Communication process refers to the interchange of information between two or

more people. For the communication to triumph, both the parties must be able to
exchange and understand the information. If the flow of information is obstructed
or hindered for some reason, the communication process fails.

Advertising communication can be defined as a perception process of the source,

a message, a communication channel, and a receiver. A receiver might sometimes
become the source of information by communicating the message to family and
friends.

1. SOURCE:

• Advertising communication process begins with the sender, who is also

called the communicator or the source. A source is an origin or the point at
which the message originates in an advertising communication system.
• The person who initiates the communication process is normally referred
to as the source. The source or the sender develops ideas, encodes and
transfers them to the receiver.

2. MESSAGE:

• Message refers to the content, idea, thought, feeling or the opinion that
the sender wants to convey to the receiver.
• It is a key that triggers the recipient, to respond to the sender.

3. MEDIA:
 • Media refers to the various channels or a medium that is used or to be used
to convey your message.
• Medium is the means by which a message is transmitted to the receiver.
• The medium may include verbal channels like telephone or a word-of-
mouth communication or a non-verbal communication such as e-mail or
text messages.

4. RECEIVER:

• The receiver or the interpreter in an advertising communication system

refers to the target audience or the person to whom the message is
directed.
• The receiver can be defined in terms of audience segmentation variables
like lifestyle, demographics, benefits sought and so on.

5. FEEDBACK

• Feedback is a significant element of the communication process, as it

empowers the sender to measure the efficiency of the message.
• It enables the sender to analyses the exact interpretation of the message by
a decoder.

Types of advertisement:-

Selection of the perfect advertising media where the advertisements will be

presented is really important for the success of the marketing
campaign. There are several advertising which can be categorized under five
heads:

• Print Advertising
• Broadcast Advertising
• Outdoor Advertising
• Digital Advertising
• Product/Brand Integration
 1. Print Advertising

One of the oldest and most popular media of advertising, print media has
better reach and can even be used for copy extensive advertisements.

Print advertising includes –

• Newspaper advertisements – Newspapers have the highest reach among

other types of print advertisements. They are in the regional languages
and have a narrower reach as compared to others because of its
economical price.
• Magazine advertisements – Magazines can be used for niche
advertisements. They have a higher conversion rate as the
advertisements are targeted to the right audience.
• Brochures – Brochures impart everything a customer should know about
the product or a brand. They are targeted and distributed at a later
stage to educate customer more about the brand.
• Fliers – Fliers are handy and have a great local reach. Fliers turn out to be
very useful for local businesses.

2. Broadcast Advertising

Technological advancement has resulted in increased returns from broadcast

advertisements. Broadcast mediums include audio-visual information and
entertainment mediums like radio, television, etc. It’s one of the most
effective media for advertising as a story can be better understood if moving
images and audio is used.

Broadcast advertisements can be classified into

• Television Advertisements – Television advertisements are usually

focused on brand building and creating brand awareness among
prospective customers. Television advertisements have an edge
over print advertisements as the people who can’t read can also
understand the message through audio-visual ads.
 • Radio advertisements – Radio advertisements have both local and
national reach and are economical in terms of ROI. These can be in
the regional language and have a great recall value.

3. Outdoor Advertising

As the name suggests, Outdoor advertising involves placing fixed (printed or

audiovisual) advertisements in locations most visited by the target audience.

Outdoor advertising can be classified into –

• Banners & Hoardings

• Flags
• Wraps
• Events
and sponsorship
• Automobiles

4. Digital Advertising

Digital advertising refers to advertisements that are digitally displayed over

the internet or other digital devices. This includes the Internet, media devices
like smartphones, tablets, etc. Big Data has helped digital marketers to carry
extremely targeted advertisements and get the most out of their
investments.

Digital advertising include advertisements on –

• Internet
• Mobile phones
• Media devices other than broadcast media. Devices like Kindle,
Echo, Google home, etc.

5. Brand/Product Integration

Brand Integration allows a brand to reach out to the consumers by integrating

the brand within the entertainment media content which is consumed by the
users as entertainment. The brand or the product is interwoven within the
script, showcasing products, functions and unique features.
 In simple words, brand Integration is nothing but a form of authentic
storytelling which is crafted according to the trend and needs and wants
of the consumer.

Objectives of Advertising:-

1) Introduce a product
The most common reason Advertising is used is to introduce a new product in the
market. This can be done by existing brands as well as new brands. Have a look at
the latest IPhone in the market or a Samsung smartphone and you will find a lot
of advertisement for these new products. The objective of advertising here is to
tell customers – “Here is the new product we have launched”

2) Introduce a brand
There are many startups in the market today and many of them are services.
Services are generally marketed as a brand rather than marketing their individual
service product. Thus, Uber will market its own brand and introduce that Uber has
started servicing customers in a new market. Same goes for Oracle or Accenture –
Companies which market their brand and their presence in the market rather
than marketing an individual product.

3) Awareness creation
According to the AIDA model, the most important job of advertising is to get
attention which is nothing but Awareness creation. Advertising needs to capture
the attention of people and make them aware of the products or their features in
the market.

4) Brand building
When a brand regularly advertises and delivers quality products and fulfills the
promises it makes, automatically the value of the brand is built. However, there
are many other aspects of brand building. One of the first ones is to advertise via
ATL and BTL campaigns etc.

5) Increase sales
Naturally, with so many steps being taken to advertise the product, it is no doubt
that one of the objectives of advertising is to increase sales. Many a times this
objective is achieved via advertising. However, if the campaign is improper or the
audience is not targeted properly, then advertising can fail in its objective.

6) Increase profits
With the value being communicated and the brand being differentiated as well as
sales being increased, there is no doubt that advertising can contribute a lot to
increasing profits. Advertising should never be looked at as an expense or a
liability. In fact, it is an investment for a firm just like a brand is an investment.

7) Create Desire
Again, referring to the AIDA model, one of the key factors in advertising is to
create a desire for the product so that the customer wants the product. Brands
which are known to do this are BMW, Audi, Harley Davidson, Adidas and others.
These brands are master of advertising where they create so much desire for the
product that the customer absolutely wants a product even if he doesn’t need it.

What is audience analysis?

Audience analysis involves identifying the audience and adapting a speech to their
interests, level of understanding, attitudes, and beliefs. Taking an audience-
centered approach is important because a speaker’s effectiveness will be
improved if the presentation is created and delivered in an appropriate manner.
In consumer insights, audience analysis refers to researching the interests,
preferences, demographic, location, and other aspects of a group. This could be a
broad audience like “all Tumblr users” or a much narrower group like “millennial
female fans of The Bachelor in Massachusetts.” The insights you gain from
audience analysis depend on the depth of your research.
While your own audience is a great place to start with audience analysis, looking
at your competitor’s audience and comparing it to your own can help you gain
insights into how to stay ahead of the competition.

Advertising Budget
Advertising Budget Definition
An advertising budget is an amount set aside by a company planned for the
promotion of its goods and services. Promotional activities include conducting a
market survey, getting advertisement creatives made and printed, promotion by
way of print media, digital media, and social media, running ad campaigns, etc.

Process of Creating Advertising Budget

• Setting advertising goals based on the company’s objectives.
• Determine the activities that are required to be done.
• Preparing the components of the advertising budget;
• Getting the budget approved by management;
• Allocation of funds for activities proposed under the advertisement
plan;
• Periodically monitoring the expenses being incurred during the
advertising process;

Advertising Budget Methods

• Percentage of Sales: Under this method, the advertising budget is set
as a percentage of either the past sale or expected future sales. Small
businesses usually use this method.
 • Competitive Parity: This method advocates that a company sets an
advertising budget similar to the one set up by its competitor to yield
similar results.
• Objective and Task: This method is based on the advertising
objectives of this method. Once the objectives are decided, the cost
is estimated to complete those objectives, and accordingly, a
marketing budget is set.
• Market Share: In this method, the advertising budget is based on a
company’s market share. For a higher market share, less marketing
budget is set.
• All available Funds: This is a very aggressive method under which all
available profits are allocated towards advertising activities. This
method can be used by start-up businesses that need advertisements
to attract customers.
• Unit Sales: Under this method, the advertisement cost per article is
calculated and based on the total number of articles, it is set.
• Affordable: As the name suggests, the company sets its budget based
on how much it can afford.

Determinants & major methods:-

1. The Product should have Primary Demand:
A major criterion for primary demand advertising is whether the generic product
provides important advantages for the consumer, when compared to other
products that are capable of satisfying the same wants. A product enjoys primary
demand when it is desirable. Flattering illustrations or glorifying descriptions are
not sufficient to make the people buy. The stronger and more basic the
consumer-wants are satisfied with the new product, the greater the primary
demand advertising opportunity will be, that is, advertising is beneficial only
when market demand is on the increase.

2. Advertising must be Continuous:

There is advertisability expansion, if continuous advertising is adopted. Rare
appearance of advertisement is insufficient to draw the attention of new or old
customers. There are many advertisers, who constantly bring the products or
services to the attention of readers.

3. Greater Chances for Product Differentiation:

There must be opportunity to differentiate the products. This is a governing factor
of advertisability. Product differentiation is the step to create preferences in the
mind of customers. That is possible through colour, name, shape, size, package,
taste etc. of the product. Product differentiation makes the public believe that a
product is superior to others. For instance, appliances, automobiles or cosmetics
are easier to advertise than wheat or rice. The more a brand differs from the
competing brands of the same product, the greater the opportunity.

4. Product should have Hidden Qualities:

The advertiser can inform the customers about the hidden qualities of a product
through advertising. If the consumer can evaluate the qualifies of the product at
the time of purchase, there is less opportunity for selective-demand advertising,
than if the product has hidden qualities which, to be evaluated, need purchase
and use.

5. Presence of Power of Emotional Buying Motives:

The buying motives are in the minds of consumers but not in the product. The
buying motives are just like petrol, with which a car or scooter moves on the
roads. By making appeals of gains, economy, pride, prestige etc. of the product,
emotional buying motives can be increased.

6. Sufficient Funds:
A firm must have sufficient funds to support an advertising program successfully.
Advertisability can be increased, by spending enough funds through latest
development of advertising. The policy of advertising depends upon the nature of
products and the cost of advertising depends upon the sale of the products.

7. Product Price:
The price of the product is also another important factor. The price must be
reasonable, compared to similar products in the market. It need not be lower
than other products in the market, but, the advertiser should not persuade the
consumer to pay a very high price.

UNIT 3
Message Development

*Advertising Appeals:-
Advertising appeals refers to the approach used to attract the attention of
customers or to influence their feelings towards a brand, product or service.
1. Emotional appeals – Emotional appeals relate to the consumers
social or physiological needs for purchasing a product or a service.
Many consumers’ purchase decisions are emotional and are made on
what they feel about a particular brand more than its features.
Examples – Jewelry ads, Ariel share the load ads

2. Sexual Appeals – Sex appeals relate to a person’s natural desire to

experience romance and appeal to others romantically. The goal of
this appeal is to make people feel like they will be more attractive,
more desirable, and more likely to get the person of their dreams if
they use a certain product or take certain actions. Examples –
Fragrance product ads, condom ads
3. Humor Appeals – Who doesn’t like something that’s funny? Humor
appeals make consumers laugh and create an emotional link with the
product. It is a proven appeal type for grabbing attention. When
consumers find something humorous, it has value because is causes
them to watch, laugh and, most importantly, remember. Examples –
Mentos ads, Center shock ads, Fevicol ads.

4. Musical Appeals – Like humor, music is a great way for brands to get
noticed and make an audience remember their products. In addition,
musical appeals can bring up positive memories whenever someone
hears a catchy tune in an ad, which goes a long way toward making
them feel good about the product being presented.

5. Fear Appeals – Fear appeals focus on the negative outcomes that can
happen because of an action or inaction. Another fear tactic involves
isolation. People will purchase a product to avoid isolation from
others because of bad hygiene for example in the case of toothpastes
and Deodorants. Examples – anti tobacco ads, toothpaste ads
focusing on germ fighting property.

6. Favorable Price appeals – Favorable price appeals make price as the

dominant point of the message. It can be used to announce a lower
price product, low prices every day. Examples – 5 Rs. Chhota coke,
Vodafone’s 10 ka chhota recharge, Mc Donalds “I’m Loving it” ads

7. Competitive advantage appeals – Competitive advantage appeals

make either a direct or indirect comparison to another brand and
usually claim superiority on one or more attributes. This is also
known as comparative advertising. Examples – Detergent ads
showing a particular product cleaning a cloth better than
competition product,
*Advertising Copy & Elements:-
Ad copy, or advertising copy, is a form of branded content that aims to convert a
potential lead for your business into a customer.

Elements of Advertising Copy:-

1. A Clear Objective
Ad copy should have a clear objective right from the start. The copywriter needs
to know what his or her copy is supposed to accomplish, otherwise he/she will
have no direction. Without a defined objective and clear direction, no piece of ad
copy will succeed in its intended purpose.

2. A Compelling Message
Depending on the form taken, this could mean a compelling title followed by
more detailed text that explains the information contained in the title. In cases
where no title is used, the first few lines of copy should contain the compelling
message.

3. A Compelling Offer
If the point of ad copy is to sell, effective copy will present the reader with a
compelling offer. It will present a product or service along with some sort of
motivation to cause the reader to make a positive decision. Without a compelling
offer, there is no point to creating ad copy.

4. Evidence of Tangible Benefits

No compelling offer is complete unless the consumer understands the tangible
benefits of taking advantage of said offer. Effective ad copy always includes some
evidence of tangible benefits. For example, “buying our product means saving
money without sacrificing quality.”

5. A Clearly Understood Tone

Effective ad copy is presented with a clearly understood tone. That tone is
determined by the offer being presented and the audience being targeted. Copy
aimed at business professionals would obviously be presented with a business-
like tone.

6. A Means of Responding
In order for customers to act on the compelling offer being made, a means of
response must be offered. Consumers must be directed to a website, a telephone
number, or an in-store location they can visit to follow through on their decision.
Without a means of response, any positive decision immediately becomes
irrelevant.

7. A Call to Action
Moving the customer from the compelling offer through the means of responding
should culminate in a direct action facilitated by what we refer to as a ‘call to
action’. The call to action is simply some sort of instruction telling the consumer
what you expect him or her to do. Use phrases like ‘call us today’, ‘visit our store’,
or ‘click here to purchase’.

8. At Least One Image

Finally, effective ad copy includes at least one image. If there is anything that sets
digital marketing apart from the print marketing of 100 years ago, it is the fact
that we now live in a highly visual culture. Ad copy that includes at least one
graphic outperforms similar copy without graphics. In fact, it is not even close.
Graphics seal the deal.
*Preparing ads for different media:-

Classification of Media
Media also broadly classified in two types
• Visual
• Non-visual
Visual – people can see the characters
Non visual – is audio i.e. people can listen.

Press as Fourth Pillar of Democracy

• Press or media evaluated as the fourth pillar of Indian democratic system which
was the prime force of struggle for independence
• Indian media and entertainment industry has travelled a long way and grown
into a leading media market of the world.
Its over 1.2 billion population of country, who is experiencing media revolution.
Press has emerged as the forth pillar of democracy, because it started as forum
and a way to connect. People through independence in this country with huge
population of 1.2 billion, have been experienced and impacted by power of
media, which is shaping values and visions of their lives

Newspapers
• The first printed newspaper was published in 1605.
• A newspaper carries all kinds of communication, related to a variety of topics
like politics, socialism, current affairs entertainment, finance, stocks.
Magazines
A Magazine is periodical and publishes variety of articles financed by adverting
sponsors to be purchased by reader. Magazine falls in two categories
• Consumer magazine
• Business magazine
These magazines are best forum for advertisers to connect to niche readership.
Magazines have become very specialized.

Booklets and Brochures

Booklets and brochures are a part of promotional literature of product.
There are two types of booklets and brochures:
1. Pre Buying Promotion
2. Post Buying Promotion
Booklets are important part for product display. They are needed for product
information, to convince customer for demo of product (how product will
perform). This information is carried by brochures.

1. Pre Buying Promotion

• It is carried in malls and stores. The promotional literature is distributed free to
all. It is in form of discount offers & other profitable schemes.
• This will help in creating a positive impact on decision-making of prospective
customer. Wherever, there is footfall of customers, pre- buying promotion
material, is available, where people are offered attractive brochures, to offer
discounts and incentives, so that buyers have information to take interest. It helps
in shaping their decision making for buying products.

2. Post Buying Promotion.

 These booklets and brochures are usually given with a product, for better
customer experience and easy usages, post purchasing. It gives details of

Benefit of using the product

• Usage direction
• Cleaning and storage instructions.
How the product has to be used, what is value of product for functionality,
everything is written in brochure. It gives set of instructions for performance and
demo of product. It is needed to enhance customer experience and update
customer for learning aspects, like how to cook. There will be a recipe to apply
some ointment or color to hairline various dies and all they are technical. So
instructions are there, people can match combinations in right proportions and
can mix to get the best results.
House Magazine, Periodical or Newsletter
• Most of the organizations are communicating with all stockholders &
stakeholders in order to be successful.
• Hence, the customer, shareholder, investors, solicitors and employees are
updated about the activities of organization from time to time.

House magazines and periodicals

Periodicals -are in house magazines. It connects lakhs of employees, who are
working in house. Sometimes, organizations, impact stakeholders, like vendors,
dealers, suppliers and even customers. These magazines, if are published weekly
or month and are updated on websites, give large information about organization
updates, which is useful for investors, lawyers and other people, who are working
and dealing with industry. This information mobilizes working procedure and is a
great platform, where people can read and get information. These are also good
sources, where people can advertize their products.
In house Magazine
The In-house magazine includes data about
1. Company’s achievements
2. Employee engagement activities
3. Information to offers.
A periodical or newsletter is designed to give internal news about company. In-
house – Business organization publishes its own magazine and in this,
achievements, transfers, orders, engagement activities of employees, and
instructions are given. The employees are kept 4 updated for what is happening
and about policies, issues and kind of work, company is next going to take. All
update is available.

Mailers Direct
• Direct mailers are small pamphlets, which are device for direct advertising and
marketing.
• Usually they arrive at doorsteps through the postal mails.
• Direct mails are relatively cheaper option of marketing
Direct mail – options are like flyers, pamphlets which are printed and through
newspapers, distributed to people. These are available online also, through emails
to reach people’s houses.
Components of Direct Mail Most of them include
1. Colorful advertisement
2. Discount and gift coupons
3. Preapproved credit card offers
4. Automobile, realtor and political promotion.
Direct mail options – flyers and full advertisements. It has gift vouchers, attached.
It has discounts, approved by particular banks and can be used by automobile
industry retailers.
Handbills and Flyers
Handbills or flyers are a form of communication which is printed on small paper.
• It is easy to carry, colorful, attractive, and legible to read.
• These are useful for restaurants, hotels, nightclubs, political campaigns,
concerts, rallies etc.
Handbills and flyers – printed in hard bond papers, thin paper depending upon
the need of people. Most of hotels carry flyers, where they will have schemes,
discounts and events, which they are going to organize. The discounts and sales
options are available. These kinds of information are given to customers, on how
to buy these offers. It is easy, and can be distributed to customers at his
convenience, according to desire of what is demand. If people have some handbill
in their hands, they can listen to customers.

Billboards or Hoardings
• Billboards or hoardings are huge advertisements that are put up at a height in
strategic locations to fetch more attention.
• They usually attract the targeted audience by their bold colors, attending
grabbing headlines, creativity, designs, and special effects.
Billboards – they are attraction for city centers, where huge billboards give color
and life to roads and venues. People meet at target markets, where footfall is
there, like it is crossings, railway stations or airports. These colorful, bold
advertisements grab attention of people, through their creativity and styles by
which they are posted.

Latest trends in billboards

• Later came a trend for incorporating neon signs, videos and graphic
• Electronic communication with 3D rubber or plastic balloon objects became
popular
• The billboards giving information are called as bulletins.
• They command best customer exposure.
Billboards – speak louder then words. Billboards have travelled a long journey of
getting exposure, in electronic form, where versions giving images options and
even graphics animated in beautiful way. Information & everything is on
billboards, in form of bulletins, which gives information to people at railways,
crossings and other popular areas where footfall is the highest. The exposure is
through images and impact, which is very beautiful, to grab the attention of
public.

Press Releases
• A press release is an important device of communication because it takes the
relevant communication directly to the press.
• Whenever government, organizations, and celebrities, etc. have newsworthy
announcement to make, they draft the press note which is then sent to the
members of the press
Press release – is an important form of advertisement, because people are
launching products, doing something good for company, CSR project or some new
update which needs a good press release, for informing about brand of company.
It is also always in communication with the public. The media, which gives lot of
acceptance. Content is accurately drafted and a direct communication to media,
which carries news in the same way as it is drafted.

Television
• Television appeals to the auditory and visual senses, and hence it is an
important communication device as it beholds the attention of audience.
People can visually attract customers by good audio, sound effects. It is a
revolution, which is holding customers from the times. It has been evolved and
today also, television is a part and parcel of people’s life for dinner tables and
other leisure times.
Films
• Films are considered a major mass medium because of their appeal and
influence on society.
• Films are considered by many to be an important art form.
• Films entertain educate, enlighten an inspire audience.
Film -is a leisure industry, which has artistic value to connect to people because it
gives real life stories, in an artificial way. People are using films as a part of
educating people, putting social agenda as a priority, advertising things and
influencing audiences to form a positive outlook on some industry or celebrity.

Radio
• Broadcasting is the distribution of sound to a number of recipients, listeners
that belong to large group. Radio remains one of the favorite means of electronic
communication.
Radio is a part of life because when people are moving or are driving their vehicle,
it has become a popular forum to connect with them. The content of local taste,
language with folk songs and local sentiments is connected to people on streets
and all corners. All advertisement and information, which is important, while are
driving. Radio is still a popular form of advertising and growing with people as a
big industry.

New Age media

• With the advent of internet, people are now enjoying the benefit of high
technology mass media with fast pace.
• Mobile phones, computers, and internet are often referred to as the new-age
media.
New age media has become digital, where it has evolved through a forum of
gadgets. The laptops, computers and mobiles have become a big way to connect
people.
Mobile Phones
• Most form of media content is introduced on mobile phone
• Today total values of media consumed on mobile flourished through internet
content.
• The mobile media content includes mobile music which includes ringing tone,
MP3files, music video, music streaming services etc.
Mobile has converged all mass media platforms, into handset where, everything
can be downloaded in form of music, books, literature, news & information.
Everything has been converged through this handset.

Computer
• With the invention of computer, the impossible has become possible. People
virtually get information about everything from pin to piano with the help of
computer.
• It has added speed and multimedia to the information which was earlier
available only in the print format.

The Information which has huge platform, form legal, technical & entertainment
for variety of people’s need of all industries, business, banking, financial & shares
. Everything is available through computers. Computers have become
indispensable part of people’s life, where nobody can perform business, without
them so it is a great platform where people can advertise their goods.

Internet
• This is most important devoice of the new age media. The discovery of internet
can be called the biggest invention in mass media.
• Internet has inspired interaction and connectivity through its social networking
medium.
Now internet has given birth to social media. Social media is social platforms,
connecting people, where family, friend’s information & life has become very
popular. People through friends, relatives and political celebrities have been
connected. They are following each other for sharing values, work and leisure
products and services.

Email
• Email or electronic mails have drastically reduced the time it took for drafting
and sending letters, or mails. Electronic mails have also facilitated lesser usage of
paper.

Email has saved paper industry, but it is very fast for connecting and advertising
products through people can broadcast to larger audiences at a lesser cost.

Websites
• The plethora of websites is dedicated to various people, companies, and
activities. The most significant utility of these websites is providing information
trough search engines, downloads and interaction through social networking
sites.

Websites – have become the index and face of company, where it offers gallery,
interaction, engagement activities, games, & entertainment. Everything is
available on websites. Official websites are very professional to connect with
audiences and are able to solve all problems of customers. They also have
chatting and call center facility, attached, where people can connect and talk to
get their work done, through help lines for other solutions required.
Podcasts
• Podcasts are medium of mass communication that includes short video or audio
files. They can be seen and heard on mobiles, computers and portable media
instruments. They are engaging devices of communication.

Podcast – are short, like one minute or thirty seconds video films or audio
sounds, which are created in form of animations and other forms of great activity
for engaging people. It is because 30 minutes, can grab attention of people
through creativity, good music and sound. People are accepting this form of
advertising in a big way.

E- Books
• E-books: There are number of websites where e- Books are hosted through
online libraries.
• The main benefit of having eBooks is that one needs not carry bulky books.
• They can be read eBook through mobiles & computer screens or other devices.
The font size can be adjusted to requirements.

E-books – have become a new way of connecting to people, where anything, like
animation, text, literature or even books which are used in schools and colleges
are available through online libraries. People can download and read it, from any
electronic device, through adjustable fonts. This is a convenient way of studying
and doing research.
Blogging
• Blogging: A blog is a space on the internet where, a single person or group of
people records their information, opinion, photos, videos, etc. It is an interesting
and free platform to talk about any topic. Interaction happens in the form of
comments on feedback.
 Blog – is a space on internet, where people write about anything. If a person is
fashion vista, he can give trends on fashion industry.

Internet T.V and Face book

• Internet TV: It is also known as online TV.
• Face book: It is the most popular social networking website. Advertisers also
like this forum for communicating about their products.
• Twitter: is micro blogging site
• YouTube: It is a websites which uploads content in video format.

UNIT 4
*Measuring advertising effectiveness:-
Advertising effectiveness is a method used to determine if a brand’s
marketing efforts are hitting the mark with its target audience and whether it’s
getting the best returns. It enables brands to measure the strengths, weaknesses,
and ROI of specific advertising campaigns, so the company can adjust accordingly.

*Evaluating Communication & sales effect:-

• Communication and Sales Effect Test:
Among several tests, the communication test and the sales effect test are more
relevant because success of advertising campaign depends on how far advertising
has influenced knowledge, attitudes and preference of the target customers. In
the same way, a sales volume is the ultimate aim of all marketing efforts
(including advertising). Advertising must increase sales. Therefore, evaluation of
advertising effectiveness, in most cases, consists of evaluating communication
test and sales effect test.
 • Methods for Communication Effect Test:
Communication effect test seeks to determine whether advertisement is capable
to communicate effectively.

Following methods are used:

1..Direct Rating Test:
In this method, consumers are asked to rate/rank alternative advertisements.
They are exposed to different ads and are requested to rate them. Consumers can
consider various criteria to rate the advertisement, like message contents,
message clarity, coordination, and overall impression.

3. Recall Test:
It measures the retention value of ad message. The consumers are asked to listen
and/or view the particular advertisement. They are then asked to recall the same.
The amount of contents and message they recall determines effectiveness of
advertisement.

4. Portfolio Test:
Here, the consumers are asked to view and/or listen to a portfolio of
advertisements. They are given as much time as they need. They are then asked
to recall all the ads and their contents. Their recall level indicates an
advertisement’s ability to affect consumers’ knowledge and arouse interest.

5. Laboratory Test:
The test is conducted in laboratory. Necessary equipment’s are used to measure
consumers’ physical reactions in terms of heartbeat, blood pressure, perspiration,
etc., to an ad.
Methods Sales Effect Test:
While the communication effect test measures communicating ability of the ad,
the sales affect test measures ad’s ability to influence sales. Ad must affect sales
positively.
Following two methods are used:
1. Creative Boutiques
The test involves correlating the past sales to the past advertising expenditures
using advance statistical techniques. The results can reveal how far advertisement
was effective in generating or increasing sales. The test can be used for different
products, territories and ad media, or in general.
2. Experimental Test:
Experiment is conducted to assess impact of advertisement on sales. Instead of
spending the same per cent of sales for advertisement in all territories or
products, a company spends different percentage of sales for advertisement.
Company can easily judge whether high-spending territories have resulted in
increasing sales and vice-versa.

Pre-testing:
Pre-testing, also known as copy testing is a form of customized research that
predicts in-market performance of an ad, before it airs, by analyzing audience
levels of attention, brand linkage, motivation, entertainment, and
communication, as well as breaking down the ad’s Flow of Attention and Flow of
Emotion.
Pre-testing thus is undertaken to:
ADVERTISEMENTS:
i. Establish whether the advert ‘says’ what it was intended to
ii. Assess the likelihood of getting a response from the reader
Some of the commonly used Pre-tests are as follows
Pre-tests for Print Media Advertisements:
Consumer Jury Test:
Few consumers form a group and act as jury to show their preferences for one or
two ads out of several being considered.
ADVERTISEMENTS:
The consensus emerges about the best ad copy at the end. But the best may be
the best amongst the worst ones. Every single ad is compared with all others.
Sources are recorded on cards. The number of comparisons one is required to
make with the help of the following formula:
n. (n-l) / 2
Where n= the number of ads to be rested.:
Mock Magazine Test:
Unlike the above method of keeping the advertisements in a folio, test ads are
introduced in a real magazine to an experimental group to read. The control
group is also exposed to the same magazine, but is without test ads.
Direct Questioning:
A consumer jury is formed and either the whole ad or its different elements are
tested by asking direct questions.
Perceptual Meaning Studies (PMS):
In this method the respondent is exposed to test the ads for a limited time period.
Tachistoscope is an instrument that may be used in this test.

Post-Testing:
Post-testing or Ad tracking, as otherwise known, can be customized or syndicated.
Tracking studies provide either periodic or continuous in-market research
monitoring a brand’s performance, including brand awareness, brand preference,
product usage and attitudes. Advertising tracking can be done by telephone
interviews or online interviews—with the two approaches producing
fundamentally different measures of consumer memories of advertising, recall
versus recognition.
The purpose of ad tracking is generally to provide a measure of the combined
effect of the media weight or spending level, the effectiveness of the media buy
or targeting, and the quality of the advertising executions or creative.
Different techniques of Post-Testing:
Among the various post testing techniques used most common ones are:
i. Penetration tests: Recognition/recall
ii. Progress tests or Sales Effects Tests.
1. Penetration Tests:
These tests are also known as Recognition/Readership Viewership tests. This
method is also adaptable to broadcast ads where commercial advertisements on
tape are played.

2. Progress Tests:
These tests assess the total sales effect from the ad and hence is also called sales
effect test. In other words, the various stages through which a customer passes
and finally purchases are because of the advertisement or not is analyzed.

UNIT 5
Advertising Agency-
Advertising agencies are responsible for initiating, managing, and
implementing paid marketing communications. In addition, some agencies have
diversified into other types of marketing communications, including public
relations, sales promotion, interactive media, and direct marketing.

Role of Advertising Agencies:-

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

Types of Advertising Agencies:-

1. Full service Agencies

• Large size agencies.
• Deals with all stages of advertisement.
• Different expert people for different departments.
• Starts work from gathering data and analyzing and ends on payment of bills
to the media people.

2. Interactive Agencies
• Modernized modes of communication are used.
• Uses online advertisements, sending personal messages on mobile phones,
etc.
• The ads produced are very interactive, having very new concepts, and very
innovative.

3. Creative Boutiques
• Very creative and innovative ads.
• No other function is performed other than creating actual ads.
• Small sized agencies with their own copywriters, directors, and creative
people.

4. Media Buying Agencies

• Buys place for advertise and sells it to the advertisers.
• Sells time in which advertisement will be placed.
• Schedules slots at different television channels and radio stations.
 • Finally supervises or checks whether the ad has been telecasted at opted
time and place or not.
5. In-House Agencies
• As good as the full service agencies.
• Big organization prefers these type of agencies which are in built and work
only for them.
• These agencies work as per the requirements of the organizations.

*Selection of Advertising agency:-

An advertising agency may be a full-service agency or part-service
agency. Each has a different outlook and advertising activities. The selection of
advertising agencies depends on whether one wants a full-service agency or a
part-time agency.
• Full service agency or part- time agency
The full-service agency is involved completely in the advertising functions. It has a
large number of expert employees. The organization Is typically useful for
performing advertising agencies. It looks upon customers as key clients. It
communicates with the prospective purchasers.
The part-time agency offers service on free of cost or project basis. These
agencies perform various outside activities and co-ordinate the activities of the
advertiser and media men. Clients have greater control over advertising
campaigns.

• Agency Team
This includes management specialists, market researchers, copywriters, media
experts, production managers and art directors. The attitude, thinking, experience
and personalities of the team members have positive effects on the selection
process.
 • Agency Stability
An agency, which has been long in existence generally, performs efficiently and
effectively. The greater the investment in the agency, the more vital the
contribution of the agency to the advertising activities. The personnel, finance,
management and credit are examined before selecting a suitable advertising
agency.

• Services
The services rendered by the agency are evaluated with a view to choosing the
best advertising agency. Cost accounting, general agreements, project estimates,
selling attitudes and other services performed by the advertising agencies are
considered to evaluate their efficiency and credibility in performing advertising
jobs. The greater the range of an agency’s services, the more fully it can serve the
clients’ needs. The agency can serve the clients by its potential capacity for
advertising, sales promotion, media placement, public relations, market research,
sales training and distribution channels.
• Creativity
Creativity is the main element in advertising. If the advertising agency is capable
of great creative efforts, it is selected for the purpose. Style, clarity, impact,
memorability and action- these are taken into account while evaluating creativity.
• Problem-solving approach
The agency which has a problem solving approach is considered to be superior
and useful. The importance of choosing the right agency cannot be ignored.
Caliber, compatibility, balanced services, responsiveness, talent an equitable
compensation-these are important factors in selecting an advertising agency.

B} Social, ethical & legal aspects of advertising in India

The Positive social effects of advertisements are:-

 Legal Aspects of Advertising

• Children’s advertising

2005 will be the Year of the Child. Sens. Hillary Clinton and Joseph Lieberman
want to fund millions of dollars for research that will determine if advertising is
re-wiring the brains of our children, spawning adolescent and adult automatons.
Advertising to children that hawks fast-food, toys, or contains content deemed
violent or inappropriate will come under legislative and regulatory attack as
legislators look to placate frustrated parents of overweight children with too
many toys who act out at the most inappropriate times. The government Nannies
of the 1970s may be back.

• Privacy

As technology continues to move forward, it attracts advertisers to new media,

particularly cellphones as broadband, MMS and SMS become acceptable
advertising platforms. This creates great consternation among privacy advocates
who continue to see such advances as a never-ending erosion of privacy rights.
Look out for Congressional hearings, proposed legislation and some litigation.

• Audience measurement

Nielsen is under attack as it rolls out its people meters. Congressional leaders,
most notably Ms. Clinton and Congressman Charles Rangel, have protested,
claiming people meters do not properly measure ethnic groups. Advertisers, in
turn, are demanding that commercials be rated. Nielsen, undaunted, continues to
roll out the meters. The industry seems to agree, however, that whatever
problems people meters present, they give better measurement than the current
system.

• Gift cards

Gift cards have become the gift of choice-and ease. But regulators remain
concerned about lost cards and security. Look for folks like New York’s Eliot
Spitzer to take another look at the gift card industry. Gift cards will be the legal
hot spot in promotions for 2005.
 • Return on Marketing Investment

The latest acronym-ROMI-has become the mantra of nearly every CEO and chief
financial officer-and the mission for their chief marketing officers and
procurement departments. The old joke-“I know I’m wasting half my marketing
budget, but I just don’t know which half”-no longer flies. Look for more incentive
compensation in agency agreements, increased audits and more dominance by
procurement departments in negotiating with ad agencies as advertisers try to
find ways to account for the millions they spend.

• Branded Entertainment

Will advertisers jump on the branded-entertainment bandwagon like they did on

the Internet before anyone is sure if it works? In a word: yes. But look for
continued outcries from consumerists who object to subliminal advertising and
erosion of the line between entertainment and advertising. The FTC and FCC have
petitions before them demanding more disclosure. But the flow of money will
keep TV networks clamoring for more branded entertainment and product
placement.

• Comparative advertising

Comparative advertising remains a popular form of battle in the marketplace. In

the last few years, lawsuits between competitors over allegations of false or
deceptive claims have increased as have challenges before the National
Advertising Division. Look for all of this to increase. The challenge will be for the
NAD to move advertisers from the courts and into the private arena of self-
regulation-away from the negative industry publicity these lawsuits create.

• Ethnic marketing

Ethnic marketing, particularly campaigns addressing the Hispanic market, are

increasing substantially as advertising messages follow the demographics with
buying power. While that’s great for marketers, it’s caught the attention of
regulators like the FTC. Their curiosity will lead to regulatory scrutiny so
marketers are well advised to be certain nothing is lost in the translation.
Social aspects of advertisement

Advertising is a social process. Advertising contributes to have both negative &

positive influence on society. It is criticized for encouraging materialism,
manipulating consumer to buy things they need, stereotyping, fraudulent & so on.
Advertising is a product of culture.
1. Informed Society: Through advertisements, the society is informed of various
products, uses, best bargains, safe handling of dangerous goods, effective use of
scarce resources petroleum and electricity, technological advances, etc. But for
advertising, the society would have remained a less informed one.
2. Health and Hygiene Awareness: The advertisements on health drinks, toiletry
products, Sanitary ware and their installation, etc., make the people become
aware of health and hygiene.
Also, advertisements on protected drinking water, effluent treatment, etc., help
people Better.
3. Rights of Consumers: The rights of consumers are made aware through
advertisements The spread of consumerism and awareness of consumer rights
are also due to advertisement
4. New Ideas: Consumers need to be informed of the development of latest
technology. Advertisements render an effective service here.
5. Advertisements Contributes to Creativity of People: The advertisements are
Creative manner beyond the imagination of the consumers.
6. Environmental Protection: Environmental protection is the need of the hour.
The b onslaught on nature by indiscriminate felling of trees, letting off untreated
industrial effluence into the open, growing urbanization and consequent
burgeoning urban slums, etc.

Ethical aspects of advertisement-

• Be truthful: It should reveal the true and significant facts.
• Be substantiated: The claims should be should substantiated with
proofs.
• Be non-comparative: It should not compare the products of two
different manufacturers.
• Give real and true guarantees.
• Avoid false claims.
• Adhere to taste and decency.