in advertising.

If an ad is to be reviewed for its likely impact on the sensibilities of individual viewers of TV,
or readers of press publications, it is required to convey to the advertiser concerned, the
substantial issues raised in the complaint, in the exact context of the specific ad, as conveyed
by the perception of the complainant, and to elicit the appropriate response by way of
comments from the advertiser.

Only then will the CCC of the ASCI, be in a position to deliberate meaningfully on the issues
involved, and to arrive at a fair and objective conclusion, which would stand the scrutiny of all
concerned with the right to freedom of expression, and the freedom of consumers to choose the
products /services made available to them in the marketplace.

For this it is required to have a clearly readable copy or clipping of the ad under complaint,
with full particulars of name and date of publication, or a printout of an ad or promotion on a
website or in case of a T.V. Commercial (TVC), the channel, date and time or programme of
airing, and a description of the contents of the TVC, along with a hard copy of the complete
complaint preferably signed by the complainant.
The ASCI receives and processes complaints against ads, from a cross section of consumers,
the general public and Industry, in the interests of all those who rely on advertising as a
commercial communication, and this covers individuals, practitioners in advertising, advertiser
firms, media, ad agencies, and ancillary services connected with advertising. As a policy ASCI
does not disclose the identity of the complainant to the advertiser.

In the case of complaints which were upheld by the CCC during the past year, over 80% of
such ads have been withdrawn or modified appropriately by the advertisers or ad agencies
involved, and the concerned media have also confirmed that they would not carry such
offending ads/TVC.

ASCI’s Mission:

ASCI has one overarching goal- to maintain and enhance the public’s confidence in
advertising. ASCI seeks to ensure that advertisements conform to its Code for Self-Regulation
which requires advertisements to be:

i. Truthful and fair to consumers and competitors.

ii. Within the bounds of generally accepted standards of public decency and propriety.

iii. Not used indiscriminately for the promotion of products, hazardous or harmful to society or
to individuals particularly minors, to a degree unacceptable to society at large.

ADVERTISING AGENCIES ASSOCIATION OF INDIA (AAAI)

Advertising Agencies Association of India (AAAI) is the official, national organisation of
advertising agencies, formed in 1945, to promote their interests. On September 21, 1945, the
AAAI was registered as a society in Calcutta. In 1961, the office was shifted to Bombay. 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.
The AAAI mainly functions through the active, voluntary services of a president, a Vice-
President, an Honorary Secretary, an Honorary Treasure and an Executive Committee which is
been assisted by a full-time Secretary-General and his staff.

The Association maintains a permanent office, which is located at Mumbai. The President and
other office-bearers are elected every year by the General Body, which comprises all
representatives of member agencies. In addition, some Executive Committee Members are co-
opted to the Executive Committee and an effort is made to ensure that all zones and groups of
agencies are represented on this committee. AAAI has been called upon by its members to
resolve disputes with advertisers for which formal Arbitration proceedings have been
conducted.

Functions of AAAI
AAAI also assists its members to collect payment from defaulting advertisers. AAAI, over the
last six decades, has stood by its members and have protected their business interests, be it in a
dialogue with government, media bodies or advertisers.

AAAI has regulated its members in the orderly conduct of their business affairs, whenever the
need arose.

AAAI provides a platform for training of advertising professionals, recognition of creative

work through its coveted Triple-A Awards and honouring outstanding advertising men through
its AAAI-Premnarayen Award.

The Advertising Agencies Association of India (AAAI) is the official, national organisation of
advertising agencies, formed to promote their interests so that they continue to make an
essential and ever-increasing contribution to the nation, by working towards the following
objectives.

Objectives of AAAI:

To benefit Indian consumers and also to protect their interests by helping them to ensure that
advertising is honest and in good taste.

To benefit media by more effectively establishing sound business practices between advertisers
and advertising agencies and each of the various media owners.

To benefit the nation by harnessing and promoting advertising for the good of the country, its
constitutions, its citizens, to co-operate with the government in promoting its social objectives
and in the task of nation-building.

To encourage the interest of young individuals in the country in the business of

communication, to assist in education and training programmers and to provide information of
benefits to members. Non-members are also provided this service for a fee.

To establish a common platform which would helping 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 all the 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 liaise efficiently 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 all the discussion which are pertaining to the 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.