B.Com.(Hons.

) Semester-V Commerce

Discipline Specific Elective (DSE-II)

ADVERTISING AND PERSONAL SELLING
Unit I-III

SCHOOL OF OPEN LEARNING

University of Delhi

Department of Commerce
 CONTENTS

UNIT I
Lesson 1 Introduction of Advertising
Lesson 2 Marketing
Lesson 3 Communication
Lesson 4 What is Advertising
Lesson 5 Advertising Objectives
Lesson 6 Determination of Target Audience and Positioning
Lesson 7 Advertising Budget

UNIT II
Lesson 1 Media Decisions
Lesson 2 Message Development and Advertis
Advertising Effectiveness
Lesson 3 Advertising Through Internet
Lesson 4 Media Decisions
Decisions-Types of Media
Lesson 5 Creativity and Advertising
Lesson 6 Creative Strategy
Lesson 7 Media Planning

UNIT III
Lesson 1 Measuring Advertising Effectiveness
Lesson 2 Advertising Agency
Lesson 3 Ethical and Legal Aspects /Issues of Advertising

Editor
K.B.Gupta

SCHOOL OF OPEN LEARNING

University of Delhi
5, Cavalry Lane, Delhi
Delhi-110007
 UNIT-1
LESSON 1
INTRODUCTION OF ADVERTISING

1. STRUCTURE

1.0 Objective
1.1 What is Advertising
1.2 Nature of Advertising
1.3 Importance of Advertising
1.1.1 To Businessmen
1.1.2 To Society
1.1.3 To Consumers
1.4 Types of Advertising
1.4.1 Based on Geographical Coverage
1.4.2 Based on Target Group
1.4.3 Based on Subject Matter
1.4.4 Based on Impact
1.5 Objectives of Advertising
1.6 Audience Selection
1.7 Dagmar
1.8 Advertising Budget
1.9 Setting Advertising Budget or Advertising Allocation
1.10 Summary
1.11 Self Assessment Questions

1.0 OBJECTIVE

1. Learn about advertising.

2. Learn about the nature and importance of advertising.
3. Learn about the types and objectives of advertising.
4. Learn about audience selection, advertising budget, and dagmar

1.1 WHAT IS ADVERTISING

The term advertising has been derived from the Latin word “advertere” which means ‘to turn’
or ‘to take notice of.’ Traditionally, the term advertising meant turning the attention of people
to a product, service, idea or organization. Earlier, people used advertising to just make

1
announcements. But with passage of time there have been modifications, and now, the term
advertising is used not just for making announcements but is a means of communication too.
Some of the popular definitions of word advertising are as follows-
According to Advertising Association of UK, advertising refers to a means of communicating
with the users of a product or service. Advertisements are messages paid for by those who send
them and are intended to inform or influence people who receive them.
According to American Marketing Association, Advertising is any paid form of non-personal
presentation and promotion of ideas, goods and services by an identified sponsor.”
According to Philip Kotler, “Advertising consists of non-personal forms of communication
conducted through paid media under clear sponsorship.”
According to F.P.Bishop, “Advertising is controlled identifiable persuasion by means of mass
communication media.”
In general, advertising is a non-personal paid form of communication through an identified
sponsor.

1.2 NATURE/ CAHARACTERISTICS OF ADVERTISING

The features or characteristics of advertising are as follows-

1) Paid form - Advertising is paid for by its advertisers. Advertisers pay for the time or
space they purchase to tell their stories. In case of television and radio, money is paid
for per second and in case of print media, money is paid for per column centimeter. If
the communication is not paid for then, it is not advertising. For instance, the popular
celebrities appear on the reality shows to promote their newest movie is not advertising
but instead is promotion of the concerned movie.
2) Non- personal - Advertising is non-personal since it does not involve face-to-face
interactions between the buyer and seller. Thus, it is an impersonal means of marketing
communication.
3) Identified sponsor - The sponsor here refers to the organization or the individual which
is paying for the advertisement.
4) Mass – mediated – It refers to the communication which is designed to reach not just
a specific person but to mass audience. The mass- mediated nature of advertising creates
a communication environment in which message is not communicated in face-to-face
manner. In other words, it is not one-to-one communication rather addresses large
audience simultaneously.

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 5) Persuade/promotion - The core purpose of advertising is to persuade people or
audience to buy the products or services being advertised or to accept the idea being
advertised.
6) Not just for tangible products - Advertisement is done not just for tangible goods like
television, refrigerator but also services (like Insurance policies, airline services) and
for ideas like family planning, environmental protection etc.
7) Creativity - Advertising requires use of creative ideas and imagination because without
the creative ideas target audience might not act upon the message being delivered. It is
the creativity that sells, thus, aim should be to come up with some unique creative idea.
8) Media’s - Advertisement can be communicated through various medias like television,
radio, newspaper, magazine, mail, bill boards, catalogues etc.
9) Does not provide immediate feedback - Since, it is impersonal communication,
immediate feedback is not possible. Feedback comes in the form of number of
consumers purchasing the product that cannot be measured immediately.

10) No direct relation with the sales volume - No direct relationship exists between the
money spend on advertising and the increase in the amount of sales volume as it is not
just the amount spend but also how well the amount has been spent has an impact upon
the sales turnover.
The nature and purpose of advertising differs from one organization to another. One
organization may advertise to seek response from potential consumers, other
organization may advertise to make the people aware about its product and third
organization may advertise to remind people about the existence of its product.

1.3 IMPORTANCE OF ADVERTISING

To Businessmen

importance/ role
of advertising To Customers

To Society

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1.3.1 Importance to Businessmen
1) Generation of awareness -Through advertisement manufacturers can disseminate
information about their product to consumers.
2) Steady demand – Advertising helps in creating regular demand by way of smoothening
out seasonal and cyclical fluctuations. For this reason, only companies like Nescafe,
emphasizes on both hot and cold uses of coffee to maintain regular sales during both
summer and winter season.
3) Increase in sales volume – Advertising is used to persuade consumers to purchase the
goods which ultimately results in increase in sales volume.
4) Introduction of new product – By way of advertisement manufacturers can inform
consumers about their new product. In this way advertising stimulates the interest of
consumers and persuades them to buy and try out the new product.
5) Building goodwill – Advertising helps in creating good image and reputation of the
firm for its products. Good image helps the firm to survive during competition and
depression.
6) Supplements salesmanship – Advertisement acts as a supplement and facilitates the
job of the salesman in finally convincing the consumer to purchase the product.
7) Boosting the employee morale – Employees always like to be associated with a
company that has a good image and reputation in the society. It in a way instills pride
and loyalty in employees.

1.3.2 Importance to Society

1) Employment generation – Substantial number of people are required in designing,
writing and issuing advertisement. Thus, advertising provides direct recruitment to
substantial number of people. And indirectly, advertising increases employment
opportunities by increasing the volume of production and distribution.
2) Higher standard of living – Through advertisement we become aware of various kinds
of goods and services available in the market which adds comfort to our lifestyle.
Moreover, it educates the consumers about the different uses of the product thereby,
providing better ways of life.
3) Sustains the press – It has been proved through various researches that advertising
provides almost 55% of the cost of newspaper and magazines thereby being an
important source of revenue to newspapers, magazines, televisions and radio. And for
this reason, only we get newspapers at lower rates.
4) Encourages research and development – In order to drive maximum benefit from
advertising in today’s competitive environment, manufacturers should try and their
offering from others to get competitive edge. And this is possible only by coming up
with something new and better. For this reason, big business firms have their own
research and development departments to develop new products and new uses of
existing products.

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1.3.3 Importance to Consumers

1) Convenience – Advertising reduces the time and effort involved in purchasing as

people become aware of the variety of products and their diverse uses through
advertisement.
2) Educates the consumers – Advertisement informs the consumer about the new product
and its various features thereby educating the consumers about it.
3) Improvement in quality – A impress the consumers regarding the better quality and
unique features of the product in comparison to the competitor’s product, advertising is
indirectly resulting in better quality products.
4) Reduction in prices – Advertising has led to more of competition which has indirectly
provided consumers with better quality goods at lower prices.

1.4 TYPES OF ADVERTISING

Based on geographical coverage

1. Local advertising/ retail advertising – Local advertising is generally undertaken by

small firms like retailers, cinema hall etc. retail advertising often includes price
information, service, return policy, store location that national advertisers usually
cannot provide. The main medias which are used for local advertising are shop
decoration, local newspapers, radio, television, hoardings etc., it basically targets people
in a city or town.
2. Regional advertising –This type of advertising is restricted to a region which may be
one state or more than one state, people of which have common tongue language or
using common product. Regional advertising has wider coverage as compared to local
advertising.
3. National advertising – It is generally undertaken by manufacturers of branded goods
as they need to communicate their message all over the country. All possible medias are
used for national advertising for instance- newspaper, radio, television etc. few
advertisers at national level are Reliance, HUL, Bajaj, Godrej etc.
4. International advertising – Companies which operate in more than one country
undertake this type of advertising. Companies like Pepsi, Coca-Cola sell their products
all over the world thus, making use of international advertising.

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 BASIS NATIONAL ADVERTISING LOCAL ADVERTISING

Territory Covered wide coverage Restricted coverage

Expected Response Retailers expect immediate National advertiser is more
response to most of his/her interested in establishing
advertisement. long-range favourable
attitudes.
Types of Advertisers It can be done by manufacturer and It is done only by the
retailers both. manufacturers.

1.4.1 Based on Target Group

1. Consumer advertising/ end-product advertising – This type of advertising is directed
towards consumers who buy products for their own personal and household use. Few
examples of consumer advertising are advertisements for cosmetics, ready-made
garments, washing machines, television etc. i.e. advertisements for all fast-moving
consumer goods such as Surf-Excel, Dove soap, etc.
2. Industrial advertising – Advertisements undertaken by distributors or manufacturers
to stimulate demand among the industrial buyers is called industrial advertising. The
industrial goods may be raw material, machinery, equipment’s, fabricated material. For
instance- advertisements for ball bearings, electric motors etc may be directed at
manufacturers of refrigerators, washing machines. It is directed at a very specialized
and relatively small audience. Features such as quality, service, durability and economy
are stressed in such ads.
3. Trade advertising – Such an advertising is directed at wholesalers and retailers. The
aim behind this type of advertising is to secure distribution for the product. Such
advertisements try to stimulate wholesalers and retailers to stock and sell goods of the
manufacturers. Main medias used for trade advertising are direct mail, specialised trade
journals or business publications.
4. Professional advertising – Such advertising is directed towards professional like
doctors, architects, chartered accountants, engineers etc. such advertisement is intended
to persuade them to buy and recommend the advertised products i.e. such advertisement
is undertaken by those producers and distributors of product who are dependent on
professional people to recommend, specify or prescribe their products to the ultimate
buyers or users. For instance- pharma companies advertise medicines and medical
equipment’s to doctors who use and prescribe those products to their patients. Main
medium for such advertisement is professional journals.

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1.4.2 Based on Subject Matters
1. Product –This type of advertising is used to promote the sale of tangible goods like
television, car, washing machine, lipstick etc.
2. Service advertising – This attempt to promote the sale of services which are intangible,
inseparable and perishable. Advertisements undertaken by airlines, banks, hotels, health
care services, educational services etc., fall under this category. Personal advertising
such as matrimonial advertisements can also be included in this category.
3. Idea advertising – It is used when advertising is required to influence special interest
groups and sway public opinion. Advertisements related to environmental protection,
energy conservation, water conservation, family planning etc., belong to this category
and mass medias are used for such advertisements.
1.4.3 Based on Impact
1. Primary demand advertising–Product demand basically refers to demand for a class
of product rather than brand i.e. it is designed to increase demand for generic product
or service. It tries to convert non-users to users. Here the goal is to increase the
consumption of the product regardless of the brand choice. In other words, such
advertisement is undertaken to inculcate the habit for a class of product. For instance-
Lipton, Taj mahal etc advertise to inculcate tea and coffee drinking in India.
2. Secondary demand advertising/ selective/ competitive advertising – Such
advertising aims to stimulate demand for the specific brand of product. Such
advertisement tries to switch users preference from brand ‘a’ to brand ‘b’ by pointing at
the uses, features and advantages that benefit consumers and may not be available in
competing brand. Example – Kent water purifier, IFB automatic dish washers.
3. Direct action advertising–This kind of advertising stresses and persuades immediate
buying of the product being advertised. In a way it requests the consumers for immediate
action. For instance- time bound offers and coupons are given by companies like mother
care, lifestyle etc., to create immediate response.
4. Indirect action advertising – Here, the main aim of advertiser is to build up image and
reputation of the firm. Its effect can be seen in long run over the sales. It tries creating
the favourable attitude towards the brand.
1.4.4 Other Forms of Advertising
1. Reminder advertising – Purpose of such advertisement is to remind the consumers
from time to time about the existence of the particular brand. And also enhances the
awareness.
2. Comparative advertising – Here, two or more recognizable brands of the same product
class are compared. The comparison is made on the basis of various attributes. The
comparison can be implicit or explicit.
3. Political advertising – Used by politician to persuade people to vote for them.

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 4. Teaser advertising – Basically designed to build curiosity, interest and excitement
about a brand by talking about it but not showing it. Such advertisements are used to
draw attention to upkeeping campaign and generate interest for them.
5. Surrogate Advertising- Advertising Indirectly Surrogate Advertising is prominently
seen in cases where advertising a particular product is banned by law. Advertisements
for products like cigarettes or alcohol which are injurious to health are prohibited by
law in several countries and hence these companies have to come up with several other
products that might have the same brand name which indirectly remind people of the
cigarettes or beer bottles of the same brand.

1.5 OBJECTIVES OF ADVERTISING

The core objective of advertising is to sell something - a product, a service or an idea. In addition
to this general objective, advertising is also used by the modern business enterprises for certain
other objectives which are as follows -
1. Introducing a new product by creating interest for it among the prospective or potential
customers.
2. Supporting personal selling programme as advertising maybe used to open customers' doors
for salesman.
3. Reaching people inaccessible who otherwise are to salesman.
4. Entering new markets or attracting a new group of customers.
5. Increasing competition in the market and to increase the sales as seen in the fierce
competition between Coke and Pepsi.
6. Enhancing the goodwill of the enterprise by promising better quality of products and services.
7. Improving dealer relations. Advertising supports the dealers in selling the product. Dealers
are attracted towards a product which is advertised effectively.
8. To warn the public against imitation of an enterprise's products.

Objectives of advertising can also be categorised into two categories which are

objectives of
advertising

communication marketing
objectives objectives

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Communication Objectives
1. To create awareness.
2. To create understanding i.e. educating consumers by providing knowledge about the
product.
3. To convince the target audience that they will get value for their money by buying the
product or service.
4. To convert latent wants and urges into desire through persuasion. Hidden wants are
provoked and brought to surface through advertising.
5. To respond to advertising by purchasing the product or service.

Marketing Objectives
1. To increase the sales and profits of the advertisers.
2. To develop brand equity i.e. making more and more customers loyal to the advertised
brand.
3. To increase the market share for the advertiser.
4. To help enter new market.
5. To create reputation for the business firm.

1.6 AUDIENCE SELECTION

After deciding the advertising objective, the next step is deciding the target audience at which
advertising is to be directed. Since, single product cannot meet the needs and desires of all
people, therefore, a marketer should focus on those consumers for which the product is best
suited.
The selection of target market helps the marketer to correctly identify the audience and the
group of customers to whom the advertising message should be directed. It helps in dividing
the total market into several segments and then selecting one or more segments to target.
While selecting the target market, the firm can adopt any of the following strategies –
1. Undifferentiated strategy – Here, the firm uses the same marketing mix for all the
markets i.e. the firm considers the target market as one and the same. This method
requires extensive distribution.
2. Concentrated marketing – Here, separate marketing mix is created for each market
segment. This strategy is usually followed by those companies which want to create
niches in either one product or one segment.
3. Differentiated marketing – Here, multiple marketing mix offerings are devised.

1.7 ADVERTISING BUDGET

The size of the advertising budget can seriously have an impact on the composition of the
advertising mix. Generally, a limited promotional budget may coerce the management to use
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types of promotion that would not have been employed otherwise, even though they are less
effective than the others.
Industrial firms generally invest a larger proportion of their budgets in personal selling than in
advertising, while the reverse is true in case of producers of consumer goods.
Organizations with small budgets may be forced to use types of advertising that are less
effective than others. Some marketers find it necessary to restrict their efforts primarily to
personal selling and publicity. There are organizations with small promotion budget which take
the opposite course of action. They concentrate on advertising, sales promotion and neglect
other methods. Some marketers advertise in expensive ways (through classified advertisement
in newspapers and magazines) and spend virtually nothing on personal selling.
There is universal difficulty of relating advertising expenditures to sales and profit results.
Determining the results of advertising and consequently the amount of money to be allocated
in advertising budget are complicated by several major difficulties as follows:
1. The effects of external variables such as population, or income, changes on
economics conditions and competitive behaviour;
2. Variations in the quality of advertising;
3. Uncertainly as to the time-lag effect of advertising; and
4. The effect of the firm’s other marketing activities, such as product improvement
and stepped-up personal selling.
The above complexities make the companies resort to more than one method of determining
the size of their advertising budget. Advertising Budget involves the allocation of a portion of
the total marketing resources to the advertising function in a firm. The size of the budget
allocation should be based on the potential contribution that advertising can make. Advertising
budgeting should be based on a careful analysis of the opportunity for using advertising.

1.8 DAGMAR

Russell Colley created DAGMAR i.e. Defining Advertising Goals for Measured Results.it does
not purely deal with message but also encourages measurable objectives for each stage of
communication. It basically focuses on the level of understanding that the customer must have
for the organisation and also focuses on how to measure the result of an advertising campaign.
This model was build around 4 stages- awareness, comprehension, conviction and action.

AWARENESS KNOWLEDGE CONVICTION ACTION

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Awareness
One should be aware of the existence of a product or organisation before purchase behaviour
can be expected. After awareness has been created among the target audience, it should not be
neglected. If there is any type of negligence then, audience may become distracted by
competing brand messages.
Knowledge
Awareness is not sufficient to create or stimulate a purchase. Knowledge about the product or
organisation is also important. Knowledge can be provided by providing specific information
about the key attributes. At times, to persuade people to try a different brand, one needs to
compare the product with other products or brands and provide additional usage benefit.
Conviction
Conviction is sort of persuasion. After creating interest and preference, buyers are moved to a
position where they are convicted that a product should be tried at the next opportunity. This is
done by moulding audience’s belief about the product using messages that demonstrate the
products superiority over a rival or else by talking about the rewards as a result of using the
product.
Action
Finally, consumers should be induced to act i.e. to encourage the buyers into the purchase
activity.

The DAGMAR approach had a huge influence on how to set objectives in the advertising
planning process and many planners use this model as their base. DAGMAR approach is not
free from disadvantages or criticism. The following are the criticisms of this model –
1. Customers do not always pass through the stages in a linear way.
2. It focuses too much on strategies.
3. It is mainly concerned with creativity.

1.9 SETTING ADVERTISING BUDGET OR ADVERTISING ALLOCATION

Setting the advertising budget is most important decision involved in advertising management
i.e. deciding the amount of money to be spent on advertising during the financial year and
allocation of that amount between the various mediums of advertising. It basically involves the
translation of an advertising plan in monetary terms.

There are basically two approaches to budget setting –

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 APPROACHES
TO BUDGET
SETTING

TOP-DOWN BOTTOM-UP
BUDGETING BUDGETING

Under this method four steps are followed –

1. Top management approves the total promotion budget.
2. Costs of promotional activities are budgeted.
3. Activities which are needed to achieve the objectives are planned.
4. And lastly, promotion objectives are set.

The main methods of setting the advertising budget are as follows:

1. Percentage of sales method
It is the most basic method of setting advertising budget. Here, the amount to be spend
on advertising is decided on the basis of sales i.e. advertising budget is specific
percentage of sales. The sales may be current or anticipated and at times past sales figure
are also used as the basis for deciding on advertisement budget. This method is based
on the notion that sales follow advertising efforts and expenditure. This method assumes
that there is positive correlation between sales and advertising expenditure. It is not the
scientific method of deciding on advertising budget. For instance – suppose firms last
year sales were Rs.4 crore and company spent Rs. 400000 for advertising then, this
clearly means that the company or firm has spent 1% of sales on advertising last year.
Following are the merits of this method:
1. Cost of advertising can be offset against profits earned from the sales as it is
based on sales volume.
2. Marketing managers are required to think in direction of relationship between
promotional cost, selling price and profit per unit.
3. Since, all the firms in the industry spend approximately the same percentage of
sales for advertising i.e. it maintains competitive parity.
4. This method keeps the company in constant touch with the sales target to be
achieved.
Following are the de-merits of this method:
1. This method lacks scientific base as there are no set guidelines to decide the
appropriate percentage of sales.
2. Long term planning is not possible as long- term sales forecasting is usually
difficult.

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 3. This method neglects other objectives of advertising since only sales are given
priority.
4. It is inaccurate to assume that only advertising affects sales.
5. This method seems to be inflexible.
2. Objective and task method
this method is the most appropriate method as it is the scientific method of setting the
advertising budget. As per this method companies consider its own environment and
requirement. This method guides the manager to develop his/her promotional budget
by-
1. Defining the specific objectives
2. Determining the task that must be performed to achieve them.
3. Estimating the cost of performing the task.
The sum of the above costs is the proposed amount for advertising budget.
As per this method, following steps are followed to set advertising budget.
1. Determining the main objective of marketing department.
2. Setting the advertising objectives in terms of sales, profits, brand loyalty,
competitive stability.
3. Determining the advertising task in terms of various advertising activities to
achieve the advertising objectives.
4. Estimating the cost of each advertising activity for the defined period.
5. The sum of all the above activities is the estimated amount of advertising.
3. Competitive parity method
This method considers the competitor’s advertising activity and costs for setting
advertising budget. Here, the budget is fixed on the basis of advertising strategy adopted
by the competitors.
Competition is one of the powerful factors affecting marketing performance. This method
considers the competitors’ advertising activities and costs for setting advertising budget. The
advertising budget is fixed based on advertising strategy adopted by the competitors. Thereby
giving more importance to competitive factor in deciding advertising budget. Here, the basic
assumption is that competitors or leaders are always right.
Suppose the close competitor of your company spends 3% of net sales on advertising then, your
chances would be more of spending somewhat the same percentage.
This is not a good practice since, all companies differ in terms of product characteristics,
objectives, sales, management philosophy, other expenses.
Before following them blindly, one should consider its own companies internal and external
environment. Competitors advertising strategy can be base but should not be followed as it is.
The following are the limitations:
1. This method fails in case of introduction of a new product.

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 2. It is very difficult to know as to through which stage of product life cycle is competitor’s
product is passing.
3. Since, companies differ in their internal and external environment, following
competitors blindly is not a good idea.
4. If there are many competitors then, it is very difficult to decide as to which competitors
advertising strategy should be followed.
5. This method can be followed in case of existence of competitors.
4. Affordable or fund available method
This method is based on the assumption that every company should spend on advertising
as per its individual capacity i.e. financially sound companies should spend more on
advertising and financially low companies should spend less. Here, advertising budget
is treated as residual decision.
Limitations of this method are-
a) This is not a method in real sense.
b) Here, various factors like companies need for advertising, competition etc are
completely ignored.
c) This method only says that company should not spend beyond its capacity.
5. Expert opinion method
Under this method, both external and internal experts are asked to estimate the amount
of money to be spend on advertising for a given period. Here, the experts provide their
estimates jointly as well as individually. Experts can determine the amount of budget
based on their rich experience in the area.
Internal experts team include company’s executive such as general manager, marketing
manager, advertising manager, sales manager, distribution manager etc. while the
external experts team includes marketing consultants, dealers, distributors, suppliers,
advertising agencies and other professionals related to the field.
Merits of this method are as follows:
1. This method tends to be free from biasness as various experts are involved.
2. The budget is more realistic as internal executives are aware of company’s strengths
and weaknesses.
3. This is a very good method in case of a new company, having no past records.
Demerits of this method are as follows:
1. It is not a scientific method since, experts experience plays a key role.
2. It is difficult to fix responsibility of the final estimate as many experts contribute to
budget estimates.
3. External experts are not fully aware of company’s marketing situation.
4. All opinions, right or wrong, are given equal importance.

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Considerations in setting the appropriation
1. Flexibility of appropriation – Companies that set the budget well in advance needs to
maintain certain level of flexibility.
2. Time of establishing the appropriation – Large companies usually establish the entire
advertising appropriation for the coming year at one time, several months prior to the
beginning of their budget year. While other firms may set either quarterly or half yearly.
3. Size of the appropriation.

1.10 SUMMARY
The term advertising has been derived from the Latin word “advertere” which means ‘to turn’
or ‘to take notice of.’ Traditionally, the term advertising meant turning the attention of people
to a product, service, idea or organization. Earlier, people used advertising to just make
announcements. But with passage of time there have been modifications, and now, the term
advertising is used not just for making announcements but is a means of communication too.
According to American Marketing Association, Advertising is any paid form of non-personal
presentation and promotion of ideas, goods and services by an identified sponsor.”
According to Philip Kotler, “Advertising consists of non-personal forms of communication
conducted through paid media under clear sponsorship.”
The features of advertising are paid form, non-personal, identified sponsor, mass- mediated,
persuade, not just for tangible goods, creativity, does not provide immediate feedback.
Advertising has its role not only for business but also for consumers and society.
Types of advertising can be bifurcated on the bases of geographical, target group, subject matter
etc.
Advertising objectives can be categorized into two kinds of objectives- marketing and
communication objectives.
There are two approaches to setting the advertising budget – top-down approach and bottom-
up approach.

1.11 SELF ASSESSMENT QUESTIONS

1. Define advertising. Also explain the various objectives of advertising.

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2. What are the diverse types of advertising?
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3. Explain the primary demand advertising.
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4. Explain the expert opinion method.
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5. Explain the DAGMAR approaches.
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6. “Role of advertising is not just limited to businessmen but also extended to society and
consumers.” Explain this statement.
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7. Explain audience selection as one of the steps.
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8. Explain indirect action advertising.
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9. Explain the competitive parity method of setting advertising budget.
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 LESSON 2
MARKETING
According to American Marketing Association (AMA), “Marketing is the process of planning
and executing the conception, pricing, promotion and distribution of ideas , goods and services to
create exchanges that satisfy individual or organisational objectives”

The definition by AMA recognizes exchange a central concept of marketing, for exchange to
take place there has to be more than one party with something of interest or value to others.
Advertising and sales promotion plays an important part in the exchange process by informing
the prospect about the availability of the product or service and persuading him/her of its value in
satisfying his/her need or want.

According to Philip Kotler; “Marketing is the social process by which individuals and groups
obtain what they need and want through creating, offering and freely exchanging products or
services of value with others.

Matching of products with what is demanded in the market, requires determining the
requirements of potential customers and then developing and supplying those products which
meet their requirements

According to Stanton, ”Marketing is the total system of interacting business activities designed
to plan, price promote and distribute want satisfying products and services to present and
potential customers” In the words of Stanton, Marketing is seen as comprising of all activities
from the time a product is conceived to the time it reaches consumer that is planning-this would
include product line to be offered, quality, design, target audience, market segmentation
etc.;price- cost of production including overheads, retail price, discounts, rebates, allowances etc.
promotion- advertising, publicity, personal selling etc., distribution-channel of distribution from
the factory to the consumer, selectivity among wholesalers and retailers etc.

Marketing Mix

A marketer’s job is to build a marketing program to achieve company’s objective. For this he
performs various marketing activities, these activities can be classified into four categories viz.
Product, price, place and promotion which are popularly known as 4 P’s of marketing or
marketing mix. A marketer has to take various decisions regarding these four tools to pursue its
marketing objectives. The activities performed under each of these P’s are:

Product: This includes all activities relating to conception and planning of the actual product i.e
decision regarding product quality, design, features, size, varieties, brand name, warranty,
guarantee and other services

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Price: This area deals with activities relating to setting the price for a product. Decisions like
retail price, margins of channel members, discounts and allowances, credit terms, credit payment
period etc.

Place: Placement or Distribution refers to all activities involved in getting the product to the final
consumer. Decisions in this category relate to channels, market coverage, location, inventory,
transportation etc.

Promotion: refers to all activities concerned with informing consumers about an organisation’s
offering, persuading them to buy it, reminding them about it from time to time. Activities like
advertising, sales promotion, personal selling, direct marketing and other unconventional media
comprise the‘P’ of promotion

Communication

Communication is commonly understood as the imparting, sharing, or exchanging of

information, news, views, thoughts, attitudes or ideas between two or more people.

Communication is a very complex process and it's success depends on factors such as nature of
message, audience’s interpretation and the environment in which it is received. The receivers
perception of the source and the medium used to transmit the message may also affect the ability
to communicate as many other factors as words, pictures sound or colors may have different
means ingenious go different audience and people's perception and interpretation of them vary.

Marketing Communication

Involves all activities concerned with effectively communicating product information to select
target audience. (Target audience is the group of consumers to whom marketing communication
messages are directed)

All marketing communication is done with a purpose. The prime purpose of communication is to
seek cognitive, affective or behavioural response. In other words the communicator might want
to imprint something into consumer’s mind (cognitive response), change an attitude (affective
response) or get the consumer to act (behavioural response)

Marketing Communication Mix

Just as Marketing mix is the set of tools to market a product, marketing communication mix is
the set of tools to promote a product. A marketing communication manager can choose from
various tools such as advertising, sales promotion, public relations, personal selling, direct
marketing, special events etc.

This marketing communication mix offers organization’s set of tools that facilitate the attainment
of long term goals of the organization as well as ensures that the intent of marketer is received by
the target audience in the light that marketer intends it to be.
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Elements of Marketing Communication Mix:

Advertising: is commonly defined as any paid form of non personal presentation and promotion
of ideas goods and services by an identified sponsor

Sales Promotion: It is the collection of tools that stimulate quicker or greater purchase of
products by consumer or trade in the short run.

Consumer Sales promotions are directed to the end user of the product and include tools such as
price discounts, coupons, rebates, contests, sweepstakes, point of purchase material etc. Trade
sales promotions are directed towards the resellers to motivate them to provide special support
for the organization’s product and to market it aggressively. It includes allowances, sales
contests, trade shows etc.

Personal selling: is the personal presentation by the representative of an organisation with the
purpose of influencing consumer buying decisions , making a sake, building long term
relationship.

Publicity: comprises non personal communication by third party sources regarding an

organization or its products. It includes activities to provide newsworthy information to reporting
sources like media to build a favourable image. In other words when third party communicates
about an organization’s product, the result is publicity for the said product.

Public relations (PR): is the managerial activity concerned with gathering public opinion and
analyzing public attitude and thereby defining policies and plan of action for an organization to
earn public appreciation and acceptance. The scope of PR is much broader than publicity, it
involves planned effort to positively influence the public opinion

Direct Marketing: is one to one approach that uses advertising media to produce an inquiry, a
transaction and some other immediate response. In direct marketing the marketer and the
prospect interacts directly, without the presence of any intermediary. Direct mail, direct response
television or radio, mail order catalogue, direct email, internet, telemarketing etc are various
vehicles of direct marketing

Unconventional Media: There are many other marketing communication tools that defy the
traditional categorisation for example:

 Packaging: is the last marketing message a consumer sees before making a purchase
decision, it serves many functional and promotional purposes
 Point of Purchase(POP) or Merchandise Material: POP materials are stationed at retail
outlets and may include fancy dispenser with visuals and brand log, posters , danglers etc,
Prime objective of POP is to capitalise on the impulsive buyer and make one last shot at
influencing the customer

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  Advertising Specialities: refers to the items that are imprinted with company or brand
logo or mark to serve as gift items Calendars, diaries, pens, t-shirts etc are popular
speciality items
 Trade shows and Exhibits: Trade shows or fairs are exhibitions where companies in a
specific industry get together to showcase their products. Such exhibitions are attended
by the members of the industry, suppliers and buyers media etc. The primary objective is
to provide information to the highly targeted audience and get visibility

Integrated Marketing Communication (IMC)

IMC is a management concept that brings together all the tools of marketing communications to
send consistent messages to target audience. Instead of dividing communications into several
overlapping areas , IMC unifies each communication element to deliver consistent message with
one voice, one theme and on strategy.

American Association of Advertising Agencies defines integrated marketing communication as:

a concept of marketing communication planning that recognises the added value of

comprehensive plan that evaluates the strategic role of variety of communication disciplines-
for example general advertising , direct response, sales promotion, and public relations and
combines these disciplines to provide clarity, consistency and maximum communication
impact.

IMC approach at looking at communication tools not as isolated elements that communicate
different elements to consumer but as interrelated parts that jointly go to solving communication
problems this is because consumers perceive various communication messages as information
about a brand from different sources. In effect the principle of integration holds that all
communications originating from a single strategic platform where all the tools cooperate with
on another will create greater impact and synergy than when tools work individually by
themselves.

Promotion managers practicing integration understand the functions, strengths and weaknesses
of each tool and use them to strengthen or add to the work done by other tools. For example if
advertising is used to build brand preference and inform large audience about a new product,
sales promotion is used to generate trials, build excitement and encourage stocking at the retail
level. Public relation is used to get maximum publicity for the new product, build creativity, POP
merchandising can be used to convey ad messages in store and remind consumers at the point of
purchase. Thus each tool serves different purpose but achieves a common goal of promoting new
product. Instead making tools compete with each other, if they are planned and used jointly they
can achieve maximum communication impact.

The advocates of IMC even take a broader perspective and argue that organisation should
integrate all marketing activities so that its entire mix of product, price, distribution and
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communication strategies send consistent messages. This is because a consumer experiences a
brand through various “contact points”. A contact point could be a friendly salesman of the
product, a price tag that announces the price, the brand’s website that consumer’s surf for
information on brand’s or a brand’s hoarding that consumer’s chance upon at a crossroad. Each
of these touch points will deliver some message to the consumer and each consumer will come in
contact with the brand through a unique mix of contact points. If each of these contact points
deliver a consistent message, the message will be reinforced in the consumer’s mind.

Experts opine that the concept of IMC can be broadened even further to consider not just the
impact of marketing messages but also corporate messages, since everything that a company
does eventually affects its image, thus integration is important not just in communication or
marketing but also in overall business management. Consistency at the corporate level is
essential because stakeholders do not distinguish messages intended for them or those intended
for other audiences. An organization’s employee may also be its investor, media reporter or
customer. If inconsistent messages are received by that individual about the brand in various
capacities there would be a lot of confusion or distrust.

IMC Planning Process

Marketing communication is one of the four tools of the marketing mix, hence it is based on the
strategies laid down in the marketing plan, which in turn is derived from the overall business
plan. Therefore an organisation begins first by strategic planning of its business, next marketing
function and then of its marketing communication.

Marketing communication managers utilise details from the marketing plan that are relevant in
determining promotional strategy. The IMC objectives are laid down so as to fulfil marketing
goals. The IMC plan selects the right communication tools, integrate them, plans accompanying
media and messages and also allocate communication budget to various tools . In addition IMC
is also responsible for managing how other tools of marketing viz. Product, price, place,
communicate to audiences.

Steps involved in the IMC planning process are:

Situation Analysis: Analysis of the factors that are relevant to the promotion situation for
example review of the past campaigns, assessment of the product’s benefits, promotional
strategies by competitors, analysis of target audience-their demographic profile their behavioural
pattern etc.

Determine Problem or opportunity: The situation analysis can identify the problems or
opportunities concerning communications. IMC plan can solve problems like lack of awareness
or knowledge or negative attitudes. Misconception about the product, poor image etc. It can also
aid other tools of marketing viz. product, price and distribution by focussing attention on or away
from them or justifying them.
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Determine Communication Objectives: Communication objectives flow from the marketing
objectives whereas marketing objectives are outlined in terms of sales, market share,
communication objectives talk about specific communication tasks that are to be achieved and
outlined in terms of awareness to be created, attitude or behavior to be changed, image to be built
etc.

Determine Budget: After objectives are set, company has to decide how much it is willing to
spend on promotional program, taking into account programme cost, how much it can afford,
competitive spending etc.

Develop IMC strategies: The most thorough and demanding step of the entire planning process
requires a number of key decisions to be taken relating for example determining the marketing
communication mix- to be decided keeping in mind target audience, product type, promotional
budget., strength the weaknesses of communication tools. Determining media strategy-involves
determining the communication channels that would be used to deliver the messages. Each
promotional tool has set of media vehicles or delivery channels. for example direct marketing
can be done through direct mails, emails, websites etc.

Implement the strategies and monitor activities: Successful implementation calls for breaking
the plan into micro level activities, timing and scheduling them, assigning them to people in
charge, coordinating their efforts and monitoring the execution process.

Evaluating the planning process: Evaluation of IMC is not easy because often communication
effects are difficult to measure. At times they may not have direct impact on sales, effects may
be delayed etc. Therefore it is important to set objectives or standards for measuring performance
in specific, measurable terms to evaluate to make evaluation possible.

Case For IMC:

The prime factor in favour of IMC is its ability to add value to company’s marketing
communication efforts by making them more consistent and unified. In addition IMC is the most
effective way of communication because it avoids duplication, selects the best possible tool for a
particular communication task and produce greater returns on communication investment by
making bigger impact.

Apart from IMC’s effectiveness there a number of environmental factors that are compelling
companies to adapt, adopt integration as a communication concept.

The reasons for the growing importance and adoption of IMC are:

Decreasing impact of traditional advertising: For a number of reasons consumers are

responding lesser than ever to traditional advertising, which has become more costly and less
cost effective than before. With proliferation of umpteen new brands, real product differentiation
has become small and largely insignificant making it more difficult for advertising to create
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brand identity. Besides consumers are not easily impressed by the concoction of words, visuals
put together for advertising’s sake. In addition the budget allocated to consumer and trade sales
promotion has increased with the growing pressure of generating immediate results. In effect,
much of advertising budget has got diverted to sales promotion.

Proliferation of new ways to reach consumers: The shift to IMC has been bought about by the
increase in the traditional media vehicle and the addition of new and advanced communication
options. The onslaught of digital satellite systems have multiplied the number of channel
options, a number of alternate media like electronic magazines, online journals, news groups,
social networking sites ,, mobile advertising etc. Are also gaining grounds An increasing number
of companies today have an online presence through websites, sponsor interne or mobile games,
create blogs send text messages ads or brand jingle ring tones to consumers. This spurt in
number of low cost , more targeted, niche options of reaching consumers has made a dent in the
large audience coverage that traditional media can offered. Also consumers are increasing
control over what they want to hear, see and read and they are rejecting advertising messages.
Hence, marketers are looking at out of the box ways of communicating to their audience.

Growth of database marketing: Companies have been able to gather sufficient information
about customers and prospects through various survey based and observational devices. This
helps them understand individual consumer preferences, segment and target consumers more
effectively, and customise communication programme for individuals or small groups instead of
spending large amounts on mass communication. The modern day consumer has also become
more demanding –who wants customised, interactive, permission based communication rather
than mass scale advertising or generalised sales promotion offers.

Growth of international marketing: With companies doing more businesses globally, they are
faced with the challenge of marketing their products not just in a region or country but
throughout different markets. This is tricky because the objective is to deliver a consistent image
and message in spite of different departments and diverse cultural settings. Thus it is the task of
IMC to coordinate functions across departments and countries. Another challenge while maintain
consistent image worldwide is to localise certain communication elements taking into account
cultural differences

Emphasis on relationship marketing: Relationship marketing is a marketing practice that aims

at building long lasting relationships with various stakeholders of the company including
customers. Relationship marketers look at the life time value of a customer rather than at
individual transaction. Central to the concept of relationship marketing is customer retention;
since all interactions has prime goal of increasing lifetime value of a customer. Relationship
marketing requires communication to be integerated because only in an synergistic system can a
customer’s various contacts with the brand be monitored. IMC has to coordinate all
communications to customers and also make the process transparent so that managers in all

23
departments are aware of a particular customer’s various contacts and experiences with the
brand.

Tighter control over communication: Today’s consumers are more aware and informed,
consumer activists forum are constantly scrutinising communications from various brands. In
general consumer’s scepticism towards advertising and mass communication has grown. Also
control by regulatory authorities has become more stringent. Thus distrust lies with both the
consumer and the regulators and intrusive and mass marketing communication is faced with
hostile audience. In such a situation IMC has to endeavour to sync al, its communication and
pass it through a common ethical and legal test within the company.

Need for creating brand identity: IMC plays an important role in the process of branding or
brand identity creation. A brand is a name, sign, symbol, logo, trademark or combination thereof
that helps to distinguish an offering from the other. Brand recognition is a result of awareness
regarding the brand in the marketplace and is created by direct experiences with the specific
product and through the influence of advertising, media coverage, word of mouth etc. A brand
serves to create certain associations that come to consumer’s mind when they think about
it(name, sign , logo etc.). IMC is responsible for creating and managing consistent brand
associations.

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 LESSON 3
COMMUNICATION
Communication is commonly understood as the imparting, sharing, or exchanging of
information, news, views, thoughts, attitudes or ideas between two or more people.

Communication is a very complex process and it's success depends on factors such as nature of
message, audience’s interpretation and the environment in which it is received. The receivers
perception of the source and the medium used to transmit the message may also affect the ability
to communicate as many other factors as words, pictures sound or colors may have different
means ingenious go different audience and people's perception and interpretation of them vary.

The function of all elements of integrated marketing communication program is to communicate.

Organizations send communications and messages in variety of ways such as advertisements,
brand names, logos, websites, press releases, packaging designs, promotions and visual images.
Those involved in the planning and implementation of IMC program need to understand the
communication process and how it occurs.

Basic Model of Communication

Communication Process
All messages originate from sender or source of the message. The sender may be an individual,
group or organization that wishes to transmit the message to another individual, group or
organization viz. the receiver. The sender and the receiver are the two communicators in the
communication process.

The process of communication begins when the sender determines how a given message will be
conveyed. He has to select the words, images, symbols, format, tone etc for the message. This
process of transferring the content of message (thoughts, ideas, news) into symbolic form is
known as encoding. The sender should select symbols and languages that the receiver is familiar

25
with and would view favorably. The encoding process leads to the development of the message
that contains information or meaning the source hopes to convey.

The sender should also select channel of communication that is best suited for the particular
message and target audience for example local edition of regional newspapers are best suited to
announce limited period sale of local retail shop. Channels are broadly divided into personal and
non personal media. Personal channels of communication are direct or one on one such as
personal selling or word of mouth communication. Non personal channel comprise mass media
where message is send to many audience members simultaneously such as print or broadcast
media.

After the message is encoded and transmitted through right channel the receiver decodes the
message on receipt. Decoding is the process of translating the encoded message from its
symbolic representation back into thought or comprehension. How well, the message is decoded
depends on the receiver's comprehension skills, attitude, profile, knowledge, culture, and social
system among other things. The greater the similarity, understanding or common frames of
reference between the sender and the receiver the more effective the communication would be.

However apart from characteristics of sender and receiver certain extraneous or environmental
factors also determine effectiveness of communication termed as noise or entropy these are the
factors that create interference in message dissemination or reception for example coming up of
better sales offer by competitor at the time of advertiser's offer, the newspaper page on which
the advertiser advertised being full of other ads, power cut at the time an ad is broadcast on
television etc are all noise causing factors that hamper communication process.

The communication process does not end with the receiver receiving the message. The marketer
is also interested in the receiver's response and reactions on getting the message which help him
gauge efficacy of communication feedback completes the exchange process whereby receiver
becomes sender and transmits his response back to original source feedback can be in various
forms verbal posing of question to the salesman, purchase action after seeing an ad, or even total
inaction problem that marketer experience often when mass media is used is that of the indirect
or delayed response which makes it difficult to measure the effectiveness of communication
because of the difficulty in gauging delayed response marketer often conduct consumer
interviews, make store visit, or provide feedback forms to analyze receiver's response,
comprehension, message recall etc.

Analyzing the Receiver

To communicate effectively with the customers, marketers must understand who the target
audience is, what (if anything) it knows or feels about the company’s product or services and
how to communicate with the audience to influence its decision making process. Marketers must
also know how the market is likely to respond to various sources of communication or different
messages before they make decision regarding source, message or channel variables.

Identifying the target audience

The marketing communication begins with identifying the target audience that will be the focus
of the firm’s advertising and promotional efforts.

26
The target audience may consist of individuals who have specific needs and for whom the
communication must be specifically tailored. This often requires person to person
communication and is generally accomplished through personal selling.

Second level of audience aggregation is represented by the group. Marketers must communicate
with the group of people who make or influence the purchase decision. For eg. organisational
purchasing often involves buying centres committees, companies marketing their products to
businesses and organisations must understand who is the purchase committee, what aspect of
decision each individual influences and the criteria each members use to evaluate a product.
Advertising may be directed at the each member of the buying centre, multi level personal
selling may be necessary to reach those individuals who influence or actually make the
decisions.

At the next level small and well defined group of customers often referred to as market niches,
can be reached through personal selling or highly targeted media such as direct mail, the level
above is the broad classes of buyers; market segments, who have similar needs and can be
reached with similar messages. As the market segment gets larger marketers often use broader
based media such as newspapers, TV etc to reach them.

Marketers of the most consumer products attempt to attract the attention of the large number of
present and potential customers(mass markets) through mass communication such as advertising
or publicity. Mass communication is one way flow of information from marketer to the
customer. Feedback of the audience’s reaction is generally indirect and difficult to measure.
Unlike personal or face to face communication, mass communication do not offer marketer an
opportunity to explain or clarify the message to make it more effective. Therefore the marketer
must enter the communication situation with the knowledge of the target audience and how it is
likely to react to the message i.e the receiver’s response process.

Mass Markets

Market Segments

Niche Markets
Individual or
group Audiences
Levels of Audience Aggregation
Response process
The most important aspect of developing effective communication programs involve
understanding the response process the receiver may go through in moving toward a specific
behavior like purchasing of product and how the promotional efforts of marketers influence
consumer responses. Experts have found that consumer often respond to messages in hierarchical
order of behavior. These hierarchical responses are demonstrated through various models of
consumer response stages.
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Traditional response hierarchy models
Traditional response hierarchy model proposes that consumer typically move through various
stages of responses. A number of models have been developed to depict the stages a consumer
may pass through in moving from the state of not being aware of company, product, or brand to
actual purchase behavior. These responses typically divided into cognitive, affective and
behavioral responses. For each stage of consumer readiness or response communicator must
perform specific actions. for example the communicator need to imprint something into the
consumer's mind (cognitive response),change an attitude(affective response)or get the consumer
to act (behavioral response)

AIDA Model
The AIDA (Awareness -Interest-Desire-Action) model of consumer response hierarchy states
that a consumer passes successively through the following four stages of response:

Awareness: in the initial stage the target audience is unaware of the product or brand hence the
communicators objective is to build awareness maybe just name recognition with simple
message repeating brand name or to give basic information about the product. In a relatively new
product category this function assumes maximum importance.

Interest :In this stage consumers graduate from awareness about the product to interest in it.
Interest in the product can be created by showing some unique feature of the product,
demonstrating how it works, fetching popular celebrities etc.

Desire: Once the target audience is aware about and interested in the product the next function of
advertising is to get them positively inclined towards buying it i.e. create desire and awareness
for advertised product. Desire can be build up by showing how the product addresses a
consumer's specific needs and by creatively promoting quality, value and other significant
features.

Action: Advertising has not played its part until it has achieved the ultimate objective spurring
the target audience into action. In most cases the desired action is to lead consumers to purchase
but in certain cases it can also be generate inquiries, lead to retail visit etc. Brand or image
building advertising will not immediately lead to purchase action but will create preference and
desire that will ultimately translate into purchase.

Hierarchy of effects model

The hierarchy of effects model is 'stair-step and linear models proposed by Robert Lavidge and
Gary Steiner that states that advertising must move people up a series of steps from cognitive
processing to attitude change to purchase behavior. Consumers do not switch from being
disinterested individuals to convinced purchasers in one instantaneous step. Rather they approach
the purchase decision through series of steps ranging from awareness, knowledge, liking,
preference, conviction and purchase.

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A Fundamental assumption of the model, is that advertising effects occur over time hence
advertising must move consumers through the above mentioned five psychological stages before
it can lead to purchase.

Innovation Adoption Model

The Innovation Adoption Model is based on the diffusion of innovations theory, looks at
consumers as adopters of new innovation and classifies them into categories such as innovators,
early adopters, early majority, late majority, and laggards based on how soon they adopt an
innovation i.e. purchase a product. Innovators are the first whereas laggards are the last to
purchase .This model points out that trying to quickly convince the mass of new, unconventional
idea is futile. It makes more sense in convincing innovators and early adopters and taking other
gradually through the decision making process(awareness, interest, evaluation, trial and
adoption) that occurs when individuals consider adopting a new idea. The adoption process can
be speeded up through demonstration or sampling programme that increase consumer confidence
in the new product

Traditional Consumer Response Hierarchy Models

Information Processing Model

The information processing model of advertising effects developed by William McGuire. The
model assumes the receiver in a persuasive communication situation like advertising is an
information processor or problem solver. McGuire suggest the series of steps a receiver goes
through in being persuaded constitutes a response hierarchy. The stages of the model are similar
to hierarchy of effects; attention and comprehension are similar to awareness and knowledge and
yielding is synonymous to liking. This model includes a stage not found in other models:
retention or receiver’s ability to retain that portion of the comprehended information that he or
she accepts as valid or relevant. This stage is important because most promotional campaigns are
designed not to motivate consumers to take immediate action but rather provide information they
may use later when making a purchase decision. Each stage in the response hierarchy is a
dependent variable that must be attained and that may serve as an objective of the
communication process.

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Evaluation of Traditional Consumer Response Hierarchy Models

The response models are useful to communicators in several ways. An understanding of the
consumer response stages explains hoe consumer relate to advertising in terms of their interest in
buying a product when they see an ad. Marketing that accounts for each response stage and
moves customers through each stage can increase the result of advertising.

Understanding the response stage also helps in making strategic decision as to audience in which
phase should be addressed through a specific campaign. for eg: if advertising is targeted at
people who are at the acquirement stage, it should be more persuasive and focus on definite
product advantage and distinct feature or image.

In spite of the usefulness of these models, they do suffer from some oversight. All the models
mentioned assume that consumer moves through a hierarchical response of cognitive-affective-
behavioral response. They assume that consumer pass through these stages only in that order .
This sequence is appropriate when the consumer has high involvement with the product category
and the differences among the products are high. However the hierarchy is not always relevant
and has been questioned as a result of extensive research in the fields of marketing.

Alternate Response Hierarchies

Michael Ray developed a model on information processing that identifies three alternative
ordering of these stages based on the perceived product differentiation and product involvement.
These alternative responses are standard learning hierarchy, dissonance/ attribution and low
involvement models.

Standard Learning Hierarchy

In many purchases when the consumer is highly involved in the purchase process and there is
much differentiation among the competing brands, the consumer will go through the response
process as depicted by the traditional communication models which consist of learn-feel-do
sequence. Information and knowledge acquired or learned about various brands are the basis of
developing affect or feelings that guide what the consumer will do(actual trial or purchase). In
this hierarchy the consumer is viewed as an active participant who gathers information through
active learning.

Dissonance/Attribution Hierarchy
Second response hierarchy proposed by Ray involves situations where consumers first behave
then develop attitude or feelings as a result of that behavior that behavior and then learn or
process information that supports the behavior. This model is do-feel-learn model, which occurs
in situations where consumers must choose between two alternatives that are similar in quality
but are complex and may have hidden or unknown attributes. The consumer may purchase the
product on the basis of a recommendation and then attempt to support the decision by developing
positive attitude towards the product or by even developing negative feeling towards the rejected
alternative. This reduces any post purchase dissonance or anxiety the consumer the consumer
may experience resulting from the doubt over the purchase.

30
According to this model, the marketers need to recognize that in some situations attitude develop
after purchase. According to Ray, in these situations the main effect of mass media is not the
promotion of original choice behavior and attitude change rather the reduction of dissonance be
reinforcing the wisdom of the purchase or by providing supportive information.

As with the standard learning model, this response hierarchy is likely to occur when the
consumer is involved in the purchase situation.

Low involvement hierarchy

In this response process the receiver is viewed as passing from cognition to behavior to attitude
change. This learn-do-feel sequence characterize situations of low consumer involvement in the
purchase process and there are minimal differences among the brand alternatives and mass media
advertising is important. In the low involvement hierarchy consumer engages in passive learning
and random information catching rather than active information seeking.

In a low involvement situation the consumer do not compare the message with the previously
acquired beliefs, needs or past experiences. The commercials result in subtle changes in the
consumer’s knowledge particularly with repeat exposure. This change in knowledge does not
result in attitude change but is related to learning something about the advertised brand such as
ad theme, slogan logo etc. When the consumer enters the purchase this information may be
necessary to trigger purchase, the consumer will then form attitude towards the purchased brand
as a result of experience with it.(Herbert Krugman’s Theory)

Alternate Response Hierarchies

Topical Involvement
High Low
Standard Learning Model

Cognitive Learn
Low involvement Model

Affective Feel
Cognitive Learn

High Conative Do
Perceived
Dissonance/Attribution Model
Product
Conative Do
Differentiation
Conative Do

Affective Feel
Affective Feel

Cognitive Learn

Low
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In a low involvement situation the advertiser must recognize that the passive, uninterested
consumer may focus more on the non-message elements and through repletion, the product’s
name rises in customer’s awareness bringing a cognitive change of increased product memory
which ultimately translates to purchase

Evaluating Alternative Response Hierarchies Models

The various response models presents an insight into the various ways consumers may respond
to the marketing communication. They encourage marketing communication managers to
understand the nature of the product, level of audience involvement, differences between product
alternatives and mass media significance for the product before forming promotional strategies.
If the communicators are successful in determining the type of response process that is most
likely to occur for their product, it helps in setting appropriate advertising objectives and
increasing the effectiveness of the message.

Although traditional and alternative response models posit different ways in which the consumer
may respond , they do not adequately explain all response hierarchies. Also the model does not
talk about the negative cognitive evaluation of an ad , which is possible if the consumer has
formed negative perception for a product based on personal experience. When a negative trial
experience precedes exposure to an ad, hence the cognitive evaluations of the ad are more
negative.

Cognitive Processing of Communication

When ads change consumer attitudes in high involvement situations, it is quite natural to assume
that this occurs because the consumers learn from the advertising message and this change in
attitude towards the brand is the result of learning. However research in 1960’s and 1970’s
revealed that there was weak relationship between consumer’s recall of message content and the
attitude towards the advertised brand. The response hierarchy models fail to explain the
underlying reasons that causes the resulting reaction. This lead researches to try understand the
nature of cognitive reactions to advertising messages. What appeared to be really relevant in
determining attitude was the nature of thoughts that emerged in the heads of consumer when the
ad was shown.

Cognitive Responses, the thoughts that occur to consumer’s mind while reading, viewing and
/or hearing communication. Cognitive response approach has been widely used in research by
both academicians and advertising practitioners. Its focus has been to determine the type of
responses evoked by an advertising message and how these responses relate to attitude towards
the ad, brand attitudes and purchase intentions. The following figure depicts the basic cognitive
response the research has identified.

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Cognitive Response Model

Product/ Message Thought : These thoughts relate to brand or claims made in the message.
There are two types of responses in this context, Support Arguments and Counterarguments.

Counterarguments are the thoughts the recipient has that are opposed to the position taken in the
message, Support Arguments are thoughts that affirm the claims made in the message.

When advertising claims oppose the existing consumer beliefs, the possibility of counter
argument increases If the counter argument are more , the chances of message acceptance
decreases considerably. On the other hand support arguments help message acceptance. The ads
should encourage support arguments and minimize the chances of counter arguments.

Source Oriented Thoughts: Thoughts of this category are directed at the source of the ad
message. Negative thoughts about the endorser or advertiser are called Source Derogations .
Such thoughts generally lead to reduction in the message acceptance. If the endorser is perceived
as unreliable, dishonest or irritating type, the message is likely to be unacceptable. On the other
hand thoughts that are positive and favourable towards the source are termed as Source Bolster.

Advertisers attempt to contract endorsers who are liked by the target audience to increase the
message acceptance and credibility.

Ad- Execution Thoughts: This category of cognitive response consists of individual’s thought
about the ad itself. While reading, viewing or hearing an advertisement many of the thoughts that
audience members have that may not relate directly to the message or product. Some of these
thoughts may possibly relate to their own lives and experiences or thoughts may only the ad
execution such as tones, colours, visual quality etc. These thoughts may prove favorable or
otherwise. These aspects of thoughts are important because of their effect on audience member’s
attitude towards the brand or the advertising message. These thoughts are affective reactions
representing the consumer’s attitude towards the ad. Much attention has been focused on
consumer’s affective reactions to ads especially television commercials. Attitude towards the ad
33
represents the receiver’s feeling of favourability or unfavourability towards the ad . Advertisers
are interested in consumer’s reactions to the ad because these affective reactions are important in
determining the advertising effectiveness since these reactions may be transferred to brand itself
or directly influence purchase intentions.

Many advertisers use emotional appeals in the ad executions to evoke feelings and affective
reactions as the basis of their creative strategy.

The cognitive process model of communication proposed here sees a communication not as the
transmission of information, but as a series of challenges, rewards, and affordances (resources
and constraints) that provoke and guide the receiver’s perception, thought, inference,
recognition, and memory.

Elaboration Likelihood Model (ELM)

The model was devised by Ricard Petty and John Cacioppo to explain the process by which
persuasive communication (such as ads) lead to persuasion by influencing attitude. According to
the model, attitude formation or change process depends on the nature and amount of elaboration
or processing of relevant information that incur in response to a persuasive message.

The ELM shows that elaboration likelihood is a function of two elements, motivation and the
ability to process the message. Motivation to process the message depends on such factors as
involvement, personal relevance and individual needs and arousal levels. Ability depends on
individual’s knowledge , intellectual capacity and opportunity to process the process the message
for example an individual viewing a funny commercial may be distracted from the processing of
information about the product.

According to the model, there are two basic routes to persuasion and attitude change viz. the
central route to persuasion and the peripheral route to persuasion. (Figure xx)

The consumer may consciously and diligently consider the information content in the ad
message, in developing or changing the existing attitude towards the advertised brand. In this
situation the attitude is formed or changed as a result of careful consideration, analysis, scrutiny
of message arguments and integration of relevant information with regard to the advertised
product- High Elaboration and Likelihood. Basically the consumer is highly involved in the
processing the advertisement. Information processing of this type is called Central Route to
Persuasion. Predominantly favourable cognitive responses (support arguments and source
bolster) lead to favourable changes in the cognitive structure which lead to positive attitude
change or persuasion. Conversely if the cognitive processing is predominantly unfavourable
and results in counterarguments and or source derogations the changes in cognitive structure are
unfavourable or result in negative attitude change. Attitude

34
The ELM Model

change occurring as a result of central processing are relatively enduring and more resistant to
subsequent efforts to change with respect to attitude object.

Under the peripheral route to persuasion, the receiver is viewed as lacking motivation and ability
to process information and is not likely to engage in detailed cognitive processing. Rather than
evaluating the information presented in the message, the receiver relies on peripheral cues that
may be incidental to the main arguments. The receiver’s reaction to the message depends on how
he or she evaluates these peripheral cues. The consumer may use several types of peripheral cues
or cognitive shortcuts rather than evaluating the message arguments presented in the ad.
Favourable attitude may be formed if the endorser in the ad is viewed as an expert, or is
attractive or certain executional aspects of the ad such as music, color, or visual effects are liked
by the receiver. These cues may help the receiver form positive attitude towards the brand even
if they do not process the message portion of the ad. However these peripheral cues may also
35
lead to rejection of the message for example with the if the endorser is not liked or have
credibility problems or ad is not executed well may lead to rejection of message without any
consideration to the information or message arguments. The ELM views attitudes resulting from
peripheral processing as temporary, so favourable attitude must be maintained by continual
exposure to the peripheral cues such as through repetitive advertising

Implications of the ELM

The elaboration likelihood model has important implications for marketing communications
particularly with respect to involvement. For example if the involvement level of target audience
is low the peripheral cues may be important than the ad message on the other hand if the
involvement level is high the message should present strong arguments that are difficult for the
receiver to refute or counter argue.

ELM also showed the effectiveness of source in presenting the advertising message, if the level
of involvement is low, the endorser has significant effect on the attitude. When the receiver’s
involvement is high, the use of endorser has no significant results on brand attitude, the quality
of the arguments used in the ad are more important.

The ELM model suggests that the most effective type of message depends on the route to
persuasion that consumer follows. Many marketers recognize that when the involvement levels
are low for their product categories consumers are not motivated to process advertising in detail,
creative tactics may be employed that emphasize peripheral cues and use repetitive advertising to
create and maintain favourable attitude towards their brand.

Engel Kollat Blackwell Model [EKB Model]

To recognize the decision-making process of the customers purchasing, Engel, Kollat and
Blackwell created the Engel Kollat Blackwell customers’ purchasing model (“EKB model”) to
explain customers’ decision-making structure in their purchasing behaviors.

The model was originally developed in 1968 by Engel Kollat and Blackwell but has undergone
several revisions. In 1990 the most recent version has came out by Engel, Blackwell and Miniard

Consumer behavior is a complex process involving the activities people engage in when seeking
for, choosing, buying, using, evaluating and disposing of products and services with the goal of
satisfying needs, wants and desires. Marketers success in influencing purchase behaviour
depends largely on how well they understand consumer behaviour.
According to the model there are five stages in the consumer decision making process
comprising the Problem Recognition, Information Search, Alternation Evaluation, the purchase
Choice and the Outcome

The influencing variables on these variables are stimulus inputs like information from the mass
media, personal contacts and general market source, information processing involves the active
memory where information is stored and from where information can be retrieved next variable
is decision process, this involves search process, evaluation process and deciding process. Fourth
variable influencing the five activities is the environmental influence this variable includes all

36
the way exogenous variables crucial for the consumer buying process like income, family,
culture, social class etc of consumer.

Consumer Decision Making Process

EKB Model

Entry to the model is through need recognition when the consumer acknowledges a discrepancy
between their current state and some desirable alternative. This process is driven by an
interaction between processed stimuli inputs and environmental and individual variables. After a
need has been acknowledged the consumer embarks on a search for information, both internally
through the consumers’ memory bank of previous experiences, and externally. The authors
argue that the model is suitable for use in explaining situations involving both extended problem
solving and limited problem solving by modifying the degree to which various stages of the
model are engaged in by the consumer. The depth of information search will be highly dependant
37
on the nature of problem solving, with new or complex consumption problems being subjected to
extensive external information searches, while simpler problems may rely wholly on a simplified
internal search of previous behaviour. Information is said to pass through five stages of
processing before storage and use, namely: exposure, attention, comprehension acceptance and
retention

The alternative consumer choices are evaluated by the establishment of beliefs, attitudes and
purchase intentions. This process of evaluation is influenced by both the environmental
variables and the individual variables. Intention is depicted as the direct antecedent to purchase
which is the only outcome tolerated by the model. Inhibitors are not explicitly depicted as
mediating between intentions and purchase, however the environmental and individual
influences are again said to act on purchase. Situation is listed as an environmental influence,
and while this factor is not clearly defined, it could include such factors as time pressure or
financial limitations which could serve to inhibit the consumer from realising their purchase
intentions.

Consumption is followed by post-consumption evaluation which serves a feedback function into

future external searches and belief formation

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 LESSON 4
WHAT IS ADVERTISING?
The word advertising is derived from its Latin root ad verster which means to ‘to turn
towards’ or ‘to attract attention to’. Advertising is the key element in the promotion mix of
marketing. It is the tool used by marketers to disseminate information about the product to
reach out to the end user. Advertising is expected to create brand image and loyal customer
base. It is mediated communication which entails buying space and time in mass media such
as television, newspaper, radio to persuade consumers to select a particular brand amidst the
competing brands

Promotion is the communication arm of marketing and includes marketing activities used to
inform, persuade, remind the target market about the organisation, its products, services,
and other activities to build a favourable image

Promotion Mix constitutes specific group of marketing activities concerned with the
communication aspect with existing or potential consumers and the relevant public. It
involves activities such as advertising, personal selling, sales promotion, direct marketing,
publicity/PR , events and sponsorships.

Advertising is one of the largest generators of revenue in the world economy. It generates
employment directly and indirectly and influences a large section of people. Advertising
interests, entice, entertains and creates lifestyle.

Advertising is many things at the same time much depend on how a person views it. The
growth of advertising industry in any country is in direct relation to the level of business
activity and the health of the economy.

According of American Marketing Association:

“Advertising is the paid form of non personal presentation and promotion of ideas, goods and
services by an identified sponsor “

It presents an explanation of what advertising is while offering insights into what advertising
is not. The key words describing advertising are presentation and promotion. Presentation
refers to an offering while promotion involves communication of ideas and persuasion. In
other words advertising offers people ideas, goods and services and persuades them about
their benefits, utility and desirability.

The definition given by the American Marketing Association did not suggest about
persuasive and creative aspects of advertising and indicate functional responsibility. Dorothy
Cohen in 1968 offered the following definition covering these aspects

“Advertising is business activity, employing creative technique to design persuasive

communication in mass media that promote ideas, goods and services in manner consistent
with the advertiser’s objective, delivery of consumer satisfaction and development of social
and economic welfare”
39
Cohen’s definition takes care of the aspirational and functional aspects of advertising. She
described advertising as business activity that uses persuasive techniques to promote ideas,
goods and services. According to her Advertising has twin function that takes care of both the
sender(the advertiser of product or services whose objectives it must fulfil ) and the receiver
(the consumer , whose satisfaction must be kept in mind) In the end Cohen talks about the
social responsibility and the economic welfare of society.

According to Borden and Marshall(1971), “ Advertising consist of all those activities by

which visual or oral messages are addressed to selected public for the purpose of informing
and influencing them to buy product or services or to act or to be inclined favourable towards
ideas, persons, trademarks or institution featured . As contrasted with publicity and other
forms of propaganda, advertising messages are identified with the advertiser either by means
of signature or an oral statement. Further advertising is commercial transaction involving
pay to the publisher , broadcasters and others whose media are employed”

Other Definitions:

According to Dunn and Barban,

“Advertising is paid, non personal communication through various media by business firms ,
non profit organisations and individuals who are in some away identified in the advertising
message and who hope to inform or persuade members of a particular audience”

According to William J Stanton,

“Advertising consist of all activities involved in presenting to a group, non personal, oral or
visual, openly sponsored message regarding a product, service or idea. This message called
an advertisement, is disseminated through one or more media and paid for by the identified
sponsor”

According to Philip Kotler,

“Advertising consist of non personal forms of communication conducted through paid media
under clear sponsorship”

When one closely looks at all the definitions and arguments put forward by various experts,
advertising comes out as an art and to an extent an applied science of persuasive
communication. It informs, incite, interest the prospect about the product and later reinforce
the message over a period of time either by similar positioning or changed one, keeping in
view strategy of competing brands , changing expectations of consumers, changed
environment etc.

Advertising can summed up as:

Advertising is mass paid communication of building brands through persuasive

communication and positioning them in consumers perception with the constant eye on
market environment and consumer expectation.

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Features of Advertising

Paid form: The paid aspect of the definition reflects the fact that the as oppose to publicity
that refers to the stories or brand mention in mass media without any payment, space or time
for an advertising message are usually paid for. For example: many magazines, newspapers
and other media voluntarily donate space and time and also prepares ads for certain public
service announcements and social causes.

Non Personal presentation and promotion: Advertising is non personal offering no

personal interaction, delivered through mass media as oppose to personal selling where there
is face to face personal interaction

Ideas, Goods and Services: Advertising as communication tool is used not only to present
and promote goods and services with the intend of selling them, it is also increasingly used
to further the goals f public interest and social causes For eg: ads discouraging female
infanticide, making people aware of AIDS , asking for donations to help victims of natural
disaster

Identified Sponsor: These words clarify the difference between advertising and propaganda.
Just like advertising propaganda attempts to present certain opinions and ideas which may
influence public attitude and action, however the source of propaganda remains unknown and
therefore authenticity of information available is doubtful. People generally do not know who
is the originator however in advertising the sponsor of ideas, goods or services is known

Controlled: The advertiser controls the content of the advertising message, its time and
direction. Advertisers say what they want to say by selecting appropriate medium, direct the
message to audience whom they want to target. In publicity it is not under the control of the
advertiser.

Mass Communicated Media: The broad group of audience can be best reached by mass
media such as newspapers, magazines, television, radio etc.

Persuasion: The major objective of advertising inherent in presentation and promotion of

ideas, goods and services is to achieve pre determined objectives through persuasive
communication or reinforcement of desired attitude or behaviour.

Role of Advertising

Advertising can also be explained in terms of the role it plays in business and society

 Marketing Role: Advertising is the most popular marketing tools used by marketers.
The importance of advertising within the marketing function can be interpreted in
terms of the purpose it serves in marketing efforts of the organization.
 It helps in building and sustenance of the brand
 It facilitates segmentation , targeting , positioning of the offerings of the marketer
 It helps in generation of revenues and profits

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  Communication Role: Advertising is form of mass communication. Advertising
informs and also create an image that goes beyond the straight forward facts.
 Economic Role: There are two points of view about how advertising affects an
economy in the first place advertising is persuasive communication that it decreases
the likelihood that consumer will switch to competing brand regardless of price
change. By featuring other positive attributes and avoiding price the consumer makes
decision on these non price factors.
 The second approach views advertising as vehicle for helping consumers assess value
Comment [01]: Check green book.
 Societal Role: Advertising also has number of social roles. It informs us about the
improved products helps to compare features and make informed decision. It mirrors
fashion design trends and add to our aesthetic sense
However there is question whether advertising follow trends or does it lead them?
Does it cross the line between reflecting social values and creating social values?

Fucntions of Advertsing Comment [01]: Neeru Kapoor

Publicity
Publicity comprises of non personal communication by third party sources regarding an
organization or its products. In other words when third party communicates about an
organization’s product, the result is publicity for the said product. Most publicity is obtained
in the form of media coverage or consumer word of mouth. It includes activities to provide
newsworthy information to reporting sources like media to build a favourable image. A basic
tool of publicity is press release for example a fashion house before launching its new design
of apparel organizes a press preview, it is aiming at publicity, it is possible that some
journalists will write appositive story and others may be critical. As publicity is uncontrolled,
in other words it is up to the media to use the information and at times to selectively pick one
or two pints from the press release or press conference . A prime advantage of publicity is its
low cost since an organisation does not have to directly pay for it. Also publicity has high
credibility among audiences because it is believed to be unbiased reporting by the third party
sources , not sponsored by the organization. For example: we often base our choice of movies
or restaurants on the basis of ratings they get in the local newspaper.

Difference between Advertising and Publicity

Basis Advertising Publicity
Source The message originates from The message originates from
the advertiser/ sponsor the media
Sponsor The identity of the sponsor The identity of the sponsor
is clearly known is not clear
Control The sponsor has entire Media has control over the
control over the contents and contents and timing
timing of the message
Nature of Message Persuasive message designed Informative message
to persuade consumer to designed to inform public.
favour the product, service or
idea
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Payment The sponsor/ advertiser pays The sponsor/ advertiser does
to get the message delivered- not have to pay directly-Non
paid form paid form
Credibility Since the message is paid for Since it is third party opinion
by the advertiser- it is – it is considered more
considered less credible credible than advertising

Advertising Management Process

Importance of Advertising

To Business:

Steady Demand: Advertising create steady demand by smoothing out the seasonal or
cyclical fluctuations. By suggesting new and more frequent use of the product advertising
helps to maintain demand throughout the year.

Economies of Scale : Advertising facilitates mass distribution of goods , direct distribution

and rapid sales turnover helps to reduce cost of distribution. Mass distribution and steady
demand further leads to large scale and regular production thus bringing in the scale
economies.

Build Goodwill: Advertising helps in creating good image of the firm and favourable image
of its products, which increases the capacity of the firm to survive completion and develop a
foothold in the market.

Supplements Salesmanship: Advertising makes the job of personal selling easy by making
consumers aware of the firm’s offering. It creates prospective buyer ready for purchase.

Meet Competition: Advertising plays pivotal role in establishing and maintain brands by
creating brand loyalty, it supplements personal selling and sales promotion. It creates
preference for particular product thus helps the firm in meeting growing competition in the
market.

Introduction of New Product: Advertising is helpful in introducing new products by

creating awareness and gaining their acceptance. By informing about the product it stimulates
their interest and persuades them to buy it.

For Consumers

Facilitates Purchasing: Advertising makes purchasing easy by reducing the time and effort
involved in shopping. People become aware of the source and availability of different
products and need not search them out

Wide variety: Consumers get to know about the availability of various brands in the market
with their unique features. This provides them with the wider variety to choose from.

Educates Consumer: Advertising provides education and knowledge to consumers about the
new products and their diverse uses.
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Reduced Price: Due to large scale production and distribution , economies of scale factors in
that lowers the cost per unit of product. As a result consumers get goods at lower price

Middlemen

Quick Turnover: Successful advertising creates increasing and steady demand of the goods
which facilitate the middlemen in the form of quick turnover of the goods and their quicker
margins.

Moe of Communication: Advertising plays important role in informing the consumers about
various features of the product or service, it facilitates the job of middlemen and saves them
the botheration of spending time, energy and effort with each and every consumer in order to
convince them about the product attributes

Low Cost of Doing Business: Because of quick turnover, considerable savings in terms of
inventory costs is achieved.

Society

Employment: Advertising creates not only direct employment in the field of advertising but
also helps in generation of more jobs in production, finance, marketing , research and
development fields

Sustains Media: Advertising provides a major source of revenue to newspapers, magazines,

radio, and television. The benefit is passed on to the society in the form of reduced prices

Encourage art and creativity: Advertising promote the creative energies of the people
involved in designing and developing advertisements.

Stimulate research and development: In absence of advertising many products and

innovations would remain confined to laboratory

Incentive to progress: Advertising is a great motivating factor , it creates desire for better
standard of living. People are induced to work hard and earn more to buy new products
brought to their knowledge through advertising.

Creates Social Awareness: Advertising is an effective medium for spreading awareness and
educating people about their social and cultural values

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 LESSON 5

ADVERTISING OBJECTIVES

Objectives could be considered as “ strategic decisions” they serve as the base for much of
campaign’s strategy and tactics, as well as basis for measuring the effectiveness of
advertising . Once objectives are clearly in place, the planer can proceed to develop strategic
decisions.
An important reason for setting advertising objectives is that they provide benchmark against
which the success or failure of the promotional program is measured. Without specific objectives
it would be extremely difficult to determine what the advertising and promotion efforts
accomplished.

Defining clear objectives helps in taking operational decisions about advertising, These decisions
are:

o How much to spend on advertising?

o What media mix to be used?
o What should be the frequency of display of advertisement or campaign?
o What should be the content and presentation of advertisements?
o What methods should be used for evaluation the accomplishments of the advertisings?

Without clear objectives, it is not possible to take correct decision concerning advertising copy
and media. Advertising objectives help coordinate the efforts of media planners, copywriters and
others involved in the advertising campaign.

To summarise some of the main considerations in setting of advertising objectives can by

illustrated as:

WHAT What role is the total marketing effort is advertising expected to fulfil?
WHY Why is it believed that advertising can achieve its role-what assumptions are
necessary?
WHO Who should be involved in setting advertising objectives, who should be
responsible for coordinating, implementing and subsequent evaluation? Who are
the audience?
HOW How are the advertising objectives are put into practice- what are the precise sub-
objectives and how they are intended to be attained and subsequently evaluated for
the level of achievement?
WHEN When is the implementation for various parts of the program be achieved ? When
can response be expected to each stage of implementation

Functions and Nature of Advertising Objectives:

Some of the important objectives of setting advertising goals are

45
Provide direction to advertising decisions by serving as criteria: Since planning and
execution of advertising campaign involve large number of decisions , setting advertising
objectives draws attention to many specific elements in the campaign.

Provide bases for evaluation of results: Since setting objectives assist marketers in making
explicit what they seek to accomplish through a particular campaign. It also permits to assess the
success and failure of certain strategies and task put into action for accomplishment of the
objectives.

Guides decision makers to seek understanding of the working of the entire campaign process:
The decision maker of the promotional campaign want to know not only the factors that are a
part of the campaign but also relationships among the factors.

Enhance Communication within the organisation: Proper setting of the advertising goals serves
to make known to various managers the kinds and degrees of responsibility for specific tasks.

Types of Advertising Objectives

Advertising Objectives
Communication Marketing
Objectives Objectives

Increase
Create Awareness
Sales

Develop Increase
Comprehension Marketing share

Create Buld
Conviction Goodwill

Create Intoduce New

Desire Product

Secure Action Enter new Market

Communication Objectives: As means of communication advertising aims at following:

Create Awareness: One of the primary objective of advertising message is to create awareness
amongst the target audience. People are stopped by communication message either because they
see they see it some promise of reward or because it is easier to notice the communication than to
ignore it(principle of least effort)

46
Develop Comprehension: Second communication objective of advertising is to create
understanding. Audience seek either consciously or subconsciously for certain information but
they usually do not work too hard to find it. Advertising educates customers by providing
knowledge about the product.

Create Conviction: Advertising seek to convince target audience that the captioned product will
meet their needs or requirements. Superiority of the brand is highlighted and attempt is made to
develop positive attitude towards the advertised product and enhance the image of the brand in
the mind of potential consumers.

Create Desire: Advertising see to convert the dormant or unstated needs, wants or urges into
desires through persuasive communication.

Secure Action: No advertising can compel anyone to act but it an impel people towards
purchase or favourable image of the product. An impulse to act generally comes from basic two
forces:

a) belief that what advertisement says is true

b) conviction that product will satisfy consumer’s prime motivating forces

Marketing Objectives: can be elaborated as following:

Increase sales: An advertising campaign attempts to increase demand by increased use of

product, frequency of use, variety of use and so on new customers are created and existing one
are induced to use the product extensively subsequently adding to the sales or revenue of the
advertiser.

Increase Market Share: Advertising seek to overcome competition, it is used to capture larger
part of total market thereby increasing the market share.

Build Goodwill: Advertising also aims at creating favourable image or reputation for the firm
thus builds goodwill.

Introduce New Product: Another marketing objective of advertising is to facilitate launch of

new product special feature and benefits are highlighted so that it is quickly accepted by the
buyers.

Enter New Market: Advertising facilitates entry of the firm into new territories by making
people aware about their offering. Advertising also supports personal selling.

Marketing versus Communication Objectives

Marketing objectives are generally stated in the company’s marketing plan and are usually
defined in terms of specific, measurable outcomes such as sales, market share, profits or return

47
on investment. Good marketing objectives are quantifiable. Too be effective objectives must be
realistic and attainable.

Many promotional planners approach promotion from communication perspective and believe
that objective of advertising and other promotional mix elements is to communicate information
or selling propositions about the product.

The two perspectives have been a topic of considerable debated and have been elaborated in the
following sections.

Sales as Advertising Goal

For many promotional spending represents an investment of firms scarce resources that require
economic justification. Rational managers generally compare investment option on a common
financial basis such as Return on Investment (ROI)

Many managers believe that money spent on advertising and other form of promotion should
produce measurable results such as increasing sales volume or increasing brand’s market share.
The success and failure of advertising should be evaluated on the basis of achievement of sales
results. They prefer sales oriented objectives to make individuals involved in advertising and
promotion think in terms of how the promotional program will influence sales

Problem with Sales Objective

Poor sales result can be due to any of the marketing mix variables including quality, distribution ,
technology, pricing etc(As shown in fig.). Advertising can make consumer aware and interested
in the brand but it can’t make them buy it particularly if it is priced too high , it is not readily
available

There is an adage “ No amount of advertising can sell bad product”

48
 Technology

Advertising
and Economy
Promotion

Sales

Product
Distribution
quality

Price Competition

Factors Affecting Sales

Another problem associated with sales objective is that the effects of advertising often occur over
an extended period. Many experts recognize that advertising has lagged or Carry Over Effect.
Money spent on advertising do not necessarily has immediate impact on sales. Advertising may
create awareness, interest or favourable image but these feelings will not result in actual
purchase until the consumer enters the market, which may occur later. The carry over effect adds
to the difficulty of determining the precise relationship between advertising and sales.

Another problem with sales objective is that they provide little guidance to those responsible for
planning and developing of promotional program. The creative people working on the account
need some direction as to the nature of the advertising message company intends to communicate
the target audience and the particular effects of response sought.

Where Sales objectives are appropriate: While there can be many problems attempting to use
sales as objective for promotional campaign, there are situations where sales objectives are
appropriate.

 Direct Response Advertising- in one type of advertising that evaluates its effectiveness
on the basis of sales. Product is advertised through materials mailed to the customers in
newspapers and magazine, through internet through internet or television, consumer
purchase the product by mail or through net or by calling toll free number. This form of
advertising generally sets objectives and measures success in terms of sales generated by
the ad.

49
  Retail Advertising: also seeks direct response particularly when sales or special events
are being promoted. Foe eg: special discounts and other sales promotional schemes
announced by the retailer that invokes the consumer to make immediate purchase, rush to
the store,. In this case also sales criteria is used as basis of determining the effectiveness
of advertisements

Communication Objectives

Advertising and other promotional efforts are designed to achieve such communication as
awareness, brand knowledge , favourable attitude, image and purchase intention. Consumers are
not expected to respond immediately rather advertisers realize they must provide relevant
information and create favourable predispositions towards brand before purchase behaviour will
occur

Proponents of communication based objectives generally use Communication Response

Hierarchy models(Refer section on Communication Response Hierarchy) when setting
advertising and promotion objectives.

In all the models the consumer pass through three successive stages : Cognitive, Affective,
Conative .

Communication Effects Pyramid: Advertising and promotion perform communication task in the
same way a pyramid is build, by first accomplishing lower level objectives such as awareness
and comprehension, Subsequent tasks involve moving consumers who are aware and
knowledgeable about the product or service to higher levels of the pyramid. The initial levels of
pyramid as relatively easier to accomplish as compared to the towards the top such as trial or
purchase Also the percentage of prospective customers will decline as movement up to the
pyramid (Refer fig.)

The communication pyramid can be used to determine promotional objectives for brand, the
promotional planners must determine where target audience lies with respect to the various
blocks of the pyramid. If awareness level for brand and knowledge for its features is low, the
communication objectives should be to increase them. If people are aware about the product and
its features but liking or preference is low the advertising goal may be to create image of the
brand and move the consumer to purchase.

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Communication Effects Pyramid

Problems with Communication Objectives: Many experts do not accept communication

objectives some say it is too difficult to translate sales goal into specific communication
objectives. In attempting to translate the sales goal into specific communication objectives
promotional planners often are not sure of what constitutes adequate level of awareness,
knowledge, liking, preference or conviction. The promotional manager through his personal
experience and judgment can determine these levels. Also average scores on various
communication measures for the advertised and similar products should be considered along
with the levels achieved by the competitor’s products.

At some point the sales oriented objectives must be translated into what the company expects to
communicate and to whom it hopes to communicate. For example if the objective for a brand is
to increase the sales by 10 percent, the promotional planners should think in terms of message
that will be communicated to the target audience to achieve this. Possible objectives may be:

 Increase the percentage of consumers in the target market who associate specific feature,
benefit or advantage with the brand
 Encourage the current consumers to use the product more frequently
 Encourage the consumers who have never used the product to try it

DAGMAR Approach

In 1961 Russell H. Colley prepared a report under the sponsorship of Association of National
Advertisers titled Defining Advertising Goals for Measured Advertising Results(DAGMAR).The
major thesis of DAGMAR model is that communication objectives are the logical basis for
setting advertising goals and objectives against which the results should be measured.
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Colley’s Rationale for communication objectives was:

“Advertising’s job is purely and simply to communicate to defined audience information and
frame of mind that stimulates action. Advertising succeeds or fails depending on how well it
communicates the desired information and attitude to the right people at the right time and at
the right cost”

Communication Task

Advertising is mass, paid communication that is intended to create awareness, develop

comprehension, develop attitude and induce action .

According to DAGMAR approach the advertising objective involve communication task as

opposed to marketing and it is specific , involving defined task, among defined audience, in a
given time period.

Colley propose that communication objectives be based on hierarchical model through which the
brand or objects must climb to gain acceptance. The hierarchy of effects model consist of four
stages:

Awareness →Comprehension→ Conviction →Action

Hierarchy of Effects model of communication process

 Awareness: Involving target audience aware of the existence of the brand or company
 Comprehension: developing an understanding what the product is what are its specific
characteristics, how it differ from the competitors and what it would do for them
 Conviction: developing mental disposition in the minds of the consumer to buy the
product
 Action: Getting the consumer try the product for the first time, visiting the showroom or
requesting information

There is no significant difference between Colley’s proposed model and other hierarchy of
effects models .
Colley also studied other specific tasks that advertising might be expected to perform in leading
to the ultimate objective of sale. He developed a checklist of 52 advertising tasks to characterize
the contribution of advertising and serve as starting point for establishing objectives

Another important contribution of DAGMAR was to clarify what constitutes good objective.
According to Colley the objectives should have the following feature:

 Stated in terms of concrete and measurable communication task

 Specify target audience
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  Indicate benchmark or starting point and the degree of change sought
 Specify time period for accomplishing the objectives

Concrete, Measurable Tasks: The communication tasks specified in the objective should be
precise written statement of what message or appeal advertiser wants to communicate to the
target audience. It should be specific and clear enough to guide the creative professionals to
develop the advertising message. Also objective must be measurable; there must be a way to
determine whether the intended message has been communicated properly

Target Audience: The key tenet of DAGMAR approach is specification of well defined target
audience for whom the advertising message is to be addressed for eg: target audience of a luxury
and premium car could be defined as Corporate Executive, Self Employed, Businessman. If the
target audience is not well defined the entire promotional effort may go waste.

Benchmark and the degree of change sought: it is important to know the target audience’s
present status with respect to response variables i.e awareness , knowledge, attitude etc and then
determine the degree of change sought by the advertising campaign for eg: the objective
statement may include to increase awareness level of brand X from current 10% to 40% amongst
the target audience. Determining target market’s present position regarding various response
stages require marketing research and without a benchmark measure quantitative assessment of
the result could not be ascertained. Benchmark is also a prerequisite to the ultimate measurement
of results an essential part of the DAGMAR is generation of well conceived benchmarks before
the advertising goals are determined.

Time Period: The final consideration in setting advertising objectives is to specify the time
period to accomplish the objectives. The period may could be a month or a year or more. With
the time period specified, a survey to generate a set of measures can be planned and anticipated .
All the parties involved in the campaign will understand that the results will be available for
evaluating which may result modification or change in the current effort

Assessment and Criticism of DAGMAR Approach

The DAMAR approach focussed advertiser’s attention on the importance and value of using
communication based objectives vis a vis marketing or sales based objectives to measure the
impact and success of advertisement campaign.

Colley’s work led to the improvement in the advertising and promotional planning process by
providing a better understanding of the advertising objectives towards which the planners effort
should be directed that usually results in less subjectivity and better communication and
relationship between client and agency

However this approach has been questioned on the following grounds concerning its value as
advertising planning tool:

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 Sales as Advertising Goal: Many believe that sales measure is the only relevant measure
of advertising objectives according to them if the communication task for example to
increase brand awareness does not affect sales positively what is the point even
measuring it and if there is no close relationship then sales must be measured directly i.e
Sales effect is the appropriate measure of evaluation of advertising campaign as
advertising is effective only if it induces consumer/customer to make purchase.

 Problem with Response hierarchy: the hierarchical model that postulates a set of
sequential steps of awareness , comprehension, conviction leading to action. The fact that
the consumer do not always go through this sequence of communication effects before
making purchase decision , there are alternative response models depending on the
purchase situation for example: action may precede attitude formation and
comprehension may result with the impulse purchase of low involvement product 1

 Practicality and Cost: Another criticism of DAGMAR concerns the difficulties involved
in implementing it . Expensive research is required to establish quantitative standards and
measure changes in response hierarchy and is also time consuming . Many argue that
DAGMAR is practical only for large companies with big advertising and research budget
and is beyond the means of small and medium sized firms

 Inhibits Creativity: DAGMAR approach is a planned and rational approach to setting

advertising objectives , it impose too much structure and may restrict the creativity of the
people engaged in and responsible for developing of advertising campaign. It is too
concerned with the quantitative assessment of campaign’s impact on awareness, recall or
specific persuasion measures. The emphasis is on passing number of tests rather than
developing a message that is creative and contributes to brand equity.

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 LESSON 6
DETERMINATION OF TARGET AUDIENCE AND POSITIONING

Market Segmentation: Concept

Market segmentation is the process of dividing the total market into total heterogeneous market
into relatively distinct homogeneous sub groups of consumers with common needs and
characteristics and selecting one or more segments to target with distinct marketing programme.

Market segmentation is the extension of the marketing concept . The central idea of this concept
is customer value and must be the core element of the business decisions.

When marketers provide range of product or service options to serve diverse consumers interest,
consumers are more satisfied.

Effective Segmentation

The following five conditions must exist for effective market segmentation:

1. Firm must determine whether the market is heterogeneous, if the product needs of
consumers are homogeneous, then it makes no sense to segment the market.
2. There must be logical basis to identify and divide the population in relatively distinct
homogeneous groups, having common needs and will respond to a marketing action.
3. The total market should be so divided so that comparison of estimated sales potential,
costs and profits of each segment are estimated.
4. Segments must have enough sales potential that would justify developing and maintain
marketing programme.
5. It must be possible to reach the targeted segment effectively.

Bases for Market segmentation: A segmentation variable is characteristic of individuals ,

groups or organizations that marketers use to divide and create the total market into segments.
Variables such as geographic location, age, gender, educational level, income, personality
characteristics, usage rate or product benefits sought are frequently used to segment markets.

Geographic Segmentation: Geographic units are the basis to divide the markets. These units
may be nations, states, regions, areas of certain climatic conditions or urban or rural divide. For
example Business houses engaged in import and export often divide the market as European
market, Asian market etc.

Demographic Segmentation: Market segmentation can be based on demographic variables such

as age, gender, education, family size, income and social class

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Producers of washing machines, microwave etc take family size as one of the variable in
segmenting the market. Toy manufacturer such as Funskool, Fisher Price segment the market on
the basis of age of the children

Behaviouristic Segmentation: dividing the market on the basis of variables such as benefit
sought, use, occasion, user status, usage rate, loyalty, consumer readiness stage is termed as
behaviouristic segmentation .For example: there are distinct groups of automobile buyers who
look for economy, status, value for money, luxury etc. Archies greetings cards are for various
occasions.

Psychographics Segmentation: When segmentation is based on personality or lifestyle

variables it is called psychographic segmentation.

Personality can be described as an individual view about himself(self image) and how others
views an individual. There are people who are ambitious , aggressive, confident, impulsive,
conservative, modern , gregarious, introvert or extrovert Some motor bikes manufacturers
segment the market on the basis of personality variables such as macho image, independent etc.

Lifestyle indicates how people live spend their time and money for example:

Based on the personality of adopting new products Rogers has classified consumers as
Innovators, Early Adopters. Early Majority, Late Majority and Laggards

Determining How many segments to enter

There are three strategic options available to marketers

a) Concentrated Marketing: In this strategy the organisation focus on only one sub group
and develop marketing programmes directed to it.
b) Differentiated Marketing: The marketer decides to enter several market segments or
develop special offerings for each .For example: Maruti Udyog is producing cars for
various segments, Nike offers athletic shoes for different sports.
c) Undifferentiated Marketing: This involves ignoring the differences among consumers
and offer just one product for the entire market. This strategy focuses on what is common
in needs of consumers rather than what is different . For example Coca Cola offered only
one product version for over ninety years for the whole market and hoped it would appeal
to everyone. Undifferentiated marketing strategy provides cost economies.

Target Audience

Marketer should focus on those customers for which the product is best suited. Any group of
people can be called a market only when they feel need for the product are interested in it and
have money to buy it and are willing to spend on it. The selection of target market helps the

56
marketer to identify the audience and group of customers to whom the advertising message
should be directed.

Audience selection is the process of comparing and evaluating different market segments and
then selecting one or more segments as the prospects with highest potential.

Target audience are the people who can be reached with a particular message and a certain
medium.

Audience can be profiled in terms of their demographic categories, personality, lifestyle,

geography etc(Refer Bases for segmenting the market)

Identification of Target Audience is helpful in advertising planning in the following ways:

Designing Advertising Copy: Advertising copy is the entire message and appeal which the
advertiser wants to convey to his prospects , it consist of all the written or spoken material in it,
including the main body , headline, sub heads, all the printed material such as captions , pictures
, slogans, brand names , advertisers name etc.

It is the heart and subject matter of the advertising. The content, design , layout of the copy
largely depends on the profiling of the target audience.

Determining Advertising Appeal: Advertising Appeal is defined as the approach used to attract
the attention of the prospective consumer . It is viewed as something that moves people. What
types of message is to be communicated and how it is to be presented entirely depends on the
type of target audience

Determining Media Mix and Media Vehicle: “Medium” is the general category of available
delivery system such as broadcast media(T.V or radio) print(newspaper, magazine), direct mail ,
outdoor advertising and other support media. “Media Vehicle” is the specific carrier within the
medium category such as Hindustan Times and Times of India are print vehicles.

The selection various medium of advertising and specific carrier of the advertising
message(media vehicle) depends entirely on the type of the target audience to be reached.

Determining Message Source: Message source refers to the spokesperson involved directly or
indirectly in delivering the advertising message. Who presents and portrays the advertising
message plays an important part in the effective execution of advertising campaign. A key
source, the endorser in an advertisement can be celebrity, announcer, spokesperson or common
consumer etc. Who endorses or demonstrates the product in the advertisement

Positioning

A product cannot exist unless it finds a place in the in the consumer’s perception . Any product
or brand is noticed only when it occupies a particular point or space in the individual consumer’s
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mind relative to the other brands in the same product category. This perception of the product is
subjective and is governed by individual ‘s needs, values, beliefs, experience and environment.
“Position” is the way the product or the brand is defined by consumers on important attributes.
Positioning is the perception of brand or brand it brings about in the mind of target consumer and
reflects the essence of that brand or product in terms of its functional or non functional benefits
judged by the consumer.

Thus a brand’s position is the set of associations the consumer has with the brand. A brand’s
position develops over years through advertising , publicity and word of mouth and usage
experience and can be sharp or diffuse depending on consistency of brand’s advertising over the
years. For example: HUL’s “Lux” is the beauty soap, Maggi brand of noodles is “ two minute
noodle”, BMW is positioned as “ the ultimate driving machine”

Brands can be expected to create a loyal feeling only when they are perceived as different in
some way , which is convincingly important and persuasive for the members of the target
segment, and this is what positioning is meant to accomplish. It is not really what the product
is or does but actually what the marketer does to the mind of the consumer

Positioning strategy is vital to provide focus on the development of an advertising campaign. The
strategy can be conceived and implemented in a variety of ways that derive from attributes,
competition, specific application, type of consumers involved or the characteristics of the
product class.

Positioning Approaches

Positioning by Corporate Identity: Companies that have become tried and trusted brands use
their corporate identity to imply competitive superiority of their brands such as Tata , Sony,
Godrej etc. Corporate credentials are added as a y line. This offers strong positioning and is used
in product line extensions or brand extensions.

Positioning by Product Attributes and Benefits: This is the most common approach to
positioning and involves setting brand apart from the competitor based on the specific brand
attributes and benefits offered. For example in case of toothpaste brands are positioned on
cosmetic, medicinal, taste or economy dimension. Close up is positioned as fresh breath and
cosmetic benefit, Pepsodent is positioned as gum care, Colgate is positioned as fresh breath,
decay prevention and taste

Positioning by occasion and time: the idea behind this positioning approach is to find an
occasion or time of use for example Vicks Vaporub is to be used for cold, Iodex for muscle pain
and sprains.

Positioning by Price Quality: This approach is quite powerful proposition and has two
dimensions One for consumers looking for value of money as purchase consideration, An

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excellent example in this category is of Nirma detergent powder , in early 70’s ad of good quality
detergents such as Surf had strong demonstration effect on middle class housewives, they wanted
o use it but were unable to buy because the price was high , Nirma positioned itself as quality
product that lathered well, clean well and the price was much less than Surf.

Another dimension of price-quality positioning is that product is positioned on high quality and
the price is kept high to communicate high quality. In many product categories such as Perfumes
it is not possible to assess quality , high price becomes an indicator for high quality

Positioning by Product Category: This positioning approach is used so that the brand is
perceived as belonging to another product category. For example: Dove brand of soap from HUL
is positioned away from the toilet soap category , it is not cleansing soap but moisturising cream.

This strategy is often used when the product category is overcrowded.

Positioning by Product User: The brand manager can determine a target segment for which the
product will be positioned. Various segment bases can be considered .For example: cars are
positioned on economy, safety, luxury, comfort, status etc.

Positioning by Competitor: This approach is used because marketer wants consumers to

believe that the brand is superior or at least as good as offered by the competitor. Earlier
advertisements by Apple computers wherein they compared their G3 processors against Pentium
III showing that G3 processor of 400 MHz is powerful than 750 MHz of Pentium III. This
strategy is often seen in case of comparative advertising

Determining Positioning Strategy…………. Comment [01]: p-57 belch and belch

The exercise of determining poisoning strategy is not easy and could prove to be difficult and
quite complex. However it becomes more manageable if it is supported by marketing research
and decomposed into the following process:

 Identify the Competitors

 Determine the competitors are perceived and evaluated
 Determine Competitor’s position
 Analyze the customers
 Select the Position
 Monitor the position

The first step is to identify the competition, identification of completion is not an easy task
because brand faces competition not only from the products in the same product class but others
also for example Times of India may compete with other news shows and channels than with the
Hindu(another newspaper)Next thing is to determine how competitor products re perceived , it is
necessary to choose an appropriate set of product attributes for comparison. Attributes may not
only include product characteristics and customer benefits but also product associations such as
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product uses or product users. Another useful exercise is to determine how competitors are
positioned, the primary focus of interest is how they are positioned with respect to relevant
attributes. Next identify the segments or cluster of customers, determining which attributes or
customer benefits are most important and then identify groups of customers who value similar
attributes or benefits. These steps should be analyzed prior to making actual positioning decision.
Once the positioning statement selected and applied, it should be monitored for any changes
which may be required because of some emerging opportunities or change in the product features
or line extensions etc

Repositioning ……………….. Comment [01]: More

No matter how well the product appears to be positioned, the marketer may be forced to decide
on its repositioning in response to new opportunities or threats. A brand’s repositioning is
usually considered when there are attractive opportunities or the brand’s sales stagnate or
decline. The product may be provided with some new features or it may be associated with some
new uses and offered to the existing or new markets.

For example: Nestle’s milkmaid was Milkmaid Condensed Milk a convenient form of milk for
use as tea or coffee creamer, the sales of milkmaid in 80’s reached plateau and the company
repositioned the product as ideal for preparing sweets and desserts. The packaging was also
changed to suit the repositioning, which lead to substantial gain in sales volume.

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 LESSON 7
ADVERTISING BUDGET
After determining the advertising objectives a company has to estimate how much it is willing to
spend on promotional programme. Although in an ideal situation budget should be determined
by the objectives laid out for the communication function , in constraining situations often it is
the budget which leads to revision of company’s objectives .

According to Cohen, “Translation of advertising plan into currency unit is advertising budget”

Advertising budget is a financial document that shows the total amount to be spent on
advertising and list the way this amount is to be allocated. It is prepared for a specific future
period of time. It is limiting factor which determine the size of advertising campaign. It shows
the allocation of available funds to various advertising activities.

One of the most critical decision facing marketing managers is to determine how much to spend
on promotional effort. Many consider the amount of money spend to advertising as current
business expenditure cutting into the profits rather than an investment , For this reason when a
firm faces turbulent times the axe falls at first on the advertising expenditure, even though there
is a strong evidence that exactly the opposite should occur (refer Sales Response Models). Thus
maximizing the effectiveness of promotional spending of company is hence the prime
importance especially in times of spiralling media cost , increasing completion, consumer apathy
towards promotion and increased pressure on communication productivity.

As an element of the marketing communication mix advertisement should be viewed as an

investment in future sales. Marketers often use advertising to generate immediate sales; however
its greatest power is in the cumulative long term reinforcement effect, it builds consumer
preference and goodwill which helps enhance the reputation and value of the company and the
brand name. Thus considering advertising as expenditure is short sighted view and may affect
the brand’s image.

Setting advertising budget is not an easy task, there is no way to be absolutely certain that the
company is spending the right amount Some critics say that large FMCG companies spend too
much on image advertising without really knowing its effects , they “overspend” as an
insurance against not spending enough . Industrial companies on the other hand spend less on
advertising, underestimating the power of company and product image and rely too heavily on
their sales force to bring in sales. Overspending leads to waste of resources and under spending
can lead to opportunity loss , while there is no single best way to determine the budget
theoretical approaches to budgeting, situational factors as well as methods to determine budget
serve as useful guide.

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Sales response Models

Most marketing managers believe that sales and promotions are related in one of the following
two manners:

 The Concave Downward Function- As shown in fig a) as the promotional expenditure

increases, sales increases at decreasing rate up to certain point in other words additional
promotional rupee bring in lesser and lesser sales. The reason that sales follow concave
downward curve pattern is that when the initial communication expense is made the most
lucrative prospects (innovators) or heavy users buy the product. The task of bringing
laggards and light users with communication is more difficult and has little impact on the
total sales. According to the model the highest response rate occur after the first exposure
and it diminishes there after. This model is based on the Law of Diminishing Returns .
Thus budgeting under this model suggest that lesser advertising money may be needed to
produce optimal sales effect.
 S- Shaped Response function- As shown in figure a, The S- shaped curve is
characterized by slow start , followed by steep growth and then a plateau. Initial
advertising and promotion expenditure has little impact on the on sales in the range A. In
range B additional promotion expenditure bring in increased sales, up to a point . In
range C, the benefits of additional promotion expenditure taper off. The model suggests
that until a company has minimum share of voice its advertising brings in no benefit.
Share of Voice is the advertising weight of the brand/company as a percentage of the
advertising weight of a given market or market segment. Expenditure in range B brings in
returns first at an increasing rate and then at diminishing rate. The optimal level of
expenditure is at a point in range B where marginal revenue and marginal cost are equal .
Money spend in range C does not have much noticeable impact on sales as the product
already reached its market potential.

Fig a) Concave Downward Function Fig b) S-Shaped Response Function

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 Marginal Analysis- The logical process of arriving at advertising budget is inspired by
the marginal analysis , which is widely used in business decision making to allocate
scarce resources such as advertising spending in order to maximize output such as sales.
Marginal analysis focuses on studying whether the promotion budget be increased by one
more unit or not so as to maximize profit. As illustrated in fig.c) as promotion
expenditure increases , sales and gross margin also increases up to a point after which
they start to levelling off . Profit which is the difference between gross margin and
advertising or promotion expense, is maximum when marginal revenue is equal to
marginal cost (point A)
Marginal revenue is the increase in the gross revenue by the addition of one more unit of
promotional expenditure. Whereas Marginal cost is the increase in total cost with the
addition of one more unit of promotional expenditure. When marginal revenue is greater
than the marginal cost there is scope for increasing promotional expenditure as it would
add to the profit. On the other hand when marginal cost is greater than marginal revenue,
the promotional expenditure should be reduced.

Fig. C) Marginal Analysis

While the analysis is logical, it suffers from the following limitations:

Considering Sales as a direct result of Promotion- Advertising has delayed or carry
over effect(discussed in Advertising objectives) Also measurement of impact of
communication on sales is nearly an impossible task because promotion is one of the
factor that influence sales there are other factors also (refer section on advertising
objective) . In the words of David Aaker and James Carman, “Looking at the relationship
between advertising and sales is somewhat worse than looking for a needle in haystack”
Thus to try to show the size of the budget will directly affect sales of the product is
misleading . A more logical approach would be to examine the impact of promotional
budget on attainment of communication objectives. Sales is not the only goal of
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promotional effort awareness, interest, attitude change and other communication
objectives are often sought and while the bottom line is may be to sell the product, these
objectives may serve as basis on which the promotional effort is directed.
Difficulty in predicting the marginal sales function: Estimating the exact rate at which
sales will change as response to advertising and promotion is a difficult task.

Because of these limitations the use of marginal analysis is not popular in budget
determination, however a conceptual understanding of the model helps in comprehending
how promotional expenditure and its results are related and in determining how
budgeting can be planned.

Budgeting Approaches
The theoretical approaches to budgeting are rarely used. Instead a number of methods
developed though practice and experience are implemented. Some companies use more
than one method and approaches to budgeting vary among the companies depending on
size and sophistication of the company.
In practice companies use two totally different approaches to budget setting Top Down
Approach and Build Up Approach

In case of Top- Down Approach the budgetary amount is established by the higher
management and passed down to various departments. Top down methods of budgeting
include affordable method, arbitrary allocation, percentage of sales, competitive parity
and return on investment. These top-down methods are judgemental in approach and the
budget is apparently not linked to the objectives and the strategies decided to attain them.

The Build- Up Approach takes into account the company’s advertising objective and
budget is allocated on the basis of what is considered essential to accomplish the goals
ascertained. Build- Up methods of budgeting includes object and task method, payout
planning method and quantitative models.

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The Affordable Method (All you can afford Method)

After all allocations have been made to cover other relevant company expenditures whatever is
left is allocated to advertising ,that this is what the firm can afford to spend on advertising after
making allocations for various other investment and expenditure decisions .

No consideration is given to what is expected of advertising. This approach is fairly common

amongst the small firms particularly highly technologically oriented firms focus on new product
development and engineering and believe that if the product is good it would sell on its own.
Surprisingly this method often produce good results as if the company is doing proper allocation
to other elements of business then probably the amount lest out for advertising is adequate to
meet firm’s advertising objectives. The basis premise behind this method is “ we can’t be hurt
with this method as we are allocating what we can afford and not get into any financial
problems” However the chances of overspending and under spending are high with this method

Competitive Parity Method

Many advertisers base their advertising budget allocation on competitor’s expenditure . Such
information is available in trade journals and business magazines. According to this approach
manager decides budget amount by matching competitor’s advertising spending (generally
percentage of sales allocation). The logic behind this approach is that the collective wisdom of
firms probably generates advertising budgets that are quite close to optimal . Not everyone
would be too far from what is adequate in a given industry. This method also takes into
consideration the competition leading to stability in the market place and minimizing the
chances of promotional wars.

There are disadvantages of using this method First it ignores the fact that each firm allocates
budget to accomplish specific objectives to solve certain problems or to take advantage of the
present or emerging opportunity. The inherent assumption is that all firms have similar
advertising objectives ad their allocations are correct, which may not to reality. Second, the
method assumes that all firms have equally effective advertising programmes because the
expenditures are similar and therefore it ignores the contribution of media and creative
executions.
Third there information on completive spending is available only after the money has been spent
and there is no reason to believe that competitor will not increase or decrease its own expenditure
regardless of what other firms do.
Fourth there is simply no guarantee that what firms in the industry spend on advertising is the
optimal level and they will continue to pursue their existing strategies. The situations of
individual firms are quite likely to be sufficiently unique and therefore the practices of
competitor should not be followed.

This method is typically employed in conjunction with other methods like percentage of sales
method. It is never wise to ignore competition ; manager must always be aware of what
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competitors are doing but they should not just emulate them in setting goals and developing
strategies

Arbitrary Allocation Method

The management determines the budget on the basis of what is felt to be necessary however
there is no criteria for defining what is defined as “necessary” in the context of advertising
budget allocation. This method lacks the systematic thinking that may reflect some relationship
with advertising objectives. Probably the manager believe that some amount should be spend on
advertising and picks up a figure as advertising budget. This method of budget allocation has no
theoretical basis and its applicability is not recommended

Percentage of Sales Method

This is the most commonly used method especially by the medium and large sized firms. The
basis for budget allocation is the total sale of the brand or product.

In its simplest application affixed percentage of last year’s sales figure is allocated as budget. A
variation of this method is to use a percentage of the projected sales figure of following year as
base. Yet another variation is to calculate average sales of last several years to decide budget
allocation.
In another different approach affixed amount of the unit product cost is taken as advertising
expense and multiplied by the number of projected unit of sales.

For example: If the total sales in 2005-2006 were Rs 10 lac(10,00,000), the advertising budget
may be decided as 10% of this figure for 2006-2007 which would be Rs 1 Lac(1,00,000)
For instance the projected sales for 2006-2007 is Rs 12 lac(12,00,000) the budget allocated
would be Rs 1.2 Lac(1,20,000)[Assuming the basis of allocation i.e percentage of sales remain
same at 10%]
Assuming the total manufacturing cost of an article is Rs 20 per unit and advertising money
allocated per unit is Rs 2 and the projected sales figure for the year is fifty thousand
units(50,000) for the coming year then the total advertising budget would be Rs.1 Lac
(1,00,000)[50,000*2=1,00,000]

The percentage figure selected is industry standard , and it varies from industry to industry and
also among different firms in the same industry. Some companies allocate a small percentage of
sales as advertising budget while others decide a higher percentage.
Actual rupee spend vary considerably depending on individual company’s total sales figure.

Advantages of this method are: it is simple, straightforward, and easy to implement method and
expenditure is directly related to the fund available. If the company’s sale were more in the
previous year that means it has more funds available to be spent on advertising this year.
Regardless whether last year sales figure or projected sales figure is is taken as base it is easy to

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 arrive at budget figure. Unless unprecedented changes in sales managers will have a fair idea of
the budget parameters

Disadvantages of this method are

The basic premise of this method that sales is cause of advertising or it is advertising that helps
generate sales. Letting the level of sales determine the amount of advertising to be spent reverses
the cause and effect relationship between advertising and sales. It treats advertising as expense
associated with making a sale rather than an investment

Another problem associated with this method is stability , proponents say that if all firms use a
similar percentage, it will bring stability to the marketplace. The problem is this method does not
allow for changes in strategy either internally or from the competitors . An aggressive firm may
wish to allocate larger sum for advertising budget , a strategy that is not possible with percentage
of sales method unless manger is willing to deviate from the industry standard.

In the event of introduction of new innovative product , no sales histories are available and
projecting of future sales may be difficult employing this method is not only difficult but risky as
well.

Since the advertising budget is dependent on sales only, decrease in sales decreases the budget at
a time when increase in budget is probably more required. Reduced advertising spending may
further push the sales trend downwards.

Problem with forecasting, cyclical growth and uncontrollable factors limit the effectiveness of
this method.

Objective and Task Method

Setting objectives and budget decision are linked together and should be considered
simultaneously.
The objective and task method is based on build-up approach .Steps involved in objective and
task method are:
 Establish Advertising Objectives
 Determine specific strategies and tasks necessary to achieve them
 Estimate cost associated in putting these strategies and tasks in operation

Implementation of this method requires higher degree of managerial involvement . The whole
process must be monitored throughout keeping in view how well the objectives are attained and
suitable changes in strategies made, if deemed necessary.

Major difficulty associated with this method is to determine which are those specific tasks
required and the costs associated with each. For instance if the objective is to accomplish
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awareness level of 50% among target audience , what specifically are those tasks that are
required to achieve this level if awareness? How much will it cost to perform these tasks?
Though, Past experience serves as good guide in case of existing product .

The most fundamental advantage of this method is that it develops the budget from the ground
up which is the proper managerial approach. It does not rely on past sales figure, forecasted
sales, competitor’s spending and considers only the factors which are under the advertiser’s
control.

Payout Planning

Payout planning is a useful technique to develop budget when a new product is introduced . It is
used in conjunction with other budgeting methods to estimate the investment value of
advertising.

Mangers have keen interest in knowing how much money is to be invested in advertising and for
how long before the brand gets established and generate profit flow. Projection of revenue
stream that the product will generate and the cost it will incur over the projected period are
ascertained.

Preparing payout depends on the accuracy of sales forecast over time, factors that affect market,
estimated costs. Advertising expenditure during the introductory stage of the product will be high
to move the target audience through various stages leading to purchase, growth in sales will is
expected to be low and company would lose money(incur loss)

Assuming everything goes according to the plan the advertising expenditure will gradually
decline and sales will increase.

It is useful and logical planning tool when used in conjunction with objective and task method
for setting advertising budget, but it has certain limitations it cannot account for all
uncontrollable factors such as competition, changes in government policies and other factors that
may influence the plan.

Quantitative Models

Mathematical models and statistical techniques such as multiple regression analysis ,

econometrics are used to determine the relative contribution of advertising expenditure to sales.
Some models reflect about how advertising might interact in different ways with other marketing
variables and consumers.

Mathematical models have not been able to get wide acceptance in the industry using these
models require experimentation and formal analysis. Many firms lack such capabilities and also
the process is expensive and time consuming.

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Factors influencing advertising budget

1. Product Life cycle stage: New products typically require large advertising budget to
create awareness, develop preference and induce product trial and purchase. Mature
brands usually require lower budget as ratio to sales

2. Market size : the size of the market influences the budget allocation decision
comparatively it is easier and less expensive to reach target audience in smaller markets.
Too much of advertising expenditure in such markets may be unnecessary and wasteful.
Target audience may be dispersed in larger market areas and it would be more expensive
to reach them

3. Advertising Tasks to be accomplished: larger amount of advertising spending will be

required if the task is to create brand awareness and brand persuasion to generate
trial/purchase in case of new brand. However in case of established brands where
consumers have already tried and tested the brand and are satisfied only reminder
advertising will suffice.

4. Intensity of Competition : In a market with many competitors a brand needs to advertise

more heavily to be mark its recognition amongst the competing brands

5. Financial resources: Budget is a limiting factor which determines the size of advertising
campaign. The availability of financial resources with the advertiser is the constraining
factor influencing the amount to be spent on advertising

6. Unexploited Sales Potential: Higher the available sales potential higher is the need for
advertising to tap it.

7. Advertising Frequency: When many advertising repetitions are required to

communicate the brand’s message to the to the target consumers, the advertising budget
must be large.

8. Product differentiation: when a brand cannot be differentiated significantly and

resembles other brands in the product category, it requires heavy advertising to set it
apart from the competitors.

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 UNIT-II
LESSON 1
MEDIA DECISIONS

1. STRUCTURE

1.0 Objective
1.1 What is Advertising
1.2 Various Medias of Advertising
1.2.1 Print Media
1.2.2 Electronic Media
1.2.3 Direct Mail
1.2.4 Outdoor Media
1.2.5 Miscellaneous Media
1.3 Advantages and Disadvantages of different types of Advertising Media
1.4 Factors Influencing the choice of our appropriate Medium Advertisement
1.5 Summary
1.6 Self Assessment Question

1.0 OBJECTIVE

After reading this lesson, you should be able to:

a) Learn about advertising
b) Learn about different medias of advertising
c) Learn the advantages and disadvantages of different media of advertisement
d) Factors influencing the choice of an appropriate media of advertisement

1.1 WHAT IS ADVERTISING

Advertisement is ineffective in the absence of an audience i.e. each and every advertisement in
order to be effective needs an audience. The message does not get communicated unless
someone gets a chance to read it, hear it or view it. In order to let people, know about an
advertisement, a media is necessary.

One can define media as a vehicle through which messages are transmitted from the marketers
to their target audience.

Advertising media is a means of delivering the definite message i.e. it is a means of through
which a message or information is passed on to prospective customers, readers, viewers etc.

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 MESSAGE MESSAGE TARGET
ADVERTISER MEDIA
RECEIVED AUDIENCE

Advertising communication

1.2 VARIOUS MEDIAS OF ADVERTISING

Various medias of advertising are –

1.2.1 Print media

i. Newspapers
ii. Magazines and journals
iii. Trade directories

1.2.2 Electronic media

i. Radio
ii. Television
iii. Cinema
1.2.3 Direct mail
i. Catalogues
ii. Circulars
iii. Brochures
iv. Leaflets and Pamphlets
1.2.4 Outdoor media
i. Posters
ii. Billboards
iii. Wall writings
iv. Hand bills
v. Skywritings
vi. Vehiculars
1.2.5 Miscellaneous media
i. Telemarketing
ii. Email marketing
iii. Online marketing
iv. Window display
v. Point of purchase

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1.3 ADVANTAGES AND DISADVANTAGES OF DIFFERENT TYPES OF
ADVERTISING MEDIA

NEWSPAPERS
Since, printed words and messages commands attention and respect, newspaper is a very
popular medium of advertising. Nothing can match a well-drafted press copy and such a media
enables the advertiser to communicate with a larger number of people.
All educated and civilized people read newspaper all over the world. Since, newspapers reach
all places and are read by all types of people, it has a general and wide appeal.

Newspapers can be categorized on the basis of

• frequency of publication (daily, weekly, quarterly, monthly, yearly),
• language (Hindi, English, Tamil, etc.)
• region
• time (morning, afternoon, evening, day editions)
The two popular national dailies are the Times of India and the Hindustan times. The most
popular financial dailies in India are The Financial Express, The Economic Times etc.

The following are the advantages of the newspaper advertising –

1. Wide reach since a national daily newspaper has a wide circulation and universal
appeal, the message can reach millions of people all over the country. Newspaper is
being read by all kinds of people and all categories of income groups thereby offering
mass coverage.
2. Economical due to the wide circulation, the cost of advertising per reader is low. And
it is only because of advertisements that gets published in newspapers that the
newspaper reaches us at a very nominal and economical price.
3. Continuity with the help of newspaper one advertisement can be repeated daily to
remind the customers and to create a long-lasting impression. Newspaper advertising
has been very useful in the introduction of new products in the market. For instance-
head & shoulder when introduced its new range of shampoo with a content of lemon
into it, it kept on advertising the same advertisement in newspaper for over four weeks
at a go.
4. Quick response – Newspapers are the carriers of current news. People read them to
find out the various developments that take place daily. Newspaper advertisements have
a sense of urgency. The public response to the advertisements is immediate as it reaches
them while they are fresh and are in a receptive mood.

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 5. Regular and frequent for those manufacturers who are more particular about the
frequency and regularity of their message, there is nothing like newspaper advertising.
Newspaper advertising keeps the product or the service constantly before the readers. It
reminds them of the product or the service.
6. Flexibility for those manufacturers who are more particular about the frequency and
regularity of their message, there is nothing like newspaper advertising. Newspaper
advertising keeps the product or the service constantly before the readers. It reminds
them of the product or the service.
The following are the disadvantages of newspaper advertising:
1. Short life span - Newspapers have the shortest life. It has been estimated that the
effective life of newspaper for an individual is about 15 to 20 minutes. None bothers to
refer back the newspaper which becomes stale. Hence, to make the impression of
advertisement lasting, the advertiser has to repeat his advertisements, involving
additional costs.
2. Lacks quality reproduction - The paper in which newspapers are printed are of low
quality, compared to magazines. Hence, the advertisements may not be very appealing,
which is an essential factor for any advertisement.
3. Limited readership - As illiterate people cannot read the newspapers, the reach of the
advertisement is confined only to the educated persons. Hence, this factor could pose a
problem in rural India.
4. Uncertainty - As many readers ‘rush’ through their newspapers hurriedly, they may
fail to see the advertisements totally. So, the number of people who may miss out the
advertisement is more in newspapers.
5. Cluttering - since large number of advertisements are placed in the daily newspaper, a
particular advertisement is likely to escape the readers’ attention.

MAGAZINES AND JOURNALS

Magazines can be grouped as weekly, monthly, bi-monthly, etc. they include general interest
magazines, trade publications & special interest magazines. Business India, India Today, sports
star, Femina, star dust etc. are some popular magazines.
Magazines such as Femina can be used for advertising household goods, cosmetics etc.
Specialised magazines such as sports weekly can be used for sports goods and other products
of special interest.
Advantages of magazine and journal are –
1. Better attention - Magazines and journals are read more carefully and at leisure.
Therefore, there are little chances of advertisement being escaped from reader’s
attention. Receptivity and involvement of readers are high.

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 2. Long life - Advertisements placed in the magazines have a long life & is often passed
along to several readers. Moreover, they are preserved for a week, month or year and is
read time and again.
3. More attractive and better positioning - In case of magazine, high quality paper,
printing and colors are used thereby having greater appeal to the eyes of readers and
more stable impact on the minds of the readers.
4. Prestigious media - A magazine with high creditability and visibility lends prestige to
the advertised product. There are various products that can be advertised better in
magazines than in newspapers for instance-lifestyle products.
5. Selectivity- Magazine advertising permits high degree of selectivity. The advertisement
can be placed in the magazine on the basis of the target audience, for instance-
magazines such as Eve’s weekly can be used to reach young and fashion-conscious
ladies.
Disadvantages of magazines and journals are as follows:
1. Less flexible or rigid – Most of the magazines have long advertising deadlines
thereby reducing the flexibility and the ability of advertisers to adapt to the fast-
changing market conditions.
2. Small coverage - Magazines have a limited circulation thereby cannot provide wide
coverage as in case of newspaper and moreover cannot provide daily repetition of
the message. Reach and frequency is also limited in case of magazines. Therefore,
for effective exposure either several magazines should be used or some alternative
media must supplement the magazine schedule.
3. Less repetition- Daily repetition of the advertisement is not possible in case of
magazines thereby reducing the effectiveness of the advertisement.
4. Expensive - Magazine advertisement is comparatively expensive in comparison to
that of the newspaper. Moreover, the preparation cost of magazine is also high.
5. Lack of timeliness - In case of magazines, it takes time to print, bind and distribute
the magazines thereby reducing or completely eliminating the benefit of timeliness.
This disadvantage of magazine makes it not suitable for local advertisements as lead
time tends to be long.

TELEVISION ADVERTISING
It is one of the fastest growing media due to rapid expansion of cable network. Both sponsored
programmes and short commercial are shown on the television. As compared to print media
which delivers one thought at one time, electronic media delivers a great deal of information
rapidly.

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Advantages of television advertising are as follows:
1. Greater impact - Television advertising has greater impact due to the combination
of sight and sound. It makes appeal to both eyes and ears. Both the product and its
uses can be demonstrated to convince the buyers. It gives the opportunity for
personalised selling and there is persuasiveness of human voice.
2. Mass coverage - Majority of the population have access to televisions, thereby
making the message being delivered be accessible to wider audience. It reaches all
classes of people including illiterates. It is most popular media among the companies
selling mass consumption products.
3. Cost effective- As discussed in previous point, television advertisements have mass
reach. This mass reach makes television advertisements cost effective.
4. Repetition - The same advertisement can be shown in different programmes and at
different times.
5. Reputation or prestige or goodwill- Television advertisement lends prestige to
both the advertiser and his product. Advertisements on television command high
attention and have lasting impression.
6. Effective timing - As it reaches the viewers when they are most attentive.

Disadvantages of television advertising are as follows:

1. Costly – It is an expensive medium of advertisement as compared to other mediums.

2. Short duration – Sometimes television advertisements are too short, to create an
impact or express much about the product, due to high cost of airing commercials,
creation and distribution of ads etc.
3. Lack of targeting – Though television advertisement reaches a large and varied
audience, it does not effectively target the specific segments of the audience that the
businesses serves as compared to newspapers, magazines, or direct mail for reaching
precise segments of the audience.
4. Finite viewer attention – Many viewers do not enjoy watching commercials and
tend to change the channels to avoid commercials (known as zapping). Others might
grab a snack or use the washroom during the break. Moreover, these days, many
people do not like watch the television at all, and instead watch their shows online
or on commercial free media providers such as amazon prime, Netflix etc.
5. Strict codes of conduct – Television advertisements have to strictly abide by
the Commercial Television Industry Code of Practice.

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 6. Difficult to make modifications – It is very difficult to make changes in an
advertisement as any change would require a re-shoot of the ad and incurs additional
costs.

RADIO ADVERTISING

With the passage of time, radio advertising had become popular media as more and more people
own radio sets. Radio commercials are a new technique of advertising as message gets delivered
in between music, songs etc. due to its FM (Frequency Modulation) and AM (Amplitude
Modulation) its operations have been extended to a larger section of the population. Such kind
of media is apt for countries like India as majority of people are poor and radio is the main
source of entertainment for them.

Advantages of radio advertising are as follows:

1. Inexpensive media - Radio as a means of entertainment for general public is

comparatively inexpensive. Moreover, for advertisers too, it turns out to be inexpensive
as advertising cost per thousand persons is quite low. And cost of the air time too is low.
2. Mass reach- Every other household in countries like India owns a radio, thereby
making the advertisements communicated on the radio having wider reach. Moreover,
advertisements on the radio can be understood by illiterate class making it have a wider
access.
3. Repetition and frequency - Advertisement on radio can be repeated daily and that took
several times in a day. Advertisements on the radio can be heard by people while
travelling or working thereby, making it convenient for the people.
4. Better impact - Radio advertisements have a better impact as compared to newspaper
as spoken words always have more impact than the written words. This media is also
called “theatre of the mind”, as it allows the listeners to create their own image.

Disadvantages of radio advertising are as follows:

1. Shorter life - While listening to the radio programme one may at times skip the
advertisement as it is usually for a smaller duration and at times listener are in attentive.

2. Crispness - Since the radio advertisement most of the time short and crisp, the listener
may not remember the message unless it is repeated again and again.
3. Cluttering - Various advertisements appear before, during and after the various
programmes that appear on radio making the listeners at time frustrated as a result of
which the listener may switch on to other radio channel.

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 4. Lack of visuals - One can hear the radio advertisement but cannot see any picture of
the product.
5. Fragmentation - The percentage of the market tuned to any particular radio station is
very small due to large number of radio stations.
OUTDOOR ADVERTISING

Any advertising done outdoors that publicizes your business's products and services is called
outdoor advertising. It helps in promoting products and services in specific geographical areas.
Advertisements on interiors and exteriors of buses, billboards, bus benches etc. are some types
of outdoor advertising.

Advantages of outdoor advertising are as follows:

1. Extensive local market coverage-A leading benefit of outdoor advertisements is that
there is no barrier between the consumers and the advertisements. Unlike in-store
promotions, it does not require the customer to enter a specific area and can be found
anywhere in the local markets with both day and night presence.
2. Offers Instant Impact -To ensure an instant impact on drivers and passengers within
vehicles, many brands are now harnessing creative roadside posters and placing them at
a place so that the best impact can be created.
3. Cost effective – it is less expensive as compared to other mediums of advertisements.
4. Efficient – it leads to an increase in sales, particularly when an outdoor ad is combines
with a promotional scheme/offer and helps to generate a high return on investment.
5. Creates awareness-it is the best medium to inform the moving population and create
awareness about a product or service being offered.

Disadvantages of outdoor advertising are as follows:

1. Lacks a long-term impact – Outdoor advertising is intended to make an immediate

impact and thus it doesn’t have a long-term impact on the public.
2. Easily overlooked – Outdoor advertising is easily overlooked by many people passing
by such advertisements. Sometimes the external conditions like fog, smog etc. may
affect visibility.

3. No guarantee of success - One can undertake outdoor advertising in a high traffic area
and end up getting zero new customers from that effort.
4. Not always cost effective- Outdoor advertisement is not always an affordable option.
Outdoor advertising in high traffic area always costs more.

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 5. Issues in measurement – In case of outdoor advertising, the advertiser receives no
feedback of the public directly. It is difficult to measure the reach, frequency and other
effects of outdoor advertising.
6. Limited information – Due to lack of space and short exposure time, outdoor
advertising displays messages limited to a few words or an illustration. Lengthy ads are
often overlooked by the public.

TRANSIT ADVERTISING
Transit advertising is another form of out of home advertising. It is also known as advertising
on transport. Transit Advertising is advertisement placed on or in any mode of public transport
like buses, taxis, trains, or in public transportation areas like bus stops, petrol pumps, etc.

Advantages of transit advertising are as follows:

1. High frequency – The more an advertisement is seen, the more consumers tend to
remember the message. Daily commuters on the same route get to see the advertisement
repeatedly. The locations of metro stations, petrol pumps etc. offer a high frequency of
exposure to the advertisement.
2. Long exposure – An average public transport ride lasts for about 30 minutes. The ad
gets enough exposure to get registered in the minds of the consumers. The customers
are bound to notice the ad placed inside a bus/train multiples times during the journey.
It cannot be ignored.
3. Cost effective – Transit advertising is a very cost-effective method of reaching
consumers for long period of time. The cost of advertising per consumer is very low
since the number of potential consumers the transit advertisement reaches is huge.
4. Geographic reach –When it comes to targeting the local consumer, transit advertising
is one of the best mediums of advertising. When a business places a transit
advertisement in a select location, it actively reaches out to people of a
select characteristics and background. For example, Big Bazar advertises its special
offers on a bus that transports consumers to the Big Bazar complex. Their consumers
will certainly remember the special offers running in their stores having got exposed to
the ad while travelling on the bus.
5. Timeliness - Many shoppers like to travel in public transports to get to shopping areas.
Having an advertisement promoting a product or service at a particular shopping area is
a very timely communication of information.

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Disadvantages of transit advertising are as follows:

1. Limited impact – Transit advertising is not interactive like television advertising. Thus,
illiterate people or people from different states may face difficulty in comprehending
advertisements in regional languages.
2. Reach – Only those customers that are travelling by any mode of public transport can
view this kind of advertisement. Places where use of public transport is limited or non-
existent, this medium of advertising is not effective.
3. Vandalism – A deliberate destruction of the advertisement by people of certain
character may take place.
4. Waste coverage – Though television advertisement reaches a large and varied
audience, it does not effectively target the specific segments of the audience that the
businesses serves as compared to newspapers, magazines, or direct mail for reaching
precise segments of the audience.

PROMOTIONAL PRODUCT MARKETING or SPECIALITY ADVERTISING

Specialty advertising involves giving away free items (gifts), in the form of small handy items
(like calendars cups, diaries, key rings etc.) with permanent promotional message printed on
them, to customers to increase brand awareness. Specialty products are usually not personalized
for any consumer. It is different from product samples, where a company sells free products.
For example, customized football t-shirts given away by a manufacturer, at a promotional event,
who makes sport supplies such as t-shirts, lowers, tracksuits etc. make sense as a specialty
advertising item.

Advantages of speciality advertising are as follows:

1. High selectivity – There is a high degree of selectivity as speciality advertising items

are distributed directly into the hands of the target consumers.
2. Generates Goodwill – Promotional products marketing raises brand awareness among
consumers and helps to improve the image of the company in the mind of the customers
because people like to receive gifts.
3. Generates Referrals – Sometimes one’s own customers can prove to be a great source
of new leads. Promotional product marketing is a great means of lead generation.

4. Cost – Promotional product marketing has a low production cost and high brand
exposure as compared to other forms of media like radio advertising, television
advertising, etc.

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 5. Supplements other media – Its low cost and repeat exposure helps in reinforcing the
simplest of the messages provided through other mediums.

Disadvantages of speciality advertising are as follows:

1. Image – It is really difficult to find the appropriate product. A poorly designed or a bad
quality product has a negative impact on the goodwill of the company.
2. Longer lead time – The lead time required in developing the message and the product
is significantly higher than that for most of the other media.
3. Saturation – The marketplace may become saturated since many companies are now
using this medium of advertisement. Thus, in order to be successful, the company has
to come up with some uniqueness in the product so selected.

ADVERTISING IN MOVIE THEATRES

Another effective method of advertising is in the form of videos or short-films that may be
screened before a movie in the theatres. In addition to these videos, advertisements in theatre
lobbies and on popcorn tubs are used. Viewers have a mixed reaction, some find it informative,
some find it annoying.

Advantages of advertising in movie theatres are as follows:

1. Mass publicity – Cinema advertising delivers the message to a captive audience. A

substantial no. of people watches movies. Unlike television advertisements these ads
cannot be missed.
2. Wider impact – Movie theatres provide a big screen and superior sound quality.
3. Less Clutter – The number of ads in the movie theatres are limited.
4. Proximity – Many potential customers are right next door since most movie theatres
are located adjacent to shopping malls.
5. Ability to remember – People are able to recall the advertisements that they watch on
movie theatres much better than the advertisements they hear on the radio or watch on
television.

Disadvantages of advertising in movie theatres are as follows:

1. Costly - Screen advertising is a costly affair, especially for a small business.

2. Late arriving audience – Before a film begins, theatre ads roll for approximately 15-
20 minutes. Many people tend to arrive late as they are primarily interested in the movie
and thus skip the ads.

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 3. Annoyance – Studies suggest that advertising in movie theatres is a great source of
annoyance and irritation to many people. This irritation may be carry forward to the
movie itself hamper the viewers overall experience

PRODUCT PLACEMENT IN MOVIES AND IN TELEVISION SHOWS

An increasingly common method of advertising a product or a service by showcasing the actual
product itself or an ad for it as a part of the movie is called in-film advertising or television
show. Companies have to pay to get their products used in music videos and movies.

Advantages of product placement in movies and television shows are as follows:

1. Ability to remember – People can recall the advertisements that they catch a glimpse
of in movies and music videos much better than the advertisements they hear on the
radio or watch on television
2. Supplements other media – Its low cost and repeat exposure helps in reinforcing the
simplest of the messages provided through other mediums.
3. Advanced Targeting—Product placement gives advertisers a great opportunity to grab
the attention of people which may be difficult to grab with conventional advertising
methods.
4. Minimized Risk of Ad Avoidance - Unlike traditional advertisements, product
placement advertisements cannot be skipped.
5. Frequency – There may be abundant opportunities for repeated exposure depending on
how the product is used in a movie.
6. Bypassing regulations- In our country, some products are not allowed to be advertised
on television. Product placement in movies and in television shows have allowed the
liquor and cigarette industries to have their products exposed, evading these regulations.
7. Additional source of revenue for film companies – Product placement in movies and
television shows acts as an additional source of revenue for film companies as producers
of such films charge a hefty amount of money for such kind of promotion of products
in the movies.

Disadvantages of product placement in movies and television shows are as follows:

1. Expensive - It is an expensive medium of advertisement as compared to other mediums

like online advertisements, newspaper advertising etc.
2. Competition – Some movies contain so many different product placements from within
the similar industry that the effect of advertisement gets cancelled out. Competitive

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 brands can cancel out each other. If too many brands from the similar industry are seen
by viewers, then no brand loyalty created.
3. Limited control - In many movies and music videos, the advertiser has no say over
how often and when the product will be shown.
4. Negative placements – In product placement, a product might be shown in a way that
is not good for the goodwill of the product and the brand. Some products that are
disliked by the audience that appear in movie scenes, tend to spoil the mood of the
audience.
5. Exposure – In product placement method of advertisement, there is no guarantee that
the viewers will notice the product shown to them in the video.
6. Limited appeal – There is indirect endorsement of the product. The appeal made in this
form of media is limited. There is no scope for discussing the benefits of the products
or providing detailed information.

INTERNET AND INTERACTIVE MEDIA ADVERTISING

Internet is a system of globally interconnected computer networks that serves billions of users
worldwide by exchanging and communicating information. It is a network of networks. The
terms internet and World Wide Web (WWW) often used interchangeably, are not exactly the
same thing; the internet refers to a global communication system, including infrastructure and
hardware, while the world wide web is one of the many services communicated over the
internet.

Advantages of internet advertising are as follows:

1. Wider Coverage – Nowadays, nearly everyone uses the internet. Internet marketing
helps companies gain exposure to potential customers that would otherwise had been
impossible without it. With time, companies gain national and international exposure.
Even a small company can become an international company overnight with the help of
internet.
2. Target marketing – Internet targets specific groups of consumers with a minimum of
waste coverage. In the consumer market websites are becoming more tailored to meet
the demands of the consumers through personalization and other targeting strategies.
3. Interactive capabilities - The interactive capabilities of the internet help companies to
carry on one to one marketing with increased success. This provides increased customer
satisfaction and involvement and almost immediate feedback for both buyers and
sellers.

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 4. Cost effective – One can spend lakh of rupees on television advertising and yet your ad
may or may not reach the target audience, while in internet marketing, you pay only
when people who are interested in your advertisement click on it.
5. Creativity – Creatively designed websites enhance the company’s goodwill. Well-
developed websites are visited repeated by the consumers.
6. Sales potential – Over the years, internet advertising has increased the potential sales
of the companies.
7. Speed – Internet is the quickest means of getting information on any company, its
products and services, reviews of its products etc. this information is available 24x7
throughout.
8. Supplements other media – Its low cost and repeat exposure helps in reinforcing the
simplest of the messages provided through other mediums. The internet both,
complements and is complimented by other media. The internet serves as an essential
link in the integrative process.

Disadvantages of internet advertising are as follows:

1. Measurement problems – One of the greatest disadvantages of internet advertising is

the lack of reliability of the research numbers generated. Measuring the reach and
effectiveness of internet advertising is very difficult.
2. Increased Clutter – As the number of advertisements increase, the probability of one’s
advertisement being noticed, drops rapidly.
3. Privacy – internet marketers must be careful in not intruding upon the privacy of the
customers.
4. Potential for deception –there is a possibility of collection of consumers personal
information like mobile number, credit card number, etc. without the knowledge and
permission of the consumer.

5. Poor reach – while the number of internet users is increasing day by day, its reach is
still far behind that of television.
6. Web snarl – At times downloading information from the internet takes a lot of time,
and sometimes one may not be able to access the site due to too many visitors. This is a
major disadvantage for those expecting speed.

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1.4 FACTORS INFLUENCING THE CHOICE OF AN APPROPRIATE MEDIUM
ADVERTISEMENT

A variety of media options are available to the marketers these days and all these mediums have
distinguishing characteristics. Each media has its own advantage and limitation. Thus, the right
choice of a medium calls for a careful analysis. Some of the important factors affecting the
choice of an appropriate medium of advertisements are as follows:

1. Marketing Objectives of Firm- The development and execution of the media plan
must be according to the marketing objectives of the firm. Company’s overall objectives
are the prime considerations in media selection. Different media have varying capacity
to meet the objectives.
2. Nature of product- The nature of a product makes it more suitable to one medium than
to another. For examples, Industrial products are advertised mostly in print media than
broadcast media; products like cigarettes, alcohols and wines are never advertised on
radio and television. Also, the newness of the product may affect its media decisions.
3. Nature of customer- A suitable media plan must be made only after carefully assessing
the number, type and nature of consumers for which advertising is to be done.
4. Distribution of the product- If the product or service is to be made available locally
or regionally, advertisement medias having local or regional coverage are selected. For
example, local newspapers. If the product or service is to be made available at a national
level, advertisement medias having national coverage are selected.
5. Pricing strategy – It can have a noticeable influence on the media plan. Products with
a low unit sales price and limited sales potential should not be advertised through the
medium of television as its cost of advertisement is high, while luxurious products like
cars, smartphones, laptops, etc. should be advertised through the medium of television.
In other words, a company cannot spend huge amounts on advertisement of a low-priced
product that has a limited sales potential like second hand text books, while the company
spends heavily on advertisement of high-priced luxurious goods.
6. Media reach and coverage – The media which has a wider reach and can cover out
target consumers should be selected.
7. Competitive forces – The nature and number of competitors existing in the market also
affect the selection of media. For example, if the print media is captured by competitors,
the media planners might opt for television advertising.

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1.5 SUMMARY

One can define media as a vehicle through which messages are transmitted from the marketers
to their target audience.

Advertising media is a means of delivering the definite message i.e. it is a means of through
which a message or information is passed on to prospective customers, readers, viewers etc.

Various medias of advertising:

1. Newspaper
Advantages – wide reach, economical, continuity, quick response, regular and
frequent, flexibility
Disadvantages – short life span, lacks quality reproduction, limited readership,
uncertainty, cluttering.
2. Magazines and Journals
Advantages – better attention, long life span, more attractive and better
positioning, prestigious media, selectivity.
Disadvantages – less flexible or rigid, small coverage, less repetition, expensive,
lack of timeliness.
3. Television advertising
Advantages – greater impact, mass coverage, cost effective, repetition, goodwill,
effective timing.
Disadvantages – costly, short duration, lack of targeting, finite viewer attention,
strict codes of conduct, difficult to make modifications.
4. Radio advertising
Advantages – inexpensive, mass reach, repetition, better impact.
Disadvantages – shorter life, crispness, cluttering, lack of visuals,
fragmentation.
5. Outdoor advertising
Advantages – extensive local market coverage, offers instant impact, cost
effective, efficient, creates awareness.
Disadvantages – lacks a long-term impact, easily overlooked, no guarantee of
success, not always cost effective, issues in measurement, limited information.
6. Transit advertising
Advantages – high frequency, long exposure, cost effective, geographic reach,
timeliness.
Disadvantages – limited impact, reach, vandalism, waste coverage.

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 7. Promotional products marketing
Advantages – high selectivity, creates goodwill, generates referrals, cost,
supplements other media.
Disadvantages – image, longer lead time, market saturation.
8. Advertising in movie theatres
Advantages – mass publicity, wider impact, less clutter, proximity, ability to
remember.
Disadvantages – costly, late arriving audience, annoyance.
9. Product placement in movies and television shows
Advantages – ability to remember, supplements other media, advanced
targeting, minimized risk of ad avoidance, frequency, bypassing regulations,
additional source of revenue for the film companies.
Disadvantages – expensive, competition, limited control, negative placements,
exposure, limited appeal.
10. Internet and interactive media advertising
Advantages – wider coverage, target marketing, interactive capabilities, cost
effective, creativity, sales potential, speed, supplements other media.
Disadvantages – measurement problems, increased clutter, privacy, potential for
deception, poor reach, web snarl.
Factors affecting the choice of appropriate medium of advertisement:
1. Marketing objectives of the firm
2. Nature of the product
3. Nature of the customer
4. Distribution of the product
5. Pricing strategy
6. Media reach and coverage
7. Competitive forces

1.6 SELF ASSESSMENT QUESTIONS

1. Define advertising. Enlist various medias of advertising.

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2. Enlist the factors affecting the choice of appropriate advertisement media.

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3. How can different media be classified?
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4. write a short note on
a. radio advertising
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b. transit advertising
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c. product placement in movies
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5. State the importance of internet as a medium of advertisement. What are its limitations?
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6. Discuss the importance of television as a medium of advertisement.
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7. Discuss the limitations of advertising in movie theatres.
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 LESSON 2

MESSAGE DEVELOPMENT AND ADVERTISING

EFFECTIVENESS

2. STRUCTURE

2.0 Objective
2.1 Meaning of advertising copy
2.2 Essentials of an effective copy
2.3 Characteristics of Great Advertisements
2.3.1 Characteristics of TV Advertising Media
2.3.2 Characteristics of Radio Advertising Media
2.4 Elements of Copy Structure
2.4.1 Advertising Theme
2.4.2 Advertising Layout
2.5 Types of Advertising Copy
2.6 Writing Advertisement Copy for Different Media
2.7 Consumer’s Buying Motives
2.8 Push and Pull Strategies
2.8.1 Push Strategy
2.8.2 Pull Strategy
2.9 Advertising Effectiveness
2.10 Evaluation of Advertising Effectiveness
2.11 Importance of Evaluating the Effectiveness of Advertising
2.12 Difficulties while elevating the Effectiveness of Advertising
2.13 Methods of Measuring Advertising Effectiveness
2.13.1 Direct Measurer of Advertising Effectiveness
2.13.2 Indirect Measurer of Advertising Effectiveness
2.14 Summary
2.15 Self-assessment questions

2.0 OBJECTIVE

After reading this lesson, you should be able to:

1. Understand the concept of Advertising copy, characteristics, its elements and types.
2. Consumer buying motives
3. Understand advertising effectiveness and methods to measure advertising effectiveness.

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2.1 MEANING OF ADVERTISING COPY

Advertisement Copy is the soul of an advertisement. An advertisement copy is all the written
or spoken matter in an advertisement expressed in words or sentences and figures designed to
convey the desired message to the target consumers. In print media, an advertisement copy is
made-up of head-line, sub-headlines, body of the copy, illustration logo-type, slogan and the
brand name. Strictly speaking, written content of an ad copy is the product of the collective
efforts of copy-writers, artists and the layout-men. Copy writer and artist must collaborate to
provide an advertisement though copy writing precedes or succeeds the art- work and the
layout.

2.2 ESSENTIALS OF AN EFFECTIVE COPY

Whether a copy is effective or ineffective is a matter of personal judgment. It is really very

difficult to judge as its evaluation is purely subjective and perceptive. However, a good or
effective copy is one that succeeds in reaching the target consumers to create favourable
attitudes towards the product and the producers, impelling an action on the part of consumer to
buy. A good advertisement copy has the following attributes:

1. Brief- Brevity is the soul of wit. Most readers are interested in shorter advertisements.
Being brief is not dropping words or chopping sentences. It is the meticulous work of
eliminating and substituting the words without jeopardizing the meaning. It cuts to the
core; it is to the point to cover all.
2. Clear- A clear copy is one which is easily and quickly read and grasped by the readers.
It is unambiguous and self- explaining. It is one that clicks fast. Clarity gives clue to
interpretation. The manner in which a copy is interpreted is dependent on factors like
local traditions habits, customs and nationality. Clarity is adjusted to these points.
3. Apt- A copy is apt that matches to the needs and counts of the prospects. Writing an apt
copy is the art of putting in the words that create strong desire to possess the product
where the product features or the qualities satisfy the consumers’ desire to possess.
Copy writer is to place himself in the position of a customer to make it apt.
4. Personal- A personal copy is specific where generality is dismissed to do away with
ambiguity. A personalised copy is centred on the prospect. It presents something of
interest to the prospect. It is an individualised appeal copy. It is written from ‘prospect’
to ‘product’ rather than ‘product’ to ‘prospect’. The copy has ‘you attitude’.
5. Honest- Credibility or believability of an advertisement message is decided by the
extent of honesty. An advertisement to be good must be truthful. Misleading and mis-
presented facts made in the copy only damage the reputation of selling house. One of

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 the surest ways of winning the hearts of the consumers is to be honest. ‘Honesty’, here,
implies ‘commercial honesty’ and not the ‘judicial’.
6. Conforming- Every advertisement copy is to conform to standards, rules and
regulations acceptable to the advertising media and the laws of the land. Anywhere in
the world, no copy is acceptable to any media that offends the morality, declines
decency and ravages religious susceptibilities of people.
2.3 CHARACTERISTICS OF GREAT ADVERTISEMENTS

If advertising is an art, and art represents an attempt to communicate with audience, then the
evaluation process is also somewhat subjective. Unfortunately, this high-minded notion may
leave you, the small-business owner, with a tough decision to make: How do you reconcile all
these subjective viewpoints? In this case, you’ll be relieved to know that good advertisements
feature some qualities, with some overlap between medias such as print, TV and radio.
One’s own experience as a consumer is a good launching point for his/her own learning curve
on effective advertisements. Just think about the advertisements that attract you the most
regardless of the medium, your instincts will serve you as well as you review potential
advertisements for your own business. In other words, the advertisement one remembers most
likely depends upon how quickly and succinctly the information is provided and how easily it
can be memorised and recalled.
As an owner of a small-business, the advertisements you intend to give green lights must
complement your marketing strategy otherwise, you’ll undertake an exercise in futility. As
marketing professor Jeff I. Richards has said: “Creativity without strategy is called art; creative
with strategy is called advertising.” David Ogilvy might have agreed with that pithy assessment.
As one of the most influential key players in the field, he offered practical advice to writers of
print ads: “On the average, five times as many people read the headline as read the body copy.
When you have written your headline, you have spent eighty cents out of your dollar.”
The headline in an advertisement – much like the headline over a newspaper article – reigns
supreme. The font size should stand out, and perhaps be boldfaced too. Effective print
advertisements hold these characteristics:
1. Attract attention- Insiders refer to it as the “pull factor,” or the ability of an
advertisement to pull readers in. But there is no secret formula to mixing a pull-factor
cocktail. A winning ad could contain many elements, or it could be relatively sparse.
(Blank space draws attention too.) If you or your team happen to find the right blend,
you could be tomorrow's next millionaire. In other words, in order to make your
advertisement effective there would be an element which is going to attract the attention
of people at large.
2. Hold attention- Just attracting the people at large is not going to fulfil the purpose and
in addition the advertisement should be able to hold attention of people at large and at
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 least long enough for the reader to absorb the content of the advertisement. Yes,
attractive images sell, but rumour also plays an imported role if anchored by an
irresistible image (a photo or an illustration).
3. Emphasize benefits- Emphasize benefits rather than features. An effective
advertisement should emphasize the benefits of a product in its advertisement so that
more audience can be attracted towards the product and audience becomes the
prospective buyer of the product.
4. Include colour- Though strictly black-and-white ads can be appealing if there is
symmetry with the product or service. Advertisements are simple to understand, with
one compelling message that stands out.
5. Include a memorable feature- An effective advertisement should have a memorable
feature, such as a tagline (which many people also refer to as the slogan).
6. Call to action- An effective advertisement should contain a call to action either in the
form of a directive (which is assertive) or an invitation (which is subtler) to take the
next step.
7. Complement a company's brand- Sometimes even big companies make the mistake
of thinking that consumers will enjoy a daring or controversial or racy ad that flies in
the face of their corporate image. But this usually isn't the case. It's one thing to be bold
and take an occasional risk with advertising; it's another to draw controversy that
reflects so poorly on your good name that you must cancel an ad and then apologize for
it.
2.3.1 Characteristics of TV Advertising Media
Peter Drucker knew a few things about corporate missteps. Regarded as the “father of modern
management,” he also made some memorable observations about marketing and advertising,
such as: “The aim of marketing is to know and understand the customer so well the product or
service fits him and sells itself.”
This may sound as though the process of advertisement creation is easy. But that isn't what
Drucker meant. Like good actors, good advertising looks effortless. Effective TV
advertisements also:
1. Forge an emotional connection with viewers- Of the three mediums viz., print media,
Tv, radio, TV stands the greatest chance of creating such a connection because it merges
the power of print (words and images) and the influence of radio (audio) with live
action. Two emotions are especially effective at triggering such connections, says the
Nielsen Corporation, a global marketing research company. These two emotions are
humour and empathy.
2. Tell a story- Sometimes in a series of commercials, part of the reason content marketing
is dominating the marketing world is because marketers have learned that consumers
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 respond well to stories – “success stories” about products, stories about consumers just
like themselves and stories of hope. Such stories help forge an emotional connection
with a company, which in turn can instil customer loyalty. Clear, simple and upbeat
stories seem to register best with consumers.
3. Memorable- An advertisement should be memorable, if not mimic able, helped along
by either a provocative message, a catchy jingle or a popular celebrity. Effective TV ads
get people talking, especially on social media, and can be a huge boon for the small
business owner.
4. Celebrate a brand- An advertisement should be in the form of showcasing a logo or
corporate mascot and doing so early and often throughout an advertisement. TV viewers
are both distracted and fickle, so if they're not drawn to an ad in the opening seconds,
they're unlikely to engage with it at all. With repetition, these images become familiar
and familiarity breeds recognition that gets attention.
As Nielsen says: “A strong ad that builds emotional and behavioural connections with
consumers will not only help drive sales for the brand, but also drive long-term brand loyalty
and equity down the road.”
2.3.2 Characteristics of Radio Advertising Media
Radio is the toughest venue for building such connections, which is precisely why many writers
prefer creating ads for this medium above any other. The demands of radio keep them focused
on creating a “lean and mean” ad that literally cannot afford to mince words.
As Leo Burnett, the creator of such icons as the Pillsbury Doughboy, Tony the Tiger and Charlie
the Tuna, said of benefits versus features: “Don’t tell me how good you make it; tell me how
good it makes me when I use it." Effective radio advertisements also:
1. Capitalize on the opening lines with a “hook”- An attention-grabbing device harness
listeners' visual skills, if not their imagination. There really is no choice here; unlike
print and TV, radio features no visuals and radio listeners often are busy with other tasks
– working, driving, paying bills – while they're tuned in to their favourite station. If this
sounds too daunting, try drawing some inspiration from your favourite songs. At some
point, they captured your imagination.
2. Exude simplicity- Words in radio ads should be simple to understand. Sentences should
be simple to decipher. And the overriding message should be simple to follow. But
simplicity shouldn't be confused with being simple-minded.
3. Feature an offer and a call to action- Some marketing professionals might put the
word “urgent” before “call to action,” but everyone has heard annoying radio ads that
overdo the message. The key, again, is balance.

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2.4 ELEMENTS OF COPY STRUCTURE

The elements or component parts of the copy of advertising or copy structure can be viewed
from these two aspects viz., Advertising Theme and Advertising Layout
2.4.1 Advertising Theme
A theme represents a particular view-point or a central idea with which the message is conveyed
to the consuming public. The theme involves a rational appeal based upon human emotions,
desires or sentiments. Such well-thought-out and specific appeals became effective in arousing
desire and in initiating action on the part of consumers. The following are the common themes
used in advertising:

1. The theme of beauty- The sales appeal for cosmetics, perfumeries and toilet products
are usually based upon the theme of beauty. Accordingly, the message of the
advertisement contains expressions like “For romantic or charming appearance, use
product A”, “Product B ensures alluring or exquisite complexion”, or “Care your hair
with product C for glossy glimpse and luxuriant growth.”

2. The theme of pride- The sales message in the case of jewelleries, radios, costly clothes,
motor cars and others are laid upon the theme of pride, since the acquisition of such
products is deemed as proud possessions on the part of buyers. For example, “Prestige
car means Mercedes”, “Discerning people prefer Raymond’s linen fabric”, or
“Tanishq’s Jewellery adorns fashionable ladies.”
3. The theme of health- Food products and drugs are advertised through reliance upon
the theme of health. To take some examples, “Product A supplies boundless energy and
vigour”, “Health brings happiness—and the key to health is held by product B”,
“Product C keeps you free from disease”, or “Eminent physicians prescribe D for cold
and cough.”
4. The theme of comfort- Products which aid in giving comfort to the people at work or
at home are advertised through the theme of comfort. Electrical fans, air-conditioning
plants, refrigerators and the likes belong to the group of products meant for providing
comfort.
5. The theme of economy- This is a common appeal used in many cases for making
bargaining purchase, for saving money or far protecting costly things from decay and
destruction.
6. The theme of fear- The theme of fear is utilized by insurance companies and safety-
vault operators in expanding the demand for their services. Possible dangers and their
consequences are presented in the copy of advertising for initiating action on the part of
their customers.
7. The theme of emulation- The desire for imitation is strongly implanted in human
nature. By giving illustrations and factual information as to what some distinguished

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 persons do, the message of the advertisement may call for imitation on the part of others.
To take one case, “The successful men all over the globe use Blade A.”
8. The theme of distinction- The desire for individual recognition, distinct social status
and superior community standing is inherent in human beings. As an outward mark of
that distinction, selected products of very expensive nature are acquired by a class of
people who may be aristocrats.
9. The theme of affection- Baby foods, toys and other playthings are advertised on the
basis of this theme. By directing appeal towards parental love, the copy of advertising
becomes effective in securing action on the part of buyers.
10. The theme of patriotism- The appeal for products of national origin is sometimes based
upon national sentiments. For the prosperity of a nation and its citizens, the theme of
patriotism makes out a case for using national products in preference to goods of foreign
origin.

2.4.2 Advertising Layout

Layout is the logical arrangement of components of an advertisement in the copy and deals with
systematic presentation of the message. The pattern of layout varies according to the medium
to be used. For newspapers and magazines, the presentation of the message is visible in written
words and pictures; in radio the presentation is audible in spoken words and sound effects; and
in television, both audio and visual presentations are practicable. In all cases, balance and
symmetry are of prime importance in presenting the message within the allotted space or time.
Visual layout in any publication can be divided into the following three parts:

1. Headlines- Headlines are used in bold letters for drawing attention of the consuming
public. The size and length of the headline must be appropriate to the general format
and page size of the publication; it must also be in keeping with the theme of advertising
and with the entire make-up of the copy. Usually, short headlines are given stressing
some facts, suggestions, prepositions or convictions. In magazines and trade journals,
colour printing is adopted for headlines to make than more prominent and conspicuous
in character.
2. Illustrations- Illustrations are given by way of pictures, symbols or photographs for
drawing attention, creating interest as well as for arousing desire. Significant
illustrations may be worth a thousand words in securing public reception for the product.
But limits of decency must not be exceeded in presenting pictures or photographs which
should always be in good taste. Obscene and objectionable pictures do more harm than
good to the cause of advertisement.

3. Texts- Texts provide the heart of the message of advertisements, and they are to be
woven around an advertising theme. For an individual copy, one theme is desirable; a
multiplicity of themes creates confusion and weakens the strength of appeal. For
presenting the text, different practices are followed in the business world. In some cases,
the text is prefaced by a statement of problem to the reader and followed by a solution
thereof. In other cases, reading materials are presented in an analytical manner with
pertinent facts and data. Furthermore, the text may be presented by the use of type face
in one copy or of hard lettering in another copy.
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2.5 TYPES OF ADVERTISING COPY

Technique or formula of presentation of an ad is the way in which a message is presented.

Various types of advertisement copies are formulated to inform, inspire, influence, affect and
inscribe the mindset of the reader. Certain elements are significant in a copy like the attention,
conviction, sentiment, instinct, and education. The advertisement copies can be divided into six
main types:

1. Human Interest Copy- Human interest copy entices the emotions and senses of its
prospective customers rather than the intellect and judgment. This advertisement copy
defines the product to people instead of sticking to facts. Human Interest copy gets to
selling part indirectly or reluctantly. It focuses on people’s undying interest in
themselves, their families and friends. The most important forms of Human-Interest
Copy are- humorous copy, fear copy, predicament copy, and story copy.
2. Reason Why Copy- A Reason Why advertising copy offers reasons as to why the
consumers are expected to buy the product of a particular brand. The reason why copy
appeals directly to the intellect or the judgment of an individual than the emotions. It
tries to explain the product qualities and benefits by giving evidence in the forms of
testimonials, guarantees, customer experiences, and so on. The approach of this copy
explains reasons to readers as to why the advertised product has to be purchased. The
format of this copy states a fact about a product or a service in the headline and then
explaining why the fact is true in its further text. This form of advertising works better
in print than on media, because broadcasting an ad has a limitation with respect to time.
3. Educational Advertisement Copy- An educational advertisement copy attempts to
inform, update and prompts its clients to buy a product by educating the prospective
customers. It is designed to educate the public about the attributes of the product.
Introductory ad copies are usually created in this way. It is the responsibility of every
manufacturer to educate the prospects regarding the product and endure a warm
welcome amongst its clients. Such an ad copy signifies the benefits and special features
of the product.
4. Institutional Advertisement Copy- Institutional copy doesn’t sell its goods and
services. Institutional ad copy aims at promoting the selling house. It focuses to build a
strong reputation for the selling house. The main objective of this type of ad copy is to
create, maintain, and increase the goodwill through its philosophy, objectives and
policies so that the prospective customers register it in their minds. Institutional copy
invites the target customers to the selling outlet. It is also called as prestige or corporate
advertising.

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 5. Suggestive Copy- A suggestive copy suggests or attempts to convey the message to the
readers directly or indirectly and prompts them to purchase the product. Suggestive ad
copy works best when the reader is confused regarding the quality of the product and is
juggling with decision making regarding his purchase.
6. Expository Copy- Expository copy conflicts with the Suggestive copy. An Expository
copy doesn’t conceal anything about the product but instead exposes the facts that are
clear and apt. It describes the product features, uses, merits, operation and benefits of
the products or services. Even a swift glance registers quickly in the consumer’s mind
and is quite easy to remember or pick up.

2.6 WRITING ADVERTISEMENT COPY FOR DIFFERENT MEDIA

Writing an advertisement copy is an art of putting in the words or the elements that create a
strong desire to possess the product wherein the product features satiate the consumers desire
to possess the product. It is the ability to eliminate the surplus and substitute it with the essential
elements without jeopardising the meaning.

Action is the essential end goal of any advertisement copy, which is to receive some reaction
from the target audience for the advertisement. It could be just about visiting the page of the
brand on the net, enquiring or filling a form or the actual purchase itself.
Designs of Advertisements Copy
"Good advertising" is certainly a subjective term. Different layouts, font styles, images, and
copywriting styles appeal to different audiences. You can run the most visually stunning, well-
written ad ever crafted, but if it's aimed at the wrong audience, it's not a good ad.

Good advertising means that advertising which moves a prospect or client to action. Action can
be picking up the phone, visiting a retail location, or requesting additional information. For are
the important factors that will helps in create ads that will be noticed and acted upon;
1. Know as much about your audience as possible before writing or designing
anything- This is elementary marketing, but it's easy to lose sight of it in the day-to-
day management of your business priorities. If an advertisement is targeting the youth
market, then the approach and design elements will be vastly different than if an ad is
targeting the old crowd. And if the product is aimed at the business-to-business segment,
then different techniques will be used than if selling to the consumer market.
2. Advertising is about selling- The point of the advertisement is to generate interest in a
product or service. The ad is not meant to win awards, but to conquer the ad world.
Advertising can be visually stunning as well as effective, but the most important
rationale behind any advertisement is that the point is to sell.
3. Unless you are very capable, hire a freelance designer or agency to create your
advertisements- With the proliferation of desktop publishing tools, many small-
business owners have started creating their own advertisements. It is strongly advised
that not to do this unless they are very proficient. The reason is simple: be an expert at
what you do best. Do they really have the time to keep up-to-date and educated on all

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 the latest design software? The money they save on design fees is nominal compared
with what running a bad ad cost them.
4. Speak clearly and concisely in your copy- Avoid buzzwords and puns. Speak to one
person, not the masses - make your ads feel personal to your intended readership. If
copy isn't your bag, work with a copywriter to create the wording of your advertisement.
5. Don't go overboard with graphics- This is especially tempting if you're creating your
own advertisements - all that clip art just crying out to be used! Graphics should enhance
your advertising and help draw people into the advertisement, not overwhelm it.
6. Take the time to write a strong headline- Keeping in mind your audience, and write
several headlines until you come up with a particularly compelling one. Beware of
overused words (although "free" is an oldie but goodie) and any humour that your
audience could construe as offensive.
7. Pick one message and one message only- Don't try to cram everything into your
advertising. Select one point, product, or offer in your ad, and build the copy and design
elements around it. Ads that try to be all things to all people usually fail to reach anyone.
8. Consider the 40-40-20 rule- The catalogue industry believes that there's a 40-40-20
mix in creating a successful catalogue: 40% is offering the right product, 40% depends
on the right list, and 20% is creative. Translate the list to media placement, and this
formula will help you in putting together your ads.

2.7 CONSUMER’S BUYING MOTIVES

Basically, there are two types of buying motives-

TYPES OF
BUYING
MOTIVES

INTERNAL EXTERNAL
MOTIVES MOTIVES

RATIONAL EMOTIONAL
BUYING BUYING
MOTIVES MOTIVES

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INTERNAL MOTIVES
Such motive originates in the mind of people and is usually both physical and psychological.

RATIONAL BUYING MOTIVES

Such motive is based on an individual’s logic, reasoning and ability. It simply means that a
consumer selects goal on the basis of objective criteria such as economy, durability, weight,
size and so on.
EMOTIONAL BUYING MOTIVES
Such motive is based on the psychological consideration of an individual and covers a wide
range of motive for instance, pleasure, status, fear, affection, social esteem etc.
EXTERNAL MOTIVES
Such motive is based on the one’s environment and is heavily influenced by one’s environment.
Nature of such motive is dynamic. Various factors which play the role of being motivator are
economic, cultural, political, social etc.

THE FOLLOWING ARE SOME OF THE MOTIVES WHICH ARE PREVALENT FOR
BUYING ANY GOOD OR SERVICE-
1) Security and protection is one of the motives. We buy many things to avoid any kind
of physical harm to either ourselves or our loved ones or our property. For instance,
we buy medical insurance to ensure that in case of emergency of need of funds for
diseases, there is some place from where we will get sure help. Another example
could be fire extinguisher set up at work places which is going to help in case of
emergency related to fire.
2) A desire to gain out of purchase is yet another motive. For instance- a student might
pursue certain course in order to get a good job on the completion of that course.
Another example could be purchase of washing machine by a housewife, she might
buy it in order to reduce the time and effort needed to wash the clothes.
3) Comfort and convenience is also one of the motive. One may buy car in order to
avoid travelling by public transport, air conditioner to avoid sourcing heat in
summers.
4) The fourth could be fear of loss. One buys good security locks and system at home
in order to avoid theft and robbery at home, office, shops etc.
5) Another reason could be to satisfy ourselves like planned destination weddings etc.

2.8 PUSH AND PULL STRATEGIES

2.8.1 Push Strategy
A push strategy places the product in front of the customer, via a form of advertisement, to
make sure the consumer is aware of the existence of the product. This type of strategy works
well for low value items and impulse buy items. The different ways a company can use a push
strategy to increase awareness of a product includes:
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 1. At trade shows and showrooms, businesses can demonstrate the product's features to
potential customers.
2. Companies can encourage retailers to stock a product. Sometimes a company has to
negotiate with a retailer to stock a specific item because retailers have limited store
space and need to stock items they know will sell.
3. Companies can create a supply chain so that retailers can obtain the product in sufficient
quantities.
Push strategies work best for merchants that already have an established relationship with users.
For example, cell phone providers proactively send (i.e. push) advertisements via text
or MMS messages to mobile customers regarding promotions and upgrades. This permission-
based marketing can be effective if personalized for the user based on personalized preferences,
usage and buying behaviour. However, push strategies are also effective for
building demand for high-priced services (e.g., enterprise software) that are targeted to specific
markets.

2.8.2 Pull Strategy

A pull strategy stimulates demand and motivates customers to actively seek out a specific
product. It is aimed primarily at the end users. A strong and visible brand is needed to ensure
the success of a pull strategy. The different ways a company can use a pull strategy to promote
a brand includes:

1. Advertising strategies that include mass media promotion of a product.

2. Customer relationship management that makes existing customers aware of new
products that will fill a specific need.
3. Referrals for new products.
4. Sales promotions and discounts

Using these strategies will create a demand for the product. With that demand, retailers will be
encouraged to seek out the product and stock it on their shelves. For instance, Apple
successfully uses pull strategies to launch iPhones or iPads. Likewise, music has also fallen
under pull strategies due to digitization and the emergence of social networking websites. Music
platforms such as iTunes, Gana and Saavan are reflective of the power shift from providers to
consumers. Merchants must adapt their strategies to pull in demand, rather than push products
in this case, music to consumers. Most businesses will use a combination of push and pull
strategies in order to successfully market a product.

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2.9 ADVERTISING EFFECTIVENESS
Advertisement is a costly affair, but very seldom serious attempts are made to judge how far it
is effective, how many benefits the costs of advertisement yield, how the benefits, if any, are
related to advertisement and so as. Till recently, the effectiveness of advertisement has been
measured in relation to sales. This is what is known as quantitative way of measurement. This
measurement emphasises whether an advertisement was acceptable to consumers and whether
they digested it and remembered it. This is known as “stimulus response function”. There is no
dispute about the fact that the most objective way of measuring an advertisement is through
sales. Sales in turn are influenced by complexity of forces which fall into qualitative type of
advertisements. Therefore, the measurement of quality is an indicator of the index of the
quantitative type of measurements. The advertisement should first appeal, that is, it should
stimulate the demand for a particular type of the product. Only then can some results be
expected from it. The success of an advertisement can be analysed only with the help of some
survey data relating to consumer response and sales.

2.10 EVALUATION OF ADVERTISING EFFECTIVENESS:

Good planning and control of advertising depend critically on measures of advertising
effectiveness. From the standpoint of evaluation, methods may be broadly divided into two
classes: The reach and reception of the communication and the results of the communication.
An advertising effectiveness test can be classified as; Pre-testing, and Post-testing.
Pre-testing means testing the potentiality of a message or copy before printing. There are three
types of pre-testing and they are:
1. Questionnaire- The draft of an advertisement along with some relevant questions is
sent to a group of target consumers or advertising experts and their opinions are
collected and analysed to find out whether the proposed advertisement is satisfactory or
not.
2. Recall- A group of respondents is shown a number of alternative advertisement drafts
giving as much time as they want to read them. After the specified time, they are asked
to recall them and to reproduce them as much as they can. The responses are analysed
to find out how far the advertisements are impressive, which ones are more impressive
and so on and so forth.
3. Reactions- The potential effect of an advertisement may be judged with the help of
certain instruments which measure heart beats, blood pressure, pupil dilution such as
stethoscope, psycho galvanometer, eye observation camera, etc. These reactions
provide case to its power to get attention and produce other psychological or nervous
effects.

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After an advertisement has appeared tests may be undertaken to judge, the impact of
communication, and the ultimate results in the form of sales, known as past-testing. There are
two methods used for this measuring the impact of communication and they are:
1. Recall: Regular users of the related medium may be asked if they can recall a specific
advertisement, including the name of the advertiser and the products referred to and if
so, how much of the advertisement they can play back. Their responses are studied and
graded to see how far the advertisement was successful in attracting notice or being
retained.
2. Recognition: In this case, a particular issue of a medium is shown page by page to a
sample of its readers and they are asked to point out which advertisements they
recognise as having seen and or on the basis of the replies, evaluation is made of the
receptiveness of the advertisement.

2.11 IMPORTANCE OF EVALUATING THE EFFECTIVENESS OF ADVERTISING

The importance of evaluating of the effectiveness of advertising is listed below:

1. It is generally opined that much of advertising expenditure is wasteful. Proper
evaluation would help in finding out whether it is really wasteful and if so how much
of it is so.
2. Evaluation reveals the strengths and weaknesses of different media and thus provides
useful guidance for future media planning.
3. Through suitable methods, the draft of a message or a copy can be tested beforehand so
that preventive steps may be adopted and waste reduced.
4. The whole process of evaluation leads to a body of recorded experience which may be
useful not only to the improvement of advertising but also to better planning.
5. Evaluation shows not only which advertisements are less productive but why they are
so. So, it indicates the sources for greater effectiveness.

2.12 DIFFICULTIES WHILE EVALUATING THE EFFECTIVENESS OF

ADVERTISING

There are many difficulties in the evaluation of the effectiveness of advertising and they are:
1. Good researchers who can successfully measure the impact of advertising are difficult
to get.
2. It is difficult to say how much increase in advertising resulted in how much rise in sales.
3. The primary aim of advertising is to increase sales. But it cannot be concluded that the
entire increase has been due to advertising. In reality, many factors influence sales,
advertising is just one of them.

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 4. Advertising has many goals, one of them is to build goodwill. But measurement of
goodwill is not possible.

2.13 METHODS OF MEASURING ADVERTISING EFFECTIVENESS

There are two types of measures of advertising effectiveness namely:

1. Direct measures and

2. Indirect measures.

2.13.1 Direct Measures of Advertising Effectiveness

Under direct measures, a relationship between advertising and sales is established. A

comparison of sales of two periods or two periods or two markets may be done and the
corresponding changes may be noted. The following are some of the methods that are generally
used in measuring that advertising effects.

1. Historical Sales Method- Some insights into the effectiveness of past advertising may
be obtained by measuring the relationship between the advertising expenditure and the
total sales of the product. A multiple regression analysis of advertising expenditure and
sales over several time periods may be calculated. It would show how the changes in
advertising expenditure have corresponding changes in sales volume. This technique
estimates the contribution that advertising has made to explaining in a co relational
manner rather than a casual sale, the variation in sales over the time periods covered in
the study
2. Experimental Control- The other measure of advertising effectiveness is the method
of experimental control where a causal relationship between advertising and sales is
established. This method is quite expensive when related to other advertising
effectiveness measures yet it is possible to isolate advertising contribution to sales.
Moreover, this can be done as a pre-test to aid advertising in choosing between
alternative creative designs. Media schedules expenditure levels or some combination
of these advertising decision areas. One experimental approach to measuring the sales
effectiveness of advertising is test marketing.
3. Before-after with Control Group Design- This classic design uses several test and
control cities in this design two types of cities are selected. Cities in which advertising
campaigns are affected may be named as test cities and other cities may be called central
cities. First of all, the normal sales level is calculated for both type of cities prior to
advertising campaign, and then the advertising campaign is presented to the test cities
and not the central cities. The effect of advertising campaign, can then, be measured by

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 subtracting the amount of post campaign figure of sale from the pre-campaign sale
figures in test cities.
4. Multivariable Experimental Designs- While the experimental design discussed above
yields a reasonably accurate estimate of the effects of the advertising on sales, it is not
successful in explaining the success or failure of the campaign itself. Multivariable
designs Produce these explanations and are, therefore used by some very large firm
because of their diagnostic value. The power of this multivariable factorial design is
explained by G.H.Brown, former Fords Director of Marketing Research. For any single
medium, eight possible geographic areas have been exposed and eight have not been
exposed. Thus, in this experimental model it is possible to evaluate how each individual
medium behaves alone and in all possible to evaluate how each individual medium
behaves alone and in all possible combinations with other media.

2.13.2 Indirect Measures of Advertising Effectiveness

As it is very difficult to measure the direct effect of advertising on company’s profits or sales,
most firms rely heavily on indirect measures. These measures do not evaluate the effects of
advertisements directing on sales or profits but all other factors such as customer awareness or
attitude or customer recall of advertising message affect the sales or profits or goals of the
business indirectly. Despite the uncertainties about the relationship between the intermediate
effects of advertising and the ultimate results, there is no other alternative but to use indirect
measures. The most commonly used measures are;

1. Exposure to Advertisement- In order to be effective, the advertisement must gain

exposure. The management is concerned about the number of target audiences who see
or hear the organization message set in the advertisement. Without exposure,
advertisement is bound to failure. Marketers or advertisers may obtain an idea of
exposure generated by the medium by examining its circulation or audience data which
reveal the number of copies of the magazine, newspaper or journal sold the number of
persons passing the billboards or riding in transit facilities, or the number of persons
living in the tele viewing or radio listening area, and the number of persons switching
on their T.V. and radio sets at various points of time.
2. Brand Awareness- The marketers who rely heavily on advertising often appraise its
effectiveness by measuring the customer’s awareness about the particular product or
brand. The assumption of this type of measure is that there is a direct relationship
between the advertisements and the awareness. This type of measure is also subject to
the same criticisms as is applicable to direct measures of effectiveness (sales measures
because awareness is also not the direct result of the advertisements. It is also affected
by many other factors. But, for new products, changes in awareness can often be
attributed to the influence of advertising.
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 3. Comprehension- Consumers generally use advertisements as a means of obtaining
information about the product, brand or the manufacturer. They cannot be informed
unless they comprehend the message (grasp the message mentally and understand it
fully). Various tests for valuating comprehension are available. One is recall tests – an
indicator of comprehension because it is evident that consumers recall what they
comprehend. Another measure of the variable is to ask questions about subjects how
much they have comprehended a message they have recently heard or seen. One may
employ somewhat imprecise test of the comprehension of a newspaper and radio
advertisement. One may ask typical target consumers from time to time such questions
like ‘what did you think of our new commercial?’ and ‘Did it get the message across’?
The answers of these questions will provide sufficient insight into advertising decision
making.
4. Attitude Change- Since advertising is considered to be one way of influencing the state
of the mind of the audience towards a product, service or organisation, the results are
very often measured in terms of attitudes among groups exposed to advertising
communication. Several measures are used ranging from asking the questions about
willingness to buy the likelihood of buying to the measurement of the extent to which
specific attributes (such as modern or new) are associated with a product.
5. Action- One objective of advertisement may be assumed to be to stimulate action or
behaviour. The action or intention to take an action may be measured on the intention
to buy measuring instrument. Under this type of measure, consumers are asked to
respond why they are interested in purchasing the product or brand. One type of action
that advertisers attempt to induce is buying behaviour. The assumption is that if an
increase in sales follows a decrease in advertising expenditure, the change in sales levels
are good indicators of the effectiveness of advertising.

Thus, these above measures (direct or indirect) are used to evaluate the effectiveness of
advertisements. It seems from the analysis of the above methods of measuring advertising
effectiveness that directly or indirectly changes in sales or profits are taken as the measuring
rod of the effectiveness of the advertising.

2.14 SUMMARY
To convey the advertising message effectively everything needs to be good such as the copy,
the layout, illustrations. Advertisement copy is the soul of an advertisement. An advertisement
copy is all the written or spoken matter in an advertisement expressed in words or sentences
and figures designed to convey the desired message to the target consumers. For a successful
advertisement the copy must be effective, for the better results. There are two main themes of
advertising copy viz., advertising theme and advertising layout. For an effective advertisement
study of consumer needs is very important. Consumer buying motives should be taken into
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consideration while making a copy. There are two main strategies of advertising; push and pull
strategy, and a better advertisement is made through using both these strategies. Advertisement
is totally a wasteful activity for a firm if it is not effective or not able to reach its audience
effectively, so it is very important to measure the advertisement effectiveness. There are
different ways of measuring advertising effectiveness by the companies.
2.15 SELF-ASSESSMENT QUESTIONS
1. Discuss the need and importance of measuring advertising effectiveness?
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2. What are the various ways of evaluating sales effect of advertising?
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3. What are the common methods for measuring advertising effectiveness?
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4. Discuss some pre-testing and post-testing techniques used to measure advertising
effectiveness?
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5. Explain the essentials of an effective copy?
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6. Explain briefly all the elements of copy structure?

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7. Discuss the push and pull strategy of advertising and their suitability?
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8. Explain the characteristics of TV advertising?

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 LESSON 3

ADVERTISING THROUGH INTERNET

The power of internet is phenomenal, it is the ultimate advertising medium, in the present
day world it has become such an integral part of daily lives that its existence simply cannot
be ignored. Today internet as medium of advertising is not an option.

The Internet is the worldwide means of exchanging information through series of

interconnected computers.

Any communication that can be received through the online media can be termed as online
advertising or promotion . While designing communication for internet it is imperative to
remember that net is not just a promotional medium but also a transactional medium and
distribution channel. Advertising or promotion through internet can take various forms such
as:

Website

An organisation’s or a product website is one of the most basic and potent tools of marketing
communication. A website is in fact a location on the internet where anyone can come to find
out about the company its products or services. A website can integrate various
communication tools at the same time. It act as public relation tool that can influence public
opinion through product information, articles, photographs, media clippings , financial
reports etc and addresses various audience simultaneously- consumers, employees, investors,
government etc. It act as sales promotional tool by communicating about distributional and
promotional offers. Through promotional videos or articles that resemble advertorials
(advertisement in the form of editorial content), a website can advertise to its audience. In
addition links from the company’s banner ads or ad buttons on other sites, consumer blogs or
social networking sites can all lead to the main website.

Typically a website is composed of many pages the first page referred to as home page is
much like a book cover or gateway and is the starting point for additional information
provided in the subsequent pages.

Important point regarding website design is about website navigation this refers to the art and
science of arranging web pages so the user can quickly can easily move from one location to
the another. Navigation provides the path as well as the signposts for people to get from one
place to another.

Content design: Copy created for the internet (refer Advertising copy) is lot different from the
conventional copy because people generally scan the information on the net by catching
words or sentences. The main purpose of website is to disseminate information, thus the
information available on website should be updated frequently , people often visit website
when they don’t find information therefore it must be provided upfront. Other consideration

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would be to highlight the key words, use bullets or captions to present the main idea,
information pertaining to specific issue or topic must be classified accordingly.

Ad Banners

Ad banner is strip of web page for onscreen ads . Banners may vary in size and appearance
however small rectangular advertisements on the top of the web page are the most common
format. Most banner ads perform the function when the viewers click on them, the internet
browser navigates the viewer to the advertiser’s website.

They provide online visibility ad help at least in getting the brand name or message registered
among the viewers also banners provide good selectivity of the target audience, advertisers
can strategically place banners by choosing relevant website based on the content of the
website or the statistics of visitors visiting that website. Further banners allow tracking of ad
effectiveness, advertiser can find out the number of people who viewed their banners , the
number who clicked through and at times their profile. This helps them keep a track of every
single rupee spent and measure results in objective terms and in real time

On the flip side banner advertisement can be highly annoying to viewers as they distract
attention from the primary content and eat up the bandwidth. Many online users are
becoming banner blind and disregard anything that flashes or looks like banner also many
browsers and proxy servers block banners . Another disadvantage is the extremely low click
rate of banners- measuring less than one percent.

Ad buttons

Ad buttons are the smaller version of banners that often looks like an icon and usually serve
as link to advertiser’s home page.

Email/Internet direct mail

Email or internet direct mail has all the advantage of the online medium – its fast,
interactive, easy to produce and use , less costly and uniquely personal which offers the
advantage of message tailoring according to the type of target customer or making
personalised message. However the biggest disadvantage is that of clutter, because people do
not like to receive unsolicited email messages called spam that is sent out in bulk to various
recipients and get irritated by millions of marketing messages they receive in the mailbox
everyday. Thus it is important to practice responsive marketing and to create promotions that
do not violate internet etiquette. This falls under the philosophy of permission marketing –the
concept advocates that marketer should not intrude into prospective customer’s private space
but should ask permission before they send out advertisements to them .Advocates of this
concept believe that permission marketing is more efficient use of marketer’s resources since
advertisements are not sent to the prospects who are not interested in them.

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Pop -Ups/Pop- Unders

Pop ups are the ads that “pop up” by opening a new browser window when a specific content
page is requested . Usually pop up ad window open in scaled down size and have only
maximize, minimize and close buttons . These disturbs the user’s browsing experience , as
these need to clicked individually to close the window and at times overload a browser’s
capacity. Pop-Unders are slightly less irritating format because new advertising window
pops under the content window . Some web pages triggers pop-unders when the user leave
that page . Browser’s and software’s allow the users to block all pop up advertising.

A special type of pop-up advertisement is the hover ad, a combination of ad banners and pop-
up that does not scroll with the web page, but hovers over the page either obscuring it
completely or by being translucent.

Interstitials/ Transition Ads/Intermercials

Interstitials are “ in between pages” that appear on or between web pages before redirecting
the user to the actual content page that he has requested. They appear between two content
pages and hence are also known as transitional ads or intermercial ads.

Interstitials are one of the few advertising forms that are difficult to be blocked by the user ,
however they are less annoying than pop-ups/pop-unders and always include a skip button
on interstitials so that user can avoid them if they want to and do not get irritated.

Blogs and community forums

Unlike website, blogs are more dynamic than website where marketers establish a dialogue
with the readers or share news, views, opinion or knowledge that meet the ends of the
audience in a informal way. Blogs are also a place where companies can expect customers to
open their heart out and give honest reviews. Through blogs companies can learn what
customers have to say about their product , test new products and even build internal brands
for eg: Microsoft tests its product through blogs created by employees . CNN-IBN connects
with its news viewers through blogs wherein employees talk about various issue ranging from
politics to daily life.

Similarly, e groups are electronic discussion forums for communities with common interest –
health, education, poetry etc. That hold immense potential for marketing products . The key
to remember while communication on blogs, e groups etc. Is to keep the discussion casual,
honest, short and in vernacular language.

Search Engine Marketing

When web surfers are not aware of the website domain’s name, the logical way to find them
about it is through search engines, Search Engine Marketing is thus a set of tactics designed
to increase the visibility of website in the search engine result pages so that more users would
visit the site.

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Keywords and copywriting: one way that a search engine determines whether or not your
web page is relevant to the keywords searched by the user is by matching those keywords
with the content of the web page. A web marketer needs to understand his audience and
target the correct search words and phrases on his web page in order to optimise the page. For
example for a website that gives information on real estate properties in delhi , following key
words or phrases could be used – delhi real estate, delhi homes/ 2 bhk/3bhk in delhi, rental
properties in delhi, commercial properties in delhi etc. However identification of key phrases
will not give look listing for any of those search terms instead identify what is the theme of
the web page , what your target audience is most likely to search for and what competition is
offering and then use the three four words or phrases accordingly. . Do not attempt to
sprinkle the web page with the generalised key words . Professional keyword generation
softwares are also available.

Relevant hyperlink names: search engines pay a lot of attention to hyperlinks and the text
immediately surrounding hyperlinks because it points to the content linked from that page .
Hence attempt is made to include important key words phrases in the links and surrounding
texts.

Page and image titles: meaningful and relevant page or image titles should be given to each
individual page of the website, the page titles called “ title pages” appear in the search engine
result pages and also as window labels in the computer taskbar panel . By reading the page
title the user should be able to make out what website and the page is all about. Thus the page
title should include select few keyword phrases . Like pages , images too need titles because
search engines cannot read the content f the images, image titles called “alt pages” too should
include key words or phrases that describe the image and increase the frequency of the
keywords on the page.

Include site map: As well as helping in navigation the site map also helps search engines to
find all the pages of a website.

Avoid spamming: the above techniques should not be used with the intention to trick search
engines and get a higher listings because search engines have smart technologies that can
detect these efforts called spamming, and blacklists website indulging in it. For example
websites have submitted duplicate pages inserted keywords of the same color as pages,
background , used popular keyword that do not directly relate to the content of the web page
have been blacklisted aster there spamming attacks were detected.

When communication managers have optimised their websites for search engines they may
submit their websites to the search engines.

Paid Inclusions: rather than waiting for the search engines to find their sites naturally which
can take quite some time communication managers might want to get listed faster through
paid inclusions called Pay For Inclusions(PFI) or PPI(Pay Per Inclusions)

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Advantages of Internet Advertising

Target Marketing: The major advantage of web is the ability to target specific groups of
individuals or groups with the minimum of waste coverage. Internet resembles a combination
of trade magazines and business journals and trade shows and exhibitions , as only those
interested in the products will visit the site . In the consumer market , through
personalization, sites are becoming more tailored to meet one’s needs and wants

Message Tailoring: As a result of target marketing, messages can be designed to appeal to

the specific needs and wants of the target audience, the interactive capabilities of the internet
make it possible to carry one to one marketing .

Interactive capabilities: Internet provides strong potential for increasing customer

involvement and almost immediate feedback. It provides a forum wherein the complaints ,
suggestions or grievances can be issued and addressed .

Information Access: The greatest advantage of internet is the availability of the information
24*7.internet users can access plethora of information anywhere, anytime they want to.

Sales Potential: Internet provides the potential for converting prospects into customers. Real
time order processing, order booking can be done through this medium

Creativity: Creatively designed sites can enhance a company’s image, lead to repeat visits
and positively position the company or the organisation.

Exposure: For many small and medium size enterprises , the internet enable them to gain
exposure to potential customers that would otherwise would have been costly or impossible.
For a section of investment that would be required using traditional media , companies can
gain national and international exposure.

Speed: The internet is the quickest and the fastest medium of connecting with the target
audience, for those requesting information on company its offerings, it is the quickest means
to get the desired information.

Complements IMC (Integrated Marketing Communication): Internet both complements

and is complemented by other IMC media, it serves as an important link in the integrative
process.

Disadvantages of Internet Advertising

We Snarl: At times downloading information from the net takes a long time, sites may
become inaccessible due to too many visitors. For many users who expect speed , this is the
major disadvantage .

Clutter: As the number of ad proliferates the likelihood of one’s ad being noticed drop
accordingly , the result is that some ads may not get noticed and some viewers may become
irritated by the clutter.

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Potential for deception: Data collection without consumer’s knowledge and permission,
hackers and credit card thefts are a number of problems confronting internet.

Irritation: Consumer’s discontent with clutter, e mail spam, pop-ups and pop unders are
irritating aspects on the internet

Privacy: Internet marketer must be careful not to impinge upon the privacy of users

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 LESSON 4

MEDIA DECISIONS-TYPES OF MEDIA

Newspaper

The primary role of newspaper is to promptly deliver detailed coverage of news and other
information, and incorporate interesting features for the readers. Newspapers can be
classified in different ways, one of the way of classification is:

National Newspapers: are the newspapers with national circulation, these newspapers have
editorial content with nation wide appeal such as The Hindu, The Times of India, Nav Bharat
Times, Dainik Jagran etc. These newspapers mainly attract national and regional advertisers.

Daily Newspapers (Regional/Local): These newspapers provide brief coverage of the

important national news and events, but there is detailed coverage of news, events and issues
concerning regional/local geographic area besides they also cover business, sports and other
relevant information. These newspapers are generally popular because of their nearer to the
home focus of news.

Special Audience Newspapers: Some papers cater to the needs of the specific audience
groups with specialized editorial content such as The Economic Times , Financial Express
cater to the groups in the field of industry, business , finance etc. The editorial content is
focussed on the information and issues related to these aspects.

Different types of Newspaper Advertising

Classified Advertising: refers to the advertising arranged according to a particular section or

head for eg: real estate, job vacancies matrimonial columns etc .

Display Advertising: this type of advertising is seen both in newspapers and magazines and
uses illustrations , photos, headlines and other visual elements besides text

Special Inserts: a variety of special inserts and advertisements appear in newspapers such as
tender notices, public notices, financial reports etc.

Pre printed ads do not appear on the newspaper but are distributed through newspapers.
These ads are printed by the advertiser ad are taken to the newspaper or the newspaper
distributor to be inserted inside the newspaper and delivered to the readers. These may take
the form of brochures or catalogues , leaflet, circulars etc. Free Standing Inserts(FSI) is the
pre printed ad inserted in the newspaper folds that fall out when the reader opens the
newspaper and may attract reader’s immediate attention.

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Advantages of Newspaper Advertising

Penetration: One of the primary advantage offered by newspaper to an advertiser is the

high degree of market coverage or penetration. A high percentage of literate people read
newspapers daily both in urban and rural areas, the level of readership is high among
households with higher income and education level. By making one space buy the advertiser
is able to achieve more extensive coverage and reach different segments of population with
the advertising message. By using daily newspapers, national or local, media planners can
achieve a high level of frequency in media schedule.

Reader’s Involvement: People devote some time everyday to reading newspapers and while
they are exposed to news, entertainment and information their consumption decisions are also
influenced by what they read in advertisements. Consumers use retail ads to determine
product prices and availability. One aspect of newspaper that is helpful to advertiser is the
reader’s knowledge about particular section of the paper for eg: ads of sporting goods
usually appear in the sports section, local retailer often advertise on the city supplements of
the newspaper.

Flexibility: Unlike television , newspaper offers considerable flexibility in terms of accepting

and running the advertisements. Most newspaper accepts ads allowing a closing time of 24
hours before the publication. Advertisers take advantage of this flexibility in responding to
current market conditions and reaching customers with timely messages.

Creativity: Use of newspaper allow advertisers to use creative options as the ads can be
produced and run in different sizes, shapes or formats. External peripherals are also used to
make the advertisement more creative and attractive.

Geographic and language selectivity: Advertiser can take the advantage of newspapers to
reach selected geographical markets. They can also select newspapers published in several
languages , this allows them greater flexibility in terms of reaching specific market areas by
using single or combination f newspapers.

Relatively low cost: in comparison to other media the relative cost of making newspaper ad
as well as cost of getting it printed is low. Also because of the extensive penetration the cost
per reach of the target audience is also very low.

Limitations of Newspaper Advertising

Poor Reproduction Quality: one of the greatest limitation of newspaper as an advertising

medium is their poor reproduction quality. The newsprint is a coarse paper that limit the
quality of the ads produced in the newspaper and is not suited for proper color reproduction,
when a product’s visual appearance is important in the ad , the advertiser will not use
newspaper advertising

Short Life span: Newspaper are not a leisure and pleasure medium and hence people do not
devote much time to reading them , most people read newspaper as soon as they are received
and then dump and throw them away . Newspaper are not read when they are two or three
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days old .Many just skim through newspaper and this increases the possibility of missing the
ad or not paying attention to most ads.

Clutter: Like most other media , newspaper also suffer from advertising clutter . An average
newspaper contain many advertisements that compete for consumer’s attention and interest .
It is not unusual to see more than two ads of different brands of the same product category in
the same issue. To make the ad stand out and have better chance of attracting attention ,
advertiser have the costly option of using colors buying larger ad space.

Limited selectivity: Newspaper can offer geographic selectivity but beyond this they are not
selective medium in terms of demographics and lifestyle characteristics . Most newspaper
have wide circulation and reach among different customer groups making it difficult for
advertiser to concentrate on any specifically defined target segment.

Magazines

Magazines are the most specialised of all advertising medium. Numerous magazines are
targeted towards specific target audience for eg: magazines like India today , Reader’s
digest, outlook cater to the general interest. Femina, Women’s Era are women lifestyle
magazine. Auto India, Competition Success Review cater to the special interest target
audience. Availability of wide variety of magazines makes them quite an appealing medium
to a large number of advertisers who specifically want to put forward their advertising
message to a narrowly well defined target audience.

Advantages of Magazine Advertising

Selectivity: Major advantage of magazine as a medium is the selectivity or their ability to

reach to specific target audience. Usually magazines are published for audience with special
interest . Other than interest based selectivity magazines also offer demographic selectivity
and can reach specific targets segments because of their editorial content and focus on well
defined demographic characteristics. For eg: a high percentage of students in the age group if
16-25 read completion success review. Film magazines are read by large number of teenagers
in the age group of 14-19.

Reproduction Quality: from advertiser’s point of view , a highly desirable and valuable
characteristic of magazines is the reproduction quality of the advertisements. Magazines are
generally printed on high quality paper , the printing process used are modern and provide
equally superior reproduction in color. Use of colors in ads are particularly important for
advertisers when the product’s visual elements are important in creating an impact for eg:
Cosmetic products

Creative Flexibility: Advertiser can take great deal of flexibility in terms of the type , size
and placement of advertising material in magazines. There are options of special facilities
that help advertiser in making the ad more noticeable and readable such as gatefolds, bleed
pages , inserts or multiple page advertising.

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Gatefolds is the form of multi page insertion and uses the third page that folds out and give
extra large spread for the advertisement.

Bleed pages, in this the ad extends all the way to the edge of the page without leaving any
margin of white space surrounding the ad. Bleed creates an impression about the ad that it is
larger and produce dramatic effects .

Inserts of different types include return cards, booklets, CD’s, coupons etc

Three dimensional pop up ads are that jumps off the page

Permanence: Another distinctive advantage offered by magazines is their long life span . TV
and radio typically deliver fleeting messages that have a very short life span, the life span of a
newspaper is even less than a day. People generally read magazines over several days and
retain them at their home for reference.

Readers Involvement: People generally purchase magazines for information value

,magazine reading is less hurried and offers an opportunity to examine and ad more
thoroughly . Unlike ads in the broadcast media , magazine ads are non intrusive and readers
can ignore . For ads of expensive, complex or high involvement products , advertising
through magazines can use long and detailed copy to communicate effectively with
consumers.

Services: Some magazines offer an important service facility of “split runs” in which two or
more versions of an ad are printed in the alternate copies of magazine . This is helpful for
advertiser to pre test the comparative ability and effectiveness of two ads in generating the
desired response

Limitations of Magazine Advertising

Long Lead Time: Magazines do not offer spontaneity as newspaper and radio , the lead time
when the advertising material must be submitted and when it will run is sufficiently long. A
magazine advertisement may take four weeks or more to run after the advertiser submits it.
Long lead time means that magazine ads cannot be as timely as with other media and make it
difficult for advertiser to react to current conditions in the market.

High Cost: The cost of ad space in magazine vary according to the size and the type of
audience they reach and the degree of selectivity. Magazines are expensive media on cost
term reach basis

Limited Reach and frequency: Magazines are generally not as effective as other media in
terms of reach and frequency. As magazines are selective they reach specific well defined
target audience, to reach to broad target audience, media planner have to buy space in a
number of magazines. Also a number of magazines are either monthly or fortnightly
publications, therefore the scope of building the frequency is limited.

Competition and Clutter: It is interesting to note that as the success and circulation of
magazine increases, it attracts more advertising. This creates much competition and causes
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clutter. Clutter makes it difficult for advertiser to gain readers attention and involve them into
advertising message.

Radio Advertising

Advantages of radio advertising

Selectivity: radio offers high degree of selectivity through geographic coverage by a large
number of stations and various programme formats. Advertiser can focus their ad messages
towards specific audience who understand different language in different areas which may
not otherwise be possible through other media.

Cost efficiency: The cost of making advertisement for radio is placing the same across
various stations is less as compared to the cost of making and placing the advertisement on
television. The low cost of radio means advertiser can built more reach and frequency into
their media schedule with limited budget.

Flexibility: Among all the media, radio is probably the most flexible as it has short closing
period . Radio commercials can usually be produced in a relatively short time and if required
the ad message can be changed almost just before the broadcast time. The same ad message
may be adjusted in different languages to suit the market conditions.

Mental imagery: Radio advertising use sound and major advantage of this situation is that it
encourages audience to use their imagination in creating images while processing the ad
messages. Radio may reinforce television messages through image transfer, wherein the
images of television commercials are implanted into radio spot . The idea is that when
consumer hear the ad message they connect to the television commercial they had seen , thus
reinforcing its video images.

Geographical Coverage: radio can and does reach almost everywhere in India , even at
those places where there is no television connectivity , people who cannot read and write ,
radio can reach those section as well

Integrated Marketing Opportunities: Radio provides marketers with a variety of integrated

marketing opportunities, Advertisers often use radio stations and personalities to enhance
their involvement with the local market and to gain influence. Retailers often use on site radio
broadcast , combined with special sales promotion to attract customers to their stores and get
them to make a purchase.

Limitations of Radio Advertising

Creative Limitations: the most fundamental problem associated with radio is the lack of
visual element, the radio advertiser cannot show or demonstrate the product or make se of
other visual appeal. A radio commercial like television commercial is short lived and fleeting
messages that does not allow the receiver to control the pace at which it is processed ,
because of these creative limitations many companies tend to ignore radio.

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Clutter: with the increasing intensity of advertising, clutter has become a problem in
advertising vehicle and radio is no exception . Radio stations and programmes carry many
advertising messages and it is becoming increasing difficult for ad messages to attract and
retain audience’s attention.

Audience fragmentation: large number of radio stations create audience fragmentation , the
number of audience tuned in to any particular radio station is quite small . Advertiser who
want to reach broad market through radio with language differences have to buy time on a
number of stations reaching specific geographic area.

Limited Listener Attention : Another problem with radio commercials is that it is difficult
to retain listener’s attention to commercials. Programme switching is frequent among
listeners and they often miss or avoid commercials . Possibilities of distortions in radio
broadcast are high and this irritates the listeners and commercials are missed

Limited Research Data: The research data on radio is limited as compared television,
newspaper and magazines

Television Advertising

Creativity and Impact: The greatest advantage of television is the opportunity it provides
for presenting the advertised message. The interaction of sight, sound and motion offer huge
creative opportunities and make possible dramatic, lifelike representation of products and
services . Television commercials can be used to convey mood or image for the brand as well
as to develop emotional or entertaining appeals. The commercial can effectively
communicate an image or mood associated with the brand. If the nature of the product is such
that demonstration would convey the ad message more effectively, TV is most suitable ad
medium.

Coverage and Cost effectiveness: Advertising on television makes it possible to reach a

large number of audiences regardless of income , age, gender, educational level , most people
at least watch something on television. Advertisers selling products and services appealing to
broad target audience find that television has become particularly popular medium and can
reach mass markets in cost effective manner, as the cost per reach comes out be relatively
low on this medium.

Selection and Flexibility: Television offers selectivity through regional coverage, broadcast
time and programme content. Advertisers can refine their target audience coverage by
appealing to groups with specific interests such as sports, music, news etc. As there are a
number of channels and a number of programmes cantered on one or the other interest
matter.

Captivity and Attention: Television is intrusive in that commercials impose themselves on

viewers as they watch their favourite programme. Unless a special effort is made to avoid the
commercials, we are exposed to most of the commercials.

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Use of Appeals and Demonstration : Advertisers ca use various appeals in various markets
as considered appropriate through television medium. The impact of emotional appeal can be
highlighted through television in the most impressive manner. Also television is an excellent
medium for demonstrating the product or service .

Least Effort: In television commercials use of both audio and video is made, it calls for least
effort on the part of the target audience to get the message across. As oppose to the print
media , people have to read and understand the message.

Limitations of Television Advertising

Though television is unsurpassed from the creative perspective, the medium has several
disadvantages these are:

Cost: Despite the efficiency of TV in reaching large audience , it is an expensive medium to

advertise The high cost of TV commercials not only emanate from the high cost of buying
media space but also from the cost of producing a quality commercial.

Lack of Selectivity: However television provide selectivity is terms of targeting audiences

on the basis of their interest such as programme time , broadcast time etc but for advertisers
who are interested in delivering their message to a very specific, narrowly defined , small
target audience, television often leads to media over exposure or waste coverage , thus
reducing its cost effectiveness. Audience selectivity is improving still the medium does not
offer as much selectivity as radio, magazine ,newspaper or direct mail.

Fleeting message: Most television commercials last for 30 seconds or less, commercials are
becoming shorter and shorter as the demand for the limited broadcast time. Increasing media
costs are also forcing the advertisers to consider shorter commercials. Nothing tangible is left
for the audience to examine in such a short duration .

Clutter: The problem of fleeting messages and shorter commercials are compounded by the
fact that advertiser’s message is only one of many spots and other non programming material
seen during the commercial break , so it may have trouble being noticed. One of the
advertiser’s biggest concern with TV advertising is the potential decline in the effectiveness
because of such clutter.

Limited Viewers attention: Buying time on television does not guarantee exposure , it only
offers opportunity to communicate to communicate the ad message to a larger number of
audience. There is increasing evidence that the size of viewing audience shrinks during the
commercial break, viewers move away from the TV sets for one or the other reason to avoid
commercials. With the increase in the number of commercials, getting audience pay attention
is becoming increasingly challenging. Audience members find themselves armed with remote
control that makes zipping and zapping convenient

Zipping refers to fast forwarding the commercials as they appear when viewing the
previously recorded movie or some other programme. Zapping refers to changing channels
to avoid commercials.
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Some advertisers believe that the ultimate way to zip zap proof commercials is to produce
creative advertising messages that will attract and hold advertiser’s attention , however as the
number of channels and the television programmes increases, this problem is likely to
continue also people primarily watch television because of its entertainment value and not
because they wish to be bombarded by commercials.

Distrust and Negative evaluation: many consider television commercials to be intrusive and
consumers are defenceless against the bombardment of these ads. TV viewers are in no
position to exercise any control on the transmission of message and what becomes visible on
their screens . Many dislike TV advertising when they believe it is offensive, uninformative
or when they do not like its content or presentation. Many people generally distrust television
commercials more than any other forms of advertising.

Product placements in movies and television shows

An increasing number of companies pay to have their products used in the movies, music
videos or television shows. The merits and demerits of this medium of advertising are:

Advantages

Exposure : a large number of people watch movies , this form of exposure is not subject to
zipping and zapping(at least not in the theatre) High exposure numbers are also offered for
TV tie-ins

Frequency: Depending on how the product is used in the movie or program, there may be
ample opportunity for repeated exposure

Recall: It has been observed that chance of products being noticed are always high in film
advertising, also the audience’s ability to recall the product shown the movie is also very
high.

Acceptance: It has been viewed that in general audience accept the product placements in the
movies and evaluate them positively.

Limitations

High Absolute Cost: the absolute cost of placing a product in films or television is very
high.

Time of Exposure: while the products will be exposed to the audience, there is no guarantee
that the viewers will notice the product.

Limited Appeal: The appeal that can be made in this media form is limited. There is little or
no potential for discussing the product benefits or providing detailed information. The
endorsement of the product is indirect and the flexibility for product demonstration is subject
to its use in the movies.

Lack of control: The advertiser has no say over when and how the product will be shown.

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 Negative placements: some products may appear in the movie scenes that are disliked by
the audience or create unfavourable impression.

Advertising in Movie Theatres

Commercials shown before the film and previews, during interval ads in theatre lobbies, at
kiosk etc are categorised under this head.

Advantages of Movie theatre Advertising

Exposure : As a source of entertainment , movies are quite popular as the number of people
visiting the movie theatre are substantial , so it is possible to carry the message across lots of
people .

Mood of the audience: people deliberately plan to go to the movie theatres , their pre movie
mood is positive and this mood may lead to carry over effect on the advertised product

Selectivity: Advertiser can be selective in terms of region, town and type of cinema halls and
could reach to the select audience

Lack of clutter: the biggest advantage of advertising in movie theatre is the limited number
of ads , this eliminates the chance of clutter

Recall: It is observed that people recall the ads which they watch on movie theatre better than
the ads that they watch on their television sets

Cost: in term of both the absolute cost and the relative cost per exposure, advertising in
movie theatre is cost effective

Limitations of Movie Theatre Advertising

Irritation: Most people do not like to see the ads in this media, audience irritation can lead to
development of negative feelings towards the advertised product

Out of home Advertising

Out of home advertising encompasses many advertising forms ; most popular amongst
includes outdoor(billboards and signs) advertising and transit (both inside and outside)
advertising

Outdoor Advertising

Outdoor advertising is the oldest medium of advertising. It is usually used as a supportive

medium by most national advertisers and includes billboards, hoardings , posters, wall
paintings etc. Outdoor advertising can generate considerable reach and frequency levels at a
fraction of the cost of the mainstream media.

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Advantages of Outdoor Advertising

Wide coverage of local market: A broad base of exposure is possible in local markets
through this medium, with both day and night presence

Frequency: Purchase cycles of outdoor spaces are usually for 30 days period, consumers are
generally exposed a number of times, resulting in high level of frequency

Geographic flexibility: Outdoor advertising is highly flexible and can be placed almost
anywhere the law permits. It can be placed near stores, on buildings along city roads etc. and
can conveniently cover local or regional markets, the message can be altered to address to the
audience preference with their choice of language.

Cost Efficiency: Outdoor advertisements are very cost efficient as compared to other media

Effectiveness: Outdoor advertising often lead to increased sales , particularly when combined
with other promotional techniques.

Creativity: By combining color, art and short copy outdoor advertising can quickly captivate
the viewer’s attention .

Limitations of Outdoor Advertising

Waste Coverage: While it is possible to reach specific audiences, generally the outdoor
advertising results in high level waste coverage because not everyone driving or walking by
the billboard is part of the intended target audience.

Message Wear Out: Because of the high frequency of exposures , outdoor advertising can
lead to quick wear out effects.

Limited Message Capabilities: because of the speed with which most people pass by
outdoor ads, exposure time is short so the messages are limited to select few words, phrases
or illustrations. Lengthy and detailed messages using different appeals is not possible through
this medium.

Measurement problem: one of the most difficult problem of outdoor advertising is

measurement of reach, frequency and other effects.

Legal Constraints: About placement of bill boards and hoardings, where these will be
placed , how many banners at a intersection etc are to be approved by the local authorities.

Limited effectiveness: A number of uncontrollable factors may lessen the effectiveness of

outdoor ads such as traffic signals , trees, structures may distract the viewers.

Public Criticism: Various public interests groups and environmental groups criticise outdoor
bill boards and posters claiming that they are an eyesore, nuisance and often distract people
causing road accidents.

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Transit Advertising

Advantages of Transit advertising

Exposure Duration: long length of exposure to an ad is one of the major advantage of

transit advertising

Exposure Frequency: Those who commute to their place of work and back home
everyday are exposed to same ads reputedly, this increases the frequency of exposure of ads.

Geographic selectivity: advertiser can choose geographical areas to reach to select segment ,
this is particularly useful to local advertisers who can buy locations in certain nearby areas or
transit options.

Low Cost: both the absolute cost and the relative cost of placing advertisements in this
medium is very less as compared to other media.

Limitations of Transit Advertising

Waste Coverage : while geographic selectivity may be an advantage , not everyone who
rides a transportation vehicle is a potential customer and may lead to waste coverage.

Image factor: To many advertiser, transit advertising does not carry the image they would
like to represent their product or services.

Mood of the audience: sitting, standing in a crowded transit medium may not be conducive
to reading advertising .

Creative limitations: the message on the outside of vehicle is fleeting and only short copy
points are appropriate that limit any creativity.

Factors affecting the choice of a particular media

Nature of the product: The type of product to be advertised is the main determinant of the
advertising medium. Consumer products like soap, tooth paste (FMCG products) that are
meant for masses should be advertised through newspaper, radio , outdoor displays etc, On
the other hand the industrial goods like machinery, raw material etc. should be advertised
through specialised trade , technical and professional journals. The general character of the
product may also strongly influence the type of media used for eg: Racer bikes are usually
advertised in select cars and bike magazines because it ultimately reaches to the select target
market also the impact of advertisement insertion in such magazine is very high also readers
are also interested in the content of such advertisements therefore reader’s involvement is
also very high.

Nature and Size of the Market: Market characteristics such as geographical location, size of
the population, purchasing power have an important bearing on the advertising media.
Advertising in local markets can be done through local newspapers, outdoor display.
Newspapers, Television or internet is appropriate for advertising in national and international

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markets. In case of limited and easily identified market specialised magazines may be
appropriate choice. Characteristics of the market in terms of age, education etc.(demographic
profile) are also very important while selecting appropriate medium or media vehicle.
Objectives of Advertising: When the objective is to create mass awareness for the newly
introduce product a combination of various media may be used however extensive usage of
Television , newspaper, radio. When the objective is to stimulate purchase amongst the target
market who are already aware about you or offering in such a situation trials may be induced
through free samples wherein the use of print medium is more appropriate.
Type of Audience: The type of people for whom the message is addressed is also an
important consideration. Illiterate people can be better approached through radio, television
or movies . Newspaper, magazines and internet can be used to convey message to the
educated customers. The type of media vehicle to be selected depends upon the language or
content in respect to the nature of audience.
Type of Message: Choice of advertising media also depends upon the length of the
advertised message. Magazines are better choice for colourful , newspapers radio or TV are
more appropriate when newsworthiness and timeliness are an integral part of the message for
eg: when beverage maker pepsi and coke were accused for having pesticides content in their
product and the report was covered by almost all the media forms(print and broadcast)
immediate clarification was required as the negative attitude was seem being developed
against the products both the cola major came up with their detailed explanations in all the
newspapers citing there response to the accusation and assuring the customers hoe safe it is to
enjoy their drinks, the choice of media selected was newspaper because such accusation
required an immediate response and the length f the message was also in detail because of
the type of clarification sough therefore print medium came as preferred choice.
Circulation of Media: How many people or households can be covered by a particular
medium is another factor to be considered. Not just the coverage of the media but qualitative
aspects such as editorial fit, prestige , audience involvement etc should also be considered.
Cost of Media : The cost of advertising medium both the absolute cost of advertising and the
relative cost (absolute amount paid divided by the number of customers covered) should be
considered, analysed and evaluated across various medium and media vehicles so as to
determine the best way to reach the target audience at the least cost.
Advertising Budget: The advertising budget puts a limiting factor on the amount available
to be spent on across different media . The advertiser must choose a medium in which he can
get sufficient insertions with the funds available
Media used by competitors: The type of media used by the competitors also influence the
choice of medium of advertisement For eg: Designer Apparels are usually advertised through
select magazines or certain newspaper supplements that carry the lifestyle and the fashion
segment, people looking for designer clothes become habitual of seeing such advertisement
in these section , in order to face competition it becomes necessary to advertise in the popular
media.

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 LESSON 5
CREATIVITY AND ADVERTISING

What Is Creativity?
Advertising is called as a creative profession, ads are often called creative, people who develop
and create commercials are known as creative people and advertising agencies gain reputation
for their creativity.
Perspectives on what constitutes creativity in advertising differ. Artists when they create a new
painting or poets when they pen a new verse are often giving expressions to their innermost
thoughts which may be based on perceptions or fantasies. The outcome may be realistic or
surreal. However when creativity is referred to in context of advertising, it is purposive that is the
creative input is expected to achieve the desired response as delineated in the marketing
objective.

In coming up with dimensions along which define creativity, we drew on social and educational
psychology literature that defines creativity as divergent thinking—that is, the ability to find
fresh, unique and appropriate ideas that can be used as solutions to a communication
problem. Creativity is about giving birth to something that did not exist before. It is the
application of past experiences or ideas in a novel and unexpected way. It is being innovative,
original and different.
Creativity requires qualities like imagination, expressiveness, openness to change. These skills
may be genetic, acquired or situational. Stephen Baker in his book “Systematic Approach to
Advertising Creativity” talked about the “pyramid principle”, the pyramid is divided into three
equivalent parts (figure a). The first part, the base of the pyramid represents initiation of the
creative process – the gathering of information , the second part represent analysis that would
cover a number of activities, the third or the upper part is culmination of all efforts of the brain-
when an idea is born. According to Baker, fortunately the human mind is eminently flexible and
can stretch, dissect, combine, compare, backtrack, juggle the thought components with amazing
flexibility. When it comes to reasoning the brain surpasses even the smartest computers which
admittedly can ingest several billion bits of information but unless told what to do with all that
fodder, produce nothing of value

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 An
Idea is
born
Facts P I Media
Analysis
Audience
Information
Gathering

Figure-a) The Pyramid Principle Figure-b) Bernstein’s model of

Creative process
David Bernstein’s model of creative process is like a double ended funnel with a wide mouth
into which all facts and figures are poured(Figure b), they are eventually concentrated into the
“proposition or the offer” to be made to the reader, listener, viewer that is the target customer
This according to Bernstein, goes into the narrow central tube and emerges as creative idea. The
proposition according to the author is arrived at through reason and P becomes I through
imagination. Thus idea become an ad largely as a result of craft.
The creative process model developed by English sociologist Graham Wallas, outlined the four
stages of creativity namely:
 Preparation: Gathering back ground information needed to solve the problem through
research and study
 Incubation: Getting away and letting ideas develop
 Illumination: Seeing the solution
 Verification: Refining and polishing the idea, validating if it is an appropriate solution

Also advertising creativity is not the exclusive domain of those who work on the creative side of
the advertising . The nature of business requires creative thinking from everyone involved in the
promotional planning process. Agency people such as account executives, media planners,
researchers as well as those on the client side such as marketing and brand managers must all
seek creative solutions to the problems encountered in planning, developing and executing an ad
campaign.
Idea Generation
How are ideas generated? Is the generation of an idea an individual activity or the outcome of
teamwork? The views amongst various writers in this regard vary but for all writers, the idea
stage is invariably the most challenging and at the same time most rewarding. According to
Bovee and Arens “it is the long, tedious and difficult task of assembling all pertinent
information, analyzing the problem and searching for some verbal or visual concept of how to
communicate what needs to be said. It means establishing the mental picture of the ad,
commercial or campaign before any copy is written or the art work begun.”
Analyst differentiate between Analytical Thinking and Creative Thinking, this can be elaborated
through figure c)

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Figure c) Analytical and Creative Thinking
Analytical Creative
Logic Imagination
Unique Answers
Many Possible

Answers

Convergent Divergent
Vertical Lateral

Creative
Analytical
Thinking
Thinking

Brainstorming
Brainstorming is the process of coming up with the creative idea in a group. This concept was
introduced in 1989 by Alex Osborn, an advertising professional. The technique which is widely
used by the corporate sector, the government and the armed forces. Brainstorming is a
conference technique by which group attempts to find a solution for a specific problem by
amassing all the ideas spontaneously by its members. It is technique where participants put social
inhibition and rules aside and temporarily suspend their judgement with the aim of generating
maximum new ideas.
According to David Kech, brainstorming in which people work on a problem is based on four
basic rules:
 No ideas are criticised
 Freewheeling is encouraged
 Quantity is preferred that is more the ideas greater the probability of finding the “big
idea”
 “Cross fertilisation” or hitch hiking is encouraged; participants are encouraged to
improve the ideas of others to form new and complex one
Following are some of the characteristics of brainstorming
Unpredictable: One does not know, where the discussion is going to lead

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Playful: Brainstorming is a fun process; one can let creativity run wild without any checks and
control
Collaborative: It is a group process, wherein participants discuss, argue
Surprising: Since there are no bounds within which one play, it can unfold many surprising
solutions
Challenging: It taxes the brain to come up with the innovative, imaginative and different
solutions
Unstructured: It is a random process in which ideas are not discussed in a structured fashion
Rapid: one after the other the ideas keep on flowing freely
Spontaneous: In this process there is no premeditation, ideas are not held back
Imaginative: Not all ideas need to have rational edge; creativity springs from the irrational and
the unthinkable

Preparing for Brainstorming

Although brainstorming is a group activity the preparation can begin individually before the
group session’s .It is important to identify the need for brainstorming, it must serve the purpose.
The person in charge of conducting the brainstorming session must research, observe and
explore, in other words pre thinking is imperative. Many advertising personnel keep a file,
portfolio or soft board with clippings interesting quotes, product description, photographs etc.
The objective of this exercise is not to copy other’s creative idea but to use these ideas as spring
board for new ideas.
When the process begins the first pre-empt is not to think in terms of advertising but in terms of
ideas. Environment conducive for the free flow of ideas, collaboration and comfort should be
spawn.
While there is no standard outlined process of coming up with the ideas, following are some
variables that can be considered:
Competitor’s Advertising Appeal: Often competition can be a source of creative ideas that can
be used at least at a tactical level if not at strategic level. “Coke, the official drink” was the was
the Coca – Cola’s slogan for Wills Cricket World Cup 1996 , Pepsi rebuffed it as “Nothing
official about it. Enjoy Pepsi” Nestle’s Pole “The mint with the hole” was countered by Mint –O
as “ All mint no hole”

Target Audience: The target audience profile is not mere a number or a statistics , such
demographic profiling is valuable input in designing the advertising. Hero Honda brand of
scooty- pleasure targeted young girls with the tagline why should boys have all the fun, TVS
Scooty also targeted young girls with the tagline – Go Babelicious

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Product name and definition: Create new names or definitions for the product, tell something
about the product, intrigue the audience. Livon call itself as silky potion rather than as “hair
conditioner” Dove is not a soap but moisturising cream and a beauty bar.

Current affairs: Current events quickly occupy people’s mind and catch attention. Amul is
forerunner in such type of ads, it always kept its promotion up to date with current events, with
this approach Amul, always keeps the communication fresh with the new and challenging ads.

Strategy: Strategy tells about what to do, it speaks volumes about the vision and mission of the
organisation ,its customers , the message to be conveyed etc. For eg: Tata tea launched Jago Re
campaign, to raise awareness for specific causes like voting driving, anti corruption.

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Personification: How would the product be if it was a living person? For eg: Pillsbury Atta
personified the flour in the form of Pillsbury Doughboy, who is soft and white like dough and
dressed like a chef. Yamaha India recently launched a maiden mascot to connect with children
and parents to promote road safety. The Yamaha Children Safety Program (YCSP) is a first of its
kind social initiative by the company to educate and influence both parents and children about
vital road safety measures. The Mascot has been developed to arouse interest among kids about
the program. Fido Dido, cartoon character was used to position 7 Up as cool drink for
youngsters.

Analogy: An analogy is the comparison of two unrelated things though which is derived that
something is like something else in some respects but not in others. Analogies can be arrived at
by breaking down the product into various characteristics, components, functions, uses, effects,
benefits etc. And then creating a list of items may be people, situations, objects, processes,
actions etc that are like these things in some way. For eg: Garnier Anti wrinkle cream compares
wrinkle with the loose skin of the bulldog ‘s face. Mahindra XUV convey the message that
Mahindra XUV 5oo is really the beast by comparing it with cheetah.

Creative Execution
The effect of the message in governed by not only what is said but also by how it is said. The
advertiser now has to turn that idea into the real ad that captures the audience’s attention and
interest.
Good creative strategy and execution can often be central to determining the success of a product
or reversing the fortunes of the struggling brand, conversely an advertising campaign that is
poorly conceived or executed is a liability

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Advertising Appeal refers to the approach used to attract the attention of consumer, or to
influence the feelings towards the product, service or cause. Appeal can be said to form the
underlying content of the advertisement, it can be viewed as something that moves people ,
speaks of their needs or wants and excites there interest
Numerous different appeals can be used as the basis for advertising message . At the broadest
level these approaches are generally broken into two categories; Rational or Informational
Appeals and Emotional Appeals.

Rational/ Informational Appeal

Rational appeal focus on the consumer’s need, practical or functional utility of the product. The
content of these messages emphasize facts, logic, technical and analytical aspects of the
advertising message. Rational based appeals tend to be informative and advertiser using them
generally attempt to convince the consumers that their product or service have specific attributes
or would provide certain benefits that that satisfy their requirements.
Several types of advertising appeals fall under the category of rational appeals among them
features, competitive advantage, favourable price, news, product/service popularity appeal.
Feature Appeal focus on the dominant traits of the product or service. Technical and high
involvement product often uses this type of advertising appeal. These ads tend to be highly
informative and present the customer with a number of important attributes or features that will
lead to a favourable attitude towards purchasing the product featured. for eg: Toyata’s Prius is
the world’s first hybrid car. In one of an ad Maruti highlighted the new features in the New
Wagon R and also make a comparison with the old variant. Colgate Active has salt content that
fights germs.

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Competitive Advantage Appeal where advertiser makes direct or indirect comparison to
another brands and usually claims brand’s superiority on one or more attributes. Epson printer
make comparison with other printers while claiming its superiority as the lowest cost per print
page, Most of the automobile advertisements in print medium claim their superiority by
comparing with other automobiles in the segment

Product/ Serve Popularity Appeal: stresses the popularity of the product or the service by
claiming he number of customers who use the brands, the number who have switched to it, the
number of experts who recommend it. For eg: Honda City claims how many happy customers
they have worldwide
Olay Campaign- Olay Total Effects, the ad highlighted how women were urged to take the Olay
challenge and how it made a difference to their skin

News Appeal: are those in which some type of news or announcement about the product, service
or organisation dominates the ad. This type of appeal can be used for new product or service or
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to inform consumers about significant modifications or improvements. For eg: Quaker Oats are
now available in different flavour with real fruits and vegetables. Maggi has introduced new Oats
Maggi.

Favorable price appeal: makes price offer as the dominant point of the message. It is often used
by retailers to announce sales, special offers or low every day price . For g: Big Bazar, retail
chain is positioned as the retailer offering lowest price to its customers, on certain occasions of
national importance it announce special offers. Online E-tailer Flipkart recently announced
special discounts for the upcoming festival season and has garner huge response.

Emotional Appeal
Emotional appeals relate to the customer’s social and or psychological needs of purchasing a
product or service. Many consumer motives for purchase decision are emotional and their
feelings towards the brand can be more important the features or attributes. These appeals are
based on the psychological states or feelings directed to the self such as pleasure an well as those
with more social orientation such as status or recognition. For eg: Johnsons and Johnsons
highlights the motherly concern and bonding between the mother and the child, though the
advertisements also highlight the features of the product but it is essentially the motherly love
that is highlighted in its advertisements. Emotional appeals can be used in many ways to depict
creative strategy. Advertisers depict characters on the ad or commercials experiencing some
emotional or transformational benefit or outcome from using the product or service. This
approach is referred to as economic integration. These appeals are believed to put audience in a
favourable frame of mind. For eg: Google’s advertisement invoking a searing and traumatic
period of partition and “reunion” portray of two friends struck cultural chord and how search
engine enable to track down the childhood friend.
Emotional appeals are used to evoke positive feelings that may be transferred to the brand.

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Combination of rational and emotional appeals
In most purchase situations, consumer decisions are based on combination of both rational and
emotional motives , only the degree of each varies depending upon the product or service
category and the buying situation. Advertising professor, Michael Ray and Mc Cann Erickson
Worldwide in conjunction developed a research technique known as Emotional Bonding(figure
d) . This technique evaluates how consumers feel about the brands and the nature of emotional
rapport they have with the brand compared to the ideal emotional state they associate with the
product category.
The basic concept of emotional bonding is that consumers develop three level of relationship
with the brand . The most basic relationship indicates how consumers think about the brand in
respect of the product benefits , this primarily occur as a result of rational learning process and
can be measured by how well advertising communicates the product information. Consumers at
this stage are not very brand loyal and brand switching is common. At the next stage the
consumer assigns a personality to a brand , the consumer’s judgement of the brand has now
moved beyond its attributes , in most cases consumers judge the personality of the brand based
on the assessment cues found in advertising. The strongest relationship that develops between
the brand and the consumer is based on the feelings or emotional attachment to the brand.
Consumers develop emotional bonds with certain brands which result in positive psychological
movement towards them

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 Emotions

Personality

Product attributes/benefits

Figure d) Level of relationships with brands

Advertising Execution
Once advertising appeal that will be used as the basis of advertising message has been
determined , the creative team begins its execution. Creative Execution is the way advertising
appeal is presented. While it is important for an ad to have a meaningful appeal or message to
communicate to the consumer, the manner in which the ad is executed is also important,
Advertising execution is the way of presentation of the desired message or appeal to the target
audience. There are many ways in which an advertising message can be presented:
 Straight sell/ factual message
 Testimonial
 Comparison
 Animation
 Humor
 Scientific or technical evidence
 Slice of life
 Demonstration
 Fantasy
 Dramatization
 Combination
Straight sell/ factual message: This type of presents a straight forward presentation of
information concerning the product or service. This execution style often use rational or
informative appeals. The main focus is on the product or service and the ad attempts to
communicate specific attributes or benefits to the target audience. For eg:

Testimonial: to present the advertisement message, some advertisers prefer to use a satisfied
customer who praises the product or service based on the personal experience of its usage. Such

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an ad execution can use well known personalities or satisfied customers. This style of execution
is particularly effective when target audience can identify with the person delivering such
testimonial For eg: Dove brand of soap, shampoo, oil have used the testimonials from the
satisfied customers , who have used its product and testifies it is worth it and it actually works .
Olay, pentene are other classic examples in this category.

Comparison: Comparison (direct or indirect) communicates a brand’s particular advantage over

its competitors. Advertiser also use this execution approach to position a new, less known brand
by comparing it with the industry leader . For eg: Pepodent claim that it is the better than colgate
in terms of germ attack . Most of the advertisements of automobiles especially cars in print
medium, often highlight the comparison amongst the competing brands in the same segment to
claim their superiority.

Animation: Cartoons, puppet characters and demonstration with computer generated graphics
are used to communicate ad messages for eg: Kit kat recently started putting forward its
advertising message through this execution style.

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Humor: Humor has been a popular technique in ad execution and it makes the commercial more
interesting and entertaining. Humor evokes feelings of amusements and pleasure and favourably
affect the information processing by audience. For eg: Pidilite’s Fevicol have mostly approached
humorous execution in its advertising style

Scientific or technical evidence: Technical information, scientific evidence and endorsements

by well known agencies or scientific bodies to support the product or service claims . For eg: It is
the Indian Dental Association that claim the Colgate is the number one recommended toothpaste
and is also used by dentists in India.

Slice of life : this execution style is based on the problem- solution approach . This ad type
portrays a problem and conflict the consumer might face in their daily lives and how the
advertiser’s product can solve their problem. For eg: Head and shoulders, how it help fight the
problem of dandruff and hair fall. How Clean and Clear face wash help fight skin problems

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 \

Demonstration : the product may be demonstrated in actual use or it may be shown in some sort
of staged demonstration with the explicit purpose of highlighting the key advantage of the
product or service. For eg: Vanish stain removal, how the product is to be used so as to remove
all stains on clothes was highlighted in its advertisements.

Fantasy : This approach is based on the need of the consumer to find emotional escape to offset
daily routine. Certain cosmetics ads often use fantasy appeal to create pleasant images and
symbols consumers associate with the product or service . Fantasy execution is well suited for
television medium.

Dramatization : Another execution technique particularly suitable for television is

dramatization, where focus is on telling a short story with the product or service, it is some what
like slice of life execution – that relies on the problem solution approach but it use more
excitement and suspense in telling the story

Combination: In actual practice, most commercials use combination of various execution

techniques to present the advertising message.

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 LESSON 6
CREATIVE STRATEGY

Creating Print Advertising

The key format elements in the print advertising are: Headlines, Sub-Heads, Body-Copy,
Slogans, Seals , logos, signatures, visual elements and layout.
Headline
The headline contains the words in the leading position of the advertisements. These are the
words that are read first and are positioned with the intent to draw the reader’s attention.
The fundamental function of the headline is to attract the reader’s attention, get them
interested and
lead them to the entire ad message, it must give the reader good reason to read the copy portion
of the ad, to do this the headline must put forth the main theme , appeal or proposition of the ad
in few words. Some print ads the body copy is totally absent, the headline along with illustration
must communicate the entire ad message. Headlines are usually set in larger type and are often
set apart from the body copy or the text portion of the ad to give them prominence.
There is no formula that can recommend how a good headline should be, however the
following factors need to be considered:
• The headline should be short, simple words
• It should include an invitation to the prospect, primary product or service benefits,
name of the brand and an interest provoking idea to induce the readers to the rest
of the advertisement
• It should furnish enough information so that consumers who read only the
headline should learn something about the product or service
Types of Headlines: There are numerous headlines possibilities. The type used depends upon
several factors such as creative strategy, other components of the ad etc. Headlines can
be categorized as direct and indirect
Direct Headlines are straightforward and informative in terms of the message they present.
Common type of direct headlines include those offering specific benefits , making promise
or announcing a reason the reader should be interested in the product or service.
Benefit Headlines: promise the prospect some rewarding experience with the product or service.
Such headlines put forth the product’s most important benefit.
News/Information Headline: announces news or promises information
Indirect Headline: are not straightforward about identifying the product or service or getting to
the point. But they are often more effective in attracting reader’s attention and interest because
they provoke curiosity and lure readers into the body copy to learn an answer or to get
an explanation. These type of headlines often use questions, provocations, how to statements
or challenges .
Subheads: While many ads have only one headline , but one or more secondary heads or
subheads are also common. Subhead is additional smaller headline that appear mostly above or
below the headline. When the subhead is above the headline it is referred to as kicker or overline.
Subheads sometimes appear in the body copy. Subheads are usually smaller than the headline
and may appear in bold or italic type. Subheads often enhance the readability by highlighting key
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sales points and support that content presented in the headlines. Subheads are usually longer than
the headline and serve as stepping stone from headline to the body copy and their
content reinforces the headline and he advertising slogan or theme.
Body Copy: The main text portion of the print ad is called body copy or sometimes just
copy. The body copy contains the complete story and is the logical continuation of the
headlines and the subheads . It covers the attributes , benefits and the utility of the product
or service but getting the audience to read the body copy is often difficult. The body copy must
belong enough
to accommodate the complete message and short enough to retain the reader’s interest. Body
copy can be written to go along with the various types of creative appeals and executions
like comparison, demonstration, humor etc. . Copywriters choose a copy style that is appropriate
for the type of appeal being used and effective for executing the creative strategy
and
communicating the advertiser’s message to the target audience.
Visual Elements: The illustration or the visual element is often the dominant part of the print ad
and plays an important role in determining its effectiveness. In some ads the visual portion of the
is essentially the message itself. It must attract the attention, communicate the idea or
message and works in a synergistic fashion with the headline and body copy to produce an
effective
message. The visuals capture a mood and evoke a feeling , a context for consumer’s perception
of the product or service. Many decisions need to be made in this regard i.e. what identification
mark need should be included: brand name, company or trade name, trademarks, logos, etc.
Seals, Logos and Signatures: A seal is awarded when a product meets standards established by
a particular agency. Such as ISO 9001 or Energy Star etc.
Logos and signatures are special designs of the advertiser’s brand /product name or advertiser’s
company. Logo is distinctive mark that identifies a brand or the company.
Signature is the name of the company or brand , they appear in all their company ads , and are
immediately recognised for eg: Apple, Tata, Intel etc.
Essentially the purpose of the visual element is to:

 Capture the reader’s attention

 Clarify claims made by the advertising copy
 Identify subject of the advertisement
 Show the product in actual use situation
 Convince the readers about copy claims
 Arouse the reader’s interest
 Emphasize on brand’s unique features
 Create a positive impression of the brand or advertiser
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  Qualify readers by stopping those who are legitimate prospects

Layout: A layout is an orderly arrangement of headline, subheads, body copy , slogan , seal,
logo, signature and the visual element in an advertisement. It shows where each component of
the ad will be placed and gives guidelines to the people working on the ad creation. Copywriters
learn how much space is available to work and how much copy should be written.

During the creative phase the designer use thumbnails, roughs, dummies and comprehensives.

A thumbnail is a very small sketch, rough and rapidly created drawing to visualise the layout
approach without any details. Blocks of lines indicate the text position, and boxes show the place
of the visual. The best sketch resulting from this exercise is then developed further.

The artists draw the actual size of the advertisement in a Rough Layout.

Comprehensive layout is a highly refined exact copy of the finished ad . It is quite detailed with
photos, font style ad size etc. Generally the comprehensive is the typeset on computers.

A dummy is prepared to get the look and the feel of the brochure and the point of purchase
material. All the elements of the dummy are hand assembled, mounted on sturdy paper, and then
cut and folded to the size to appear exactly like the finished product.

Examples of few types of layout:

Frame: The copy is surrounded by the visual or the visual may be surrounded by the copy

Picture Window: This is the most common layout format. It has one single dominant visual that
occupies about sixty or seventy percent of the area. The headline and copy may appear above or
below the window.

Circus: this type of layout combines lots of elements to bring the ad alive and make it interesting
by art, type or color. It is created deliberately to create a busy, jumbled image.

Band: Series of elements arranged in one column with usually one major element outside this
band.

Design Principles

Ads must be designed to capture the reader’s attention immediately as the advertiser has only a
second or two to capture the reader’s attention. Good design should not only commands attention
but also holds it and communicates as much information as possible in the shortest amount of
time and makes the message easier to understand. The basic design could be:

All creative advertising should have a unified design. The complete layout (copy, headline,
subheads etc) should appear as a single unified composition.

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The ad should be arranged in an orderly manner so that the consumers can read it from left to
right from top to bottom. Arrangement of elements in a sequence helps direct the reader’s eye in
a structured position.

The division of space amongst the layout elements, should accentuate and focus on the element
or group so that they stand out among the rest. The ad designer should decide whether to put
more stress on illustration, headline or logo etc.

Using Color

Color is another element of the layout and can be used with impact. Print advertising has the
potential to contend with the television . Print has the ability to generate astonishing, eye
catching colors in the advertisement. Use of color suits many product categories such as food
items, fashion items etc.

 Colors adds attention capturing value to the advertisement

 Colors can help in imparting emphasis on important elements of the ad
 Colors can add a sense of realism and atmosphere
 Colors can help easy identification of brand name, package and trademark
 Colors imparts a feeling of prestige and quality to the advertisement

Creating Television Commercials

Television is a powerful advertising medium combining the unique ability of sight, sound and
motion. With high levels of advertising clutter in the medium, producing a commercial that
communicate effectively is complex . Television can be used to produce a variety of appeals and
executions, which is not possible in the print medium. However, the viewers cannot control the
pace of the ad message as in the case with the print medium.

There are two basic components of the TC commercials the audio and the video. The video
consist of the sight or the visual part and the audio part includes the spoken words ,music or
other sounds to communicate the ad message. These two components needs to used in
synergistic manner to produce the desired impact.

Video Element: The visual portion generally dominates the commercial and include all those
elements that are seen on the television screen. It is important that these visual elements are
successful in attracting the viewer’s attention and communicate the message or the idea . It may
be required to carefully combine a number of visual elements to produce an effective commercial
for eg: the decision may concern the product, the presenter, action sequence, close ups, customer
interview, comparison, graphics, characters, colors, symbols etc.

Audio Element: the audio portion of the commercial includes voice, music, sound effects. The
voice could include two or more people appearing in the commercial who are involved in a
conversation, or it could be a single presenter appearing as spokesperson or it could be
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voiceover; where message is delivered or action on the screen is narrated or described by the
narrator not visible. In many commercial background score or background music helps to create
appropriate mood or atmosphere for the audience . In many other commercials , music is often
used to break through the advertising clutter and attract the audience’s attention, evoke feelings
and communicate the ad message. Jingles are catchy songs built around the product or service
that communicates the advertising theme or messages and are another important music element
of the commercials.

Planning and production of television commercials

In planning for television commercial the major decision is to focus on the type of appeal and the
execution style to be used. Television is well suited to both rational and emotional advertising
appeals or combination of the two. Various execution styles such as dramatization, slice of life,
humor, testimonial etc work well on television. Advertiser’s recognise that they need to do more
than talk about , demonstrate or compare their product or service. Their commercial have to
break through the clutter and grab the viewer’s attention , they must often appeal to emotional as
well as rational buying motives. Television is an entertaining medium, most TV audience watch
TV programmes for their entertainment value and commercials that are capable of primarily
entertaining and providing information are more successful.

A written down version of television commercial is called a Script, it brings together various
elements of the commercial and provide detailed description of the audio and the video portions.
The video portion covers the camera actions, angles, scenes, special techniques and other
important description. The audio portion includes the copy to be spoken by voices, the music and
the sound effects.

Once the basic script has been conceived, the writer and the art director get together to produce a
storyboard , a series of drawings to show the layout or the visual plan of the proposed
commercial. The storyboard presents the drawings of different video scenes and the detailed
description of the audio part that is associated with each scene. Those involved in the production
and approval of the commercial get a clear picture from storyboard as to what the finished
commercial would look like. “Animatic” is the videotape of the storyboard along with the
soundtrack. This is sometimes used for client presentation or pre-testing of commercial.

The production phase of the commercial starts after the client approves the storyboard or
animatic. There are three phases involved and the activities in each stage are

Pre-Production Phase Production Phase Post-Production Phase

All the activities undertaken Period during which filming Activities undertaken after
before the actual shooting or and videotaping of the the commercial has been
recording of the commercial commercial is done filmed and recorded
 Selection of director  Editing
 Set construction  Location or set shoots  Processing
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  Location  Talent arrangements  Mixing audio and
 Casting video
 Agency and client  Client or agency
approval approval
 Pre production  Release
meetings etc.
Creating Radio Commercial
Radio advertising is different and difficult because unlike print and television advertising it
cannot use visuals for attracting and captivating the audience, it requires awakening images in
the listener’s mind by using sound, music and voices. There is no visual or colors to attract the
audience only the sound. The scriptwriter has to be sure that the listener believes in the message.
It must deliver the right words; the writer can create a picture in sound (Mental Imagery). The
copywriter use words, sounds and music to create image and influence recall. The warmth of
human voice is another factor in communicating the message. Sound has an ability to generate
the mood desired by the advertiser, it can be used to create effects of footsteps, laughter,
moaning and many others. Music is the universal language and can be a powerful source in
grabbing the listener’s attention. Jingles are the popular means of helping people remember the
slogan.

The basic ingredient in the radio commercial is to promise an important and persuasive benefit
from the listener’s point of view. After determining the key promise to be communicated, the
writers use select words and sound to communicate the desired message. Some points taken into
consideration while developing advertising copy for radio are:

 Keep it short and simple: Use simple words and short sentences, copy needs to be
conversational
 Maintain clarity: delete unnecessary words, the message should flow in a logical
sequence
 Create rapport : the tone of the voice should create a rapport with the prospective
listeners
 Make it believable: Avoid making overstatements and exaggerations
 Make it interesting: manner of presentation of the message should be interesting
 Create distinctiveness : give the commercial distinct character

Creating Internet Advertisements

The aim of marketer is to create ads that will ensure high involvement of consumers and
interactive advertising on the internet promotes more customer involvement.

Designing Web site: Web pages can combine elements and designs styles from all different
media: print, film, sound etc. In addition, the need to search and navigate creates entirely new
design from whose major challenge is the ease of use.
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Web pages should be attractive and appealing. Navigation is the critical factor to move through
the web pages, it should be convenient for users to move through the site and find easily the
information they are looking for. Interactivity is the another important issue , to take advantage
of the special strength of his medium , there will be interactive elements that facilitate contacting
with the company with questions, complaints, suggestions, comments etc. Internet derive its
major advantage as the advertising medium through feedback communication , which is
important input as strategic planning also the copy testing methods are developed to evaluate the
site’s potential to motivate click through behaviour.

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 LESSON 7

MEDIA PLANNING
Targeting the communication message to the right audience, through the right medium with the
right strength is as important as the development of the message itself. Any advertiser who uses
mass media advertising needs to have competent services in the area of media planning.
Essentially, media planning answers the following fundamental questions:

 How much money to be spend on mass media?

 Across what media should the spends be allocated?
 At what point of time in the campaign period should these monies be spent?

Thus ,Media Planning refer to the series of the decisions involved in delivering the promotional
message to the prospective purchaser and or user of the product or brand. Media Planning is a
process which means a number of decisions are made each of which may be altered
or abandoned as the plan develops.
Media planning has become fairly complex with the increase in the cost of various media and the
proliferation of media choices . The media planners have to critically analyse the choice of media
class and media vehicles.
Media plan is the guide for the media selection. It requires development of specific
media objectives and specific media strategies designed to attain those objectives. Once the
decisions have been made and the objectives and strategies formulated, the information is
organised into media plan.
Medium is the general category of the available delivery system, which includes broadcast
media(TV, radio)Print media(newspaper, magazine), direct mail, outdoor advertising and
other support media.
Media Vehicle is the specific carrier within the medium category. For eg: Hindustan Times is
carrier of he advertiser’s advertisement in the newspaper category.
Media Mix: refers to various advertising channels through which a company communicates
with its target audience.
Coverage refers to the potential audience that might receive the message through the vehicle
Reach is the measure of the number of different audience members exposed at least once to
the media vehicle in a given period of time. Reach is normally expressed in percentage terms. It
is important to note that reach takes into account different and distinct individuals exposed to
a given medium, thus for two different publications it is possible for one individual to reading
both these publications, in media terms it is referred to as duplication , when calculating
reach care has to be taken to ensure that such reader is taken into account only once for the
purpose.

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Frequency: In order that advertising be effective the audience must be exposed to the
advertisement more than once. The number of times the advertisement appear in a given
publication or over a particular television program is known as frequency of exposures of the
advertisement. For eg: if the ad is released 10 times in a publication , the target audience reached
by that publication would have an opportunity to see that ad 10 times this is called as
OTS(Opportunity To See) in media terms.
Gross Rating Point(GRP) when reach and frequency is multiplied it is known as gross exposure
of a given campaign. This is a numerical figure indicating how many potential audience
members are likely to be exposed to a series of commercials. It does not measure the size of the
audience reached. Rather, GRPs quantify impressions as a percentage of the target population
It stands for reason that for a finite amount of advertising expenditure over the mass
media , reach and frequency have an inverse relation with each other. In other words if
we try to maximize reach, frequency gets compromised on the other hand if we maximize
frequency reach will get compromised
Developing media plan
Media strategy
Establishment development Evaluation and
Market Analysis of media and Follow up
objectives implementation

Figure a) Media Planning Process

The process as shown in figure a) involve a series of stages : Market Analysis, Establishment of
Media Objectives Media strategy development and implementation and evaluation and
follow up.
Market Analysis and Target Market identification
The key questions at these stages are :
 To whom shall we advertise?
 What internal or external factors may influence the media plan?
 Where and When should efforts must be focussed?
The market analysis may reveal more than a few target markets , to decide which group of target
market should be addressed the media planners may need some additional data regarding the
audience size, composition of target audience for eg: users among adults(males and females),
heavy users/light users etc. The index number is considered as good indicator or market potential
as the planners are more interested in the percentage figure rather than the absolute number.
Index = Percentage of users in the demographic segment
----------------------------------------------------------------- * 100
Percentage of population in the same segment
Use of index numbers is helpful but it should be combined with percentage and product usage
figures to get a clearer and more accurate picture of the market. Media strategies are influenced
by both internal and external factors operating at any given time. Internal factors may involve
size of the media budget, managerial and administrative capabilities of the organization or the
agency. External factors may include cost of media, competitive factors, changes in technology
etc.
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The next concern is where to promote relates to the geographic consideration. Companies may
find that the sales are stronger in one segment or market over the rest and may allocate
advertising expenditure according to the market potential of the area. Obviously those markets
should be the priority areas that are most likely to meet the desired objectives.

Use of Indices to determine where to promote: Brand Development Index (BDI) and Category
Development Index (CDI) may be used to determine where to focus advertising efforts as the
figures provide media planners insight into the relative value of markets.

BDI = Percentage of brand’s total country sales in the area/segment

-------------------------------------------------------------------------------------------*100
Percentage of total country population in the area/segment

The BDI compares the percentage of brand’s total sale in the market segment for eg: in
Rajasthan with the percentage of the total population in Rajastan to determine the sales potential
for the brand in Rajasthan.

CDI = Percentage of product category’s total sales in the area/segment

---------------------------------------------------------------------------------------------*100
Percentage of total country population in that area/segment

CDI is computed in the same manner as BDI except it uses information regarding the product
category as opposed to the brand in the numerator

CDI provides information on the potential for development of the total product category rather
than specific brands. When this information is combined with the BDI a much more insightful
promotional strategy can be developed

Brand Development Index (BDI)

Development index

High Low
High market share Low market share
High

Good market potential Good market potential

Category

High market share Low market share

(CDI)

Monitor for sales Poor market potential

Low

decline

High BDI and High CDI : This market usually represents good sales potential for both the
product category and the brand

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High BDI and Low CDI: The category is not selling well but the brand is , probable a good
market to advertise it but should be monitored for declining sales.

Low BDI and High CDI: the product category shows high potential but the brand is not doing
well , the reason should be determined

Low BDI and low CDI: Both the product category and the brand are doing poorly, not likely to
be a good place for advertising

Establishing Media Objectives

Media objectives are the goals for the media program and should be limited to those that can be
accomplished through media strategies. Media objectives are formulated to help accomplish the
advertising communication task and marketing objectives. Media objectives are translated into
specific goals for the media programme. For eg: media objective is o create awareness in the
target market through :

 Use of print media to provide coverage of 90% of the target market in six months
 Reach 60% of the target audience at least three times(frequency) over six months
Media strategy development and implementation
Having established what is to be accomplished, media planners consider how to achieve these
objectives that is they develop and implement media strategies which evolve directly from the
actions required to meet objectives.

Criteria considered in the development of the media plans are:

 The Media Mix

 Target Market coverage
 Geographic Coverage
 Scheduling
 Media reach and frequency
 Creative Aspects and Mood / Qualitative Aspect of Media Vehicle Source
 Budget Consideration

Media Mix: A wide variety of media and media vehicles are available to the advertisers. The
objective sought, the characteristics of the product, size of the budget and individual preferences
etc. may be the factors that determine the combination of media used.

For eg: a situation in which the product requires a visual demonstration for communicate
effectively, in such a case TV may be the most effective medium. If the promotional strategy
calls for to stimulate sale by trial by coupons print medium may be employed.

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By employing media mix, advertiser can add more versatility to their media strategies since each
medium contributes its own distinct advantages. By combining media marketers can increase
coverage, reach and frequency levels by improving the likelihood of achieving overall
communication and marketing goals.

Target Market Coverage: The media planners determines which target market should receive
the most media emphasis, this requires matching the media and media vehicles most suitable to
the target audience. The optimal goal is the full market coverage but this is a very optimistic
scenario and in real situation the coverage of the media does not allow for total market coverage,
some potential customers are left without exposure to the advertised message. It is also true that
media coverage reaches non targeted audience who are not considered as potential customers and
the advertiser is faced with the problem of overexposure referred to as waste coverage or media
over exposure

The media planners objective is to reach as many members of the target market as possible and
at the same time minimizing the extent of any waste coverage. The situation usually involves
trade-offs, however waste coverage is justified because the media employed are likely to be the
most effective means of delivery available and the cost of waste coverage is exceeded by the
value gained from their use.

Geographic Coverage: Geography is another important consideration for the media planning
process, the demand for certain types of products depends on the geographic locations of the
market for eg: heavy woollens are unlikely to have significant demand in Southern Indian States
, thus the marketers would have no inclination to advertise such products in such geographic
locations. The use of BDI and CDI may be quite helpful in determining the media strategy for
different geographic locations.

Scheduling

Companies would like to keep their advertising in front of the target audience at all times as a
constant reminder of its product or brand name however in reality it is not possible for a variety
of reasons such as the funds availabity rather it may not be necessary. The primary objective of
scheduling is to time the promotional efforts so that they coincide with the highest potential

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buying times. The scheduling methods available to media planners are: Continuity, Flighting
and Pulsing.

Continuity refers to the continuous pattern of advertising which may mean every day, every
week, or every month. The key is that a regular or continuous pattern of advertising is developed
without gaps or non advertising periods. Such strategies might be used for advertising of
products that are used or consumed on an ongoing basis without regard to seasonality(FMCG
goods)

Flighting, employs a slightly less regular schedule with intermittent or irregular period of
advertising and non advertising. At some time period there may be heavier promotional
expenditures and at others there may be no advertising. For eg:

Pulsing is actually combination of Continuity and flighting . In pulsing strategy continuity is

maintained but at certain times the promotional efforts are stepped up.

Thus, Media schedule is the calendar of the advertising plan and is concerned with the timing of
the insertion of ads in the selected media. The decisions in this area are essentially based on the
certain assumptions concerning how the target audience will respond to the presence or absence
of the advertising message

Media Reach and frequency: Advertiser’s have variety of objectives and face budget
constraints; they usually trade off between reach and frequency. They must decide whether to
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have the message be seen or heard by more people (reach) or by fewer people more
often(frequency)

As per the response hierarchies the more people are aware are likely to move to each subsequent
stage, achieving awareness requires-Reach that is exposing potential buyers to the message. New
brands need a high level of Reach, since the objective is to make all potential buyers aware of the
new entry. High reach is also desired at later stages of the hierarchy for eg: at the later stage of
adoption, promotion strategy might be to use coupons or free samples, an objective of the
marketer to reach large number of people with these samples or coupons, in an attempt to make
them learn about the product, try it, develop favourable attitude towards it and in turn lead to
actual 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 sure an ad placed in
a vehicle will actually reach the intended audience.

The next question is about what frequency of exposure is necessary for the ad to be seen and
have an impact. Frequency is the number of times one is exposed to the media vehicle, not
necessarily the ad itself. While advertisement may be placed in a certain vehicle, the fact that the
consumer is exposed to that vehicle does not ensure that he also has seen/ read or viewed your
advertisement. As a result the frequency level expressed in the media plan overstates the actual
level of exposure to the ad. This overstatement led some media buyers to refer to the reach of the
media vehicle as “Opportunities to See” (OTS) an ad rather than actual exposure to it.

Because the advertisers has no sure way of knowing whether exposure to a vehicle results in
exposure to the ad, it is accepted hat one exposure to a media vehicle constitutes reach provided
that this exposure must occur for the audience member to offer an opportunity to see the ad. This
approach though, does not help in determining what frequency level is needed to create the
desired impact , decisions in this regard are not always based on hard data. It is often quoted that
establishing frequency goals for an advertising campaign is a mix of art and science but with a
definite bias towards art.

Media planners often compromise and strike a balance between reach, frequency and the number
of advertising cycles in the planning period. In most cases the advertising budget is fixed and the
planners cannot spend more on say increasing frequency without decreasing expenditure on
reach or the number of advertising cycles. The tradeoffs are generally governed by the principle
that it is better to sell some people completely than many people not at all. The trade-off between
reach and frequency is most common , if it is advantageous to maintain advertising continuity or
plan more advertising cycles as with the frequently purchased products or services then reach
should be sacrificed. For infrequently purchased products such as consumer durables goods it is
advised to increase reach and advertise only occasionally in cyclic pattern, this may suffice to
maintain audience interest without having to reach them more frequently. The best trade offs

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depend on the media strategy, the type of the product . It is also possible that audience members
are exposed to more than one media vehicle carrying the same ad, resulting in repetition For eg:
if an ad of fairness cream is placed in two magazines say Femina and Star Dust, a number of
target audience will be exposed to both vehicle resulting in duplicated reach . If an ad is placed
in one magazine only the total number of audience exposed only once is un-duplicated reach .
Figures of both duplicated and unduplicated reach are important . Un- duplicated reach
represents potential new exposures and duplicated reach provides an estimate of frequency

Programme Rating: is a measure of potential reach of broadcast media/programme expressed

in percentage for eg: the number of households that on TV sets is 100 and a certain programme is
viewed in 30 of those households , the programme rating would be 30.

Programme Rating = Number of households viewing the programme

------------------------------------------------------------------------ * 100
Total number of households owning the TV sets

Gross Rating Point(GRP) : The media buyers typically use a numerical indicator to know how
many potential audience members may be exposed to a series of commercials. A summary
measure combines the program rating and the average number of times the home is reached
during the period (frequency) is commonly used reference point known as Gross Rating
Point(GRP)

GRP = Reach * Frequency

Advertisers also use GRP as the basis for examining the relationship between reach and
frequency

Frequency = Gross Rating Point (GRP)

--------------------------------------
Reach

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 Reach = Gross Rating Point (GRP)
--------------------------------------
Frequency
Qualitative Aspect of Media Vehicle Source

This concept refer that the ad exposure in one vehicle might have more impact on the audience
than if the same ad is placed in another vehicle . For example if the ad for a cosmetic brand is
placed in women magazine say Femina, it might produce more impact on the target audience
than if the same ad is placed in another magazine say Reader’s Digest even if the audiences
were the same. The difference in the ad message impact may be the result of audience
involvement , editorial fit or the physical reproduction qualities.

Media Vehicle’s degree of expertise associated with its area of interest is important, for eg:
magazines related to computer say PC Quest, Digit or Computer ‘s @ Home etc. Are seen by
their target audience as reliable sources of information on the subject. Media vehicle can
enhance the creativity of the message by creating a mood that affect the impact of the
commercial communication. Sports channels are believed to generate excitement and fun loving
moods, ads of soft drinks, sportswear is usually seen on these channels .Women and lifestyle
magazines are used cosmetics brand. Certain media vehicle have image that may carry over to
the perception of the ad message placed within them. It makes sense to think that involvement of
the target member in the media vehicle should generate more impact of an ad message compared
to another vehicle that is less interesting to the audience. Commercials that interrupt the high
involving TV programmes may benefit because of the spill over of involvement to ad
comprehension.

Budget Consideration
One of the most important decision in the development of media strategy is the cost estimation.
The value of any strategy can be determined by how well it delivers the message to the audience
with the lowest cost and the least waste.

Advertising and promotional costs can be categorized in two ways: The Absolute Cost of the
medium or vehicle and the Relative Cost of the medium or the vehicle. For eg: If it cost Rs 10 lac
to furnish a full front page advertisement in a national newspaper , the absolute cost of the media
vehicle is Rs 10 Lac., with the same advertisement the reach is 10 lac audience members the
relative cost of the medium is one rupee per reach , thus the relative cost of the medium is
always in relation to the absolute amount paid for advertising time or space and the size of the
audience delivered.

Determining the relative cost of the media

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To evaluate the alternatives, advertisers compare the relative cost of the media as well as
vehicles within these media. However the broadcast, print and out of the home media does not
always provide the same cost breakdown.

Cost per thousand(CPM): Magazine space is sold primarily on the basis of pages or some
increment of the page. CPM has been used by the magazine industry as a standard method to
provide cost breakdowns on the basis of cost per page per thousand circulations and is used to
compare media cost if different vehicles

CPM = Cost of ad space

------------------------------- * 1000
Circulation
For eg: if the cost of placing one full page advertisement in Star Dust is Rs fifty thousand and
the circulation of the magazine is five lac copies , the CPM calculation would be
CPM = 50,000
----------------- * 1000 = 100
5,00, 000

Cost Per Rating point (CPRP) : the broadcast media provide a different comparative figure
referred to as cost per rating point or cost per point calculated as:

CPRP = Cost of Commercial time

-------------------------------------
Programme Rating
For example if the cost of a ten second spot on Star Plus is Rs one lac and fifty thousand and the
programme rating is 30, the CPRP would be:

CPRP = 1,50,000
------------- = 5000
30
Relative Cost comparison of media is important, however the inter media comparison can be
misleading for eg: television combine sight and sound with motion and magazine provide
longevity . Attributes of different media make direct comparison difficult other than cost
comparison advertiser must also look for specific characteristics of each medium and the vehicle
within each medium.

Evaluation and Follow up:

Evaluation is essential to assess the performance of any activity Two factors are important in
evaluating the media plan:

How successful were the strategies in achieving the media objectives? Did the media plan was
successful in accomplishing the desired objectives?
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Successful strategies help build confidence and serve as reference point in developing media
strategies in future and the failure is thoroughly analysed to learn about the shortcomings.
However there are certain problems with the measurement that limit the degree to which one
assess the relative effectiveness of advertising strategies

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 UNIT-III

LESSON 1

MEASURING ADVERTISING EFFECTIVENESS

Almost any time one engages in a project or activity, whether for work or fun , some measure
of performance occurs, advertising and promotion is not an exception. Both clients and
agencies are continually striving to determine whether their communication are working and
how well they are working in relative to the other options. Measuring the effectiveness of
promotional program is critical element in the promotional planning process. Research
allows to evaluate the performance of the specific promotional message element and
provides input for the next period’s situation analysis , it is a necessary ingredient for the
continuing planning process.

What to test

This section considers what elements to evaluate

Source Factor: an important question is whether the spokesperson being used is effective
and how the target market will respond to him or her for example: Mr. Amitabh Bachchan
had been effective in the pulse polio “ Do Boond Zindagi Ki” campaign ; wherein he
compelled people to get their kids vaccinated for the polio.

Message Variables: both the message variables and how that is communicated are bases for
evaluation for example: the message may not be strong enough to pull the readers into the ad
by attracting their attention or is clear enough to help them evaluate the product. A number of
factors regarding the message and its delivery may have an effect on the effectiveness
including the headline, illustration, text and layout etc.

Media Strategies: media decisions need to be evaluated . Research may be designed to

determine which media class (eg: broadcast or print), sub class(newspaper or magazine) or
specific vehicle(which newspaper or magazine) generate the most effective results. The
location within the particular medium (eg: front page, back page or under specific section
head say Sports section etc) and the size of the ad or the length of commercial also merits
examination.

Another factor is Vehicle option source effect; the differential impact that the advertising
exposure will have on the same audience members if the exposure occurs in one media option
rather than another.

Final factor in media decisions involve scheduling , the evaluation of flighting versus pulsing
or continuity schedule is important particularly given the increasing cost of media space and
media time.

Advertising Budgeting decision: a number of studies have examined the effects of budget
size on advertising effectiveness and the effects of various ad expenditure on sales. Many
companies have also attempted to determine whether increasing their ad budget directly
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increases sales. The relationship is often hard to hard to establish , perhaps because using
sales as an indicator of effectiveness ignore the impact of other marketing mix elements.

When to test

All the test measures are classified according to when they are conducted. Pretests are the
measure taken before the campaign is implemented , pretests may occur at a number of points
from as early as idea generation to rough execution to testing the final version before
implementing it. Posttests occur after the ad or commercial has been in field. Post testing is
designed to determine if the campaign is accomplishing the objectives sought and serve as an
input for the next period’s situation analysis.

Where to Test

Laboratory Test: In laboratory tests people are brought to a particular location where they
are shown the ads or commercials. The major advantage of lab setting is the control it affords
the researchers. Changes in copy , headlines, illustrations, colors, font can be manipulated
inexpensively and differential impact of each assessed. This makes it much easier for
researchers to isolate the contribution of each.

The major disadvantage is lack of realism. And the greatest effect of lack of realism is a
testing bias when people are brought into lab they may scrutinize the ads much more closely
than they would at home .

Field Test: are the tests of the ad or commercials under natural viewing situations complete
with realism of noise, distraction, and comforts of home. Filed test take into account the
effects of repetition , program content and even the presence of competitive messages. Major
disadvantage of field test is lack of control, it may be impossible to isolate the cause of
viewer’s evaluations and field tests take more money and time to conduct so the results are
not available quickly to be acted upon

Why to test/ Reason to measure advertising effectiveness

Assessing the effectiveness of ads before they are implemented and/ or after the final
versions have been completed and fielded offer various advantages:

Avoid costly mistake: if the advertising and promotional program is not accomplishing its
objectives not only the money spent lost but also the potential gain that could result from the
advertising program. Thus , measuring the effects of advertising does not just save money , it
also helps to maximize its investment.

Evaluate alternative strategies: Typically there are a number of strategies under

consideration before a firm, for example there may be many questions as to which medium
should be used or whether one message or one type of appeal or execution style be used or
the alternate one . To evaluate which strategy is and would be best suitable for the firm or
brand , it is essential to measure advertising effectiveness.

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Increasing efficiency of advertising in general: Sometimes advertiser get so close to the
project they lose sight of what they are seeking and because they know what they are trying
to say , they expect the audience will also understand . They may use technical jargon that not
everyone is familiar with or the creative department may get too creative or too sophisticated
that they lose meaning that is to be communicated.

Determine if objectives are achieved: In a well designed IMC plan , specific objectives are
established , if objectives are attained new ones need to be established for the next planning
period. An assessment of how program element led to the attainment of goals should take
place and /or reasons for less than desired achievement must be determined.

Why not to test

Companies give a number of reasons for not measuring the effectiveness of advertising and
promotional messages:

Cost: perhaps the most commonly cited reason for not testing particularly among the smaller
firms is the cost involved in conducting the testing procedures to determine the efficacy of
advertising. Good research may be expensive both in terms of time and money. Many believe
that the amount spent on advertising research may be better spent on the improved production
of ad, additional media buys etc.

Disagreement on what to test: The objectives sought in the promotional program may differ
by industry, stages of the product life cycle, or even for different people within the firm. The
sales manager may want to see the impact of promotion on sales, the top management may
wish to know the impact on the corporate image and those involved in the creative process
may wish to assess recall or recognition of the ad. Lack of agreement on what to test often
lead to no testing

Objections of creative: It has been argued that the creative department does not want its
work to be scrutinised or tested and many agencies are reluctant to submit their work for
testing. As the creative department of the ad agencies argue that tests are not true measures of
creativity and effectiveness of ad , applying measures stifles their creativity

Research problem: Another major issue for not measuring advertising effectiveness is that it
is difficult to isolate the effects of promotional elements . Each variable in the marketing mix
affect the success or failure of the product . As it is difficult to isolate the measures of
contribution of each marketing element directly, managers decide not to test at all

How to test

Conducting evaluative research is not easy . Twenty one of the largest US advertising
agencies have endorsed a set of principles aimed at improving research used in preparing and
testing ads , providing a better creative product for the client and controlling the cost of TV
Commercials. This set of nine principles, called PACT(Positioning Advertising Copy
Testing) defines copy testing as research which is undertaken when a decision is to be made
about whether advertising should run in the market place. Whether this stage utilizes a single
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test or a combination of tests, its purpose is to aid in the judgement of specific advertising
executions

1) Provide measurements that are relevant to the objectives of the advertising

2) Require agreement about how the result will be used in advance of each specific test
3) Provide multiple measurements(because multiple measurements are not adequate to
assess ad performance)
4) Be based upon model human response to communication – the reception of stimulus,
the comprehension of stimulus and the response to stimulus
5) Allow for consideration of whether the advertising stimulus should be exposed more
than once
6) Require that the more finished a piece of copy is the more soundly it can be evaluated
and require as minimum that alternative executions be tested in the same degree of
finish.
7) Provide control to avoid biasing effects of the exposure context
8) Take into account the basic consideration of sample definition
9) Demonstrate reliability and validity

Testing Process

Testing of advertisements may occur throughout its development process:

 Concept testing
 Rough, prefinished art copy and or commercial testing Pre-Testing
 Finished art or commercial pre testing
 Market testing of ads of commercials(Post testing)

Concept testing is conducted very early in the campaign development process in order to
explore targeted consumer’s response to a potential advertisement. Positioning statements,
copy, headlines, colors used, typeface, package designs , illustrations may be scrutinized ad
evaluated.

One of the most commonly used methods for concept testing is focus groups which usually
consist of eight to ten people from the target market of the product(however number may be
more depending upon the group consensus, strength of response or degree of participation)
and are presented with the concept to be tested and are asked to discuss. A variety of issue
may be examined and consumers are free to go into the depth in areas they consider
important. The results are easily obtained , directly observable and immediate. However the
results obtained are qualitative and not quantified this restrict further analysis also group
influences may bias the participants responses

Other commonly used methods are

Paired Comparison: wherein the respondent is presented with two different product
concepts and are asked to evaluate and express their preference and reasons for it

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Rank Order: Respondent is presented with series of product concepts and are asked to rank
them in order of preference

In both the above methods rather than participating in a group discussion, individuals assess
the concepts via rating scale questionnaires etc.

Rough Art Copy and commercial Testing

Consumer Jury :group of respondents are asked to rate a selection of layouts or copy
versions presented in paste ups on separate sheets.

Direct questioning, Focus groups , order of merit tests, paired comparison test may be used
for conducting test on consumer jury

Certain flaws in the methodology limit its usefulness such as preference for specific types of
advertising may overshadow the objectivity of evaluation by the respondent, sometimes
participants rate an ad good on all characteristics because they like a few and overlook
specific weaknesses (halo effect),respondent instantly become self appointed expert paying
more attention and being more critical than usual.

Comprehension and reaction tests: one key concern for the advertiser is whether the ad or
the commercial conveys the meaning intended. The second concern is the reaction that the ad
generates. Comprehension and reaction tests are designed to assess these responses.

Test of comprehension and reaction employ no one standard procedure. Personal interview,
group interview or focus groups may be used for this purpose.

Pretesting of finished ads

Finished advertisement or commercial is tested since it has not been presented to the market
changes can still be made.

Portfolio Test is laboratory methodology designed to expose group of respondents to a

portfolio consisting of both control or test ads, they are then asked what information they
recall from the ads, the underlying assumption being that the ads that yield the highest recall
are the most effective. While portfolio tests offer the opportunity to compare the ads directly
, certain weaknesses limit their applicability:

Factors other than creativity and or presentation may affect recall. Interest in product or
product category , the fact that respondents know they are participating in attest or
interviewer instructions may account for more differences than the ad itself

Recall may not be the best test for all types of products, according to some researchers ability
to recognise the ad when shown for a low involvement product may be a better measure than
recall.

Dummy Advertising Vehicles: In an improvement on the portfolio test, ads are placed in
dummy magazine developed by the agency or the research firm, the magazines contain the

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regular editorial features of interest to the readers as well as the test ads and are distributed to
the random sample in predetermined geographical areas. Readers are told the magazine
publisher is interested in evaluation of editorial content and then they are interviewed on
their reactions to both editorial content and ads. Recall, recognition and interest generating
capabilities of ads are assessed.

The most important advantage of this method is that it provides a more natural setting,
readership occur at participants own home, the test more closely approximates a natural
reading situation and the reader may go back to the magazine as they typically do but the
method shares the disadvantages associated with the portfolio tests, the testing effect is not
eliminated and product interest may still bias the result

Theatre Tests: respondents are invited to view pilots of the proposed television programs in
between they are shown advertisements commercials, they are asked to indicate what they
like and didn’t like in the commercial, recall of various aspects o the commercial, interest in
and reaction to the commercial, interest in brand under consideration etc.

Proponents argue that theatre test offer distinct advantages in addition to control , this method
indicates how one’s commercial will fare against others .

Those opposed to theatre test cite a number of disadvantages : environment is too artificial,
lab setting is bad enough , group effect of having others present and overtly exhibiting their
reactions may influence viewers who do not have any reactions themselves.

Physiological Measures: involves laboratory setting in which physiological responses are

measured, these measures indicate the receiver’s involuntary response to the ad, and
theoretically eliminating biases associated with the voluntary measures (Involuntary
responses are those over which the individual has no control such as reflexes)

Pupil Dilation: Pupillometer is the device that measures person’s pupil dilation and
constriction (narrower, tightening) to the pupil of the eyes in response to stimuli . Dilation is
associated with action and constriction involves body’s conservation of energy. Pupil dilation
suggest a stronger interest or preference for an ad implies arousal or attention getting
capabilities .

Galvanic Skin Response(GSR): also known as Electro Dermal Response(EDR). GSR

measures the skin’s resistance to a small amount of current passed between the two
electrodes. Response to the stimulus activates sweat glands which in turn increases the
conductness of the electric current. Thus GSR/EDR activity might reflect a reaction to
advertising, viewing several different advertisements involuntarily reveals variations in
interest through automatic recording of the EDR response on the skin. Excitement can cause
either an extremely unfavourable or an extremely favourable reaction both reactions will
show up on the graph.

Eye tracking: viewers are asked to view an ad while a sensor aims abeam of infrared light at
the eye , the beam follows the movement of the eye and shows the exact spot on which the
viewer is focusing, the continuous reading of responses demonstrates which elements of the
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ad are attracting attention, how long the viewer is focusing on them and the sequence in
which they are viewed.

Eye tracking can identify strength and weaknesses in an ad for eg: background action may
distract the viewer’s attention away from the product being advertised, thus advertiser can
remedy this distraction before commercially telecasting the ad.

Brain Waves: can be taken from the skull to determine electric frequencies in the brain,
these electrical impulses are used in two areas of research: alpha waves and hemispheric
lateralization.

Alpha activity refers to the degree of brain activation, people are in the alpha state when they
are inactive , sleeping or resting. In this state a person is less likely to be processing
information. By measuring subject’s alpha level while viewing a commercial researcher can
assess the degree to which the attention and processing are likely to occur.

Hemispheric Lateralization: distinguishes the alpha activity in the left and the right
hemisphere/side of the brain. The right side of the brain processes the visual stimuli and the
left side processes the verbal stimuli, the right hemisphere respond to emotional stimuli and
left side respond to logic. Advertiser could design ads to increase learning and memory by
creating stimuli to appeal to each hemisphere.

Post testing

After the ad and or campaign has been implemented , post-tests are conducted to measure
communication or sales effects of the ads, to provide insight on advertisement’s performance
and provide input about the conduct of future advertisements

Inquiry Tests: are used both in consumer and business to business market testing, these tests
measures advertising effectiveness on the basis of inquiries generated from the ads. Inquiry
can take the form of number of phone calls/ emails received, number of coupons returned or
direct inquiries through reader cards.

Split- Run Tests: Variations of ad appear in different copies of the same newspaper or
magazine both the copy style would carry an offer or gift or free booklet depending on which
ad results in greater number of inquiries the advertiser decides which ad would be more
effective in generating sales.

Inquires may not be the true measure of attention getting or information providing aspect of
the ad, the reader may be attracted to the ad, read it, even store information but may not
inquire at a particular time. Time constraint, lack of need for the product at the time the ad is
run and other factors may limit the number of inquires . Also receiving small number of
inquiries does not mean the ad was not effective ; attention , awareness, recall, attitude
change may all have been achieved . At the other extreme a person with particular need for
the product will respond to an ad regardless of specific qualities of the ad.

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Recognition Tests: Once exposure to the media vehicle has been established, the
interviewer may use recognition tests . Respondents flip through the pages and points to the
items he remembers. This test is based on the premise that there is a positive correlation
between noticing an advertisement for a product and buying that product.

Recall Tests: refers to the measures of the proportions of the sample audience that can recall
an advertisement. These tests assess the ad’s impact on memory of the respondent. There are
two types of Recall: Aided recall and Unaided recall. In aided recall the respondent is
prompted by showing a picture of the advertisement with the sponsor or brand’s name
blanket out, in unaided recall only the product or service name may be given.

However the respondent’s degree of involvement with the product or the distinctiveness of
the appeals or visuals may affect the recall scores

Day After Recall Tests: the day after recall(DAR) is measure of television commercials
where consumers are asked about the ad after the day they saw it(or even more). DAR is the
percentage of those is the commercial audience who were watching the show before and after
the commercial was shown, who recalled something specific about the commercial such as
sales message, story line, plot or some visual or audio element. These percentages of the ad
being tested are compared with the norm or historical average for the ads of similar length,
or similar product categories

The major advantage of day after recall test is that they are field test, the natural setting is
supposed to provide a more realistic response. However the program content may influence
recall , DAR tests may favour unemotional appeals because respondents are asked about the
message and thinking messages are easier to recall than emotional ones so the recall score for
emotional ads may be lower.

Test Marketing: Many companies conduct tests designed to measure their advertising effects
in specific test marks before releasing them nationally. The test markets chosen are
representative of the target market. A variety of factors may be tested reaction to the ads, the
effects of various budget size or special offers. The advantage of test marketing of ads is
realism, regular viewing environment are used and the testing effects are minimised. A high
degree of control can be attained if the test is designed successfully for eg: to identify the
association between the advertising frequency and consumer’s buying habit. On the other
side the major disadvantage associated are the cost and the time involved.

Tracking Studies: one of the more useful and adaptable form of post testing involves
tracking the effects of the ad campaign by taking measurements at regular intervals. Tracking
studies have been used to measure the effects of advertising on awareness, recall, interest and
attitude towards the ad or brand as well as purchase intention. This may be applied to both
print and broadcast ads. Personal interview, phone survey ,mall intercepts may be used . It
yields the most valuable information to the advertiser for assessing the current programs and
planning for the future. Also standard set of questions can track effects of campaign over
time.

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Essentials of Effective Testing

Good tests of advertising effectiveness must address the nine principles established by PACT

 Establish communication objectives: Marketing objectives established for the

promotional program are not good measures of communication effectiveness for eg:
it is very difficult to isolate the impact of advertising effort on sales as there are
number of factors that has bearing on the level of sales generated, on the other hand
attainment of communication objectives an be measured and leads to accomplishment
of marketing objectives.
 Use Consumer response Model: Hierarchy of Effects model or Cognitive response
models which provide an understanding of the effects of communication and lend
themselves to achievement of communication objectives
 Use both pre tests and post tests: From cost point of view pre testing makes sense ,
it may mean the difference between the success or failure of the campaign or the
product. But it should work in conjunction with post-tests which avoid the limitations
of pre-tests, use much larger samples and take place in the more natural settings.
 Use Multiple Measures: Many attempts to measure the effectiveness of advertising
focus on one major dependent variable perhaps recognition , recall, sales . Advertising
may have variety of effects on the consumers, for true measure of advertising
effectiveness a number of measures may be required.
 Properly understand and implement research: it is critical to understand research
methodology. What constitutes a good design? Does it measure what we need to? Is it
valid or reliable? There is no shortcut to these criteria and there is no way to avoid it if
you truly want to measure advertising effectiveness.

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 LESSON 2

ADVERTISING AGENCY
The word “Advertiser” in the marketing parlance is the term used for the organisation that
uses mass media to advertise for its products and services. They provide necessary funds that
go into media buying and creating advertisements. Developing and implementing integrated
marketing communications program is usually complex and detailed process . The
organisation can handle most of these functions through its advertising department or by
setting up an in house advertising agency. For most of the companies advertising planning
and execution is handled by an outside advertising agency .

According to American Association of Advertising Agencies(AAAA),”Advertising

agency is an independent business organisation composed of creative and business people
who develop, prepare and place advertising in advertising media for sellers seeking to find
customers for their goods and services” In present scenario more and more advertising
agencies are acting as partners with the clients and assuming more responsibility for
developing the marketing and promotional programmes.

Media organisations perform a vital function in the advertising communication process by

providing information or entertainment to their audience and thereby provide an environment
for the advertiser’s message. The media must possess those attributes that attract audiences so
that clients and their advertising agencies want to buy space or time to reach to their target
markets with the ad message in a cost effective manner.

Another important group of participants includes various service specialists and providers of
collateral services . They include direct response agencies, sales promotion agencies,
marketing research providers , photographers etc.

Client or Advertiser’s role in organising for advertising

The manner in which a company organises for advertising and other promotional elements
depends upon several factors such as company size, number of products , budget, structure of
marketing organization etc. Many companies have an advertising department , many
marketing personnel often provide inputs in campaign planning , agency selection and
evaluation of proposed programmes. Some large organisations form a spate in house
advertising agency responsible for advertising and other promotional activities.

Centralised System: Marketing activities in some companies are divided along the
functional lines such as advertising, sales, product planning , research and development etc.
The advertising manager looks after al promotional activities concerned with company’s
product and services including budgeting, creation of ads, their production, media schedules
and sales promotion.

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Usually companies that do not have many divisions, product or service lines or brands often
use centralised system . Having centralised advertising department makes it easier for the top
management to participate in decision making . since fewer people are involved in deciding
the programmes in a centralised system , operating efficiency is greater. On the negative side
, it is often difficult for the advertising department to fully comprehend the overall strategy
for the brand and the response to the specific problems faced by the brand may be slow.

Centralised System

Company
president

Production Finance Marketing HR Reserch and

department Department department Department Development

Marketing Product Advertising Sales

Reserch planniong Management Management

Decentralised System: is used in large corporations with many product lines and brands .
Typically the company has many strategic business units or divisions with separate
manufacturing, research , marketing, sales , product or brand management departments . Each
brand is assigned to a brand manager also termed as product manager; who is typically
responsible for managing the brand including planning, budgeting , sales and its profit
performance. The brand manager often has one or more assistant brand managers for
planning, implementing and control of marketing programme.

Under the brand management system all functions associated with advertising and other
promotions are the responsibility of brand manager, who works closely with the advertising
agency and other specialist service providers as they prepare the promotional programme.
The advertising department as part of marketing services provide support to brand managers
in planning and coordinating integrated promotional communication (Refer Figure) In a multi
product company , brand managers may compete with the brands in the same product
category handled by other brand managers within the company and not just the outside
competitors.

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In this system, brand managers are often involved in competition among themselves to gain
the top management attention for more budget allocation leading to undesirable rivalries and
sometimes even disproportionate fund allocation.

Decentralized System

Vice
President
Marketing

Sales Product Marketing

Management Management Services

Brand Advertising Marketing

Manager 1 Department Reserch

Brand Ssales
Manager 2 promotion

Brand Package
Mananger 3 Design

Types of Advertising Agency

Advertising agency is an independent organisation that provides one or more specialised

advertising and promotion related services to assist companies in developing, preparing and
executing their advertising and other promotion programmes.

The main reason why companies use outside ad agencies is because they provide the clients
with services of highly skilled specialists in their chosen fields. An advertising agency may
have personnel that include writers , artists, media research specialists and other with
specific knowledge and skills expertise and experience to hep the client market their product
and services. Some agencies distinguish themselves in providing specialist services for
companies in particular industry.

Full Service Agencies: As the name suggests , a full service agency provides a whole range
of services to the clients both advertising and non advertising. Advertising services
encompasses planning, creating, and producing advertising campaigns which broadly
includes account planning, research, creative services , media planning , production of
advertisement material for print, broadcast and outdoor media etc. Non advertising functions
may include public relations, making corporate identity plans, organizing fairs , exhibitions
etc. Some agencies are even involved in their client’s marketing processes which may include
distribution and suggesting marketing strategies for their products.
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The full service agency is composed of various departments each responsible for providing
needed inputs to perform various functions to serve the client. Such an agency often tends to
have following functional areas :

 Account Services
 Marketing Services
 Creative Services
 Management and Finance

Account Services: or account management is the link between the ad agency and its clients.
The account executive is responsible for understanding the advertiser’s marketing and
promotion needs and interpreting them to the agency personnel. The account executives also
present agency recommendations and obtain client approval.

Marketing Services: Most full service agencies maintain a research department whose
function is to gather, analyse and interpret information that will be useful in developing
advertisements for the clients. This can be done through primary research or through
previously published material (secondary research). The research department may also design
and conduct research to pretest the effectiveness of the advertising copy.

The media department of the agency analyze , select and contracts for space or time in the
media that will be used to deliver the advertisement message. The media department is
expected to develop media plan that will reach the target market and effectively communicate
the message.

The research and media department perform most of the functions that full service agencies
need to plan and execute their clients advertising programs. Some agencies offer additional
marketing services to their clients to assist in other promotional . An agency may have sales
promotion department or merchandising department that specialise in developing contests,
premiums, point of sale materials and other sales materials.

Creative Services: The creative service department is responsible for the creation and
execution of advertisements. The individuals who conceive the ideas for the ads and write
headlines, sub heads and body copy are known as copywriters. They are also involved in
developing the basic appeal or theme of the ad campaign. The art department is responsible
for how the ad looks .

Members of the creative department work together to develop ads that will communicate
the key points determined to be the creative strategy of the for the client’s product or
services.

Once the copy, layout and illustration is approved , the ad is turned over to the production
department. Most agencies do not produce finished ads , they hire specialists to complete the
finished product.

Creating an ad often involve many people and take considerable time, in large agencies with
many clients coordinating the creative and production processes can be a major problem. A
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Advertising Agencies-Indian Scenario

There are many accredited advertising agencies in India, besides a number of smaller ones
looking for accreditation to be engaged in national advertising. In order to get credit facilities
and full agency discounts from the media, agencies need to get accreditation from the Indian
Newspaper Society(INS). One of the key functions performed by the society is to provide
assistance to member publications in regard to monitoring the recovery of their dues from
Advertising Agencies and Advertisers.

Agency’s Compensation/How does advertising agencies earn revenue

There are three methods used to compensate the agencies for their varied services:

 Commission
 Negotiated Fee
 Percentage charges

Commission from Media: traditional method of compensating agencies is through a

commission system. The agency is paid a fixed commission from the media on any
advertising space or time purchased for the advertiser. This system provides a simple method
for determining payments.

This system has been criticised whether the fixed percentage paid represent an equitable
compensation for the services rendered by the agency. To produce an ad, two advertising
agencies may put the same amount of effort, However one client spends Rs 5,00,000 on
media and other spends Rs 10,00,000. Assuming commission rate is 10%, one agency would
get paid Rs 50,000 and other Rs 1,00,000 in commission. Thus this method encourages
agencies to recommend higher media expenditure to increase their earnings. In period of
media cost inflation, the agencies earn disproportionate amount as commission. Those who
favour this method say that not only is it easy, but it also encourages competition among
agencies on factor other than price, such as quality of advertisements produced. They further
argue that agencies have to devote more time and effort to large accounts and often perform
other services for them so the accounts generate proportionately higher revenues for the
agency.

Negotiated Fee: Since many believe that commission system is not equitable to all parties ,
many agencies and their clients have developed some type of fee arrangement or cost plus
agreements for agency compensation. Some are using incentive based compensation.

Fixed Arrangement: There are two basic types of fee arrangement , in fixed fee method, the
agency charges a basic monthly fee for all of its services and credits the client any media
commission earned. Agency and the client agree on the specific work to be done and the
amount the agency will be paid for it. Sometimes the agencies are compensated through fee
commission combination, in which media commission received are credited against the fee.

Cost plus agreement: Under cost plus agreement, the client agrees to pay the agency a fee
based on the cost of its work plus some agreed upon profit margin. This system requires that
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the agency keep detailed record of the cost it incurs in working on the clients account. Direct
costs plus an allocation for overhead and mark up for profits determine the amount of agency
bill.

Fee agreements and cost plus system are commonly used in conjunction with the commission
system. The fee based system can be advantageous to both the client and agency. Many
clients prefer fee or cost plus system because they receive a detailed break down of where
and how their advertising and promotion money is being spend. However these arrangements
can be difficult for the agency as they require careful cost accounting and may be difficult to
estimate when bidding for the clients business.

Incentive Based Compensation: Many clients these days are demanding more
accountability from their agencies and tying agency compensation to performance through
some type of incentive based system. While there are many variations , the basic idea is that
the agency’s ultimate compensation level will depend on how well it meets predetermined
performance goals. These goals often include objective measures such as sales or market
share as well as subjective measures such as evaluation of quality of agency’s creative work.
Companies using incentive based system determine agency compensation through media
commission, fees, bonus or some combination of these methods.

Percentage Charges: Another way to compensate an agency is by adding a mark up of

percentage charges to various services the agency purchase from the outside providers. These
may include market research , art work, printing, and other services or materials. Since
suppliers of these services do not allow the agency a commission , percentage charges cover
administrative costs while allowing a reasonable profit for the agency’s efforts.

Selection of Advertising Agency

The points that need to be considered while deciding upon an advertising agency are:

 Core Competence: With respect of agency’s core competence a client needs to

consider is the agency geared to handle the nature of jobs at the client’s end
 Service Orientation: In terms of service orientation , the client has to consider is the
agency geared for along term association, does its culture similar or dissimilar to the
client’s , is its temperament aligned to the client’s
 Category Exposure : It essentially deals with the following questions:
Does the agency has prior experience in the client’s category?
Alternatively does the agency have experience in allied categories?
Current portfolio- competitive closure: It needs careful consideration on the
following fronts: Is the agency experienced across categories to enable cross category
knowledge and insights?
Is the agency already handling a competitive business
 Resource Allocation: the following queries needs to be addressed
Is the agency assigning sufficient quota of resources to your business?
Does the agency have the breadth of expertise to provide you the right nature of
expertise
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  Remuneration:
Is the agency affordable? Is its financial expectation aligned to your budgetary
constraint.
Size: Is the agency too big for your requirement ? or is it too small

Signing up

Agencies and the clients sign up formal contracts delineating the scope of work, terms and
conditions, resource support, estimation, billing and payment procedures, legal ramifications
etc.

Following the signing up of an agency the process moves into the stage of working together
towards a common goal. Any move by the client to help agency make the transition or come
on board goes along way in strengthening the relationship and also in ensuring greater
productivity from the agency.

The help from the client comes in the form of induction process culminating in brief. This is
akin to an individual taking up a new job. The better the understanding of the company , its
business, its challenges , its compulsions, its motivators and drivers the better will be the
output of the agency.

Induction Process

To start with both the agency and the client need to have a formal induction at each other’s
offices to understand the business and its various aspects. Typically the more scientifically
oriented clients take their agency counterparts for an introduction to the customer so as to
assimilate market information first hand. This help gives the agency a feel of the market and
helps it to gauge the pulse of the consumer vis a vis the category, the client and the
competition.

Briefing Process

Most clients these days expect the agency to lay the role of marketing and communication
consultant and not just an advertising support system. The whole objective in co-opting the
agency is to ensure that the agency personnel are as equipped with the category knowledge as
erstwhile marketing departments , thereby ensuring the smooth functioning of brand related
activities at the agency end. It also empowers the agency to evolve its own analysis of market
dynamics and the imperatives required. Mot of clients are now looking forward their own
marketing strategies, evolve suitable platforms and recommend brand solutions as part of
their service deliverables.

However, the ideal situation is when the client-agency partnership is truly symbiotic
association wherein both are equal and there exist mutual respect and respect. The sharing of
knowledge and data should be two way and setting the objectives should be a combined
exercise . he absence of this harmony can create problems that may be insurmountable for the
brand in the long run.

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Agency’s Ranking

The parameters on which the agencies get ranked and which have been arrived at in
consultation and discussion with the industry itself are indicators of what an advertiser looks
for in its agency partner. The parameters across the years have been are as follows:

Client Servicing: Aspects such as ensuring timelines, understanding and implementing

strategies , having result oriented approach, them stability, good knowledge about the
brand/market etc.

Creative Ability: Aspects such as generation of new ideas , execution of ideas while
retaining brand values keeping creative on strategy

Account planning ability: aspects such as consumer insights , using research well, value add
on communication strategy , own initiatives on brand development.

360 degree capability: aspects such as agency’s ability to plan and implement
communication solutions that go beyond traditional media are through the line and are
present across consumer touch points.

Partnering with the client: aspects such as optimizing budgets, keeping brand growth in
focus maintain consistent client servicing team for long period of time etc.

Innovation and thought leadership: aspects such as being a forerunner in advertising

,innovating new models of advertising

Investment in employee: Aspect such as training, investing in good work environment,

investing in new technology overall exposure across categories.

Business development ability: aspects such as being forerunner in winning business pitches,
retaining existing clients , generating more business from existing clients

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Brand Equity Agency Reckoner- Economic Times

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Top 15 media agencies

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 LESSON 3
LEGAL AND ETHICAL ISSUES OF ADVERTISEMENT

3. STRUCTURE
3.0 Objective
3.1 Introduction
3.2 Social Issues in Advertising
3.3 Ethical and Legal Aspects of Advertising
3.4 Advertising Standard Council of India
3.5 Misleading Advertising
3.6 Ethical Issues of Advertising
3.7 Legal Aspects of Advertising
3.8 Summary
3.9 Self-assessment questions

3.0 OBJECTIVE

After reading this lesson, you should be able to:

1. understand the Social issues in advertising
2. identify misleading advertisements
3. understand the Ethical and Legal aspects of advertising

3.1 INTRODUCTION

The world of advertising has come a long way from a small industry to a large-scale industry.
It is an important source of getting information for some, while for others describe it as untrue
and misleading. In the recent times, Advertising Industry has been facing a lot of criticism as
their practices have not always been ethical. The ethical aspect of advertisements is extremely
important for restoration of our Indian culture and heritage which is getting diluted by the
western culture.
In the previous chapters, we have learnt about various aspects of advertising. It is important to
understand the general impact advertising has on the target audience as well as other viewers
and readers.

3.2 SOCIAL ISSUES

The term social means about the society and the different aspects that affect the modern society.
Social advertising is the use of advertisements to inform the public about some social issue or
to influence their behaviour.

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1. Advertising performs the role of information propagator – Advertising is a powerful
media for dis-semination of any kind of information. The information can be aggregated
to address either public at large or it could be directed to cater to a target audience.
Through advertisements the target audience in particular and the society in general get
to know about new products, services and ideas in the market. Apart from the
information about the new products and services, advertisements provide information
about diseases and epidemics like dengue and swine flu. Frequent advertisements on
vaccinations for a new born child, the timing of vaccinations and its importance for the
well-being of the child is aimed at reminding the public at large to not forget this
important aspect of child’s health. Similarly, there have been many such advertisements
on various subjects like sanitation, financial inclusion, insurance etc. that have made
public aware and have benefitted them. The society would have been less informed than
it is today, had advertising not been there.
2. Personal health and hygiene – A lot of personal care products have been introduced
in the market and the advertising of such products has helped increase awareness about
the importance to maintain personal health and hygiene. There have been regular
advertisements sponsored by the government that are aimed at sanitation; for example,
the advertisements on provision of toilets in villages. The Swachch Bharat
advertisements is the best example. These advertisements are in all forms of media be
it print, audio or audio-visual. These advertisements are targeted towards improving the
health and hygiene of all the rural folks in India as well as people residing in urban
cities.
3. Improves behaviour – Advertising improves the social and cultural behaviour of
people. Advertisements that propagate a common message for the public at large like
the advertisement cautioning against drunken driving, advertisements that exhorts
public to conserve water, grow trees and the like are aimed at inducing a common
response or behaviour from the people at large. Such advertisements bind people with
a common goal or an objective which is for the betterment of the society and the country.
In Delhi Metro, a variety of advertisements are regularly played out or displayed to
make people aware that it is a public property and these advertisements remind them to
not damage it in any manner.
4. Rights of consumers – A number of print media advertisements have highlighted the
concerns of consumers. Eg, the ‘Jaago Grahak Jaago’ campaign that talks about the
consumer protection act. There have been similar advertisements on weights and
measure that reminds public to always check for the correct weight or measurements of
the groceries/products/clothing etc purchased by them.
5. Contributes to trend setting – Advertisements that get talked about in blogs and other
media contribute to the trends being set. The onset of online marketing platforms like
Amazon, Flipkart, Alibaba, Big Basket, Swiggy etc have completely changed how
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 people do their shopping and dining. The advertisements highlighting online shopping
discounts have led more and more people to shop from the comfort of their homes.
Housewives can now take an off as per their choice and call for food from outside
courtesy Swiggy, Zomato, Food Panda etc.

3.3 ETHICAL AND LEGAL ASPECTS OF ADVERTISING

Advertising is the non-personal communication of information which is usually paid for. It is a

pervasive and powerful force shaping the attitudes and behaviour of the society.
In today’s world, advertising has a deep impact on how people understand life.
Following are the negative fallout of advertisements on the society –
1. Health concerns – Advertisements promoting consumption of cold drinks, packaged
foods, maggi etc induce primarily children, young and not so old people to consume
them. Such drinks and food if consumed on a regular basis could potentially pose a
sever health hazard.
2. Attaches too much importance to the material aspects of life – Advertising makes
us feel that everything we need is for sale and thus, easy money should be one’s primary
goal in life. People unknowingly form a belief that without quick money, one cannot
get things that would give them pleasure and joy.
3. Promotion of certain individuals as stereotypes – Advertisements promote certain
individuals like women, as stereotypes. They are always shown in the role of a mother
or housewife instead of business executives except in a few cases.
4. Advertisements make you believe that you are not completely ok the way you are
– Advertisements try their best to convince you that you are not beautiful, fair, healthy
and so on.

3.4 ADVERTISING STANDARD COUNCIL OF INDIA

"The Advertising Standards Council of India (ASCI)", was established in 1985 and is a self-
regulatory voluntary organization in the Indian advertising industry. It aims to protect the
interest of consumers and enhance the public confidence in advertising by ensuring that the
advertisements conform to its code for self-regulation. Advertisements should be fair and
truthful to the consumers and not harmful or hazardous.

3.5 MISLEADING ADVERTISING

It is often seen that some advertisements are misleading. There are laws in place to protect the
consumer from being misled about the product. Under the Consumer Protection Act (CPA)
2007, advertising is seen as misleading if it involves deceptive or false information that is likely
to cause the consumers to act in a way they might otherwise not.
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Puffery has been defined to be, “advertising or other sales/presentations which praises the item
to be sold with subjective opinion, superlatives or exaggeration, vaguely and generally stating
no specific facts.”
Examples of misleading advertising –
1. A false claim about the characteristics of the goods or service, e.g.,
• Dabur India Limited in their Dabur Chyawanprash advertisement made
unproven claims that their product gives three times more immunity to kids to
make them strong.
2. Any important information is hidden or left out, e.g.,
• GlaxoSmithKline Consumer Healthcare Ltd. in their advertisement for Horlicks
claimed that its consumption increases concentration during examination, but it
did not mention that for it to be effective, it has to be consumed for a
considerable period of time.
• Bharti AXA Life Insurance Company Limited did not mention that their
advertisement “Costs just Rs 12/- per day” is only applicable for people below
35 years of age.
3. Misrepresentation in the way the goods or services are supplied e.g. – free delivery is
advertised, but actually the delivery involves some sort of fee or charge or it comes with
a certain condition which is not clearly specified upfront.
4. Any aspect about the advertiser is misrepresented, e.g. – the business has been presented
as a member of a trade association, when it is actually not.

3.6 ETHICAL ISSUES OF ADVERTISING

Ethics means “Good Conduct” or “Conduct which is right in view of the society and the time
period”. In other words, Ethics are a set of socially defined moral principles and values that
govern a person’s behaviour and actions. Ethics is a choice between good and bad or simply
between right and wrong.
Thus, ethics in advertising refers to a set of well-defined principles that govern the
communication between the buyer and the seller. Often, advertisements claim that their product
is the best, it has unique qualities, it’s cost effective, etc. But in reality, most of these
advertisements are found to be unethical and misleading. Ethical advertisements don’t lie or
make false claims to cheat the consumer.
Today, the Advertising Industry has been facing a lot of criticism as the advertisements which
are being telecasted do not follow the norms of ethics. Advertisements should be morally,
culturally and socially ethical. In today’s competitive market, advertisers sometime follow the
unethical practices to became superior than its competitors.

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The advertising of unhealthy products like packaged food, cold drinks should be dealt carefully.
The advertisement should adhere to certain values and give true knowledge about the product’s
pros and cons to the consumers.
Deception in advertisement includes a misrepresentation or a practice that is likely to mislead.
Some of these are listed below:
1. Puffery- The exaggerated statements made by the companies that attract consumers to
a particular product or service is called puffery. Advertisers of complexion improving
creams, anti-dandruff shampoos, anti-aging creams and vitamins and dietary
supplements manufacturer are usually guilty of making overstated product claims.
Based on results of a survey done in 2003, Parle G Original Glucose Biscuit had put a
claim of being the world’s largest selling biscuits. Chocolate fragrant Axe deodorant
advertisement shows that after spraying it, the person’s body turns into a chocolate
which is practically impossible. Many colleges and education institutions misrepresent
their affiliation to a particular university in their prospectus. It violates the Consumers
Right to Information.
2. Violates Consumers’ Right to Safety by making Unverified Claims- In such
advertisements, the company who is advertising its products makes a false statement or
commitment about it. When an advertisement for cooking oil says that the use of their
oil frees the user from heart problems, the advertisement is distorting or misrepresenting
the facts. Many sharbat, juice and water manufacturing companies do not mention its
ingredients.
3. Surrogate advertising- This type of advertising involves a brand or product message
inside an advertisement which is being telecasted for another product or brand. It came
into existence after the Government banned advertisements of products that are
injurious to health or body. The main aim of this type of advertisement is to reimburse
the losses arising out of the ban on the advertisement of one particular product (e.g.
liquor). Kingfisher which is basically beer brand is one of the most successful examples
of surrogate advertising. With the extension of the Kingfisher brand to the airline sector
a great push was given to its original category, beer.
4. Women stereotype- The media has become an important source of creating stereotypes
because sometimes they are the only source of information one has about the other
groups and they often represent a partial view of those groups. Generally, the entire
household products such as washing powder, soap, etc. mainly use women in their
advertisements which adds to the stereotype in the society about the women that they
are limited only within the boundaries of their house. The famous washing powders like
Tide, Arial, Rin, etc always use a woman, in order to promote their product as well as
their brand.

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 5. Comparative advertising- According to academic literature, “Comparative ads are
those ads which involves directly or indirectly naming competitors in an ad and
comparing one or more attributes in an advertising medium." Comparative advertising
is advertising where the advertiser advertises his goods or services by equating them
with the goods or services of another brand. This is done by suggesting that either the
advertiser’s product is of the same or a better quality to that of the compared product or
by belittling the quality of the compared product. Arial washing powder advertisement
that claims to wash all kinds of strains on a white shirt while the competing powder is
shown to leave marks is an example of comparative advertising.

3.7 LEGAL ASPECTS OF ADVERTISING

Legal Regulations on Advertising

In today’s competitive market, the advertisers face several legal restrictions. Legal regulations
are imposed by the Government to check misleading and deceptive advertisements. On 1st
august,1984, Monopolistic and Restrictive Trade Practice Act was amended and Unfair Trade
Practices were covered within the scope of Monopolistic and Restrictive Trade Practice
(MRTP) Act. To protect the interest of the consumers, in 1986, Government enacted the
Consumer Protection Act. In 1987, the Government passed the Code for Commercial
Advertising on Doordarshan.
Amendments were made to these Acts from time to time, and their main aim was to promote
consumer interest and control false and deceptive advertising.
1. Unfair trade practices of MRTP Act: The MRTP Act declared certain trade practices
as unfair for preventing misleading and deceptive advertisements.
These Unfair Trade Practices are controlled by MRTP Act. Sachar Committee was
appointed to review the Monopolistic and Restrictive Trade Practice Act. It made certain
recommendations with respect to unfair trade practices, which were then incorporated
in the Monopolistic and Restrictive Trade Practice Act under the head Unfair Trade
Practices.
i) Various types of Unfair Trade Practices: The following trade practices related to
advertising are construed as Unfair Trade Practices under the Monopolistic and
Restrictive Trade Practice Act.
(a) Advertisements that falsely represent that the goods are of a specific
standard, quality, quantity, grade, composition, style or model;
(b) Advertisements that falsely represent that the services are of a specific
standard, quality or grade;

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 (c) Advertisements that falsely represent any re-built, second-hand, renovated,
reconditioned or old goods as new goods;
(d) Advertisements that represent that the goods or services have sponsorship,
approval, performance, characteristics, accessories, uses or benefits which
in reality such goods or services do not have;
(e) Advertisements that falsely represent that the seller or the supplier has a
particular sponsorship or approval or affiliation which such seller or supplier
does not have;
(f) Advertisements that make a false or misleading representation concerning
the need for, or the usefulness of, any goods or services;
(g) Advertisements that provides to the public any warranty or guarantee of the
performance, efficacy or length of life of a product or of any goods that is
not based on an adequate or proper test thereof or it never existed in the first
instance;
(h) Advertisements that makes to the public a representation in a form that
purports to be-
(i) a warranty or guarantee of a product or of any goods or services; or
(ii) a promise to replace, maintain or repair an article or any part thereof or
to repeat or continue a service until it has achieved a specified result, if
such purported warranty or guarantee or promise is materially misleading
or if there is no reasonable prospect that such warranty, guarantee or
promise will be carried out.
(i) Advertisements that materially misleads the public concerning the price at
which a product or similar products or goods or services, have been, or are,
ordinarily sold or provided, and, for this purpose, a representation as to price
shall be deemed to refer to the price at which the product or goods or services
has or have been sold by sellers or provided by suppliers generally in the
relevant market unless it is clearly specified to be the price at which the
product has been sold or services have been provided by the person by whom
or on whose behalf the representation is made;
(j) Advertisements that gives false or misleading facts disparaging the goods,
services or trade of another person.
ii) Some examples of Unfair Trade Practices:
(a) Advertisements concerning weight-loss claims of any medicine without its
proper test.
(b) Using the words such as ‘government approved’, ’government sponsored’
in the advertisements without actual approval or certification.
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 (c) An advertisement of readymade garments claimed that its colour would not
fade, but on actual use it faded, such an ad is deceptive.
(d) In the advertisement of disprin, its major side effects were not mentioned
and the advertisement was held deceptive.
iii) Inquiry against the Unfair Trade Practices can be initiated:
(a) On receiving a complaint from any consumer, registered consumer
association, or trade associations.
(b) Upon MRTP Commission’s own knowledge or information
(c) Upon a reference made by state or central government
iv) Type of order issued by MRTP Commission regarding Unfair Trade Practices:
(a) Injunction order- Passing of an injunction order means that the deceptive
trade practices should be discontinued with immediate effect and these
should not be repeated in the future.
(b) Necessary modifications- The commission may order the advertiser to make
necessary modifications or changes in the advertisement so that it does not
remain deceptive.
(c) Compensating damages- Under this order, the advertiser is directed by the
Commission to compensate the applicant for damages caused because of
deceptive advertisement.
(d) Corrective advertisement- This order requires the advertiser to rectify past
deceptive ads by making appropriate statements in their future
advertisements. The advertiser accept that their previous advertisement was
misleading and deceptive.
2. Remedy under the Consumer Protection Act 1986- Under the Consumer Protection Act
any consumer or a group of consumers together, registered consumer associations and
Central or State government can lodge a complaint against the unfair trade practices adopted
by the advertiser. This Act has a three-tier machinery for redressal of consumer grievances,
i.e. at the District, State and National level. Complaints can be made at the district forums
available in each district.
3. Code for Commercial Advertising on Doordarshan- This code suggests 33 ‘Do’s and
Don’ts’ for advertisers. Some of these are listed below:
i) Advertising shall be so designed as to conform to the laws of the country and should
not offend morality, decency and religious susceptibilities of the people.
ii) No advertisement shall be permitted the objects whereof are wholly or mainly of a
religious or political nature, advertisements must not be directed towards any
religious or political end or have any relation to any industrial dispute.
iii) The items advertised shall not suffer from any defect or deficiency as mentioned in
Consumer Protection Act, 1986.

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 iv) No advertisement shall contain references which are likely to lead the public to infer
that the product advertised or any of its ingredients has some special or miraculous
or super-natural property or quality which is difficult of being proved
v) No advertisement shall contain the words “Guarantee” or “Guaranteed”, etc. unless
the full terms of the guarantee are available for inspection by the Director General,
Doordarshan, and are clearly set out in the advertisement and are made available to
the purchaser in writing at the point of sale or with the goods. In all cases terms must
include details of the remedial action available to the purchaser. No advertisement
shall contain a direct or implied reference to any guarantee which purports to take
away or diminish the legal rights of a purchaser.
vi) Advertisements shall not contain disparaging or derogatory references to another
product or service.
vii) Any imitation likely to mislead viewers shall be avoided.
viii) Any advertisement which endangers the safety of the children or creates in them any
interest in unhealthy practices, shall not be accepted.
4. Control of Municipality over Outdoor Advertising- Municipalities are empowered to
check and regulate the outdoor advertisements in their respective areas. If the municipal
authorities find the advertisements on public places to be indecent or vulgar, then these
authorities are empowered to remove such advertisements or posters and can take action
against the advertiser.

3.8 SUMMARY

In today’s world, advertising has a deep impact on how people understand life. The world of
advertising has come a long way from a small industry to a large-scale industry. It is an
important source of getting information for some, while for others describe it as untrue and
misleading. In the recent times, Advertising Industry has been facing a lot of criticism as their
practices have not always been ethical. The ethical aspect of advertisements is extremely
important for restoration of our Indian culture and heritage which is getting diluted by the
western culture.
The term social means about the society and the different aspects that affect the modern society.
Social advertising is the use of advertisements to inform the public about some social issue or
to influence their behaviour.
1. Advertising performs the role of information propagator – Advertising is a
powerful media for dis-semination of any kind of information.
2. Personal health and hygiene – A lot of personal care products have been
introduced in the market and the advertising of such products has helped increase
awareness about the importance to maintain personal health and hygiene. These
advertisements are targeted towards improving the health and hygiene of all the
rural folks in India as well as people residing in urban cities.
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 3. Improves behaviour – Advertising improves the social and cultural behaviour
of people.
4. Rights of consumers – A number of print media advertisements have
highlighted the concerns of consumers eg. the ‘Jaago Grahak Jaago’ campaign
that talks about the consumer protection act.
5. Contributes to trend setting – Advertisements that get talked about in blogs
and other media contribute to the trends being set.
The negative fallout of advertisements on the society are given below:
1. Health concerns – Advertisements promoting consumption of cold drinks,
packaged foods, maggi etc induce primarily children, young and not so old
people to consume them.
2. Attaches too much importance to the material aspects of life – Advertising
makes us feel that everything we need is for sale and thus, easy money should
be one’s primary goal in life.
3. Promotion of certain individuals as stereotypes – Advertisements promote
certain individuals like women, as stereotypes.
4. Advertisements make you believe that you are not completely ok the way
you are – Advertisements try their best to convince you that you are not
beautiful, fair, healthy and so on.
"The Advertising Standards Council of India (ASCI)", was established in 1985 and is a self-
regulatory voluntary organization in the Indian advertising industry. It aims to protect the
interest of consumers and enhance the public confidence in advertising by ensuring that the
advertisements conform to its code for self-regulation. Advertisements should be fair and
truthful to the consumers and not harmful or hazardous.
It is often seen that some advertisements are misleading.
Puffery has been defined to be, “advertising or other sales/presentations which praises the item
to be sold with subjective opinion, superlatives or exaggeration, vaguely and generally stating
no specific facts.” Some examples of misleading advertising –
1. A false claim about the characteristics of the goods or service, e.g.,
2. Any important information is hidden or left out, e.g.,
3. Misrepresentation in the way the goods or services are supplied
4. Any aspect about the advertiser is misrepresented
Ethics means “Good Conduct” or “Conduct which is right in view of the society and the time
period”. In other words, Ethics are a set of socially defined moral principles and values that
govern a person’s behaviour and actions. Ethics is a choice between good and bad or simply
between right and wrong. Thus, ethics in advertising refers to a set of well-defined principles

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that govern the communication between the buyer and the seller. Ethical advertisements don’t
lie or make false claims to cheat the consumer.
Deception in advertisement includes a misrepresentation or a practice that is likely to mislead.
Some of these are listed below:
1. Puffery- The exaggerated statements made by the companies that attract
consumers to a particular product or service is called puffery.
2. Violates Consumers’ Right to Safety by making Unverified Claims- In such
advertisements, the company who is advertising its products makes a false
statement or commitment about it.
3. Surrogate advertising- This type of advertising involves a brand or product
message inside an advertisement which is being telecasted for another product
or brand. It came into existence after the Government banned advertisements
of products that are injurious to health or body.
4. Women stereotype- Generally, the entire household products such as washing
powder, soap, etc. mainly use women in their advertisements which adds to the
stereotype in the society about the women that they are limited only within the
boundaries of their house.
5. Comparative advertising- According to academic literature, “Comparative
ads are those ads which involves directly or indirectly naming competitors in
an ad and comparing one or more attributes in an advertising medium."
Legal regulations are imposed by the Government to check misleading and deceptive
advertisements. On 1st August,1984, Monopolistic and Restrictive Trade Practice Act was
amended and Unfair Trade Practices were covered within the scope of Monopolistic and
Restrictive Trade Practice (MRTP) Act. To protect the interest of the consumers, in 1986,
Government enacted the Consumer Protection Act. In 1987, the Government passed the Code
for Commercial Advertising on Doordarshan
Unfair trade practices of MRTP Act- The MRTP Act declared certain trade practices as unfair
for preventing misleading and deceptive advertisements. These Unfair Trade Practices are
controlled by MRTP Act. Sachar Committee was appointed to review the Monopolistic and
Restrictive Trade Practice Act. It made certain recommendations.
1. Types of order issued by MRTP Commission regarding Unfair Trade
Practices-
1. Injunction order
2. Necessary modifications
3. Compensating damages
4. Corrective advertisement
2. Remedy under the Consumer Protection Act 1986- Under the Consumer
Protection Act any consumer or a group of consumers together, registered consumer
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 associations and Central or State government can lodge a complaint against the
unfair trade practices adopted by the advertise.
3. Control of Municipality over Outdoor Advertising- Municipalities are
empowered to check and regulate the outdoor advertisements in their respective
areas. If the municipal authorities find the advertisements on public places to be
indecent or vulgar, then these authorities are empowered to remove such
advertisements or posters and can take action against the advertiser.

3.9 SELF ASSESSMENT QUESTIONS

1. What does the term social issues mean? What are the social issues in advertising?
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2. Write a short note on

a) Ethical issues of advertising.
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b) Legal aspects of advertising
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c) Misleading advertising
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3. What is the role of ethics in advertising?

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4. Give examples of puffery in advertising.

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5. Discuss the various aspects of the code for commercial advertising.
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6. Give some examples of
a) Deceptive/misleading advertisements
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b) Ethical issues of advertising
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7. Define:
a) Surrogate advertising
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b) Ethics
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c) Competitive advertising
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8. Enlist the negative fallout of advertisement on the society.
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9. How does advertising perform the role of information diffuser?
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10. Elaborate on the types of order issued by MRTP Commission regarding the Unfair Trade
Practices.
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 ETHICAL AND LEGAL ASPECTS OF ADVERTISING
Every profession is governed by “law of the land” and advertising is no exception. Over a
period of time, judgements emanating from various court of law add to new interpretation
and enactments. Advertising law refers to the laws defining the ways in which products,
services or ideas can be advertised in terms of placement, timing and content. Similarly every
profession also develops code of conduct for its professionals, both the laws and code of
ethics serve as a beacon for practitioners.

It is interesting to note that there is a slight difference in the degree to which the constitution
guarantee freedom of speech and expression can be enjoyed by the advertising industry, when
compared to other branches of mass media. Article 19(1) states simply “ All citizens shall
have the right to freedom of speech and expression” The companion article 19(2) qualifies
this right by providing that the state can impose reasonable restrictions on its exercise “in the
interest of sovereignty and integrity of India , friendly ties with foreign states, public order,
decency and morality or in relation to contempt of court , defamation or incitement to an
offence”

Legal Aspects of Advertising

 The Indecent Representation of Women Prohibition Act, 1986: The act defines
the indecent representation of women likely to deprave, corrupt or injure the public
morality and forbids the depiction of women in an indecent and derogatory manner
 The Emblem and Names (Prevention and Proper Use) Act, 1950: forbids the use
by any private party of certain names and emblems etc. Many companies may like to
use pictures of political dignitaries and the national emblem to commemorate certain
national days. In such a circumstance permission need to be sought beforehand
 The Prevention of Insults to National Honor Act 1971: forbids bringing into
contempt the national flag or Constitution of India in any manner
 The Drugs and Magic Remedies (Objectionable Ads) Act, 1954: prohibits ads for
the products and services claiming to cure medical ailments tantra, mantra, kavach,
miraculous power for cure, treatment or prevention of any diseases
 Indian Penal Code, 1860: makes it punishable offence to advertise any obscene
publication or distribution of unauthorized lotteries , promote by words spoken or
written or by signs or by visual representations create hatred between different
religious, racial groups
 Cigarettes and other Tobacco Products(Prohibition of Advertisement and
Regulation of trade and commerce, production, supply and distribution Act),
2003: This act prohibits all direct and indirect advertisement that suggest or promote
the use of the tobacco products. Advertisement include all types such as display ads,
films or video tapes with ads, leaflets, handbills, documents, pamphlets, transit ads
etc .

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  Consumer Protection Act 1986: This act provides for the better protection of the
interests of consumers and for the purpose establishes consumer councils for the
settlement of the consumer disputes. Under this act consumer, their representatives,
voluntary consumer organisations and the government can complain against unfair
trade practices, defective or hazardous products etc. The Act serves two purpose: one
to provide education to consumer regarding their rights and secondly to provide for a
simplified inexpensive and speedy remedy for redressal of consumer grievances.
 SEBI (disclosure and Investor protection), Guidelines 2000: SEBI issued
guidelines on advertisements to ensure investor protection from unscrupulous
practices of companies: Advertisement should be truthful and not contain information
that is untrue or misleading, Advertisement inviting people to subscribe for any issue
shall not contain inaccurate portrayal of past performance of company or portrayal in
a manner that implies past gains or income will be expected in future , language used
is not clear or understandable.
 Competition Act, 2002: intend to prevent practices having adverse effect on
competition to promote and sustain competition in market
Disparagement: when advertiser intentionally make false or misleading negative
remark against competing brands.(Refer Misleading Advertising for details)
 The Prize Competition Act, 1955: prohibits the publication of matter with
unauthorized prize, competition while the Prize Chits and Money Circulation
Schemes(Banning) Act, 1978 imposes a similar prohibition in respect of chits and
money circulation schemes.

Ethics are set of moral principles that guides action and creates a sense of moral behaviour.
Many laws are put into force that determine what is permissible in advertising. However not
every issue is controlled by rules. Marketers are often faced with decisions regarding
appropriateness of their actions which are based on ethical considerations rather than what is
within the law or industry guidelines. There is considerable overlap between what many
consider to be ethical issues in advertising and the issues of manipulation, taste, and the
effects of advertising on values and lifestyle.

Sex appeals and/or nudity used simply to gain consumer attention: which is not even
appropriate to the product being advertised also is in poor taste. With the increasing level of
clutter in the advertising environment, advertisers continue using appeals that attract the
attention of the consumers but offend many people.

The primary criticism of advertising is that it is misleading and deceives consumers. There
are people who believe everything they see or hear. Deception also occur as a result of how
consumer perceive the ad and its impact on their opinion and beliefs. Puffery; is exaggerating
with superlatives or subjective opinions. Though certain degree of exaggeration is considered
normal what bothers is the extend to which advertisers knowingly make false, untruthful or
misleading claims.

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The most fundamental objective of all advertising is to cut through the clutter, capture
attention and create an impression that lingers on the memory of its target audience. While
doing so advertisers create desires, shapes attitude alter social values and raise many ethical
questions.

Advertising Standard Council of India(ASCI) work to maintain the ethical code.

The Advertising Standards Council of India (ASCI), established in 1985, is committed to the
cause of Self-Regulation in Advertising, ensuring the protection of the interests of consumers.
ASCI was formed with the support of all four sectors connected with Advertising, viz.
Advertisers, Advertising Agencies, Media (including Broadcasters and the Press) and others
like PR Agencies, Market Research Companies etc.

ASCI has adopted a Code for Self-Regulation in Advertising. It is a commitment to honest

Advertising and to fair competition in the market-place. It stands for the protection of the
legitimate interests of consumers and all concerned with Advertising - Advertisers, Media,
Advertising Agencies and others who help in the creation or placement of advertisements.

ASCI is a voluntary self-regulatory organization, registered as a not-for-profit company under

section 25 of the Indian Cos. Act .ASCI is not a Government body. It is a voluntary Self
Regulatory Organization. However, ASCI is represented in all committees working on
advertising content in every Ministry of the Government of India.

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

 Honest Representation: Truthful and honest to consumers and competitors

 Non Offensive to public : Within the bounds of generally accepted standards of
public decency and propriety
 Against Harmful products/situations: not used indiscriminately for promotion of
products, hazardous or harmful to society or to individuals particularly minors , to a
degree particularly unacceptable to society at large
 Fair in competition: not derogatory to competition

The Code’s rules form the basis for judgement whenever there may be conflicting views
about the acceptability of an advertisement, whether it is challenged from within or from
outside the advertising business. Both the general public and an advertiser’s competitors have
an equal right to expect the content of advertisements to be presented fairly, intelligibly and
responsibly. The Code applies to advertisers, advertising agencies and media.

Responsibility for the observance of this code

The responsibility for the observance of this Code for Self-Regulation in Advertising lies
with all who commission, create, place or publish any advertisement or assist in the creation
or publishing of any advertisement. All advertisers, advertising agencies and media are

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expected not to commission, create, place or publish any advertisement which is in
contravention of this 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
significant number of consumers in India.

Code and the law

The Code’s rule are not the only ones to affect advertising. There are many provisions, both
in the common law and in the statutes, which can determine the form or the content of an
advertisement. The Code is not in competition with law. Its rules, and the machinery through
which they are enforced, are designed to complement legal controls, not to usurp or replace
them.

Consumer Complaint Committee(CCC)

ASCI encourages the public to complain against the ads which they may be unhappy with
any reason and ensures that each complaint receives prompt and objective consideration by
an impartial Consumer Complaints Committee(CCC). It takes 4 to 6 weeks from the date
CCC receive a "complete" complaint. This should include full particulars of the Print
Advertisement, the name and date of Publication, and clipping or copy of the print
Advertisement .In case of a TVC airing, the complaint is required to have the Channel, date
and time of the TVC. reasonable description of an A/V, specific claims or visual depictions
which are considered to be false, misleading or objectionable and the reasons for the same. In
the light of the code, the committee asks the agency or the advertiser to comment and submit
the substantiation .

The standards of conduct laid down by ASCI in the following four chapters of its code are
minimum standards of acceptability

Chapter I

To ensure the Truthfulness and Honesty of Representations and Claims made by

Advertisements and to Safeguard against misleading Advertisements following code was
established:

 Advertisements must be truthful. All descriptions, claims and comparisons which

relate to matters of objectively ascertainable fact should be capable of substantiation.
 Where advertising claims are expressly stated to be based on or supported by
independent research or assessment, the source and date of this should be indicated in
the advertisement.
 Advertisements shall not, without permission from the person, firm or institution
under reference, contain any reference to such person, firm or institution which
confers an unjustified advantage on the product advertised or tends to bring the
person, firm or institution into ridicule or disrepute.

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  Advertisements shall neither distort facts nor mislead the consumer by means of
implications or omissions. Advertisements shall not contain statements or visual
presentation which directly or by implication or by omission or by ambiguity or by
exaggeration are likely to mislead the consumer about the product advertised or the
advertiser or about any other product or advertiser
 No advertisement shall be permitted to contain any claim so exaggerated as to lead to
grave or widespread disappointment in the minds of consumers

Chapter II

Advertisement should contain nothing indecent, vulgar, especially in depiction of women, or

nothing repulsive which is likely, in the light of generally prevailing standards of decency
and propriety, to cause grave or widespread offence.

Chapter III
To safeguard against the indiscriminate use of advertising in situations or of the promotion of
products which are regarded as hazardous or harmful to society or to individuals, particularly
minors, to a degree or of a type which is unacceptable to society at large.

No advertisement shall be permitted which:

(a) Tends to incite people to crime or to promote disorder and violence or intolerance.
b) Derides any race, caste, colour, creed, gender or nationality
(c) Presents criminality as desirable or directly or indirectly encourages people - particularly
minors - to emulate it or conveys the modus operandi of any crime.
(d) Adversely affects friendly relations with a foreign State

 Advertisements addressed to minors shall not contain anything, whether in illustration

or otherwise, which might result in their physical, mental or moral harm or which
exploits their vulnerability. For example, Advertisements

a) Should not encourage minors to enter strange places or to converse with strangers in an
effort to collect coupons, wrappers, labels or the like.
(b) Should not feature dangerous or hazardous acts which are likely to encourage minors to
emulate such acts in a manner which could cause harm or injury
(c) Should not show minors using or playing with matches or any inflammable or explosive
substance; or playing with or using sharp knives, guns or mechanical or electrical appliances,
the careless use of which could lead to their suffering cuts, burns, shocks or other injury.
(d) Should not feature minors for tobacco or alcohol-based products.
(e) Should not feature personalities from the field of sports, music and cinema for products
which, by law, either require a health warning in their advertising or cannot be purchased by
minors.

 Advertisements shall not propagate products, the use of which is banned under the
law

 Advertisements should contain nothing which is in breach of the law nor

omit anything which the law requires

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Chapter IV
To ensure that Advertisements observe fairness in competition such that the
Consumer’s need to be informed on choice in the Market-Place and the Canons of
generally accepted competitive behaviour in Business are both served.

Advertisements containing comparisons with other manufacturers or suppliers or

with other products including those where a competitor is named, are permissible in
the interests of vigorous competition and public enlightenment, provided:

(a) It is clear what aspects of the advertiser’s product are being compared with what
aspects of the competitor’s product.

(b) The subject matter of comparison is not chosen in such a way as to confer an
artificial advantage upon the advertiser or so as to suggest that a better bargain is
offered than is truly the case.

(c) The comparisons are factual, accurate and capable of substantiation

(d) There is no likelihood of the consumer being misled as a result of the

comparison, whether about the product advertised or that with which it is compared.

(e) The advertisement does not unfairly denigrate, attack or discredit other products,
advertisers or advertisements directly or by implication

Advertisements shall not be similar to any other advertiser’s earlier run

advertisements in general layout, copy, slogans, visual presentations, music or
sound effects, so as to suggest plagiarism

General rules of conduct in advertising:

 Advertising shall be designed as to conform to the laws of the country and

should not offend the morality, decency, and religious susceptibilities of the
people.
 No advertisement shall be permitted that:

 Derides any race, caste, color, creed and nationality

 Is against any of the directive principles or any other provision of the
constitution of India
 Tends to incite people to crime, cause disorder or violence or breach of law
or glorifies violence or obscenity in any way
 Presents criminality as desirable
 Adversely affects friendly relations with the foreign state
 Exploits national emblem or any part of the constitution or the person or
personality of a national leader or dignitary
 Relates to or promote cigarettes and tobacco products , liquor, wines and
other intoxicants

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  No advertisement shall be permitted the objects whereof are wholly or
mainly of religious or political end or have relation to any industrial dispute
 Ads for services concerned with the following shall not be acceptable:

 Money lenders
 Chit Funds
 Unlicensed Employment Agencies
 Saving schemes and lotteries other than those conducted by the central or
the state government organizations, nationalised and recognised banks and
public sector undertakings.

Misleading Advertising

Misleading advertising means any advertising which in any way deceives or is likely to
deceive consumers and is likely to affect their economic behaviour or injure a competitor.
Thus false or deceptive advertising is also a type of misleading advertising.

Following practices also comprise misleading advertising:

Puffery or exaggeration: even law permits trade puffing or exaggerations , but subjective
statement of opinion about the product’s quality such as best or super , puffery means
statements that praise the advertised item with subjective opinions, superlatives, vague
statements containing no specific facts

Palming off: occur when a producer creates an impression that his goods or services are
offered by competitor with a view to gain commercial advantage

Disparagement: when advertiser intentionally make false or misleading negative remark

against competing brands so as to establish the superiority of its products.

Bait and switch advertising: when an advertiser advertise the products or services at a
specified price when they are aware that they would be unable to supply reasonable quantities
at that price for a reasonable period. Special offers are made to draw customers to a store
when in fact they do not have a fair chance of buying the advertised product at the said
price.

In India, misleading advertisements are dealt with under the Consumer Protection Act and the
self regulatory ASCI code .

Select Recent ASCI Decisions

COMPANY: Honda Cars India Ltd

PRODUCT: Honda City
COMPLAINT: “India's Most Fuel Efficient Car”

DECISION: UPHELD
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The CCC viewed the print Ad and considered the Advertiser’s response. Advertiser did not
provide comparative data with other competitive brands to prove that Honda City is “India’s
most fuel efficient car”, which was not substantiated. The CCC concluded that the decision of
complaint being Upheld stands on review as the advertisement contravened Chapter I.1 of the
Code.

COMPANY: Marico Ltd

PRODUCT: Nihar Naturals Shanti Amla Hair Oil

COMPLAINT: Enriched with 500% vitamin E

NATURE OF COMPLAINT: This claim needs to be substantiated with necessary support

data.

DECISION: UPHELD

The CCC viewed the Website Ad and considered the Advertiser’s response. The CCC
concluded that the claim, “Enriched with 500% vitamin E”, was misleading as the
comparison was being made with a year 2010 marketed product and contravened Chapter I.4
of the ASCI Code. The complaint was UPHELD.

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COMPANY: Hindustan Unilever Ltd
PRODUCT: Fair & Lovely

COMPLAINT: The TVC suggests that fairness is essential for a girl to match a boy in status
or essential when a girl is to get married or grow up in hierarchy at work place

DECISION: UPHELD

 The CCC viewed the TVC and considered the Advertiser’s response. The CCC
concluded that the TVC conveys that fairness is essential for a girl to get married,(the
link to marriage was objectionable) or for a woman to achieve financial status. The
TVC derides colour and gender and contravened Chapter III.1 (b) of the Code. The
complaint was UPHELD.

COMPANY: Adani Wilmar Ltd

PRODUCT: Fortune Rice Bran Health

COMPLAINT:The ad shows, Dr. Anjali Mukerjee stating, "Make a Healthy Choice for your
Family.” The advertiser should provide 1. Evidence to prove credentials of Anjali Mukerjee
as quoted in the ad. as a "Dr" 2. Substantiate the testimonial by providing (i) consent by
Anjali Mukerjee, (ii) the claim being current (iii) endorsement is verifiable

DECISION: UPHELD

The CCC viewed the print Ad and considered the Advertiser’s response. The CCC concluded
that the certificate pertaining to the credential of Ms Anjali Mukherjee permits her to only
issue sick & leave certificate and that too only in the State of West Bengal. The endorsement
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by Ms Anjali Mukherjee as a Doctor or Nutrition Expert “Make a Healthy Choice for your
family”, was not substantiated and was considered to be misleading. The advertisement
contravened Guidelines for Advertising of Foods & Beverages as well as Chapters I.1 and I.4
of the ASCI Code. The complaint was UPHELD.

COMPANY: Apple India Private Limited

PRODUCT: iPhone 5s)

COMPLAINT:The ad mentions that, the effective price of iPhone 5S as Rs. 41,010. This
appears to be incorrect and to be a misrepresentation of facts. The ad shows breakup of the
MRP. It shows down payment and EMI options and also shows Cash Back benefit. However
the last column of their table shows the "Effective Price" of the phone as Rs. 41,010. The

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Effective Price is actually Rs. 55,890. At best, the effective price from MRP before EMI is
Rs. 51,000.

DECISION: UPHELD

The CCC viewed the print Ad, and concluded that the Ad distorts facts and is misleading.
The advertisement contravened Chapter I.4 of the ASCI Code. The complaint was UPHELD.

COMPANY: Career Launcher India Private Limited

PRODUCT: Career Launcher

COMPLAINT:

1. All India Leader in CLAT & IPM. 2. India's No.1 Institute for Law Entrance Exam. 3.
Confirm your seat in your dream institute in just 45 days

DECISION: UPHELD

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The CCC viewed the print Ad and considered the Advertiser’s response. The CCC concluded
that the claims, “All India Leader in CLAT & IPM”, “India's No.1 Institute for Law Entrance
Exam”, were not substantiated and no comparative data was provided for all India level. The
claim, “Confirm your seat in your dream institute in just 45 days”, was misleading by
ambiguity as it was the net of number of days on which the classes are held. The
advertisement contravened Guidelines for Advertising of Educational Institutions and
Programs as well as Chapters I.1 and I.4 of the ASCI Code. The complaint was UPHELD.

COMPANY: Hitachi Home & Life Solutions (India) Ltd.

PRODUCT: Hitachi AC

COMPLAINT:Hitachi AC can be purchased with 0% interest and no processing fees. RBI

had banned the 0% interest schemes in India. RBI/2013-14/292 DBS.CO.PPD No. 3578
/11.01.005 /2013-14 September 17, 2013

DECISION: NOT UPHELD

The CCC viewed the print Ad and considered the Advertiser’s response. The CCC concluded
that the claim of 0% financing and such communication for Credit card was not false and is
permissible for Non-Banking Financial Company. The complaint was NOT UPHELD.

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COMPANY: Dabur India Limited
PRODUCT: Odomos Naturals

COMPLAINT:1. My child will not get Dengue. When a child goes out to play, Every mom
thinks in this manner. 2. When you can give complete protection to your child, with Odomos,
then why not? 3. Odomos - All day protection from mosquitoes*

DECISION: UPHELD

The CCC viewed the print Ad and considered the Advertiser’s response. The CCC concluded
that the claims “My child will not get Dengue. When a child goes out to play, every mom
thinks in this manner” was not objectionable. This complaint was NOT UPHELD. Claim
substantiation was provided for claims “When you can give complete protection to your
child, with Odomos, then why not” AND “Odomos - All day protection from mosquitoes*”;
However, as this level of protection was dependent on the applied quantity and frequency of
application. The print ad was misleading by omission as it does not provide clear instruction
of the level of application and period for reapplication. The advertisement contravened
Chapter I.4 of the ASCI Code. This complaint was UPHELD.

COMPANY: Idea Cellular

PRODUCT: Idea Cellular

COMPLAINT:TVC gives an impression to viewers that the only way to test genuineness of a
Pashmina Shawl is to check whether it can be passed through a finger ring. In fact the GI
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gives specifications for Kashmir Pashmina which tests the true quality of a pure Pashmina
shawl. Hence all other forms do not conform to the quality manual under GI can be termed as
spurious.

NATURE OF COMPLAINT:

Accordingly, the following conclusions can be drawn - A ring test is not at all a confirmatory
test for certifying quality of a genuine Pashmina product. It fact, it is learnt that shawls made
out of synthetic fibre like viscose can also easily pass through a finger ring. That the
parameters under the GI Act are the only testing parameters to check the genuiness of
claimed Pashmina

DECISION: UPHELD

The CCC viewed the TVC and considered the Advertiser’s response. A ring test is not a
confirmatory test for certifying quality of a genuine Pashmina product and the claim in the ad
was not substantiated with authentic data. A non-Pashmina material could also pass the ring
test. The CCC concluded that the Ad distorts facts and perpetuates a layman’s belief about
testing Pashmina and therefore, is misleading. The advertisement contravened Chapters I.1
and I.4 of the Code. The complaint was UPHELD

COMPANY: L'Oreal India Private Limited

PRODUCT: Garnier Fructis Long & Strong

COMPLAINT:1. Now Get Even Stronger Hair. 2. Improved Formula.

DECISION: UPHELD

The CCC viewed the TVC and considered the Advertiser’s response, and concluded that the
claim of “Improved formula” was not adequately substantiated by providing comparison with
the old formula. The claim of “Now Get Even Stronger Hair” was not adequately
substantiated as the baseline values for the performance of non -conditioning shampoo were
different and the results were not comparable for the old and new formula. The advertisement
contravened Chapter I.1 of the ASCI Code. The complaint was UPHELD.

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COMPANY: TVC Sky Shop Limited
PRODUCT: Shri Lakshmi Kuber Dhan Varsha Yantra

COMPLAINT:The ad suggests that the product is for attaining better finances and assets.
According to Advertising Code – 7 [5], no advertising shall contain references which are
likely to lead the public to infer that the product advertised or any of its ingredients has some
special or miraculous or super-natural property or quality, which is difficult of being proved.

NATURE OF COMPLAINT:

According to Advertising Code -7 [11], no programme shall carry advertisements exceeding

twelve minutes per hour, which may include up to ten minutes per hour of commercial
advertisements, and up to two minutes per hour of a channel’s self-promotional programmes.
Moreover, the duration of some of the advertorials is as long as 15-16 minutes which itself is

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a violation of Advertising Code – 7 [11]

DECISION: UPHELD

The CCC reviewed the relevant parts of the TVC and considered the Advertiser’s response.
The CCC concluded that the claim that the “product is for attaining better finances and
assets”, was not substantiated with supporting data. The advertisement contravened Chapter
I.1 of the ASCI Code as well as Advertising Code – 7 [5] under the Cable Television
Network Rules, 1994. The complaint was UPHELD.

COMPANY: LG Electronics India Pvt. Ltd

PRODUCT: LG Air Conditioners

COMPLAINT:The ad contains a disclaimer / written information on the screen but in very

small font, which is illegible and unreadable.

DECISION: UPHELD

The CCC viewed the TVC and considered the Advertiser’s response. The CCC concluded
that the content / text shown in the TVC was not legible, and the Ad contravened the ASCI
Guidelines on Supers. The complaint was UPHELD

Economic and Social issues of Advertising

Economic Issues

Effect on the value of products or services: Advertising is an expenditure incurred to

inform, persuade, remind and reinforce consumers to purchase the advertised product; it
entails money outflow which adds to the cost of the product, thus making the product costlier
without any value increment in the product. However studies have shown that while an ad
may not speak directly about the product’s quality, the image created by advertising may
imply quality and make the product more desirable thus, adding value to the product.
Advertising also adds value by educating consumers about the various types of products
available, different uses of the product etc. thus enabling them to make informed choice and
facilitate purchasing.

Effect on price: Advertising adds cost and affect prices; in case if companies stop
advertising , product would cost less and would be available to consumers at lower prices.
This is the major area of continuing debate. The proponents for advertising opines that
advertising help lower the overall cost of the product by informing vast number of people
about the offering thus entails large scale operations which brings in the economies of scale
that actually lowers the cost of the product more than enough to offset the increment in cost
entailed by spending on advertising.
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Effect on Competition: Advertising creates barrier to entry for smaller firms with fewer
resources who cannot match large firms with huge advertising budget. High cost may inhibit
the entry and brands of large firms probably benefit greatly from this barrier. This results in
decrease in competition and increase in the price of the product. But the advocates of
advertising have different views. They say it is unrealistic to single out advertising as the sole
cause of barrier to entry or dominance of a firm in the market. There are several other
important factors such as product quality, price, distribution system, research and
development, competitive strategies adopted by the firm etc. Market entry against the large
firms is difficult not because of advertising but because of the investment required in plant
and machinery, research and development etc.

Social Issues

The source of controversy over advertising stems from the way it is used by advertisers in
accomplishing market or communication objectives which influence social values, lifestyles
and society’s taste.

Social and Cultural values: It is generally agreed that advertising exerts a powerful social
influence and is criticised for encouraging materialism. Advertising is blamed for depicting
stereotypes and controlling the media.

Materialism is the tendency to accord undue importance to material interests. Many say
advertising promotes materialism, critics of advertising say that it should be used only to
provide information on the product’s quality, features or price etc and not attempt to persuade
consumers by playing on their emotions, anxieties and psychological needs fostering
disconnect and exploiting them to purchase things they do not need. To counter this basis the
proponents for advertising argue that consumer whose basic needs have been fulfilled can be
interested in fulfilling higher order needs for instance a consumer may buy an expensive
television with ultra loaded features to enjoy high quality video and music than simply
acquire a material possession to impress someone.

There is no doubt that advertising and the advertised products are a part of our culture and
influence it in some way. However advertising cannot be said to have the power to dominate
the forces of religion, family, literature etc that contribute to the values of the society .
Proponents of advertising argue that advertising merely reflects the tastes and values of
society’s and does not shape them. Advertising keep pace with the dynamic market
conditions and what rather is seen as materialism is a matter of improved standard of living.

Stereotyping ignores differences among individuals and presents individual or group in an

unvarying pattern. Critics often point out that advertising perpetuates stereotyping of women,
advertising has failed to portray the changing role of women in the society. Depiction of
women in settings such as family illness, cooking, children, approval by mother in law ,

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marriage etc have shown them as dependent on men, less intelligent and hardly ever in
authoritative roles.

There is perceptible improvement in this regard as advertisers have started to recognise the
role of the working women in family affairs and in decision making. Women are often
depicted in diverse roles that reflect their changing role in the society as they are increasingly
entering into professional, managerial , technical or administrative careers.

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