Advertising Management
Advertising Management
Advertising Management
Case: Mazda
6. Media Planning and Budgeting- Determining Media Plan, Media decisions- Analyzing
various Types of Media; Reach, Frequency and Impact, Scheduling Decisions,(DONE)
8. Advertising Organization and Regulation- Advertising Agency and its Functions, Structure,
Remuneration, Agency-Client Relationship, The Criteria for Agency Selection
Extra
1.Some terms
1) The medium is the general category of available delivery systems, which includes
broadcast media (like TV and radio), print media (like newspapers and magazines),
direct mail, outdoor advertising, and other support media.
2.The media vehicle is the specific carrier within a medium category. For example, Time
and Newsweek are print vehicles; 20/20 and 60 Minutes are broadcast vehicles.
3.Reach is a measure of the number of different audience members exposed at least
once to a media vehicle in a given period of time.
4.Coverage refers to the potential audience that might receive the message through a
vehicle. Coverage relates to potential audience; reach refers to the actual audience delivered.
5. frequency refers to the number of times the receiver is exposed to the media vehicle in a
specified period.
2. Developing media plan ka first step market analysis ka one of the part is to decide
where o promote, and BDI cdi two index technique to decide where to promote ( page no
312)
3.Scheduling
The primary objective of scheduling is to time promotional efforts so that they
will coincide with the highest potential buying times. For some products these times
are not easy to identify; for others they are very obvious. The scheduling strategy depends on
the objectives, buying cycles, and budget, among other factors.
Three scheduling methods are as follows :
How Much Reach Is Necessary? The more people are aware, the more are likely to move to
each subsequent stage. Achieving awareness requires reach—that is, exposing potential
buyers to the message.
New brands or products need a very high level of reach, since the objective is to make all
potential buyers aware of the new entry. High reach is also hierarchy, a promotional strategy
might use cents-off coupons or free samples. An objective of the marketer is to reach a larger
number of people with these samples, in an attempt to make them learn of the product, try it,
and develop favorable attitudes toward it. (In turn, these attitudes may lead to purchase.)
The problem arises because there is no known way of determining how much reach
is required to achieve levels of awareness, attitude change, or buying intentions, nor
can we be sure an ad placed in a vehicle will actually reach the intended audience.
If I expose everyone in my target group to the message once, will this be sufficient to create a
100 percent level of awareness? The answer again is no. This leads to the next question: What
frequency of exposure is necessary for the ad to be seen and to have an impact?
First you must know what these ratings points represent. A purchase of 100 GRPs
could mean 100 percent of the market is exposed once or 50 percent of the market is
exposed twice or 25 percent of the market is exposed four times, and so on.a purchase of 100
TRPs on one network would yield an estimated reach of 32 percent of the total households in
the target market.
The aggregate total (the sum) of the ratings is called Gross Rating Points or GRPs. The sum of
the ratings of a specific demographic segment may be called Target Audience GRPs or more
simply TRPs. The term GRPs is generic and may refer to household GRPs or to specific target
segment GRPs.
TRPs are a refinement of gross rating points, or GRPs. GRPs relate to the "total audience"
exposure to advertising messages, whereas TRPs relate to the "target audience" exposure. The
target audience, therefore, would be the percentage of the total audience tuned to that show
who are most likely to buy your product or service.
Each GRP equals 1 percent of the total audience; a TRP equals 1 percent of the target
audience. If 40 percent of total TV households saw your commercial one time, that would
translate into 40 GRPs. If your target audience was 50 percent of the total audience, that would
translate into 20 TRPs. Thus, GRPs and TRPs inform about the quantity of media weights, but
not the quality of the weights.
Although GRPs have their problems, they can provide useful information to the
marketer. A certain level of GRPs is necessary to achieve awareness, and increases in
GRPs are likely to lead to more exposures and/or more repetitions—both of which are
necessary to have an effect on higher-order objectives. Perhaps the best advice for purchasing
GRPs is offered by Ostrow, who recommends the following strategies:11
1. Instead of using average frequency, the marketer should decide what minimum frequency
goal is needed to reach the advertising objectives effectively and then maximize
reach at that frequency level.
2. To determine effective frequency, one must consider marketing factors, message
factors, and media factors. (See Figure 10-23.)
In summary, the reach-versus-frequency decision, while critical, is very difficult to
make. A number of factors must be considered, and concrete rules do not always
apply. The decision is often more of an art than a science.
5. Budgeting
Determining Relative Costs of Media To evaluate alternatives, advertisers
must compare the relative costs of media as well as vehicles within these media.
Unfortunately, the broadcast, print, and out-of-home media do not always provide the
same cost breakdowns, nor necessarily do vehicles within the print media. Following
are the cost bases used:
1. Cost per thousand (CPM). For years the magazine industry has provided cost
breakdowns on the basis of cost per thousand people reached. The formula for this
computation is
CPM =Cost of ad space (absolute cost)× 1,000/Circulation
Figure 10-24 provides an example of this computation for two vehicles in the same
medium—Time and Newsweek—and shows that (all other things being equal) Time is
a more cost-effective buy, even though its absolute cost is higher. (We will come back
to “all other things being equal” in a moment.)
2. Cost per ratings point (CPRP). The broadcast media provide a different comparative
cost figure, referred to as cost per ratings point or cost per point (CPP), based on
the following formula:
CPRP =Cost of commercial time/Program rating
An example of this calculation for a spot ad in a local TV market is shown in Figure
10-25. It indicates that Survivor would be more cost-effective than CSI.
3. Daily inch rate. For newspapers, cost effectiveness is based on the daily inch rate,
which is the cost per column inch of the paper. Like magazines, newspapers now use
the cost-per-thousand formula discussed earlier to determine relative costs. As shown
in Figure 10-26, the Detroit News costs significantly more to advertise in than does
the Chicago Tribune (again, all other things being equal).
A medium with a much higher costper thousand may be a wiser buy if it is reaching more
potential receivers. (Mostmedia buyers rely on target CPM (TCPM), which calculates CPMs
based on the targetaudience, not the overall audience.) CPM may also underestimate cost
efficiency. Magazine advertising space sellershave argued for years that because more than
one person may read an issue, the actual reach is underestimated.In addition to the potential for
over- or underestimation of cost efficiencies, CPMs are limited in that they make only
quantitative estimates of the value of media.
1. Insufficient Information
2. Inconsistent Terminologies
3. Time Pressures Difficulty
4. Measuring Effectiveness
7..
NOTE- MEDIA PLANNING WALE QUESTION MEIN EXMAPLE PUCHE TOH COMPUTER
EXAMPLE DE RKHA HAI BOOK M END ME
The media plan determines the best way to get the advertiser’s message to the market.
In a basic sense, the goal of the media plan is to find that combination of media that
enables the marketer to communicate the message in the most effective manner to the
largest number of potential customers at the lowest cost.
The activities involved in developing the media plan or the decision involved are
Developing the media plan ( actually decisions and this can be combined)
Where to Promote?
firm should spend advertising and promotion dollars where they will be the most effective—that
is, in those markets where they will achieve the desired objectives. it is not always possible to
measure directly the impact of promotional efforts. certain tactics
can assist the planner in making this determination egUsing Indexes to Determine Where to
Promote. ( survey of buying power index, BDI, CDI)
(2) establishment of media objectives: Media objectives are the goals for the media program
and should be limited
to those that can be accomplished through media strategies. An example of media
objectives is this: Create awareness in the target market through the following:
• Use broadcast media to provide coverage of 80 percent of the target market over
a six-month period.
• Reach 60 percent of the target audience at least three times over the same sixmonth
period.
• Concentrate heaviest advertising in winter and spring, with lighter emphasis in
summer and fall.
Geographic Coverage
The objective of weighting certain geographic areas more than others makes sense, and the
strategy of exerting more promotional efforts and dollars in those areas follows naturally.
Snow skiing is much more popular in some areas of the country than in others.It may be
possible to promote an interest in skiing in the Southeast, but a notable increase in sales of ski
equipment is not very likely, given the market’s distance from snow.
Scheduling
The primary objective of scheduling is to time promotional efforts so that they
will coincide with the highest potential buying times. For some products these times
are not easy to identify; for others they are very obvious. The scheduling strategy depends on
the objectives, buying cycles, and budget, among other factors.
Three scheduling methods are as follows :
Reach versus Frequency: Since advertisers have a variety of objectives and face budget
constraints, they usually must trade off reach and frequency. They must decide whether to have
the message be seen or heard by more people (reach) or by fewer people more often
(frequency). ( More reach and frequency thing is explained in extras)
Flexibility
An effective media strategy requires a degree of flexibility. Because of the rapidly
changing marketing environment, strategies may need to be modified. If the plan has
not built in some flexibility, opportunities may be lost and/or the company may not be
able to address new threats. Flexibility may be needed to address the following:
1. Market opportunities.
2. Market threats.
3. Availability of media.
4. Changes in media or media vehicles.
Budget ConsiderationsOne of the more important decisions in the development of media
strategy is cost estimating.number of factors, such as reach, frequency, and availability that
affect this decision..
Advertising and promotional costs can be categorized in two ways. The absolute
cost of the medium or vehicle is the actual total cost required to place the message. For
for example, a full-page four-color ad in Newsweek magazine costs about $183,000. Relative
cost refers to the relationship between the price paid for advertising time or space
and the size of the audience delivered; it is used to compare media vehicles. Relative
costs are important because the manager must try to optimize audience delivery within
budget constraints. Since a number of alternatives are available for delivering the message,
the advertiser must evaluate the relative costs associated with these choices. The
way media costs are provided and problems in comparing these costs across media
often make such evaluations difficult.
Online advertising, also known as online marketing, Internet advertising, digital advertising or
web advertising, is a form of marketing and advertising which uses the Internet to deliver
promotional marketing messages to consumers. Online advertising includes email marketing,
search engine marketing (SEM), social media marketing, many types of display advertising
(including web banner advertising), and mobile advertising and affiliate marketing.
Digital advertising in 2019 witnessed a 26% increase over 2018 to reach Rs 13,683 crore, even as overall advertising
witnessed a sober 9.4% growth, as per the latest report by the Dentsu Aegis Network.
Concerns
Security concerns
According to a US Senate investigation, the current state of online advertising endangers the
security and privacy of users.
Banner blindness
Eye-tracking studies have shown that Internet users often ignore web page zones likely to
contain display ads (sometimes called "banner blindness"), and this problem is worse online
than in offline media.[83]
Fraud on the advertiser
There are numerous ways that advertisers can be overcharged for their advertising. For
example, click fraud occurs when a publisher or third parties click (manually or through
automated means) on a CPC ad with no legitimate buying intent.[85] For example, click fraud can
occur when a competitor clicks on ads to deplete its rival's advertising budget, or when
publishers attempt to manufacture revenue.[85]
Technological variations
Heterogeneous clients
Because users have different operating systems, web browsers[89] and computer hardware
(including mobile devices and different screen sizes), online ads may appear to users differently
from how the advertiser intended, or the ads may not display properly at all. Ad blocking
Ad blocking, or ad filtering, means the ads do not appear to the user because the user uses
technology to screen out ads. Many browsers block unsolicited pop-up ads by default
Anti-targeting technologies
Some web browsers offer privacy modes where users can hide information about themselves
from publishers and advertisers. Among other consequences, advertisers can't use cookies to
serve targeted ads to private browsers.
Privacy concerns
The collection of user information by publishers and advertisers has raised consumer concerns
about their privacy Over half of all Google and Facebook users are concerned about their
privacy when using Google and Facebook, according to Gallup.[99]
Trustworthiness of advertisers
Scammers can take advantage of consumers' difficulties verifying an online persona's
identity,[103]:1 leading to artifacts like phishing (where scam emails look identical to those from a
well-known brand owner)[104] and confidence schemes like the Nigerian "419" scam.
Spam
The Internet's low cost of disseminating advertising contributes to spam, especially by
large-scale spammers.
1. Easy to reach local audience
When your target group of customers are the local consumers, then a radio ad is definitely one
of the most useful marketing method to employ. It’s also one of the quickest ways to get your
message across, as radio ads generally don’t take too long to be ready for airing over the local
radio station.
2. Promotional materials can be kept and recycled
While online ads certainly don’t require the use of physical resources such as printing materials,
posters and flyers have the sole advantage of being hard copies that can be taken anywhere
and re-read anytime, even where there is no internet connection. Additionally, these promotional
materials can be kept for reuse, or recycled.
3. It’s familiarity makes it easy to understand
With older folk already used to traditional methods of promotion, they don’t need much
explanation as to what these promotional material are for. They can just simply accept a flyer or
two, read it when they have time, and know that it’s an advertisement for a brand or a product.
Digital marketing methods, on the other hand, might not sit well with older customers who have
little idea how to navigate the internet.
4. Studies suggest that hard copy marketing are easier to process and recall
There have been studies aimed at determining whether paper marketing had an edge over
digital media, or vice versa. In one such study sponsored by a Canadian entity, it was found that
paper marketing was easier for the customer to process mentally and remember. This means
that among those included in that certain study, participants reported being more inclined to
remember what they read in an advertisement that was printed on direct mail, than they did on a
digital ad.
5. It has a high and proven success rate
With everything going digital these days, it’s easy to wonder why traditional methods of
marketing are still around. The explanation for that is simple: it’s tried and tested, and has a high
success rate. Yes, online methods might reach a more global scale of promotion, but it’s not a
guarantee of reaching all of your potential customer base.
Disadvantages of Traditional Marketing
It is less engaging
It’s a more passive form of marketing, and there is very little actual engagement. It consists of
providing information to the customer and hoping that they will purchase.
It is more expensive
Advertising in the newspaper, radio, and TV can be very expensive – no wonder most TV ads
are just a few seconds!
Difficult to measure ROI
It is very difficult to see how successful or otherwise your marketing campaign was, as there are
no numbers to measure.
3. DAGMAR: An Approach to Setting Objectives ( page no 209)
Characteristics of Objectives
A second major contribution of DAGMAR to the advertising planning process was its
definition of what constitutes a good objective.
Colley argued that advertising objectives should be stated in terms of
concrete and measurable communications tasks: The communications task specified in the
objective should be a precise statement of what appeal or message the advertiser wants
to communicate to the target audience. Advertisers generally use a copy platform to
describe their basic message.According to DAGMAR, the objective must also be measurable.
There must be away to determine whether the intended message has been communicated
properly.
For example Midwest Express measured its communications objective by asking airline
travelers whether they thought Midwest’s airfares were higher than those of competing
airlines.
specify a target audience: Another important characteristic of good objectives is a well ldefined
target audience. It may be based on descriptive variables such as geography, demographics,
and psychographics as well as on behavioral variables such as usage rate or benefits sought.
indicate a benchmark starting point and the degree of change sought : To set objectives, one
must
know the target audience’s present status concerning response hierarchy variables
such as awareness, knowledge, image, attitudes, and intentions and then determine the
degree to which consumers must be changed by the advertising campaign. Determining
the target market’s present position regarding the various response stages requires
benchmark measures.
specify a time period for accomplishing the objective(s): A final consideration in setting
advertising objectives is specifying the time period in which they must be accomplished.
Appropriate time periods can range from a few days to a year or more. For example, awareness
levels for a brand can
be created or increased fairly quickly through an intensive media schedule of widespread,
repetitive advertising to the target audience
Criticisms of DAGMAR
● Problems with the response hierarchy.
● Sales objectives. Another objection to DAGMAR comes from those who argue that
the only relevant measure of advertising objectives is sales
● Practicality and costs.
● Inhibition of creativity.Afinal criticism of DAGMAR is that it inhibits advertising
● creativity by imposing too much structure on the people responsible for developing the
● advertising.
(1) Many firms employ more than one method, and (2) budgeting approaches vary according to
the size and sophistication of the firm.
1. a ffordable method the firm determines the amount to be spent in various areas such
as production and operations. Then it allocates what’s left to advertising and
promotion, considering this to be the amount it can afford. For example, this approach
is used in high tech companies.
2. Arbitrary Allocation ( weaker than affordable)arbitrary allocation, in which virtually no
theoretical basis is considered and the budgetary amount is often set by fiat. That is, the
budget is determined by management solely on the basis of what is felt to be necessary.
it is used—not recommended.
3. Percentage of Sales Perhaps the most commonly used method for budget setting
(particularly in large firms) is the percentage-of-sales method, in which the advertising
and promotions budget is based on sales of the product. Management determines
the amount by either (1) taking a percentage of the sales dollars or (2) assigning a fixed
amount of the unit product cost to promotion and multiplying this amount by the
number of units sold. A variation on the percentage-of-sales method uses a percentage of
projected future sales as a base. This method also uses either a straight percentage of projected
sales or a unit cost projection. In the straight-percentage method, sales are projected
for the coming year based on the marketing manager’s estimates. The budget is a percentage
of these sales, often an industry standard percentage like those presented inOne advantage of
using future sales as a base is that the budget is not based on lastyear’s sales. Proponents of the
percentage-of-sales method cite a number of advantages. It is
financially safe and keeps ad spending within reasonable limits, as it bases spending
on the past year’s sales or what the firm expects to sell in the upcoming year. Thus,
there will be sufficient monies to cover this budget, with increases in sales leading to
budget increases and sales decreases resulting in advertising decreases. The percentage-
of-sales method is simple, straightforward, and easy to implement. Regardless of
which basis—past or future sales—is employed, the calculations used to arrive at a
budget are not difficult. Finally, this budgeting approach is generally stable..
At the same time, the percentage-of-sales method has some serious disadvantages,
● including the basic premise on which the budget is established: sales. Letting the level
of sales determine the amount of advertising and promotions dollars to be spent
reverses the cause-and-effect relationship between advertising and sales. It treats
advertising as an expense associated with making a sale rather than an investment.
● A second problem with this approach was actually cited as an advantage earlier:
stability.The problem is that this method does not allow for changes in strategy either
internally or from competitors.
● An aggressive firm may wish to allocate more monies to the advertising and promotions
budget, a strategy that is not possible with a percentage-ofsales method unless the
manager is willing to deviate from industry standards.
● The percentage-of-sales method of budgeting may result in severe misappropriation
of funds
● The percentage-of-sales method is also difficult to employ for new product
introductions.
.
Competitive Parity In the competitive parity method, managers establish budget amounts by
matching the competition’s percentage-of-sales expenditures. The argument is that setting
budgets in this fashion takes advantage of the collective wisdom of the industry. It also
takes the competition into consideration, which leads to stability in the marketplace by
minimizing marketing warfare. If companies know that competitors are unlikely to
match their increases in promotional spending, they are less likely to take an aggressive
posture to attempt to gain market share. This minimizes unusual or unrealistic ad
expenditures.
The competitive parity method has a number of disadvantages,
● It ignores the fact that advertising and promotions are designed to accomplish specific
objectives by addressing certain problems and opportunities.
● Second, it assumes that because firms have similar expenditures, their programs will be
equally effective. Thisassumption ignores the contributions of creative executions
and/or media allocations, as well as the success or failure of various promotions.
● Further, it ignores possibleadvantages of the firm itself; some companies simply make
better products than others.
● Also, there is no guarantee that competitors will continue to pursue their existing
strategies.
● Further, there is no guarantee that a competitor will not increase or decrease its own
expenditures, regardless of what other companies do.
● Finally, competitive parity may not avoid promotional wars. Coke versus Pepsi and
Anheuser-Busch versus Miller have been notorious for their spending wars, each
responding to the other’s increased outlays.
In summary, few firms employ the competitive parity method as a sole means of
establishing the promotional budget. This method is typically used in conjunction with
the percentage-of-sales or other methods. It is never wise to ignore the competition;
managers must always be aware of what competitors are doing. But they should not
just emulate them in setting goals and developing strategies.
Return on Investment (ROI). In the ROI budgeting method, advertising and promotions are
considered investments, like plant and equipment. Thus, the budgetary appropriation
(investment) leads to certain returns. Like other aspects of the firm’s efforts, advertising and
promotion are expected to earn a certain return.
While the ROI method looks good on paper, the reality is that it is rarely possible to
assess the returns provided by the promotional effort—at least as long as sales continue
to be the basis for evaluation
the use of percentage-of-sales methods remained highover the periods included, particularly
the method based on anticipated sales. Unfortunately,the affordable method appeared to be
on the increase. On the decrease are two methods not yet discussed: quantitative models
and the objective and task method. Letus now turn our discussion to these methods as well
as one other, payout planning
In conclusion top down budgeting method are fast and straightforward but osses lot of
limitation like dependence on past.
The objective and task method of budget setting uses a buildup approach consisting
of three steps: (1) defining the communications objectives to be accomplished,
(2) determining the specific strategies and tasks needed to attain them, and (3) estimating
the costs associated with performance of these strategies and tasks
this process involves several steps:
1. Isolate objectives.
2. Determine tasks required.
3. Estimate required expenditures.
4. Monitor.
5. Reevaluate objectives.
The major advantage of the objective and task method is that the budget is driven
by the objectives to be attained. The managers closest to the marketing effort will have
specific strategies and input into the budget-setting process
The major disadvantage of this method is the difficulty of determining which tasks
will be required and the costs associated with each. For example, specifically what tasks
are needed to attain awareness among 50 percent of the target market?
Pyout plan method: To determine how much to spend, marketers often develop a payout plan
thatdetermines the investment value of the advertising and promotion appropriation. The
basic idea is to project the revenues the product will generate, as well as the costs it
will incur, over two to three years. Based on an expected rate of return, the payout plan
will assist in determining how much advertising and promotions expenditure will be
necessary when the return might be expected.
While the payout plan is not always perfect, it does guide the manager in establishing
the budget. When used in conjunction with the objective and task method, it provides
a much more logical approach to budget setting than the top-down approaches
previously discussed.
Extra
How advertising and promotions budgets are set
The Nature of the Decision Process
• Managers develop overall marketing objectives for the brand.
• Financial projections are made on the basis of the objectives and forecasts.
• Advertising and promotions budgets are set on the basis of quantitative models and
managerial judgment.
• The budget is presented to senior management, which approves and adjusts the
budgets.
• The plan is implemented (changes are often made during implementation).
• The plan is evaluated by comparing the achieved results with objectives.
Factors Affecting Budget Allocations
• The extent to which risk taking is encouraged and/or tolerated.
• Sophistication regarding the use of marketing information.
• Managerial judgment.
• Use of quantitative tools.
• Brand differentiation strategies.
• Brand equity.
• The strength of the creative message.
• Retailer power.
• Short- versus long-term focus.
• Top-down influences.
• Political salesforce influences.
• Historical inertia.
• Ad hoc changes.
5. ethics
ETHICS ( against and for arguments puche toh given points ke book mein 760 to 770 - chapter
22 mein mil jaega)
CAN REFER THIS PPT TOO FRO ETHICS
https://www.slideshare.net/siddhalinevrekar98/ethical-issues-in-advertising-64518074
DEFINITON-
Ethics are moral principles and values that govern theactions and decisions of an individual or
group.
particular action may be within the law and still not be ethical. Agood example of
this involves target marketing. No laws restrict tobacco companies from targeting
advertising and promotion for new brands to African-Americans. However, given the
high levels of lung cancer and smoking-related illnesses among the black population,
many people would consider this an unethical business practice.
Social and Ethical Criticisms of Advertising Much of the controversy over advertising
3ADVERTISING CHILDREN \
TV is a vehicle through which advertisers can reach children easily. Studies show that television
is an important source of information for children about products. Of late they have started
using other means also adio ads, point-of-purchase displays, premiums in packagesetc. are
especially vulnerable to advertising because they lack the experience and knowledge to
understand and evaluate critically the purpose of persuasive advertising appeals.
Eg food industries partnering with toy manufacturing that advertise food. Animated games that
promote brand.
● Advertising and the Media: The fact that advertising plays such an important role in
financing the media has led to concern that advertisers may influence or even
control the media. Eg It is well documented that economic censorship occurs, whereby
the media avoid certain topics or even present biased news coverage, in acquiescence
to advertiser demands
THEN COMES THES TOPICS -- explaining To examine the economic role of advertising
and
its effects on consumer choice, competition, and
product costs and prices.
( end m given h chap 23 ke fataft topic se 3-4 line likh lo)
● Effect off advertising on economics ( both view has been talked about and then
table is also given, scroll a little more- two school of though advertising equal
power or equal information )
● Effect of advertising on consumer choice
● Effect on product cost and price
● Adv effect on consumer choice
● Adv effect on competition
NOTE- regulated by internal self-regulation and by external state and federal regulatory
agencies such as the ffggFederal Trade Commission (FTC), the Federal Communications
Commission (FCC), the Food and Drug Administration (FDA), and the U.S. Postal
Service. But this is in us perspective and book mein b us perspective se hai . apko india ke
perspective mein dekhne hoga
India
Advertisement, often described as commercial speech, enjoys its protection under Article 19(1)
(a) of the Indian Constitution. As a facet of the right to information, it facilitates the
dissemination of information about the sellers and their products
Under the Indian legal regime, Cable Television Networks (Regulation) Act,
1955 (“Act”), the Press Council of India Act, 1978 (“PCIA”), and Cable
Television Networks (Amendment) Rules, 2006 (“Rules”) - among others -
are the principal legislations which control the content of advertisements to
ensure that they should not offend morality, decency and religious
susceptibilities of the consumers. Some of the prominent, prohibitory legal
provisions that regulate advertising are:
● Obscene publication or advertisement of a lottery under the Indian Penal
Code.1
● Harmful publication2 under the Young Persons (Harmful Publications)
Act, 1956.
● The indecent representation of women under the Indecent
Representation of Women (Prohibition) Act, 1986.
● . Advertisement of magical remedies of diseases and disorders under the
Drugs and Magical Remedies (Objectionable Advertisements), Act, 1954.
● Advertisements related to prenatal determination of sex under the
Prenatal Diagnostic Techniques (Regulation and Prevention of Misuse)
Act, 1994.
● Advertisements of cigarettes and other tobacco products under the
Cigarettes and other Tobacco Products (Prohibition of Advertisement
and
● Regulation of Trade and Commerce, Production, Supply and
Distribution) Act, 2003.
ASCI Code
The ASCI Code aims to protect the legitimate interests of the consumers by
regulating patently false, misleading, and objectionable advertisements
broadcast on television, radio, and internet by advertisers, media, and
advertising agencies. \
The key objectives of ASCI code is to ensure that advertisements must -
● Make truthful and honest representations and claims which is essential
to prohibit misleading advertisements;
● Not be offensive to public decency or morality;
● Not promote products which are hazardous or harmful to society or to
individuals, particularly minors;
● and Observe fairness in competition keeping in mind consumer’s
interests.
Recent development
Advertising Standards Council of India (ASCI) decisions are applicable to
members as well as non-members. Until now a large number of advertisers
avoided becoming members of ASCI under the mistaken notion that they
would then not have to abide by ASCI decisions.
Drug and Magic Remedies (Objectionable Advertisement) Act, 1954- This Act purports
to regulate the advertisements of drugs in certain cases and to prohibit the advertising
for certain purposes of remedies alleged to possess magic qualities and to provide for
matters connected therewith;
Drugs and Cosmetics Act, 1940- Section 29 of the Act imposes penalty upon whoever
uses any report of a test or analysis made by the Central Drugs Laboratory or by a
Government Analyst, or any extract from such report, for the purpose of advertising any
dru
Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of
Trade and Commerce, Production, Supply and Distribution) Act, 2003- Section 5 of this
Act, inter alia, prohibits both direct & indirect advertisement of tobacco products in all
forms of audio, visual and print media;
Self regulation
For many years, the advertising industry has practiced and promoted voluntary
Self-regulation so as to build consumer trust and confidence also as a way to limit government
interference.
● including individual advertisers and their agencies,
● business and advertising associations,
● and the media.
advertising agencies also have standards regarding the type of advertising they either want or
are willing to produce, and they try to avoid ads that might be offensive or misleading. Most
agencies will ask their clients to provide verification or support for claims to the client.
industries have also developed self-regulatory programs. Especially in those industries whose
advertising is prone to controversy, such as liquor and alcoholic beverages, drugs, and various
products marketed to children. Many trade and industry associations develop their own
advertising guidelines or codes that member companies are expected to abide by.
The Wine Institute, the U.S. Brewers Association, and the Distilled Spirits Council
of the United States all have guidelines that member companies are supposed to follow
in advertising alcoholic beverages.
Self-Regulation by Businesses
A number of self-regulatory mechanisms have been established by the business community
in an effort to control advertising practices. The largest and best known is the
Better Business Bureau (BBB), which promotes fair advertising and selling practices
across all industries. The BBB was established in 1916 to handle consumer complaints
about local business practices and particularly advertising
Self-Regulation by Media
The media are another important self-regulatory mechanism in the advertising industry.
Most media maintain some form of advertising review process and, except for political ads,
may reject any they regard as objectionable. Some media exclude advertising for an entire
product class; others ban individual ads they think offensive or objectionable. For example,
Reader’s Digest does not accept advertising for tobacco
or liquor products
Deceptive Advertising
Deceptive advertising can take a number of forms, ranging
from intentionally false or misleading claims to ads that, although true, leave some
consumers with a false or misleading impression.
The issue of deception, including its definition and measurement, receives considerable
attention from the FTC and other regulatory agencies. One of the problems regulatory
agencies deal with in determining deception is distinguishing between false or
misleading messages and those that, rather than relying on verifiable or substantiated
objective information about a product, make subjective claims or statements, a practice
known as puffery. Puffery has been legally defined as “advertising or other sales
presentations which praise the item to be sold with subjective opinions, superlatives,
or exaggerations, vaguely and generally, stating no specific facts.”39 The use of
puffery in advertising is common. For example, Bayer aspirin calls itself the “wonder
drug that works wonders,” Nestlé claims “Nestlé makes the very best chocolate,”
Snapple advertises that its beverages are “made from the best stuff on Earth,” and
BMW uses the tagline “The Ultimate Driving Machine.” Superlatives such as greatest,
best, and finest are puffs that are often used.
Corrective Advertising
However, even if an advertiser ceases using a deceptive ad, consumers may still
remember some or all of the claim. To address the problem of residual effects, in the
1970s the FTC developed a program known as corrective advertising. An advertiser
found guilty of deceptive advertising can be required to run additional advertising
designed to remedy the deception or misinformation contained in previous ads.
Ocean Spray cranberry juice was found guilty of deceptive advertising because it claimed to
have more “food energy” than orange or tomato juice but failed to note it was referring to the
technical definition of food energy, which is calories. In each case, the advertisers were ordered
to spend 25 percent of their annual media budgets to run corrective ads.
Corrective advertising is probably the most controversial of all the FTC programs.
54 Advertisers argue that corrective advertising infringes on First Amendment
rights of freedom of speech.
Eg In one of the most publicized corrective advertising cases
ever, involving Listerine mouthwash, Warner-Lambert tested the FTC’s legal power to
order corrective messages.55 For more than 50 years Warner-Lambert had advertised
that gargling with Listerine helped prevent colds and sore throats or lessened their
severity because it killed the germs that caused these illnesses. In 1975, the FTC ruled
these claims could not be substantiated and ordered Warner-Lambert to stop making
them. In addition, the FTC argued that corrective advertising was needed to rectify the
erroneous beliefs that had been created by Warner-Lambert as a result of the large
amount of advertising it had run for Listerine over the prior 50 years.
Warner-Lambert argued that the advertising was not misleading and, further, that the
FTC did not have the power to order corrective advertising. Warner-Lambert appealed
the FTC decision all the way to the Supreme Court, which rejected the argument that corrective
advertising violates advertisers’ First Amendment rights
extra
● What to Test We now examine how to measure the effectsof communications. This
section considers what elements to evaluate, as well as where and how such evaluations
should occur. In Chapter 5, we discussed the components of the communications model
(source, message, media, receiver) and the importance of each in the promotional
program--- source factor!media staregy, message variable, budgeting decision
● When to Test Virtually all test measures can be classified according to when they are
conducted. Pretests are measures taken before the campaign is implemented; posttests
occur after the ad or commercial has been in the field( pretesting,,,,,,,,postesting)
Recall Tests There are several tests to measure recall of print ads. Perhaps the best
known of these are the Ipsos-ASI Next*Print test and the Gallup & Robinson Magazine
Impact Research Service (MIRS) (described in Figure 19-15). These recall tests
are similar to those discussed in the section on pretesting broadcast ads in that they
attempt to measure recall of specific ads.
In addition to having the same interviewer problems as recognition tests, recall tests
have other disadvantages. The reader’s degree of involvement with the product and/or
the distinctiveness of the appeals and visuals may lead to higher-than-accurate recall
scores, although in general the method may lead to lower levels of recall than actually
exist (an error the advertiser would be happy with). Critics contend the test is not
strong enough to reflect recall accurately, so many ads may score as less effective than
they really are, and advertisers may abandon or modify them needlessly.
On the plus side, it is thought that recall tests can assess the ad’s impact on memory.
Proponents of recall tests say the major concern is not the results themselves but
how they are interpreted. In one very interesting study of the effects of brand name
suggestiveness on recall, Kevin Keller, Susan Heckler, and Michael Houston found
that suggestive brand names (those that convey relevant attribute or benefit information
about the product) facilitate the initial recall of the brand’s benefits but inhibit
Recognition Test Perhaps the most common posttest of print ads is the recognition
method, most closely associated with Roper ASW. The Starch Ad Readership
Report lets the advertiser assess the impact of an ad in a single issue of a magazine,
over time, and/or across different magazines (see Figure 19-14). Starch measures over
farm, and business magazines and newspapers per year and provides a
number of measures of the ad’s effectiveness. An example of a Starchscored
ad is shown in Exhibit 19-5.
Starch claims that (1) the pulling power of various aspects of the ad can
be assessed through the control offered, (2) the effectiveness of competitors’
ads can be compared through the norms provided, (3) alternative ad
executions can be tested, and (4) readership scores are a useful indication
of consumers’ involvement in the ad or campaign. (The theory is that a
reader must read and become involved in the ad before the ad can communicate.
To the degree that this readership can be shown, it is a direct indication
of effectiveness.)
Of these claims, perhaps the most valid is the ability to judge specific
aspects of the ad. Many researchers have criticized other aspects of the
Starch recognition method (as well as other recognition measures) on the
basis of problems of false claiming, interviewer sensitivities, and unreliable
scores:
1. False claiming. Research shows that in recognition tests, respondents
may claim to have seen an ad when they did not. False claims may be a
result of having seen similar ads elsewhere, expecting that such an ad
would appear in the medium, or wanting to please the questioner. Interest
in the product category also increases reporting of ad readership. Whether this false
claiming is deliberate or not, it leads to an overreporting of effectiveness. On the flip
side, factors such as interview fatigue may lead to an underreporting bias—that is,
respondents not reporting an ad they did see.
2. Interviewer sensitivities. Any time research involves interviewers, there is a potential
for bias. Respondents may want to impress the interviewer or fear looking
unknowledgeable if they continually claim not to recognize an ad. There may also be
variances associated with interviewer instructions, recordings, and so on, regardless
of the amount of training and sophistication involved.
3. Reliability of recognition scores. Starch admits that the reliability and validity of
its readership scores increase with the number of insertions tested, which essentially
means that to test just one ad on a single exposure may not produce valid or reliable
results.
In sum, despite critics, the Starch readership studies continue to dominate the
posttesting of print ads. The value provided by norms and the fact that multiple exposures
can improve reliability and validity may underlie the decisions to employ this
methodology.
Message Appeals
One of the advertiser’s most important creative strategy decisions involves the choice
of an appropriate appeal. Some ads are designed to appeal to the rational, logical
aspect of the consumer’s decision-making process; others appeal to feelings in an
attempt to evoke some emotional reaction. Many believe that effective advertising
combines the practical reasons for purchasing a product with emotional values
the receiver may emotionally block the message by tuning it out, perceiving it selectively, or
denying its arguments outright. This model suggests that both the cognitive appraisal of the
information in a fear appeal message and the emotional response mediate persuasion. An
audience is more likely to continue processing threat-related information, thereby
increasing the likelihood that a coping behavior will occur.
Humor Appeals Many advertisers, including FedEx, Little Caesar’s pizza, Pepsi, and Budweiser,
have used humor appeals effectively. Humor is usually presented through radio and TV
commercials as these media lend themselves to the execution of humorous
messages. Humorous messages attract and hold consumers’ attention. They enhance
effectiveness by putting consumers in a positive mood, increasing their liking of the ad itself
and their feeling toward the product or service. And humor can distract the receiver from
counterarguing against the message.63
Critics argue that funny ads draw people to the humorous situation but distract
them from the brand and its attributes. Also, effective humor can be difficult to produce
and some attempts are too subtle for mass audiences
8Modell---chap 5
9.Agency model