UNIT 1

INTRODUCTION

The word advertising comes from the Latin word "advert ere meaning “to turn the minds of
towards". Advertising is used for communicating business information to the present and
prospective customers. It usually provides information about the advertising firm, its product
qualities, place of availability of its products, etc. Advertisement is indispensable for both the
sellers and the buyers. However, it is more important for the sellers. In the modern age of
large scale production, producers cannot think of pushing sale of their products without
advertising them. Advertisement supplements personal selling to a great extent. Advertising
has acquired great importance in the modern world where tough competition in the market
and fast changes in technology, we find fashion and taste in the customers.

DEFINITIONS OF ADVERTISING

American Marketing Association has defined advertising as “any paid form of non-personal
presentation of ideas, goods and services by an identified sponsor”.

According to Webstar, “Advertising is to give public notice or to announce publicity”.

According to Gardner, “Advertising is the means of mass selling that has grown up parallel
with and has been made necessary to mass production”.

ROLE OF ADVERTISING

1. Marketing Role:4Ps-Product, Price, Promotion and Place. Apart from the traditional
4 Ps, there are also other variables, i.e. Packaging, Position, and Pace. Advertising is
an element of promotion.
2. Social Role: At social level advertising plays upon, derives from and contributes to
the social texture of a country. Advertising reflects society and socie1y reflects
advertising. Various social changes are brought about or helped by advertising. It
makes role models who can create societal change. Adult education, family planning
and pulse polio campaign also used to sell the concept of social advertising. It is a
positive force in our society. It makes to the nation's social welfare.
3. Economic Role: At all economic level, advertising stimulates demand, educate
consumer about new product, policies, programmes services and organizations,
increase competition and improve standard of life-style by helping to bring new
product to the consumer. No doubt, it is a fuel that boosts the economy by helping to
introduce new products faster and more effectively to consumer by supporting to
achieve the economies of scale faster and by helping to remove the monopoly of the
product.
4. Communication Role: The function of all elements of the advertising
communication programme is to communicate. As communication has been variously
defined as the passing of information, the exchange of ideas or the process of
establishing a commonness or oneness of thought between a sender and receiver.
These concepts suggest that for communication to occur there must be some common
 thinking between two parties and information must be passed from one person to
another or from one group to another. But establishing this commonality in thinking,
it is not always as easy as it might seem. The advertising communication process is
very complex. Success depends on such factors as the nature of message, the
audience's interpretation of it and the environment in which it is received. The
receiver's perception of the source and medium used to transmit the message may also
affect the ability to communicate, as do many other factors words, pictures, sounds
and colours may have different meanings to different audiences, and people's
perceptions and interpretation of them vary.

ELEMENTS OF ADVERTISING

1. Attention Grabbing - Catchy Music/ jingle• A Beautiful Woman• Repetition• Loud

Sounds• Visual Humour• Appeal to basic sensory perceptions and if done right, they
work simply because we’re human.
2. Catchy Content / message - All good advertisements tell a story about a product.
The copy or text must communicate in clear, concise and focused language.• Start
with a headline that grabs the reader’s attention, sparks interest in your product and
conveys your message succinctly.• Potential customers have only seconds to read
your billboard. Even in brochures or catalogues, keep body copy brief and on point.•
Include the company signature --- your identifying slogan and/or logo.• Use fonts
(typefaces) that complement your message and are easy to read.
3. Trust Development by the seller - Is the company offering the product trustworthy?
• Or are they just a bunch of greasy car salesmen trying to sell a product? • An ad
should establish the company offering the product as deserving of trust. • This can
often be accomplished simply by making a well-produced ad with likable characters.
4. Positive Associations - Have you ever wondered why little babies, cute animals,
beautiful women, comedy, celebrities and nostalgia are often found in commercials?•
Because they create positive feelings in people and are the easiest ways to establish
positive associations with products.
5. Media - Photography, illustration and logo symbols like Nikes swoosh raise interest
in any ad.• Integrate these graphic elements with your headline and copy for
maximum effect.• A study by Texas State University showed that more attention goes
to pictures than words and human models get the most attention in magazine ads.•
This indicates the value of using models that match or appeal to your target audience
to forge an immediate connection between your product/service and your potential
customer.• Inconsistency between your headline and your illustration will confuse the
viewer and reduce the ads impact.
6. Ad Agency – agency helps to create the layout of the advertisements. The layout is
the way you put all the elements together to create the final ad.• Your layout needs a
focal point usually the picture or headline for readers eyes to land on, then the white
space, graphic and text elements should lead them through the copy to the company
signature.• Make the final layout match the ads ultimate printed appearance in every
detail.
 7. Some of the other elements are advertiser, distributors, marketing mix strategy helps
in statistical turnover and the methods involved in the profit earning process of good
and services through government or non-governmental sector.

TYPES OF ADVERTISING

1. Print Advertising - If an advertisement is printed on paper, be it newspapers,

magazines, brochures, fliers that would be considered a portable printed medium, then
it comes under the banner of print advertising. Provides more and detailed
information. For example, people who cannot afford a TV or no time rely on
newspapers for accurate news and therefore advertisements can easily reach to these
audiences such as Newspaper, Brochures, Thousands of flyers litter the streets
2. Outdoor advertising - Advertising on bill boards or signboards, outside of a building
and often by the roadside. The billboard advertising is very popular however has to be
really terse and catchy in order to grab the attention of the people.
3. Broadcast advertising - Broadcast advertising is a very popular advertising medium
that constitutes of several branches like television, radio or the Internet• Television
advertisements have been very popular ever since they have been introduced.• The
cost of television advertising often depends on the duration of the advertisement, the
time of broadcast (prime time/peak time), and of course the popularity of the
television channel on which the advertisement is going to be broadcasted.
4. Covert Advertising- Covert advertising is a unique kind of advertising in which a
product or a particular brand is incorporated in some entertainment and media
channels like movies, television shows or even sports. Some of the famous examples
for this sort of advertising have to be the appearance of brand Nokia which is
displayed on Tom Cruise’s phone in the movie Minority Report, or the use of Cadillac
cars in the movie Matrix Reloaded.
5. Surrogate Advertising-Surrogate advertising is prominently seen in cases where
advertising a particular product is banned by law. Advertisement for products like
cigarettes or alcohol which are injurious to heath are prohibited by law in several
countries and hence these companies have to come up with several other products that
might have the same brand name and indirectly remind people of the cigarettes or
beer bottles of the same brand.
6. Public Service Advertising - Public service advertising is a technique that makes use
of advertising as an effective communication medium to convey socially relevant
messaged about important matters.• Examples : AIDS, energy conservation, political
integrity, deforestation, illiteracy, poverty and so on.
7. Celebrity Advertising - Although the audience is getting smarter and smarter and the
modern day consumer getting immune to the exaggerated claims made in a majority
of advertisements, there exist a section of advertisers that still bank upon celebrities
and their popularity for advertising their products.
8. Celebrity advertising - although the audience is getting smarter and the modern day
consumer getting immune to the exaggerated claims made in a majority of the
advertisements, there exists the section of the advertisers that still bank upon
celebrities and their popularity for advertising their products.
ADVANTAGES AND DISADVANTAGES OF ADVERTISING

Advantages

1. Wide coverage
2. Control of Message
3. Product details can be communicated effectively
4. Can used to build brand loyalty

Disadvantage

1. Often expensive
2. Impersonal
3. One way communication
4. Surrogate ad may create false belief on children’s

ADVERTISING AND CONSUMERS

A person who purchases goods and services for personal use is called consumer. The ultimate
aim of the marketing efforts is to satisfy the needs of the consumers by transforming the
benefits of productive efficiency to the final users.

It the driving force of the in decision making process: disseminate useful information
about the product relative merits and feature in terms of its price, quality, utility, quantity,
durability and convenience through various approach of advertising .Therefore the selective
buying method or intelligent buying method cannot be decide the sales turnover of the
product. The aspect of consumer buying process is sea. But the advertising can helps to
provide the reach in order to make the consumer to buy the product.

It ensures better Quality product at reasonable price – advertising stimulates the sales of
the good product and accelerates the distractions of a bad product by imprinting the image of
a product on the minds of the consumer and earns long standing reputation. This reputation
survives as the “Brand”.

It saves good deal of time – where people are so busy and racing against the work and time
to earn money. They find advertising very useful to identify their product through
advertisement and also they know to point the good market where goods are available.
Therefore it saves there time in choosing the product.

BUYING SYSTEM AND BUYING DECISIONS OF THE CUSTOMER

The most important thing is to forecast where customers are moving, and be in front of
them.

- Philip Kotler
 Processes a consumer uses to make purchase decisions, as well as to use and dispose of
purchased goods or services; also includes factors that influence purchase decisions and
the product use. Therefore the buyer can be classified into 2 types such as

Individual Buyer: This type of buyer buys the product only for the self-essential goods
in required amount. Here monetary aspects will be considered as per the demographical
classes.

Business buyer: This type of buyer buys the product in large or bulk quantity in order to
run the small scale business or petty shops. These persons are called as salesman, retailer,
petty shop owner, Buyers in agriculture sector, Buyers in industrial sector, Buyers in
service sector, Resellers, Buyers in govt. sector, Buyers in nonprofit business. . They have
direct contact with customer, helps providing the feedback of the product. Mostly
advertisers rely upon the business buyer to know the audience perspective and
expectations. This person also helps to know the buying decisions of the consumers.

The Buyer Decision Process for New Products

Adoption process is the mental process an individual goes through from first learning
about an innovation to final regular use.

Awareness interest Evaluation Trial Adoption

When the consumer gets the awareness through watching the print or broadcast
advertisements, there is a chance for them to get attract by the advertisement appeal.
Therefore the person may do try using the sample product with absolute interest only
when the product strategy aspect satisfy the consumer completely. The consumer may
start using the product regularly; which in case turns to Brand later. But the product is
said to be branded only when the consumer enjoys both the quality as well as the
beneficiary for worth he pay for that product.
 UNIT 2

TARGET AUDIENCE

A particular group at which a product such as a film or advertisement is aimed are called as
target audience ◦ This particular group may have a specific category for example the product
may be aimed at a particular age so your target audience may be ages 1-10 years, etc. ◦ Target
audiences are usually described in demographic terms - the type of information collected by a
Census: age group, sex, education, occupation, ethnicity, religion and so on.

Demographic Chart above represents the various classes of the target audience and
professionals

 A Top management, bankers, lawyers, doctors and other professionals

 B Middle management, teachers, many 'creative' e.g. graphic designers, PR,
Journalists etc…
 C1 Office supervisors, junior managers, nurses, specialist clerical staff etc.
 C2 Skilled workers, tradespersons (white collar) Plumbers, electricians
 D Semi-skilled and unskilled manual workers (blue collar)
 E Unemployed, students, pensioners, casual workers

There are other categories that divide up a target audience:

 age
 gender
 race
 Location

The following are all factors in analysing or predicting the target audience

• Audience engagement:This describes how an audience interacts with a media text.

Different people react in different ways to the same text.

• Audience expectations: These are the advance ideas an audience may have about a
text. This particularly applies to genre pieces. Don't forget that producers often play
with or deliberately shatter audience expectations.

• Audience foreknowledge: This is the definite information (rather than the vague
expectations) which an audience brings to a media product.

• Audience identification:This is the way in which audiences feel themselves

connected to a particular media text, in that they feel it directly expresses their attitude
or lifestyle. (Attitude, lyrics, clothes, direct address)

• Audience placement: This is the range of strategies media producers use to directly
target a particular audience and make them feel that the media text is specially 'for
them'. (Way in which you make our audience react: direct address, with T.V bards
also lyrics, creating relationships with audience).
 • Audience research:Measuring an audience is very important to all media institutions.
Research is done at all stages of production of a media text, and, once produced,
audience will be continually monitored.

Some of the methods to create target audience are

• posters

• print advertisements

• trailers

• promotional interviews (e.g. stars appearing on chat shows)

• tie-in campaigns (e.g. a blockbuster movie using McDonalds meals)

• merchandising (t-shirts, baseball caps, key rings)

BRAND

A name, term, sign, symbol or design, or a combination of them, intended to identify the
goods or services of one seller or group of sellers and to differentiate them from those of
competitors.

The brand can be determined by the following aspects

• The sum total of all characteristics of the product, service, or group, including its physical
features, its emotional assets, and its cultural and emotional associations;

• The brand identity as applied to a single product or service, an extended family of products
or services, or a group; and

• The on-going perception by the audience (consumer or public) of the brand. Let’s break
down these three integrated meanings of a brand.

A brand identity usually consists of the following integrated components:

• Brand name
• Packaging
• Logo
• Web site
• Letterhead
• Any other application
• Business card pertinent to a particular brand

BRANDING

Branding is one of the most powerful tools in the marketing arsenal. So brandishing this tool
comes with a responsibility to use it ethically. Recently, branding has come under significant
criticism, particularly in Naomi Klein’s popular book No Logo (Picador, 2001). Klein argues
that firms use branding in an imperialist manner, feeding on consumers’ base desires while
ignoring issues of social welfare. Such critiques have a long history across the globe. Beneath
such criticism is the question of power. Branding is a form of rhetoric—an instrument to
persuade people to think differently. Branding can create considerable value. But it can also
be used in an exploitative manner. Therefore branding means “Providing goods and services
with the power of the brand”.

Brand Building

Brand building is generating awareness, establishing and promoting company using

strategies and tactics. In other words brand building is enhancing brand equity using
advertising campaigns and promotional strategies. Branding is crucial aspect of
company because it is the visual voice of the company. Goal of brand building is creating
a unique image about the company.

Importance of Brand Building

Brand building can be initiated with a well thought brand identity which can help
create a strong brand image which goes a long way in consolidating the brand.

Brand Building comprises of creating value to consumers that how consumers feel,
think and know about your brand. There are three popular brands known-

• Product brand: A physical product or items or goods are a product brand. Brand
building is ensuring a good quality product is given to the customer along with good
brand visibility, packaging, warranty etc. All these cumulatively help in brand building.
Example of product brands are Adidas, Rolex etc

• Service Brand: A non-tangible offering is a service brand like telecom service,

ecommerce etc. In this case, brand building is most dependent on the experience that a
customer gets. Example of service brands are McDonald’s, Starbucks etc

• Retail Brand: Retail brands are a combination of service & product i.e. products are
sold through a service offering. Hence brand building has to ensure good customer
experience as well as high quality products. Example of retail brands are Tesco,
Walmart etc.

PROCESS OF BRAND BUILDING

• Describe your brand: The first step of brand building is to describe the brand. This
can be done through product description, packaging, logos etc. The way a brand is
defined builds the brand equity and forms the foundation of the customer perception.
• Brand Differentiation & Positioning: Once a product or service is created, it is
critical that the brand is differentiated from its competition with some unique value.
Also, positioning the brand correctly is an essential element of brand building.

• Brand Promotion: Advertising & promoting the brand using TVCs, social media, print
ads, online advertising etc is one of the most important pillars of brand building as it
helps in creating brand awareness. Correct communication and effective media
channels can help build a strong brand and helps increase brand recall.

• Personalise the Brand: Brand building can be effective is a customer feels connected
to it. Hence giving a personal touch to the customer, through innovation and
customization can help building a stronger perception in the mind of the customer.

• Evaluate the Brand: It is important that a company keeps on monitoring and

reviewing the performance of its products, services and brands. Hence evaluation &
review of a brand is an essential element of brand building.

BRAND POSITIONING

The act of designing the company’s offering and image to occupy a distinctive place in the
mind of the target market. Simply, a brand's Positioning is the way in which we want the
consumer to think about a product. It is the most basic of all strategic statements and provides
a blueprint for the marketing and development of a brand. Its purpose is to focus the efforts of
all those involved in marketing and development activities for the brand. It is an essential
element of each brand's Marketing Strategy and must precede the development of all brand
sub strategies (i. e., creative, promotion, product, media and packaging). - The Positioning
Statement states the reason for the brand's existence and once successfully established, it
should rarely be changed.

Positioning can be done through slogan, Logo, tone, jingle, Celebrity, etc.

Importance of positioning

- It underlies all other strategic decisions, short- and long-term.

- It defines the way in which a brand will complete within an increasingly competitive
market.

ADVERTISING STRATEGY

It is described as one of the most common tool company’s use to direct persuasive
communication to target buyers and public. “Advertising is any paid form of non-personal
presentation and promotion of idea, goods and services by an identified sponsor.” Ads are
cost effective way to disseminate message, whether to build brand preference or to educate
nation.
Marketing managers must always start by identifying target market and buyer’s motives
while developing ad program. Five major decisions in developing ad program known as 5
M’s. Mission, Money, Message, Media, Measurement.

Setting the Marketing Objective (mission): Objectives must flow from prior decision on
target market, market positioning and marketing mix.

a) Informative advertising: • Figures heavily in the pioneering stage. • The objective is to

build primary demand.
b) Persuasive advertising: • Important in competitive stage. • Company’s objective is to
build selective demand. • Most advertising fall under this category. • Many times
involve comparative advertising.
c) Reminder advertising: • highly important with matured products. • A related form of
advertising is reinforcement advertising. • Often depicts satisfied customers enjoying
special features. The choice of advertising objective should be based on thorough
analysis of current marketing situations.

Deciding On the Advertising Budget (Money) : The role of advertising is to increase

demand for the product. • If company spends too little, the effect will be insignificant • If the
company spends too much, at times it becomes more than required and that money is
blocked. Five specific factors is to be considered when setting the advertising budget.

a) Stages in product Life Cycle: • New product typically receive large budget to build
awareness and to gain consumer trial • Established brands are supported with lower
budgets.
b) Market share and consumer Base: • High market share brands usually require less ad
expenditure. • To build share by increasing market size requires larger advertising
expenditure. • It is less expensive to reach consumers of widely used brands than to
reach customers of low share brands.
c) Competition and Clutter: • In a market with a large number of competitors and high
advertising spending a brand needs to advertise more heavily. • Even simple clutter
from advertisement not directly competitive to the brand crates a need for heavier
advertising.
d) Advertising Frequency: • the number of repetitions needs to be put across the brand’s
message to consumer has an impact on the advertising budget.
e) Product Substitutability: • Brand in a commodity class • Advertising is important
when a brand can offer unique physical benefits.

Choosing the advertising concept (Message) - Advertising campaigns differ in the

creativity. • Only after gaining attention the brand sales. • Advertising goes through three
steps to develop creative strategy

a) Message Generation: • the major benefits the brand offer should be decided as part of
developing the product concept. • There may be latitude for a number of possible
messages. • If the consumer is seeking new or different benefits from the products, the
 message may be changed without changing the product. • Many creative people proceed
by talking to consumers, dealers, experts & Competitors.
b) Message Evaluation and Selection: • Advertiser needs to evaluate the alternative
message. • A good advertisement normally focuses one core selling proposition. • It is
suggested that message should be rated on desirability, exclusiveness and believability. •
The advertiser should conduct market analysis and research to determine which appeal is
most likely to succeed with the target audience.
c) c) Message Execution: • The message impact depends not only upon what is said but also
on how it is said. • Some ads aim at rational positioning and others for emotional
positioning. • Message execution can be decisive for products that are highly similar. •
Creative people must find a style, tone, words and format for executing message.

Deciding on the Tool (Media) - The message of the advertisement of products and services
can be transferred towards the media to the mass audience. It can determine by the
following.

a) Deciding on Reach, Frequency and Impact: It involves most cost effective media to
deliver the desired number of exposures to the target audience. • Reach: The no. of
different persons or households exposed to a particular media scheduled at least once
during the specified time period. • Frequency: The no. of times within the specified time
period an avg. person is exposed to the message • Impact: The qualitative value of
Exposure.
b) Choosing among major media types: The media planner has to know the capacity of the
major media types to deliver reach, frequency and impact. The important variables here
are • Target audience media habits • product • Message • Cost.
c) Selecting Specific Media Vehicle: Media planner must search for the most cost effective
media vehicle. Media planner relies on media measurement services that provide
estimates of audience size, composition, and media cost. Audience size has several
possible measures. • Circulation • Audience • Effective audience: Target audience. •
Effective ad exposed audience.

Evaluating Advertising Effectiveness (Measurement) - Good planning and control of

advertising depends critically on measures of advertising effectiveness. • Most of the money
is spent by the agency in pretesting ads. • Many companies develop an advertising campaign,
put into the national market and then evaluate its effectiveness. • Most advertisers try to
measure the communication effect of an ad (awareness, knowledge, preferences).

ADVERTISING CAMPAIGN

An advertising campaign is a series of advertisement messages that share a single idea and
theme which make up an integrated marketing communication (IMC). Advertising
campaigns appear in different media channels across a specific time frame that often needs to
be clearly defined.

The process of making an advertising campaign is as follows:

 1. Research: first step is to do a market research for the product to be advertised. One
needs to find out the product demand, competitors, etc.
2. Know the target audience: one need to know who are going to buy the product and
who should be targeted.
3. Setting the budget: the next step is to set the budget keeping in mind all the factors
like media, presentations, paper works, etc which have a role in the process of
advertising and the places where there is a need of funds.
4. Deciding a proper theme: the theme for the campaign has to be decided as in the
colors to be used, the graphics should be similar or almost similar in all ads, the music
and the voices to be used, the designing of the ads, the way the message will be
delivered, the language to be used, jingles, etc.
5. Selection of media: the media or number of Medias selected should be the one which
will reach the target customers.
6. Media scheduling: the scheduling has to be done accurately so that the ad will be
visible or be read or be audible to the targeted customers at the right time.
7. Executing the campaign: finally the campaign has to be executed and then the
feedback has to be noted.

Mostly used media tools are print media and electronic media. Print media includes
newspaper, magazines, pamphlets, banners, and hoardings. Electronic media includes radio,
television, e-mails, sending message on mobiles, and telephonic advertising. The only point
to remember is getting a proper frequency for the ad campaign so that the ad is visible and
grasping time for customers is good enough.

All campaigns do not have fix duration. Some campaigns are seasonal and some run all year
round. All campaigns differ in timings. Some advertising campaigns are media based, some
are area based, some are product based, and some are objective based. It is seen that generally
advertising campaigns run successfully, but in case if the purpose is not solved in any case,
then the theory is redone, required changes are made using the experience, and the remaining
campaign is carried forward.

Example :

For example, your friend, Bob, owns a catering business. He has been busy making ribs,
chicken, and burgers for parties all over the city. People love his food, and his catering
business is extremely successful. He keeps getting asked when he is going to open a
restaurant. After giving it a lot of thought, he decides to open a food truck, which will allow
him to offer his food to individuals every day. One thing Bob didn't realize is how many food
trucks are already selling similar products. His food is suddenly lumped into a large group of
food providers, and he needs to figure out how to tell people about what makes his food
different from the other rib trucks.
Bob needs to implement an ad campaign to reach his current and potential customers. He
realizes he needs to be able to tell people where to find his truck, what food he offers, and
encourage people to come try his menu items. An effective ad campaign creates interest,
builds desire for a product or service, and motivates people to act on their desire.
advertising structure

Any hoarding or similar structure or apparatus, whether mechanical, electrical,

electronic or in any other form, used, or adapted, for use, for the display of
advertisements.

ADVERTISING APPEAL

The main aim of the advertising is to increase sales by showing the goods and services in a
positive light. The adviser use such way of approach like making audience to get impact or to
make remind the product. Advertising appeals aim to influence the way consumers view
themselves and how buying certain products can prove to be beneficial for them. The
message conveyed through advertising appeals influences the purchasing decisions of
consumers. Keep on reading to know the various different types of advertising appeals that
can be seen in the media today.

Types of advertising appeals:

Rational Appeal - the name suggests aims to focus on the individual’s functional, utilitarian
or practical needs for particular products and services. Such appeals emphasize the
characteristics and features of the product and the service and how it would be beneficial to
own or use the particular brand. Print media is particularly well suited for rational appeals
and is often used with good success. It is also suited for business to business advertisers and
for products that are complex and that need high degree of attention and involvement.
Example: Tooth pastes, Tooth brush, soap, etc.,

Emotional Appeal - It is related to an individual’s psychological and social needs for

purchasing certain products and services. Many consumers are emotionally motivated or
driven to make certain purchases. Advertisers aim to cash in on the emotional appeal and this
works particularly well where there is not much difference between multiple product brands
and its offerings. Emotional appeal includes personal and social aspects.

a. Fear Appeal Fear is also an important factor that can have incredible
influence on individuals. Fear is often used to good effect in
advertising and marketing campaigns of beauty and health products
including insurance. Advertising experts indicate that using moderate
levels of fear in advertising can prove to be effective. Example – LIC
, ICICI, etc.,
b. Positive emotions -like- humor, love, care, pride, or joy are shown in
advertisements to appeal audience to buy that product. Example-
Micromax Unite 2 appeals to pride in one’s mother tongue, Which
provide 21 languages in one phone along with the tagline “
ApniMatraBhashakiaazadi”
 c. Negative Appeal - This appeal includes fear, guilt, and shame to get
people to do things they should or stop. For example : Tobacco kills

Humour Appeal - It is an element that is used in around 30% of the advertisements. Humour
can be an excellent tool to catch the viewer’s attention and help in achieving instant recall
which can work well for the sale of the product. Humour can be used effectively when it is
related to some benefit that the customer can derive without which the joke might overpower
the message. Example- Feviquik, Micromax, Kit Kat dancing babies

Teaser Advertising - Advertisers introducing a new product often use this appeal. It is
designed to build curiosity, interest and excitement about a product or brand. For example-
Ponds ad of Saif&Priyanka.

MusicalAppeal – itcan be used as types of advertising appeals as it has a certain intrinsic

value and can help in increasing the persuasiveness of the advertisement. It can also help
catch attention and increase customer recall. Example- the Idea- ‘Honey Bunny’ jingles

Transformational Appeal - The idea behind this appeal is that it can actually make the
consumption experience better. For example- Amway products

Comparison Appeal - In this appeal a brand’s ability to satisfy consumers is demonstrated

by comparing its features to those of competitive brands. For example- Tide & Surf.

Direct Appeals- Direct appeals clearly communicate with the consumers about a given need.
These extol the advertised brand as a product which satisfies that need. Example – Dettol

Indirect Appeals - Indirect appeals do not emphasize a human need, but allude to a need.
Example- Conditioners, mouth wash

Social Appeal- Social factors cause people to make purchases and include such aspects as
recognition, respect, etc.

Statistical Appeal: Advertisements also use statistics and figures to display aspects of the
product and its popularity in general. This is used to build confidence among the customers
for the product. Example: L’Oreal Paris – Total repair 5.
UNIT 3

MEDIA PLANNING

Media planning is an exercise to find the best medium or combination of media that will
produce the best overall effect relative to the needs of the advertised brand. Media planning
in general should involve optimum benefits in the long run. The media mix, in terms of
balance of usage for TV, radio and print media or other types of media vehicles, should be
such that the best utility of the advertising budget is obtained, and duplication of audience is
avoided as far as possible.

There is no single best media strategy that is applicable in varied situations or sometimes
even in similar situations. Media strategies also differ because of changing situations. For
example, the state of the economy changes just as consumers‟ tastes change. Advertisements
for luxurious cars would therefore not be effective during times of economic depression.
Similarly, advertisements about blue jeans, when jeans are not in fashion, would not have
much impact. To select the right media and to search the right target audience for a desired
response the advertiser or his advertising agency should go for a systematic media planning.

The 2 major considerations of media planning

Reach: In the application of statistics to advertising and media analysis, reach refers to the
total number of different people or households exposed, at least once, to a medium during a
given period.

Frequency is the number of times thay are exposed to the message. A related term is
coverage, which is the potential number of people exposed to a message.

The 2 key persons involved in media planning are media planner and media agency. Media
planner needs essential information from the client in order to plan for their budgetary media.
This process is called as “Media Brief”, consist of

1. Market profile of the product and the target audience

2. Competitor market strategy and their strategically plans
3. Target market profile
4. Media objectives in which the client getting maximum exposure in minimum budget
5. Budget plays the vital source for creating all the advertising strategy planning and
process

Media Objective:

this process is done by the media planner by considering both the client and the target
audience by arising the questions – who? What? Where? When? Why? and How?

 Who - is the manufacture/target market?

 What - is the product / its message?

  Where - are the priority markets/ display ads ?

 Why - Reason/ appeal

 When - is the best time to advertise?

 How - many, often, long?

Media budgets

Media budgets fall within overall allocations dedicated to companies' marketing efforts.
To determine media-buying commitments, businesses can start with an arbitrary
allocation assigned at some senior level of management without any supporting
rationale, an all-too-common strategy given its lack of connection to successful,
supportable results. Some advertisers assign a specific per-item advertising value to
each product model and scale up that price by the number of items they want to sell.
Other companies set aside a specific percentage of their revenues for overall marketing
activities and carve out part of that figure for media spending. Additional strategies rely
on estimating competitors' media allocations and matching them, or, more sensibly,
determining specific marketing objectives and budgeting for the media best suited to
reaching them

Media strategies:

Numerous factors are evaluated and they are usually ranked based on priority.

• Target market and media matching strategy

• Creative strategy influences media choices

• Coverage decisions are based on the budget

• Timing decisions are crucial for scheduling

• Reach, frequency, and continuity priorities

• Budget

Media execution:

An advertising message can be presented or executed in numerous ways:

 Straight sell or factual message

 Scientific/technical evidence

 Demonstration

 Comparison
 Testimonial

 Slice of Life

 Animation

 Personality Symbol

 Imagery

 Dramatization

 Humor

 Combinations

Straight Sell or Factual Message:

 Basic type of creative executions.

 Relies on a straight forward presentation of information.

 Often used with informational/rational appeals.

 Focus of the message is the product or services and its attributes.

Scientific/Technical Evidence

 In a variation of the straight sell, scientific or technical evidence is presented in the

ad.

 Advertisers often cite technical information, results of scientific or laboratory studies

to support their advertising claims.

Demonstration

 It is illustrate the key advantages of the product by showing it in actual use or in some
staged situations.

 It can be very effective in convincing consumers of a product’s utility or quality and

of the benefits of owning or using the brand.

Comparison

 This type of execution involves a direct or indirect comparison of a brand against the
competition.

Testimonial

 Many advertisers present their marketing communication messages in the form of a

testimonial whereby a person speak on behalf of the product based on his or her
personal use of and/or experiences with it.
 Slice of Life

 This type of execution is often based on a problem/solution type of format. The ad

attempts to portray a real-life situation involving a problem, conflict or situation
consumers may face in their daily lives. The ad then focuses on showing how the
advertiser’s product can resolve the problem . Example : Dettol ads

Animation

 This technique used animated characters or scenes drawn by artists or on computer.

Personality Symbol

 This type of execution involves the use of a central character of personality symbol to
deliver the marketing communication message and with which the product can be
identified. The personality symbol can take the form of a person who is used as a
spokesperson, animated characters or even animals.

Imagery

 This type of appeal is often used for image marketing communication by showing an
imaginary situation or illusion involving a consumer and the product

Dramatization

 This execution technique creates a suspenseful situation or scenario in the form of a

short story.

 Dramatizations often use the problem/solution approach as they show how the
advertised brand can help resolve a problem.

Humour

 Humor can be used as the basis for an marketing communication appeal. However,
humor can also be used as a way of executing the message and presenting other types
of marketing communication appeals.

Combinations:

Direct advertisement sometimes reveals the competitors information. This advertisements

create comparative study of two product ( ex: Tide & surf excel. Horlicks and complain, etc.)
For the viewers. It creates legal rights of issue by the competitor on the advertiser to claim
upon the portrayals. The main benefit of this advertisement is to change the mind
psychologically on the consumer about the opinion of the product. ADVERTISING
BUDGET

Advertising budget is an estimation of total expenses that are to be incurred on advertising

during a given period of time. The advertising budget includes items of expenditure relating
to advertising programmes, cost of space, advertising material (including advertising copy)
production expenses, media expenses, agency commission and advertising research etc. In the
most elementary form, it states the proposed advertising expenditure and informs and
suggests the company management of the anticipated cost of executing the advertising plan.
It is the translation of advertising plan into money. The advertising budget must be realistic,
flexible and adequate for the advertising programmes. The advertising budget must consider
the advertising goals and the size must relate to advertising needs. It should be tailored to suit
the needs of the business enterprises. An advertising budget will show also how much, where
and for what purposes the amount provided in the budget is to be spent. The amount provided
in the advertising budget is not fixed arbitrarily but is determined on scientific lines keeping
in view the nature of the product, size of the market to be covered by the enterprise, types of
consumers and the strategy of the competitors etc. it is a plan for the company‟s future
advertising programme. It provides a programme of the best assortment of types of
advertising to be undertaken along with its time table and frequency. In addition to planning
function, the advertising budget also serves as a control of advertising expenditure.

1. Collection of Data and Preparation of Advertising Budget : The starting point of any
advertising budget process is the determination of the size of advertising
appropriation. The requisite information keeping in view with the products,
packaging, target markets, advertising copy, new product introductions, types of
consumers, extent of competition along with the competitors‟ strategy, media
selection etc. is gathered. Having decided upon the above variables, the advertising
manager takes a decision on the very important issue „how much to spend‟ for
advertising. Once the total expenditure is arrived at, the next step is the apportionment
of this fund among various advertising units over a period. By advertising unit, we
mean a specific advertisement delivered through various media vehicles. The fund
allocation has to take into account the market potential within various segments, the
time 147 period and the geographical areas over which advertising will be spread in
accordance with the overall advertising strategy.
2. 2. Presentation and Approval of the Budget : After the preparation of advertising
budget, the next step in a budget making process, is to present the same before the top
management through the chief of the marketing division for necessary approval. In
some organizations, there is a separate budget committee, comprising of the
representatives of the financial and other functional areas. The budget committee or
the top management, as the case may be, will evaluate such proposed expenditure to
achieve the targeted sales in a given budgeted period. Since advertising budget is
employed to increase sales, the advertising budget must be compatible with the sales
goals of the company. Besides increasing sales, it should be adequate enough for the
new product to make a successful entry in the chosen segment of the market. After
considering all these factors if satisfied, the budget committee or the top management,
as the case may be, will finally accord his approval over the budget proposals and thus
will return the same to the advertising manager for execution.
3. Budget Execution : After the approval, the next step in budget making process is the
execution of the budget. During the execution of the budget, the advertising manager
has to exercise monitoring control so that the funds that have been allocated are spent
 in accordance to the approval plan and in economical manner. Whenever there are
critical changes in the marketing situation, necessitating an adjustment in the
advertising support, the necessary modifications should be effected in the advertising
budget. That is why, advertising budgets should be flexible and provision is made for
the contingency account to face the critical changes in the marketing environment.
The advertising manager should be duly authorized by the budget committee or the
top management for making the required modifications etc. as and when required.
4. Control of Budget: The fourth and the last step in the budget making process is to
have a control over the budget. It is the prime duty of the advertising manager to see
whether the actual expenditure coincide with the budgeted expenditure or not. The
advertising manager should also see that the amount appropriated for advertising is
being used only on the item and activity as expressed in the budget.

ADVERTISING RESEARCH

Advertising research is the systematic, scientific and continuous process of studying

consumers within the context of market situations, product attributes and competitors'
strategies. A well-conducted research programme provides inputs that are the foundation
of an advertising campaign.

Definition

Advertising research is defined as the systematic gathering recording and analysing of

data relating to the effectiveness of advertising.

Need for Advertising Research :

1. Target Audience : It can be identified through ad research and accordingly the message
can be directed to the right audience.

2. Media Mix: It enables to determine the proper media mix that can be employed to run
the ad campaign. Proper media is selected to reach more effectively to particular groups
of potential customers.

3. Unique Selling Proposition (USP) : Advertising research helps to discover USP that
can be effectively presented in the ad.

4. Costly Errors can be minimised: Advertising research can prevent the advertiser from
making costly mistakes. It can be over budgeting, selecting wrong media, directing the ad
message to wrong audience etc.

5. Budget Amount: Advertising research also enables to determine the proper amount that
can be effectively spent on advertising. Proper budget amount can be allocated and
utilised using the ad at the right time and at the right frequency.

6. Layout, Copy and Illustration: It can help to develop effective layout, copy and
illustrations that would be most effective in gaining consumer attention and in inducing
effective readership of ad.
 7. Appeals in Advertising: Through proper conduct of consumer research, one can
understand their likes and dislikes, tastes and preferences. The study can be made of their
buying motives. Accordingly appropriate appeals can be developed to stimulate demand
among the various groups of prospects.

8. Competitive Advertising: Proper advertising research can help to develop not only
creative ads but also competitive ads. To face the challenges posed by competitors
claimed in their advertisement and other marketing efforts.

Research can be conducted to optimise advertisements for any medium: radio, television,
print (magazine, newspaper or direct mail), outdoor billboard (highway, bus, or train), or
Internet. Different methods would be applied to gather the necessary data appropriately.

There are primarily two broad types of advertising research viz. Pre-testing and Post-testing.

Pre-testing:
Pre-testing, also known as copy testing is a form of customised research that predicts in-
market performance of an ad, before it airs, by analysing audience levels of attention, brand
linkage, motivation, entertainment, and communication, as well as breaking down the ad’s
Flow of Attention and Flow of Emotion. (Young) Pre-testing is also used on ads still in rough
form – e.g., animatics or ripomatics. Pretesting is also used to identify weak spots within an
ad to improve performance, to more effectively edit 60’s to 30’s or 30’s to 15’s, to select
images from the spot to use in an integrated campaign’s print ad, to pull out the key moments
for use in ad tracking, and to identify branding moments.

Post-Testing:
Post-testing or Ad tracking, as otherwise known, can be customised or syndicated. Tracking
studies provide either periodic or continuous in-market research monitoring a brand’s
performance, including brand awareness, brand preference, product usage and attitudes.
Advertising tracking can be done by telephone interviews or online interviews—with the two
approaches producing fundamentally different measures of consumer memories of
advertising, recall versus recognition.
UNIT 4 and 5

ADVERTISING AGENCY

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.

The first Advertising Agency was William Taylor in 1786 followed by James “Jem” White in
1800 in London and Reynell& Son in 1812.

Definition

“An advertising agency is an independent organization of creative people and business people
who specialize in developing and preparing market plans, advertisements, and other
promotional tools”.

- American Association of Advertising

Goal :To promote the product through media, using creative ideas and to sell the product that
they advertise for.

Role of Advertising Agencies

1. Creating an advertise on the basis of information gathered about product

2. Doing research on the company and the product and reactions of the customers.
3. Planning for type of media to be used, when and where to be used, and for how much
time to be used.
4. Taking the feedbacks from the clients as well as the customers and then deciding the
further line of action

All companies can do this work by themselves. They can make ads, print or advertise them
on televisions or other media places; they can manage the accounts also. Then why do they
need advertising agencies? 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.

There are basically 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.
3. 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.

ORGANISATIONAL STRUCTURE OF AD AGENCY

With expansion and growth, the organizational structure of advertising agency becomes
complicated. Small Agencies usually have a simple structure compared to giant ones who
have ample funds and resources to carry out their large and growing operations in the field of
advertising.
Contact department:

 Contact Department supplies the necessary information to the clients.

 It tries to increase and retain the number of clients of the agency.
 It brings new customers, and this is crucial for increasing revenue, expansion, and
growth.
 It acts as a liaison authority (connection) between the advertising agency and its
clients.
 It serves as a sales promotion department of the ad agency.
 It finds out new clients and promotes the business of the ad agency.

The Contact Department of ad agency comes under accounting services. Account Executive
is the head of it. Efficient working of this department results in the quick growth of an ad
agency.

Media Department

 Select and use the best media possible to communicate the ad message to the
consumers. It is a crucial function because a wrong selection will result in the failure
of an advertised product.
 Prepare a media plan for clients.
 Media scheduling.
 Supervise the execution of the schedule.
 Buy or book an advertising time and space in media for the client.
  Keep contact with various media.

Media Department of ad agency comes under marketing services.

Copy Department

 The primary function of a copy department of an advertising agency is to prepare an

attractive copy-of-ad.
 The copy of the advertisement is very crucial. It is called the Heart of the AD. It is so
since it directly communicates the ad message to the consumers.
 The staff of this department includes copywriters, copy-supervisors, and others. They
use their talent of imagination, skill of putting flair and fluent language while
preparing a copy.
 The advertising may fail if the copy is not appealing to consumers. The copy-staff
works in close co-operation with the staff of the art and visualization branch.
 The head of the copy department is a Copy Chief. He directs the functioning of it.
 The copy branch is perhaps the largest department of an ad agency. It comprises of a
hard-working team of qualified professionals and experienced staff.
 Some agencies have a creative branch instead of it that does the entire work of
preparing an advertisement. Here, making an ad copy, artwork and actual production
of the ad are all linked together and executed entirely by this department alone.

Art Department

The Art Department of advertising agency uses the power of creativity and to make the AD
more appealing and agreeable. Its activity is not a mechanical one. It uses the principles of
real art (that works) as a guideline or base to present a product to the targeted audience.

 Transform the ad message into a self-communicating and mind-stimulating imagery.

 Prepare visuals and layouts for press advertisement.
 Make painted bulletins, posters, car cards, illustrations, slogans, etc.
 Art Director heads Art Department of an AD agency. He gets assistance from the
assistant art director, artists, visualizers and layout men.
 The artists of art department work together with copywriters to make the final copy of
advertisement more attractive.
 Both departments of Art and Copy operate under the overall guidance and supervision
of vice-president of creative services.
 Not all ad agencies have a separate art department. Some prefer to outsource their art-
related work to freelance artists.

Production Department

The copy of the advertisement is finalized by artists and copywriters. Afterward, it is sent to
the production department of an advertising agency for its further processing where its proper
mechanical production begins.
  The principal role of the production department is to process and produce a final ad.
 Following are the traditional work activities or functions of production department:
 Keep in contact with the printing press, typographers, photoengravers, etc.
 Assemble the typographic design patterns, engraved photos, illustrations, copy, etc.
and prepare the final advertisement.
 Show it to the client (advertiser) and get his approval for its release.
 Send it (after approval) to print media like magazines, newspapers, etc. for
advertising.
 With advancements in technology, the use of print media is gradually slowly down.
The digital media is now an emerging trend. As a result, some production houses have
started adapting to this change. Now their work also includes activities like:
 Keep in contact with digital artists, web designers, etc.
 Assemble the work of digital art and prepare a final digital-ad.
 Seek approval of it from an advertiser.
 Send it (after approval) to digital media like the Internet, e-magazines, web videos,
etc. mainly for online advertising.
 A production manager heads this department.
 Production dept., of the ad agency, comes under creative services.
 Not all ad agencies have a separate production unit. Some prefer to outsource their
production-related work to others.

Research Department

The success of an advertising agency greatly depends on the success of the client's ad
campaign. Today, achieving success is not an easier task. It is getting very difficult now-a-
days because of rising market competition. With so many alternatives and choices at hand,
already well-established goodwill and trust on older brands, it is now tougher to attract and
convince consumers. However, against all odds hope still exists.

To stand out from the plethora of availability and make the client's products and services
attractive needs not only an enormous amount of tedious work but also some good amount of
research.

One must remember that without knowing, What to do? How to do? When to do? and Where
to do? Nothing is possible to achieve. However, with right direction and approach, everything
can be made possible.

Therefore, the importance of research department in advertising is rising.

The function of research department of advertising agency is to:

 Carry out research and obtain the necessary information.

 Engage in a rigorous and critical analysis of the collected information.
 Use the findings (results) in different ways to achieving objectives.
 The research department collects information about:
  Market,
 Market competition,
 Market trends,
 Products and services,
 Competitors,
 Consumer behavior,
 Media trends,
 New trends in advertising, so on.
 Agency makes use of above information for executing an excellent ad campaign.
 The team of a typical research department usually comprises of:
 Investigators,
 Field workers,
 Analysts,
 Marketing assistants,
 Statisticians,
 Librarian and the staff of the library, etc.
 This team works under the guidance and direction a Research Director, who is the
head of the research department.
 Research department comes under marketing services of an ad agency.
 Although research activities are highly beneficial, they do consume an ample amount
of time, money, and resources:
 Usually, small ad agencies can't afford such resource-intense activities and, therefore,
prefer not to keep a separate research-branch. They either do research on a smaller
scale or use the data obtained by others.
 On its contrary, large-agencies prefer to maintain their research-subsidiaries and don't
take the risk of compromising the quality and genuineness of the obtained data.

Accounting and Finance Department

The role of accounting and finance department of an advertising agency is to look after its
financial and accounting matters.

The work activity of this dept., is as follows:

 Generate or raise invoices (bills) on clients (parties).

 Send a regular reminder to the client for the collection of unpaid dues.
 Book the expenses of vendor parties on a timely basis.
 Issue payments to vendor parties within or on the due date.
 Doing regular reconciliation (compare) of banks, vendors, and customers' ledger
accounts.
 Deposit government dues on a timely basis in authorized banks.

The staff of this department usually comprises of:

  Chief financial officer (CFO),
 Accounts receivable manager,
 Accounts payable manager,
 Accounts supervisors, and
 Accounts executives.

These staff works under the guidance and supervision of vice-president of accounting
services. He is the head of this department.

Public Relations Department

The chief responsibility of a public relations (PR) department is to maintain a cordial

relationship among three parties, namely, advertising agency, clients, and media.

The PR department carries out following work:

 Address the complaints of the customers.

 Solve their complaints as early as possible.
 Be a link or intermediary between ad-agency, clients, media and society.
 Create goodwill and maintain the reputation of the agency.
 Public Relations Officer (PRO) is the head of this department, and his subordinates
assist him regularly to maintain a cordial and healthy environment.

The PR department functions under the authority of management.

FUNCTIONS OF AD AGENCY

1. Attracting clients

Advertising agency needs clients (advertisers). Without them, it cannot survive.

Ad agency always tries to attract clients usually by giving ads in trade journals. It also seeks
their attention by offering them various services. It offers expert, cheap and quick services. It
maintains good relations with them. It tries to give them full satisfaction. It strives harder to
attain their goodwill and customer-loyalty.

2. Research function

 Advertising agency gathers information related to the client's product.

 It collects following information about a product under its research function:
 Features, quality, advantages and limitations of a product,
 Present and future market possibilities,
 Competition in the market,
 Situation in the market,
  Distribution methods,
 Buyers' preferences, so on.

Ad agency analyses (studies) all this collected information properly and draws conclusions
for its research. It helps in planning an advertising campaign, selecting proper media and
creation function.

3. Advertising planning

Advertising agency plans the entire ad campaign of its client.Advertising planning is a

primary function of an ad agency. It is done when its research function is completed. That is,
after analyzing the client's product, its competitors, market conditions, etc. It is done by
experts who use their professional experience to make a result-oriented advertising-plan.After
making the advertising plan, it is shown to the client. If the client likes and approves it, then
the plan is executed (put into action).

4. Creative function

Advertising agency put the advertising-plan into action under its creative function.Creation of
ads is the most important function of an ad agency. Generally, it involves activities like:

 Copy writing,
 Drawing photographs,
 Making illustrations, layouts, an effective ad message, etc.

These jobs are done by experts like copy writers, artists, designers, etc. These people are
highly skilled and creative. They make an advertisement more appealing. Attractive ads help
to increase the sales of the product.

The ad agency must always use fresh ideas for creating ads. It must neither use old tactics nor
copy the ad-campaign of other products.

5. Media selection

Advertising agency helps an advertiser to select a proper media (ad platform) to promote his
advertisement effectively.

Media selection is a highly specialized function of an ad agency. It must select the most
suitable media for its client's ad. It must choose media, which has a potential to give best
results for the lowest cost. It must select more than one media for the ad. For example, an
advertisement can be put on television, the Internet, newspapers, magazines, etc.

After selecting the media, the ad agency must maintain goods contacts with the media.

6. Advertising budget

Advertising agency helps an advertiser to prepare his ad budget. It helps him to use his
budget economically and make the best use of it.Without a proper advertising budget, there is
a risk of client's funds getting wasted or lost. If an advertiser suffers a loss, he may not bring
new projects. As a result, there is a possibility of losing a potential client that can bring more
business to an ad agency.

7. Coordination

Advertising agency brings a good coordination between the advertiser, itself, media and
distributors. This is a very important function. If coordination is proper, it will increase the
sales of the product.

8. Sales promotion

Advertising agency performs sales promotion. It helps an advertiser to introduce sales

promotion measures for the dealers and consumers. This helps to increase the sales of the
product.

9. Marketing research

Advertising agency helps its clients to solve their marketing problems. It does so by
conducting a marketing research for them.

10. Non-advertising functions

Advertising agency also performs many non-advertising functions:

 It fixes the prices of the product,

 It determines the discounts,
 It designs the product,
 It also designs its package, trademarks, labels, etc.
 These non-advertising services help an advertiser to increase its sales.

11. Public relations

Advertising agency does the public relations (PR) work for its clients. It increases the
goodwill between its clients and other parties like consumers, employees, middlemen,
shareholders, etc. It also maintains good relations between the client and media owner.

ISSUES OF ADVERTISING

Nature of Advertising

A public notice meant (a) to convey information and (b) invite patronage or some other
response. Inform and persuade ("stimulate demand"). From a marketing context, advertising
could be defined as "a paid form of non personal communication about an organization
and/or its products that is transmitted to a target audience through a mass medium." Therefore
one kind of promotional activity, separate from publicity (free), sales promotion (not forms of
communication), and personal selling (not impersonal nor through a mass medium).

Morally neutral: neither in itself good nor bad.

Reason: Advertising is a tool.

Main Objections to Advertising

 Advertising is deceptive—in whole or in part.

 Advertising weakens or undermines personal autonomy
 Advertising should not cynically exploit deep-seated emotions or short-circuit logical
thought processes. Good advertising appeals on many grounds, aesthetic, intellectual,
humorous, heart-warming. But it shouldn’t deprive of freedom of choice.
 Advertising promotes consumption as way of life.
 Advertising is a waste of resources (adds nothing to the value of consumer products
and diverts resources from the production of more valuable goods) and inefficient
(enables large firms with well-established brand-name products to create and maintain
monopoly conditions), largely a nonproductive activity that stifles competition.
Which would mean that it actually harms the system in general.
 advertising increases value of a product by creating buyers of the product, creates an
expanding market, and actually has been shown to lower prices. And there is no
guarantee that dollars saved on advertising could be utilized more efficiently,
especially in a surplus economy

Ethical Principles especially relevant to Advertising

General

 Principles of the moral order must be applied to the domain of media

 Human freedom has a purpose: making an authentic moral response. All attempts to
inform and persuade must respect the purposes of human freedom if they are to be
moral.
 Morally good advertising therefore is that advertising that seeks to move people to
choose and act rationally in morally good ways; morally evil advertising seeks to
move people to do evil deeds that are self-destructive and destructive of authentic
community
 Means and techniques of advertising must also be considered: manipulative,
exploitative, corrupt and corrupting methods of persuasion and motivation

Three Specific Moral Principles

RESPECT TRUTHFULNESS (deception objection)

 Never directly intend to deceive

 Never use simply untrue advertising
 Do not distort the truth by implying things that are not so or withholding relevant
facts
  "Puffery" is acceptable where it is consonant with recognized and accepted rhetorical
and symbolic practice

RESPECT THE DIGNITY OF EACH HUMAN PERSON (attacks autonomy objection)

 Do not exploit our "lower inclinations" to compromise our capacity to reflect or

decide either through its content or through its impact: using appeals to lust, vanity,
envy and greed, and other human weakness.
 Give special care to the weak and vulnerable: children, young people, the elderly, the
poor, and the culturally disadvantaged

RESPECT SOCIAL RESPONSIBILITIES (promotes consumption, empties communication,

objections)

 Example: Concern for the ecology—advertising should not favor a lavish lifestyle
which wastes resources and despoils the environment
 Example: Advertising should not reduce human progress to acquiring material goods
and cultivating a lavish lifestyle

Benefits of Advertising

Economic: useful tool for sustaining honest and ethically responsible competition by
informing people of the availability of rationally desirable new products and services and
improvements in existing ones

Political: helps counteract tendencies toward the monopolization of power by informing

people of the ideas and policy proposals of parties and candidates

Cultural: can exert a positive influence on decisions about media content; contribute the
betterment of society by uplifting and inspiring people and motivating them to act in ways
that benefit themselves and others. Importance of witty, tasteful and entertaining advertising,
even to the point of becoming art.1

Moral and religious: communicate messages of faith, patriotism, tolerance, compassion and
neighborly service, charity, health, education

Harms of Advertising

Economic: misrepresent and without relevant facts; subvert the media by pressure not to treat
of questions that are embarrassing and inconvenient; tout harmful or useless goods; move
people based on non-rational decisions; become a tool of "consumerism"; particularly
harmful in economically less developed countries

Political: costs of advertising can limit political competition to wealthy candidates or to those
willing to compromise their integrity; distorts the views and records of opponents
Cultural: corrupt culture and cultural values by contradicting sound traditional values; can
create superficiality, tawdriness, and moral squalor; ignore educational and social needs of
certain segments of the audience; contributes to stereotyping of particular groups

Moral and religious harms: deliberate appeals to motives of envy, status seeking, and lust
creates vulgar and morally degrading advertising; treat of religion in obnoxious and offensive
manners; can promote morally suspect or perverse products and practices

ISSUES OF ADVERTISING

Ethics means a set of moral principles which govern a person’s behavior or how the activity
is conducted. And advertising means a mode of communication between a seller and a buyer.

Thus ethics in advertising means a set of well-defined principles which govern the ways of
communication taking place between the seller and the buyer. Ethics is the most important
feature of the advertising industry. Though there are many benefits of advertising but then
there are some points which don’t match the ethical norms of advertising.

An ethical ad is the one which doesn’t lie, doesn’t make fake or false claims and is in the
limit of decency.

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

The main area of interest for advertisers is to increase their sales, gain more and more
customers, and increase the demand for the product by presenting a well decorated, puffed
and colorful ad. They claim that their product is the best, having unique qualities than the
competitors, more cost effective, and more beneficial. But most of these ads are found to be
false, misleading customers and unethical. The best example of these types of ads is the one
which shows evening snacks for the kids, they use coloring and gluing to make the product
look glossy and attractive to the consumers who are watching the ads on television and
convince them to buy the product without giving a second thought.

Ethics in Advertising is directly related to the purpose of advertising and the nature of
advertising. Sometimes exaggerating the ad becomes necessary to prove the benefit of the
product. For e.g. a sanitary napkin ad which shows that when the napkin was dropped in a
river by some girls, the napkin soaked whole water of the river. Thus, the purpose of
advertising was only to inform women about the product quality. Obviously, every woman
knows that this cannot practically happen but the ad was accepted. This doesn’t show that the
ad was unethical.

Ethics also depends on what we believe. If the advertisers make the ads on the belief that the
customers will understand, persuade them to think, and then act on their ads, then this will
lead to positive results and the ad may not be called unethical. But at the same time, if
advertisers believe that they can fool their customers by showing any impractical things like
just clicking fingers will make your home or office fully furnished or just buying a lottery
ticket will make you a millionaire, then this is not going to work out for them and will be
called as unethical.

MAJOR ISSUES

Generally, big companies never lie as they have to prove their points to various ad regulating
bodies. Truth is always said but not completely. Sometimes it’s better not to reveal the whole
truth in the ad but at times truth has to be shown for betterment.

Pharmaceutical Advertising - they help creating awareness, but one catchy point here is that
the advertisers show what the medicine can cure but never talk about the side effects of that
same thing or the risks involved in intake of it.

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

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

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

Ads for social causes - these types of ads are ethical and are accepted by the people. But ads
like condoms and contraceptive pills should be limited, as these are sometimes unethical, and
are more likely to lose morality and decency at places where there is no educational
knowledge about all these products.
Looking at all these above mentioned points, advertisers should start taking responsibility of
self-regulating their ads by:

 design self-regulatory codes in their companies including ethical norms, truth,

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

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

 Making the company answerable for all its activities

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

Other miscellaneous issues include gender portrayal and stereotypes, minimum quantity for
large amount etc.

ADVERTISING PRODUCTION TECHNIQUES

The common production techniques used in ad media are as follows:

Camera angle: angle at which the camera is positioned during a shot; high-angle shotsmake a
product look small, while low-angle shots make a product appear larger

Colour: used to convey meanings, associations, or feelings; for example, the color white
isoften associated with purity, while red is associated with warmth and energy

Copy: printed text in advertisements; copy can include catchy phrases, factual information,or
persuasive language intended to have an emotional impact

Editing: selection and arrangement of camera shots for a TV ad; each shot is selectedand
arranged to create a persuasive effect

Framing: position of a product and objects within the “frame” of a screen or an

image;arrangement of objects can convey ideas and relationships

Layout: design and arrangement of the text and visual elements in a print ad;
advertisersconsider the size of visuals; amount of copy; and placement of the product, logo,
and slogan

lighting: deliberate use of light and shadow to create mood or suggest certain feelings;
forexample, ads for greeting cards often use soft lighting and no shadows to match the
warmthand happiness that cards bring to recipients
Slogan: memorable phrase used in a series of ads; viewers remember the slogan andassociate
it with the product.

Special effects: computer-generated animation, manipulated video images, and fast andslow
motion used in TV ads; special effects are often used to capture viewers’ attention ormake
products look more exciting

Jingle: short, catchy tune used in TV and radio ads; usually mention the product name or
itsbenefits; effective jingles remain in people’s memories long after the ad is over, and
somebecome part of popular culture.

Music: popular songs or original compositions created specifically for an ad or a

product;advertisers select music that will enhance the image of the product or appeal to the
targetaudience; for example, classical music can convey a sophisticated image

Sound effects: sounds added to ads during the editing process, such as the sound ofcrunching
potato chips or the bubbling sound of soda being poured; effect is to make viewersthirsty or
hungry for the product

Voice-over: unseen commentator or narrator of a TV ad or radio spot; sometimes, actorswith

memorable voices deliver the voice-overs for ads