DEPARTMENTOF BBA

V SEMESTER BBA

MARKETING ELECTIVE

ADVERTISING ANDMEDIA
MANAGEMENT

STUDY MATERIAL

BY

PROF. ROOPA KV

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Unit 1: INTRODUCTION & BASIC CONCEPTS 12Hrs

 History of advertising;
 Advertising purpose and functions;
 Economic, social & ethical aspects of advertising;
 Advertising & the marketing mix,
 Advertising as a communication process;
 types of advertising;
 Major Institutions of Advertising Management.

Advertising:

MEANING
The term advertising is derived from original latin word ‘ADVERTERE’
which means to turn the attention.
Advertising is a marketing communication that employs an openly sponsored, non-
personal message to promote or sell a product, service or idea. Sponsors of advertising are
typically businesses wishing to promote their products or services. 

DEFINITION

Philip Kotler:

“Advertising is any paid form of non-personal presentation and promotion of goods,

services, or ideas by an identified sponsor.”

William Stanton.

Advertising consists of all activities involved in presenting to a group a non-personal, oral

or visual, openly sponsored identified message regarding a product, service, or idea. The
message, called an advertisement, is disseminated through one or more media and is paid
for by the identified sponsor”-

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HISTORY OF ADVERTISING

1. Egyptians used papyrus to make sales messages and wall posters (Papyrus /pə

ˈpaɪrəs/ is a material similar to thick paper that was used in ancient times as
a writing surface. It was made from the pith of the papyrus plant,)
2. Wall or rock painting for commercial advertising is another manifestation of an
ancient advertising form, 
3. In ancient China, the earliest advertising known was oral, as recorded in the Classic
of Poetry 
4.  A copper printing plate dated back to the Song dynasty used to print posters in the
form of a square sheet of paper with a rabbit logo with "Jinan Liu's Fine Needle
Shop" and "We buy high-quality steel rods and make fine-quality needles, to be
ready for use at home in no time" written above and below [11]is considered the
world's earliest identified printed advertising medium.[12]
5. Thomas J. Barratt of London has been called "the father of modern advertising". [14]
[15][16]
 Working for the Pears Soap company, Barratt created an effective advertising
campaign for the company products, which involved the use of targeted slogans,
images and phrases. One of his slogans, "Good morning. Have you used Pears'
soap?" was famous in its day and into the 20th century
6. In June 1836, French newspaper La Presse was the first to include paid advertising
in its pages, allowing it to lower its price,
7. 1920- radio
8. 1950- Commercial Television
9. 1980 – cable television
10. 1990 – Online advertising

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 5 M’S OF ADVERTISING:

FEATURES OF ADVERTISING:

1. Provides information
2. Paid form
3. Non personal
4. Identified sponsor
5. Basically for persuasion.
6. Any form- Print/electronic
7. Can be for Goods, Services, Awareness or An idea.
8. Mass communication
9. Target audience
10. Is an art, science and profession
11. An important element of marketing mix
12. Regulated by government. – ASCI- Advertising standards council of india

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Features of Advertisement

1. It is a paid form of communication:

Advertisements appear in newspapers, magazines, television or cinema screens because the
advertiser has purchased some space or time to communicate information to the prospective
customers.

2. It is a non-personal presentation of message:

There is no face-to-face contact with the customers. That is why, it is described as non-personal
salesmanship. It is a non- personal form of presenting products and promoting ideas and it
supports personal selling. It simplifies the task of sales-force by creating awareness in the minds
of potential customers.
3. The purpose of advertising is to promote idea about the products and services of a
business:
It is directed towards increasing the sale of the products and services of a business unit.

4. Advertisement is issued by an identified sponsor:

The identity of the businessman issuing the advertisement must be disclosed. Non-disclosure of
the name of the sponsor in propaganda may lead to distortion, deception and manipulation.
Advertisement should disclose the sources of opinions and ideas it presents.

5. Mass Communication
An advertisement is a form of mass communication that focuses on delivering a message to a
specific audience. This audience can be made up of a group of people or a specific individual
(listeners, readers or spectators).

There are several tools used by a commercial to communicate, such as promotion, one-to-one
marketing and guerrilla advertising.

6. Includes different types of communication

An advertisement can be given in an oral, written or audiovisual format. Has a presence in
different media, including newspapers, magazines, leaflets, television, film, radio, among other
mass media.

That is, an advertisement is issued by any channel that can ensure its exposure to the public.

Some authors define it as a printed, written, oral or illustrated item that contributes to the art of
selling.

In this way, its main purpose is to place itself in the group of individuals individually or
collectively in favor of the interests of the promoter.

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7. Applicable to several industries
The commercials are a popular and widely used form of communication destined to catch the
attention of a specific public.

This type of advertising is not only used by private businesses, it can also be used by museums,
non-profit organizations, government agencies, educational institutions and other entities that
want to attract the attention of their target audience (Characteristic of an effective advertising,
2013).

8. Art, science and profession: Advertising is art, science and a profession, and this is now
universally accepted. It is an art as it needs creativity for raising its effectiveness. It is a science as
it has its principles or rules. It is also a profession as it has a code of conduct for its members and
operates within standards set by its organized bodies. In its field, AD Agencies and space brokers
function as professionals.
9. The element of a marketing mix: Advertising is an important part of a marketing mix. It
supports the sales promotion efforts of the manufacturer. It makes a positive contribution to sales
promotion provided other elements in the marketing mix are reasonably favorable. It is alone
inadequate for promoting sales. Many companies now spend huge funds on advertisements and
public relations.
10. Publicity of goods, services, ideas and event events.
It is primarily for giving information to consumers. This information is related to the features and
benefits of goods and services of different types. It offers new ideas to customers as its contents
are meaningful. The aim is to make the popularize ideas and thereby promote sales. For example,
an advertisement for family planning, family welfare, and life insurance is useful for placing new
ideas before the people.

PURPOSE OF ADVERTISING:

To create awareness:
One of the most widely accepted purpose of advertisements is to increase the recognition of a
brand name or product, or to communicate information about the availability of the product to the
public. This is an important objective from many points of view.
First, when a new product enters the market, it does not easily gain the favour of the buyers unless
they are well informed about it. That is, awareness about the product must exist before a
favourable attitude toward the brand can be developed. Awareness about the brand is all the more
important when several brands compete with each other.

To Reminding buyers to use the product:

For discretionary items having an irregular or unusual pattern, an appropriate advertising policy
must aim at stimulating the primary demand. To attain this objective, the buyers must be reminded
not only to use the product but also to restock it.

To change belief about brand:

If an attribute is already considered important, buyer will examine the relative strength of different
brands with respect to that attribute. Accordingly, the purposes of advertisements are to improve
the buyer’s rating with regard to the product advertised vis-a-vis the other competing brands.
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When the attribute of a product is not peculiar, advertisements are floated to establish the
superiority of product over other competing brands.

To promote direct sales:

In some cases, advertising is used for the purpose of persuading the customer to place an order for
the product. Mail order houses through leaflets and catalogs, advertise their products in such a
manner that customers are convinced of their value and are tempted to write to the institution to
get the product without going to a shopping mall or without going into further details about the
product.

Products like books, ready-to-wear garments, slimming machines, toys and sports goods can be
profitably sold by direct mail advertisements. Through such advertisements, the company lays
stress on price appeal, and uses such slogans as “direct from factory to you.”

To build Company’s Image:

The general purpose of advertisements is to build a company’s image. Practically all companies
try to build their image through advertisements. Some consider it as the primary objective of
advertisement.

For example, Godrej, Lakme, Vimal, VIP have built up an image through advertisement. It is
largely assumed that if the company has some image or reputation in the market, it will be easy to
sell its product. For example, Vimal’s clothing is very costly; yet it has good sales because of its
image.

To Preview New Trends

Previews about the virtues of new products, services and ideas motivate consumers to obtain them
because they don't want to be left out. Advertising lets consumers in on up-and-coming trends and
new markets. They offer coupons, rebates and trial offers on new products, services or ideas to
recruit new customers and induce existing customers to try things. Advertisers preview new or
improved products, services and ideas to consumers in order to appeal to their sense of wanting to
be in the know about leading edge trends.
Previewing new trends is a technique employed by advertisers that capitalizes on consumers'
desires to "keep up with the Jones" by owning the latest and greatest product, service or idea.

To Display Competitive Pricing

Advertising displays consumer goods with competitive prices relative to the current market, thus
educating consumers about what things should cost. Advertising lets you know what the
competition is doing, when the next sale is, and how you can receive the latest coupon or rebate
and seeks to assure you that you are receiving the best value for your money.

To Identifying Brands and Products

Products, services and ideas are sold through businesses that are differentiated by their brand
identities. Brand identity is communicated to the public via advertising. Consumers build
emotional relationships with certain brands with which they become increasingly familiar through
the years, thanks to advertising.

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T o Persuade Consumers to Purchase
Powerful, visual advertising presentations compel consumers to purchase goods, services and
ideas as a way to achieve emotional fulfillment. Persuasion is the core mission of advertising.
Advertising tells you how the product, service or idea you are considering will improve your life.
According to Jeremiah O'Sullivan R, author of "The Social and Cultural Effects of Advertising,"
advertising feeds on the concepts of ideology, myth, art, sexual attraction and religion.

BENIFITS OF ADVERTISING:

Benefits to Manufacturers and Traders:

It pays to advertise. Advertising has become indispensable for the manufacturers and
distributors because of the following advantages:

(i) Advertising helps in introducing new products. A business enterprise can introduce itself and
its products to the public through advertising.

(ii) Advertising develops new taste among the public and stimulates them to purchase the new

product through effective communication.

(iii) Advertising assists to increase the sale of existing products by entering into new markets and

attracting new customers.

(iv) Advertising helps in creating steady demand of the products. For instance, a drink may be

advertised during summer as a product necessary to fight tiredness caused by heat and during

winter as an essential thing to resist cold.

(v) Advertising helps in meeting the forces of competition in the market. If a product is not

advertised continuously, the competitors may snatch its market through increased advertisements.

Therefore, in certain cases, advertising is necessary to remain in the market.

(vi) Advertising is used to increase the goodwill of the firm by promising improved quality to the

customers.

(vii) Advertising increases the morale of the employees of the firm. The salesmen feel happier

because their task becomes easier if the product is advertised and known to the public.

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(viii) Advertising facilitates mass production of goods which enables the manufacturer to achieve

lower cost per unit of product. Distribution costs are also lowered when the manufacturer sells the

product directly to the customers. Advertising also facilitates distribution of the product through

the retailers who are encouraged to deal in the advertised products

Benefits to Customers:

Advertising offers the following advantages to customers:

(i) Advertising helps the customers to know about the existence of various products and their

prices. They can choose from the various products to satisfy their wants. Thus, they cannot be

exploited by the sellers.

(ii) Advertising educates the people about new products and their diverse uses.

(iii) Advertising increases the utility of existing products for many people adding to the amount of

satisfaction which they are already enjoying.

(iv) Advertising induces the manufacturers to improve the quality of their products
through research and development. This ensures supply of better quality products to the
customers

Benefits to Society:

The whole society is benefitted because of advertisement in the following ways:

(i) Advertising provides employment to persons engaged in writing, designing and issuing

advertisements, and also those who act as models. Increased employment brings additional

income with the people which stimulate more demand. Employment is further generated to meet

the increased demand.

(ii) Advertising promotes the standard of living of the people by increasing the variety and quality

in consumption as a result of sustained research and development activities by the manufacturers.

(iii) Advertising educates the people about the various uses of different products and this increases

their knowledge. Advertising also helps in finding customers in the international market which is

essential for earning foreign exchange.

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(iv) Advertising sustains the press, and other media. It provides an important source of income to

the press, radio and television network. The customers are also benefitted because they get

newspapers and magazines at cheaper rates. The publishers of newspapers and magazines are

benefitted because of increased circulation of their publications. Lastly, advertising also

encourages commercial art.

ASPECTS OF ADVERTISING:

The economic, social and ethical aspects play a significant role in enhancing business. The
advertising brings development of the economy by enhancing demand. It encourages
people to purchase goods and services. Social advertising focus on social concerns and
awareness for human being.
The various stake holders such as business houses, government, profit and nonprofit
organizations contributes towards the welfare and well being of the society. Ethics is the
most important feature of the advertising industry. It should avoid attacking competitors
unfairly; it shall be free from offensive to public decency etc…..

A) ECONOMIC ASPECTS OF ADVERTISING

1. Enhance product value: Advertising increases product value through brand image. most
of them prefer to purchase the products which are advertised in the market .
2. Enhance product utility: Advertising educates customer about the product, Features and
advantages.
3. Reduce prices: consumer price includes the production costs, selling cost, and
distribution costs. In the long run advertising leads to more sales and leads to increased
production and decreased cost of the product.

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 4. Reduce production cost: In long run advertising reduces the production cost. The plant
capacity will expand over a period of time. The producers can purchase large quantities of
raw materials at discounted rates from suppliers and achieve economies of scale.
5. Reduce distribution costs: Distribution costs includes sales promotion costs. Effective
advertisements cut down the expenditure on personal selling and reduce distribution costs.
6. Enhances demand and choice: Effective advertising gives advertiser to introduce new
brands. And helps in convincing customers to purchase the advertised products.
7. Overcome competition: effective advertisements help companies to sustain present
competition. It establishes identity and gains customer confidence.
8. Enhances economic growth: Helps in educating people , Employment and job growth .

B) SOCIAL ASPECTS OF ADVERTISING:

The advertisements which deal with social causes aimed at welfare and well being of the people is
called social advertisement. It is a social institution. It is a continuous social process.

The social process stands for all social activities that are performed to achieve the goals and
objectives of an individual and the society.

Example:- the advertising which communicates the message to save oil, save water, save energy
etc

Characteristics

1. It is public relations advertising

2. It focuses on the matters of social
importance.
3. It initiates public action towards the
social problems.
4. It has concern to rural people.
5. It ensures consumer welfare.

SOCIAL ASPECTS OF ADVERTISING:

1. Health care: Advertising on health and awareness. Ex AID’s , Dengue

2. Child Care: Educating public on child care and safety Ex: Advertising related to
nutrition and child development
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 3. Education: Advertising related to right to education to women and positive change in
the society
4. Dowry Prevention: Helps in eradicating the problem of dowry
5. Family welfare: Advertising on population and immunization
6. Safety problems: Advertising educating public to follow traffic rules and prevent
Accidents
7. Resource prevention: Advertising on energy conservation, save environment , save
electricity and save water.

ETHICAL ASPECTS IN ADVERTISING:

1. Truth in advertising : advertisements must provide truthful information

2. Avoid misrepresentation : The advertiser must not misinterpret the product attributes like
quality, benefits and features
3. Avoid misuse of Endorsement and testimonials: The testimonials and endorsements
must reflect the genuine and truthful opinions from public or movie stars or sportsmen.
4. Avoid Illusion : Advertiser should avoid the advertisements which claims illusion like
reduction of weight, increasing fairness.
5. Avoid psychoactive ads: The advertising which has negative emotional impact on target
customers, anxiety.
6. Deceptive advertising: Advertisements must be transparent and reveal correct
information.
7. Bait and switch tactics: It is illegal to advertise a product when the company has no
intention to sell the product at advertised price.
8. Advertising on children: Advertisements should not have bad impact on children when
they are advertising products related to children like chocolates, toys and biscuits.
9. Advertising claims to be true: The claims promised in advertisements must be true. like
sore throat, kills 100 percent germs.
10. Guarantees and warrantees: information related to guarantee, conditions must be
disclosed in the advertisements.

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 ADVERTISING AND MARKETING MIX

Promotion Mix Place Mix

Personal selling, advertising, sales Channel of Distribution, Transportation,
promotion, Public Relation, Trade Fairs Warehousing, Inventory Level etc…
and Exhibitions Etc…

Marketing Mix
Product Mix Price Mix
Product design, Product Quality, Pricing Policies, Pricing strategies,
Product Line, Product Range, Branding, Credit Terms, Delivery Terms, Margin,
Labeling, Package, After sale services, Resale Price Maintenance.
Guarantees and warranties etc..

Prentice Hall, © 2009

1. ADVERTISING AND PRODUCT:

A product is a set of physical elements. It is a tangible good or an intangible service. The

marketers can expand the current product mix by enhancing the depth and width of a
product lines. The attributes of product mix includes….
To make effective advertising the advertiser needs to answer the following questions:
a). How to position the product?
b). How to enhance the brand image ?
c). How to make optimum utilization of resources?
d). What are the product development strategies?
e). What are the strategies at different stages of life cycle.
f). What are the types of media for advertising.

Advertising plays vital role in providing information and educating the customers about
their products and services in the following ways

1. Awareness:
One of the important roles of advertising is to create awareness of the product or services such as
brand name and price. The awareness of the product or services can be created through
highlighting the unique features of the brand. Nowadays, due to intense competition it is not just
enough to create awareness, but top of mind awareness is needed.

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2. Information:
Advertising helps to inform the target audience about the product. Providing information is
closely related to creating awareness of the product. Potential customers must know about a
product, such as product features and uses.

Product information is very much required, especially when the product is introduced in the
market, or when product modification is undertaken. Proper product information can help the
consumers in their purchase decision.

3. Persuasion:
When business firms offer similar products, the firm must not only inform the customers about the
product’s availability, but also persuade them to buy it. Through persuasive messages, the
marketers try to provide reasons regarding the superiority of their products as compared to others
available in the market. Persuasion can be undertaken through creative advertising messages,
product demonstration at trade fairs, offering free gifts, premium offers and organizing contests.

. Attitudes:
Promotion is required to build or reinforce attitudes in the minds of target audience. The
marketers expect the target audience to develop a favourable attitude towards their brands.
Positive attitude towards the brand helps to increase its sales. Through promotional techniques
like advertising, the marketer can correct negative attitude towards the product, if any. Negative
attitude can also be corrected through public relations and advertising.

5. Reminder:
If target customers already have a positive attitude towards a firm’s product or service, then a
reminder objective may be necessary. The reminder objective is necessary because the satisfied
customers can be targets for competitors’ appeals. Well-established brands need to remind the
customers about their presence in the market. For instance, ‘Raymond – the complete man’
campaign is designed to remind the customers.

6. Brand Loyalty:
Advertising helps to develop brand loyalty. Brand loyalty results in repeat purchases and
favourable recommendations to others by existing customers. Sales promotion, effective personal
selling, timely and efficient direct marketing, and other techniques help to develop brand loyalty.

7. Brand Image:
An advertiser helps to develop a good image of the brand in the minds of target audience. There
are several factors that can be of help to audience. There are several factors, such as the character
of the personality that endorses the brand, the content of the advertising message, the nature and
type of packaging and the type of programmes or events sponsored, that can help to develop brand
image in the minds of target audience.

8. Counter Competitors’ Claims:

The marketer may counter the claims made by the major competitors. For instance, competitive
advertising is undertaken to counter the claims made by competitors either directly or indirectly.
With the help of creative advertising, the marketers can claim the superiority of their brand. The
marketer may also undertake aggressive sales promotion to counter the competition in the market.

9. Expansion of Markets:

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Successful ads results in expansion of the markets. A marketer may intend to expand markets
from the local level to the regional level, from the regional level to the national level, and from the
national level to the international level. For this purpose, the marketer may undertake various
techniques of promotion.

10. Educating the Customers:

Promotion may be undertaken to educate the customers. For instance, some of the advertising is
undertaken to educate the audience regarding the use of the product, handling operations, and so
on. Public awareness campaigns also educate the public regarding the negative effects of noise, air
and dirt pollution, social evils, and so on.

B) ADVERTISING AND PRICE:

The price is the amount a customer pays for the product. It is the exchange value of the
product. The advertiser needs to have effective pricing policies. They must ensure the profits
of the company and appropriate pricing for attracting customers.
The advertiser should set a price that complements the other elements of the marketing mix.
Advertising must give the details regarding
1. Price and MRP
2. Discounts and offers
3. Price bundling
4. Comparison pricing with competitors

C) ADVERTISING AND PLACE/DISTRIBUTION CHANNEL.

The place refers to physical distribution and storage of goods which is convenient for
consumers to access. The advertisers need to ensure the goods are available at the
convenient place and at the right time to the buyers.
The advertising plays a significant role in effective distribution and market expansion.
The attributes of place mix includes channel of distribution etc.

Advertisements must include

1. The places where the goods are available- retailers, wholesalers, E-Retailers.
2. Transportation
3. Warehousing
4. Inventory levels
5. Timing of sales

D) ADVERTISING AND PROMOTION:

The promotion informs, persuade and remind customers about products or services. It
consists of advertising, publicity, personal selling and sales promotion technique…
The advertising helps the sellers to face and overcome competition. It helps to develop
brand image. It enhances brand loyalty.

Advertising through
1. Personal selling. Training the employees
2. Proper selection of Message
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 3. Proper selection of timing and frequency.
4. Proper selection of endorsers
5. Proper selection of media

Factors Influencing Marketing Mix

Some of the factors influencing marketing mix are.

1. Target Market
2. Product type
3. Purchase decision
4. Product life cycle
5. Advertising budget
6. Media preference
7. Competitors strategies

1.Target Market : In order to select the best methods to reach different target markets, the
advertiser needs to have different advertising to different customers the advertisers need to know
the answers of the following questions.
2. Product Type:- the different product requires different types of promotional activities. The
marketing of technical products demands professional selling. It helps the customer to understand
the technicality of the product.
3. Purchase decision: The purchase of industrial goods is time consuming process. The
industrial products are very expensive and technically sound. The purchase decision is a
complicated process. It needs proper brain storming by various stakeholders such as production
manager, purchase manager, finance manager etc….

4.. Product Life Cycle:- the stage in the product life cycle affects the type and amount of
promotion to be used. The products in the introductory stages need more promotion.

5. Advertising Budget: The advertising budget affects a reach and frequency of advertisement.
The reach in advertising means the number of people exposed to the message. The frequency in
advertising means how often people are exposed to the particular advertisement.

6. Media Preference:- the different types of consumers prefer different types of media.
Example:- most of the students are found of cricket. They prefer to watch sports channels

7. Competitors Strategies. The advertising varies according to competition. In case the

competitors' is making use of extensive advertising strategies. The advertiser needs to come out
with better advertising strategy in the market compared to its competitors.

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 ADVERTISING AS A COMMUNICATION PROCESS:

Communication is derived from the Latin word “ communis” meaning to share the
communication is the process which involves conveying information through the exchange of
facts, ideas, opinions, thoughts, message or information, by means of speech, visuals, signals,
writing or behavior B\W two or more persons.

Elements of advertising communication

1. Advertiser: company which wishes to communicate about their products or services.

2. Advertising Agency: Companies outsource the advertising to the ad agencies.

3. Media : the vehicle used for the delivery of the message like newspaper , channels,
radio, Television, outdoor display, internet, social media.

4. Target Audience: The audience includes both users and non users of products and
services. Generally for the mass audience, it includes readers, listeners, and viewers.

Communication process as such must be considered a continuous and dynamic inter-action, both
affecting and being affected by many variables.

(1) Sender:
The person who intends to convey the message with the intention of passing information and ideas
to others is known as sender or communicator.

(2)Message :

This is the subject matter of the communication. This may be an opinion, attitude, feelings, views,
orders, or suggestions.
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(3) Encoding:
Since the subject matter of communication is theoretical and intangible, its further passing
requires use of certain symbols such as words, actions or pictures etc. Conversion of subject
matter into these symbols is the process of encoding.

(4) Communication Channel:

The person who is interested in communicating has to choose the channel for sending the required
information, ideas etc. This information is transmitted to the receiver through certain channels
which may be either formal or informal.

(5) Receiver:
Receiver is the person who receives the message or for whom the message is meant for. It is the
receiver who tries to understand the message in the best possible manner in achieving the desired
objectives.

(6) Decoding:
The person who receives the message or symbol from the communicator tries to convert the same
in such a way so that he may extract its meaning to his complete understanding.

(7) Feedback:
Feedback is the process of ensuring that the receiver has received the message and understood in
the same sense as sender meant it

(8) Noise: noise is any disturbance or interruption that can creep in at any point of the
communication process.

CLASSIFICATION OF ADVERTISING

1. Classification on the basis of geographical area

 Local advertising: local markets by local outlets like retail stores, consumer durables
through posters, pamphlets, hording, local newspaper, local channels.
 Regional advertising : Undertaken by regional distributors ( state wise )
 National advertising : Advertisements by companies like Soap, shampoo.
 International advertising : Companies which sell their products worldwide does the
advertising in the world like Coca-Cola, Pepsi.

2. Classification on the basis of geographical area.

 Consumer advertising : Products which are advertised to the end-users of the consumer
goods like Tea, coffee, bike, car.
 Industrial advertising : Advertising done for the industrial goods like machinery, and
industrial goods in trade dictionaries, business magazines.
 Trade advertising: Advertising which attracts whole sellers and retailers by motivating to
purchase products for sale purpose. EX: Metro.
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 Professional advertising: professional groups like doctors, lecturers, lawyers, engineers.
Ex: Doctor recommends patient for purchasing a particular brand of medicine.

3. Classification of the basis of media

 Print media advertising: Advertising on magazine, newspapers, journals, handbills,

pomp lets.
 Electronic advertising: Advertising on mobile, radio, Television, internet, Social media.
 Outdoor media : Banners, Posters, Hoardings, Electronic bill boards.
 Other media: Calendars, Dairies,

4. Classification on the basis of advertising stages

 Pioneering stage advertising: To create awareness on new products.
 Competitive stages advertising : Advertising of well established brands in market
 Retentive stage advertising: Reminder advertisements to retain the market in long run.

5. Classification on the basis of purpose

 Direct action advertising: undertaken to obtain immediate response or action. Ex:
discount sales, flash sales.
 Indirect action advertising: advertising by comparing with competitor. Ex magi and
yippee- non sticky.
 Direct- response of advertising: Direct advertising by the manufacturer to consumer
without any intermediary Ex: Mail, SMS, Calls.
 Primary demand creation advertising: Advertisements undertaken by trade associations
or corporative groups. Ex: Coffee board advertising to consume more coffee.
 Selective advertising : marketing of selective brands only. Selective advertising focuses
on creating a demand for a specific brand of product or service. For example, soda
manufacturers often promote each brand they make with a dedicated marketing campaign.
In contrast, primary advertising focuses on creating a demand for a general product class
or category.

6. Classification on the basis of functions

 Social add: under taken by non commercial organizations for social cause Ex: Collecting
donations for Flood purpose.
 Political add: Advertising undertaken to promote political parties to vote and support
them.
 Product adds: Advertising of tangible products. EX: Watch. Dress.
 Service adds: Advertising of services like banks, airlines, hotels, educational institutions.
 Institutional add/ corporate adds: to recognize the corporate firms.

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 MAJOR INSTITUTIONS OF ADVERTISING MANAGEMENT

1. GOVERNMENT :

Advertising is regulated by government authorities. Government implements some laws and

regulations for the advertiser and the advertising agencies.

 The consumer protection Act, 1986 and advertising

 Press Council of India Act, 1978
 Cable television regulation act, 1955 and Cable television amendment act, 2006
 Establishment of the ASCI (Advertisement standard council of India), 1985
 Food Safety and Standards Act, 2006- Section 53 of this Act provides a penalty of up to
Rs. 10 lakhs for false and misleading advertisements relating to the description, nature,
substance or quality of any food;
 Drug and Magic Remedies (Objectionable Advertisement) Act, 1954- This Act
purports to regulate the advertisements of drugs in certain cases and to prohibit the
advertising for certain purposes of remedies alleged to possess magic qualities and to
provide for matters connected therewith;
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  Drugs and Cosmetics Act, 1940- Section 29 of the Act imposes penalty upon whoever
uses any report of a test or analysis made by the Central Drugs Laboratory or by a
Government Analyst, or any extract from such report, for the purpose of advertising any
drug. The punishment prescribed for such an offence is a fine which may extend up to five
hundred rupees and/ or imprisonment up to ten years upon subsequent conviction;
 The Monopolies and Restrictive Trade Practices, 1984 (herein after "MRTP Act") and
the Trade Marks Act, 1999 work in tandem to provide the basic structure that govern
Comparative Advertising. The Trademarks Act, 1999 has incorporated the provisions
related to this concept in Ss. 29(8) and 30(1). According to the statute Comparative
Advertising is permissible, with certain limitations as to unfair trade practices.

The Section 6 of this Act grants consumers the right to be informed about the quality, quantity,
potency, purity, standard and price of goods or services, as the case may be to protect the
consumer against unfair trade practices. Section 2(r) of the Act, under the definition the term
“unfair trade practice”, it also covers the gamut of false advertisements including
misrepresentations or false allurements. And to redress against such unfair trade practices on false
advertisements may be sought under the Act.

The Advertising Standard Council of India was established as a nonstatutory tribunal. It created a
self-regulated mechanism of introducing the advertising ethics in India. The ASCI judges the
advertisements based upon its Code of Advertising Practice, also known as the ASCI code. This
Code applies to advertisements read, heard or viewed in India even if they originate or are
published abroad so long as they are directed to consumers in India or are exposed to a significant
number of consumers in India.

2. COMPETITION:

Competitors also influence the organisations. Consumers will switch over to competitors brand if
not advertised effectively. Hence advertiser’s promotion strategy must be better than the
competitors.

Competitive advertising is used by companies as a way to differentiate from competitors. This

approach puts two brands side by side to show consumers the differences between the brands.
Some companies name the competitor, while others use vague phrases like 'the leading
competitor' and 'brand X.'

One example is the Apple vs. Microsoft campaign. Specifically, in 2006, Apple put out the 'I'm a
Mac versus I'm a PC' campaign. The goal of the campaign was to show that Apple is cool while
Microsoft is nerdy. PCs had become the norm in every household. This campaign was aimed at
getting the next generation to think outside the box and enjoy what technology has to offer. The
campaign released 60-plus ads and was successful in converting people to the Apple lifestyle.
Among the most popular rivalries of all time is that of Pepsi versus Coca-Cola. Almost everyone
you talk to has a favorite. There are even people that choose the restaurant they want to eat at
based upon which beverage brand is served. The two brands have positioned themselves
differently in the marketplace. Pepsi aims to be the trendy brand, while Coca-Cola takes a more
classic approach. However, there is a constant showing of taste tests and superiority claims within
their advertising.

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3. ADVERTISER:
The organisation or company communicating about their products. He is known as the
sponsor .
The budget available: A manufacturer may have a very colourful and bold plan of
advertising. He may be dreaming of advertising on a national television net-work and
films. If budget does not allow, then he is to be happy with a low budget media like his
news-paper and outdoor advertising. Instead of colour print in magazine, he may be forced
to go in for black and white. Thus, it is the resource constraints that decide the choice.

4. TARGET AUDIENCE:

The target audience might be the listeners, viewers, readers.

 Present customers
 Competitors customers
 Potentional users- (people interested to purchase)
 Non users- People who do not use your products

5. MASS MEDIA:
 Print media- newspapers,magazines,journals
 Electronic media- Television, radio, internet
 Outdoor media- posters, hoardings, electronic bill boards
 Direct mail- letters, SMS, E-mails.

6. ADVERTISING AGENCIES:

According to the AMA “ the advertising agency is defined as an independent business

organization, composed of creative and business people, who develop, repair and place
advertisements in advertising media for sellers seeking to find customers for their goods
and services”

An advertising agency, often referred to as a creative agency or an ad agency, is a

business dedicated to creating, planning, and handling advertising and sometimes other
forms of promotion and marketing for its clients. An ad agency is generally independent
from the client; it may be an internal department or agency that provides an outside point
of view to the effort of selling the client's products or services, or an outside firm. An
agency can also handle overall marketing and branding strategies promotions for its
clients, which may include sales as well.

Typical ad agency clients include businesses and corporations, on-profit organizations and
private agencies. Agencies may be hired to produce television advertisements, radio
advertisements, online advertising, out-of-home advertising, mobile marketing, and AR
advertising, as part of an advertising campaign

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Min functions of advertising agencies:

1 .Advertising and Marketing Plan

The primary role of advertising agencies is the creation of an advertising and marketing plan
specific to your business, product and brand. Ad agencies work with your business objectives,
keep within ad budgets and develop advertising and marketing campaigns to satisfy business
needs. Ad agencies pull all this together to provide a creative and compelling campaign intended
to engage the attention of potential customers and get them to buy your product or service.
2. Graphic Design, Copywriting and Printing
Full service agencies typically employ graphic designers and copywriters or contract with trusted
outside firms. Since printing is a specialized industry, agencies will handle this function through a
printing partner. Graphic design, copywriting and printing are vital elements of the overall ad
program, as poorly written, designed and printed advertising can hinder the effectiveness of the
campaign and may reflect poorly on the business.

3. Media Purchasing
Media purchasing, such as ads placed in magazines, newspapers, television broadcasts and radio
shows, is another role of a full service agency. Ad agencies have intimate knowledge of pricing,
effective scheduling and results-oriented media platforms that would involve considerable time,
research and effort for the business owner who chooses to act alone in these areas.
4. Web Marketing
From professional web design, publishing, page traffic reports and web page updates, full service
ad agencies can handle all the details. Website templates provided by internet service providers
and home web design programs can appear "homemade" and may not reflect a quality business
image. Professionally designed sites, such as those used by larger businesses, are almost always
created by professionals.
5. Tracking Results
Tracking and tweaking advertising is another role of full service ad agencies. If an ad isn't meeting
business objectives, the agency will investigate and analyze the cause and suggest new
approaches. Ad campaign success is the agency's primary goal, so it can get repeat business from
clients.
7 . RESEARCH SUPPLIERS

Market research companies conducting advertising research studies and surveys. Find firms that
generate advertising research information about what is being communicated through a specific
advertising vehicle.

Research companies like Nielsen .

 Identify the suitable media, creative areas,

 Understanding the purchase behaviour, consumer attitude, preference, motives.
 Competitors strategies
 Collect primary and secondary data, analyse and gives the information to the companies.

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